Firms facing FSA fines for "woolier principles" says law firm

Firms are now being punished by the FSA without the regulator pointing to a specific breach.

UK law firm Pinsent Masons head of Corporate Governance, Martin Webster spoke after the FSA’s £3.34m fining of Mitsui Sumitomo Insurance (Europe) for “serious corporate governance failings” this morning. Former Mitsui Sumitomo Insurance (Europe) executive chairman Yohichi Kumagai was also banned and fined £119,303.

“It is clear that the FSA’s focus on corporate governance means that it is no longer a business “nice to have”.  Perceived failings can cost a business millions in fines and will also see individual directors suffer,”

 “Penalties are being imposed without the need for the FSA to point to a specific breach. We are seeing the regulator increasingly acting on the basis of much woollier principles which leave less room for argument,” continued Webster.