Financial Services Act 2010 Explanatory Notes

Financial Services Act 2010

2010 CHAPTER 28

Commentary on Sections and Schedules

FSA’s disciplinary powers

Section 12: Approved persons guilty of misconduct

164. Section 66 of FSMA sets out the FSA’s disciplinary powers in respect of misconduct by approved persons. Approved persons are persons who have approval from the FSA to carry out controlled functions. Controlled functions are set out in FSA rules and include, for example, having responsibility for compliance with FSA rules or being a director.

165. This section amends section 66 of FSMA to add to the current sanctions (financial penalty and public censure) that the FSA can impose for misconduct. It enables the FSA to suspend an approved person from carrying on certain functions, and / or impose restrictions on that person’s performance of certain functions, for a maximum period of 2 years.

166. Paragraphs 9 and 10 of Schedule 2 make consequential amendments to sections 67 (disciplinary measures: procedure and right to refer to Tribunal) and 69 (statements of policy) so that they apply to the new sanctions.

167. Subsection (4) amends section 66(4) to increase the limitation period on the FSA taking disciplinary action against an approved person from two to three years.