Attorneys have also noticed a slowdown in investigatory work by the Financial Conduct Authority, the U.K.’s financial watchdog, which has been focused on the operational resilience of the financial sector and the protective measures firms have in place.
There is a sense that the FCA is allowing companies “breathing space” during the crisis while there is “firefighting to be done” in response to the impact of the virus on financial institutions, according to Abdulali Jiwaji, a partner at boutique law firm Signature Litigation LLP.
“This has to be the focus, rather than demanding firms hand over a whole swathe of documents electronically," he said. "In the short term I think there is room for more flexibility."
“If a business is being investigated, the FCA isn’t going to gain much more credit by putting it under more pressure through heavy document requests,” Jiwaji added. “It is different from the position of parties in litigation. There is no strategic or tactical advantage to be gained by the FCA in a regulatory process.”"