DEPP 6A.4 The interaction between the power to impose suspensions, restrictions, conditions and limitations and the power to impose penalties or public censures

The deterrent effect and impact on a person of a suspension, restriction, condition or limitation2, by itself or in combination with a financial penalty, may be greater than where only a financial penalty is imposed. The FCA1 will consider the overall impact and deterrent effect of the sanctions it imposes when determining the level of penalty and the length of suspension, restriction, condition or limitation2.

The FCA1 expects usually to take the following approach in respect of the interaction between a suspension, restriction, condition or limitation2 and a financial penalty or public censure:

1. (1)

   The FCA1 will determine which sanction, or combination of sanctions, is appropriate for the breach.

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2. (2)

   If the FCA1, following the approach set out in DEPP 6.2, considers it appropriate to impose a financial penalty, it will calculate the appropriate level of the financial penalty, following the approach set out in DEPP 6.5 to DEPP 6.5D.

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3. (3)

   If the FCA1, following the approach set out in DEPP 6A.2, considers it appropriate to impose a suspension, restriction, condition or limitation2, it will calculate the appropriate length of the period of this measure2, following the approach set out in DEPP 6A.3 or DEPP 6A.3A, as appropriate2.

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4. (4)

   Where the FCA1 considers it appropriate to impose both a financial penalty and a suspension, restriction, condition or limitation2, it will decide whether the combined impact on the person is likely to be disproportionate in respect to the breach and the deterrent effect of the sanctions.

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5. (5)

   If the FCA1 considers the combined impact on the person is likely to be disproportionate, it will decide whether to reduce the period of suspension, restriction, or condition2, the amount of the financial penalty or both, so that the combined impact of the sanctions is proportionate in relation to the breach and the deterrent effect of the sanctions. The FCA1 will decide which sanction to reduce after considering all the circumstances of the case.

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6. (6)

   In deciding the final level of the financial penalty and the length of the period of suspension, restriction, condition or limitation2, the FCA1 will also take into account any representations by the person that the combined impact will cause them serious financial hardship. The FCA1 will take the approach set out in DEPP 6.5D in assessing this.

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The FCA1 may depart from the approach set out in DEPP 6A.4.2 G. For example, the FCA1 may at the outset consider that a financial penalty is the only appropriate sanction for a breach but, having determined the appropriate level of financial penalty, may consider it appropriate to reduce the amount of the financial penalty for serious financial hardship reasons. In such a situation, the FCA1 may consider it appropriate to impose a suspension, restriction, condition or limitation2 even if the FCA1 at the outset did not consider such a sanction to be appropriate. The FCA1 will take into account whether the person would suffer serious financial hardship in deciding the length of the period of suspension, restriction, condition or limitation and may decide not to impose such a measure2 if it considers such action would result in serious financial hardship.