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Status: You are viewing the version of the handbook as on 2016-02-03.

DEPP 6A.4 The interaction between the power to impose suspensions or restrictions and the power to impose penalties or public censures

DEPP 6A.4.1GRP

The deterrent effect and impact on a person of a suspension or restriction, by itself or in combination with a financial penalty, may be greater than where only a financial penalty is imposed. The FCA1 will consider the overall impact and deterrent effect of the sanctions it imposes when determining the level of penalty and the length of suspension or restriction.

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DEPP 6A.4.2GRP

The FCA1 expects usually to take the following approach in respect of the interaction between a suspension or restriction and a financial penalty or public censure:

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  1. (1)

    The FCA1 will determine which sanction, or combination of sanctions, is appropriate for the breach.

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  2. (2)

    If the FCA1, following the approach set out in DEPP 6.2, considers it appropriate to impose a financial penalty, it will calculate the appropriate level of the financial penalty, following the approach set out in DEPP 6.5 to DEPP 6.5D.

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  3. (3)

    If the FCA1, following the approach set out in DEPP 6A.2, considers it appropriate to impose a suspension or restriction, it will calculate the appropriate length of the period of suspension or restriction, following the approach set out in DEPP 6A.3 .

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  4. (4)

    Where the FCA1 considers it appropriate to impose both a financial penalty and a suspension or restriction, it will decide whether the combined impact on the person is likely to be disproportionate in respect to the breach and the deterrent effect of the sanctions.

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  5. (5)

    If the FCA1 considers the combined impact on the person is likely to be disproportionate, it will decide whether to reduce the period of suspension or restriction, the amount of the financial penalty or both, so that the combined impact of the sanctions is proportionate in relation to the breach and the deterrent effect of the sanctions. The FCA1 will decide which sanction to reduce after considering all the circumstances of the case.

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  6. (6)

    In deciding the final level of the financial penalty and the length of the period of suspension or restriction, the FCA1 will also take into account any representations by the person that the combined impact will cause them serious financial hardship. The FCA1 will take the approach set out in DEPP 6.5D in assessing this.

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DEPP 6A.4.3GRP

The FCA1 may depart from the approach set out in DEPP 6A.4.2 G. For example, the FCA1 may at the outset consider that a financial penalty is the only appropriate sanction for a breach but, having determined the appropriate level of financial penalty, may consider it appropriate to reduce the amount of the financial penalty for serious financial hardship reasons. In such a situation, the FCA1 may consider it appropriate to impose a suspension or restriction even if the FCA1 at the outset did not consider such a sanction to be appropriate. The FCA1 will take into account whether the person would suffer serious financial hardship in deciding the length of the period of suspension or restriction, and may decide not to impose a suspension or restriction if it considers such action would result in serious financial hardship.

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