C1C2C5 Part V Performance of Regulated Activities

Annotations:
Modifications etc. (not altering text)
C1

Pt. 5 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a), 128(3)(a) (with art. 23(2))

F9Conduct of approved persons and others

Annotations:
Amendments (Textual)
F9

Ss. 64A, 64B and cross-heading inserted (25.7.2014 for specified purposes, 7.3.2016 for specified purposes) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 30(3), 148(5); S.I. 2014/1819, art. 2(2)(c); S.I. 2015/490, art. 2(1)(d) (as inserted by S.I. 2015/2055, art. 2(4) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))

C4C366AF6Misconduct: action by the FCA

1

For the purposes of action by the FCA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.

2

Condition A is that—

a

the person has at any time failed to comply with rules made by the FCA under section 64A, and

b

at that time the person was—

i

an approved person, F13...

ii

an employee of F21an authorised person F3, or

iii

a director of an authorised person.

3

Condition B is that—

a

the person has at any time been knowingly concerned in a contravention of a relevant requirement by an authorised person, and

b

at that time the person was—

i

an approved person in relation to the authorised person, F11...

ii

F1... an employee of the authorised person F18, or

iii

a director of the authorised person.

4

In this section “relevant requirement” means a requirement—

a

imposed by or under this Act, F17...

F8aa

imposed by the Alternative Investment Fund Managers Regulations 2013 F5...;

F16ab

imposed by the Undertakings for Collective Investment in Transferable Securities Regulations 2011, or

b

imposed by any F4qualifying provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.

5

Condition C is that—

a

the person has at any time been a senior manager in relation to F2an authorised person,

b

there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, F7...

c

the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred F14, and

d

the senior manager did not take such steps as a person in the senior manager's position could reasonably be expected to take to avoid the contravention occurring (or continuing).

F156

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

7

For the purposes of subsection (5)—

  • “senior manager”, in relation to F12an authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;

  • F19...

8

In this section—

  • “approved person”—

    1. a

      means a person in relation to whom an approval is given under section 59, and

    2. b

      in relation to an authorised person, means a person in relation to whom such approval is given on the application of the authorised person;

  • F10“director”, in relation to an authorised person, has the same meaning as in section 64A;

  • “employee”, in relation to a person, has the same meaning as in section 64A.

F209

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