18 October 2004

The FSA has made an application to the Financial Services and Markets Tribunal asking that they reach a decision on the preliminary issue of whether Sir Philip Watts was, as he alleges, identified and prejudiced by the FSA's Final Notice given to The Shell Transport and Trading Company, plc and The Royal Dutch Petroleum Company NV (the "Shell corporates"). We are confident that he was not and that the Tribunal will agree with us. This would mean that the Tribunal will have no jurisdiction to consider the other matters which Sir Philip has referred to the Tribunal.

Sir Philip Watts has agreed with our proposal that the Tribunal reach a decision on the preliminary issue of identification and prejudice before considering, if necessary, any other matters and we are awaiting directions from the Tribunal. The FSA has instructed Lord Grabiner QC and Javan Herberg to represent it.

 

What is Sir Philip's reference all about?

 

Sir Philip claims that he was identified and prejudiced by our Notice given to the Shell corporates and that the FSA failed to give effect to his rights as a result of being so identified and prejudiced. Sir Philip is also asking the Tribunal to make findings based on the evidence the FSA had at the date of our Decision Notice given to the Shell corporates and other evidence which Sir Philip will give to the Tribunal, and for a direction from the Tribunal that the FSA amend its Notice to reflect the Tribunal's findings.

The FSA's continuing investigation

 

We have further enquiries which we are pursuing and we have made no determination whether, if at all, any individual is at fault. If and when the need arises, we will ensure that any affected parties are given their full rights.

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