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The regulator has significantly rowed back on aspects of the proposals following industry and government feedback.

By Andrea Monks, Rob Moulton, Nell Perks, Anna James, and Charlotte Collins

On 28 November 2024, the FCA published revised proposals for announcing enforcement investigations. The original consultation, launched in February 2024, proved to be one of the most controversial proposals put forward by the regulator and received an unprecedented response from industry and the government (for more detail on the original proposals, see this Latham blog post). The FCA has attracted a great deal of criticism since the launch of the first consultation, culminating in an evidence session before the House of Lords Financial Regulation Committee a few weeks ago, which made for uncomfortable viewing.

In light of the feedback received, the FCA has made some significant changes to its proposals, and acknowledges that it ought to have handled their communication better by signalling the proposals to the market in advance of their publication. The regulator also acknowledges the importance of considerations around its secondary objective relating to international competitiveness and growth in relation to these proposals.

Securities and Exchange Commission, SEC, Building in Washington DC

The SEC’s September 17, 2024, actions signal its commitment to penalize non-compliance, while encouraging market participants to self-report violations.

By Stephen Wink, John Sikora, Aaron Gilbride, Naim Culhaci, and Samantha Daisy

On September 17, 2024, the US Securities and Exchange Commission (SEC) announced charges against 11 institutional investment managers for failing to file Forms 13F and 13H. All parties settled the charges. These charges signal the SEC’s willingness to bring enforcement actions and impose sanctions against…

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The first-ever SFO offence to be tried by a jury in the CFI emphasises the SFC’s commitment to prosecuting market misconduct through various enforcement powers.

By Dominic Geiser, Truman Mak, Evangeline Tsui, and Charlotte Wong

The Hong Kong Court of First Instance (CFI) has convicted three individuals of conspiracy to carry out false trading in the shares of a listed company, Ching Lee Holdings Limited (CLHL). This is the first time that an offence under the Securities and Futures Ordinance (SFO) has been tried by a jury in the CFI.

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This latest example of strategic coordination between Hong Kong regulators confirms a broader regulatory mission and shared objectives.

By Dominic Geiser, Truman Mak, Evangeline Tsui, and Charlotte Wong

On 5 March 2024, the Hong Kong Stock Exchange (HKEx) issued a Statement of Disciplinary Action (Statement) against two former directors (the Former Directors) of a company listed on the Growth Enterprise Market (GEM) of the HKEx for misappropriating company funds during the listing process. The disciplinary action followed efforts by the HKEx and the Securities and Futures Commission (SFC) to investigate the directors, and highlights strategic coordination on enforcement actions on IPO-related misconduct. The Monetary Authority of Singapore (MAS) also provided assistance.

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The FCA plans to streamline its approach to enforcement and publicise investigations at an early stage.

By Andrea Monks, Rob Moulton, Nell Perks, Anna James, and Charlotte Collins

On 27 February 2024, the FCA published a Consultation Paper (CP24/2) on its proposed new approach to publicising enforcement investigations and changes to the FCA Enforcement Guide (EG). The FCA also published a related speech given by Therese Chambers, joint Executive Director of Enforcement and Market…