C1C34C47C42C43 Part XIV Disciplinary Measures

Annotations:
Modifications etc. (not altering text)
C1

Pt. 14 applied (1.12.2001) by 1951 c. 65, s. 57(5) (as substituted (1.12.2001) by S.I. 2001/3647, art. 5, Sch. 3 Pt. I para. 5(3))

C34

Pt. 14 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services Act 2012 (Consumer Credit) Order 2013 (S.I. 2013/1882), arts. 1(1), 3(7)

C47

Pt. 14 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 12(10)

C42

Pt. 14 modified (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 82(13)

C43

Pt. 14 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 4 (with Sch. 1 paras. 13, 14)

C29C45C51204AF29Meaning of “relevant requirement” and “appropriate regulator”

1

The following definitions apply for the purposes of this Part.

2

“Relevant requirement” means a requirement imposed—

a

by or under this Act, F41...

F43aa

by regulations under section 11 of the Civil Liability Act 2018,

b

by a F40qualifying provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order F38, F17...

c

by the Alternative Investment Fund Managers Regulations 2013F45, or

d

by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.

3

The PRA is “the appropriate regulator” in the case of a contravention of—

a

a requirement that is imposed under any provision of this Act by the PRA;

b

a requirement under section 56(6) where the authorised person concerned is a PRA-authorised person and the prohibition order concerned is made by the PRA;

F18c

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

F47d

a requirement under section 62A(2) where F50the revised statement of responsibilities is to be provided to the PRA only;

e

a requirement under section 64B(2) or (5) where the conduct rules concerned are made by the PRA;

f

a requirement under section 64C(1) to notify the PRA that disciplinary action has been taken.

F583A

Either the PRA or the FCA is “the appropriate regulator” in the case of a contravention of—

a

a requirement under section 59(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

b

a requirement under section 60A(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

F31ba

a requirement under section 62A(2) where the revised statement of responsibilities is to be provided to the FCA and the PRA;

c

a requirement under section 63(2A) where the approval concerned is within section 63(1A)(a);

d

a requirement under section 63E(1) where the authorised person concerned is a PRA-authorised person and the function concerned is of a description specified in rules made by the PRA;

e

a requirement under section 63F(1), (2), (4), (6) or (7) where the authorised person concerned is a PRA-authorised person and the certificate concerned relates to a function of a description specified in rules made by the PRA.

4

In the case of a contravention of a requirement that is imposed by a qualifying EU provision, “the appropriate regulator” for the purpose of any provision of this Part is whichever of the PRA or the FCA (or both) is specified by the Treasury by order in relation to the qualifying EU provision for the purposes of that provision of this Part.

5

In the case of a contravention of a requirement where the contravention constitutes an offence, the “appropriate regulator” is whichever of the PRA or the FCA has power to prosecute the offence (see section 401).

F236

The FCA is “the appropriate regulator” in the case of a contravention of any other requirement imposed—

a

by or under this Act;

F42aa

by regulations under section 11 of the Civil Liability Act 2018;

b

by the Alternative Investment Fund Managers Regulations 2013; or

c

by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.

7

The Treasury may by order amend the provisions defining “the appropriate regulator”.

C2C8C62C45C38205 Public censure.

If the F39appropriate regulator considers that an authorised person has contravened F44a relevant requirement imposed on the person, it may publish a statement to that effect.

C3C9C39C45C31C42C28C41206 Financial penalties.

1

If the F35 appropriate regulator considers that an authorised person has contravened F54a relevant requirement imposed on the person, it may impose on him a penalty, in respect of the contravention, of such amount as it considers appropriate.

2

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

A penalty under this section is payable to the F61regulator that imposed the penalty.

C45C42C66C64F1206A Suspending permission to carry on regulated activities etc

1

If the F51appropriate regulator considers that an authorised person has contravened a relevant requirement imposed on the person, it may—

a

suspend, for such period as it considers appropriate, any permission which the person has to carry on a regulated activity; or

b

impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of a regulated activity by the person as it considers appropriate.

F241A

The power conferred by subsection (1) is also exercisable by the FCA if it considers that an authorised person has contravened a requirement imposed on the person by—

a

the Payment Services Regulations F572017, or

b

the Electronic Money Regulations 2011.

F461B

The power conferred by subsection (1) may not be exercised in relation to a contravention of a requirement imposed under section 122A, 122B, 122C, 122G, 122H, 122I, F16122IA, 123A or 123B.

2

In subsection (1)—

  • “ permission ” means any permission that the authorised person has, whether given (or treated as given) by F60the FCA or the PRA or conferred by any provision of this Act;

  • F53...

C523

The period for which a suspension or restriction is to have effect may not exceed 12 months.

4

A suspension may relate only to the carrying on of an activity in specified circumstances.

5

A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.

