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You are viewing the version of the document as on 2021-03-26.

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  5. Point in time
    2021-03-26

GEN 6.1 Payment of financial penalties2

Application

GEN 6.1.1 R RP

1This chapter applies to every firm, but only with respect to business that can be regulated under section3 137A (The FCA's general rules)3 of the Act.

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GEN 6.1.2 G RP

For the purposes of GEN 2.2.17 R (Activities covered by general rules), the chapter applies to regulated and unregulated activities carried on in the United Kingdom or overseas. In relation to regulated claims management activities and ancillary activities, this chapter applies with respect to activity carried on in Great Britain, even if the establishment from which it is carried on is not located in the UK (see PERG 2.4A).4

Purpose

GEN 6.1.3 G RP

The purpose of this section is to ensure that financial penalties are paid by the person on whom they are imposed.

Interpretation

GEN 6.1.4 R RP

In this chapter 'financial penalty' means a financial penalty that the FCA3 has imposed, or may impose, under the Act. It does not include a financial penalty imposed by any other body.

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Payment of a penalty imposed on an employee

GEN 6.1.4A R RP

2No firm, except a sole trader, may pay a financial penalty imposed by the FCA3 on a present or former employee, director or partner of the firm or of an affiliated company.

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Insurance against financial penalties

GEN 6.1.5 R RP

No firm may enter into, arrange, claim on or make a payment under a contract of insurance that is intended to have, or has or would have, the effect of indemnifying any person against all or part of a financial penalty

GEN 6.1.6 R RP

The Society, managing agents and members' agents must not cause or permit any member, in the conduct of his insurance business at Lloyd's, to enter into, arrange, claim on or make a payment under a contract of insurance that is intended to have, or has or would have, the effect of indemnifying any person against all or part of a financial penalty.

GEN 6.1.7 G RP

GEN 6.1.4A R ,2GEN 6.1.5 R and GEN 6.1.6 R do not prevent a firm or member from entering into, arranging, claiming on or making any payment under a contract of insurance which indemnifies any person against all or part of the costs of defending FCA3 enforcement action or any costs they may be ordered to pay to the FCA3 .

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