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Discipline and dismissal: financial services

Updating authors: Nick Thorpe and Neil Johnston
Consultant editors: Bridget Barker and Paul Ellison

Summary

  • Disciplinary action, including dismissal, against individuals in regulated firms is subject to the normal minimum requirements under general employment law principles. (See Overview)
  • Dismissal or disciplinary action against an approved person may trigger requirements to notify the Financial Conduct Authority (FCA) and/or the Prudential Regulation Authority (PRA). (See General notification requirements)
  • An investigation into an individual's conduct may reveal an issue that, if serious enough to have a regulatory impact, will need to be disclosed by the firm to the FCA and/or PRA. (See General notification requirement)
  • If an approved person is subject to disciplinary action, such as suspension or dismissal, the FCA and/or PRA should be notified within one business day of such action being taken. (See Suspension)
  • If potential misconduct by an individual has been identified, FCA- and PRA-regulated firms should consider whether or not it is appropriate to remove the individual from carrying out his or her controlled function while an investigation takes place. (See Suspension)
  • The FCA and/or PRA may choose to launch its own investigation into an individual's misconduct or they may require the firm to commission a skilled persons report into the problem. (See Investigation)
  • It is important not to assume that any breach of the FCA and/or PRA rules or Principles will automatically justify dismissal. (See Disciplinary action)
  • An individual may decide to resign or seek to negotiate an agreed exit to avoid an investigation and potential dismissal. (See Resignation or agreed exit)