|
| |
|
(a) | a market in the United Kingdom or another EEA State, and |
| |
(b) | one or more markets in a country or territory, or countries or |
| |
territories, anywhere else in the world, |
| |
| short selling rules may apply in relation to trading on both or all |
| |
| 5 |
| |
(a) | a financial instrument (“instrument A”) is admitted to trading |
| |
on a market in the United Kingdom or another EEA State, |
| |
(b) | another financial instrument (“instrument B”) is admitted to |
| |
trading on one or more markets in a country or territory, or |
| 10 |
countries or territories, anywhere else in the world, and |
| |
(c) | the price or value of instrument A depends on the price or value |
| |
of instrument B (or vice versa), |
| |
| short selling rules may apply in relation to trading on both or all |
| |
| 15 |
(9) | In subsection (4)(a) “regulated market” has the meaning given by |
| |
Article 4.1(14) of the markets in financial instruments directive. |
| |
(10) | References in this section to a market in a country or territory are to a |
| |
market situated or operating in the country or territory. |
| |
131D | Short selling rules: procedure in urgent cases |
| 20 |
(1) | The Authority may make short selling rules (and may subsequently |
| |
amend those rules) without complying with section 155 (consultation |
| |
in relation to proposed rules) if it considers that it is necessary to do so, |
| |
| |
(a) | maintain confidence in the UK financial system; or |
| 25 |
(b) | protect the stability of the UK financial system. |
| |
(2) | Any rules made by virtue of subsection (1) (“emergency rules”) cease to |
| |
have effect at the end of the period of three months beginning with the |
| |
day on which the rules are made (“the relevant day”); but this is subject |
| |
| 30 |
(3) | The Authority may direct that emergency rules are to cease to have |
| |
effect at the end of a period (not exceeding six months beginning with |
| |
the relevant day) specified in the direction. |
| |
(4) | A direction under subsection (3) may be made only if, immediately |
| |
before the end of the period mentioned in subsection (2), the Authority |
| 35 |
considers that it is necessary to do so, in order to— |
| |
(a) | maintain confidence in the UK financial system; or |
| |
(b) | protect the stability of the UK financial system. |
| |
(5) | Such a direction must be published by the Authority in the way |
| |
appearing to the Authority to be best calculated to bring it to the |
| 40 |
| |
(6) | Nothing in subsection (2) or (3) prevents the Authority from revoking |
| |
emergency rules before the end of the periods referred to there. |
| |
|
| |
|
| |
|
Power to require information |
| |
131E | Power to require information |
| |
(1) | The Authority may, by notice in writing, require a person (“P”)— |
| |
(a) | to provide specified information or information of a specified |
| |
| 5 |
(b) | to produce specified documents or documents of a specified |
| |
| |
(2) | This section applies only to information and documents that the |
| |
Authority reasonably requires for the purpose of determining whether |
| |
P, or a person connected with P, has contravened any provision of short |
| 10 |
| |
(3) | Information or documents required under this section must be |
| |
| |
(a) | before the end of such reasonable period as may be specified; |
| |
| 15 |
(b) | at such place as may be specified. |
| |
(4) | The Authority may require any information provided under this |
| |
section to be provided in such form as it may reasonably require. |
| |
(5) | The Authority may require— |
| |
(a) | any information provided, whether in a document or otherwise, |
| 20 |
to be verified in such manner as it may reasonably require; or |
| |
(b) | any document produced to be authenticated in such manner as |
| |
it may reasonably require. |
| |
(6) | In this section “specified” means specified in the notice. |
| |
(7) | For the purposes of this section a person is connected with another |
| 25 |
person (“P”) if the person is or has at any relevant time been— |
| |
(a) | a member of P’s group; |
| |
| |
(c) | any other member of a partnership of which P is a member; or |
| |
(d) | in relation to P, a person mentioned in Part 1 of Schedule 15 |
| 30 |
(reading references in that Part to the authorised person as |
| |
| |
Breach of short selling rules etc |
| |
131F | Power to impose penalty or issue censure |
| |
(1) | This section applies if the Authority is satisfied that a person has |
| 35 |
| |
(a) | any provision of short selling rules; or |
| |
(b) | any requirement imposed on the person under section 131E. |
| |
(2) | The Authority may impose a penalty of such amount as it considers |
| |
| 40 |
(a) | the person who contravened the provision or requirement; or |
| |
(b) | any person who was knowingly concerned in the |
| |
| |
|
| |
|
| |
|
(3) | It may, instead of imposing a penalty on a person, publish a statement |
| |
| |
(4) | The Authority may not take action against a person under this section |
| |
after the end of the limitation period unless, before the end of that |
| |
