C1C3 Part V Performance of Regulated Activities

Annotations:
Modifications etc. (not altering text)
C1

Pt. 5 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a), 128(3)(a) (with art. 23(2))

F1Conduct of approved persons and others

Annotations:
Amendments (Textual)
F1

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))

C266BF2Misconduct: action by the PRA

1

For the purposes of action by the PRA 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 PRA under section 64A, and

b

at that time the person was—

i

an approved person, F6...

ii

an employee of a F11relevant PRA-authorised person F7, or

iii

a director of a PRA-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 a PRA-authorised person, and

b

at that time the person was—

i

an approved person in respect of the performance of a relevant senior management function in relation to the carrying on by the PRA-authorised person of a regulated activity, F8...

F12ii

in the case of a relevant PRA-authorised person, an employee of the authorised person

F12ii

an employee of the PRA-authorised personF9, or

iii

a director of the PRA-authorised person.

4

In this section “relevant requirement” means a requirement—

a

imposed by or under this Act, 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

the person has at any time been a senior manager in relation to a F13relevant PRA-authorised person,

b

there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, F3...

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 F4, 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).

F56

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

For the purposes of subsection (5)—

  • “senior manager”, in relation to a F14relevant PRA-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;

  • F15“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”—

    1. a

      means a person in relation to whom—

      1. i

        the PRA has given its approval under section 59, or

      2. ii

        the FCA has given its approval under section 59 in respect of the performance by the person of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity, and

    2. b

      in relation to an authorised person, means a person in relation to whom approval under section 59 is given on the application of the authorised person;

  • F10“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;

  • F16“relevant PRA-authorised person” means a PRA-authorised person that is a relevant authorised person;

  • “relevant senior management function” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).

9

F17For the meaning of “relevant authorised person”, see section 71A.