Related provisions for EG 5.2.3
1 - 4 of 4 items.
Settlement discussions may take
place at any time during the enforcement process if both parties agree. This
might be before the giving of a warning notice,
before a decision notice, or
even after referral of the matter to the Tribunal.
But the FCA4 would
not normally agree to detailed settlement discussions until it has a sufficient
understanding of the nature and gravity of the suspected misconduct or issue
to make a reasonable assessment of the appropriate outcome. Settlement
(1) The settlement decision makers may, but need not, participate in the discussions
exploring possible settlement.(2) If the settlement decision makers have not been involved in the discussions, but
an agreement has been reached, they may ask to meet the relevant FCA4 staff or the person concerned
in order to assist in the consideration of the proposed settlement.4
(1) Where the settlement decision makers decline to issue a statutory
notice despite the proposed settlement, they may invite FCA4 staff
and the person concerned to
enter into further discussions to try to achieve an outcome the settlement decision makers would be prepared
to endorse.4(2) However, if the proposed action
by the FCA4 has
been submitted to the RDC for
consideration, it will be for the RDC to
decide:4(a) whether to extend the period for
representations in response
1The FCA considers that in general, the earlier settlement discussions can take place the better this is likely to be from a public interest perspective. However, the FCA will only engage in such discussions once it has a sufficient understanding of the nature and gravity of the suspected misconduct or issue to make a reasonable assessment of the appropriate outcome. At the other end of the spectrum, the FCA expects that settlement discussions following a decision notice or second
2There is no set form for a stage 1 letter though it will always explain the nature of the misconduct, the FCA's view on penalty, and the period within which the FCA expects any settlement discussions to be concluded. In some cases, a draft statutory notice setting out the alleged rule breaches and the proposed penalty may form part of the letter, to convey the substance of the case team’s concerns and reasons for arriving at a particular penalty figure.
1As described above, the FCA operates special decision-making arrangements under which members of FCA senior management take decisions on FCA settlements. This means that settlement discussions will take place without involving the RDC. The FCA would expect to hold any settlement discussions on the basis that neither FCA staff nor the person concerned would seek to rely against the other on any admissions or statements made if the matter is considered subsequently by the RDC or