Daily Mail: City watchdog flexes its muscles: “McCarthy heralded Shell's record £17m fine, saying it was four times greater than any previous penalty. He said he wanted to change the behaviour of firms and individuals, suggesting that fines could continue to grow.” (ShellNews.net)

Posted 22 September 2004,

THE boss of City regulator the Financial Services Authority* declared that he intends to make an example of those who break the rules.

But his remarks came as the watchdog suffered a setback in its case for alleged market abuse against Paul 'The Plumber' Davidson, which was indefinitely postponed.

FSA chairman Callum McCarthy argued that the FSA should speed up enforcement to send the clearest possible message to would-be offenders.

'When they are found to have substantially misbehaved, then it should be possible to make an example of them,' McCarthy told The Financial Regulator magazine.

Davidson's appeal against a £750,000 fine was due to reconvene yesterday but was called off following a last-minute legal aid request.

His case in the Financial Services and Markets Tribunal is one of three being pursued by the FSA - the other two relate to Legal & General and ousted Shell chairman Sir Philip Watts. McCarthy heralded Shell's record £17m fine, saying it was four times greater than any previous penalty.

He said he wanted to change the behaviour of firms and individuals, suggesting that fines could continue to grow. His comments come a fortnight after a similar speech made by FSA chief executive John Tiner.

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