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EG 9.6 Applications for variation or revocation of prohibition orders

EG 9.6.1

2When considering whether to grant or refuse an application to revoke or vary a prohibition order, the FCA will consider all the relevant circumstances of a case. These may include, but are not limited to:

  1. (1)

    the seriousness of the misconduct or other unfitness that resulted in the order;

  2. (2)

    the amount of time since the original order was made;

  3. (3)

    any steps taken subsequently by the individual to remedy the misconduct or other unfitness;

  4. (4)

    any evidence which, had it been known to the FCA at the time, would have been relevant to the FCA's decision to make the prohibition order;

  5. (5)

    all available information relating to the individual’s honesty, integrity or competence since the order was made, including any repetition of the misconduct which resulted in the prohibition order being made;

  6. (6)

    where the FCA's finding of unfitness arose from incompetence rather than from dishonesty or lack of integrity, evidence that this unfitness has been or will be remedied; for example, this may be achieved by the satisfactory completion of relevant training and obtaining relevant qualifications, or by supervision of the individual by his employer;

  7. (7)

    the financial soundness of the individual concerned; and

  8. (8)

    whether the individual will continue to pose the level of risk to consumers or confidence in the financial system which resulted in the original prohibition if it is lifted.

EG 9.6.2

2When considering whether to grant or refuse an application to revoke or vary a prohibition order, the FCA will take into account any indication given by the FCA in the final notice that it is minded to revoke or vary the prohibition order on application after a certain number of years (see paragraph 9.2.4).

EG 9.6.3

2If the individual applying for a revocation or variation of a prohibition order proposes to take up an offer of employment to perform a controlled function, the FCA will take this into account when considering whether to grant or refuse the application1.

EG 9.6.4

2The FCA will not generally grant an application to vary or revoke a prohibition order unless it is satisfied that: the proposed variation will not result in a reoccurrence of the risk to consumers or confidence in the financial system that resulted in the order being made; and the individual is fit to perform functions in relation to regulated activities generally, or to those specific regulated activities in relation to which the individual has been prohibited. The FCA will assess the individual's fitness and propriety to perform these functions on the basis of the criteria in FIT 2.1 (Honesty, integrity and reputation), FIT 2.2 (Competence and capability) and FIT 2.3 (Financial soundness).1

EG 9.6.5

2The FCA will consult the PRA before varying or revoking a prohibition order if, as a result of the variation or revocation, an individual will either be prohibited from, or no longer be prohibited from, a function of interest to the PRA as defined at section 56(7B) of the Act.