DEC 1.2 Introduction

The Authorisation manual (AUTH), the Supervision manual (SUP), the Enforcement manual (ENF) and the Decision making manual (DEC) form the regulatory processes part of the Handbook:

1. (1)

   AUTH sets out the relationships between the FSA and applicants for Part IV permission and persons wishing to exercise EEA rights, Treaty rights or UCITS directive rights;

2. (2)

   SUP sets out the relationship between the FSA and authorised persons (referred to in the Handbook as firms). As a general rule, material that is of a continuing relevance after authorisation is in SUP;

3. (3)

   ENF describes the FSA's enforcement powers under the Act and sets out its policies for using those powers; and

4. (4)

   DEC is principally concerned with, and sets out, the FSA's decision making procedures for decisions that involve the giving of statutory notices.

The Act designates certain notices as warning notices, decision notices or supervisory notices ('statutory notices') for which there are certain specified procedures, actions and protections.DEC 1.2.3 G summarises the statutory notices and related notices and provides references to where they are described in the Act.

The FSA has different decision making procedures depending on whether or not a statutory notice is given.

Events leading to the giving of a statutory notice are covered in AUTH, SUP, ENF and COLL1 or CIS. DEC 2 Annex 1 G and DEC 3 Annex 1 G list the relevant references.

Decisions whether to give a statutory notice and decisions associated with the statutory notice once it has been given (a 'statutory notice associated decision', see DEC 4.1.2 G) will be taken by a 'decision maker'. References to the 'decision maker' concerning statutory notice decisions refer to decisions taken by:

1. (1)

   the Regulatory Decisions Committee (RDC);

   2
2. (2)

   FSA staff under executive procedures; or2

   2
3. (3)

   FSA staff under the settlement decision procedure.2

DEC 4.1 describes the allocation of decisions between the RDC and executive procedures. DEC 4.2 provides further information on the RDC. DEC 4.3 provides further information on executive procedures. DEC Appendix 1 explains settlement procedures and the mediation scheme for FSA enforcement cases. It includes a description of the circumstances in which decisions that would normally be made by the RDC will be made by FSA staff under settlement decision procedure.2

The FSA will make regulatory decisions falling outside section 395 of the Act. These will include exercise of statutory powers which do not require statutory notices to be given, for example: when the FSA grants an application for a Part IV permission on the terms applied for; when the FSA grants other applications; decisions on applications for waivers; decisions to give individual guidance; and decisions generally in the course of the FSA's oversight of regulated institutions. They also include decisions on recommendations by FSA staff to the RDC.

The FSA's general policy is that regulatory decisions should be taken at a level of seniority which is appropriate to the decision having regard to such factors as:

1. (1)

   the significance of the decision to those who would be affected by it;

2. (2)

   its novelty in the light of stated policy and established practice;

3. (3)

   the complexity of the relevant considerations;

4. (4)

   the range of alternative options; and

5. (5)

   the extent to which the facts relating to the decision are or may be disputed.

The FSA expects that most decisions will be made by individuals accountable through line management to the Board within the management structure of the FSA. Where appropriate, decisions will be made collectively by a group of staff. Decisions will be made within the stated policies of the FSA and in accordance with the Act and other legal requirements.