FSA's £59.5m fine on Barclays could go to taxpayers

Friday 29th June 2012

The mammoth fine slapped by the FSA on Barclays over its attempts to manipulate interest rates could be paid into the Treasury coffers.

This week’s £59.5m fine on Barclays was the largest the FSA has ever imposed.
 
Until now, fines collected by the FSA have been retained and go towards reducing the annual costs levied on financial firms.

But Chancellor George Osborne said yesterday that it should be taxpayers, not the financial industry, that benefits.   

He told the Commons: “Under the previous Government’s regime, fines payed to the FSA are used to reduce the annual levy other financial institutions are asked to pay. I am far from convinced that in all cases this is the best use of the money.

“We are considering amendments to the Financial Services Bill that will ensure fines of this nature go to help the taxpaying public, not the financial industry.”

“I do not think it is appropriate other financial institutions, the banks, benefit from a lower FSA levy.”

Osborne said he had asked Treasury officials to look at whether the move could be specifically applied to the Barclays fine.