[F1 PART 9C U.K.Prudential regulation of FCA investment firms

Textual Amendments

F1 Pt. 9C inserted (1.7.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 2 para. 1; S.I. 2021/671, reg. 4(b)

Disciplinary measures for non-authorised parent undertakings U.K.

143W Disciplinary measures U.K.

(1) This section applies if the FCA is satisfied that a non-authorised parent undertaking of an FCA investment firm has contravened—

(a) a provision of Part 9C rules,

(b) a requirement imposed under section 143K,

(c) section 143R, or

(d) section 143S(6).

(2) The FCA may impose a penalty of such amount as it considers appropriate on any of the following—

(a) the non-authorised parent undertaking;

(b) a person who was knowingly concerned in the contravention.

(3) The FCA may (instead of or in addition to imposing a penalty under subsection (2)) publish a statement to the effect that the person has contravened, or been knowingly concerned in a contravention of, a provision of Part 9C rules.

(4) Subsection (5) applies to—

(a) a member of the management body of the non-authorised parent undertaking, or

(b) a person not falling within paragraph (a) who is an employee of the non-authorised parent undertaking,

who was, at any time, knowingly concerned in the contravention.

(5) The FCA may impose, for such period as it considers appropriate, restrictions (including a ban) on the exercise by the person of functions of an FCA investment firm or a parent undertaking of an FCA investment firm.

(6) The FCA may—

(a) vary a restriction imposed under subsection (5) so as to reduce the period for which it has effect or otherwise to limit its effect, or

(b) cancel the restriction.

(7) The FCA may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 143X.

(8) In subsection (7), “the limitation period” means the period of six years beginning with the first day on which the FCA knew of the contravention.

(9) For the purpose of subsection (8), the FCA is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.

(10) In this section, “management body” means the board of directors or, if there is no such board, the equivalent body responsible for the management of the undertaking concerned.

(11) The reference in subsection (4) to an employee of a person (“P”) includes a person who—

(a) personally provides, or is under an obligation personally to provide, services to P under an arrangement made between P and the person providing the services or another person, and

(b) is subject to (or to the right of) supervision, direction or control by P as to the manner in which those services are provided.]