FSA Must Destroy E-Mails It Used in Keydata Probe, Judge Rules
The Financial Services Authority must destroy privileged attorney-client e-mails it obtained during its investigation into collapsed investment firm Keydata Investment Services Ltd., a London judge said.
The privileged documents must be deleted or destroyed, and all references to them redacted, Judge Ian Burnett said today. Keydata and its founder Stewart Ford won a ruling in October that the regulator shouldn’t have used the e-mails.
The judge refused requests by Ford’s lawyers to have the FSA’s 2010 warning notice thrown out, and for any investigator who had seen the protected e-mails to be removed from its probe.
“I do not consider that the fact that the investigators and in-house lawyers have seen material which cannot now be used,” creates prejudice against the Ford, Burnett said.
The FSA had to suspend its four-year investigation into Keydata because of a judicial review into its conduct. Keydata administered 2.8 billion pounds ($4.42 billion) of assets when the FSA asked a court to place it into administration in 2009.
The regulator was examining whether Keydata targeted investors with potentially misleading advertisements, and potential tax irregularities.
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