DEC App 1.2 Settlement

If a person who is or may be subject to enforcement action wishes to discuss the proposed action with FSA staff on an informal basis, he may do so at any time during the enforcement process. The FSA and the person concerned should agree that discussions will take place on a "without prejudice" basis, and that neither party may subsequently rely on admissions or statements made in the context of the discussions, or documents recording the discussions.

The terms of any proposed settlement will:

1. (1)

   be put in writing and be agreed by FSA staff and the person concerned;

2. (2)

   include a statement of the facts and any breaches admitted by the person concerned and the proposed action to be taken; and

3. (3)

   be considered by the RDC.

Having considered the terms of the proposed settlement, the RDC may ask to meet the relevant FSA staff or the person concerned in order to assist in its consideration of the proposed settlement. The RDC may:

1. (1)

   accept the proposed settlement by issuing a decision notice, second supervisory notice1 or (where appropriate) notice of discontinuance based on the terms of the settlement; or

2. (2)

   decline the proposed settlement;

whether or not the RDC has met with the relevant FSA staff or the person concerned.

Where the RDC declines the proposed settlement, it may invite FSA staff and the person concerned to enter into further discussions to try to achieve a settlement. The RDC may extend the period for representations (if they have not already done so), or, if representations have already been made, the RDC will proceed to give a decisions notice.

If it is not possible to reach an agreed proposed settlement of the case by informal discussions, the person concerned may elect to submit the case to mediation.