RCB 4.2 Enforcement powers and penalties
The FSA's enforcement powers
The FCA's exercise of its powers under the RCB Regulations is without prejudice to the use of its powers under the Act or under other legislation.
- (1)
When deciding whether to take enforcement action under Part 7 of the RCB Regulations, and what form that enforcement action should take, the FCA will consider all relevant factors, including:
- (a)
the relevant factors on decisions to take action set out in DEPP 6.2.1 G;
- (b)
whether any contractual or other arrangements agreed between the parties can be used effectively to address any perceived failure under the RCB Regulations; and
- (c)
the interests of investors in the relevant regulated covered bond.
- (a)
- (2)
The FCA does not normally expect to use its enforcement powers where the issuer or the owner are in the process of rectifying non-compliance and where they have taken account of the views and interests of investors in the regulated covered bond. This is without prejudice to the FCA's use of its enforcement powers as a result of its consideration of all relevant factors, as set out in RCB 4.2.3 G (1).
Financial penalties
The FCA's policy on imposing financial penalties (including the amount of any such penalties) under the RCB Regulations will be consistent with the policy as set out in DEPP and EG with appropriate modifications.
When considering whether to impose a financial penalty, the amount of penalty, and whether to impose the penalty on the issuer or the owner, the FCA will have regard, where relevant,1 to: