REC 4.8 The section 298 procedure

A decision to:

1. (1)

   revoke a recognition order under section 297 of the Act (Revoking recognition)6; or

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2. (2)

   make a direction under section 296 (FCA's 4powers to give directions)6; or

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3. (3)

   refuse to make a recognition order under section 290 (Recognition orders) or 290A (Refusal of recognition on ground of excessive regulatory provision)6;2

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is a serious one and section 298 of the Act (Directions and revocation: procedure) sets6 out procedures 4(see REC 4.8.9 G) which the FCA will follow unless:6

1. in the case of a revocation of a recognition order, the recognised body concerned has given its consent (see section 297(1); or6

2. , in the case where the FCA proposes to make a direction under section 296, it considers it is reasonably necessary not to follow, or to cut short, the procedure (see REC 4.8.7G).6

The FCA's4 internal arrangements provide for any of these decisions to be taken at an appropriately senior level.

In considering whether it would be appropriate to exercise the powers under section 296 or section 297 of the Act6, the FCA4 will have regard to all relevant information and factors including:

1. (1)

   its guidance to recognised bodies;

2. (2)

   the results of its routine supervision of the body concerned;

3. (3)

   the extent to which the failure or likely failure to satisfy one or more of the recognised body requirements 31may affect the statutory objectives.

In considering whether or not to make a recognition order, the FCA4 will have regard to all relevant information and factors, including its guidance to recognised bodies and applicants and the information provided by applicants. Details of the application processes and other guidance for applicants are set out in REC 5 and (for overseas applications) REC 6.

The procedures laid down in section 298 of the Act 6are summarised, with the FCA's4 guidance about the actions it proposes to take in following these procedures, in the tables4 at REC 4.8.9 G6.

Before exercising its powers under section 296 or section 297 of the Act6, the FCA4 will usually discuss its intention, and the basis for this, with the members of the management body5 or other appropriate representatives of the recognised body. It will usually discuss its intention not to make a recognition order with appropriate representatives of the applicant.