Financial Services and Markets Bill

Financial Services and Markets Bill - continued	House of Commons
PART V, PERFORMANCE OF REGULATED ACTIVITIES - continued
Approval - continued

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Applications for approval: procedure and right to refer to Tribunal.	59. - (1) If the Authority decides to grant an application made under section 57 ("an application"), it must give written notice of its decision to each of the interested parties.
	(2) If the Authority proposes to refuse an application, it must give a warning notice to each of the interested parties.
	(3) If the Authority refuses an application, it must give a decision notice to each of the interested parties.
	(4) If the Authority decides to refuse an application, each of the interested parties may refer the matter to the Tribunal.
	(5) "The interested parties", in relation to an application, are-
	(a) the applicant;
	(b) the person in respect of whom the application is made ("A"); and
	(c) the person by whom A's services are to be retained, if not the applicant.
Withdrawal of approval.	60. - (1) The Authority may withdraw an approval given under section 56 if it considers that the person in respect of whom it was given is not a fit and proper person to perform the function to which the approval relates.
	(2) When considering whether to withdraw its approval, the Authority may take into account any matter which it could take into account if it were considering an application made under section 57 in respect of the performance of the function to which the approval relates.
	(3) If the Authority proposes to withdraw its approval, it must give each of the interested parties a warning notice.
	(4) If the Authority decides to withdraw its approval, it must give each of the interested parties a decision notice.
	(5) If the Authority decides to withdraw its approval, each of the interested parties may refer the matter to the Tribunal.
	(6) "The interested parties", in relation to an approval, are-
	(a) the person on whose application it was given ("A");
	(b) the person in respect of whom it was given ("B"); and
	(c) the person by whom B's services are retained, if not A.
	Conduct
Conduct: statements and codes.	61. - (1) The Authority may issue statements of principle with respect to the conduct expected of approved persons.
	(2) If the Authority issues a statement of principle under subsection (1), it must also issue a code of practice for the purpose of helping to determine whether or not a person's conduct complies with the statement of principle.
	(3) A code under subsection (2) may specify-
	(a) descriptions of conduct which, in the opinion of the Authority, comply with a statement of principle;
	(b) descriptions of conduct which, in the opinion of the Authority, do not comply with a statement of principle;
	(c) factors which, in the opinion of the Authority, are to be taken into account in determining whether or not a person's conduct complies with a statement of principle.
	(4) A code issued under subsection (2) at the time when any particular conduct takes place may be relied on so far as it tends to establish whether or not that conduct complies with a statement of principle.
	(5) Failure to comply with a statement of principle under this section does not of itself give rise to any right of action by persons affected or affect the validity of any transaction.
	(6) The power under this section to issue statements of principle and codes of practice-
	(a) includes power to make different provision for different cases; and
	(b) is to be treated for the purposes of section 2(4)(a) as part of the Authority's rule-making functions.
	(7) "Approved person" means a person in relation to whom the Authority has given its approval under section 56.
Statements and codes: procedure.	62. - (1) If the Authority proposes to issue a statement or code, it must publish a draft of it in the way appearing to the Authority to be best calculated to bring it to the attention of the public.
	(2) The draft must be accompanied by a statement that representations about the proposals may be made to the Authority before the end of a specified period.
	(3) Before issuing a statement or code, the Authority must have regard to any representations made to it in accordance with subsection (2).
	(4) Subsection (1) does not apply if the Authority considers that the delay involved in complying with it would prejudice the interests of consumers.
	(5) A statement or code must-
	(a) be in writing;
	(b) state that it is issued under section 61; and
	(c) be made available to the public without delay.
	(6) The Authority may charge a reasonable fee for providing a copy of the statement or code.
	(7) A person is not to be taken to have failed to comply with a statement or code if he shows that, at the time of the alleged failure, it had not been made available in accordance with this section.
	(8) The Authority must give the Treasury a copy of any statement or code without delay.
	(9) If the Authority alters or revokes a statement or code, it must give written notice to the Treasury without delay.
	(10) Section 126 applies to a statement or code as it applies to a rule-making instrument, with the substitution, in subsection (2)(c), of " 62(5)" for " 125(4)".
	(11) "Statement" means a statement of principle under section 61.
	(12) "Code" means a code of practice under section 61.
Disciplinary powers.	63. - (1) The Authority may take action against a person under this section if-
	(a) it appears to the Authority that he is guilty of misconduct; and
	(b) the Authority is satisfied that it is appropriate in all the circumstances to take action against him.
	(2) A person is guilty of misconduct if, while an approved person-
	(a) he has failed to comply with a statement of principle issued under section 61; or
	(b) he has been knowingly concerned in a contravention by the relevant authorised person of a requirement imposed on that authorised person by or under this Act.
	(3) If the Authority is entitled to take action under this section against a person, it may-
	(a) impose a penalty on him of such amount as it considers appropriate; or
	(b) publish a statement of his misconduct.
	(4) The Authority may not take action under this section after the end of the period of two years beginning with the first day on which the Authority knew of the misconduct, unless proceedings in respect of it against the person concerned were begun before the end of that period.
	(5) For the purposes of subsection (4)-
	(a) the Authority is to be treated as knowing of misconduct if it has information from which the misconduct can reasonably be inferred; and
	(b) proceedings against a person in respect of misconduct are to be treated as begun when notice relating to the misconduct is given to him under section 64(1).
	(6) "Approved person" has the same meaning as in section 61.
	(7) "Relevant authorised person", in relation to an approved person, means the person on whose application approval under section 56 was given.
Disciplinary measures: procedure and right to refer to Tribunal.	64. - (1) If the Authority proposes to take action against a person under section 63, it must give him a warning notice.
	(2) A warning notice about a proposal to impose a penalty must state the amount of the penalty.
	(3) A warning notice about a proposal to publish a statement must set out the terms of the statement.
	(4) If the Authority decides to take action against a person under section 63, it must give him a decision notice.
	(5) A decision notice about the imposition of a penalty must state the amount of the penalty.
	(6) A decision notice about the publication of a statement must set out the terms of the statement.
	(7) If the Authority decides to take action against a person under section 63, he may refer the matter to the Tribunal.

Prepared 14 December 1999