On November 8, 2017, the Financial Conduct Authority announced that it has decided to prohibit former trader Tom Hayes from performing any function relating to any regulated activity in the financial services industry. The FCA stated that Mr. Hayes' conviction showed a lack of honesty and integrity on Mr. Hayes' part such that he is not a fit and proper person to perform functions relating to regulated activities.
Mr. Hayes was the first person in the world to be found guilty for LIBOR rigging. He is currently serving an 11-year sentence following his August 2015 conviction on eight counts of conspiracy to defraud in relation to his manipulation of Yen LIBOR.
The FCA's decision to ban Mr. Hayes will not take effect immediately. Mr. Hayes referred the matter to the Upper Tribunal and it has ruled that the FCA proceedings are stayed pending the decision of the Criminal Cases Review Commission on whether to refer Mr. Hayes' criminal conviction to the Court of Appeal. The Commission's decision is due in January 2018.
This is the first instance of a successful application for a stay of FCA prohibition proceedings where the individual in question has already been convicted. The Upper Tribunal's ruling permits the FCA to publish only specified sections of its Decision Notice, since Judge Timothy Herrington accepted Mr. Hayes' concerns about the risk of adverse publicityand prejudice if certain provisions of the Notice were published. The FCA has not yet published the permitted sections of the Decision Notice.
The Upper Tribunal Decision is available at:
https://assets.publishing.service.gov.uk/media/5a0325ac40f0b60b048399f8/Tom_A_W_Hayes_v_FCA.pdfand the FCA's announcement is available at: https://www.fca.org.uk/news/press-releases/fca-decides-ban-tom-hayes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
