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Status: You are viewing the version of the handbook as on 2011-04-29.

DEPP 6A.2 Deciding whether to take action

DEPP 6A.2.1GRP

The FSA will consider the full circumstances of each case and determine whether it is appropriate to impose a suspension or restriction. The FSA will usually make this decision at the same time as it determines whether or not to impose a financial penalty or a public censure.

DEPP 6A.2.2GRP

The FSA will take into account relevant factors in deciding whether it is appropriate to impose a suspension or restriction. These may include factors listed in DEPP 6.2. There may also be other factors, not listed in DEPP 6.2, that are relevant.

DEPP 6A.2.3GRP

The FSA will consider it appropriate to impose a suspension or restriction where it believes that such action will be a more effective and persuasive deterrent than the imposition of a financial penalty alone. This is likely to be the case where the FSA considers that direct and visible action in relation to a particular breach is necessary. Examples of circumstances where the FSA may consider it appropriate to impose a suspension or restriction include:

  1. (1)

    where the FSA (or any previous regulator) has taken any previous disciplinary action resulting in adverse findings against the person;

  2. (2)

    where the FSA has previously taken action in respect of similar breaches and has failed to improve industry standards;

  3. (3)

    where the person has failed properly to carry out an agreed redress package or other agreed remedial measures;

  4. (4)

    where the misconduct appears to be widespread across a number of individuals across a particular business area (suggesting a poor compliance culture);

  5. (5)

    where the person's competitive position in the market has improved as a result of the breach;

  6. (6)

    if, in accordance with DEPP 6.5D, the FSA considers that a proposed penalty would cause the subject of enforcement action serious financial hardship and that it is appropriate to reduce the proposed penalty.

DEPP 6A.2.4GRP

The FSA expects usually to suspend or restrict a person from carrying out activities directly linked to the breach. However, in certain circumstances the FSA may also suspend or restrict a person from carrying out activities that are not directly linked to the breach, for example, where an authorised person's relevant business area no longer exists or has been restructured.