On December 5, the UK Financial Services Authority (FSA) published policy statement PS08/13 Decision Procedure and Penalties Manual and Enforcement Guide Review 2008.
The feedback statement summarizes the responses received by the FSA to its consultation paper CP 08/10 on the same subject (see the August 3, 2007, edition of Corporate and Financial Weekly Digest). Additionally, the feedback statement sets out the final amendments in the FSA’s Decision Procedure and Penalties Manual (DEPP), the Regulated Covered Bonds Sourcebook (RCB) and the Enforcement Guide (EG).
Notably, the FSA has added a leniency factor to its non-exhaustive list of factors that it may take into account when deciding whether to commence a market misconduct prosecution. Where misconduct is carried out by two or more individuals acting in concert and one of those individuals provides the FSA with information and gives full assistance to the FSA, the FSA will take that cooperation into account when deciding whether to prosecute the individual who has provided assistance.
The amendments also introduce a new chapter in the EG describing the FSA’s approach to using enforcement powers under UK legislation, including the Money Laundering Regulations 2007, and remove certain restrictions on the FSA’s use of Own Initiative Variations of Permissions.
The amendments to the DEPP, RCB and EG came into force on December 11.