UK

FSA: A Year in Review, Lessons to be Learnt

Stephen Gate is a senior associate in the commercial litigation division of Barlow Lyde & Gilbert with extensive experience of FSA enforcement issues.

Last year saw something of a consolidation of the Financial Services Authority’s (FSA) approach to enforcement. The number of Final Notices issued by the Regulatory Decisions Committee of the FSA has more than doubled from 23 in the first year of the new regime (N2 to 1 December 2002), to 52 in the second year.The total amount of fines imposed by the FSA has increased from £1.6 million in the first year to £13.4 million in the second year. The High Court has supported the FSA’s powers of investigation and resisted a challenge to the FSA’s decision-making process by way of judicial review. In addition, decisions have at last begun to be made by the FSMA Tribunal. This article summarises some of the main developments in FSA enforcement law in 2003 and some principles emerging.