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Requests to FCA from overseas regulators double since credit crunch
by James Phillipps on Aug 19, 2013 at 11:28
Requests to the Financial Conduct Authority (FCA) from overseas regulators have more than doubled since the start of the credit crunch and increased fivefold from the US authorities.
The FCA received 885 requests from foreign regulators in 2012, up from 464 prior to the credit crunch in 2006, according to City law firm RPC. Requests peaked at 1,023 in 2011 with the US regulators, such as the Securities and Exchange Commission (SEC) and New York Department of Financial Services (NYDFS), consistently making more than a fifth of these.
Indeed, requests from the US have spiked from just 48 in 2006 to 250 in 2012, after peaking at 285 in 2011.
Richard Burger, partner at RPC, said: ‘The FCA has been facing a rapidly growing number of requests for assistance from foreign enforcement agencies.
‘These will range from straightforward enquiries to complex matters that take days or weeks to deal with. Many of them are likely to prompt the FCA to look into whether it should be bringing its own enforcement case.’
RPC says the increasing co-operation between national regulators is apparent, pointing to the $3.7 million in fines handed out to US-based high-frequency oil futures trader Michael Coscia in July for market manipulation with $2.8 million of the penalty paid to the US Commodities Futures Trading Commission (CFTC), and $900,000 to the FCA.
‘The slight reduction in overseas requests to the FCA last year suggests that much of the ‘low-hanging fruit’ has already been picked by international regulators,’ Burger said.
‘Many of these cases will be extremely technical in nature, and will involve masses of data processing in order to prove any illegal activity took place.
‘Prosecutions in cases like this will take a long time to come to fruition.’
He added the FCA needs to guard against the risk of its resources becoming stretched by the demands from overseas regulators and be mindful of ‘the effect this might have on its less glamorous but equally important domestic issues.’
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by James Phillipps on Dec 09, 2013 at 07:52