DEPP 6A.1 Introduction

1DEPP 6A sets out the FCA's2 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), 88C(1), 89S(1)2 and 210(1) of the Act.

1. (1)

   For the purposes of DEPP 6A, "suspension" refers to the suspension of:2

   1. (a)

      any permission which an authorised person has to carry on a regulated activity (under section 206A of the Act),2

   2. (b)

      any approval of the performance by an approved person of any function to which the approval relates (under section 66 of the Act),2

   3. (c)

      a sponsor's approval (under section 88A(2)(b) of the Act),2

   4. (d)

      and a primary information provider's approval (under section 89Q(2)(b) of the Act); and2

2. (2)

   "restriction" refers to limitations or other restrictions in relation to:2

   1. (a)

      the carrying on of a regulated activity by an authorised person (under section 206A of the Act), 2

   2. (b)

      the performance by an approved person of any function to which any approval relates (under section 66 of the Act),2

   3. (c)

      the performance of services to which a sponsor's approval relates (under section 88A(2)(c) of the Act), and2

   4. (d)

      the dissemination of regulated information by a primary information provider (under section 89Q(2)(c) of the Act).2

The power to impose a suspension or a restriction is a disciplinary measure which the FCA2 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 FCA2 may employ to help it to achieve its statutory objectives2. 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.

The powers to impose a suspension or a restriction in relation to authorised persons and approved persons are disciplinary measures;2 where the FCA2 considers it necessary to take action, for example, to protect consumers from an authorised person, the FCA2 will seek to cancel or vary the authorised person's permissions. If the FCA2 has concerns with a person's fitness to be approved, and considers it necessary to take action, the FCA2 will seek to prohibit the approved person or withdraw its approval. While the powers to impose a suspension or a restriction in relation to sponsors and primary information providers under sections 88A(2)(b)/(c) and 89Q(2)(b)/(c) of the Act are disciplinary measures, the FCA can impose suspensions, limitations or other restrictions in relation to sponsors and primary information providers in other circumstances.2