PART 4Enforcement and appeals
Recommendation for removal from Schedule 1 to the MLR17
1
If the FCA is satisfied that a self-regulatory organisation has failed to comply with—
a
a supervision requirement,
b
a requirement under regulation 7, regulation 12 or regulation 13,
c
a direction given under regulation 14, or
d
a requirement under regulation 27,
the FCA may make a recommendation to the Treasury that the self-regulatory organisation is removed from Schedule 1 to the MLR.
2
The FCA may make a recommendation for removal if, in purported compliance with a supervision requirement or a requirement imposed on the self-regulatory organisation by or under these Regulations, it provides information to the FCA which is false or misleading in a material particular and—
a
knows that the information is false or misleading, or
b
is reckless as to whether the information is false or misleading.
3
The FCA must not make a recommendation for removal for failure to comply with a requirement listed in paragraph (1) if the FCA is satisfied that the self-regulatory organisation took all reasonable steps and exercised all due diligence to ensure that such a requirement would be complied with.
4
In deciding whether a self-regulatory organisation has failed to comply with a supervision requirement, the FCA must consider whether at the time the self-regulatory organisation followed—
a
any relevant guidance which was at the time issued by the FCA;
b
any relevant guidelines issued by a European Supervisory Authority in accordance with Articles 17, 18(4) or 48(10) of the fourth money laundering directive.
5
The Treasury must take the FCA’s recommendation for removal into account when deciding whether to make regulations removing a self-regulatory organisation from Schedule 1 to the MLR.