On April 14, 2016, the FCA and Prudential Regulation Authority published a joint consultation paper on proposals to implement certain aspects of the recommendations set out in HM Treasury's Review of Enforcement Decision-making at the Financial Services Regulators (known as the Enforcement Review), published in December 2014, and the report by Andrew Green QC in the enforcement actions following the failure of HBOS (known as the Green Report), published in November 2015. The Enforcement Review and the Green Report made three overlapping recommendations about the regulator's decision-making processes covering pre-referral decision-making, communication and cooperation between and within the regulators and providing information about an investigation to the subject of investigation. The consultation sets out how the FCA and PRA intend to implement those recommendations. The PRA will consult later this year on the settlement and contested decision-making recommendations once the Bank of England and Financial Services Bill is finalized. In addition, the FCA is also consulting on related amendments to its Enforcement Guide and the Decision Procedure and Penalties Manual.
The consultation is open until July 14, 2016. The regulators intend to publish a policy statement later this year in response to feedback received.
The consultation paper is available at: http://www.bankofengland.co.uk/pra/Documents/publications/cp/2016/cp1416.pdf
The enforcement review is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/389063/enforcement_review_response_fi nal.pdf
The Green Report is available at: http://www.bankofengland.co.uk/pra/Documents/publications/reports/agreenreport.pdf