FSA Investigations

Who are the FSA?

The Financial Services Authority (FSA) regulates the financial services industry in the UK including most financial services markets, exchanges and firms. They have powers to make rules, investigate and enforce the regulations when the required standards are not met. The powers enable them to take action against regulated and non-regulated firms and individuals. The FSA will soon be replaced by the Financial Conduct Authority (FCA). Click here for a recent JMW article on the FSA / FCA.

If you are subject to an FSA investigation contact us now on 0800 652 5559 we will help to ensure the impact on your business is minimised.

What do they do?

The FSA publishes a single Handbook of rules and guidance for all authorised firms carrying out business in the UK. The Financial Services and Markets Act 2000 (FSMA) sets out the four statutory objectives for the FSA:

• market confidence – maintaining confidence in the UK financial system;
• financial stability - contributing to the protection and enhancement of stability of the UK financial system
• consumer protection - securing the appropriate degree of protection for consumers; and
• the reduction of financial crime - reducing the extent to which it is possible for a regulated business to be used for a purpose connected with financial crime.

These objectives are supported by a set of principles of good regulation to which the FSA must have regard to when discharging their functions.

Enforcement

The FSMA allows the FSA to take action including:-

• withdrawing a firm's authorisation;
• disciplining authorised firms and people approved by the FSA to work in those firms;
• imposing penalties for market abuse;
• applying to the Court for injunction and restitution orders; and
• prosecuting various offences.

FSMA also provides powers to take action under the insider dealing provisions of the Criminal Justice Act 1993 and the Money Laundering Regulations 2007. The same statute provides the power to interview people and require them to hand over documents. It also sets out the circumstances in which the FSA is allowed to use those powers. The FSA investigate people who are carrying on regulated activities – such as accepting deposits or giving investment advice – without authorisation. This is described by FSMA as a breach of the general prohibition. Those breaking the law risk imprisonment and other sanctions.

What can JMW offer?

JMW understands how the FSA works through its Regulatory Decisions Committee and can guide firms or individuals through the enforcement process in order to achieve the best outcome. Working with bespoke teams from different departments, JMW can tailor a solution for individuals and firms facing civil action, injunctions, restitution, insolvency and criminal proceedings brought by the FSA.

JMW can advise and represent in cases before the Magistrates Court and Crown Court where penalties range from a fine to seven years imprisonment.

The offences cover a range of misconduct including:

• falsely claiming to be FSA authorised;
• carrying on a regulated activity without authorisation;
• making misleading statements to induce investments; and
• failing to co-operate with FSA investigations.

Other authorities also have the power to prosecute these offences, including the Crown Prosecution Service, Department for Business, Innovation and Skills, and the Serious Fraud Office. We regularly represent clients in cases brought by these authorities and we work with other experts to ensure that clients receive the best possible representation in what can be complex enquiries.

If you wish to discuss our service in more detail without obligation, please contact Evan Wright.

Also see our information on:-

Anti-money laundering solutions

Civil Recovery Orders

Restraint and Freezing Orders

Company Guide: The Bribery Act