# Financial Services Act 2012, Section 13: Prohibition orders


(1) Section 56 of FSMA 2000 (performance of regulated activities: prohibition orders) is amended as follows.
(2) For subsection (1) substitute—
“(1) The FCA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—
(a) an authorised person,
(b) a person who is an exempt person in relation to that activity, or
(c) a person to whom, as a result of Part 20, the general prohibition does not apply in relation to that activity.
(1A) The PRA may make a prohibition order if it appears to it that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by—
(a) a PRA-authorised person, or
(b) a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.”
(3) In subsection (2), for “The Authority may make an order (“a prohibition order”)” substitute “ A “prohibition order” is an order ”.
(4) In subsection (3), for paragraph (b) substitute—
“(b) all persons falling within subsection (3A) or a particular paragraph of that subsection or all persons within a specified class of person falling within a particular paragraph of that subsection.”
(5) After subsection (3) insert—
“(3A) A person falls within this subsection if the person is—
(a) an authorised person,
(b) an exempt person, or
(c) a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity.”
(6) In subsection (6), for “An authorised person” substitute “ A person falling within subsection (3A) ”.
(7) In subsection (7)—
(a) for “The Authority” substitute “ The regulator that has made a prohibition order ”, and
(b) for “a prohibition order” substitute “ the order ”.
(8) After subsection (7) insert—
“(7A) If—
(a) the FCA proposes to vary or revoke a prohibition order, and
(b) as a result of the proposed variation or revocation, an individual—
(i) will no longer be prohibited from performing a function of interest to the PRA, or
(ii) will be prohibited from performing such a function,
the FCA must consult the PRA before varying or revoking the order.
(7B) A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—
(a) a PRA-authorised person, or
(b) a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.
(7C) The PRA must consult the FCA before varying or revoking a prohibition order.”
(9) Omit subsection (8).
(10) Section 57 of FSMA 2000 (prohibition orders: procedure and right to refer to Tribunal) is amended as follows.
(11) In subsections (1) and (3), for “the Authority” substitute “ a regulator ”.
(12) At the end insert—
“(6) If—
(a) the FCA proposes to make a prohibition order, and
(b) as a result of the proposed order, an individual will be prohibited from performing a function of interest to the PRA,
the FCA must consult the PRA before giving a warning notice under this section.
(7) A function is of interest to the PRA if it is performed in relation to a regulated activity carried on by—
(a) a PRA-authorised person, or
(b) a person who is an exempt person in relation to a PRA-regulated activity carried on by the person.
(8) The PRA must consult the FCA before giving a warning notice under this section.”

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Source: https://www.legislation.gov.uk/ukpga/2012/21/section/13 (the official version)
Page: https://openlegislation.uk/financial-services-act-2012/section-13
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.