BACFI's seminar on financial services, integrity and the right to a

fair hearing

Dr. Nicholas RyderProfessor in Financial Crime

TBACFI Seminar on Financial Services: Wednesday May 20 2015

The Regulator

• The Financial Conduct Authority:– Prosecuting authority for both money laundering ,

insider dealing and limited number of fraud related offences,

– It has the power to impose financial sanctions where it had established that there had been a contravention by an authorised person of any of its requirements, and

– ban authorised persons and firms from undertaking any regulated activity.

Credible Deterrence

• “deliver a message that breaches of law and/or regulation will result in offenders suffering ‘meaningful consequences’ including imprisonment” (Nesvetailova, 2010)

• “involves bringing action not just against firms, but also against individuals … a sanction imposed on an individual may have longer-lasting consequences” (Peat and Mason, 2009)

Enforcement Activities (FCA)

Year Total Financial Sanctions

2007 £5.3m

2008 £22.7m

2009 £35m

2010 £66.1m

2011 £89.1m

2012 £311.5m

2013 £474.1m

2014 £1.4bn

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Enforcement Activities (SEC)

Number of Entities and Individuals Charged 175

Number of CEOs, CFOs, and Other Senior Corporate Officers Charged

70

Number of Individuals Who Have Received Officer and Director Bars, Industry Bars, or Commission Suspensions

40

Penalties Ordered or Agreed To $1.87bn

Disgorgement and Prejudgment Interest Ordered or Agreed To $1.29bn

Additional Monetary Relief Obtained for Harmed Investors $418m

Total Penalties, Disgorgement, and Other Monetary Relief $3.95bn

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Enforcement Activities ctd

• Jonathan Burrows• Peter Cummings• Yohichi Kumagai • David Jones• Johnny Cameron• Fred Goodwin• Paul Robson