C22C33C34 Part XIV Disciplinary Measures

Annotations:
Modifications etc. (not altering text)
C22

Pt. XIV (ss. 205-211) applied (1.12.2001) by 1951 c. 65, s. 57(5) (as substituted (1.12.2001) by S.I. 2001/3647, art. 5, Sch. 3 Pt. I para. 5(3))

C33

Pt. 14 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services Act 2012 (Consumer Credit) Order 2013 (S.I. 2013/1882), arts. 1(1), 3(7)

C34

Pt. 14 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 12(10)

C25C41C46204AF15Meaning of “relevant requirement” and “appropriate regulator”

1

The following definitions apply for the purposes of this Part.

2

“Relevant requirement” means a requirement imposed—

a

by or under this Act, F47...

b

by a qualifying EU provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order F48, F52...

c

by the Alternative Investment Fund Managers Regulations 2013F51, or

d

by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.

3

The PRA is “the appropriate regulator” in the case of a contravention of—

a

a requirement that is imposed under any provision of this Act by the PRA;

b

a requirement under section 56(6) where the authorised person concerned is a PRA-authorised person and the prohibition order concerned is made by the PRA;

F49c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F50d

a requirement under section 62A(2) where F55the revised statement of responsibilities is to be provided to the PRA only;

e

a requirement under section 64B(2) or (5) where the conduct rules concerned are made by the PRA;

f

a requirement under section 64C(1) to notify the PRA that disciplinary action has been taken.

F573A

Either the PRA or the FCA is “the appropriate regulator” in the case of a contravention of—

a

a requirement under section 59(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

b

a requirement under section 60A(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

F56ba

a requirement under section 62A(2) where the revised statement of responsibilities is to be provided to the FCA and the PRA;

c

a requirement under section 63(2A) where the approval concerned is within section 63(1A)(a);

d

a requirement under section 63E(1) where the authorised person concerned is a PRA-authorised person and the function concerned is of a description specified in rules made by the PRA;

e

a requirement under section 63F(1), (2), (4), (6) or (7) where the authorised person concerned is a PRA-authorised person and the certificate concerned relates to a function of a description specified in rules made by the PRA.

4

In the case of a contravention of a requirement that is imposed by a qualifying EU provision, “the appropriate regulator” for the purpose of any provision of this Part is whichever of the PRA or the FCA (or both) is specified by the Treasury by order in relation to the qualifying EU provision for the purposes of that provision of this Part.

5

In the case of a contravention of a requirement where the contravention constitutes an offence, the “appropriate regulator” is whichever of the PRA or the FCA has power to prosecute the offence (see section 401).

F536

The FCA is “the appropriate regulator” in the case of a contravention of any other requirement imposed—

a

by or under this Act;

b

by the Alternative Investment Fund Managers Regulations 2013; or

c

by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.

7

The Treasury may by order amend the provisions defining “the appropriate regulator”.

C1C2C30C41C47205 Public censure.

If the F33appropriate regulator considers that an authorised person has contravened F34a relevant requirement imposed on the person, it may publish a statement to that effect.

C3C4C31C41C48206 Financial penalties.

1

If the F35 appropriate regulator considers that an authorised person has contravened F36a relevant requirement imposed on the person, it may impose on him a penalty, in respect of the contravention, of such amount as it considers appropriate.

2

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

A penalty under this section is payable to the F37regulator that imposed the penalty.

C41F14206A Suspending permission to carry on regulated activities etc

1

If the F41appropriate regulator considers that an authorised person has contravened a relevant requirement imposed on the person, it may—

a

suspend, for such period as it considers appropriate, any permission which the person has to carry on a regulated activity; or

b

impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of a regulated activity by the person as it considers appropriate.

F381A

The power conferred by subsection (1) is also exercisable by the FCA if it considers that an authorised person has contravened a requirement imposed on the person by—

a

the Payment Services Regulations 2009, or

b

the Electronic Money Regulations 2011.

F541B

The power conferred by subsection (1) may not be exercised in relation to a contravention of a requirement imposed under section 122A, 122B, 122C, 122G, 122H, 122I, F58122IA, 123A or 123B.

2

In subsection (1)—

  • “ permission ” means any permission that the authorised person has, whether given (or treated as given) by F39the FCA or the PRA or conferred by any provision of this Act;

  • F40...

3

The period for which a suspension or restriction is to have effect may not exceed 12 months.

4

A suspension may relate only to the carrying on of an activity in specified circumstances.

5

A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.

6

The F42appropriate regulator may—

a

withdraw a suspension or restriction; or

b

vary a suspension or restriction so as to reduce the period for which it has effect or otherwise to limit its effect.

