PART 2Amendments of Financial Services and Markets Act 2000

Performance of regulated activities

I113Prohibition orders

1

Section 56 of FSMA 2000 (performance of regulated activities: prohibition orders) is amended as follows.

2

For subsection (1) substitute—

1

The FCA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—

a

an authorised person,

b

a person who is an exempt person in relation to that activity, or

c

a person to whom, as a result of Part 20, the general prohibition does not apply in relation to that activity.

1A

The PRA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—

a

a PRA-authorised person, or

b

a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.

3

In subsection (2), for “The Authority may make an order (“a prohibition order”)” substitute “ A “prohibition order” is an order ”.

4

In subsection (3), for paragraph (b) substitute—

b

all persons falling within subsection (3A) or a particular paragraph of that subsection or all persons within a specified class of person falling within a particular paragraph of that subsection.

5

After subsection (3) insert—

3A

A person falls within this subsection if the person is—

a

an authorised person,

b

an exempt person, or

c

a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity.

6

In subsection (6), for “An authorised person” substitute “ A person falling within subsection (3A) ”.

7

In subsection (7)—

a

for “The Authority” substitute “ The regulator that has made a prohibition order ”, and

b

for “a prohibition order” substitute “ the order ”.

8

After subsection (7) insert—

7A

If—

a

the FCA proposes to vary or revoke a prohibition order, and

b

as a result of the proposed variation or revocation, an individual—

i

will no longer be prohibited from performing a function of interest to the PRA, or

ii

will be prohibited from performing such a function,

the FCA must consult the PRA before varying or revoking the order.

7B

A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—

a

a PRA-authorised person, or

b

a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.

7C

The PRA must consult the FCA before varying or revoking a prohibition order.

9

Omit subsection (8).

10

Section 57 of FSMA 2000 (prohibition orders: procedure and right to refer to Tribunal) is amended as follows.

11

In subsections (1) and (3), for “the Authority” substitute “ a regulator ”.

12

At the end insert—

6

If—

a

the FCA proposes to make a prohibition order, and

b

as a result of the proposed order, an individual will be prohibited from performing a function of interest to the PRA,

the FCA must consult the PRA before giving a warning notice under this section.

7

A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—

a

a PRA-authorised person, or

b

a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.

8

The PRA must consult the FCA before giving a warning notice under this section.