Discipline and enforcement – approved persons and authorised firms

With authority goes responsibility; this month John Virgo, barrister and Philip Ryley, solicitor examine the FSA’s approach to disciplinary action against approved persons and authorised firms.

Discipline of approved persons

The Financial Services and Markets Act provides that the Authority may take action against an approved person if it appears to the Authority that he is guilty of misconduct and the Authority is satisfied that it is appropriate in all the circumstances for disciplinary action to be taken. [1] A person is “guilty of misconduct” if, while an approved person, he has either failed to comply with a Statement of Principle or he has been knowingly concerned in a contravention by a relevant authorised person of a requirement imposed by or under the Act.The reference to a “relevant authorised person” means the person on whose application approval was first given to the individual concerned. [2]