Q&As

Under what provisions and on what basis can the Financial Conduct Authority prosecute offences under the Fraud Act 2006?

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Produced in partnership with Jamas Hodivala KC of Matrix Chambers
Published on: 04 August 2021
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The financial conduct authority (fca) was established by section 6 of the Financial Services Act 2012 (FSA 2012), which amended section 1 of the Financial Services and Markets Act 2000 (FSMA 2000) and replaced the Financial Services authority as a regulator.

FSMA 2000, s 401(2) provides that offences under FSMA 2000, or subordinate legislation made under FSMA 2000, or an offence under FSA 2012, Pt 7 (offences relating to financial services) may only be instituted by the ‘appropriate regulator’ or the Secretary of State, or otherwise with the consent of the Director of Public Prosecutions.

FSMA 2000, s 401(3B) provides that the FCA is the ‘appropriate regulator’ in relation to prosecuting the following offences under that Act (the Prudential Regulation Authority and the Bank of England are the appropriate regulators in relation to other offences under FSMA 2000):

  1. FSMA 2000, s 23(1)—contravention of the general prohibition on carrying out, or purporting to carry out, regulated activities

Jamas Hodivala
Jamas Hodivala, KC

Jamas' has advised and represented a large number of corporates, based in both the UK and US, which are under investigation by the police, HMRC, Serious Fraud Office, Health & Safety Executive and the Environment Agency. He is often instructed at an early stage of an investigation to advise on the legality of investigatory powers, for example, he acted for the claimant in R (KBR, Inc.) v SFO relating to a US corporate's challenge to the extraterritoriality of a s.2 Notice issued by the SFO, R (Panesar and others) v HMRC on the jurisdiction for a prosecutor to use s.59 proceedings to apply to retain unlawfully seized material and acted for a FTSE-listed UK company to prevent a regulator's retention of LPP material taken by a whistle-blower. He is currently acting for large corporate charged with fraud post-Ivey and also acted for one of the world's main ejection seat manufacturers in HSE v Martin Baker Ltd. He has also represented individuals in bribery and corruption allegations, having acted in R v Majeed and others (Pakistan test match spot-fixing), R v Westfield (Essex cricketer spot-fixing), represented the Sun's Royal Correspondent in R v Larcombe and others, a District Reporter R v Pyatt and others, and also successfully appealed a journalist's conviction in R v France, all prosecuted in separate trials as part of Operation Elveden.

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Jurisdiction(s):
United Kingdom
Key definition:
Financial Conduct Authority definition
What does Financial Conduct Authority mean?

The Financial conduct authority (fca), previously known as the consumer Protection and Markets Authority (CPMA), an agency formed as one of the three successors to the unlamented Financial Services Authority. The agency will regulate financial firms providing services to consumers and maintain the integrity of the UK's financial markets.

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