ECSH83075 - Sanctions for non-compliance: prohibition on management: temporary prohibition on management

Under Regulation 78(2) and (3), a prohibition on management can be issued for a specified period and will cease to be imposed when that period ends. The effect is to temporarily remove the individual from holding an office or position involving responsibility for taking decisions about the management of a relevant person (a management role) within a named business, specified sector or any relevant person, see ECSH82575.

Even though it may be temporary, the prohibition is a significant sanction and should only be applied for a length of time it is considered that the individual(s) poses the risk, which gave rise to the prohibition is no longer present. The terms of the prohibition on management must be proportionate to the risks posed by that individual continuing to hold that management position.

If the risk(s) associated with the individual are still present at the end of the period of the prohibition, the decision-maker should consider, based on the circumstances and facts, whether a further temporary prohibition should be imposed or a permanent prohibition on management should be imposed.