Part V Performance of Regulated Activities

F1Performance of controlled functions without approval

63APower to impose penalties

(1)

If the F2appropriate regulator is satisfied that—

(a)

a person (“P”) has at any time performed a controlled function without approval, and

(b)

at that time P knew, or could reasonably be expected to have known, that P was performing a controlled function without approval,

it may impose a penalty on P of such amount as it considers appropriate.

(2)

For the purposes of this section P performs a controlled function without approval at any time if at that time—

(a)

P performs a controlled function under an arrangement entered into by an authorised person (“A”), or by a contractor of A, in relation to the carrying on by A of a regulated activity; and

F3(b)

P, when performing the function, is not acting in accordance with an approval given under section 59.

(3)

The F2appropriate regulator may not impose a penalty 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 concerned under section 63B(1).

(4)

“The limitation period” means the F4relevant period beginning with the first day on which the F2appropriate regulator knew that the person concerned had performed a controlled function without approval.

(5)

For this purpose the F2appropriate regulator is to be treated as knowing that a person has performed a controlled function without approval if it has information from which that can reasonably be inferred.

F5(5A)

The appropriate regulator”—

(a)

in relation to a controlled function which is of a description specified in rules made by the FCA, means the FCA, and

(b)

in relation to a controlled function which is of a description specified in rules made by the PRA, means the PRA.

F6(5B)

The relevant period” is—

(a)

in relation to the performance of a controlled function without approval before the day on which this subsection comes into force, the period of 3 years, and

(b)

in relation to the performance of a controlled function without approval on or after that day, the period of 6 years.

(6)

Any F7other expression which is used both in this section and section 59 has the same meaning in this section as in that section.