PART 2

Amendments of Financial Services and Markets Act 2000

Performance of regulated activities

Prohibition orders
13
1
Section 56 of FSMA 2000 (performance of regulated activities: prohibition orders) is amended as follows.
2
For subsection (1) substitute—
1
The FCA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—
a
an authorised person,
b
a person who is an exempt person in relation to that activity, or
c
a person to whom, as a result of Part 20, the general prohibition does not apply in relation to that activity.
1A
The PRA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—
a
a PRA-authorised person, or
b
a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.
3
In subsection (2), for “The Authority may make an order (“a prohibition order”)” substitute “A “prohibition order” is an order”.
4
In subsection (3), for paragraph (b) substitute—
b
all persons falling within subsection (3A) or a particular paragraph of that subsection or all persons within a specified class of person falling within a particular paragraph of that subsection.
5
After subsection (3) insert—
3A
A person falls within this subsection if the person is—
a
an authorised person,
b
an exempt person, or
c
a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity.
6
In subsection (6), for “An authorised person” substitute “A person falling within subsection (3A)”.
7
In subsection (7)—
a
for “The Authority” substitute “The regulator that has made a prohibition order”, and
b
for “a prohibition order” substitute “the order”.
8
After subsection (7) insert—
7A
If—
a
the FCA proposes to vary or revoke a prohibition order, and
b
as a result of the proposed variation or revocation, an individual—
i
will no longer be prohibited from performing a function of interest to the PRA, or
ii
will be prohibited from performing such a function,
the FCA must consult the PRA before varying or revoking the order.
7B
A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—
a
a PRA-authorised person, or
b
a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.
7C
The PRA must consult the FCA before varying or revoking a prohibition order.
9
Omit subsection (8).
10
Section 57 of FSMA 2000 (prohibition orders: procedure and right to refer to Tribunal) is amended as follows.
11
In subsections (1) and (3), for “the Authority” substitute “a regulator”.
12
At the end insert—
6
If—
a
the FCA proposes to make a prohibition order, and
b
as a result of the proposed order, an individual will be prohibited from performing a function of interest to the PRA,
the FCA must consult the PRA before giving a warning notice under this section.
7
A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—
a
a PRA-authorised person, or
b
a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.
8
The PRA must consult the FCA before giving a warning notice under this section.