The FCA has published a speech given by Mark Steward, Director of Enforcement and Market Oversight, FCA. The speech is entitled Practical implications of US law on EU practice.
In his speech Mr Steward:
- makes certain observations about financial penalties noting in particular that most fines imposed by the regulator are by agreement as part of what is called ‘early settlement’;
- discusses the senior manager’s regime and what he thinks is the different dynamic it creates. In particular Mr Steward states that: (i) the FCA does not expect senior managers to agree so readily to pay high fines to resolve cases, the regulator expects that there will be more contest and more litigation; (ii) firms may well be reluctant to spend high sums to resolve investigations where those resolutions do not also resolve cases against senior managers who may also be in the regulator’s cross-hairs; and (iii) there are latent tensions in the way in which firms may self-report misconduct or cooperate with the FCA where senior managers in the firm may also be or become subjects of investigation for the same matters; and
- covers some of the ways the FCA is proposing to change the dispute process for those who agree the facts but wish to dispute the proposed sanction.
View Practical implications of US law on EU practice, 19 January 2017