John Veale of Kangs Solicitors summarises the legislation and regulations affecting the Financial Conduct Authority (‘the FCA’) and the various methods of enforcement available.

The Financial Services Act 2012 | Sections 89- 91

The FCA may use this Act to bring criminal prosecutions in relation to:

  • Misleading statements.
  • Misleading impressions.
  • Misleading statements in relation benchmarks.

The Criminal Justice Act 1993 Part V

The FCA may use this Act to bring criminal prosecutions in relation to:

  • Insider dealing.

The Financial Services and Markets Act 2000

The FCA may use this Act to bring criminal prosecutions in relation to:

  • Promotions in relation to regulated activity that are not authorised
  • Contravention of the general prohibition on conducting a regulated activity when not authorised or without holding an exemption
  • Claims to be authorised/holding an exemption in relation to regulated activity or holding oneself out as such, where not authorised

Market Abuse Regulation

The FCA may use this Regulation to bring civil actions in relation to:

  • Provision of insider information.
  • Insider dealing and unlawful information.
  • Market manipulation.

The FCA’s Wide Enforcement Powers

Fines

The Court can impose unlimited fines in respect of any criminal convictions and also unlimited fines in regard to any breaches of the Regulations determined by civil action.

Imprisonment

On conviction on indictment, the Court can impose a prison sentence with maximums of between 2 and 7 years.

General Enforcement Powers Under the Financial Services and Markets Act 2000

The FCA may:

  • withdraw authorisation for improperly conducting regulated business.
  • stop an individual from being involved in financial services or carrying out certain regulated activities.
  • suspend a firm for a maximum of twelve months from carrying out specific regulated activities.
  • suspend an individual for a maximum of two years from undertaking certain controlled functions.
  • seek injunctions.
  • freeze assets.
  • obtain restitution notices

Enforcement Notices

The FCA may issue:

  • Final notices – when they take action.
  • Decision notices – when they have decided to take action.
  • Warning notices – when they propose to take action.

The FCA may publish such notices on-line in order to inform the public and, in turn, to act as a deterrent against market abuse and insider dealer.

They may also publish information in regard to any enforcement action that they take

How Can We Help? | Kangs Financial Fraud team

Kangs provides an expert  team of solicitors experienced in FCA and financial investigations of every nature from the outset through to trial.

Our team is led by Hamraj Kang who recognised as a leader in this field and is ranked as a ‘star individual’ in the legal directory Chambers & Partners.

If you need help in relation to any FCA investigation or prosecution, please do not hesitate to contact our team through any of the following:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171020 7936 6396 | 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396

Frances Murray
fmurray@kangssolicitors.co.uk
020 7936 6396 | 07989 521210