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In a decision issued on 9 April 2019, the Upper Tribunal decided that it was appropriate for the FCA to impose a penalty of £409,300 on Linear Investments Limited for a breach of Principle 3 of the Principles for Businesses.

The breach arose as a result of Linear’s failure to implement adequate risk management systems in relation to the detection and reporting of potential instances of market abuse between 14 January 2013 and 9 August 2015.

This is the first Tribunal reference of a matter where the relevant applicant had entered into a Focused Resolution Agreement (“FRA”) with the FCA. By the FRA, the parties had agreed not to dispute various matters of fact and liability, including on any reference to the Tribunal.

Whilst not a party to the FRA, the Tribunal decided not to open matters of fact and liability agreed between the parties. Further, the Tribunal decided that if, and in so far as, Linear’s arguments conflicted with agreed facts, the Tribunal would interpret those arguments in a manner that did not conflict with the agreed facts.

Simon Pritchard acted for the Authority.

Click here for more details are available in the FCA’s press release.

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