What to do in the first hour of a Competition Dawn Raid Checklist & Guidelines

Similar documents
The Dawn Raid Manual Lawyers 92 Firms 60 Countries

RoSPA Scotland Conference Dealing with a serious incident in the workplace

Failure to prevent the facilitation of tax evasion:

Failure to prevent the facilitation of tax evasion: Our solution to help you avoid committing the new offence

Insolvency what the in-house lawyer needs to know. Nick Pike Partner, Restructuring Group

The UK's new competition regime

EU Market Abuse Regulation and asset managers six months to go

The Most Innovative Law Firm in Europe. Shale Gas Toolkit. Managing Protest Action Part 4

Firm Registration Form

TERMS OF BUSINESS 1. INTRODUCTION AND DEFINITIONS

Failure to prevent the facilitation of tax evasion. Jason Collins & Tori Magill

GENERAL REQUIREMENTS MODULE

L 145/30 Official Journal of the European Union

Irish Statute Book. Insurance Act, Quick Search Search for word(s) / phrase in Title of Act or Statutory Instrument

EMIS GROUP PLC SHARE DEALING CODE

Commercial legal expenses insurance

Corporate. Burges Salmon Guide to the responsibilities and duties of a company director

Data Protection Cayman Islands

Technical factsheet Matters of material significance reportable to charity regulators

DISTRIBUTION PLAN EXPLANATORY STATEMENT THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

Merseytravel Anti Money Laundering Policy and Procedures (DCD/49/12) Report of the Director of Corporate Development

Mortgage Conditions 2007

Cases where Contract Disclosure Facilities (COP 9) are not used COP8

Continuous Disclosure Policy ASX Listing Rule Introduction. 2. Continuous Disclosure Policy. 2.1 The Policy

Fraud, Bribery and Corruption Control Policy

Terms of business for authorised intermediaries

Thruvision Group plc

ADAPT AIM ISA PORTFOLIOS APPLICATION FORM FOR ADVISED SUBSCRIPTIONS

Freedom of Information Act Policy

Corporate offences of failure to prevent the facilitation of tax evasion time to act!

Stadium Group plc (a public limited company incorporated in England and Wales with registered number )

TERMS OF BUSINESS. of Murray Beith Murray, Solicitors

Firm Registration Form - Equity Release and Mortgage products

18 December This document

Customer information. About your mortgage. precisemortgages-customers.co.uk

Continuous Disclosure Policy

PAINTING AND DECORATING ASSOCIATION POLICY SUMMARY Commercial Legal Expenses Insurance

Anti-Money Laundering Measures in the British Virgin Islands

(All rights reserved)

Insurance Fraud Enforcement Department. Referral guide

ADMINISTRATIVE SUPPORT TO THE JUDICIARY IN THE UK INSOLVENCY SYSTEM

GUIDANCE NOTE GN0001/04 KNOW YOUR CLIENT: SECTION 9

Continuous Disclosure Policy

We have over 20 years experience of helping people just like you. We are the only small business debt advice charity operating in the UK.

U.K. Bribery Act Implications for Companies Doing Business in the United Kingdom. Wednesday, 28 July 2010

Joint liquidators progress report from 31 July 2017 to 30 July Cobbetts LLP (in creditors voluntary liquidation)

Second Charge Loan Application Submission Form

MJ GLEESON PLC Company No:

Commercial legal expenses insurance

Complying with the Personal Data (Privacy) Ordinance (Cap. 486) in the insurance industry

Short Term Lending Customer information

Pinsent Masons in the UAE

Employee Misconduct: A Practical Approach to Conducting Internal Investigations with Criminal and Regulatory Aspects

Guidance for ADR Applicants - updated CAP 1324

GUIDELINES FOR THE CONTRACTING OUT OF RESEARCH ACTIVITIES

Share trading policy. Clean TeQ Holdings Limited ACN (Company)

THAILAND S TRADE COMPETITION ACT

Motor Legal Protection Insurance Policy

Mobile Insurance from ø Accidental Loss and Theft Cover. What you need to know

OPERATING GUIDELINES BETWEEN THE FINANCIAL CONDUCT AUTHORITY AND THE PANEL ON TAKEOVERS AND MERGERS ON MARKET MISCONDUCT

2007 Money Laundering Prevention No.2 SAMOA

Whistleblowers Protection Act 2001 Policy and Procedures ABN

Establishing a business presence in the UK. lewissilkin.com

BASC Legal protection insurance

Need to make a claim? Motor Legal Protection Cover

FRAUD & THEFT POLICY & RESPONSE PLAN

GLOBAL DATA PROTECTION POLICY URUP

DATED July 2017 ALTUS STRATEGIES PLC AIM COMPLIANCE CODE

Pinsent Masons in Spain

PENNANT INTERNATIONAL GROUP PLC AIM RULES COMPLIANCE POLICY

Management liability choice summary of cover

This guide applies only to England & Wales. There are different procedures in Scotland and Northern Ireland.

