UK

Financial Services and Markets Tribunal decides preliminary issue in application from former chairman of Shell Group

Joanna Gray, University of Newcastle upon Tyne

Background: FSA market abuse action against Shell group companies

On 7 September, the Financial Services and Markets Tribunal ruled on an important preliminary issue that arose out of a reference to it by the former chairman of the Royal Dutch/Shell group of oil companies, Sir Philip Watts KCMG. Watts had complained about procedural aspects of the Financial Services Authority’s (FSA) use of its enforcement machinery against the Royal Dutch/Shell group (Shell) under the market abuse regime introduced by the Financial Services and Markets Act 2000 (FSMA 2000). Watts had argued that the way in which the FSA had taken enforcement action against Shell resulted in real unfairness to him and was inconsistent with its legislative powers. Joanna Gray explains the importance of the case.