TC09647 - [2025] UKFTT 01124 (TC)

Insofar as relevant Regulation 76 reads:

“Power to impose civil penalties: fines and statements

76.

—(1) Paragraph (2) applies if a designated supervisory authority is satisfied that any person (“P”) has contravened a relevant requirement imposed on that person.

(2)

A designated supervisory authority may do one or both of the following—

(a)

impose a penalty of such amount as it considers appropriate on P;

(b)

publish a statement censuring P.

…

(4)

A designated supervisory authority must not impose a penalty on P under this regulation for contravention of a relevant requirement if the authority is satisfied that P took all reasonable steps and exercised all due diligence to ensure that the requirement would be complied with.

…

(6)

In deciding whether P has contravened a relevant requirement, the designated supervisory authority must consider whether at the time P followed—

…

(b)

any relevant guidance which was at the time—

(i)

issued by the FCA; or

(ii)

issued by any other supervisory authority or appropriate body and approved by the Treasury.

…

(8)

For the purposes of this regulation—

(a)

‘appropriate’ means (other than in references to an appropriate body) effective, proportionate and dissuasive;

(b)

‘designated supervisory authority’ means the FCA or the Commissioners.”

Insofar as relevant Regulation 83 reads:

“The Commissioners: disciplinary measures (procedure)

83.

—(1) When determining the type of sanction, and level of any penalty, to be imposed on a person (“P”) under regulation 76 or 78, the Commissioners must take into account all relevant circumstances, including where appropriate—

(a)

the gravity and the duration of the contravention or failure;

(b)

the degree of responsibility of P;

(c)

the financial strength of P;

(d)

the amount of profits gained or losses avoided by P;

(e)

the losses for third parties caused by the contravention or failure;

(f)

the level of co-operation of P with the Commissioners;

(g)

previous contraventions or failures by P; and

(h)

any potential systemic consequences of the contravention or failure.

…

(2)

Where the Commissioners decide to impose a penalty or publish a statement under regulation 76….the Commissioners must give P a notice in accordance with paragraph (3).

(3)

A notice must be given of—

(a)

the Commissioners' decision—

(i)

to impose a penalty, and the amount of the penalty;

(ii)

to publish a statement, and the terms of the statement;…”

Insofar as relevant Regulation 85 reads:

“Publication: the Commissioners

85.

—(1) Where the Commissioners give a notice under regulation 83, the Commissioners must publish on their official website such information about the matter to which the notice relates as they consider appropriate, subject to paragraphs (2) to (8)….”

Regulation 99(1)(e) provides that an appeal may be made to the Tribunal in respect of any decision in terms of “regulation 76 to impose a penalty or publish a censuring statement”.

Regulation 99(4) reads:

“(4)

The tribunal hearing an appeal under paragraph (1) has the power to—

(a)

quash or vary any decision of the Commissioners, including the power to reduce any penalty to such amount (including nil) as the tribunal thinks appropriate; and

(b)

substitute the tribunal's own decision for any decision quashed on appeal.”