PART 4Conduct of persons working in financial services sector
Offence
I136Offence relating to a decision causing a financial institution to fail
1
A person (“S”) commits an offence if—
a
at a time when S is a senior manager in relation to a financial institution (“F”), S—
i
takes, or agrees to the taking of, a decision by or on behalf of F as to the way in which the business of a group institution is to be carried on, or
ii
fails to take steps that S could take to prevent such a decision being taken,
b
at the time of the decision, S is aware of a risk that the implementation of the decision may cause the failure of the group institution,
c
in all the circumstances, S's conduct in relation to the taking of the decision falls far below what could reasonably be expected of a person in S's position, and
d
the implementation of the decision causes the failure of the group institution.
2
A “group institution”, in relation to a financial institution (“F”), means F or any other financial institution that is a member of F's group for the purpose of FSMA 2000 (see section 421 of that Act).
3
Subsections (1) and (2) are to be read with the interpretative provisions in section 37.
4
A person guilty of an offence under this section is liable—
a
on summary conviction—
i
ii
in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;
iii
in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;
b
on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.