DEPP 6A.4 The interaction between the power to impose suspensions, restrictions, conditions, limitations or disciplinary prohibitions and the power to impose penalties or public censures

The deterrent effect and impact on a person of a combination of sanctions may be greater than where only a single sanction is imposed. The FCA will consider the overall impact and deterrent effect of the sanctions it imposes when determining the level of any penalty and the length of suspension, restriction, condition, limitation or disciplinary prohibition.

The FCA expects usually to take the following approach in respect of the interaction between sanctions:

1. (1)

   The FCA will determine which sanction, or combination of sanctions, is appropriate for the breach.

2. (2)

   If the FCA, following the approach set out in DEPP 6.2, considers it appropriate to impose a financial penalty, it will calculate the appropriate level of the financial penalty, following the approach set out in DEPP 6.5 to DEPP 6.5D.

3. (3)

   If the FCA, following the approach set out in DEPP 6A.2, considers it appropriate to impose a suspension, restriction, condition, limitation or disciplinary prohibition (or some combination of these),it will calculate the appropriate length of the period (or periods) of sanction, following the approach set out in DEPP 6A.3 or DEPP 6A.3A, as appropriate.

4. (4)

   Where the FCA considers it appropriate to impose a combination of sanctions, it will decide whether the combined impact on the person is likely to be disproportionate in respect to the breach and the deterrent effect of the sanctions.

5. (5)

   If the FCA considers the combined impact on the person is likely to be disproportionate, it will decide whether to reduce the period of suspension, restriction, condition, or disciplinary prohibition, and the amount of any financial penalty or both, so that the combined impact of the sanctions is proportionate in relation to the breach and the deterrent effect of the sanctions. The FCA will decide which sanction or sanctions to reduce after considering all the circumstances of the case.

6. (6)

   In deciding the final level of any financial penalty and the length of any period of suspension, restriction, condition, limitation or disciplinary prohibition, the FCA will also take into account any representations by the person that the combined impact will cause them serious financial hardship. The FCA will take the approach set out in DEPP 6.5D in assessing this.

The FCA may depart from the approach set out in DEPP 6A.4.2 G. For example, the FCA may at the outset consider that a financial penalty is the only appropriate sanction for a breach but, having determined the appropriate level of financial penalty, may consider it appropriate to reduce the amount of the financial penalty for serious financial hardship reasons. In such a situation, the FCA may consider it appropriate to impose a suspension, restriction, condition, limitation or disciplinary prohibition even if the FCA at the outset did not consider such a sanction to be appropriate. The FCA will take into account whether the person would suffer serious financial hardship in deciding the length of the period of suspension, restriction, condition, limitation or disciplinary prohibition and may decide not to impose such a measure if it considers such action would result in serious financial hardship.