Anyone carrying on regulated activities (such as accepting deposits) must be authorised under the Financial Services and Markets Act 2000.
Under section 56 of the Financial Services and Markets Act 2000 (FSMA), the FSA can make an order prohibiting an authorised person from performing a specified or any regulated activity if it appears that the authorised person is not a fit and proper person to perform the functions of that regulated activity. The FSA also have power, under section 45 of FSMA, to cancel an authorised person's permission to carry out a regulated activity (and subsequently to withdraw their authorised status under section 33) if the grounds in section 45(1) of FSMA are satisfied.
Section 59 of FSMA sets out the requirement that a person carrying out a “controlled function” on behalf of an authorised person must be approved by the FSA. Under Section 63 of FSMA, the FSA may withdraw a person's approved status if it considers that the person is not fit and proper to perform the “controlled function”.