Financial Services and Markets Bill - continued        House of Commons
Procedural provisions - continued

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Rule-making instruments.     125. - (1) Any power conferred on the Authority to make rules is exercisable in writing.
      (2) An instrument by which rules are made by the Authority ("a rule-making instrument") must specify the provision under which the rules are made.
      (3) To the extent to which a rule-making instrument does not comply with subsection (2), it is void.
      (4) Immediately after a rule-making instrument is made, it must be printed and made available to the public.
      (5) The Authority may charge a reasonable fee for providing a person with a copy of a rule-making instrument.
      (6) A person is not to be taken to have contravened any rule made by the Authority if he shows that at the time of the alleged contravention the rule-making instrument concerned had not been made available in accordance with this section.
Verification of rules.     126. - (1) The production of a printed copy of a rule-making instrument purporting to be made by the Authority-
    (a) on which is endorsed a certificate signed by a member of the Authority's staff authorised by it for that purpose, and
    (b) which contains the required statements,
  is evidence (or in Scotland sufficient evidence) of the facts stated in the certificate.
      (2) The required statements are-
    (a) that the instrument was made by the Authority;
    (b) that the copy is a true copy of the instrument; and
    (c) that on a specified date the instrument was made available to the public in accordance with section 125(4).
      (3) A certificate purporting to be signed as mentioned in subsection (1) is to be taken to have been properly signed unless the contrary is shown.
      (4) A person who wishes in any legal proceedings to rely on a rule-making instrument may require the Authority to endorse a copy of the instrument with a certificate of the kind mentioned in subsection (1).
Consultation.     127. - (1) If the Authority proposes to make any rules, it must publish a draft of the proposed rules in the way appearing to it to be best calculated to bring them to the attention of the public.
      (2) The draft must be accompanied by-
    (a) a cost benefit analysis (except in the case of a proposal to impose fees);
    (b) an explanation of the purpose of the proposed rules;
    (c) a statement of the Authority's reasons for believing that making the proposed rules is compatible with its general duties under section 2; and
    (d) a statement that representations about the proposals may be made to the Authority within a specified time.
      (3) If the Authority proposes to exercise its power to impose fees, the draft must also be accompanied by details of the expected expenditure by reference to which those proposals are made.
      (4) Before making the proposed rules, the Authority must have regard to any representations made to it in accordance with subsection (2)(d).
      (5) If the proposed rules are made by the Authority, it must make a statement as to the representations (if any) made to it and its response, in general terms, to them.
      (6) If rules made by the Authority differ from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant-
    (a) the Authority must publish a statement of the difference; and
    (b) the statement must be accompanied by a cost benefit analysis (except in the case of a provision imposing fees).
      (7) Subsections (1) to (3) and (6) do not apply if the Authority considers that the delay involved in complying with them would be prejudicial to the interests of consumers.
      (8) Subsection (2)(a) does not apply if the Authority considers that the costs incurred by those to whom the proposed rules would apply in complying with the Authority's rules (including the proposed rules)-
    (a) would be less, or no more, than costs presently incurred by such persons in complying with the Authority's rules ("present costs"); or
    (b) would result in an increase in present costs which is of minimal significance.
      (9) "Cost benefit analysis" means an estimate of the costs together with an analysis of the benefits that will arise-
    (a) if the proposed rules are made; or
    (b) if subsection (6) applies, from the rules.
      (10) The Authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
General supplementary powers.     128. - (1) Rules made by the Authority may make different provision for different cases and may, in particular, make different provision in respect of different descriptions of authorised person, activity or investment.
      (2) Rules made by the Authority may contain such incidental, supplemental, consequential and transitional provision as the Authority considers appropriate.
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Prepared 14 December 1999