FSA ends ‘vendetta’ probe.

A prolonged conflict between the Financial Services Authority and a small firm has ended after the regulator agreed to drop an investigation into alleged illegal deposit taking.

The end of the investigation of Midlands firm Dobb, White & Co comes two years after it began and has been hailed as a ‘vindication’ by partners at the firm.

Partner Shinder Gangar was fined #7,000 and ordered to pay #500 costs in August for providing documents late to the regulator. He later accused the FSA of waging a ‘vendetta’ that resulted in no charges.

Gangar said lawyers fees had so far cost him #150,000 with no deposit taking charges being brought by the FSA.

He said: ‘There were no reasonable grounds to suspect contravention of the law.’

He called for procedures to create an independent body to deal with complaints against the FSA, which are currently dealt with internally.

‘Accountants should realise how they can suffer at the hands of this body,’ he added.

In its letter to Gangar, the FSA said ‘on the information currently available there is insufficient evidence to afford a realistic prospect of conviction’ and added that it had been ‘decided that, on the information currently available, the FSA’s investigation should be brought to a close.’

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