Part VU.K. Performance of Regulated Activities

Modifications etc. (not altering text)

[F1Performance of controlled functions without approvalU.K.

Textual Amendments

F1Ss. 63A-63D and preceding cross-heading inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 11, 26(2)(b)

63APower to impose penaltiesU.K.

(1)If the [F2appropriate regulator] is satisfied that—

(a)a person (“P”) has at any time performed a controlled function without approval, and

(b)at that time P knew, or could reasonably be expected to have known, that P was performing a controlled function without approval,

it may impose a penalty on P of such amount as it considers appropriate.

(2)For the purposes of this section P performs a controlled function without approval at any time if at that time—

(a)P performs a controlled function under an arrangement entered into by an authorised person (“A”), or by a contractor of A, in relation to the carrying on by A of a regulated activity; and

[F3(b)P, when performing the function, is not acting in accordance with an approval given under section 59.]

(3)The [F2appropriate regulator] may not impose a penalty under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person concerned under section 63B(1).

(4)“The limitation period” means the [F4relevant period] beginning with the first day on which the [F2appropriate regulator] knew that the person concerned had performed a controlled function without approval.

(5)For this purpose the [F2appropriate regulator] is to be treated as knowing that a person has performed a controlled function without approval if it has information from which that can reasonably be inferred.

[F5(5A)The appropriate regulator”—

(a)in relation to a controlled function which is of a description specified in rules made by the FCA, means the FCA, and

(b)in relation to a controlled function which is of a description specified in rules made by the PRA, means the PRA.]

[F6(5B)The relevant period” is—

(a)in relation to the performance of a controlled function without approval before the day on which this subsection comes into force, the period of 3 years, and

(b)in relation to the performance of a controlled function without approval on or after that day, the period of 6 years.]

(6)Any [F7other] expression which is used both in this section and section 59 has the same meaning in this section as in that section.]

Textual Amendments

F3S. 63A(2)(b) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 4; S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))

Modifications etc. (not altering text)