COMMENTARY JONES DAY. The main changes are: Amended content and timing requirements for financial reports. More detailed obligations on communicating

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the "Regulations")

DRAFT. Guideline on the Keeping of Significant Controllers Register [ 2018]

Money Laundering and the Proceeds of Crime

ORDER FORM RESIDENTIAL

Terms and Conditions of Business for the supply of Contract/Temporary Staff

Working with the Health and Safety Regulator

CLIENT AGREEMENT. For Your benefit and protection please read this Agreement carefully and ask for clairfication if You do not understand anything.

Financial Regulation: An overview of the FCA s proposal of the new Consumer Credit regime October 2013

Bridging Loans Additional guarantor form

School Visits and Tours Including Package Tours

Dealing with concerns about charities. Guidance on how the Charity Commission for Northern Ireland deals with concerns about charities

EQUAL ACCESS FUNDING PTY LTD PRIVACY POLICY

COMMON MISTAKES IN DIRECTOR DISQUALIFICATION CLAIMS

The One account Flexible mortgage option conditions. January 2003 edition [version 2]

National Assembly for Wales Governance and Audit. Whistleblowing Policy

Appointed representative or tied agent - change details

Revenue Information Powers Introduction

Global Anti-Trust Policy

Solomon Islands. UNCTAD Compendium of Investment Laws. The Foreign Investment Bill 2005 (2006)

Notice of Privacy Policies

Disclosure policy. Disclosure policy. Yancoal Australia Limited ACN

ANTI-BRIBERY POLICY AND ANTI-FRAUD POLICY AND RESPONSE PLAN

Hot topics in international employment law - Belgium

Our ref COMM LIT/OPEN/-1/TIHA OH ZO'I5 Your ref

FAILURE TO PREVENT THE FACILITATION OF TAX EVASION. Criminal Finances Act 2017 Simon Airey

Prospectus Liability Insurance

If your DAS policy attaches to another insurance policy, please put the number of that policy here:

Transcription:

What to do in the first hour of a Competition Dawn Raid Checklist & Guidelines Checklist Action Point The Officials arrive They introduce themselves and ask to see either a particular person or the most senior company executive on the premises. [see Guidelines section 1] Holding the ring until help arrives [see Guidelines section 2] Organising the internal team [see Guidelines section 3] [see Guidelines sections 7 to 9] Internal communications [see Guidelines section 4] Arrange for the most senior company executive and, if relevant, the most senior lawyer on-site to meet the officials Move the officials into a meeting room that does not contain any files or access to the company s IT system Explain that someone will be down to meet them shortly. In the meantime, take three copies of their inspection mandate and get contact details of the official in charge If you have external competition lawyers on stand-by, then call them and ask them to attend immediately If you have no such existing arrangements, then please call: Guy Lougher: +44 (0)20 7490 6102 Alan Davis: +44 (0)20 7418 7026 Giles Warrington: +44 (0)121 260 4037 Give the external lawyers details of which authority the officials are from, how many officials there are and email/fax to the lawyers a copy of the officials inspection mandate Check with the external lawyers the nature of the investigation: is it by an EU or UK competition authority; is it civil or criminal, do the officials have a search warrant? Obtain from the external lawyers an indication of when they are likely to arrive. The company s senior executive and/or in-house lawyer should check the investigation mandate to see whether the officials are authorised to conduct the investigation Try to persuade the officials to delay starting their investigation until external lawyers arrive Emphasise the company s intention to cooperate Try to establish from the officials whether they are also conducting investigations at any of the company s other sites or at the homes of any company employees. If they are, then arrange comparable support for each of those other locations. Gather and base in a room away from the officials a team comprising the following: --a senior member of the IT staff --a senior employee to act as coordinator --enough employees to act as a shadow for each official The internal team should read the parts of the Guidelines dealing with the officials rights to search, read documents and ask questions Circulate mobile telephone numbers for the internal team, external lawyers and the lead official. Send an internal email, announcing: the investigation is taking place the company s intention to cooperate that there must be no deletion, destruction or concealment of documents or data that third parties must not be told of the investigation. Done? Continued on next page >

