Carol Sergeant, Managing Director responsible for Enforcement at the FSA said: "Our proposals are designed to plug a potential hole. Insurance to pay FSA fines not only reduces the impact of those fines but also lessens the incentive for firms and individuals to meet appropriate standards. We cannot allow such developments to go ahead unchecked."
The new rules would apply from 1 January 2004. The consultation ends on 24 September 2003. Consultation paper 191 "Miscellaneous Amendments to the Handbook" can be accessed at www.fsa.gov.uk/pubs/cp.