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|
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(1) | In exercising powers under this Part the Bank of England shall have regard to |
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any action that the FSA has taken or could take. |
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(2) | Before taking action under this Part in respect of a recognised inter-bank |
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payment system the operator of which satisfies section 183(2), the Bank of |
| 5 |
England must consult the FSA. |
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(3) | If the FSA gives the Bank of England notice that the FSA is considering taking |
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action in respect of the operator of a recognised inter-bank payment system |
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who satisfies section 183(2), the Bank may not take action under this Part in |
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respect of the operator unless— |
| 10 |
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(b) | the notice is withdrawn. |
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(1) | The Bank of England may appoint one or more persons to inspect the operation |
| 15 |
of a recognised inter-bank payment system. |
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(2) | The operator of a recognised inter-bank payment system must— |
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(a) | grant an inspector access, on request and at any reasonable time, to |
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premises on or from which any part of the system is operated, and |
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(b) | otherwise co-operate with an inspector. |
| 20 |
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(1) | A justice of the peace may on the application of an inspector issue a warrant |
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entitling an inspector or a constable to enter premises if— |
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(a) | any part of the management or operation of a recognised inter-bank |
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payment system is conducted on the premises (whether by an operator |
| 25 |
of the system or by someone providing services used by an operator), |
| |
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(b) | any of the following conditions is satisfied. |
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(a) | a requirement under section 201 in connection with the payment |
| 30 |
system has not been complied with, and |
| |
(b) | there is reason to believe that information relevant to the requirement |
| |
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(3) | Condition 2 is that there is reason to suspect that if a requirement under section |
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201 were imposed in connection with the payment system in respect of |
| 35 |
information on the premises— |
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(a) | the requirement would not be complied with, and |
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(b) | the information would be destroyed or otherwise tampered with. |
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(4) | Condition 3 is that an inspector— |
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(a) | gave reasonable notice of a wish to enter the premises, and |
| 40 |
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|
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|
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(5) | Condition 4 is that a person occupying or managing the premises has failed to |
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co-operate with an inspector. |
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(a) | permits an inspector or a constable to enter the premises, |
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(b) | permits an inspector or a constable to search the premises and copy or |
| 5 |
take possession of information or documents, and |
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(c) | permits a constable to use reasonable force. |
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(7) | Sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 |
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(warrants: procedure) apply to warrants under this section. |
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(8) | In the application of this section to Scotland— |
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(a) | the reference to a justice of the peace includes a reference to a sheriff, |
| |
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(b) | ignore subsection (7). |
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(9) | In the application of this section to Northern Ireland— |
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(a) | the reference to a justice of the peace is a reference to a lay magistrate, |
| 15 |
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(b) | the reference to sections 15(5) to (8) and 16 of the Police and Criminal |
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Evidence Act 1984 is a reference to the equivalent provisions of the |
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Police and Criminal Evidence (Northern Ireland) Order 1989. |
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(1) | The Bank of England may require the operator of a recognised inter-bank |
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payment system to appoint an expert to report on the operation of the system. |
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(2) | The Bank may impose a requirement only if it thinks— |
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(a) | the operator is not taking sufficient account of principles published by |
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the Bank under section 185, |
| 25 |
(b) | the operator is failing to comply with a code of practice under section |
| |
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(c) | the report is likely for any other reason to assist the Bank in the |
