C1C3 Part V Performance of Regulated Activities
Pt. 5 modified (7.11.2018) by The EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1149), regs. 1(2), 23 (with regs. 4, 22, 26(1)(2))
F1Conduct of approved persons and others
Ss. 64A, 64B and cross-heading inserted (25.7.2014 for specified purposes, 7.3.2016 for specified purposes) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 30(3), 148(5); S.I. 2014/1819, art. 2(2)(c); S.I. 2015/490, art. 2(1)(d) (as inserted by S.I. 2015/2055, art. 2(4) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))
C2C466AF6Misconduct: action by the FCA
1
For the purposes of action by the FCA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.
2
Condition A is that—
a
the person has at any time failed to comply with rules made by the FCA under section 64A, and
3
Condition B is that—
a
the person has at any time been knowingly concerned in a contravention of a relevant requirement by an authorised person, and
4
In this section “relevant requirement” means a requirement—
a
imposed by or under this Act, F2...
F4ab
imposed by the Undertakings for Collective Investment in Transferable Securities Regulations 2011, or
b
imposed by any qualifying EU provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.
5
Condition C is that—
a
b
there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, F7...
c
the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred F8, and
d
the senior manager did not take such steps as a person in the senior manager's position could reasonably be expected to take to avoid the contravention occurring (or continuing).
F96
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
For the purposes of subsection (5)—
“senior manager”, in relation to
F17a relevantF17an authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;F18“designated senior management function” means a function designated as a senior management function under section 59(6A) or (6B).
8
In this section—
“approved person”—
- a
means a person in relation to whom an approval is given under section 59, and
- b
in relation to an authorised person, means a person in relation to whom such approval is given on the application of the authorised person;
- a
F14“director”, in relation to an authorised person, has the same meaning as in section 64A;
“employee”, in relation to a person, has the same meaning as in section 64A.
9
F19For the meaning of “relevant authorised person”, see section 71A.
Pt. 5 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a), 128(3)(a) (with art. 23(2))