EG 7.2 4Alternatives to sanctions

EG 7.2.1

4The FCA also has measures available to it where it considers it is appropriate to take protective or remedial action. These include:

  1. (1)

    where a firm's continuing ability to meet the threshold conditions or where an approved person's or other individual’s1 fitness and propriety1 are called into question:

    1. (a)

      varying and/or cancelling of permission and the withdrawal of a firm’s authorisation (see chapter 8); and

    2. (b)

      the withdrawal of an individual’s status as an approved person and/or the prohibition of an individual from performing a specified function in relation to a regulated activity (see chapter 9).

  2. (1A)

    where it is desirable to do so in order to advance one or more of its operational objectives, the FCA may vary the approval of an SMF manager (see DEPP 8);1

  3. (2)

    where the smooth operation of the market is, or may be, temporarily jeopardised or where protecting investors so requires, the FCA may suspend, with effect from such time as it may determine, the listing of any securities at any time and in such circumstances as it thinks fit (whether or not at the request of the issuer or its sponsor on its behalf);

  4. (3)

    when the FCA is satisfied there are special circumstances which preclude normal regular dealings in any listed securities, it may cancel the listing of any security;

  5. (4)

    where the FCA considers it necessary for the purpose of the exercise by it of functions under the Market Abuse Regulation or any directly applicable EU regulation made under the Market Abuse Regulation, the FCA may suspend trading in a financial instrument under section 122I of the Act;3

  6. (4a)

    3where the FCA considers it necessary for the purpose of the exercise by it of functions under the auction regulation the FCA may suspend trading in emission auction products under section 122I of the Act;

    [Note: see Regulation 6 and Schedule 1 to the RAP Regulations for power in relation to emission auction products]

  7. (5)

    where there are reasonable grounds for suspecting that a provision of Part VI of the Act, a provision contained in the prospectus rules, or any other provision made in accordance with the Prospectus Directive has been infringed, the FCA may:

    1. (a)

      suspend or prohibit the offer to the public of transferable securities as set out in section 87K of the Act; or

    2. (b)

      suspend or prohibit admission of transferable securities to trading on a regulated market as set out in section 87L of the Act;3

  8. (6)

    3where the FCA considers it necessary for the purposes set out in section 122G of the Act the FCA may, by notice in writing, require an issuer to publish specified information or a specified statement as set out under section 122G of the Act; and

  9. (7)

    3where the FCA considers it necessary for the purposes set out in section 122H of the Act the FCA may, by notice in writing, require a person to publish corrective information or a corrective statement as set out under section 122H of the Act.

EG 7.2.2

2Where a person who is a shareholder has contravened one or more relevant transparency provisions (as defined in section 89NA(11) of the Act) in respect of shares in a company admitted to trading on a regulated market and the FCA considers the breach to be serious, the FCA may apply to the Court for an order suspending that person’s voting rights as set out in section 89NA of the Act.