United Kingdom

Topic: Enforcement

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FCA review of firms’ whistleblowing arrangements

The FCA has finalised its review of how firms have implemented its whistleblowing rules, which became effective from September 2016 (the Rules). A copy of the review can be found here. The review, which focused on a range of retail and wholesale banks, found that the Rules had helped to ensure that firms implemented whistleblowing arrangements … Continue Reading

UK High Court rules on sanctions exclusion clause and comments on the interpretation of the EU Blocking Regulation

In a judgment recently handed down by the High Court (available here), it was held that the defendant  insurance companies were liable to pay an insurance claim under a marine insurance contract relating to the theft of certain cargo shipments when in Iran, provided such payment be made before the re-imposition of applicable US secondary … Continue Reading

Bank forced to turn over SARs in data protection dispute

In a judgment recently published by the High Court (available here), a claimant has been granted the right to inspect suspicious activity reports (SARs) filed by his bank. The Court made the order in interlocutory proceedings brought in the course of an individual’s claim against his bank for breach of contract, breach of the Data … Continue Reading

Banking and finance disputes review

Norton Rose Fulbright has published the latest edition of the Banking and finance disputes review, the journal which analyses developments in dispute resolution relevant to financial institutions. Innovation in financial technology is set to transform the delivery of financial services. In this edition, we consider disputes that may arise out of new technology and the … Continue Reading

SFO confirms that it will not appeal decision on privilege in internal investigations

The SFO has this week confirmed that it will not appeal the Court of Appeal’s recent decision addressing, in particular, fundamental issues as to the ambit of litigation privilege in investigations (ENRC v SFO [2018] EWCA Civ 2006). A more detailed summary of the case and its practical implications is available here. The decision of the … Continue Reading

FCA bans Christian Bittar in relation to Euribor submission requests without imposing an additional fine

The FCA has prohibited Christian Bittar, a former derivatives trader of products referenced to Euribor at a global bank, from all controlled functions for seeking to manipulate Euribor. The FCA refrained from imposing an additional financial penalty on the basis that the Crown Court had sentenced Mr Bittar to 5 years and 4 months in prison … Continue Reading

Extra-territorial effect of Serious Fraud Office document requests

Introduction The judgment in R (on the application of KBR Inc) v The Director of the Serious Fraud Office [2018] EWHC 2012 (Admin) came out on Thursday, 6 September 2018. In summary, the Administrative Court held that section 2(3) of the Criminal Justice Act 1987 (CJA), which (broadly) gives the SFO power to require a … Continue Reading

Decision by the FCA to ban and fine former Chief Executive at TailorMade Limited is upheld

This decision makes it clear that personal culpability cannot be avoided through delegation or collective decision-making structures, such as the board, even where other directors have been allocated particular responsibility for specific areas including compliance.  Where responsibility is delegated, directors are not absolved from acquiring a sufficient understanding of the business to enable them to … Continue Reading

Four former directors of online consumer credit broker banned by FCA for misleading customers

On 25 July 2018, the FCA published final notices that it has issued to four former directors and shareholders of Secure My Money Limited (now dissolved), prohibiting them from performing any function relating to any regulated activity: Mark Kennedy. David Mullins. Edward Booth. Christopher Brotherton. The final notices state that that between November 2013 and … Continue Reading

FCA Enforcement Activity: The 2017/18 Annual Performance Report

The FCA has published its Enforcement annual performance report 2017/18, which provides an overview of the FCA’s enforcement activities over the last year. In summary, the FCA is opening more cases, but the average financial penalty has fallen significantly by around 65% and, although the average cost of civil and regulatory cases is down, the average … Continue Reading

MiFID suitability requirements peer review: ESMA publishes follow-up report

On 24 July 2018, ESMA published a follow-up report to its peer review on suitability requirements under MiFID. The report looks at the actions taken by National Competent Authorities (NCAs) since April 2016, when ESMA published its previous peer review report. Follow-up work was commenced in December 2017. The key points from the follow-up report … Continue Reading

Tribunal upholds prohibition order for junior trader in connection with LIBOR manipulation

