Callum McCarthy, FSA Chairman, said: "The Regulatory Decisions Committee is central to the FSA's decision making process. The Committee takes decisions - on enforcement, authorisation and supervision matters - that are of material significance to the firms and individuals concerned and go to the heart of their ability to engage in regulated activities.
"Tim Herrington's wide experience and his diverse legal and financial services background give him an excellent footing to take on the important role of RDC Chairman."
The RDC was established to meet the Financial Services and Markets Act (FSMA) requirement that investigation and recommendation functions are conducted separately to decision making and the issuing of statutory notices. Decisions made by the Committee include disciplinary actions, the refusal of firms' applications for authorisation and the cancellation of permission to conduct regulated activities.
The committee has 24 members who are all appointed by, and responsible to, the Board. All members are either current or recently retired practitioners or non-practitioners, who all represent the public interest.
Background
- Tim Herrington, aged 50, joined Coward Chance (now Clifford Chance) in 1976. He qualified as a solicitor in 1978 and worked in the firm's company and commercial department. He became a partner in 1985 and has since specialised in financial services and securities laws. Between 1986-1987, he was seconded to the Securities and Investments Board and assisted in drafting rules and regulations to be made under the Financial Services Act. He has also advised on the establishment of the Financial Services Ombudsman and Compensation Schemes.
- The FSA's Decision Making Manual sets out the procedures the FSA will use to reach decisions on issuing statutory notices relating to authorisation, supervision and enforcement under FSMA. All decisions are made under authority delegated by the Board. Routine case decisions are taken by FSA staff under executive procedures with a number of built-in safeguards including that the final decision will be taken by a senior staff member not directly involved in establishing the evidence. The RDC are responsible for all fundamental regulatory decisions. Decisions on whether to start or end civil or criminal proceedings are also normally taken by the Chairman of the RDC
- The appointment of the Chairman of the RDC was made by the FSA Board on the recommendation of a nominating group comprising Deirdre Hutton (FSA non-executive Deputy Chairman), Jonathan Bloomer (Chairman of the Financial Services Practitioner Panel), Ann Foster (Chairman of the Financial Services Consumer Panel) and Juliet Wheldon (HM Treasury Solicitor), as independent moderator.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.
