5B.4. Block 4: Regulatory Processes Flashcards
What does Block 4 of the FCA handbook contain?
The description of the FCAs supervisory and disciplinary functions.
What does the SUP sourcebook or manual stand for?
Supervision
What does the SUP sourcebook or manual include?
Sets out what the FCA does to ensure firms are complying with their requirements, and what information must be passed to them.
This covers off day to day requirements for individuals, firms, and markets that wish to retain their Part 4a permission.
What does the DEPP sourcebook or manual stand for?
Decision Procedure and Penalties.
What does the DEPP sourcebook or manual include?
FCAs procedures for taking statutory notice decisions. These are notices that detail the proposed FCA sanctions for FCA rule breaches.
In the DEPP, what can the FCA act as?
A reactive and a practice regulator.
In their capacity as a reactive regulator, what does this involve?
Actions as the result of an event or report, including:
- Reviewing an authorised person’s reporting and MI.
- Reacting to feedback from organisations such as the Citizen’s Advice Bureau.
- Reacting to feedback from the 4 FCA panels.
- Reacting to whistle-blowing information.
What does acting as a proactive regulator include?
Includes having a plan of scheduled visit to firms, individuals or markets to review procedures and practices.
What are some offences for which the FCA can instigate investigations (both civil and criminal) and then, dependent on their findings, apply a variety of sanctions?
- Carrying out a regulated activity (or pretending to be) without being either authorised or exempt - remember this is a breach of general prohibition rules.
- Breaching any previous prohibition order.
- Failing to co-operate with an FCA investigation.
- Failing to inform the FCA of any control changes.
- Giving false or misleading information to the FCA.
- Concealing any material facts.
- Making misleading, false or deceptive statements, promises or forecasts.
What are some options of the sanctions at the FCA’s disposal?
- Issuing a warning to an individual, firm or market. This is most likely to be a regulator response to an action or situation that has occurred by accident.
- Allocating supervisory staff to firms and situations where there is heightened risk to consumers.
- Making public announcements - no individual, firm, or market is keen on these, as negative publicity can be very damaging to reputation and new business levels.
- Obtaining court injunctions.
- Setting unlimited fines.
- Imposing conditions on new businesses.
- Ensuring customers are compensated.
- Varying or withdrawing authorisation.
- Banning individuals and firms from acting in a regulated capacity.
Does a right of appeal exist against any FCA ruling?
Yes, first via the Upper Tribunal and if that does not help then via the Court of Appeal.
When can someone appeal to the Upper Tribunal?
Individuals, firms or markets aggrieved by the decision of the Regulatory Decisions Committee (RDC) within the Enforcement division of the FCA can appeal to the Upper Tribunal.
What sort of body is the Upper Tribunal?
An independent judicial body.
Who is the Upper Tribunal under the control of?
The Lord Chancellor’s Department, as it is part of the Court Service, and will decide on cases referred to it. Any decision made by them can also be reviewed by the court of Appeal.
What is the last port of call if the Upper Tribunal upholds the FCA decision and disciplinary action is imposed?
To the Court of Appeal, but only based on a point of law (not just because you just still don’t agree with the decision).
