When the chips are down

Ideally, an FSA enforcement investigation would be warded off by robust compliance practices. But if this falters and the regulator comes knocking, preparation for the ensuing process is essential. Carlos Conceicao, Judith Seddon and Caroline Doherty de Novoa outline some practical steps.

Carlos Conceicao is a partner and Judith Seddon and Caroline Doherty de Novoa are senior associates in Clifford Chance’s dispute resolution group, specialising in regulatory matters.

Despite its impending demise it is very much business as usual at the FSA as the enforcement division continues the weekly publication of heavy-hitting final notices, which are often the result of several months or years of investigation by the FSA into the firm’s conduct. Given public sentiment following the recent economic turmoil, we are likely to see more referrals to enforcement. Moreover, the successor to the FSA, the Consumer Protection and Markets Authority, will, if anything, be even more enforcement orientated than the FSA.