Financial Services and Markets Act 2000, section 206

Financial penalties

Part XIV Disciplinary Measures

(1)If the [F1545 appropriate regulatorF1545] considers that an authorised person has contravened [F1546a relevant requirement imposed on the person,F1546] it may impose on him a penalty, in respect of the contravention, of such amount as it considers appropriate.

[F1547 (1A)If the FCA considers that a person other than an authorised person has contravened a relevant Part 5A requirement imposed on the person, it may impose on the person a penalty, in respect of the contravention, of such amount as it considers appropriate.F1547]

(2)F1548. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)A penalty under this section is payable to the [F1549regulator that imposed the penaltyF1549] .

Read section 206 in the full Act → Definitions (7) Cases (10)

Definitions used in section 206

the appropriate regulator

(3) The PRA is “the appropriate regulator” in the case of a contravention of—

(a)a requirement that is imposed under any provision of this Act by the PRA;

(b)a requirement under section 56(6) where the authorised person concerned is a PRA-authorised person and the prohibition order concerned is made by the PRA;

(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)a requirement under section 62A(2) where the revised statement of responsibilities is to be provided to the PRA only;

(e)a requirement under section 64B(2) or (5) where the conduct rules concerned are made by the PRA;

(f)a requirement under section 64C(1) to notify the PRA that disciplinary action has been taken.

(fa)a requirement imposed by regulation 8A(2) of the Securitisation Regulations 2024 where the institutional investor concerned is a PRA-authorised person;

(g)a requirement imposed by regulation 38 of the Securitisation Regulations 2024 on a PRA-authorised person in a case where the temporary prohibition imposed under regulation 37(1) or (2) of those Regulations was imposed by the PRA.

Defined in s.204A(3) · see it in the full Act

(4) In the case of a contravention of a requirement that is imposed by a qualifying EU provision, “the appropriate regulator” for the purpose of any provision of this Part is whichever of the PRA or the FCA (or both) is specified by the Treasury by order in relation to the qualifying EU provision for the purposes of that provision of this Part.

Defined in s.204A(4) · see it in the full Act

(6) The FCA is “the appropriate regulator” in the case of a contravention of any other requirement imposed—

(a)by or under this Act;

(aza)by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section 28B or the asset allocation requirement in section 28C,

(aa)by regulations under section 11 of the Civil Liability Act 2018;

(ab)by or under the Securitisation Regulations 2024;

(ac)by small pots regulations within the meaning of Chapter 2 of Part 2 of the Pension Schemes Act 2026;

(b)by the Alternative Investment Fund Managers Regulations 2013; or

(c)by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.

Defined in s.204A(6) · see it in the full Act

(7) The Treasury may by order amend the provisions defining “the appropriate regulator”.

Defined in s.204A(7) · see it in the full Act

(3A) Either the PRA or the FCA is “the appropriate regulator” in the case of a contravention of—

(a)a requirement under section 59(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

(b)a requirement under section 60A(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

(ba)a requirement under section 62A(2) where the revised statement of responsibilities is to be provided to the FCA and the PRA;

(c)a requirement under section 63(2A) where the approval concerned is within section 63(1A)(a);

(d)a requirement under section 63E(1) where the authorised person concerned is a PRA-authorised person and the function concerned is of a description specified in rules made by the PRA;

(e)a requirement under section 63F(1), (2), (4), (6) or (7) where the authorised person concerned is a PRA-authorised person and the certificate concerned relates to a function of a description specified in rules made by the PRA.

Defined in s.204A(3A) · see it in the full Act
appropriate regulator

(5) In the case of a contravention of a requirement where the contravention constitutes an offence, the “appropriate regulator” is whichever of the PRA or the FCA has power to prosecute the offence (see section 401).

Defined in s.204A(5) · see it in the full Act

(11) The FCA is the “appropriate regulator” in the case of a contravention of any other requirement , other than a case falling within paragraph 26 of Schedule 17A .

Defined in s.380(11) · see it in the full Act
authorised person

“authorised person” has the meaning given in section 31(2);

Defined in s.417(1) · see it in the full Act

(2) In this Act “authorised person” means a person who is authorised for the purposes of this Act.

Defined in s.31(2) · see it in the full Act
relevant requirement

(3) For the purposes of that power, “relevant requirement” is to be read in accordance with paragraph 26(2) of this Schedule (subject to sub-paragraph (3A)) .

Defined in Sch.17A para.28(3) · see it in the full Act

(2) “Relevant requirement” means a requirement imposed—

(a)by or under this Act, ...

(aa)by regulations under section 11 of the Civil Liability Act 2018,

(aza)by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section 28B or the asset allocation requirement in section 28C,

(ab)by or under the Securitisation Regulations 2024,

(ac)by small pots regulations within the meaning of Chapter 2 of Part 2 of the Pension Schemes Act 2026,

(b)by a qualifying provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order , ...

