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Status: You are viewing the version of the handbook as on 2012-01-07.

DEPP 6A.1 Introduction

DEPP 6A.1.1GRP

1DEPP 6A sets out the FSA's statement of policy with respect to the imposition of suspensions or restrictions, and the period for which those suspensions or restrictions are to have effect, under the Act, as required by sections 69(1) and 210(1) of the Act.

DEPP 6A.1.2GRP

For the purposes of DEPP 6A, "suspension" refers both to the suspension of any permission which an authorised person has to carry on a regulated activity (under section 206A of the Act), and the suspension of any approval of the performance by an approved person of any function to which the approval relates (under section 66 of the Act); and "restriction" refers both to limitations or other restrictions in relation to the carrying on of a regulated activity by an authorised person (under section 206A of the Act), and to limitations or other restrictions in relation to the performance by an approved person of any function to which any approval relates (under section 66 of the Act).

DEPP 6A.1.3GRP

The power to impose a suspension or a restriction is a disciplinary measure which the FSA may use in addition to, or instead of, imposing a financial penalty or issuing a public censure. The principal purpose of imposing a suspension or a restriction is to promote high standards of regulatory and/or market conduct by deterring persons who have committed breaches from committing further breaches, helping to deter other persons from committing similar breaches, and demonstrating generally the benefits of compliant behaviour. Suspensions and restrictions are therefore tools that the FSA may employ to help it to achieve its regulatory objectives. Examples of restrictions that we may impose include:

  1. (1)

    we may limit an authorised person's carrying on of a regulated activity so that they can only sell certain products or provide certain services;

  2. (2)

    we may restrict an approved person's performance of their controlled functions so that they can only give advice to consumers or deal in certain products if they are appropriately supervised.

DEPP 6A.1.4GRP

As the power to impose a suspension or a restriction is a disciplinary measure, where the FSA considers it necessary to take action, for example, to protect consumers from an authorised person, the FSA will seek to cancel or vary the authorised person's permissions. If the FSA has concerns with a person's fitness to be approved, and considers it necessary to take action, the FSA will seek to prohibit the approved person or withdraw its approval.