reg 77 Power to impose civil penalties: suspension and removal of authorisation
(1) Paragraph (2) applies if the FCA is satisfied that a relevant person or a payment service provider has— (a) repeatedly or systematically failed to include the information it is required to include on the payer or the payee under Articles 4, 5 or 6 of the funds transfer regulation; (b) failed to implement effective risk-based procedures in breach of Articles 8 or 12 of the funds transfer regulation; (c) failed to comply with Articles 11, 12 or 16 of the funds transfer regulation, where the failure is a serious one; (d) repeatedly or systematically failed to retain records in breach of Article 16 of the funds transfer regulation; or (e) failed to comply with a relevant requirement. (2) The FCA may take one or more of the measures set out in sub-paragraphs (a) and (b)— (a) to cancel or suspend, for such period as it considers appropriate— (i) any permission which an authorised person has to carry on a regulated activity; (ii) the authorisation of a payment service provider as an authorised payment institution under the Payment Services Regulations 2017 ; (iii) the registration of a payment service provider as a small payment institution under the Payment Services Regulations 2017 ; (iv) the authorisation of a payment service provider as an authorised electronic money institution under the Electronic Money Regulations 2011 ; or (v) the registration of a payment service provider as a small electronic money institution under the Electronic Money Regulations 2011; (b) to impose, for such period as it considers appropriate, such limitations or other restrictions as it considers appropriate— (i) in relation to the carrying on of a regulated activity by an authorised person; (ii) on the authorisation of a payment service provider as a payment institution under the Payment Services Regulations 2017 ; (iii) on the registration of a payment service provider as a small payment institution under the Payment Services Regulations 2017 ; (iv) on the authorisation of a payment service provider as an electronic money institution under the Electronic Money Regulations 2011; or (v) on the registration of a payment service provider as a small electronic money institution under the Electronic Money Regulations 2011. (3) In paragraph (2)— (a) “ permission ” means any permission that the authorised person has, whether given (or treated as given) under Part 4A of FSMA ; (b) “ regulated activity ” has the meaning given by section 22 of FSMA ). (4) The period for which a suspension, limitation or other restriction is to have effect may not exceed 12 months. (5) A suspension may relate only to the carrying on of an activity in circumstances specified by the FCA when the suspension is imposed. (6) A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action. (7) The FCA may— (a) withdraw a suspension, limitation or other restriction; or (b) vary a suspension, limitation or other restriction so as to reduce the period for which it has effect or otherwise to limit its effect. (8) For the purposes of this regulation, “ appropriate ” means effective, proportionate and dissuasive.