FSA on trial: Keydata's Ford claims regulator broke legal privilege

Keydata founder Stewart Ford has embarked on the first stage of his legal case against the FSA, accusing the regulator of breaching his right to legal privilege in building their case against him.

At the review's first hearing in London this morning, lawyers for Ford accused the FSA of wrongfully using legal priviledged documents obtained by Keydata adminsitrator PwC to build a case against the Keydata founder.

Information contained in the documents and emails sent and received by Ford led to the regulator issuing him with a warning notice last October.

Ford aims to use the two day judicial review to prove the FSA had no right to read the documents or use them as evidence against him.

Lawyers for the Keydata founder argued the judicial review would be pointless if in the course of proceedings the documents were revealed in open court.

The judge agreed and has banned reporting on the contents of the emails until further notice.

If Ford succeeds in this judicial review against the FSA he will then seek to have the disputed material removed from the FSA's investigation of him completely.

Outside the court Ford said he is prepared to "go all the way" in his fight against the FSA.

He said he wants to face the regulator's chief executive Hector Sants and interim managing director of the conduct business unit Margaret Cole in court.

"I want Sants and Cole to be held to account for the catastrophic actions of their junior staff," he said.

The FSA forced Keydata into administration two years ago after it had been declared insolvent because of an unpaid tax bill.

Ford (pictured) secured the judicial review earlier this year after saying he had "serious concerns" about the way the regulator had conducted its investigation into him and its "aggressive action" against Keydata.

He claims the regulator is at least partly to blame for the losses thousands of policyholders are facing.

The case continues...