What is a possible civil remedy for general prohibition breaches?

A possible civil remedy for general prohibition breaches is restitution to customers via the Financial Conduct Authority (FCA). Civil remedies aim to compensate those harmed by breaches of regulatory rules or standards.

When a financial entity violates the general prohibition, which often prevents firms from carrying out regulated activities without the necessary authorizations, customers who have been adversely affected can seek restitution. This process involves reimbursing customers for losses incurred as a direct result of the breach. The FCA takes this approach to ensure that firms are held accountable and that consumers are made whole for any financial detriment resulting from non-compliance with regulations.

Imprisonment of offenders pertains to criminal penalties, which are not categorized as civil remedies. Increased regulatory fees generally serve as a deterrent for firms but do not directly compensate harmed customers. Regulated financial promotions are about compliance with advertising rules and do not specifically address the issue of remedying breaches that harm customers financially. Hence, restitution through the FCA is the appropriate civil remedy in this context.