LLD 2.5 Co-operation between the FSA and the Society

LLD 2.5.2 G sets out the FSA's policy regarding notification to the Society when the FSA investigates or takes action in relation to an underwriting agent, an approved person who carries out controlled functions for or on behalf of an underwriting agent, or an individual acting for or on behalf of an underwriting agent.

Subject to the restrictions on disclosure or use of confidential information in or under sections 348 (Restrictions on disclosure of confidential information by Authority etc) and 349 (Exceptions from section 348) of the Act, any restrictions on disclosure or use that apply under European or common law, and any special circumstances of an individual case, the FSA will notify the Society when the FSA does any of the following:

1. (1)

   requires, or authorises an officer to require, an underwriting agent to provide specified information or documents under section 165 of the Act (Authority's power to require information); or

2. (2)

   requires an underwriting agent to provide a report by a skilled person under section 166 of the Act (Reports by skilled persons); or

3. (3)

   appoints an investigator to carry out an investigation under any of sections 167 to 169 of the Act (Appointment of persons to carry out general investigations, Appointment of persons to carry out investigations in particular cases, Investigations etc in support of overseas regulator) where the subject of the investigation is an underwriting agent or an approved person acting for or on behalf of an underwriting agent; or

4. (4)

   executes a warrant to search for and to seize documents where the subject of the investigation is an underwriting agent or an approved person acting for or on behalf of an underwriting agent; or

5. (5)

   issues a supervisory notice, a warning notice, a decision notice, a notice of discontinuance or a final notice in relation to the following administrative enforcement action against an underwriting agent:

   1. (a)

      variation or cancellation of permission on the FSA's own initiative under sections 45 to 47 of the Act (Variation etc at request of authorised person, Variation of permission on acquisition of control, Exercise of power in support of overseas regulator); or

   2. (b)

      restitution required by the FSA under section 384 of the Act (Power of Authority to require restitution); or

   3. (c)

      disciplinary action under sections 205 and 206 of the Act (Public censure, Financial penalties); or

6. (6)

   issues a warning notice, a decision notice, a notice of discontinuance or a final notice in relation to the following administrative enforcement action against an approved person acting for or on behalf of an underwriting agent:

   1. (a)

      withdrawal of approval under section 63 of the Act (Withdrawal of approval); or

   2. (b)

      prohibition from regulated activities under section 56 of the Act (Prohibition orders); or

   3. (c)

      disciplinary action under section 66 of the Act (Disciplinary powers); or

7. (7)

   issues a warning notice, a decision notice, a notice of discontinuance or a final notice in relation to the prohibition from regulated activities under section 56 of the Act (Prohibition orders) of an individual acting for or on behalf of an underwriting agent; or

8. (8)

   applies to the court for an injunction under section 380 (Injunctions) or restitution order under section 382 (Restitution orders) of the Act in relation to an underwriting agent or an approved person acting for or on behalf of an underwriting agent, or for an administration order, winding up order or bankruptcy order against an underwriting agent under Part XXIV of the Act (Insolvency); or

9. (9)

   commences a criminal prosecution against an underwriting agent or approved person acting for or on behalf of an underwriting agent.

ENF 11 gives further guidance on the policy and procedures which apply in circumstances where both the FSA and other regulatory authorities have an interest in investigating or disciplining a firm, individual or other person. The FSA and the Society have agreed to have enforcement co-operation arrangements to assist them when they are considering cases of regulatory concern or misconduct of mutual interest.