The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018

Penalties for conduct for which the Regulator has not given notice of proposed penalty

51.—(1) This article applies where—

(a) the FCA is satisfied that, after 28th December 2014 but before 1st April 2019, a relevant person (“A”)—

(i) failed to comply with any of the conditions of authorisation referred to in regulation 12(5)(a), (b), (d) or (i)(1) of the 2006 Regulations;

(ii) failed to comply with a notice in writing given by the Regulator under regulation 36 of the 2006 Regulations; or

(iii) in relation to a warrant issued under regulation 40 of the 2006 Regulations (issue of warrants generally)(2), obstructed an attempt to—

(aa) enter and search premises in accordance with the warrant;

(bb) take possession of written or electronic records in accordance with an authorisation under paragraph (4) of that regulation; or

(cc) take copies of written or electronic records in accordance with regulation 43(3) of the 2006 Regulations (copying of documents); and

(b) on 1st April 2019, the Regulator has not given written notice to A under regulation 51(4) of the 2006 Regulations (notice of proposed penalty and written submissions) that the Regulator proposed to impose a penalty on A for the failure or the obstruction concerned (“the relevant default”).

(2) For the purposes of the following sections of the 2000 Act, the relevant default is to be treated as a contravention of a relevant requirement (within the meaning given by section 204A(2) of that Act)—

(a) section 206 (financial penalties);

(b) section 206A (suspending permission to carry on regulated activities etc);

(c) section 208 (decision notice).

(3) For the purposes of paragraph (2), sections 206 and 208 of the 2000 Act are to be read as if a reference to an authorised person included a person who was, at any time before 1st April 2019, a 2006 Act authorised person.

(4) In determining what, if any, financial penalty to impose on A, the FCA must have regard to—

(a) any penalty or fine that has been imposed on A for the relevant default by another body;

(b) any other steps that the Regulator or the FCA has taken, or that the FCA might take, in relation to the relevant default;

(c) the nature and seriousness of the relevant default; and

(d) the relevant turnover (within the meaning given by regulation 50(5)) of A’s business.

(5) A financial penalty imposed by the FCA for the relevant default—

(a) where the relevant turnover of A’s business is less than £500,000, may not exceed £100,000;

(b) where the relevant turnover of A’s business is £500,000 or more, may not exceed an amount equal to 20 per cent of that turnover.

(1)

Regulation 12(5) was amended by S.I. 2015/42.

(2)

Regulation 40 was amended by S.I. 2008/1441.

(3)

Regulation 42 was amended by S.I. 2008/1441.

(4)

Regulation 51 was amended by S.I. 2008/1441.

(5)

Regulation 50 was amended by S.I. 2014/3239.