RCB 6 Warning and decision notices

This chapter contains guidance for issuers and owners and other persons subject to the RCB Regulations.

The purpose of this chapter is to set out the FCA's statement of the procedure which it proposes to follow on giving warning notices and decision notices in relation to regulated covered bonds.

When making a decision on an application for registration under the RCB Regulations, or in relation to material changes to the contractual terms of the regulated covered bond, or in relation to a change of owner, or when seeking to use direction, revocation or penalty powers, the RCB Regulations require the FCA to give the subject of the intended action a warning notice and a decision notice. The recipient of a warning notice has the right to make representations to the decision maker, and may refer the decision to give a decision notice to the Tribunal.

Regulation 44 of the RCB Regulations (Warning notices and decision notices) applies Part XXVI of the Act (Notices) in respect of notices that we give under the RCB Regulations. This means that the provisions of section 393 of the Act (Third party rights) and section 394 of the Act (Access to Authority material) apply to penalty procedures under the RCB Regulations and that, if the matter is not referred to the Tribunal, then upon taking the action to which a decision notice relates, the FCA will issue the subject of the decision notice a final notice. The FCA is required to publish such details about the matter to which a final notice relates as it considers appropriate.

DEPP 2 Annex 1 G identifies the relevant decision maker in relation to warning notices and decision notices issued by the FCA under the RCB Regulations.

Decisions on applications for registration, in relation to material changes to contractual terms of the regulated covered bond, or in relation to a change of owner, or decisions to issue a direction under the RCB Regulations or to revoke an issuer's registration, will be taken under executive procedures following the process set out in DEPP 4.

Decisions to impose a financial penalty under regulation 34 of the RCB Regulations will be taken by the RDC under the procedure set out in DEPP 3.2 or, where relevant, DEPP 3.3.