Moved by
Lord Deighton
13: Clause 24, page 37, line 45, at end insert—
“64B Rules of conduct: responsibilities of relevant authorised persons
(1) This section applies where a regulator makes rules under section 64A (“conduct rules”).
(2) Every relevant authorised person must—
(a) notify all relevant persons of the conduct rules that apply in relation to them, and
(b) take all reasonable steps to secure that those persons understand how those rules apply in relation to them.
(3) The steps which a relevant authorised person must take to comply with subsection (2)(b) include, in particular, the provision of suitable training.
(4) In this section “relevant person”, in relation to an authorised person, means—
(a) any person in relation to whom an approval is given under section 59 on the application of the authorised person, and
(b) any employee of the authorised person.
(5) If a relevant authorised person knows or suspects that a relevant person has failed to comply with any conduct rules, the authorised person must notify the regulator of that fact.
(6) In this section “employee”, in relation to an authorised person, has the same meaning as in section 64A.
(7) For the meaning of “relevant authorised person”, see section 71A.””
14: After Clause 24, insert the following new Clause—
“Requirement to notify regulator of disciplinary action
After section 64B of FSMA 2000 (inserted by section above) insert—
24
“64C Requirement for relevant authorised persons to notify regulator of disciplinary action
(1) If—
(a) a relevant authorised person takes disciplinary action in relation to a relevant person, and
(b) the reason, or one of the reasons, for taking that action is a reason specified in rules made by the appropriate regulator for the purposes of this section,
the relevant authorised person must notify that regulator of that fact.
(2) “Disciplinary action”, in relation to a person, means any of the following—
(a) the issuing of a formal written warning;
(b) the suspension or dismissal of the person;
(c) the reduction or recovery of any of the person’s remuneration.
(3) “The appropriate regulator” means—
(a) in relation to relevant authorised persons that are PRA-authorised persons, the FCA or the PRA;
(b) in relation to any other relevant authorised persons, the FCA.
(4) “Relevant person” has the same meaning as in section 64B.
(5) For the meaning of “relevant authorised person”, see section 71A.””