Former FSA chief "disappointed" by resignation

Monday, 21 June 2004 12:00 AM

The former chairman of the Financial Services Authority's (FSA) regulatory decisions committee has said he is disappointed at being forced to resign.

Calls for Christopher FitzGerald's resignation came after he admitted having a midnight conversation with a member of an appeals tribunal.

Terence Mowschenson QC was sitting on the Financial Services & Markets Tribunal which was hearing an appeal against a £750,000 fine imposed by the FSA.

Mr FitzGerald was ultimately responsible for imposing the original fine, and after the tribunal discovered that he and Mr Mowschenson discussed the case, the tribunal was suspended.

They decided that Mr FitzGerald had prejudiced the case.

In a statement Mr FitzGerald defended his conduct, saying: "My actions were in no way an attempt to influence the outcome of the case, but the regulatory process must be seen to be above reproach.

"For that reason, I accept that it is right for me to tender my resignation. I am naturally very disappointed."

There has been no announcement as of yet on a replacement chairman.

The two men apparently met when Mr FitzGerald noticed Mr Mowschenson walking his dog past his house at around midnight on Tuesday whereupon he went downstairs and the pair had a short conversation.

The man at the centre of the appeal case, Mr Davidson, said he would continue his appeal against the fine.

He said: "How can we have a fair hearing when both the FSA and the panel members are talking to each other?"

"It's a breach of all natural justice - I will never get a fair hearing. The FSA is so corrupt, I've been stitched up. We're going to the European courts for a fair trial. I've never been to court, never had a fair trial and these judges just kept finding against me."

The record personal fine was imposed after Mr Davidson made a £5 million bet on the shares of drug company Cyprotex- of which he owned 35 per cent. The FSA argued that the bet was designed to prop up Cyprotex's shares and encourage their sale, a charge denied by Mr Davidson.

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