FCA Discpline

Question 1

What does the FCA have the power to do?

Answer 1

• Demand that the person being investigated on the FCA’s behalf has the power to answer questions and provide information
• demand that any person whether or not they are being investigated or are connected provide documents answer questions.
• If not complied they can apply for a Justice of the Peace for a search warrant to enter the property and seize documents or take copies

Question 2

If there is a breach FCA follow the following steps:

Answer 2

• Variation of a firms permissions, may reduce regulated activities or some or all of controlled functions
• Withdrawal of approval
• Injunction = If regulation contravened they can go to civil court - force selling of assets that they have misappropriated
• Restitution = If they have benefited FCA can demand any profit made by activity
• Redress = If they can prove customer has made losses they can request this but may be more appropriate ways to get this such as Financial Ombudsman or Financial Services Compensation Scheme
• Criminal prosecution when appropriate
  Disciplinary action: private warning, publish statement of misconduct or impose financial penalty.

Question 3

What other power does the FCA have?

Answer 3

• The power to provide a report by a skilled person to support its supervision and enforcement functions. They can directly appoint this person to collect or update information

Question 4

What are the consumer rights? Consumer Rights Act 2015

Answer 4

• Right to clear and honest information before they buy
• Right to get what they pay for
• Right to be supplied with goods that are fit for purpose and be provided with services that are performed with reasonable care and skill
  Right to have any faults corrected (free of charge) or a refund/replacement