PRA enforcement essentials—suspensions, restrictions and financial penalties

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • PRA enforcement essentials—suspensions, restrictions and financial penalties
  • PRA Enforcement Priorities
  • PRA Approach to Enforcement: statutory statements of policy and procedure
  • Further PRA Resources on PRA Enforcement
  • Taking action—general principles
  • PRA objectives and regulatory principles
  • FCA and PRA Co-ordination
  • Determining whether the PRA will take action for a penalty
  • Financial penalties—five-step framework
  • Approach to particular types of enforcement action
  • More...

PRA enforcement essentials—suspensions, restrictions and financial penalties

Lexis®PSL Financial Services Enforcement Database: This incorporates detailed information on all substantive FCA and PRA Final Notices and, where available, Decision Notices from 2014 to 2020. The Database, available here, may be searched and filtered by rule breach, keyword, sector, date, seriousness, aggravating and mitigating factors, financial penalty, and other actions such as appeals.

PRA Enforcement Priorities

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:

  1. 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

  1. 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 may use its disciplinary or enforcement 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. Details of PRA enforcement action can be

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