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PART 9 U.K.Enforcement

CHAPTER 2U.K.Civil penalties and notices

The FCA: disciplinary measures (procedure)U.K.

81.—(1) When determining the type of sanction, and level of any penalty, to be imposed on a person (“P”) under regulation 76, 77 or 78, the FCA must take into account all relevant circumstances, including where appropriate—

(a)the gravity and the duration of the contravention or failure;

(b)the degree of responsibility of P;

(c)the financial strength of P;

(d)the amount of profits gained or losses avoided by P;

(e)the losses for third parties caused by the contravention or failure;

(f)the level of co-operation of P with the FCA;

(g)previous contraventions or failures by P; and

(h)any potential systemic consequences of the contravention or failure.

[F1(1A) Before imposing a sanction on P under regulation 76, 77 or 78, the FCA must check whether P has any criminal convictions that may be relevant to the determination referred to in paragraph (1).]

(2) If the FCA proposes to impose a sanction on P under regulation 76, 77 or 78 it must give P a warning notice.

(3) Where the FCA proposes to impose a penalty on a PRA-authorised person or on a person who has a qualifying relationship with a PRA-authorised person, it must consult the PRA.

(4) Section 387 of FSMA (warning notices) M1 applies in relation to a notice given under paragraph (2) as it applies in relation to a warning notice given by the FCA under that Act, subject to paragraph (5).

(5) In complying with section 387(1)(a), a warning notice must—

(a)if it is about a proposal to publish a statement, set out the terms of the statement;

(b)if it is about a proposal to impose a penalty, specify the amount of the penalty;

(c)if it is about a proposal to impose a suspension, limitation or other restriction—

(i)state the period for which the suspension, limitation or restriction is to have effect,

(ii)sets out the terms of the suspension, limitation or other restriction;

(d)if it is about a proposal to cancel, state the date from which the cancellation is to have effect;

(e)if it is about a proposal to impose a prohibition on an individual, set out the terms of the proposed prohibition.

(6) If the FCA decides to impose a sanction on P under regulation 76, 77 or 78 it must without undue delay give P a decision notice.

(7) If the decision is to publish a statement, the decision notice must set out the terms of the statement.

(8) If the decision is to impose a penalty, the decision notice must specify the amount of the penalty.

(9) If the decision is to impose a suspension, limitation or other restriction, the decision notice must—

(a)state the period for which the suspension, limitation or restriction is to have effect;

(b)sets out the terms of the suspension, limitation or other restriction.

(10) If the decision is to cancel a permission, registration or authorisation, the decision notice must state the date from which the cancellation is to have effect.

(11) If the decision is to impose a prohibition on an individual, the decision notice must set out the terms of the prohibition.

(12) Section 388 of FSMA (decision notices) M2 applies in relation to a decision notice given under paragraph (6) as it applies in relation to a decision notice given by the FCA under FSMA, subject to paragraph (13).

(13) Section 388 of FSMA has effect for the purposes of paragraph (12) as if—

(a)in subsection (1)(e)(i) for “this Act” there were substituted “ regulation 93(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ”, and

(b)subsections (1A) and (2) were omitted.

Textual Amendments

Marginal Citations

M1Section 387 was amended by paragraph 26 of Schedule 9 to the Financial Services Act 2012 (c.21), paragraph 12 of Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c.33).

M2Section 388 was amended (and subsection (1A) inserted) by paragraph 27 of Schedule 9 to the Financial Services Act 2012 and paragraph 13 of Schedule 3 to the Financial Services (Banking Reform) Act 2013.