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).
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:
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.