C3: Enforcement in civil & criminal courts

Civil actionAsk High Court to grant injunctions: prevent person from conducting regulated activities without authorisation prevent person from making misleading statements in breach of FSMA stop unlawful financial promotions prevent person from committing market abuse Order payment of restitution: Court can order person to repay any profits to compensate victims for any loss asset-freezing order can prevent disposing of assets before restitution is made Insolvency orders: winding-up or administration order against firms for 'breaching general prohibition' bankruptcy order against individuals

Criminal proceedings'Summary only' offences dealt with by magistrates' courts.'Indictable' can be heard in Crown with jury deciding verdict.Some punishable by fine only; others 7 years max imprisonment.Offences cover range of misconduct: falsely claiming to be FCA-authorised carrying on regulated activity without authorisation making misleading statements to induce investments failing to co-operate with FCA investigations

Market AbuseFSMA s118 creates civil penalites for market abuse to run parallel with criminal offencesOffences are making a misleading statement & engaging in a misleading course of conduct for purpose of inducing another person to exercise or refrain from exercising rights in relation to investments.Part V of Criminal Justice Act 1993 sets out criminal offences of insider dealing.Civil offence, as defined can be: Insider Dealing Improper Disclosure Misuse of Information Manipulating Transactions Manipulating Devices Dissemination - knowingly conveying false info about an investment Distortion & Misleading Behaviour Max 7 years in prison or unlimited fine.FCA will pursue cases where there is sufficient evidence to convict and is in public interest to do so.

Money LaunderingFCA are able to: levy penalties prosecute for breaches of 3MLD.  2  imprisonment, fine, or both.Formal statutory offences: acquisition, possession, use, concealment, disguise, conversion, transfer, or removal of criminal property or assisting is offence under Proceeds of Crime Act 2002 (POCA) - 14 years imprisonment and unlimited fine failure to report any knowledge or suspicion punishable up to 5 years imprison and/or fine

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