FSA granted additional powers to punish white collar crime

A raft of new measures designed to give regulators more power in tackling city crime are to be unveiled in the Queen's Speech this week.

The FT reports Chancellor Alistair Darling will propose strengthening the FSA's power to punish individuals and banks which break the rules, including imposing suspensions on certain forms of business, as part of a broader financial services bill to be introduced on Thursday. It will also be granted a legal right to nullify bankers' employment contracts if the terms are thought to encourage excessive risk taking or include multi-year guarantees. Other proposed reforms include extending the time the regulator can instigate cases against individuals from two years to four, as well as co...