Financial Services and Markets Act 2000, section 66

Disciplinary powers

Part V Performance of Regulated Activities

(1)[F494 A regulatorF494] may take action against a person under this section [F495(whether or not it has given its approval in relation to the person)F495] if—

(a)it appears to the [F496regulatorF496] that he is guilty of misconduct; and

(b)the [F497regulatorF497] is satisfied that it is appropriate in all the circumstances to take action against him.

[F498 (1A)For provision about when a person is guilty of misconduct for the purposes of action by a regulator—

(a)see section 66A, in the case of action by the FCA, and

(b)see section 66B, in the case of action by the PRA.F498]

F499 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F500 (2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)If the [F501regulatorF501] is entitled to take action under this section against a person, [F502it may do one or more of the following—F502] —

(a)impose a penalty on him of such amount as it considers appropriate;

[F503 (aa)suspend, for such period as it considers appropriate, any approval of the performance by him of any function to which the approval relates;

[F504 (ab)impose, for such period as it considers appropriate, any conditions in relation to any such approval which it considers appropriate;

(ac)limit the period for which any such approval is to have effect;F504]

(b)publish a statement of his misconduct.

[F505 (3A)The period for which a suspension or [F506 conditionF506] is to have effect may not exceed two years.

(3B)A suspension [F507 , condition or limitationF507] may have effect in relation to part of a function.

(3C)A [F508 conditionF508] may, in particular, be imposed so as to require any person to take, or refrain from taking, specified action.

(3D)[F509 The regulator taking action under this sectionF509] may—

(a)withdraw a suspension [F510 , condition or limitationF510] ; F511...

(b)vary a suspension or [F512 conditionF512] so as to reduce the period for which it has effect or otherwise to limit its effect.

[F513 (c)vary a limitation so as to increase the period for which the approval is to have effect.F513,F505]]

(4)[F514 A regulatorF514] may not take action under this section after the end of the [F515 relevant periodF515] beginning with the first day on which [F516 the regulatorF516] knew of the misconduct, unless proceedings in respect of it against the person concerned were begun before the end of that period.

(5)For the purposes of subsection (4)—

(a)[F517 a regulatorF517] is to be treated as knowing of misconduct if it has information from which the misconduct can reasonably be inferred; and

(b)proceedings against a person in respect of misconduct are to be treated as begun when a warning notice is given to him under section 67(1).

[F518 (5ZA) “The relevant period” is—

(a)in relation to misconduct which occurs before the day on which this subsection comes into force, the period of 3 years, and

(b)in relation to misconduct which occurs on or after that day, the period of 6 years.F518]

[F519 (5A) “Approval” means an approval given under section 59. F519]

F520 (6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F521 (7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F522 (8)In relation to any time while a suspension is in force under subsection (3)(aa) in relation to part of a function, any reference in section 59 or 63A to the performance of a function includes the performance of part of a function.

(9)If at any time a [F523 conditionF523] imposed under subsection (3)(ab) is contravened, the approval in relation to the person concerned is to be treated for the purposes of sections 59 and 63A as if it had been withdrawn at that time.F522,F503]]

Read section 66 in the full Act → Definitions (5) Cases (17)

Definitions used in section 66

regulator

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

Defined in s.417(1) · 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
the PRA

“the PRA” means the Prudential Regulation Authority;

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

(4) Neither section 2AB(3)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZB para.31(4) · see it in the full Act

(2A) The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act ; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.

Defined in Sch.1ZA para.23(2A) · see it in the full Act

(4) Neither section 1A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZA para.23(4) · see it in the full Act
Specified

(5) “Specified” means specified in an order made by the Treasury.

