The FSA has declared that regulated firms will not be able to pay its fines through the use of insurance policies.
The new rules proposed by the FSA today would apply from 1 January 2004.
To view more details on the proposals in Consultation paper CP191: "Miscellaneous Amendments to the Handbook", visit Insurance Times Compliance Site .
The FSA said the changes will ensure anyone who is fined must pay the fine rather than claim for it under insurance.
Carol Sergeant, managing director 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."
