BBA v FSA – Principles-Based Redress in Action

One of the most talked-about cases this year, the judgment in British Bankers Association v Financial Services Authority and Financial Ombudsman Service [2011] EWHC 999 has attracted huge attention from the press. But although there have been hectares of coverage of the implications of the judgment for customers who bought Payment Protection Insurance (“PPI”) policies, there has been less comment on the wider regulatory implications for financial services companies. Read on

Market abuse – beware the triple-headed regulator

Given the length of the Financial Services and Markets Act 2000 (“FSMA”), it is unsurprising that, even a decade on, some sharp-edged tools still lay unused within the depths of the Financial Services Authority’s regulatory toolkit. As far as market abuse was concerned, two specific, and very different, routes to a desired regulatory outcome have come to be well recognised. Read on

The Financial Services Bill: The new regulatory architecture is finally revealed

The Government has now published its draft Financial Services Bill and it is clear that the Government has no intention to hold back on its comprehensive reform of financial services regulation in the UK. The draft bill is made up of 219 pages which, if implemented, will amend a number of existing Acts, most notably the Financial Services and Markets Act 2000, the Bank of England Act 1998 and the Banking Act 2009. Read on

Blackstone Chambers Financial Services Litigation Conference

It will run from 1.30pm on Friday, 4th November, at the Royal Society of Arts, 8 John Adam Street, WC2N 6EZ. Read on

Recent cases:

Javan Herberg QC recently acted for the FSA, obtaining an order freezing the assets of Da Vinci Invest Limited, a Swiss asset-management firm, in a case concerning suspected market manipulation. The order was obtained to preserve assets in the event that there will be any future penalties for market abuse.

Andrew George acted for the FSA in this recent judicial review hearing, part of which was held in private, concerning the status and permitted use of documents allegedly subject to joint privilege in the hands of, amongst others, Stewart Ford, the former Chief Executive of the financial services firm, Keydata.

Javan Herberg QC and Simon Pritchard appeared for the FSA at the Upper Tribunal hearing concerning the management of a hedge fund (Mercurius). The fund, with approximately 20 investors and €35 million under management, was placed into voluntary liquidation on 11 January 2008 and investors have, to date, received nothing. The Tribunal found that Mr Visser and Mr Fagbulu had both breached Principle 1 of the FSA’s Statements of Principle for Approved Persons and engaged in market abuse and it imposed fines of £2 million and £100,000 respectively. In relation to Mr Visser, the Tribunal said that his conduct was “worse than any other [it had] seen”. With regards to Mr Fagbulu, the Tribunal decided that his conduct merited a fine of £350,000 but reduced that fine to £100,000 because of his financial circumstances.

News:

Chambers has a well established Caribbean financial services practice (for example acting and advising in disputes in the BVI, Cayman Islands and Bermuda) and now has barristers instructed in the first ever financial markets case in Qatar (Javan Herberg QC and Andrew George) and the first ever Dubai financial markets tribunal case.

Blackstone Chambers is delighted to welcome three new junior tenants to its ranks. Fraser Campbell, Andrew Scott and Shane Sibbel will commence practice in October this year following the successful completion of their pupillages with Chambers.