U.K. regulator the Financial Services Authority showed its determination to hold individual executives accountable for corporate wrongdoing this week when it fined and banned two former employees of the failed bank Northern Rock. The FSA said that David Baker, former deputy chief executive of Northern Rock, failed to escalate information inside the business about loans […]
Global Glimpses
Posted inAccounting & Auditing
Europe to Unveil Governance Reforms
The European Commission is expected to publish new proposals for corporate governance reform next month, which could lead to important legal changes across the trading bloc’s 27 member states. The proposals focus on improving governance standards in the financial sector. They will be based on a report received by the Commission on the sector’s governance […]
Posted inAnti-Bribery
U.K. Modernizes Bribery Laws, Finally
The U.K. finally modernized its anti-bribery laws this week when Parliament approved long-awaited new legislation. The Bribery Bill had to be rushed through before Parliament shut down ahead of a General Election on May 6, but lawyers say there were no last-minute amendments of any note. However, some uncertainty remains about when the most important […]
Posted inAnti-Bribery
Judge Puts U.K. Plea Deals in Doubt
The U.K. Serious Fraud Office’s strategy for tackling financial crime has been thrown into doubt after a senior judge criticized the plea deal that the agency reached with a company guilty of paying bribes. In his judgment on the case, Lord Justice Thomas, the U.K.’s deputy head of criminal justice, said the SFO “had no […]
Posted inRegulatory Enforcement
FSA Launches Biggest Ever Insider Dealing Operation
The U.K Financial Services Authority’s determination to get tough on insider dealing continues. Last week it sought to extradite a suspect for the first time, now it has raided addresses and made arrests in what it says is its biggest ever operation against insider dealing. In its first joint operation with officers from the Serious […]
Posted inAnti-Bribery
Campaigners Lose Bid to Block BAE Plea
Two anti-corruption groups have lost their court battle to delay approval of a controversial plea bargain between the U.K. Serious Fraud Office and arms company BAE Systems. The defeat for protest groups Corner House and Campaign Against Arms Trade clears the way for BAE to plead guilty to charges it agreed upon with the SFO […]
Posted inRegulatory Enforcement
Tougher FSA Uses Extradition Powers
Further evidence came this week that the U.K. Financial Services Authority is taking a tougher stance on enforcement. Charging two suspects in an insider dealing case, the regulator for the first time sought the extradition of a suspect from abroad. The FSA used a European Arrest Warrant issued by a London court to empower the […]
Posted inBoards & Shareholders
Companies Pushed to Disclose Diversity Plans
U.K.-listed companies would have to disclose what they are doing to get more women and “other under-represented groups” into senior management positions under a new Government proposal. Lord Davies, the minister for trade, investment, and small businesses, has written to the Financial Reporting Council (FRC) asking it to include a measure to that effect in […]
Posted inFrom the Archive
Appeal Win Lets FSA Grab Evidence for SEC
Britain’s Financial Services Authority says it is committed to helping the Securities and Exchange Commission with overseas investigations, after winning an appellate court battle that aimed to block its efforts to obtain confidential evidence for its U.S. friends. Lawyers said the victory gives new support to the SEC’s ability to obtain evidence outside of the […]
Posted inAccounting & Auditing
FSA Pushes Through Unpopular Fines Crackdown
Britain’s Financial Services Authority has decided to push ahead with a controversial new policy on compliance penalties, despite concerns that it is too harsh and will damage the FSA’s relationships with regulated firms. The new framework, which takes immediate effect, could lead to the fines imposed by the FSA tripling in some cases, the regulator […]