Lawyers have been asked what they are achieving by using ‘your skills to block an inquiry’ and ‘claiming privilege for every piece of paper’, in a speech by a Financial Conduct Authority director.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, was speaking at the City & Financial FCA Investigations and Enforcement Summit yesterday.

Chambers (pictured), used her inaugural speech as joint executive director to say that the way a firm responds to an issue is ‘an opportunity to do the right thing’ but ‘too often they do not’.  

Therese Chambers

She noted that though ‘aggressive diversionary tactics may prolong the timeline' of investigations 'they will not deflect us from our purpose’.

She said: ‘Lawyers like to see themselves as risk managers. Those defending the firms should ask themselves, what poses the greatest risk in the long term?

‘I have been in your shoes, having started in private practice around 30 years ago. You can use your skills to block an inquiry, to claim privilege for every piece of paper and generally get in our way, but what is that going to achieve?

‘Does that mean you will get your client off the hook, that we will look more sympathetically on your call for leniency for your client?

‘We follow the evidence and where there are failures, we will hold those responsible to account. Aggressive diversionary tactics may prolong the timeline, but they will not deflect us from our purpose. And the extent to which they serve your clients’ reputations and improve their regulatory outcome is interesting to consider.’