1. Policy Dialogue on Corporate Governance in China
Regulatory Enforcement, the UK Experience
Daniel Thornton
Law Policy & International Co-operation
Enforcement Division
Financial Services Authority

2. Accountability of the FSA
Statutory immunity
Board appointed by HM Treasury
Non executive directors
Statutory consultation on rules and policy
Practitioner and consumer panels
Treasury Select Committee in Parliament
Complaints Commissioner

3. Decision making process for enforcement cases
Staff decision to impose sanction
RDC decides whether to issue warning notice
Firm/individual makes representations to RDC
RDC decides whether to issue decision notice
Firm/individual may refer to Tribunal
Tribunal decision may be appealed to the courts on point of law

4. Division of responsibility with Exchanges and other regulatory bodies
8 Recognised exchanges
Commercial as well as regulatory functions
Market abuse: FSA powers against any person
Exchanges' powers against members only
Operating arrangements with Exchanges
FSA is UK Listing Authority
FSA Enforcement experience with breaches of the Listing Rules

5. Other regulatory bodies
DTI: directors disqualification
FRRP: breach of Companies Act accounting requirements
SFO: investigate and prosecute serious fraud
Police
Overseas regulators

6. Effective sanctions and incentives
For regulated firms, obligation to co-operate and self-report
Importance of co-operation in the disciplinary process
The role of publicity
Settlement

7. END