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REC 4.6 The section 296 power to give directions

REC 4.6.1G

Under section 296 of the Act (FCA's4 power to give directions) and (for RAPs) under regulation 3 of the RAP regulations3, 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 an RAP) 3those 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.

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REC 4.6.2G

[deleted]4

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REC 4.6.3G

The FCA4 is likely to exercise its power under section 296 of the Act or regulation 3 of the RAP regulations3 if it considers that:

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  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 4.6.4G

Under section 298(7) of the Act (Directions and revocation: procedure), and (for RAPs) regulation 5(7) of the RAP regulations,3 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.4

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