Action Point External communications [see Guidelines section 5 External lawyers arrive [see Guidelines section 6] What powers of search do the officials have? [see Guidelines section 7] What documents can the officials read? [see Guidelines section 8] What questions can the officials ask? [see Guidelines section 9] Monitor websites of the company s main competitors, the stock exchange and the authority from which the officials are drawn for any announcements relating to the investigation Prepare in case it is needed a low-key press announcement reporting the fact of the investigation Consider whether a stock exchange announcement is needed External lawyers to check the officials documentation and the investigation mandate Try to persuade the officials to allow the external lawyers and internal team to hold a brief meeting to discuss the company s duties and how the investigation will be monitored Nominate a person from the company and the external lawyers who will handle disputes with the officials. Confirm with the external lawyers whether: --the officials have the power to search --it is a civil or criminal raid --it is a raid by the European Commission or by a UK competition authority. Circulate amongst the external lawyers and in-house team a list of the names of external and the company s in-house lawyers who may have sent or received documents that might be seen by the officials Identify where legally privileged documents are kept and whether they are likely to be clearly marked. Confirm with the external lawyers what type of investigation it is and the powers that the officials have Identify who from the company will be the preferred contact point for questions. Done? Guidelines 1. The Officials arrive Officials from the Competition & Markets Authority (the CMA ) or European Commission (the Commission ) arrive at Reception or, if relevant, at the company s gatehouse. They will present their investigation mandate and ask either immediately to meet a particular named person or the most senior company official on the premises Call that individual and ask them to attend immediately. If they are not contactable, then keep on calling until you find the most senior executive on site and ask them to attend immediately If relevant, ask the company s most senior in-house lawyer to attend immediately Try to move the officials out of Reception into a meeting room that does not contain any files or access to the company s IT system. Explain that the company is intending to cooperate fully. Organise tea and coffee for the officials! Take the contact details (including mobile phone number) of the official in charge Take three copies of the officials investigation mandate. One copy is for the senior company executive, one is for the inhouse lawyer or a member of the internal team, the third copy is for the company s external lawyers If you have external lawyers on standby in case of a dawn raid, then call your named contacts and ask them to attend immediately. Give them details of where the officials are from, how many officials there are and send them by email or fax a copy of the officials investigation mandate. Ask the lawyers for an indication of when they are likely to arrive and exchange mobile telephone numbers. 2. Holding the ring until help arrives The company s senior executive and/or in-house lawyer should read the officials investigation mandate and check to see whether the officials are authorised to conduct the investigation. In particular: --does the mandate apply to your company with the correct address and date? --does each official have identification? Take copies of the dentification 2

