Appeal bid on FSA review into Keydata case
High Court rules that regulator must destroy emails but refuses to quash warning notice issued against Keydata founder.
Lawyers for Stewart Ford, the founder of Keydata, are considering an appeal on aspects of a judicial review ruling relating to the FSA’s investigation into the failed firm.
While the high court ruled last week that the FSA must destroy privileged emails it obtained during its investigation, it rejected calls for a warning notice against Mr Ford to be quashed and for those who had seen the emails to be removed from the investigation.
The ruling was issued on Wednesday, following a hearing in February.
A statement by Withers LLP, Mr Ford’s law firm, said: “We are pleased that the court has recognised that our client’s right to legal privilege has been infringed and has ordered the FSA to take steps to rectify matters.
“The two aspects on which the court has declined to grant all the rectification our client has sought, where the law may require further clarification by the court of appeal, are: the quashing of the FSA warning notice that had relied on the legally privileged material, and the removal from the FSA investigation of those who had read or deployed the privileged material. These may be the subject of an appeal.”
A statement by the FSA said: “Our work in this area remains a priority for us, particularly given the public interest in the Keydata matter. We are considering the full terms and effect of the judgement, but we are pleased that the court has rejected Mr Ford’s proposal that the warning notices issued in October 2010 be quashed.”
The FSA has been conducting an investigation into Keydata but it was on hold pending the outcome of Mr Ford’s judicial review.