CRED 15.4 The FSA's policies and procedures for taking enforcement action

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The FSA's enforcement powers in the Industrial and Provident Societies Act 1965, the Friendly and Industrial and Provident Societies Act 1968, the Credit Unions Act 1979 and the Act can be grouped into three broad categories, based on the type of procedure that applies to their use. The three broad categories are:1

1. (1)

   regulatory enforcement powers, which the FSA must exercise by statutory1 notice procedures;

2. (2)

   civil enforcement powers, which the FSA must exercise by making application to the civil courts; and

3. (3)

   criminal prosecution powers, which the FSA must exercise by bringing proceedings in the criminal courts.

When the FSA exercises its regulatory enforcement powers, the statutory1 notice procedure it must follow varies depending on the type of action to be taken and the provisions of the relevant legislation.

1. (1)

   If the FSA is using its regulatory enforcement powers under the Act, it must give the reasons and various notices required by the Act and, in all cases, allow the person receiving the notice an opportunity to make representations. The FSA's decision making procedures for notices to be given by the Act are set out in DEC. CRED 16 provides an overview of DEC.

2. (2)

   If the FSA is using its regulatory enforcement powers under the Industrial and Provident Societies Act 1965, the Friendly and Industrial and Provident Societies Act 1968 and the Credit Unions Act 1979, it will have regard to the Principles set out in CRED 3 and will, so far as appropriate, provide a process that is consistent with that in DEC.1

When the FSA uses its civil enforcement powers and criminal prosecution powers under the relevant legislation, it must follow the procedures of the civil and criminal courts.

1. (1)

   If the FSA is considering using its regulatory enforcement, civil enforcement or criminal prosecution powers under the Act, it will apply the policies on the use of those powers set out in ENF.

2. (2)

   If the FSA is considering using its regulatory enforcement, civil enforcement or criminal prosecution powers under the Industrial and Provident Societies Act 1965, the Friendly and Industrial and Provident Societies Act 1968 and the Credit Unions Act 1979, it will, to the extent appropriate, apply the policies on the use of similar powers under the Act (as set out in ENF).1