Pinsent Masons Update The company s senior executive and/or in-house lawyer should check the mandate for the subject matter and scope of the investigation? In particular check: --which authority is undertaking the investigation (CMA, the Commission, a sector regulator, or the Serious Fraud Office)? --is it a civil or a criminal investigation? --do the officials have a court warrant allowing them to search the company s premises? --do you understand from the scope of the investigation which documents are relevant and where and with whom they are located? --if there are any discrepancies, then inform the company s lawyers immediately --try to establish whether officials are also conducting investigations at any of the company s other sites or at the homes of any of the company s employees --if a UK raid under the Competition Act 1998 ( CA98 ), try to establish if the officials intend to use their powers to interview individuals under s26a CA98. If so, advise the external lawyers immediately and consider calling in lawyers to separately represent just the individuals, in order to avoid potential conflicts of interest. The company s primary lawyers will be able to recommend suitable firms if these have not already been identified If the company has no in-house lawyers already on site: --the officials will normally wait for a reasonable period (often around 30 minutes) for external lawyers to arrive before starting their investigation if they are satisfied that the company is cooperating --if external lawyers have already been asked to attend, explain this to the officials, give an estimate of their likely time of arrival and ask the officials to delay starting their investigation until the external lawyers arrive. Emphasise the company s intention to cooperate --if you have not already done so, ask external lawyers to attend immediately, and follow the actions above --the officials may demand that certain offices are locked or occupied, or files set aside until the investigation commences. It is advisable to agree to such a request if the officials have agreed to delay starting their investigation until external lawyers arrive If the officials learn that the company already has an in-house lawyer on site: --the officials may well decide to start their investigation immediately. You can ask them to delay until external lawyers arrive, but the officials may well decline to delay. It is advisable not to intervene further --if the investigation starts immediately, then contact the external lawyers and ask them for guidance If it is a criminal investigation, the officials are likely to start their investigation immediately. 3. Organising the internal team Organise and quickly brief an internal team to assist during the investigation. In particular, you will need to gather: --a senior member of the IT staff who can explain the company s IT system, deal with any IT problems and assist officials in relation to locating and examining emails and computer records --a senior employee to co-ordinate information and liaise with the officials --employees to shadow the officials (where possible, one employee to each official) to ensure that the officials are complying with their responsibilities --a senior executive who can take decisions on behalf of the company Advise your internal team on how to shadow the officials. In particular, they should know what documents the officials can read (see section 8 below) and what questions they can ask (see section 9 below) Ensure that the internal team (and the external lawyers when they arrive) are based in a room away from the officials Circulate mobile telephone numbers for your internal team, the external lawyers and the lead official. 4. Internal communications In conjunction with the company s lawyers, send an email to all the company s employees on-site, informing them of the officials presence and of the company s intention to cooperate This email should advise employees of any restrictions placed on the company by the officials (e.g. in relation to use of communications, etc.) This email should inform employees that: --they should be professional and courteous in their dealings with the officials --they should not, without obtaining the prior consent of the company s executive or lawyers in charge of handling the investigation, volunteer information or documents to the officials they must not delete, destroy or conceal any documentation or data, whether in hard or soft copy format, that might relate to the subject matter of the investigation --any routine document destruction policy of the company is suspended immediately until further notice --they should not advise any third party (including staff located at the premises of other companies) of the investigation --any breach of these requirements could be a criminal offence and may be a serious disciplinary offence. 3

5. External communications The company should NOT discuss the investigation or even mention that an investigation is underway: --with any of its competitors --with any third party, including customers, without obtaining the prior consent of the company s executive or lawyers in charge of handling the investigation The company should monitor the websites of its main competitors (including the regulatory news service of stock exchanges on which they are listed) and the authority conducting the investigation to see if they make any public announcements relating to the officials investigation If the company is listed it should consider, if necessary in conjunction with its brokers, whether it needs to make a stock exchange announcement to the effect that an investigation is underway The company should prepare a low-key press release in case it is needed. The announcement should merely confirm that an investigation is underway and that the company is cooperating with the officials. 6. External lawyers arrive Ask the external lawyers to read and check the officials investigation mandate and confirm whether the officials are authorised to conduct the investigation Try to persuade the officials to delay starting the investigation until after a brief discussion between the company and the external lawyers: --to explain the extent of the company s duty to cooperate --to agree with the external lawyers by whom and how the officials activities will be monitored The officials may well decline to wait further. Whilst the investigation is proceeding, the company and its external advisers should try to ascertain the scope and nature of the investigation, and what knowledge the officials already appear to possess and whether there may have been a prior leniency application by a third party Nominate a person from the company and the external lawyers who will handle any disagreements with the officials. 7. What powers of search do the officials have? If the officials do have a search warrant (or if they have a formal decision in the case of a Commission investigation): --they will have the legal power to conduct a search in relation to the investigation --they can search the premises, files, documents, the IT system, briefcases and handbags and may also search any car on the premises 4

