The Guardian reports that City regulator the Financial Services Authority (FSA) will go after the worst offenders and will be more lenient with those firms who help uncover wrongdoing and those with a good track record.
The FSA does have a resource problem as it only has 170 staff in its enforcement team. The agency will, however, do all that it can to get the most from its personnel by focussing on those areas where they can make more of a difference. Chasing down every case will clearly be impossible, so the FSA intends to adopt a 'risk-based' approach to its responsibilities.
Andrew Procter, director of enforcement at the FSA, has also confirmed that firms who cooperate with the regulator can expect lower penalties to be imposed on them. He said: 'We need to incentivise firms to come and tell us what is going on. It's a reward for cooperation'.