FCA enforcement essentials—preventing a referral to FCA enforcement
Produced in partnership with Vaibhav Adlakha of Reed Smith and Tim Dolan of Reed Smith
FCA enforcement essentials—preventing a referral to FCA enforcement

The following Financial Services practice note Produced in partnership with Vaibhav Adlakha of Reed Smith and Tim Dolan of Reed Smith provides comprehensive and up to date legal information covering:

  • FCA enforcement essentials—preventing a referral to FCA enforcement
  • How is a breach identified?
  • Identified by the firm
  • Identified by third parties
  • Identified by the regulator
  • Risks involved in not notifying the FCA
  • Action taken to avoid a referral to enforcement
  • Issues relating to a breach by the firm
  • Issues relating to a breach by individuals employed by the firm
  • Practical considerations when a firm discovers a breach
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Lexis®PSL Financial Services FCA/PRA Enforcement Database: This incorporates detailed information on all substantive FCA and PRA Final Notices and, where available, Decision Notices from 2014 to 2020. The Database, available here, may be searched and filtered by rule breach, keyword, sector, date, seriousness, aggravating and mitigating factors, financial penalty, and other actions such as appeals.

In the UK, the regulation of the financial services sector is conducted by two separate regulators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), both of which have enforcement powers. Although this Practice Note focuses on the issues involved in a potential FCA enforcement action, the same considerations will apply to PRA investigations.

The FCA relies on what it describes as a ‘judgement-based’ as well as a ‘risk-based’ regulatory approach, looking at a firm's role within the market at large with the aim of ensuring that ‘investor interests are front and centre

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