ENF 18.1 Application and purpose

1. (1)

   This chapter applies to any person who is, in relation to a profession, entitled to practise that profession and, in practising it, is subject to the rules of the relevant designated professional body, whether or not it is a member of that body ('members').

2. (2)

   A member is exempt from the general prohibition, under section 327 of the Act (Exemption from the general prohibition), so long as the conditions set out in sections 327(2) to (7) are satisfied and so long as there is not in force:

   1. (a)

      a direction under section 328 of the Act ( Directions in relation to the general prohibition) disapplying the prohibition in whole or in part; or

   2. (b)

      an order under section 329 of the Act (Orders in relation to the general prohibition).

This chapter describes the FSA's general approach to the use of its power under section 329 of the Act (Orders in relation to the general prohibition) to make an order disapplying an exemption from the general prohibition in relation to a person who is member.

The chapter outlines:

1. (1)

   the FSA's power to make an order disapplying an exemption ('a disapplication order'), under section 329;

2. (2)

   the FSA's general approach to the exercise of that power;

3. (3)

   the FSA's procedure for exercising its power to make a disapplication order;

4. (4)

   the effect of the FSA's decision to make a disapplication order; and

5. (5)

   the FSA's approach to an application by a member of a profession to have a disapplication order varied or revoked.

The FSA's powers to make a disapplication order on the grounds that a member is not a fit and proper person to conduct exempt regulated activities, and to maintain a public record of disapplication orders, will assist the FSA in pursuing its regulatory objectives of protecting consumers, promoting public awareness and reducing financial crime.