PART 9Enforcement
CHAPTER 2Civil penalties and notices
Power to impose civil penalties: suspension and removal of authorisation77
1
Paragraph (2) applies if the FCA is satisfied that a relevant person or a payment service provider has—
a
repeatedly or systematically failed to include the information it is required to include on the payer or the payee under Articles 4, 5 or 6 of the funds transfer regulation;
b
failed to implement effective risk-based procedures in breach of Articles 8 or 12 of the funds transfer regulation;
c
failed to comply with Articles 11, 12 or 16 of the funds transfer regulation, where the failure is a serious one;
d
repeatedly or systematically failed to retain records in breach of Article 16 of the funds transfer regulation; or
e
failed to comply with a relevant requirement.
2
The FCA may take one or more of the measures set out in sub-paragraphs (a) and (b)—
a
to cancel or suspend, for such period as it considers appropriate—
i
any permission which an authorised person has to carry on a regulated activity;
ii
the authorisation of a payment service provider as an authorised payment institution under the Payment Services Regulations F12017;
iii
the registration of a payment service provider as a small payment institution under the Payment Services Regulations F12017;
iv
the authorisation of a payment service provider as an authorised electronic money institution under the Electronic Money Regulations 2011 M1; or
v
the registration of a payment service provider as a small electronic money institution under the Electronic Money Regulations 2011;
b
to impose, for such period as it considers appropriate, such limitations or other restrictions as it considers appropriate—
i
in relation to the carrying on of a regulated activity by an authorised person;
ii
on the authorisation of a payment service provider as a payment institution under the Payment Services Regulations F22017;
iii
on the registration of a payment service provider as a small payment institution under the Payment Services Regulations F22017;
iv
on the authorisation of a payment service provider as an electronic money institution under the Electronic Money Regulations 2011; or
v
on the registration of a payment service provider as a small electronic money institution under the Electronic Money Regulations 2011.
3
In paragraph (2)—
a
“permission” means any permission that the authorised person has, whether given (or treated as given) under Part 4A of FSMA M2;
b
“regulated activity” has the meaning given by section 22 of FSMA M3).
4
The period for which a suspension, limitation or other restriction is to have effect may not exceed 12 months.
5
A suspension may relate only to the carrying on of an activity in circumstances specified by the FCA when the suspension is imposed.
6
A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.
7
The FCA may—
a
withdraw a suspension, limitation or other restriction; or
b
vary a suspension, limitation or other restriction so as to reduce the period for which it has effect or otherwise to limit its effect.
8
For the purposes of this regulation, “appropriate” means effective, proportionate and dissuasive.