Financial Services and Markets Bill

Financial Services and Markets Bill - continued	House of Commons
PART X, INFORMATION GATHERING AND INVESTIGATIONS - continued

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	Assistance to overseas regulators
Investigations etc in support of overseas regulator.	139. - (1) At the request of an overseas regulator, the Authority may-
	(a) exercise the power conferred by section 135; or
	(b) appoint a person to investigate any matter.
	(2) An investigator has the same powers as an investigator appointed under section 138(3) (so far as relating to subsection (1) of that section).
	(3) If the request has been made by a competent authority in pursuance of any of the single market directives the Authority must, in deciding whether or not to exercise its investigative power, consider whether its exercise is necessary to comply with any such directive.
	(4) In deciding whether or not to exercise its investigative power, the Authority may take into account in particular-
	(a) whether in the country or territory of the overseas regulator concerned, corresponding assistance would be given to a United Kingdom regulatory authority;
	(b) whether the case concerns the breach of a law, or other requirement, which has no close parallel in the United Kingdom or involves the assertion of a jurisdiction not recognised by the United Kingdom;
	(c) the seriousness of the case and its importance to persons in the United Kingdom;
	(d) whether it is otherwise appropriate in the public interest to give the assistance sought.
	(5) The Authority may decide that it will not exercise its investigative power unless the overseas regulator undertakes to make such contribution towards the cost of its exercise as the Authority considers appropriate.
	(6) Subsections (4) and (5) do not apply if the Authority considers that the exercise of its investigative power is necessary to comply with a single market directive.
	(7) If the Authority has appointed an investigator in response to a request from an overseas regulator, it may direct the investigator to permit a representative of that regulator to attend, and take part in, any interview conducted for the purposes of the investigation.
	(8) A direction under subsection (7) is not to be given unless the Authority is satisfied that any information obtained by an overseas regulator as a result of the interview will be subject to safeguards equivalent to those contained in Part XXI.
	(9) The Authority must prepare a statement of its policy with respect to the conduct of interviews in relation to which a direction under subsection (7) has been given.
	(10) The statement requires the approval of the Treasury.
	(11) If the Treasury approve the statement, the Authority must publish it.
	(12) No direction may be given under subsection (7) before the statement has been published.
	(13) "Overseas regulator" has the same meaning as in section 164.
	(14) "Investigative power" means one of the powers mentioned in subsection (1).
	(15) "Investigator" means a person appointed under subsection (1)(b).
	Conduct of investigations
Investigations: general.	140. - (1) This section applies if-
	(a) the Authority appoints one or more competent persons ("investigators") under section 137 or 138(3) to conduct an investigation on its behalf;
	(b) the Secretary of State appoints one or more competent persons ("investigators") under section 137 or 138(4) to conduct an investigation on his behalf.
	(2) The investigating authority must give written notice of the appointment of an investigator to the person who is the subject of the investigation ("the person under investigation").
	(3) Subsections (2) and (9) do not apply if the investigator is appointed by the investigating authority as a result of the suspicion mentioned in section 138(2).
	(4) A notice under subsection (2) must-
	(a) specify the provisions under which, and as a result of which, the investigator was appointed; and
	(b) state the reason for his appointment.
	(5) Nothing prevents the investigating authority from appointing a person who is a member of its staff as an investigator.
	(6) An investigator must make a report of his investigation to the investigating authority unless otherwise directed by that authority.
	(7) The investigating authority may, by a direction to an investigator, control-
	(a) the scope of the investigation;
	(b) the period during which the investigation is to be conducted;
	(c) the conduct of the investigation; and
	(d) the reporting of the investigation.
	(8) A direction may, in particular-
	(a) confine the investigation to particular matters;
	(b) extend the investigation to additional matters;
	(c) require the investigator to discontinue the investigation or to take only such steps as are specified in the direction;
	(d) require the investigator to make such interim reports as are so specified;
	(e) require the investigator not to make a report of the investigation.
	(9) Notice of a direction must be given to the person under investigation by the investigating authority.
	(10) "Investigating authority", in relation to an investigator, means-
	(a) the Authority, if the Authority appointed him;
	(b) the Secretary of State, if the Secretary of State appointed him.
Powers of persons appointed under section 137.	141. - (1) An investigator may require the person who is the subject of the investigation ("the person under investigation") or any person connected with the person under investigation-
	(a) to attend before the investigator at a specified time and place and answer questions; or
	(b) otherwise to provide such information as the investigator may require for the purposes of the investigation.
	(2) An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description which appear to the investigator to relate to any matter relevant to the investigation.
	(3) A requirement under subsection (1) or (2) may be imposed only so far as the investigator concerned reasonably considers the question, provision of information or production of the document to be relevant to the purposes of the investigation.
	(4) For the purposes of this section and section 142, a person is connected with the person under investigation ("A") if he is or has at any relevant time been-
	(a) a member of A's group;
	(b) a controller of A;
	(c) a partnership of which A is a member; or
	(d) in relation to A, a person mentioned in Part I or II of Schedule 12.
	(5) "Investigator" means a person conducting an investigation under section 137.
	(6) "Specified" means specified in a notice in writing.
Additional power of persons appointed as a result of section 138(1).	142. - (1) An investigator has the powers conferred by section 141.
	(2) An investigator may also require a person who is neither the subject of the investigation ("the person under investigation") nor a person connected with the person under investigation-
	(a) to attend before the investigator at a specified time and place and answer questions; or
	(b) otherwise to provide such information as the investigator may require for the purposes of the investigation.
	(3) A requirement may only be imposed under subsection (2) if the investigator is satisfied that the requirement is necessary or expedient for the purposes of the investigation.
	(4) "Investigator" means a person appointed under subsection (3) or (4) of section 138 (so far as relating to subsection (1) of that section).
	(5) "Specified" means specified in a notice in writing.
Powers of person appointed to investigate as a result of section 138(2).	143. - (1) Subsections (2) to (4) apply if an investigator considers that any person ("A") is or may be able to give information which is relevant to the investigation.
	(2) The investigator may require A-
	(a) to attend before him at a specified time and place and answer questions; or
	(b) otherwise to provide such information as he may require for the purposes of the investigation.
	(3) The investigator may also require A to produce at a specified time and place any specified documents or documents of a specified description which appear to the investigator to relate to any matter relevant to the investigation.
	(4) The investigator may also otherwise require A to give him all assistance in connection with the investigation which A is reasonably able to give.
	(5) "Investigator" means a person appointed under subsection (3) or (4) of section 138 (so far as relating to subsection (2) of that section).

Prepared 17 June 1999