(1)A person (“S”) commits an offence if—
(a)at a time when S is a senior manager in relation to a financial institution (“F”), S—
(i)takes, or agrees to the taking of, a decision by or on behalf of F as to the way in which the business of a group institution is to be carried on, or
(ii)fails to take steps that S could take to prevent such a decision being taken,
(b)at the time of the decision, S is aware of a risk that the implementation of the decision may cause the failure of the group institution,
(c)in all the circumstances, S's conduct in relation to the taking of the decision falls far below what could reasonably be expected of a person in S's position, and
(d)the implementation of the decision causes the failure of the group institution.
(2)A “group institution”, in relation to a financial institution (“F”), means F or any other financial institution that is a member of F's group for the purpose of FSMA 2000 (see section 421 of that Act).
(3)Subsections (1) and (2) are to be read with the interpretative provisions in section 37.
(4)A person guilty of an offence under this section is liable—
(a)on summary conviction—
(i)in England and Wales, to imprisonment for a term not exceeding [F1the general limit in a magistrates’ court] (or 6 months, if the offence was committed before [F22 May 2022]) or a fine, or both;
(ii)in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;
(iii)in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;
(b)on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.
Textual Amendments
F1Words in s. 36(4)(a)(i) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(1), Sch. Pt. 1 table
F2Words in s. 36(4)(a)(i) substituted (28.4.2022) by The Criminal Justice Act 2003 (Commencement No. 33) and Sentencing Act 2020 (Commencement No. 2) Regulations 2022 (S.I. 2022/500), regs. 1(2), 5(1), Sch. Pt. 1
Commencement Information
I1S. 36 in force at 7.3.2016 by S.I. 2015/490, art. 2(1)(c) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))