7

The power under this section may (but need not) be exercised so as to have effect in relation to all the regulated activities that the person concerned carries on.

8

Any one or more of the powers under—

a

subsection (1)(a) and (b) of this section, and

b

sections 205 and 206,

may be exercised in relation to the same contravention.

C5C6C32C41C49207 Proposal to take disciplinary measures.

1

If F43a regulator proposes—

a

to publish a statement in respect of an authorised person (under section 205), F2. . .

b

to impose a penalty on an authorised person (under section 206), F3 or

c

to suspend a permission of an authorised person or impose a restriction in relation to the carrying on of a regulated activity by an authorised person (under section 206A),

it must give the authorised person a warning notice.

2

A warning notice about a proposal to publish a statement must set out the terms of the statement.

3

A warning notice about a proposal to impose a penalty, must state the amount of the penalty.

F44

A warning notice about a proposal to suspend a permission or impose a restriction must state the period for which the suspension or restriction is to have effect.

C7C8C32C41C49208 Decision notice.

1

If F44a regulator decides—

C9a

to publish a statement under section 205 (whether or not in the terms proposed), F5. . .

C9b

to impose a penalty under section 206 (whether or not of the amount proposed), F6 or

c

to suspend a permission or impose a restriction under section 206A (whether or not in the manner proposed),

it must without delay give the authorised person concerned a decision notice.

2

In the case of a statement, the decision notice must set out the terms of the statement.

3

In the case of a penalty, the decision notice must state the amount of the penalty.

F73A

In the case of a suspension or restriction, the decision notice must state the period for which the suspension or restriction is to have effect.

C364

If F45a regulator decides to—

a

publish a statement in respect of an authorised person under section 205, F8. . .

b

impose a penalty on an authorised person under section 206, F9 or

c

suspend a permission of an authorised person, or impose a restriction in relation to the carrying on of a regulated activity by an authorised person, under section 206A,

the authorised person may refer the matter to the Tribunal.

C10C32C41C49209 Publication.

After a statement under section 205 is published, F46the regulator concerned must send a copy of it to the authorised person and to any person on whom a copy of the decision notice was given under section 393(4).

C11C12C13C14C15C23C26C28C32C33C34C35C37C39C49C44C42C50C52C54210 Statements of policy.

1

F16Each regulator must prepare and issue a statement of its policy with respect to—

F10a

the imposition of penalties, suspensions or restrictions under this Part;

b

the amount of penalties under this Part; and

c

the period for which suspensions or restrictions under this Part are to have effect.

F171A

Each regulator's policy with respect to the imposition of penalties, suspensions or restrictions under this Part must include policy with respect to their imposition in relation to conduct which constitutes or may constitute an offence by virtue of section 23(1A) (authorised persons carrying on credit-related regulated activities otherwise than in accordance with permission).

2

F18A regulator's policy in determining what the amount of a penalty should be F11, or what the period for which a suspension or restriction is to have effect should be, must include having regard to—

a

the seriousness of the contravention in question in relation to the nature of the requirement contravened;

b

the extent to which that contravention was deliberate or reckless; and

c

whether F12the person against whom action is to be taken is an individual.

3

F19A regulator may at any time alter or replace a statement issued F20by it under this section.

4

If a statement issued under this section is altered or F21replaced by a regulator, the regulator must issue the altered or replacement statement.

5

F22A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.

6

A statement issued under this section F23by a regulator must be published by the F24regulator in the way appearing to the F24regulator to be best calculated to bring it to the attention of the public.

C167

In exercising, or deciding whether to exercise, its power under section 206 F13or 206A in the case of any particular contravention, F25a regulator must have regard to any statement published F26by it under this section and in force at the time when the contravention in question occurred.

8

The F27regulator may charge a reasonable fee for providing a person with a copy of the statement.

C17C18C19C20C21C24C27C29C32C38C40C49C43C45C51C53C54211 Statements of policy: procedure.

1

Before F28a regulator issues a statement under section 210, the F29regulator must publish a draft of the proposed statement in the way appearing to the F29regulator to be best calculated to bring it to the attention of the public.

2

The draft must be accompanied by notice that representations about the proposal may be made to the F30regulator within a specified time.

3

Before issuing the proposed statement, the F30regulator must have regard to any representations made to it in accordance with subsection (2).

4

If the F30regulator issues the proposed statement it must publish an account, in general terms, of—

a

the representations made to it in accordance with subsection (2); and

b

its response to them.

5

If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the F31regulator, significant, the F31regulator must (in addition to complying with subsection (4)) publish details of the difference.

6

F32A regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

7

This section also applies to a proposal to alter or replace a statement.