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DEPP 6A.2 Deciding whether to take action

DEPP 6A.2.1GRP

The FCA1 will consider the full circumstances of each case and determine whether it is appropriate to impose a suspension or restriction. The FCA1 will usually make this decision at the same time as it determines whether or not to impose a financial penalty or a public censure.

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DEPP 6A.2.2GRP

The FCA1 will take into account relevant factors in deciding whether it is appropriate to impose a suspension or restriction. These may include factors listed in DEPP 6.2. There may also be other factors, not listed in DEPP 6.2, that are relevant.

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DEPP 6A.2.3GRP

The FCA1 will consider it appropriate to impose a suspension or restriction where it believes that such action will be a more effective and persuasive deterrent than the imposition of a financial penalty alone. This is likely to be the case where the FCA1 considers that direct and visible action in relation to a particular breach is necessary. Examples of circumstances where the FCA1 may consider it appropriate to impose a suspension or restriction include:

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  1. (1)

    where the FCA1 (or any previous regulator) has taken any previous disciplinary action resulting in adverse findings against the person;

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  2. (2)

    where the FCA1 has previously taken action in respect of similar breaches and has failed to improve industry standards;

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  3. (3)

    where the person has failed properly to carry out an agreed redress package or other agreed remedial measures;

  4. (4)

    where the misconduct appears to be widespread across a number of individuals across a particular business area (suggesting a poor compliance culture);

  5. (5)

    where the person's competitive position in the market has improved as a result of the breach;

  6. (6)

    if, in accordance with DEPP 6.5D, the FCA1 considers that a proposed penalty would cause the subject of enforcement action serious financial hardship and that it is appropriate to reduce the proposed penalty.

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DEPP 6A.2.4GRP

The FCA1 expects usually to suspend or restrict a person from carrying out activities directly linked to the breach. However, in certain circumstances the FCA1 may also suspend or restrict a person from carrying out activities that are not directly linked to the breach, for example, where an authorised person's relevant business area no longer exists or has been restructured.

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DEPP 6A.2.5GRP

1For the purposes of section 89S(1)(d) of the Act, the FCA expects usually to suspend the approval of a primary information provider.