The following Financial Services guidance note Produced in partnership with Sarah Clarke of 3 Serjeants’ Inn provides comprehensive and up to date legal information covering:
The Financial Services and Markets Act 2000 (FSMA 2000) grants the PRA statutory powers to discipline PRA-authorised firms in the event that regulatory requirements have been breached. These powers broadly divide into the following categories:
Supervisory—the PRA has a variety of formal supervisory powers such as the ability to vary a PRA-authorised firm’s permissions to undertake certain regulated activities, or require a firm to undertake or stop an action. [The PRA can also approve (subject to conditions) an application for an individual to perform a senior (insurance) management function.]
Disciplinary—where a firm fails to comply with regulations, for example by failing to comply with the Fundamental rules in the PRA Rulebook, the PRA cmay use its disciplinary or enforcempent powers to impose financial penalties or publish public censures.
When established in April 2013, the PRA anticipated that it would use its powers to secure ex ante, preventative or remedial action as action to address emerging risk. However, the PRA has made use of its disciplinary and enforcement powers since its inception. A list of of PRA enforcement action can be found on the FCA and PRA enforcement action tracker—2019 which provides details of the subject of the action and penalty. The PRA states that enforcement and disciplinary action is designed to send a clear signal
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