DEC 4.2 The Regulatory Decisions Committee

The Regulatory Decisions Committee (RDC) is appointed by the FSA Board to exercise certain regulatory powers on behalf of the FSA Board. The RDC is accountable to the FSA Board for its decisions.

The RDC comprises a Chairman, one or more Deputy Chairmen, and other members.

The RDC is a body outside the FSA's management structure. Apart from the Chairman, none of the members of the RDC is an FSA employee. The members represent the public interest and comprise:

1. (1)

   current and recently retired practitioners with financial services industry skills and knowledge; and

2. (2)

   non-practitioners.1

The RDC is supported by the RDC Secretariat. The RDC Secretariat is separate from FSA staff involved in making recommendations to the RDC.

The Chairman of the RDC is appointed by the FSA Board on the recommendation of an independent group established by the Board for that purpose. A non-executive member of the FSA Board chairs the independent group. The FSA Board also appoints all other members of the RDC, including its Deputy Chairman or Deputy Chairmen, on the recommendation of the Chairman of the RDC.

All members of the RDC are appointed for fixed periods.

The FSA Board may remove a member of the RDC but only in the event of that member's misconduct or incapacity.

The RDC will meet as a full committee or in panels. Except in an urgent supervisory notice case, where the Chairman or a Deputy Chairman and, where possible, any one other member of the RDC will make a decision (see DEC 4.5.7 G (2)), each meeting of the RDC will include:

1. (1)

   its Chairman or a Deputy Chairman (who will chair the meeting); and

2. (2)

   at least two other members.

However, the composition and size of panels of the RDC, and the frequency of their meetings, may vary depending on the nature of the particular matter under consideration.

1. (1)

   If a member of the RDC has a potential conflict of interest in any matter before the RDC he will disclose the conflict to the Chairman of the RDC (or if he is the Chairman of the RDC, to the Chairman or Deputy Chairman of the FSA). He will also disclose the conflict to the RDC Secretariat.

2. (2)

   If the Chairman of the RDC (or where appropriate the Chairman or Deputy Chairman of the FSA) considers it reasonable and appropriate, he will require the member of the RDC to stand down from consideration of that particular matter. The Chairman of the RDC (or Chairman or Deputy Chairman of the FSA) may ask another member of the RDC to assist him in considering the potential conflict.

The RDC Secretariat will record and document all disclosures of potential conflicts of interest and the steps taken to manage them.

The meetings of the RDC will be in private, and will be conducted in the manner the RDC considers suitable in order to enable it to determine fairly the matters which it is required to consider.

Each member of the RDC present is entitled to vote on the matter under consideration. The Chairman of the meeting of the RDC will have a vote as a member of the RDC and will have the casting vote in a tie.

The RDC may require FSA staff to attend its meetings.

FSA staff are entitled to put to the RDC the previous disciplinary record of a person, including any previous breach of the Act, the Principles, or other rules (including the record prior to the Act). FSA staff may also draw to the RDC's attention the compliance history of a person, including that under previous legislation.

The RDC may not consider any of the matters in DEC 4.2.15 G for the purpose of proving a later breach. The matters in DEC 4.2.15 G may be considered when determining whether to take action or, where appropriate, as one of the factors described in ENF 13.3.3 G, in determining the level of the financial penalty.

Representations to the RDC are received in accordance with DEC 4.4.

The FSA will fix a date or dates for a meeting to consider the representations and to decide:

1. (1)

   whether to take the action proposed;

2. (2)

   if the action has been taken, whether to rescind the action; and

3. (3)

   in either case, whether to take the action in a different way.

The RDC Secretariat will ensure that a record is kept of:

1. (1)

   who took the decision;

2. (2)

   the representations made to the RDC;

3. (3)

   the material considered by the RDC;

4. (4)

   the nature of the decision;

5. (5)

   the reasons for the decision; and

6. (6)

   the dates on which the decision was taken and then communicated by the FSA to the person concerned.