Defined in s.22(5) · see it in the full Act

Cases considering section 66 (17)

Jeffery v The Financial Services Authority

[2012] EWCA Civ 178 · 8 February 2012

Applies the statutory limitation framework governing when the Authority may take action after acquiring knowledge of misconduct. The Court considered the provision in deciding whether the timing and source of the FSA’s knowledge required further evidence. (see paras [21]–[29]) Applies the limitation period within which the Authority may take action after the first day on which it knew of misconduct, subject to proceedings being begun within that period. The provision made the timing of the FSA’s knowledge material to the summons application. (see paras [21]–[29]) Applies the rules treating the Authority as knowing of misconduct when it has information from which misconduct can reasonably be inferred, and treating proceedings as begun when a warning notice is given. Those matters required consideration of the information supplied by the police. (see paras [21]–[29])

Davies & Ors v Financial Services Authority

[2003] EWCA Civ 1128 · 30 July 2003Limits

The disciplinary procedure and the prohibition procedure have different statutory criteria, but both are regulatory and may respond to past misconduct. Section 66 is not the exclusive means of addressing such conduct (see paras [22]; [28]). Expiry of the two-year limitation period prevented disciplinary action under section 66 but did not bar the distinct prohibition power under section 56 (see paras [17]; [22]).

Robin Crispin Odey v The Financial Conduct Authority

[2026] UKUT 351 (TCC) · 14 September 2026Defines

The Tribunal applied the Authority’s disciplinary power to determine whether a penalty was appropriate, and fixed the penalty at £1,529,374. (see paras [1287]-[1294]; [1350]-[1392]) The Tribunal applied the Authority’s power to take disciplinary action where misconduct is established and such action is appropriate. (see para [1293]) The Tribunal applied the statutory definition of misconduct by reference to section 66A. (see para [1293])

What each judgment says about section 66 is in the case-law panel in the full Act.

Explanatory note

147.This section gives the Authority a power to take disciplinary action against an approved person when the two conditions set out in subsection (1) have been met.  The Authority must be satisfied that it is appropriate to take action against him.  In this context, the Authority would have to have regard, among other things, to its regulatory objectives set out in Part I.  The Authority would need to take into account whether disciplinary action against the approved person, rather than action against the authorised person for whom he works, would be appropriate, taking into account the responsibility of the senior management of the firm for the conduct of the firm and its employees.  A second important factor would be to ensure that any action, or any particular course of action, it takes should be proportionate to the nature and seriousness of the misconduct.

148.In addition, the Authority must be satisfied that the person has engaged in misconduct, as defined in subsection (2).  One possibility is that the approved person has acted in breach of a statement of principle, issued under section 64, as evidenced by a breach of a code of practice.  The other possible situation is that an approved person has been knowingly involved in a breach by the authorised firm of rules made by the Authority or of any requirement imposed by or under the Act.

149.Subsection (3) gives the Authority powers to impose a penalty on an approved person or to make a public statement about their misconduct.

150.Subsection (4) restricts the period during which the Authority may take action under this section to a period of two years after the Authority became aware of the misconduct.  This period reflects the time available to the Secretary of State to bring disqualification proceedings against a company director under the Company Directors Disqualification Act 1986.

All the explanatory notes for the Act

Amendments and notes

43 notes from legislation.gov.uk

Amendments

  1. F494Words in s. 66(1) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(2)(a)(i) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  2. F495Words in s. 66(1) inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(2)(a)(ii) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  3. F496Word in s. 66(1)(a) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(2)(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  4. F497Word in s. 66(1)(b) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(2)(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  5. F498S. 66(1A) inserted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 32(1)(a), 148(5); S.I. 2015/490, art. 2(1)(c) (as amended by S.I. 2015/2055, art. 2(3) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))
  6. F499S. 66(2) omitted (7.3.2016) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), ss. 32(1)(b), 148(5); S.I. 2015/490, art. 2(1)(c) (as amended by S.I. 2015/2055, art. 2(3) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))
  7. F500S. 66(2A) omitted (7.3.2016) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), ss. 32(1)(b), 148(5); S.I. 2015/490, art. 2(1)(c) (as amended by S.I. 2015/2055, art. 2(3) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))
  8. F501Word in s. 66(3) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(4) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  9. F502Words in s. 66(3) inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 12(2)(a), 26(2)(b)
  10. F503S. 66(3)(aa)(ab) inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 12(2)(b), 26(2)(b)
  11. F504S. 66(3)(ab)(ac) substituted for s. 66(3)(ab) (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(2); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  12. F505S. 66(3A)-(3D) inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 12(3), 26(2)(b)
  13. F506Word in s. 66(3A) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(3); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  14. F507Words in s. 66(3B) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(4); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  15. F508Word in s. 66(3C) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(5); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  16. F509Words in s. 66(3D) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(5) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  17. F510Words in s. 66(3D)(a) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(6)(a); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  18. F511Word in s. 66(3D)(a) omitted (7.3.2016) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(6)(b); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  19. F512Word in s. 66(3D)(b) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(6)(c); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  20. F513S. 66(3D)(c) inserted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(6)(d); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.
  21. F514Words in s. 66(4) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(6)(a) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  22. F515Words in s. 66(4) substituted (25.7.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 28(5), 148(5); S.I. 2014/1819, art. 2(1)(c)
  23. F516Words in s. 66(4) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(6)(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  24. F517Words in s. 66(5)(a) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 5 para. 14(7) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  25. F518S. 66(5ZA) inserted (25.7.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 28(6), 148(5); S.I. 2014/1819, art. 2(1)(c)
  26. F519S. 66(5A) inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 24(1), 26(2)(d)(e), Sch. 2 para. 8(2)
  27. F520S. 66(6) omitted (7.3.2016) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), ss. 32(1)(b), 148(5); S.I. 2015/490, art. 2(1)(c) (as amended by S.I. 2015/2055, art. 2(3) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))
  28. F521S. 66(7) omitted (7.3.2016) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), ss. 32(1)(b), 148(5); S.I. 2015/490, art. 2(1)(c) (as amended by S.I. 2015/2055, art. 2(3) and with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))
  29. F522S. 66(8)(9) inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 24(1), 26(2)(d)(e), Sch. 2 para. 8(4)
  30. F523Word in s. 66(9) substituted (7.3.2016) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 5(7); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660)) this amendment is subject to savings and/or transitional provisions, see the commentary.

