Credible bite

The FSA has shown some determination to tackle non-compliant Significant Influence Function (SIF) holders this year, most recently by fining an MLRO for the first time. If we are truly entering a new robust era of enforcement, what should approved persons do to protect themselves? Richard Burger of Reynolds Porter Chamberlain makes some suggestions.

Richard Burger (tel: +44 (0)20 3060 6429; email: richard.burger @rpc.co.uk) is a solicitor in the Commercial and Regulatory Group of City law firm Reynolds Porter Chamberlain LLP.A former FSA enforcement lawyer, he now specialises in compliance and regulatory investigations.

At this year’s FSA Enforcement Conference, Margaret Cole, the Director of Enforcement, spoke of credible deterrence - the concept of taking more enforcement action against individuals rather than regulated firms. The regulator believes that by focussing on the individual, standards of behaviour will improve. She stated: “…we know that taking enforcement action against individuals is a vital part of achieving credible deterrence overall. So, you [the regulated sector] can expect to see more Supervision and Enforcement focus on individuals – especially Significant Influence Functions (SIF) holders.”