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Status: You are viewing the version of the handbook as on 2005-06-30.

ENF 8.4 The FSA's policy on making prohibition orders

ENF 8.4.1G

ENF 8.5 to ENF 8.6 set out how the FSA will decide whether approved persons and other individuals are fit and proper to perform functions in relation to regulated activities.

ENF 8.4.2G
  1. (1)

    The FSA will have the power to make a range of prohibition orders depending on the circumstances of each case and the range of regulated activities to which the individual's lack of fitness and propriety is relevant.

  2. (2)

    Depending on the circumstances of each case, the FSA may seek to prohibit individuals from carrying out any class of relevantfunction in relation to any class of regulated activity, or it may limit the prohibition order to specific functions in relation to specific regulated activities. The FSA may also make an order prohibiting an individual from being employed by a particular firm, type of firm or any firm.

  3. (3)

    The scope of a prohibition order will depend on the range of functions which the individual concerned carries out in relation to regulated activities, the reasons why he is not fit and proper and the severity of risk which he poses to consumers or the market generally.

  4. (4)

    The FSA may also make an order prohibiting an individual from performing functions in relation to the regulated activities carried out by exempt persons and persons covered by an exemption under Part XX of the Act (provision of financial services by members of the professions).

ENF 8.4.3G

The FSA recognises that its decision to make a prohibition order will have a substantial impact on the individuals concerned and, where relevant, their employers. When it decides whether to make a prohibition order the FSA will consider all relevant circumstances including whether other enforcement action should be taken or has already been taken against the individual by the FSA. The FSA will also consider whether enforcement action has been taken against the individual by other enforcement agencies or designated professional bodies. Depending on the circumstances of the case, it may be appropriate to prohibit the individual from performing only certain functions in relation to regulated activities carried on by certain firms. Alternatively, the FSA may consider it necessary to prevent the individual concerned from performing any functions in relation to any regulated activities carried on by any firm.1

ENF 8.4.4G

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