FSA gets beefed up enforcement powers
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The Financial Services Authority is implementing new powers granted by Financial Services Act 2010 which allows it to suspend firms or individuals who have carried out controlled functions without the necessary approval by the FSA.
In its consultation paper the FSA says it received feedback that said where an individual performed a controlled function without approval, it may be more appropriate to take action against a firm, rather than the individual, especially where the firm decides which members of staff it should obtain approval for.
But it says: “We have clarified that this may be a relevant factor,which we would take into account in deciding whether to take action against the individual. We have made a few other minor amendments, but otherwise we are proceeding with the proposed policy for the non-approved persons penalty power.”
The FSA can also use its power to impose financial penalties on individuals who have carried out controlled functions without the necessary approval from the FSA.
The new powers allow it to gather information in relation to financial stability from specified categories of both authorised and unauthorised persons to help identify potential threats to the UK financial market.