(c)by the Alternative Investment Fund Managers Regulations 2013 , or

(d)by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.

Defined in s.204A(2) · see it in the full Act
the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act
relevant Part 5A requirement

“relevant Part 5A requirement” is to be read in accordance with section 71T(2);

Defined in s.417(1) · see it in the full Act

(2) In this Act “relevant Part 5A requirement” means, in relation to a provision of this Act listed in the first column of the Table in Part 2 of Schedule 6C, a requirement that—

(a)is imposed by virtue of any of the designated activity regulations specified in the corresponding entry in the second column, and

(b)is of any of the descriptions specified in the corresponding entry in the third column.

Defined in s.71T(2) · see it in the full Act
regulator

“regulator” has the meaning given in section 3A(2);

Defined in s.417(1) · see it in the full Act

Cases considering section 206 (10)

Financial Services Authority v Fox Hayes (a firm)

[2009] EWCA Civ 76 · 17 February 2009

Applying the Authority’s power to impose an appropriate penalty, the court assessed seriousness, recklessness and profits accrued. It fixed £954,770 as the amount otherwise appropriate, subject to remittal on liability and financial resources. (see paras [45]-[56])

Rangecourt SA & Ors The Financial Conduct Authority

[2026] UKUT 47 (TCC) · 3 February 2026

The Tribunal applied the penalty power and reduced the Bank’s penalty to £4m after assessing seriousness, mitigation and deterrence. (see paras [619]-[641])

Options UK Personal Pensions LLP v Financial Ombudsman Service Limited

[2024] EWCA Civ 541 · 20 May 2024

The regulatory penalty power illustrated that non-actionable Principles retain legal and regulatory consequences. (see para [76])

What each judgment says about section 206 is in the case-law panel in the full Act.

Explanatory note

413.This enables the Authority to impose a financial penalty where it establishes that there has been a contravention by an authorised person of any requirement imposed by or under the Act.

All the explanatory notes for the Act

Amendments and notes

17 notes from legislation.gov.uk

Amendments

  1. F1545Words in s. 206(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 12(2)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
  2. F1546Words in s. 206(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 12(2)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
  3. F1547S. 206(1A) inserted (14.1.2025) by The Financial Services and Markets Act 2000 (Designated Activities) (Supervision and Enforcement) Regulations 2025 (S.I. 2025/22), reg. 1(2), Sch. para. 14
  4. F1548S. 206(2) omitted (8.6.2010) by virtue of Financial Services Act 2010 (c. 28), ss. 10, 26(2)
  5. F1549Words in s. 206(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 12(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications

  1. C834Ss. 204A-209 modified by S.I. 2002/1775, reg. 12(1)(1A) (as substituted (24.3.2015) by The Electronic Commerce Directive (Financial Services and Markets) (Amendment) Order 2015 (S.I. 2015/852), arts. 1(2), 2(3))
  2. C850S. 206 excluded (1.12.2001) by S.I. 2001/3592, arts. 1(2), 107(1) (with art. 23(2))
  3. C851S. 206 modified (18.7.2002 for certain purposes and 21.8.2002 otherwise) by The Electronic Commerce Directive (Financial Services and Markets) Regulations 2002 (S.I. 2002/1775), regs. 1, 12(1)
  4. C852S. 206 applied (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), regs. 1, 71(1)(f)
  5. C853S. 206 applied (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), arts. 1(5), 23(2)(p) (with Pt. 4)
  6. C854S. 206 modified (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 51(2)(3)
  7. C855S. 206 modified (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 52(4)(5)
  8. C856S. 206 applied (31.5.2021) by The Civil Liability Act 2018 (Financial Conduct Authority) (Whiplash) Regulations 2021 (S.I. 2021/594), regs. 1, 2(5)(c)
  9. C857S. 206 applied (with modifications) (8.6.2023 for specified purposes, 7.10.2023 in so far as not already in force) by The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (S.I. 2023/612), art. 1(2), Sch. para. 19 (with art. 11)
  10. C858S. 206 applied (with modifications) (1.1.2026) by The Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 (S.I. 2025/1145), regs. 1(2), 13(4), 36(3)
  11. C859S. 206 applied (with modifications) (14.1.2025 for specified purposes, 13.7.2026 in so far as not already in force) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 24, 25, Sch. 1 Pts. 1, 2; S.I. 2026/587, reg. 2(b)
  12. C860S. 206 applied (14.1.2025 for specified purposes, 13.7.2026 in so far as not already in force) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 26(2); S.I. 2026/587, reg. 2(b)