Under section 329(1) of the Act (Orders in relation to the general prohibition) if it appears to the FSA that a person to whom (as a result of section 327(1) of the Act (Exemption from the general prohibition)) an exemption from the general prohibition applies, is not a fit and proper person to carry on exempt regulated activities, it may make an order under section 329(2) disapplying the exemption to the extent set out in the order.
Sections 329(5) and 329(6) are concerned with the effect of disapplication orders on partnerships (including limited liability partnerships). Section 329(5) provides that if a partnership (or limited liability partnership) is named in a disapplication order, the order is not affected by any change in its membership.
Under section 329(6) a partnership (or limited liability partnership) named in a disapplication order is dissolved, the order continues to have effect in relation to any partnership (or limited liability partnership) that succeeds to the business of the dissolved partnership (or limited liability partnership). Section 329(7) provides that a partnership will succeed to the business if:
Section 331(1) (Procedure on making or varying orders under section 329) provides that if the FSA proposes to make a disapplication order, it must give the person concerned a warning notice setting out the terms of the proposed order. The FSA's procedures in DEC 2.2 (Warning notice procedure) will apply.