Section 395: The FCA's and PRA's procedures., Financial Services and Markets Act 2000

Each regulator must determine the procedure that it proposes to follow in relation to the following—

a decision which gives rise to an obligation to give a supervisory notice,

in the case of the FCA, a decision which—

gives rise to an obligation for it to give a warning notice or decision notice, or

gives rise to an obligation for the PRA to include a statement under section 387(1A) in a warning notice or a statement under section 388(1A) in a decision notice,

in the case of the PRA, a decision which gives rise to an obligation for it to give a warning notice or decision notice, other than a decision which depends entirely on a decision of the FCA of the kind mentioned in paragraph (b)(ii), and

a decision under section 391(1)(c) to publish information about the matter to which a warning notice relates.

That procedure must be designed to secure, among other things that—

a decision falling within any of paragraphs (a) to (c) of subsection (1) is taken—

by a person not directly involved in establishing the evidence on which the decision is based, or

by 2 or more persons who include a person not directly involved in establishing that evidence,

a decision falling within paragraph (d) of subsection (1) is taken—

by a person other than the person by whom the decision was first proposed, or

by 2 or more persons not including the person by whom the decision was first proposed, and

a decision falling within paragraph (d) of subsection (1) is taken in accordance with a procedure which is, as far as possible, the same as that applicable to a decision which gives rise to an obligation to give a warning notice and which falls within paragraph (b) or (c) of subsection (1).

But the procedure may permit a decision which gives rise to an obligation to give a supervisory notice to be taken otherwise than as mentioned in subsection (2) if the person taking the decision is of a level of seniority laid down by the procedure and—

in the case of procedure proposed by the FCA, the FCA considers that, in the particular case, it is necessary in order to advance one or more of its operational objectives, or

in the case of procedure proposed by the PRA, the PRA considers that, in the particular case, it is necessary in order to advance any of its objectives.

A level of seniority laid down by the procedure for the purposes of subsection (3)(b) must be appropriate to the importance of the decision.

Each regulator must issue a statement of its procedure.

The statement must be published in the way appearing to the regulator issuing it to be best calculated to bring the statement to the attention of the public.

The regulator issuing the statement may charge a reasonable fee for providing a person with a copy of the statement.

The regulator issuing a statement under this section must, without delay, give the Treasury a copy of the statement.

When a regulator gives a supervisory notice, or a warning notice or decision notice, other than a warning notice or decision notice relating to a decision of the PRA that is required by a a decision of the FCA of the kind mentioned in subsection (1)(b)(ii) the regulator must follow its stated procedure.

When the FCA takes a decision falling within subsection (1)(b)(ii), it must follow its stated procedure.

If a regulator changes its procedure in a material way, it must publish a revised statement.

A regulator's failure in a particular case to follow its procedure as set out in the latest published statement does not affect the validity of a notice given in that case.

But subsection (11) does not prevent the Tribunal from taking into account any such failure in considering a matter referred to it.

"Supervisory notice" means a notice or notification given in accordance with section—

55XA(1) or (5) (where subsection (6) applies);

55Y(4), (7) or (8)(b);

63ZC(4), (8) or (9)(b);

71H(2), (3), (4), (9) or (11)(a);

section 71V or 71X;

78(2) or (5);

78A(2) or (8)(b);

section 88F(2), (5) or (6)(b);

section 89V(2), (5) or (6)(b);

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

122I;

section 122IA;

131W;

section 137S(5) or (8)(a);

section 143O(3), (6) or (8)(b);

191B(1);

section 192U(1), (7) or (8);

197(3), (6) or (7)(b);

259(3), (8) or (9)(b);

261Z1(3), (8) or (9)(b);

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

section 271M(3), (6) or (7)(b);

282(3), (6) or (7)(b);

301J(1);

309R (5), (8) or (10)(b);

321(2) or (5);

Section 395: The FCA's and PRA's procedures.

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