We advise clients under investigation for insider dealing, market abuse and market manipulation, mis-selling financial products, conducting unauthorised business, breaches of AML provisions, breaches of internal compliance policies, contravention of the FCA and PRA’s principles and rules, and other regulatory misconduct. Our team is also well-placed to pursue a co-operative approach with the regulators where appropriate with a view to keeping matters outside of enforcement.
BCL has a long track record of advising and representing those in the financial services industry under investigation, whether internally or as a result of enforcement activity by external regulators. Our experience includes defending boiler room frauds and insider dealing allegations, AML compliance enquiries, defending market abuse allegations before the Regulatory Decisions Committee (RDC), representing individuals suspected of Libor-rigging, and advising high-profile individuals subject to regulatory action regarding their suitability to perform controlled functions.
Our expertise
The services provided by our experts include:
- Internal investigations on behalf of regulated entities;
- Independent legal advice / acting as Independent Legal Advisor (ILA) to individuals subject to internal investigation;
- Advising on the FCA’s compulsory information-gathering and interview powers under Part XI of the Financial Services and Markets Act 2000 (FSMA) and on the PRA’s equivalent powers;
- Crisis handling, including dawn raids, searches and arrests;
- Representing individuals at interview, including PACE (under caution) interviews and compelled interviews under FSMA;
- Advising and representing individuals and companies subject to formal regulatory investigations and prosecutions, whether in the UK and / or subject to investigation by overseas regulators (e.g. the Securities and Exchange Commission (SEC) and European regulators), and advising on the FCA’s powers to co-operate with overseas regulators through Mutual Legal Assistance (MLA);
- Representing professional service firms and individuals under investigation by / subject to enforcement process at the instigation of the FRC;
- Preparing regulatory compliance policies and procedures, particularly with regard to sanctions, AML, Counter Terrorist Financing (CTF) and anti-bribery and corruption (ABC);
- Providing advice on the regulation of crypto assets (e.g exchange and security tokens), as well as to crypto asset firms (e.g. exchange providers and crypto wallet providers) on their regulatory obligations;
- Advising on notification to regulators and law enforcement authorities (self-reporting), including to the FCA under Principle 11 and to the National Crime Agency (NCA) in respect of Suspicious Activity Reports (SARs);
- Advising on compliance with the Senior Managers and Certification Regime (SM&CR);
- Regulatory proceedings, warning and decision notices, including hearings before the RDC and Upper Tribunal; and
- Advising regulated individuals on their obligations in the event of criminal investigations for non-financial services related misconduct.
Our experience
Our instructions in the field of FS investigations and enforcement include:
- Advising an individual in relation to the largest and most complex investigation into insider dealing ever conducted by the FCA – the high-profile Operation Tabernula case – and obtaining the first suspended sentence for this offence in the jurisdiction;
- Advising regarding an FCA investigation into a UHNW individual in connection with suspected market abuse as a result of share trading conducted during the early days of the pandemic;
- Successfully representing numerous individuals in relation to insider dealing investigations by the FCA where no further action has been taken against our clients, including following interviews under caution;
- Advising a corporate and its subsidiary business in respect of UK and US regulatory enquiries led by the FCA in its own right and on behalf of the SEC;
- Advising a company regarding an FCA investigation into forex signals and financial promotions, with an allegation that the business had been conducting regulated activities when not authorised or exempt;
- Advising individuals in relation to compelled witness interviews in the context of large money laundering and corruption investigations by the FCA into well-known financial institutions;
- Advising a hedge fund regarding an insider dealing investigation being undertaken by the FCA;
- Advising an individual regarding regulatory proceedings brought against them relating to their fitness and propriety to act as an approved person
- Advising a senior bank executive in connection with a PRA investigation into suspected Principle breaches and fitness and propriety considerations; and
- Advising individuals regarding the SFO and FCA’s Libor and forex (FX) market manipulation investigations, including in relation to compelled interviews and in proceedings in front of the RDC.
