FSA Investigations

Armed with the powers given to it by the Financial Services and Markets Act 2000 ("FSMA"), the Financial Services Authority (the "FSA") is tasked with investigating misconduct in the financial markets that it regulates.  It has the power to bring criminal proceedings in appropriate cases, for instance insider dealing, and to take regulatory enforcement proceedings, for instance in respect of misconduct falling within its market abuse regime.

The FSA’s powers are not limited to those individuals or institutions that it regulates, but extend to all participants in the market.  It has the power to require attendance at interview and the production of documentation; our long-standing experience in investigations conducted by the Serious Fraud Office means that we are well-versed in dealing with the exercise of these equivalent compulsory powers by the FSA.  We are also used to dealing with what will often be complex subject-matter requiring technical and forensic expertise.

BCL has acted for individuals and institutions facing investigation by the FSA in a wide range of matters including the following:

• Insider dealing and market abuse: Our broad business crime expertise means that we are ideally placed to represent those facing concurrent criminal and market abuse investigations into conduct that could either be the subject of criminal prosecution or dealt with through the FSA’s civil market abuse regime.
• Misleading the market: We represented one of the individuals in the first prosecution brought by the FSA under section 397 of FSMA for issuing misleading statements to the market.
• Mis-selling of financial products.
• Whether individuals satisfy the "fit and proper" test and dealing with refusals by the FSA to grant Approved Person status.

We recognise that where an individual faces an investigation by the FSA, his employer may also be the subject of a concurrent investigation by the FSA in respect of systems and controls or broader compliance failings.  We are experienced in working alongside regulated institutions and their advisers, particularly where a common interest lies in seeking to persuade the FSA not to take action or to minimise the regulatory consequences of the misconduct.