ENF 8.9 Applications for variation or revocation of prohibition orders

At any time after the FSA has made a prohibition order against an individual, the individual may apply to the FSA to have the order varied or revoked.

When considering whether to grant or refuse an application to revoke or vary a prohibition order the FSA will consider all the relevant circumstances of a case. These may include, but are not limited to:

1. (1)

   the seriousness of the misconduct that resulted in the order;

2. (2)

   the amount of time since the original order was made;

3. (3)

   any steps taken subsequently by the individual to remedy the misconduct;

4. (4)

   any evidence which, had it been known to the FSA at the time, would have been relevant to the FSA's decision to make the prohibition order;

5. (5)

   all available information relating to the individual's honesty, integrity or competence since the order was made, including any repetition of the misconduct which resulted in the prohibition order being made;

6. (6)

   where the FSA's finding of unfitness arose from incompetence rather than from dishonesty or lack of integrity, evidence that this unfitness has been or will be remedied; for example, this may be achieved by the satisfactory completion of relevant training and obtaining relevant qualifications, or by supervision of the individual by his employer;

7. (7)

   the financial soundness of the individual concerned; and

8. (8)

   whether the individual will continue to pose the level of risk to consumers or confidence in the financial system which resulted in the original prohibition if it is lifted.

If the individual applying for a revocation or variation of a prohibition order proposes to take up an offer of employment to carry out controlled functions, the approved persons regime will also apply to him. In these cases, the firm concerned will be required to apply to the FSA for approval of that individual's employment in that capacity. The FSA will assess the individual's fitness and propriety to undertake controlled functions on the basis of the criteria set out in FIT 2.1 (Honesty, integrity and reputation); FIT 2.2 (Competence and capability) and FIT 2.3 (Financial soundness).

The FSA will not generally grant an application to vary or revoke a prohibition order unless it is satisfied that the proposed variation will not result in a reoccurrence of the risk to consumers or confidence in the financial system that resulted in the order being made. Equally, the FSA will not revoke a prohibition order unless it is satisfied that the individual is fit to carry out functions in relation to regulated activities generally, or to those specific regulated activities in relation to which the individual has been prohibited.

If the FSA decides to grant an application to vary or revoke a prohibition order it must give the applicant written notice of its decision.

Where the FSA proposes to refuse an application for revocation or variation, the FSA must give the applicant a warning notice setting out the reasons for its proposed refusal (see DEC 2.2 (Warning notice procedure)). If the FSA decides to refuse an application for revocation or variation of an order it must give the applicant a decision notice (see DEC 2.3 (Decision notice procedure)). If the FSA refuses an application, the applicant may refer the matter to the Tribunal (see DEC 5.1 (The Tribunal)).