Regulators have imposed over £1bn in fines for fraud on businesses and individuals since 2007, with financial services companies accounting for half of all penalties, according to research by Ernst & Young.

E&Y's study collated data from more than 700 cases handled by the Financial Services Authority (FSA), the Serious Fraud Office (SFO) and the Office of Fair Trading (OFT).

Its analysis shows that financial services companies paid more than £560m of fines over the period, accounting for almost seven in 10 of all fines. Instances of financial fraud were most common in the mortgage industry and specialised finance sector.

Almost half the total number of fines for fraud by businesses were relatively small, at between £10,000 and £100,000. However, a smaller number of big cases brought the total for UK companies overall to £976m since 2007. Individuals charged with fraud have paid a total of £46m in penalties over the period.

The average fine for a fraud in the financial services industry was around £2m, E&Y found, compared with the consumer staples industry which accounted for the largest average fine at £56m, but only 2% of the total number of cases.

But it also showed that regulators had taken action against companies and individuals in a wide range of industries.

E&Y partner John Smart said: 'These results should serve as a stark warning to all businesses in the UK to get their houses in order. Board members will need to take a good look at what they are doing and undertake a full risk and systems review in order to identify any blind spots and identify who the fraudsters are.'

This week has seen the closure of the FSA with its responsibilities split between the newly created Financial Conduct Authority and Prudential Regulation Authority.