6

The F48appropriate regulator may—

a

withdraw a suspension or restriction; or

b

vary a suspension or restriction so as to reduce the period for which it has effect or otherwise to limit its effect.

7

The power under this section may (but need not) be exercised so as to have effect in relation to all the regulated activities that the person concerned carries on.

8

Any one or more of the powers under—

a

subsection (1)(a) and (b) of this section, and

b

sections 205 and 206,

may be exercised in relation to the same contravention.

C4C10C59C45C49C42C40207 Proposal to take disciplinary measures.

1

If F37a regulator proposes—

a

to publish a statement in respect of an authorised person (under section 205), F3. . .

b

to impose a penalty on an authorised person (under section 206), F4 or

c

to suspend a permission of an authorised person or impose a restriction in relation to the carrying on of a regulated activity by an authorised person (under section 206A),

it must give the authorised person a warning notice.

2

A warning notice about a proposal to publish a statement must set out the terms of the statement.

3

A warning notice about a proposal to impose a penalty, must state the amount of the penalty.

F54

A warning notice about a proposal to suspend a permission or impose a restriction must state the period for which the suspension or restriction is to have effect.

C5C11C59C45C49C42C58C24208 Decision notice.

1

If F32a regulator decides—

C6a

to publish a statement under section 205 (whether or not in the terms proposed), F6. . .

C6b

to impose a penalty under section 206 (whether or not of the amount proposed), F7 or

c

to suspend a permission or impose a restriction under section 206A (whether or not in the manner proposed),

it must without delay give the authorised person concerned a decision notice.

2

In the case of a statement, the decision notice must set out the terms of the statement.

3

In the case of a penalty, the decision notice must state the amount of the penalty.

F83A

In the case of a suspension or restriction, the decision notice must state the period for which the suspension or restriction is to have effect.

C23C55C534

If F62a regulator decides to—

a

publish a statement in respect of an authorised person under section 205, F9. . .

b

impose a penalty on an authorised person under section 206, F10 or

c

suspend a permission of an authorised person, or impose a restriction in relation to the carrying on of a regulated activity by an authorised person, under section 206A,

the authorised person may refer the matter to the Tribunal.

C12C59C45C49209 Publication.

After a statement under section 205 is published, F21the regulator concerned must send a copy of it to the authorised person and to any person on whom a copy of the decision notice was given under section 393(4).

C13C15C17C19C21C50C57C32C59C34C47C33C25C63C49C26C30C60C35C65210 Statements of policy.

1

F33Each regulator must prepare and issue a statement of its policy with respect to—

F11a

the imposition of penalties, suspensions or restrictions under this Part;

b

the amount of penalties under this Part; and

c

the period for which suspensions or restrictions under this Part are to have effect.

F521A

Each regulator's policy with respect to the imposition of penalties, suspensions or restrictions under this Part must include policy with respect to their imposition in relation to conduct which constitutes or may constitute an offence by virtue of section 23(1A) (authorised persons carrying on credit-related regulated activities otherwise than in accordance with permission).

2

F22A regulator's policy in determining what the amount of a penalty should be F12, or what the period for which a suspension or restriction is to have effect should be, must include having regard to—

a

the seriousness of the contravention in question in relation to the nature of the requirement contravened;

b

the extent to which that contravention was deliberate or reckless; and

c

whether F13the person against whom action is to be taken is an individual.

3

F19A regulator may at any time alter or replace a statement issued F56by it under this section.

4

If a statement issued under this section is altered or F28replaced by a regulator, the regulator must issue the altered or replacement statement.

5

F27A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.

6

A statement issued under this section F26by a regulator must be published by the F55regulator in the way appearing to the F55regulator to be best calculated to bring it to the attention of the public.

C77

In exercising, or deciding whether to exercise, its power under section 206 F14or 206A in the case of any particular contravention, F34a regulator must have regard to any statement published F25by it under this section and in force at the time when the contravention in question occurred.

8

The F30regulator may charge a reasonable fee for providing a person with a copy of the statement.

C14C16C18C20C22C27C36C56C59C54C44C49C61C37C46C48C65211 Statements of policy: procedure.

1

Before F59a regulator issues a statement under section 210, the F15regulator must publish a draft of the proposed statement in the way appearing to the F15regulator to be best calculated to bring it to the attention of the public.

2

The draft must be accompanied by notice that representations about the proposal may be made to the F20regulator within a specified time.

3

Before issuing the proposed statement, the F20regulator must have regard to any representations made to it in accordance with subsection (2).

4

If the F20regulator issues the proposed statement it must publish an account, in general terms, of—

a

the representations made to it in accordance with subsection (2); and

b

its response to them.

5

If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the F49regulator, significant, the F49regulator must (in addition to complying with subsection (4)) publish details of the difference.

6

F36A regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

7

This section also applies to a proposal to alter or replace a statement.