770.This paragraph provides that in determining its policy with regard to the level of penalties to impose under powers in the Act, the Authority may take no account of its expenses or anticipated expenses.  It clarifies that there is to be no link or incentive to fund the Authority by levying penalties on the regulated community.
771.Sub-paragraph (2) requires the Authority to operate a scheme to ensure that penalties paid to the Authority are to be applied for the benefit of authorised persons.  The Authority is required to consult on these arrangements.
Schedule 1: the Financial Services Authority Part III: Fees Paragraph 16: Penalties