C6 Part V Performance of Regulated Activities
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
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.
F6C58
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9
“Specified” means specified in the prohibition order.
Pt. V (ss. 56-71) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a), 128(3)(a) (with art. 23(2))