Public censure by the FCA

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

  • Public censure by the FCA
  • Disciplinary powers of the FCA
  • What is a public censure?
  • What should the FCA consider before issuing a public censure?
  • How is a public censure issued?
  • Examples of public censures

Public censure by the FCA

Lexis®PSL Financial Services FCA/PRA 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.

Disciplinary powers of the FCA

The disciplinary powers of the Financial Conduct Authority (FCA) are found in Part XIV of the Financial Services and Markets Act 2000 (FSMA 2000). The FCA can discipline firms and individuals under Part XIV as follows:

  1. by issuing a public censure–FSMA 2000, s 205

  2. by giving a fine–FSMA 2000, s 206

  3. by suspending permission to carry on regulated activities–FSMA 2000, s 206A

The use of a public censure is an important regulatory tool. By imposing public censures the FCA is showing that it is upholding its regulatory standards and principles in maintaining market confidence and deterring financial crime. An increased public awareness of regulatory standards also contributes to the protection of consumers.

By issuing a public censure the FCA is aiming to change the behaviour of the recipient, and also to send a message out to similar firms engaged in comparable activities (and to achieve 'credible deterrence', which is its enforcement strategy). The FCA also aims to remove any financial

Popular documents