As reported earlier the FSA has brought its second prosecution pursuant to section 191(3) of the Financial Services and Markets Act 2000 for a change of control offence. Semperian PPP Investment Partners Limited Partnership, a private equity fund, acquired an authorised firm before receiving the necessary approval from the FSA – although it notified the FSA in mid-December 2008 that it proposed to acquire the authorised firm, it failed to wait for FSA approval before completing the deal three weeks later.

The transaction was retrospectively endorsed by the FSA, but the FSA proceeded with the prosecution to send a message to the market reminding companies of their obligations to obtain FSA approval prior to completing transactions that involve a change of control of a regulated business.

The firm pleaded guilty at the earliest opportunity and there was no adverse impact on consumers, therefore, a modest fine of £1,000 was imposed.

A copy of the FSA’s press release is available. http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/030.shtml