C10C13C14 Part V Performance of Regulated Activities

Annotations:
Modifications etc. (not altering text)
C10

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

Prohibition orders

C1I1C2C356 Prohibition orders.

F11

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.

2

F7A “prohibition order” is an order prohibiting the individual from performing a specified function, any function falling within a specified description or any function.

3

A prohibition order may relate to—

a

a specified regulated activity, any regulated activity falling within a specified description or all regulated activities;

F8b

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.

F23A

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.

4

An individual who performs or agrees to perform a function in breach of a prohibition order is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

5

In proceedings for an offence under subsection (4) it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.

6

F9A person falling within subsection (3A) must take reasonable care to ensure that no function of his, in relation to the carrying on of a regulated activity, is performed by a person who is prohibited from performing that function by a prohibition order.

C47

F4The regulator that has made a prohibition order may, on the application of the individual named in F5the order, vary or revoke it.

F37A

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.

F157D

If—

a

the FCA proposes to vary or revoke a prohibition order which makes provision in relation to a recognised body, and

b

the FCA is not the appropriate regulator in relation to recognised bodies of that type,

the FCA must consult the appropriate regulator.

7E

If the PRA proposes to vary or revoke a prohibition order which makes provision in relation to a recognised body, the PRA must consult the appropriate regulator in relation to recognised bodies of that type.

F68

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

F179

“Specified” means specified in the prohibition order.

F179

In this section—

  • “the appropriate regulator”, in relation to a recognised body, has the meaning given by section 285A;

  • “recognised body” has the meaning given by section 313;

  • “specified” means specified in the prohibition order.

C5I2C6C1157 Prohibition orders: procedure and right to refer to Tribunal.

C71

If F11a regulator proposes to make a prohibition order it must give the individual concerned a warning notice.

2

The warning notice must set out the terms of the prohibition.

3

If F12a regulator decides to make a prohibition order it must give the individual concerned a decision notice.

4

The decision notice must—

a

name the individual to whom the prohibition order applies;

b

set out the terms of the order; and

c

be given to the individual named in the order.

5

A person against whom a decision to make a prohibition order is made may refer the matter to the Tribunal.

F106

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.

F169

If—

a

the FCA proposes to make a prohibition order which makes provision in relation to a recognised body, and

b

the FCA is not the appropriate regulator in relation to recognised bodies of that type,

the FCA must consult the appropriate regulator before giving a warning notice under this section.

10

If the PRA proposes to make a prohibition order which makes provision in relation to a recognised body, the PRA must consult the appropriate regulator in relation to recognised bodies of that type before giving a warning notice under this section.

11

In this section—

  • “the appropriate regulator”, in relation to a recognised body, has the meaning given by section 285A;

  • “recognised body” has the meaning given by section 313;

C8I3C9C1258 Applications relating to prohibitions: procedure and right to refer to Tribunal.

1

This section applies to an application for the variation or revocation of a prohibition order.

2

If the F14appropriate regulator decides to grant the application, it must give the applicant written notice of its decision.

3

If the F14appropriate regulator proposes to refuse the application, it must give the applicant a warning notice.

4

If the F14appropriate regulator decides to refuse the application, it must give the applicant a decision notice.

5

If the F14appropriate regulator gives the applicant a decision notice, he may refer the matter to the Tribunal.

F136

The appropriate regulator” means the regulator to which the application is made.