A group of UK traders have failed in their attempt to stop the Financial Conduct Authority (FCA) from helping the Commodity Futures Trading Commission (CFTC) seek evidence from them. The UK Court of Appeal refused an application from the traders for judicial review.

The CFTC is investigating dealing in crude oil on a US derivatives exchange and the FCA issued notices requiring the group, all UK residents, to produce information related to the case. The UK subjects applied for judicial review of the FCA request but the application was rejected. The group appealed to the Court of Appeal, which has also rejected their application.

Supply without delay

The FCA has now arranged to ensure all material requested by the CFTC is supplied without delay.

Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA said: “The powers to seek information needed for investigations by the FCA, including where doing so is to assist a foreign regulator, are vitally important in ensuring investigations involving multiple jurisdictions are able to be conducted properly.

Abuse of legitimate remedies

“The FCA will not permit subjects of international investigations who are located in the UK to hide behind unmeritorious claims or to delay international investigations through abuse of legitimate remedies.”

Under the Financial Services & Markets Act, 2000, the FCA is able to use its investigation powers to assist foreign regulators.