On January 26, the UK Financial Services Authority (FSA) published consultation paper CP09/05 Obtaining and using firm-commissioned reports, setting out proposed guidance on the FSA’s approach to using firm-commissioned reports in anticipation of a possible FSA enforcement action.  

The FSA stated that it understands that when it investigates firms, the firms in question often decide to commission internal reports from law or accountancy firms, and firms often discuss the scope of their investigation with the FSA and agree to provide a copy of the final report. The FSA considers that several common issues have arisen, including whether firms must disclose internal reports and the waiver of privilege in the context of FSA investigations. The FSA therefore considers that it would be helpful to clarify its expectations in relation to reports which firms commission from their legal or other advisers.  

The consultation closes on February 23.