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| The protection of consumers. |
5. - (1) The protection of consumers objective is: securing the appropriate degree of protection for consumers.
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(2) In considering what degree of protection may be appropriate, the Authority must have regard to-
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(a) the differing degrees of risk involved in different kinds of investment or other transaction; |
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(b) the differing degrees of experience and expertise that different consumers may have in relation to different kinds of regulated activity; |
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(c) the needs that consumers may have for advice and accurate information; and |
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(d) the general principle that consumers should take responsibility for their decisions. |
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(3) "Consumers" means persons who-
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(a) use, or are or may be contemplating using, any of the services provided by authorised persons in the course of carrying on regulated activities; or |
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(b) have rights or interests derived from, or otherwise attributable to, the use of any such services by other persons. |
| The reduction of financial crime. |
6. - (1) The reduction of financial crime objective is: reducing the extent to which it is possible for a business carried on by a regulated person to be used for a purpose connected with financial crime.
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(2) In considering that objective the Authority must, in particular, have regard to the desirability of-
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(a) regulated persons being aware of the risk of their businesses being used in connection with the commission of financial crime; |
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(b) regulated persons taking appropriate measures (in relation to their administration and employment practices, the conduct of transactions by them and otherwise) to prevent financial crime, facilitate its detection and monitor its incidence; |
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(c) regulated persons devoting adequate resources to the matters mentioned in paragraph (b). |
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(3) "Financial crime" includes any offence involving-
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(b) misconduct in, or misuse of information relating to, a financial market; or |
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(c) handling the proceeds of crime. |
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(4) "Offence" includes an act or omission which would be an offence if it had taken place in the United Kingdom.
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(5) "Regulated person" means an authorised person, a recognised investment exchange or a recognised clearing house.
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Arrangements for consulting practitioners and consumers |
| The Authority's general duty to consult. |
7. The Authority must make and maintain effective arrangements for consulting practitioners and consumers on the extent to which its general policies and practices are consistent with its general duties under section 2.
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| The Practitioner Panel. |
8. - (1) Arrangements under section 7 must include the establishment and maintenance of a panel of persons (to be known as "the Practitioner Panel") to represent the interests of practitioners.
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(2) The Authority must appoint one of the members of the Practitioner Panel to be its chairman.
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(3) The Treasury's approval is required for the appointment or dismissal of the chairman.
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(4) The Authority must have regard to any representations made to it by the Practitioner Panel.
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(5) The Authority must appoint to the Practitioner Panel such-
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(a) individuals who are authorised persons, |
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(b) persons representing authorised persons, |
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(c) persons representing recognised investment exchanges, and |
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(d) persons representing recognised clearing houses, |
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as it considers appropriate.
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| The Consumer Panel. |
9. - (1) Arrangements under section 7 must include the establishment and maintenance of a panel of persons (to be known as "the Consumer Panel") to represent the interests of consumers.
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(2) The Authority must appoint one of the members of the Consumer Panel to be its chairman.
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(3) The Treasury's approval is required for the appointment or dismissal of the chairman.
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(4) The Authority must have regard to any representations made to it by the Consumer Panel.
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(5) The Authority must appoint to the Consumer Panel such consumers, or persons representing the interests of consumers, as it considers appropriate.
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(6) The Authority must secure that the membership of the Consumer Panel is such as to give a fair degree of representation to those who are using, or contemplating using, services otherwise than in connection with businesses carried on by them.
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(7) "Consumers" means persons, other than authorised persons, who use, or are or may be contemplating using, services provided by authorised persons in the course of carrying on regulated activities.
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Reviews |
| Reviews. |
10. - (1) The Treasury may appoint an independent person to conduct a review of the economy, efficiency and effectiveness with which the Authority has used its resources in discharging its functions.
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(2) A review may be limited by the Treasury to such functions of the Authority (however described) as the Treasury may specify in appointing the person to conduct it.
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(3) A review is not to be concerned with the merits of the Authority's general policy or principles in pursuing regulatory objectives.
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(4) On completion of a review, the person conducting it must make a written report to the Treasury-
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(a) setting out the result of the review; and |
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(b) making such recommendations (if any) as he considers appropriate. |
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(5) A copy of the report must be-
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(a) laid before each House of Parliament; and |
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(b) published in such manner as the Treasury consider appropriate. |
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(6) Any expenses reasonably incurred in the conduct of a review are to be met by the Treasury out of money provided by Parliament.
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(7) "Independent" means appearing to the Treasury to be independent of the Authority.
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