Part V Performance of Regulated Activities

Conduct of approved persons and others

F166AMisconduct: 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

(b)

at that time the person was—

(i)

an approved person, F2...

(ii)

an employee of F3an authorised person F4, or

(iii)

a director of an authorised person.

(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

(b)

at that time the person was—

(i)

an approved person in relation to the authorised person, F5...

(ii)

F6... an employee of the authorised person F7, or

(iii)

a director of the authorised person.

(4)

In this section “relevant requirement” means a requirement—

(a)

imposed by or under this Act, F8...

F9(aa)

imposed by the Alternative Investment Fund Managers Regulations 2013 F10...;

F11(ab)

imposed by the Undertakings for Collective Investment in Transferable Securities Regulations 2011, or

(b)

imposed by any F12qualifying provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.

(5)

Condition C is that—

(a)

the person has at any time been a senior manager in relation to F13an authorised person,

(b)

there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, F14...

(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 F15, 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).

F16(6)

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(7)

For the purposes of subsection (5)—

“senior manager”, in relation to F17an 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...

(8)

In this section—

  • “approved person”—

    1. (a)

      means a person in relation to whom an approval is given under section 59, and

    2. (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;

  • F19“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.

F20(9)

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