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performance of its functions under this Part. |
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(3) | The Bank may impose requirements about— |
| 30 |
(a) | the nature of the expert to be appointed; |
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(b) | the content of the report; |
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(c) | treatment of the report (including disclosure and publication); |
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In this Part “compliance failure” means a failure by the operator of a recognised |
| |
inter-bank payment system to— |
| |
(a) | comply with a code of practice under section 186, |
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(b) | comply with a requirement under section 187, |
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(c) | comply with a direction under section 188, or |
| 40 |
(d) | ensure compliance with a requirement under section 192. |
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|
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|
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|
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(1) | The Bank of England may publish details of a compliance failure by the |
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operator of a recognised inter-bank payment system. |
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(2) | The Bank may publish details of a sanction imposed under sections 195 to 197. |
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(1) | The Bank of England may require the operator of a recognised inter-bank |
| |
payment system to pay a penalty in respect of a compliance failure. |
| |
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(a) | must be paid to the Bank of England, and |
| |
(b) | may be enforced by the Bank as a debt. |
| 10 |
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(1) | This section applies if the Bank of England thinks that a compliance failure— |
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(a) | threatens the stability of, or confidence in, the UK financial system, or |
| |
(b) | has serious consequences for business or other interests throughout the |
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(2) | The Bank may give the operator of the inter-bank payment system concerned |
| |
an order to stop operating the system (a “closure order”)— |
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(a) | for a specified period, |
| |
(b) | until further notice, or |
| |
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(3) | A closure order may apply to— |
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(a) | all activities of the payment system, or |
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(b) | specified activities. |
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(4) | An operator who fails to comply with a closure order commits an offence. |
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(5) | A person guilty of an offence is liable— |
| 25 |
(a) | on summary conviction, to a fine not exceeding the statutory |
| |
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(b) | on conviction on indictment, to a fine. |
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197 | Management disqualification |
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(1) | The Bank of England may by order prohibit a specified person from being an |
| 30 |
operator of a recognised inter-bank payment system— |
| |
(a) | for a specified period, |
| |
(b) | until further notice, or |
| |
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(2) | The Bank may by order prohibit a specified person from holding an office or |
| 35 |
position involving responsibility for taking decisions about the management of |
| |
a recognised inter-bank payment system— |
| |
(a) | for a specified period, |
| |
(b) | until further notice, or |
| |
| 40 |
|
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|
| |
|
(3) | A person who breaches a prohibition under subsection (1) or (2) commits an |
| |
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(4) | A person guilty of an offence is liable— |
| |
(a) | on summary conviction, to a fine not exceeding the statutory |
| |
| 5 |
(b) | on conviction on indictment, to a fine. |
| |
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(1) | Before imposing a sanction on the operator of an inter-bank payment system |
| |
or on another person the Bank of England must— |
| |
(a) | give the operator or other person a notice (a “warning notice”), |
| 10 |
(b) | give the operator or other person at least 21 days to make |
| |
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(c) | consider any representations made, and |
| |
(d) | as soon as is reasonably practicable, give the operator or other person a |
| |
notice stating whether or not the Bank intends to impose the sanction. |
| 15 |
(2) | In subsection (1) “imposing a sanction” means— |
| |
(a) | publishing details under section 194(1), |
| |
(b) | requiring the payment of a penalty under section 195, |
| |
(c) | giving a closure order under section 196, or |
| |
(d) | making an order under section 197. |
| 20 |
(3) | Despite subsection (1), if satisfied that it is necessary the Bank may without |
| |
| |
(a) | give a closure order under section 196, or |
| |
(b) | make an order under section 197. |
| |
| 25 |
(1) | Where the Bank of England notifies a person under section 198(1)(d) that the |
| |
Bank intends to impose a sanction, the person may appeal to the Financial |
| |
Services and Markets Tribunal. |
| |
(2) | Where the Bank of England imposes a sanction on a person without notice in |
| |
reliance on section 198(3), the person may appeal to the Financial Services and |
| 30 |
| |
(3) | Part 9 of the Financial Services and Markets Act 2000 applies to appeals under |
| |
this section; and for that purpose— |
| |
(a) | a reference to the FSA is to be taken as a reference to the Bank of |
| |
| 35 |
(b) | for section 133(9) of that Act substitute the proposition that a sanction |
| |
may not be imposed while an appeal could be brought or is pending. |
| |
(c) | Part 9 is to be read with any other necessary modifications. |
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