Pinsent Masons Update If the officials do not have a search warrant (or if they have a written authorisation rather than a formal decision in the case of a Commission investigation): --they do not have the above powers to conduct a search in relation to the investigation --but they can require files and documents to be produced for the officials to review The officials have the right to take photocopies or soft copies of documents or files that they are entitled to read and may, in some cases, even have the right to remove the originals of documents or files. 8. What documents can the officials read? The officials can read documents that are within the scope of the investigation as described in the investigation mandate The officials are not entitled to read documents that are covered by legal privilege. What this means in practice depends on the nature of the investigation EU investigation: If the investigation is being conducted by the Commission the officials: --can read any written correspondence between the company and its internal lawyers, except for certain types of preparatory documents created exclusively for the purpose of seeking legal advice from a lawyer in the exercise of the rights of defence --cannot read any written correspondence between the company and its external lawyers which has been created for the purpose of the company s right of defence UK investigation: If the investigation is being conducted by the CMA, a UK sector regulator or the Serious Fraud Office the officials: --cannot read any written correspondence between the company and its internal lawyers --cannot read any written correspondence between the company and its external lawyers which has been created for the purpose of the company s right of defence Circulate amongst the external lawyers and in-house team a list of the names of external and the company s in-house lawyers who may have sent or received documents that might be seen by the officials Take a detailed record of all documents copied (or taken). Where electronic copies are taken, a detailed record should be made and an additional copy should be made for the company to retain If there is any doubt regarding whether a document or file is legally privileged or relevant to the investigation, ask for the document to be put in an envelope or the email flagged for later consideration with the company s lawyers. 9. What questions can the officials ask? EU investigation: If the investigation is being conducted by the Commission the officials: --can generally ask any company employee for an explanation of a document that the official is entitled to read --can ask where a document or file may be found --can generally ask any company employee for an explanation of facts relating to the scope of the investigation --cannot ask a question if the answer to it might lead to the company incriminating itself UK civil investigation: If the investigation is being conducted by the CMA or a UK sector regulator the officials: --can generally ask any company employee for an explanation of a document that the official is entitled to read --can ask where a document or file may be found --cannot ask any company employee for an explanation of facts relating to the scope of the investigation unless pursuant to a formal notice under s26a CA98 --cannot ask a question if the answer to it might lead to the company incriminating itself UK criminal investigation: If the investigation is being conducted by the CMA, a UK sector regulator or the Serious Fraud Office the officials: --can generally ask any company employee for an explanation of a document that the official is entitled to read --can ask where a document or file may be found --may, depending on the type of interview, be able to require any company employee to provide an explanation of facts relating to the scope of the investigation --may, depending on the type of interview, be able to ask any company employee to answer a question even if to do so might lead to the company being incriminated If the officials ask questions: --the company should try to direct the question to a designated senior employee for an answer (other than straightforward questions relating to the location of documents/password to email accounts, etc.) --the person answering on behalf of the company should reply concisely, limit their reply to what they know and should not speculate --the person answering on behalf of the company should ensure that their response is not false or misleading (as otherwise, that might be a criminal offence and/or expose the company and the individual to the risk of fines) --a note should be taken of any questions and answers --if the question is vague or complicated, say so and seek clarification --if a reply to the question may be self-incriminating, the company should consult its lawyers before replying 5

If possible, it is usually preferable for any questions from the officials about documents or facts to be addressed later in writing on behalf of the company, rather than being addressed orally during the investigation. Providing a written answer allows the company to ascertain more precisely the relevant facts and ensure that any answer given is accurate and reduces the risk of any reply being misunderstood by the officials. 10. Do you have to cooperate? If the officials are obstructed when they are trying to exercise their legal powers that may be an imprisonable criminal offence for individuals and also lead to the company and/or individuals being fined. If you are subject to a dawn raid by the EU/UK competition authorities or would like to speak to us about EU/UK competition law compliance generally, then please contact the s below: Alan Davis T: +44 (0)20 7418 7026 M: +44 (0)7803 014425 E: alan.davis@pinsentmasons.com Guy Lougher T: +44 (0)20 7490 6102 M: +44 (0)7825 160146 E: guy.lougher@pinsentmasons.com Giles Warrington T: +44 (0)121 260 4037 M: +44 (0)7717 488468 E: giles.warrington@pinsentmasons.com Michael Reich T: +49 (0)89 203043 570 M: +44 (0)174 233 85 33 E: michael.reich@pinsentmasons.com Ben Lasserson T: +44 (0)20 7490 6907 M: +44 (0)7468 710901 E: ben.lasserson@pinsentmasons.com Angelique Bret London T: +44 (0)20 7418 8218 M: +44 (0)7733 307377 E: angelique.bret@pinsentmasons.com 6

Notes

This note does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered. Pinsent Masons LLP is a limited liability partnership, registered in England and Wales (registered number: OC333653) authorised and regulated by the Solicitors Regulation Authority and the appropriate jurisdictions in which it operates. The word partner, used in relation to the LLP, refers to a member or an employee or consultant of the LLP, or any firm or equivalent standing. A list of the members of the LLP, and of those non-members who are designated as partners, is available for inspection at our registered office: 30 Crown Place, London, EC2A 4ES, United Kingdom. Pinsent Masons 2017. For a full list of the jurisdictions where we operate, see www.pinsentmasons.com