FCA enforcement warning rattles City law firms

Charlie Conchie

LAWYERS have warned of a looming clash between the Financial Conduct Authority (FCA) and the legal profession after the watchdog’s new enforcement chief fired barbs at the sector’s conduct when defending firms.

In a speech last week, the FCA’s new joint executive director of enforcement and market oversight, Therese Chambers told City lawyers that while they “like to see themselves as risk managers”, those defending firms should “ask themselves what poses the greatest risk in the long term”.

Chambers, a former private practice lawyer, warned legal professionals “you can use your skills to block an inquiry, to claim privilege for every piece of paper and generally get in our way, but what is that going to achieve?”

The comments have triggered warnings of a new hard-headed approach from the FCA towards lawyers defending City firms that are being investigated by the regulator.

“The pointed reference to defence lawyers using ‘aggressive diversionary tactics to prolong the timeline of FCA enforcement investigations’, may shape future engagement between to see unionised jobs, and support unionised industries,” the Guardian reported.

FCA enforcement and lawyers defending firms and senior executives under investigation,” Richard Burger, a partner in the UK investigations practice at law firm Wilmerhale, told City A.M.

“When the co-director of FCA enforcement refers to getting your ducks in a row now, the message is clear that more enforcement action will follow,” Burger added.

Matthew Nunan, partner at Gibson Dunn and a former senior official at the FCA, told City A.M. that Chambers’ warnings “feel like a very clear warning for regulated firms” and they would “have to think carefully about whether they genuinely want to cooperate with investigations or not”.

“There is also a real marker put down to firms about the conduct of their advisers – the FCA will be wary of firms that say they wish to cooperate but then hide behind obstructive lawyers,” Nunan added.

“Advisers must, however, continue to give robust advice and cannot be afraid to challenge the regulator,” he said.

“Case law shows the regulator is not always right and rolling over to demonstrate cooperation isn’t always the best long-term approach,” he added.

An Amazon spokesman said: “Amazon respects our employees’ rights to join, or not to join, a union.”

Starmer’s comments come as he looks to improve his relationship with the union, after GMB boss Gary Smith criticised the party’s plans to scrap new oil and gas licences in the North Sea, branding the idea “naive”.

NO... YOU CAN’T EAT IT An artist’s new installation wedding cake in Aylesbury

UK space sector gives economy a £7bn boost

GUY TAYLOR

THE UK’s space sector contributed £7bn to the UK economy last year, new data has revealed.

Kevin Craven, chief executive of aerospace and defence trade organisation ADS Group, which published the data, said that the UK continues to be a “world leader” in space, but that “innovation and expertise must be fully utilised and leveraged to secure UK advantage".

The figure shows that the UK’s space industry is still going strong after it was hit by the botched Cornwall launch of British billionaire Richard Branson’s Virgin Orbit in January.

The California-based company subsequently paused operations and placed some staff on furlough in early March, before eventually filing for bankruptcy in April.

Will Lecky, co-founder and director of know.space, a space economics and strategy consultancy, told City A.M: “While the Virgin Orbit launch was a setback, it is not the only game in town. We view that we are still in the relatively early days of a longterm growth story.”

“The UK can’t be complacent in what is a competitive global landscape, though it is well positioned to take advantage of new opportunities as we progress towards a $1trn global space market,” Lecky said.