Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

REC 4.6 The section 296 power to give directions

REC 4.6.1GRP

Under section 296 of the Act (FCA's4 power to give directions)5 and (for RAPs) under regulation 3 of the RAP regulations,6 the FCA4 has the power to give directions to a recognised body to take specified steps 1in order to secure its compliance with the recognised body requirements. In the case of a UK RIE (including one which operates a RAP)6 5those steps may include granting the FCA4 access to the UK RIE's premises for the purposes of inspecting those premises or any documents on the premises and the suspension of the carrying on of any regulated activity by the UK RIE for the period specified in the direction1.

REC 4.6.2G


REC 4.6.3GRP

The FCA4 is likely to exercise its power under section 296 of the Act or regulation 3 of the RAP regulations6 5if it considers that:

  1. (1)

    there has been, or was likely to be, a failure to satisfy one or more of the recognised body requirements3 1which has serious consequences;

  2. (2)

    compliance with the direction would ensure that 1one or more of the recognised body requirements is3 satisfied; and

  3. (3)

    the recognised body is capable of complying with the direction.

REC 4.6.4GRP

Under section 298(7) of the Act (Directions and revocation: procedure), 5 the FCA4 need not follow the consultation procedure set out in the rest of section 298 (see REC 4.8) or may cut short that procedure, if it considers it reasonably necessary to do so. For RAPs, the FCA need not follow the procedure set out in regulation 5 of the RAP regulations or may cut short the procedure, if it considers it essential to do so.65