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EG 14.3 1Exercise of the powers in respect of recognised schemes: section 267 of the Act - power to suspend promotion of a scheme recognised under section 264: the FCA’s policy

EG 14.3.1RP

1When it decides whether a suspension order under section 267 is appropriate, the FCA will consider all the relevant circumstances. General factors that the FCA may consider include, but are not limited to:

  1. (1)

    the seriousness of the breach of financial promotion rules by the operator (the matters listed at paragraph 14.1.1 (a) to (f) may be relevant in this context); and

  2. (2)

    the conduct of the operator after the breach was discovered including whether the operator has compensated past and existing participants who have suffered loss.

EG 14.3.2RP

1In addition to or instead of suspending the promotion of a scheme recognised under section 264, the FCA may ask the competent authorities of the EEA State in which the scheme is constituted who are responsible for the authorisation of collective investment schemes, to take such action in respect of the scheme and/or its operator as will resolve the FCA's concerns. Also, Schedule 5 to the Act states that a person who for the time being is an operator, trustee or depositary of a scheme recognised under section 264 of the Act is an authorised person. So, it will also be open to the FCA to take direct enforcement action against those persons.