Section 56: Prohibition orders., Financial Services and Markets Act 2000

The FCA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—

an authorised person,

a person who is an exempt person in relation to that activity, or

a person to whom, as a result of Part 20, the general prohibition does not apply in relation to that activity.

The PRA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—

a PRA-authorised person, or

a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.

A "prohibition order" is an order prohibiting the individual from performing a specified function, any function falling within a specified description or any function.

A prohibition order may relate to—

a specified regulated activity, any regulated activity falling within a specified description or all regulated activities;

all persons falling within subsection (3A) or a particular paragraph of that subsection or all persons within a specified class of person falling within a particular paragraph of that subsection.

A person falls within this subsection if the person is—

an authorised person,

an exempt person, or

a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity.

An individual who performs or agrees to perform a function in breach of a prohibition order is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

In proceedings for an offence under subsection (4) it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.

A person falling within subsection (3A) must take reasonable care to ensure that no function of his, in relation to the carrying on of a regulated activity, is performed by a person who is prohibited from performing that function by a prohibition order.

The regulator that has made a prohibition order may, on the application of the individual named in the order, vary or revoke it.

If—

the FCA proposes to vary or revoke a prohibition order, and

as a result of the proposed variation or revocation, an individual—

will no longer be prohibited from performing a function of interest to the PRA, or

will be prohibited from performing such a function,

the FCA must consult the PRA before varying or revoking the order.

A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—

a PRA-authorised person, or

a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.

The PRA must consult the FCA before varying or revoking a prohibition order.

If—

the FCA proposes to vary or revoke a prohibition order which makes provision in relation to a recognised body, and

the FCA is not the appropriate regulator in relation to recognised bodies of that type,

the FCA must consult the appropriate regulator.

If the PRA proposes to vary or revoke a prohibition order which makes provision in relation to a recognised body, the PRA must consult the appropriate regulator in relation to recognised bodies of that type.

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"Specified" means specified in the prohibition order.

In this section—

"the appropriate regulator", in relation to a recognised body, has the meaning given by section 285A;
"recognised body" has the meaning given by section 313;
"specified" means specified in the prohibition order.

Section 56: Prohibition orders.

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