Financial services advisor sentenced...
10 Oct 03
Andrew George of Blackstone Chambers represented the FSA in a case against Christopher Westcott resulting in Mr Westcott receiving a 28 day suspended prison sentence.
The Financial Times reports:
NATIONAL NEWS: Suspended sentence for man who missed FSA interview
By Elizabeth Rigby and Nikki Tait
Financial Times; Oct 10, 2003
A financial services adviser who failed to co-operate in an investigation by the City watchdog has been given a suspended prison sentence.
This is the first time the Financial Services Authority has secured such a tough penalty under its newly-enhanced powers.
The FSA applied to the High Court after Christopher Westcott, 39, failed to attend an interview to discuss Cathedral Funeral Services.
Sir Andrew Morritt, head of the Chancery Division, ruled that the businessman was in contempt of court and handed down a 28-day suspended prison sentence, which Mr Westcott will have to serve if he does not now co-operate fully with the FSA investigation.
The judge said that legally he was authorised to treat Mr Westcott's conduct as contempt of court. Sir Andrew added that he had no information about Mr Westcott's finances, but it was possible that a financial penalty would simply impact on people who had done business with his company.
He imposed the 28-day prison sentence, but suspended this for a year on condition that Mr Westcott co-operates with the FSA. If he does so, the sentence will be discharged at the end of that period.
Afterwards, the FSA confirmed that it was the first time that the agency had brought a case of this kind to the civil courts.
The FSA is investigating claims that Mr Westcott has been selling funeral plans in the Durham area without proper authorisation. The FSA said that the investigation, which it started last year, would go on for a few months, although it does not yet know how many people might have bought plans from Mr Westcott.
Andrew Procter, director of enforcement at the FSA, welcomed the judge's decision. "The court's decision emphasises the need for individuals to co-operate with FSA investigations and makes clear the potential consequences if they fail to co-operate with our inquiries. As part of this investigation we would like to hear from anyone who was sold a plan by Mr Westcott, or any of his aliases, or Cathedral Funeral Services," he said.
The FSA said it would use the increased powers again if people did not come in to be interviewed. Under new rules, the FSA is allowed to interview people under caution and compel witnesses to come and give evidence.
In another sign that the FSA is toughening up, it has also drawn on its new powers to ask the City of London fraud squad to arrest suspects on its behalf.
Echoing the court case, this agreement between the police and regulator was in part prompted by the growing number of individuals connected with FSA investigations who have refused to answer requests for an interview.