Consumer Panel backs FSA's 'boiler room' appeal

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The Financial Services Consumer Panel (FSCP) has backed the FSA's bid to appeal against a decision to reduce a fine for a firm questioned over its involvement with overseas ‘boiler rooms'.

The FSCP says it too is concerned the Financial Services and Markets Tribunal took “a very literal interpretation of the rules”, adding the case could be seen as working against the FSA's move towards more principles-based regulation. The regulator has applied for permission to appeal after the Tribunal reduced a fine for Leeds-based solicitors Fox Hayes from £150,000 to £70,000, although it later increased the fine to £146,000. The firm had effectively endorsed a number of unauthorised overseas companies by approving letters they were sending to UK shareholders offering their services....

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