Regulatory lawyers are set to benefit from a dramatic shift in policy from the Financial Services Authority (FSA), which has unveiled plans to triple the level of fines for serious market abuse cases.

The FSA this week confirmed that it was introducing the new policy on financial penalties from 6 March, which will include a minimum £100,000 fine for serious regulatory breaches.

The policy will see the regulator levy penalties on individuals of up to 40% of salary and benefits or up to 20% of the revenues generated by the business areas linked to the wrongdoing. The move was first floated last summer and has been pushed through despite opposition from the City.

FSA director of enforcement and financial crime Margaret Cole (pictured) commented: "We have decided to implement these proposals as we believe enforcement penalties are a powerful tool to help change behaviour in the industry."

The City watchdog estimates that fines could triple under the new regime. The shift in policy is the latest evidence of a tougher approach from the body since it received criticism for failing to effectively police banks in the run-up to the credit crunch.

The stance will further bolster expectations among City law firms that financial regulation will see mounting demand as global regulators take a more hands-on approach.

Barlow Lyde & Gilbert financial services regulatory partner Ian Mason told Legal Week: "The perception has been that some firms pay the fine and move on, but now because of the significant increase in the fine there will be a lot more haggling and negotiation with firms potentially deciding to take cases to the tribunal stage, which will create more work for lawyers."

The new framework will not affect ongoing cases, including the criminal case against the two former law firm partners accused of insider trading last year.

The hearing, slated for this April, will see former Dorsey & Whitney corporate partner Andrew Rimmington and former McDermott Will & Emery corporate partner Michael McFall standing trial for insider trading along with Peter King, the former financial director of Neutec Pharma.

Click here to read Freshfields on the future of the FSA.