ENF 8.7 Prohibition orders against exempt persons and members of professional firms

The FSA may exercise its power to make a prohibition order against any individual, including individuals who carry out regulated activities by virtue of their status as exempt persons or by virtue of an exemption from the general prohibition under Part XX of the Act (Provision of financial services by members of the professions) (see ENF 18 (Disapplication orders against members of the professions)).

1In cases where it is considering whether to exercise its power to make a prohibition order against an individual carrying on exempt regulated activities by virtue of an exemption from the general prohibition under Part XX of the Act, the FSA will consider whether the particular misconduct might be more appropriately dealt with by making an order disapplying the exemption using its power under section 329 of the Act. In most cases where the FSA is concerned about the fitness and propriety of a specific individual engaged in exempt regulated activities by virtue of an exemption under Part XX, it will be more appropriate to consider whether to make an order prohibiting the individual from performing functions in relation to exempt regulated activities than to make a disapplication order (see ENF 18.4.3 G ).

When considering whether to exercise its power to make a prohibition order against an exempt person, the FSA will consider those factors set out in ENF 8.5.2 G (1), ENF 8.5.2 G (3), ENF 8.5.2 G (5) and ENF 8.5.2 G (6).