PART 3Transitional provisions
CHAPTER 2Authorisation and regulation of 2006 Act authorised persons
Penalties for conduct for which the Regulator has not given notice of proposed penalty51
1
This article applies where—
a
the FCA is satisfied that, after 28th December 2014 but before 1st April 2019, a relevant person (“A”)—
i
failed to comply with any of the conditions of authorisation referred to in regulation 12(5)(a), (b), (d) or (i)86 of the 2006 Regulations;
ii
failed to comply with a notice in writing given by the Regulator under regulation 36 of the 2006 Regulations; or
iii
in relation to a warrant issued under regulation 40 of the 2006 Regulations (issue of warrants generally)87, obstructed an attempt to—
aa
enter and search premises in accordance with the warrant;
bb
take possession of written or electronic records in accordance with an authorisation under paragraph (4) of that regulation; or
cc
take copies of written or electronic records in accordance with regulation 4388 of the 2006 Regulations (copying of documents); and
b
on 1st April 2019, the Regulator has not given written notice to A under regulation 5189 of the 2006 Regulations (notice of proposed penalty and written submissions) that the Regulator proposed to impose a penalty on A for the failure or the obstruction concerned (“the relevant default”).
2
For the purposes of the following sections of the 2000 Act, the relevant default is to be treated as a contravention of a relevant requirement (within the meaning given by section 204A(2) of that Act)—
a
section 206 (financial penalties);
b
section 206A (suspending permission to carry on regulated activities etc);
c
section 208 (decision notice).
3
For the purposes of paragraph (2), sections 206 and 208 of the 2000 Act are to be read as if a reference to an authorised person included a person who was, at any time before 1st April 2019, a 2006 Act authorised person.
4
In determining what, if any, financial penalty to impose on A, the FCA must have regard to—
a
any penalty or fine that has been imposed on A for the relevant default by another body;
b
any other steps that the Regulator or the FCA has taken, or that the FCA might take, in relation to the relevant default;
c
the nature and seriousness of the relevant default; and
d
the relevant turnover (within the meaning given by regulation 5090) of A’s business.
5
A financial penalty imposed by the FCA for the relevant default—
a
where the relevant turnover of A’s business is less than £500,000, may not exceed £100,000;
b
where the relevant turnover of A’s business is £500,000 or more, may not exceed an amount equal to 20 per cent of that turnover.