Financial Services and Markets Act 2000 (c. 8)

[F1 PART 9C U.K. Prudential regulation of FCA investment firms

Textual Amendments

F1 Pt. 9C inserted (1.7.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 2 para. 1; S.I. 2021/671, reg. 4(b)

Control of managers etc of non-authorised parent undertakings U.K.

143R Managers of non-authorised parent undertakings U.K.

A non-authorised parent undertaking of an FCA investment firm must take reasonable care to ensure that members of its management body—

(a) are of sufficiently good repute, and

(b) possess sufficient knowledge, skills and experience to perform their duties effectively.

143S Part 9C prohibition orders U.K.

(1) Subsection (2) applies where it appears to the FCA that an individual—

(a) is not of sufficiently good repute, or

(b) does not possess sufficient knowledge, skills and experience,

to perform a function in relation to an activity carried on by a non-authorised parent undertaking of an FCA investment firm.

(2) The FCA may make an order (“a Part 9C prohibition order”) prohibiting the individual from performing the function.

(3) A Part 9C prohibition order may relate to—

(a) all functions in relation to an activity carried on by a non-authorised parent undertaking of an FCA investment firm, or

(b) a function specified in the order or of a description specified in the order.

(4) A Part 9C prohibition order may relate to—

(a) all activities of a non-authorised parent undertaking of an FCA investment firm, or

(b) an activity specified in the order or of a description specified in the order.

(5) A Part 9C prohibition order may relate to—

(a) all non-authorised parent undertakings of FCA investment firms, or

(b) an undertaking specified, or within a description specified, in the order.

(6) A non-authorised parent undertaking of an FCA investment firm must take reasonable care to ensure that none of its functions is performed by a person who is prohibited from performing that function by a Part 9C prohibition order.

143T Procedure for making a Part 9C prohibition order U.K.

(1) If the FCA proposes to make a Part 9C prohibition order it must give the individual to whom the order would apply a warning notice.

(2) The warning notice must set out the terms of the prohibition.

(3) If the FCA decides to make a Part 9C prohibition order it must give the individual to whom the order applies a decision notice.

(4) The decision notice must—

(a) name the individual to whom the Part 9C prohibition order applies, and

(b) set out the terms of the order.

(5) If the FCA decides to make a Part 9C prohibition order, the individual to whom the order applies may refer the matter to the Tribunal.

143U Varying and withdrawing a Part 9C prohibition order U.K.

(1) The FCA may vary or revoke a Part 9C prohibition order on the application of the individual named in the order.

(2) On an application for the variation or revocation of a Part 9C prohibition order—

(a) if the FCA decides to grant the application, it must give the applicant written notice of its decision,

(b) if the FCA proposes to refuse the application, it must give the applicant a warning notice, and

(c) if the FCA decides to refuse the application, it must give the applicant a decision notice.

(3) If the FCA gives the applicant a decision notice under subsection (2)(c), the applicant may refer the matter to the Tribunal.

143V Offence of breaching a Part 9C prohibition order U.K.

(1) An individual who performs a function, or agrees to perform a function, in breach of a Part 9C prohibition order commits an offence.

(2) An individual who commits an offence under this section is liable—

(a) on summary conviction in England and Wales, to a fine, and

(b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.

(3) In proceedings for an offence under this section, it is a defence for the individual to show that they took all reasonable precautions and exercised all due diligence to avoid committing the offence.]