DEC 1
Application,
Purpose and Introduction
DEC 1.1
Application and Purpose
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Application
DEC 1.1.1
See Notes
This
manual gives guidance on
the FSA's decision
making and other procedures for giving statutory
notices listed in DEC 2 Annex 1 G and DEC
3 Annex 1 G. This manual also gives guidance on the FSA's procedure for using its powers under
Part XXIV of the Act (Insolvency),
Part XXV of the Act (Injunctions
and restitution), Part XXVII of the Act (Criminal
Offences) and the Unfair
Terms Regulations. It also gives guidance on the FSA's procedures for using certain similar
powers with respect to insolvency and criminal offences under the Building
Societies Act 1986, the Friendly Societies Acts 1974 and 1992, the Credit
Unions Act 1979 and the Industrial and Provident Societies Act 1965. It is
relevant to firms, approved persons, applicants
for Part IV permission, persons for whom an application
for approval under section 59 of the Act has
been made,
persons that
are subject to the requirements set out in the Part 6 rules, and other persons, whether or not they are regulated
by the FSA.
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Purpose
DEC 1.1.2
See Notes
Section 395 of the Act (The FSA's procedures) requires the FSA to publish a statement
of its procedure for the giving of statutory
notices. The purpose of the Decision making manual (DEC) is to fulfil this
obligation.
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DEC 1.1.3
See Notes
DEC
4.6.1 G and DEC
4.6.2 G set
out the FSA's policy
on the procedure to be followed:
(1) if the FSA decides to use its:
(a) powers to apply to the civil courts for
insolvency orders, injunctions, restitution orders and collective investment scheme related orders;
or
(b) powers to prosecute criminal offences;
and
(2) if the FSA decides to discontinue any proceedings
begun by the use of these powers.
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DEC 1.1.4
See Notes
DEC
4.6.2A G and DEC
4.6.2B G set out the FSA's policy on the procedure
to be followed:
(1) if the FSA decides to use its powers to prosecute
criminal offences under the Building Societies Act 1986, the Friendly Societies
Acts 1974 and 1992, the Credit Unions Act 1979 and the Industrial and Provident
Societies Act 1965, in each case as amended; and
(2) if the FSA decides to discontinue any proceedings
begun by the use of these powers.
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DEC 1.2
Introduction
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DEC and the other manuals
DEC 1.2.1
See Notes
The Authorisation manual (AUTH), the Supervision
manual (SUP),
the Enforcement manual (ENF)
and the Decision making manual (DEC)
form the regulatory processes part of the Handbook:
(1)
AUTH sets
out the relationships between the FSA and
applicants for Part IV
permission and persons wishing
to exercise EEA rights, Treaty rights or UCITS directive rights;
(2)
SUP sets
out the relationship between the FSA and authorised persons (referred
to in the Handbook as firms). As a general rule,
material that is of a continuing relevance after authorisation is in SUP;
(3)
ENF describes
the FSA's enforcement
powers under the Act and
sets out its policies for using those powers; and
(4)
DEC is
principally concerned with, and sets out, the FSA's decision making procedures for decisions
that involve the giving of statutory
notices.
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Statutory notices
DEC 1.2.2
See Notes
The Act designates
certain notices as warning
notices, decision
notices or supervisory
notices ('statutory
notices') for which there are certain specified procedures,
actions and protections.DEC
1.2.3 G summarises the statutory
notices and related notices and provides references to where
they are described in the Act.
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DEC 1.2.3
See Notes
Summary of statutory and related notices
| Reference to the Act | Notice | Description | Further information |
| Section 387 | Warning notice | A warning notice gives the recipient details about action that the FSA proposes to take and about the right to make representations. | DEC 2.2 |
| Section 388 | Decision notice | A decision notice gives the recipient details about action that the FSA has decided to take. | DEC 2.3.1 G to DEC 2.3.5 G |
| Section 388 | Further decision notice | A further decision notice gives the recipient details about different action from that set out in a decision notice and which the FSA has decided to take concerning the same matter covered by the decision notice . The FSA may give a further decision notice only if the person to whom the original decision notice was given consents. | DEC 2.3.6 G to DEC 2.3.7 G |
| Section 389 | Notice of discontinuance | A notice of discontinuance identifies proceedings set out in a warning notice or decision notice and which are not being taken or are being discontinued. | DEC 2.3.8 G to DEC 2.3.10 G |
| Section 390 | Final notice | A final notice sets out the terms of the action that the FSA has decided on and the date it takes effect. | DEC 2.3.11 G to DEC 2.3.12 G |
| Section 395(13) | Supervisory notices | A supervisory notice gives the recipient details about action that the FSA has taken or proposes to take. | Statutory notice procedure: Supervisory notice procedure |
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Decision making on giving statutory notices
DEC 1.2.4
See Notes
The FSA has
different decision making procedures depending on whether or not a statutory notice is given.
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DEC 1.2.5
See Notes
Events leading to the giving of a statutory notice are
covered in AUTH, SUP, ENF and COLL or CIS. DEC 2 Annex 1 G and DEC
3 Annex 1 G list the relevant
references.
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DEC 1.2.6
See Notes
Decisions whether to give a statutory notice and
decisions associated with the statutory
notice once it has been given (a 'statutory notice associated decision', see DEC
4.1.2 G) will be taken by a 'decision maker'. References
to the 'decision maker' concerning statutory
notice decisions refer to decisions taken by:
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DEC 1.2.7
See Notes
DEC 4.1 describes the allocation
of decisions between the RDC and executive procedures. DEC 4.2 provides further information on the RDC. DEC 4.3 provides further information on executive procedures.
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Other decisions
DEC 1.2.8
See Notes
The FSA will
make regulatory decisions falling outside section 395 of the Act. These will include
exercise of statutory powers which do not require statutory notices to be given, for example:
when the FSA grants
an application for a Part
IV permission on the terms applied for (such decisions are made by internal
staff procedures as described in AUTH
8.2.5 G to AUTH
8.2.8 G); when the FSA grants other applications;
decisions on applications for waivers;
decisions to give individual guidance;
and decisions generally in the course of the FSA's oversight of regulated institutions.
They also include decisions on recommendations by FSA staff to the RDC.
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DEC 1.2.9
See Notes
The FSA's general
policy is that regulatory decisions should be taken at a level of seniority
which is appropriate to the decision having regard to such factors as:
(1) the significance of the decision to those
who would be affected by it;
(2) its novelty in the light of stated policy
and established practice;
(3) the complexity of the relevant considerations;
(4) the range of alternative options; and
(5) the extent to which the facts relating
to the decision are or may be disputed.
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DEC 1.2.10
See Notes
The FSA expects
that most decisions will be made by individuals accountable through line management
to the Board within the management structure of the FSA. Where appropriate, decisions will be
made collectively by a group of staff. Decisions will be made within the stated
policies of the FSA and
in accordance with the Act and
other legal requirements.
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