Financial services and markets: Civil rights of action
| DOI | https://doi.org/10.1108/eb025078 |
| Pages | 237-244 |
| Published date | 01 March 2001 |
| Date | 01 March 2001 |
| Author | George Staple,Karen Anderson |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 9 Number 3
Financial services and markets: Civil rights
of action
George Staple* and Karen Anderson
Received: 24th May, 2001
Clifford Chance, 200 Aldersgate Street, London EC1A 4JJ; tel: + 44 (0)20 7600 1000;
fax: +44 (0)20 7600 5555; e-mail: george.staple@cliffordchance.com
George Staple is a consultant to Clifford
Chance LLP. He was a chairman of the
Authorisation and Disciplinary Tribunals of
the Securities Association and the Securi-
ties and Futures Authority from 1987 to
1991,
and Director of the Serious Fraud
Office from 1992 to 1997. He is the
Chair-
man of the Fraud Advisory Panel.
Karen Anderson is a senior associate in
the litigation and dispute resolution prac-
tice of Clifford Chance LLP. She was
seconded to the statutory enforcement
division of the Financial Services Authority
in 1997/1998.
As members of the Financial Services &
Markets Legislation City Liaison Group,
the authors worked on the Group's
response to the government's proposals
(with invaluable assistance from other
group members, notably Peter Beales
from LIBA and Michael McKee from BBA).
This paper draws on some of the points
raised in that submission.
ABSTRACT
Draft regulations published for consultation by
rights of
action
for loss suffered as a result of
regulatory breach by banks and insurers, and
would extend such rights to cases where an
authorised firm exceeds the scope of its regula-
tory permission. Although the effect may, in
many cases, be to impose strict liability in a
wide range of
cases,
no case has been made out
to justify the expansion of statutory civil liabi-
lity in the financial
services
sector.
The Financial Services Authority (FSA)
assumed its powers as the single statutory
regulator on 18th June, 2001 and the main
provisions of the Financial Services and
Markets Act 2000 (FSMA) are to come
into force on 1st December 2001. Once
implemented, the FSMA will establish a
new regime for the statutory regulation of
financial services in the United Kingdom.
But while the FSMA supplies the broad
framework for the new regime, much of
the detail is to be found elsewhere — in a
raft of statutory instruments produced by
HM Treasury, and in the numerous consul-
tation papers, policy statements and codes
issued by the FSA.
Although many issues such as account-
ability, the new 'civil' market abuse regime,
and human rights issues were the subject of
intense scrutiny during the passage of the
legislation through parliament, those aspects
of the regime which were left to secondary
legislation, including the extent of the rights
of action to be conferred under the FSMA,
have received far less public attention.
Clients or counterparties who suffer loss
as a result of some form of default by a
Journal of Financial Regulation
and Compliance, Vol. 9, No. 3,
2001, pp. 237-244
© Henry Stewart Publications,
1358-1988
Page 237
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