Supreme Court victory for FCA in banker identification case

first_imgCity regulator the Financial Conduct Authority (FCA) did not wrongfully identify a JPMorgan Chase executive when it fined the bank in 2013, the Supreme Court has ruled.Giving judgment today in Financial Conduct Authority v Macris, the Supreme Court overturned the Court of Appeal’s finding that Achilles Macris’s identity had been wrongly exposed.Macris was responsible for the bank’s ‘Synthetic Credit Portfolio’, which ran up $6.2bn (£5bn) in losses in 2012. Its activities became known as the ‘London Whale’ trades, because of the magnitude of the losses.The FCA concluded that the loss was caused by, amongst other things, a high-risk trading strategy and weak management of that trading. It agreed a regulatory settlement of £137.6m with the bank.Under the Financial Services and Markets Act 2000, the imposition of penalties requires three successive notices to be given to a person or firm under investigation. Where notices contain material discreditable to identifiable individuals not party to the settlement, the act makes provision to protect these persons from unfair prejudice.Macris was not supplied with a copy of the notice or given an opportunity to make representations.Although FCA notices did not explicitly name Macris, they made references to ‘Chief Investment Office London management’. At the time, Macris was international investment chief of JP and head of the bank’s Chief Investment Office.Macris brought a claim before the Upper Tribunal, which upheld his complaint on the basis that the references would be taken by a reader with relevant experience to refer to the most senior individual involved – Macris himself.The Court of Appeal agreed. It said people who operated in Macris’s field would reasonably have been able to identify him.The FCA then appealed to the Supreme Court.In today’s ruling the court ruled in favour of the FCA with a four-to-one judgment. Lord Wilson dissented. Delivering the lead judgment Lord Sumption said the wording of the notice could have applied to more than one person at the bank.Alison Geary, counsel at international firm WilmerHale, said the judgment required a ‘balancing act’ between the need for the FCA to move forward with investigations and the rights of individuals who are the subject of investigations.‘Here the scales have been tipped firmly in favour of the FCA. Finding a definition of who is identified that provides certainty to the FCA was done at great cost to individuals, who are left without means to challenge extremely serious allegations against them,’ she said.last_img read more

Tusker go top, Sofapaka fall to Rangers

first_imgIn Kisumu, skipper Dennis Odhiambo scored from the spot to salvage a point for Thika United to draw 1-1 against Western Stima while Moses Otieno netted the winner as Posta Rangers beat Sofapaka 1-0 in the final match of the day at Kasarani Stadium.Ekaliani Ndolo and Collins Shivachi were on target to hand Tusker a slim lead at the summit on nine points, one behind Mathare while AFC leopards, who lock horns with arch rivals Gor Mahia in Sunday’s Mashemeji Derby come forth on seven points.On form Wycliffe Ochomo continued with his brilliant goal scoring run to send Muhoroni ahead after two minutes of play when he curled in a free-kick for his fourth goal of the season to take an early lead in the top scorers chart.The Brewers found their rhythm in the 20th minute with Humphrey Mieno commanding the midfield but the Muhoroni backline remained firm to deny Tusker forwards the break through.The Paul Nkata side thought they had restored parity nine minutes later when Jackson Macharia fed Ndolo, who was flagged off side despite finding the back of the net.Tusker mounted pressure five minutes to half time with Shivachi pulling a thunderous strike but Muhoroni keeper Faruk Shikalo stood tall to finger tip for a fruitless corner.The visitors showed impressive determination to recover through Ndolo’s equaliser on the stroke of half-time when the former Sofapaka midfielder benefited from a fortunate deflection that freed him down the left before cutting in to pick the par post.Muhoroni should have found themselves two up in the 71st minute but captain James Situma came to his side’s rescue when he headed away Abbas Akinyemi’s attempt.However, the host could not contain the pressure five minutes later when Shivachi directed a header past Shikalo from Danson Kago’s corner to seal the win that saw Muhoroni pick their first loss of the season.0Shares0000(Visited 1 times, 1 visits today) 0Shares0000Timonah Wanyonyi in action in the past SPL.Photo/Raymond MakhayaNAIROBI, March 5 – Tusker FC leap frogged Mathare United to move top of the SportPesa Premier League following their 2-1 win away to Muhoroni Youth on Saturday.In the early kick-off, Mathare were held to a goalless draw by visitors Kakamega Homeboyz at Kasarani stadium while Chemelil Sugar and Nairobi City Stars fired blanks to settle for a barren stalemate in Awasi.last_img read more