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The position of individuals in regulatory investigations: A changing landscape
Journal of Financial Compliance,
1
(2),
172-182
(2017)
Abstract
More attention is now being given to taking effective enforcement action against executives and senior individuals in the financial services industry both in the UK and overseas, with a noticeable similarity of approach between the Financial Conduct Authority (FCA) and US regulators. In contrast, the UK’s Serious Fraud Office (SFO) is increasingly turning its attention towards prosecution of corporates. This paper considers FCA and SFO investigation powers, particularly in relation to interviews of both subjects of investigation and witnesses. The paper also reviews recent changes to FCA and SFO processes and the impact that may have on senior employees and executives. The authors discuss how companies and individuals can prepare for future investigations and in particular how individuals can ensure that the costs of legal representation are covered either by their employer or insurers. They also set out the nature and some pitfalls of management liability insurance.
Keywords: regulatory interviews, Serious Fraud Office (SFO), Financial Conduct Authority (FCA), management liability protection, directors’ and officers’ liability insurance (D&O)
The full article is available to subscribers to the journal.
Author's Biography
Guy Wilkes is a partner in the London office of law firm Mayer Brown. Guy advises a wide range of financial services clients on UK and EU financial services regulation and enforcement. Prior to joining Mayer Brown in 2016, Guy headed a department within the UK Financial Conduct Authority’s Enforcement Division where he led on a variety of large high-profile investigations. As a member of the Financial Conduct Authority’s (FCA’s) senior leadership team, Guy had responsibility for developing enforcement strategy, especially in relation to financial crime and anti-money laundering where he chaired the FCA’s cross-divisional working group. He also set up and ran the FCA’s internal expert group for investigations against senior individuals.
Francis Kean joined Willis as an Executive Director of FINEX Global in 2010. Prior to that Francis was a partner with the UK law firm Barlow Lyde and Gilbert LLP. He brings to Willis 25 years of experience as a litigation lawyer specialising in professional indemnity, financial institutions, directors’ and officers’ liability in the London insurance market. He was responsible for the launch of DARCstar, the first broker derived primary directors’ and officers’ (D&O) form. It won the Insurance Innovation of the Year Award in 2012. While in private practice, Francis handled a wide variety of claims both for insurers and insureds, and has considerable experience of drafting policies and advising all parties in connection with coverage issues. He has handled disputes ranging from the defence of large, international claims against professionals to multi-jurisdictional coverage disputes. He was the editor of a book on D&O liability insurance published by The Insurance Institute of London. Francis regularly writes a D&O blog for WillisWire (http://blog.willis.com/ author/franciskean/) and is a frequent speaker at conferences and events.
