FSA challenge in Court of Appeal to finding of Financial Services and Markets Tribunal on question of whether solicitors' firm had contravened financial promotion regime
| DOI | https://doi.org/10.1108/13581980910972278 |
| Pages | 349-356 |
| Published date | 24 July 2009 |
| Date | 24 July 2009 |
| Author | Joanna Gray |
| Subject Matter | Accounting & finance |
LEGAL COMMENTARY
FSA challenge in Court of Appeal
to finding of Financial Services
and Markets Tribunal on question
of whether solicitors’ firm
had contravened financial
promotion regime
Joanna Gray
University of Newcastle upon Tyne, Newcastle upon Tyne, UK
Abstract
Purpose – The purpose of this paper is to look at a recent Financial Services Authority (FSA)
challenge in the Court of Appeal to finding of Financial Services and Markets Tribunal on question of
whether solicitors’ firm had contravened financial promotion regime (FSA v. Fox Hayes: Court of
Appeal (civil division): Lord Justice Longmore, Lord Justice Wilson, Lord Justice Lawrence Collins).
Design/methodology/approach – Examines the FSA’s various grounds for appeal and what was
an appropriate level of penalty.
Findings – Provides the court of appeal’s decisions on point of law in relation to three issues.
Originality/value – This paper will be of interest to regulated firms who fear the consequences of
regulatory liability for breaches of FSA rules.
Keywords United Kingdom,Legislation, Financial services,Regulation, Solicitors
Paper type Viewpoint
(Financial Services Authority v. Fox Hayes: Court of Appeal (civil division): Lord Justice
Longmore, Lord Justice Wilson, Lord Justice Lawrence Collins).
Date of judgment: 17 February 2009
Facts
The background to this appeal lay in a decision of the Financial Services and Markets
Tribunal of September 2007 on a reference to it by a firm of solicitors “Fox Hayes” of an
Financial Services Authority (FSA) decision notice issued against the firm imposing a
penalty of £150,000 for breach of the conduct of business rules relating to financial
promotion. Fox Hayes had approved, for the purposes of section 21 Financial Services
and Markets Act (FSMA) 2000, certain communications made by overseas person s to
the UK investors. The details of these communications and Fox Hayes’ role in their
making to the UK investors was set out in the 2007 tribunal decision which itself was
fully noted in this Journal (Volume 16(2) 2008) and for ease of reference those facts are
set out again here:
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
Legal
commentary
349
Journal of Financial Regulation and
Compliance
Vol. 17 No. 3, 2009
pp. 349-356
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581980910972278
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