The Enforcement Division has a small team that works with staff from across the division on any matters relating to international co-operation and policy development that are relevant to enforcement. The team performs several different roles:

  • We deal with requests from overseas authorities. For example, we respond to requests for information about stockmarket transactions by UK authorised firms on overseas markets, the reputation of UK firms and individuals, exercising investigatory powers and mutual legal assistance. We can get this information from our own files and by asking UK authorised firms and individuals on behalf of the overseas authority. Such work is carried out in close liaison with colleagues across the FSA.
  • We help Enforcement staff to obtain information or assistance in investigations from overseas authorities and with matters relating to mutual legal assistance.
  • We participate in international committees such as the International Organisation of Securities Commissions, the Council for European Securities Regulators and the annual Wilton Park regulators' conference, which the FSA organises. International enforcement standards and the practical aspects of co-operation and co-ordination of enforcement action form part of the work of such groups.
  • We contribute to other work with an international angle, such as negotiating Memoranda of Understanding with other enforcement agencies (which set out channels of communication and procedures for co-operating and sharing information), and discussions about EU financial services directives.
  • We also offer other advice and assistance as and when necessary, for example about disclosing confidential information, and participating in meetings to address particular enforcement issues with a specific overseas authority.

How and why do we co-operate?

Section 354 of the Financial Services and Markets Act 2000 (FSMA) says that the FSA must take such steps as it considers appropriate to co-operate with other persons (whether in the UK or elsewhere) who have functions similar to those of the FSA or in relation to the prevention or detection of financial crime. This co-operation may include sharing information which we are not prevented by law from disclosing.

There are specific regulations which deal with the disclosure of confidential information to (amongst others) EEA and non-EEA regulators (for some general information about disclosure see the Financial Services and Markets Act (Disclosure of Confidential Information) Regulations 2001 (SI 2001 No 2188)). In broad terms, these say that we can disclose information to EEA regulators to help them carry out their functions.

The FSA’s general information gathering and investigative powers on behalf of overseas regulators are in section 169 of FSMA. These include considerations about giving assistance to overseas authorities by using our statutory powers, such as:

  • whether the overseas authority would be in a position to help us if necessary;
  • whether the overseas authority has a similar regulatory system;
  • the seriousness of the case and its importance to persons in the UK;
  • whether it is in the public interest; and
  • the costs.

However, if the use of the power is necessary to comply with an EEA obligation, then these considerations do not apply. Section 169 also sets out some considerations relating to whether an overseas regulator can “sit in” on an FSA interview. An over-riding principle relating to interviews conducted in the UK on behalf of an overseas regulator is that the FSA retains control throughout preparation for and conduct of the interview.

Finally, Sections 47 and 195 of FSMA describe how we can use our powers to change or cancel a firm’s permission at the request of or to assist an overseas regulator. This involves similar considerations to those described above.

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