Following the publication of two reports relating to the handling of its probe into the HBOS collapse, the FCA has this year introduced a substantial revamp of its enforcement procedures.
With the abolition of discounts in penalties for cases settled after the earliest stage of an action, firms and individuals subject to investigation, and their legal representatives, are incentivised to engage meaningfully with the FCA early on.
However, with the introduction of the new concept of ‘partly contested cases’, firms and individuals who accept only aspects of the FCA’s case will for the first time be able to maintain their entitlement to settlement discount while referring their narrowed disputed issues to the Regulatory Decisions Committee ('RDC'), or indeed the Upper Tribunal, for streamlined determination.
Whilst the aim of these developments is no doubt to increase the number of cases settled, in practise the added opportunity for firms and individuals to seek to shape a settlement to their taste is likely to mean a greater volume of contested issues to litigate before the RDC, and indeed the Tribunal.
On the 28th September 2017 at QEB Hollis Whiteman chambers, Jason Mansell and Rhys Meggy will be examining the changes to the FCA’s enforcement procedures as well as considering the strategic implications and opportunities for practitioners in the field.
Jason Mansell