The Financial Services Authority’s chief enforcer is to be given greater power to fine individuals and companies as she moves to head an enhanced enforcement division at the City watchdog.

The FSA wants to treble some fines for mis-selling and market abusers after it merges its enforcement and financial crime divisions on 1 October. Director of enforcement Margaret Cole, a former partner at US firm White & Case, will head the new division.

Under FSA proposals, employees in market abuse cases would face a minimum fine of £100,000; employees in non-market abuse cases would face fines of up to 40% of their salary and benefits; and companies would face fines of up to 20% of the income of the business area linked to the breach. The FSA said the fines would take into account a ‘desired deterrent effect’.

Cole said: ‘By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others on what they can expect to pay for flouting our rules.’

As revealed by the Gazette earlier this year, Cole has hired extra investigators, including City lawyers, to bolster her division (see [2009] Gazette, 9 April, 4).

The FSA recently secured a jail term for solicitor Christopher McQuoid, former general counsel at TTP Communications, who was found guilty of insider dealing. It is currently pursuing alleged insider dealing prosecutions against two other solicitors.

A consultation on the level of fines closes on 21 October.