Modifications

  1. C263S. 66 modified (1.12.2001) by S.I. 2001/2657, arts. 1(1), 9 (which was revoked (8.10.2001) by S.I. 2001/3083, arts. 1(2), 23); S.I. 2001/3538, art. 2(1)
  2. C264Ss. 66-70 applied (with modifications) (1.11.2009) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2)(c), 95, Sch. 5 para. 1 (with reg. 3) (as amended (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 155(6)(a) (with Sch. 2 para. 156))
  3. C265Ss. 66-70 applied (with modifications) (11.2.2010) by The Cross-Border Payments in Euro Regulations 2010 (S.I. 2010/89), reg. 19, Sch. para. 1
  4. C266Ss. 66-70 applied (with modifications) (15.1.2013) by The Payments in Euro (Credit Transfers and Direct Debits) Regulations 2012 (S.I. 2012/3122), reg. 1, Sch. para. 1 (as amended (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 248(6)(a))
  5. C267S. 66 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services Act 2012 (Consumer Credit) Order 2013 (S.I. 2013/1882), arts. 1(1), 3(3)
  6. C268Ss. 66-70 applied (with modifications) by S.I. 2011/99, Sch. 5 para. 1 (as substituted (7.3.2016) by The Financial Services (Banking Reform) Act 2013 (Consequential Amendments) Order 2016 (S.I. 2016/163), arts. 1, 4)
  7. C269Ss. 66-70 applied (with modifications) by S.I. 2009/209, Sch. 5 para. 1 (as substituted (7.3.2016) by The Financial Services (Banking Reform) Act 2013 (Consequential Amendments) Order 2016 (S.I. 2016/163), arts. 1, 3)
  8. C270Ss. 66-70 applied (with modifications) S.I. 2012/3122, Sch. para. 1 (as amended) (7.3.2016) by The Financial Services (Banking Reform) Act 2013 (Consequential Amendments) Order 2016 (S.I. 2016/163), arts. 1, 5
  9. C271Ss. 66-70 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 1 (with Sch. 1 paras. 13, 14)
  10. C272Ss. 66-70 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(b), 62, Sch. 3 para. 1 (with art. 3) (as amended (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 196(5)(a) and (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 62(a) (with s. 2(3)); S.I. 2023/779, reg. 4(zz)(iv))
  11. C273Ss. 66-70 applied (with modifications) (13.8.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(b)(i)(6), Sch. 6 para. 1 (with reg. 3) (as amended (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 72(a) (with s. 2(3)); S.I. 2023/779, reg. 4(zz)(iv))
  12. C274S. 66 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)
  13. C275S. 66(3)(a) restricted (1.12.2001) by S.I. 2001/3592, arts. 1(2), 60(2) (with art. 23(2))