FCA to allow partly contested cases

FCA to allow partly contested cases
It is essential that our enforcement decision-making processes command public confidence and operate both efficiently and fairly.

The FCA is introducing a process for partly contested cases as part of a series of changes aimed at improving the effectiveness of its enforcement decision-making process.

This will allow a person under investigation to agree certain elements of a case - such as penalty, facts or liability - and contest the other elements before the Regulatory Decisions Committee.

They will still have the ability to obtain a discount on the penalty that will reflect the extent that issues have been agreed.

In addition, the FCA is providing a mechanism for those under investigation to proceed more directly and quickly to the Upper Tribunal, providing external adjudication that is wholly independent of the FCA.


The FCA is also abolishing penalty discounts at Stage 2 and 3 of settlement.

The FCA and PRA will also provide more information to the subject of an investigation about why they have been referred for investigation and increase engagement to give them regular updates throughout the investigation.

For the PRA, further work is underway or planned for 2017, including follow-up work on the 2016 consultation on an Enforcement Decision-Making Committee, production of a short guide to PRA enforcement procedures, and a review of the PRA’s approach to settlement.

Mark Steward, Director of Enforcement and Market Oversight at the FCA, said: “It is essential that our enforcement decision-making processes command public confidence and operate both efficiently and fairly. The changes set out in today’s PS are designed to achieve just that and reflect the views of stakeholders who responded to our consultation.”

Miles Bake, Head of Legal, Regulatory Action Division of the PRA, said: “The PRA’s enforcement processes must be clear, transparent and reasonable. This Policy Statement outlines a number of concrete steps the PRA is taking to ensure that we implement the recommendations from the HMT Enforcement Review and the Report of Andrew Green QC.”

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