Subjects will need to prepare media strategies and statements and prepare for the fact that the publication of the warning notice could also cause increased litigation risk on the basis of the allegations. The FCA knows this, and uses this power as a negotiating tool to encourage early settlement.
Conclusion
FCA warning notices are an important element of the FCA's enforcement toolkit. They serve as formal communications of impending regulatory action, providing subjects with an opportunity to respond and defend their position.
It is important that the subject of an FCA investigation engage with the FCA at an earlier stage than when the notice has been issued.
Navigating, complying, and understanding the implications of the increasingly intensified regulatory landscape with diligence is crucial for any firm or individuals operating in the financial sector.
A warning notice is a major stage of regulatory enforcement, its significance cannot be underestimated.
Edward Craft is a partner and Enea Aniaj is a trainee solicitor at Wedlake Bell
