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 4.8 The section 298 procedure

REC 4.8.1GRP

A decision to:

  1. (1)

    revoke a recognition order under section 297 of the Act (Revoking recognition)6; or

    3
  2. (2)

    make a direction under section 296 (FCA's 4powers to give directions)6; or

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  3. (3)

    refuse to make a recognition order under section 290 (Recognition orders) or 290A (Refusal of recognition on ground of excessive regulatory provision)6;2

    3

is a serious one and section 298 of the Act (Directions and revocation: procedure) sets6 out procedures 4(see REC 4.8.9 G) which the FCA will follow unless:6

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  1. in the case of a revocation of a recognition order, the recognised body concerned has given its consent (see section 297(1); or6

  2. , in the case where the FCA proposes to make a direction under section 296, it considers it is reasonably necessary not to follow, or to cut short, the procedure (see REC 4.8.7G).6

REC 4.8.2GRP

The FCA's4 internal arrangements provide for any of these decisions to be taken at an appropriately senior level.

4
REC 4.8.3GRP

In considering whether it would be appropriate to exercise the powers under section 296 or section 297 of the Act6, the FCA4 will have regard to all relevant information and factors including:

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  1. (1)

    its guidance to recognised bodies;

  2. (2)

    the results of its routine supervision of the body concerned;

  3. (3)

    the extent to which the failure or likely failure to satisfy one or more of the recognised body requirements 31may affect the statutory objectives.

REC 4.8.4GRP

In considering whether or not to make a recognition order, the FCA4 will have regard to all relevant information and factors, including its guidance to recognised bodies and applicants and the information provided by applicants. Details of the application processes and other guidance for applicants are set out in REC 5 and (for overseas applications) REC 6.

4
REC 4.8.5GRP

The procedures laid down in section 298 of the Act 6are summarised, with the FCA's4 guidance about the actions it proposes to take in following these procedures, in the tables4 at REC 4.8.9 G6.

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REC 4.8.6GRP

Before exercising its powers under section 296 or section 297 of the Act6, the FCA4 will usually discuss its intention, and the basis for this, with the members of the management body5 or other appropriate representatives of the recognised body. It will usually discuss its intention not to make a recognition order with appropriate representatives of the applicant.

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REC 4.8.7G

[deleted]4

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REC 4.8.8G

[deleted]4

4
REC 4.8.9GRP

3Key steps in the section 298 procedure4

The FCA4 will:

4

Guidance

(1)

give written notice to theRIE4 (or applicant);

4

The notice will state why the FCA4 intends to take the action it proposes to take, and include an invitation to make representations, and the period within which representations should be made (unless subsequently extended by the FCA)4.

4

(2)4

4

receive representations from the RIE or applicant concerned;4

4

The FCA4 will not usually consider oral representations without first receiving written representations from theRIE (or applicant)4. It will normally only hear oral representations from the RIE4 on request.

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(3)4

4

write promptly to RIE (or applicant)4 who requests the opportunity to make oral representations if it decides not to hear that person's representations;

4

The FCA4 will indicate why it will not hear oral representations and the FCA4 will allow the RIE (or applicant)4 further time to respond.

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(4)4

4

have regard to representations made;

(5)4

4

(when it has reached its decision) notify the RIE4 (or applicant) concerned in writing.

4
4
REC 4.8.10GRP

[deleted]6

4