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Price stabilising and certain other rules |
| Price stabilising rules. |
115. - (1) The Authority may make rules ("price stabilising rules") as to-
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(a) the circumstances and manner in which, |
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(b) the conditions subject to which, and |
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(c) the time when or the period during which, |
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action may be taken for the purpose of stabilising the price of investments of such kinds as the Authority considers appropriate.
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(2) Price stabilising rules-
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(a) are to be made so as to apply only to authorised persons; |
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(b) may make different provision in relation to different descriptions of investment. |
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(3) The Authority may make rules which, for the purposes of section 341(4)(b), treat a person who acts or engages in conduct-
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(a) for the purpose of stabilising the price of investments, and |
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(b) in conformity with such provisions corresponding to price stabilising rules and made by a body or authority outside the United Kingdom as may be specified in the rules under this subsection, |
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as acting, or engaging in that conduct, for that purpose and in conformity with price stabilising rules.
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(4) The Treasury may by order-
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(a) specify the kinds of investment in relation to which price stabilising rules may make provision; |
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(b) specify the kinds of investment in relation to which rules made under subsection (3) may make provision; |
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(c) provide for price stabilising rules to make provision for action to be taken for the purpose of stabilising the price of investments only in such circumstances as the order may specify; |
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(d) provide for price stabilising rules to make provision for action to be taken for that purpose only at such times or during such periods as the order may specify. |
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(5) If provisions specified in rules made under subsection (3) are altered, the rules continue to apply to those provisions as altered, but only if at the time of the alteration the Authority has notified the body or authority concerned (and has not withdrawn its notification) that it is satisfied with its consultation procedures.
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(6) "Consultation procedures" means procedures designed to provide an opportunity for persons likely to be affected by alterations to the specified provisions to make representations about proposed alterations to any of those provisions.
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| Financial promotion rules. |
116. - (1) The Authority may make rules applying to authorised persons about the communication of invitations or information of a kind mentioned in section 19(1).
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(2) Rules under this section may, in particular-
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(a) make provision about the form and content of communications; and |
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(b) make provision about the approval by authorised persons of communications by others. |
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(3) The Treasury may by order impose limitations on the power to make rules under this section.
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| Money laundering rules. |
117. The Authority may make rules in relation to the prevention and detection of money laundering in connection with the carrying on of regulated activities by authorised persons.
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Modification or waiver |
| Modification or waiver of rules. |
118. - (1) This section applies in relation to the following-
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(a) auditors and actuaries rules; |
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(b) financial promotion rules; |
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(d) non-regulated activity rules; |
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(e) money laundering rules; and |
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(f) price stabilising rules. |
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(2) The Authority may, on the application or with the consent of an authorised person, direct that all or any of the rules to which this section applies-
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(a) are not to apply to the authorised person; or |
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(b) are to apply to him with such modifications as may be specified in the direction. |
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(3) An application must be made in such manner as the Authority may direct.
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(4) The Authority may not give a direction unless it is satisfied that-
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(a) compliance by the authorised person with the rules, or with the rules as unmodified, would be unduly burdensome or would not achieve the purpose for which the rules were made; and |
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(b) the direction would not result in undue risk to persons whose interests the rules are intended to protect. |
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(5) A direction may be given subject to conditions.
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(6) A direction must be published by the Authority in such a way as it thinks most suitable for bringing the direction to the attention of-
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(a) those likely to be affected by it; and |
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(b) others who may be likely to make an application for a similar direction. |
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(7) Subsection (6) does not apply if the Authority is satisfied that publication of the direction would-
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(a) prejudice, to an unreasonable degree, the commercial interests of the authorised person concerned or any other member of his immediate group; or |
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(b) be contrary to an international obligation of the United Kingdom. |
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(8) In deciding whether it is satisfied as mentioned in subsection (7), the Authority must-
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(a) take into account whether the direction relates to a rule contravention of which is actionable at the suit of a person suffering loss as a result of the contravention; and |
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(b) consider whether it would be possible to publish the direction without either of the consequences mentioned in subsection (7) by publishing it without disclosing the identity of a person named in the direction. |
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(9) The Authority may-
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(a) revoke a direction; or |
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(b) vary it on the application, or with the consent, of the authorised person to whom it relates. |
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(10) "Direction" means a direction under subsection (2).
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(11) "Immediate group", in relation to an authorised person ("A"), means-
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(b) a parent undertaking of A; |
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(c) a subsidiary undertaking of A; |
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(d) a subsidiary undertaking of a parent undertaking of A; |
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(e) a parent undertaking of a subsidiary undertaking of A. |
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Contravention of rules |
| Evidential provisions. |
119. - (1) If a particular rule so provides, contravention of the rule does not give rise to any of the consequences provided for by other provisions of this Act.
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(2) A rule which so provides must also provide-
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(a) that contravention may be relied on as tending to establish contravention of such other rule as may be specified; or |
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(b) that compliance may be relied on as tending to establish compliance with such other rule as may be specified. |
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(3) A rule may include the provision mentioned in subsection (1) only if the Authority considers that it is appropriate for it also to include the provision required by subsection (2).
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| Actions for damages. |
120. - (1) A contravention by an authorised person of a rule is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
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(2) If rules so provide, subsection (1) does not apply to contravention of a specified provision of those rules.
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(3) If rules so provide, a contravention of a specified provision of those rules is to be actionable at the suit of a person other than a private person if he suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
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(4) In subsections (1) and (3) "rule" does not include a rule requiring an authorised person to have or maintain financial resources.
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(5) "Private person" has such meaning as may be prescribed.
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| Limits on effect of contravening rules. |
121. - (1) A person is not guilty of an offence by reason of a contravention of a rule made by the Authority.
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(2) No such contravention makes any transaction void or unenforceable.
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