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

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

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

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

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

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

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