The Upper Tribunal has upheld the FCA’s decision to prohibit Arif Hussein, a former trader, on the basis that he failed to be candid and truthful during the enforcement process. In the decision, the Tribunal was critical of the FCA’s focus on the relatively junior trader, who was put under investigation in relation to a … Continue Reading

FCA proposes changes to complaint handling rules to help victims of authorised push payment fraud

On 26 June 2018, the FCA published Consultation Paper 18/16: Authorised push payment fraud – extending the jurisdiction of the Financial Ombudsman Service (CP18/16). In CP18/16 the FCA sets out proposed changes to its complaints handling rules to reduce the harm experienced by victims of Authorised Push Payment (APP) fraud. In particular, the FCA proposes … Continue Reading

Tribunal strikes out application by third party in relation to Supervisory Notice

The Tribunal has held that third party rights do not arise in the context of Supervisory Notices, nor do the relevant provisions allow third parties to refer Supervisory Notices to the Tribunal, even where they are identified. Although Parliament has specifically provided for this right in the context of Warning and Decision Notices, it has … Continue Reading

FCA speech on the evolving approach of FCA investigations

The FCA has published a speech given by Jamie Symington, Director of Investigations at the FCA. The speech is entitled Our investigations – the evolving approach. In his speech Mr Symington discusses how the FCA uses its powers of investigation, and how this is evolving to fit with the regulator’s recently published Mission. Mr Symington … Continue Reading

FCA investigations under SM&CR

The FCA has published its response to a request under the Freedom of Information Act 2000 relating to it carrying out investigations under the senior managers and certification regime (SM&CR). The FCA noted that: in the 11 months since the introduction of SM&CR, the FCA has opened investigations into 2 individuals who are senior managers; … Continue Reading

FCA issues Policy Statement on financial crime reporting

  Last December the FCA consulted on a proposal to introduce a financial crime return (REP-CRIM). The proposal was set out in chapter 6 of Consultation Paper 15/42: Quarterly Consultation Paper No.11. The FCA has now published Policy Statement 16/19: Financial Crime Reporting: feedback on Chapter 6 of CP15/42 and final rules (PS16/19). In PS16/19 … Continue Reading

Office of Financial Sanctions Implementation created to help UK businesses comply with financial sanctions

The UK Government has announced that it has created within HM Treasury the Office of Financial Sanctions Implementation (OFSI). The UK Government states that the OFSI will provide a high quality service to the private sector, working closely with law enforcement to help ensure that financial sanctions are properly understood, implemented and enforced. View Office … Continue Reading

SFO closes Forex investigation

The Serious Fraud Office (SFO) has announced that it has closed its investigation into allegations of fraudulent conduct in the foreign exchange market. The SFO has concluded, based on the information and material it has obtained, that there is insufficient evidence for a realistic prospect of conviction.  Whilst there were reasonable grounds to suspect the … Continue Reading

PRA’s approach to enforcement: statutory statements of policy and procedure (updated)

The PRA’s approach to enforcement: statutory statements of policy and procedure is a PRA Statement of Policy that was first published on 1 April 2013. It includes statutory statements of policy and procedure in relation to: statutory notices and decision making; financial penalties; suspensions and restrictions; settlement; publicity of regulatory action; and conduct of interviews … Continue Reading

Upper Tribunal determines that Mr Bittar is identified in bank’s Decision Notice

Christian Bittar was a trader holding the position of Manager of a bank’s Money Markets Derivatives (MMD) desk in London during the relevant period. On 23 April 2015, the FCA published a Final Notice imposing a penalty on the bank for misconduct, including the attempted manipulation of the LIBOR and EURIBOR benchmarks (the Final Notice). … Continue Reading

Banking and finance disputes review

Norton Rose Fulbright has today published the latest edition of the Banking and finance disputes review, the journal which analyses developments in dispute resolution relevant to financial institutions. This edition highlights some risks and benefits of different jurisdictions as centres for dispute resolution by banks and financial institutions. Of particular note is The financial list: … Continue Reading