period, it has given a warning notice to the person under section 131G. |
| 5 |
(5) | “The limitation period” means the period of four years beginning with |
| |
the first day on which the Authority knew of the contravention. |
| |
(6) | For this purpose the Authority is to be treated as knowing of a |
| |
contravention if it has information from which the contravention can |
| |
| 10 |
131G | Procedure and right to refer to Tribunal |
| |
(1) | If the Authority proposes to take action against a person under section |
| |
131F, it must give the person a warning notice. |
| |
(2) | A warning notice about a proposal to impose a penalty must state the |
| |
| 15 |
(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 |
| |
131F, it must give the person a decision notice. |
| |
(5) | A decision notice about the imposition of a penalty must state the |
| 20 |
| |
(6) | A decision notice about the publication of a statement must set out the |
| |
| |
(7) | If the Authority decides to take action against a person under section |
| |
131F, the person may refer the matter to the Tribunal. |
| 25 |
131H | Duty on publication of statement |
| |
After a statement under section 131F(3) is published, the Authority |
| |
must send a copy of the statement to— |
| |
(a) | the person in respect of whom it is made; and |
| |
(b) | any person to whom a copy of the decision notice was given |
| 30 |
| |
131I | Imposition of penalties under section 131F: statement of policy |
| |
(1) | The Authority must prepare and issue a statement of its policy with |
| |
| |
(a) | the imposition of penalties under section 131F; and |
| 35 |
(b) | the amount of penalties under that section. |
| |
(2) | The Authority’s policy in determining what the amount of a penalty |
| |
should be must include having regard to— |
| |
(a) | the seriousness of the contravention; |
| |
(b) | the extent to which the contravention was deliberate or reckless; |
| 40 |
| |
(c) | whether the person on whom the penalty is to be imposed is an |
| |
| |
|
| |
|
| |
|
(3) | The Authority may at any time alter or replace a statement issued |
| |
| |
(4) | If a statement issued under this section is altered or replaced, the |
| |
Authority must issue the altered or replaced statement. |
| |
(5) | The Authority must, without delay, give the Treasury a copy of any |
| 5 |
statement which it publishes under this section. |
| |
(6) | A statement issued under this section must be published by the |
| |
Authority in the way appearing to the Authority to be best calculated |
| |
to bring it to the attention of the public. |
| |
(7) | The Authority may charge a reasonable fee for providing a person with |
| 10 |
| |
(8) | In exercising, or deciding whether to exercise, a power under section |
| |
131F in the case of any particular contravention, the Authority must |
| |
have regard to any statement of policy published under this section and |
| |
in force at a time when the contravention occurred. |
| 15 |
131J | Statement of policy: procedure |
| |
(1) | Before issuing a statement under section 131I, the Authority must |
| |
publish a draft of the proposed statement 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 notice that representations about the |
| 20 |
proposal may be made to the Authority within a specified time. |
| |
(3) | Before issuing the proposed statement, the Authority must have regard |
| |
to any representations made to it in accordance with subsection (2). |
| |
(4) | If the Authority issues the proposed statement it must publish an |
| |
account, in general terms, of— |
| 25 |
(a) | the representations made to it in accordance with subsection (2); |
| |
| |
(b) | its response to them. |
| |
(5) | If the statement differs from the draft published under subsection (1) in |
| |
a way which is, in the opinion of the Authority, significant, the |
| 30 |
Authority must (in addition to complying with subsection (4)) publish |
| |
details of the difference. |
| |
(6) | The Authority may charge a reasonable fee for providing a person with |
| |
a copy of a draft published under subsection (1). |
| |
(7) | This section also applies to a proposal to alter or replace a statement.” |
| 35 |
FSA’s disciplinary powers |
| |
14 | Suspending permission to carry on regulated activities etc |
| |
In Part 14 of the Financial Services and Markets Act 2000 (disciplinary |
| |
|
| |
|
| |
|
measures), after section 206 insert— |
| |
“206A | Suspending permission to carry on regulated activities etc |
| |
(1) | If the Authority considers that an authorised person has contravened a |
| |
relevant requirement imposed on the person, it may— |
| |
(a) | suspend, for such period as it considers appropriate, any |
| 5 |
permission which the person has to carry on a regulated |
| |
| |
(b) | impose, for such period as it considers appropriate, such |
| |
limitations or other restrictions in relation to the carrying on of |
| |
a regulated activity by the person as it considers appropriate. |
| 10 |
| |
“permission” means any permission that the authorised person |
| |
has, whether given (or treated as given) by the Authority or |
| |
conferred by any provision of this Act; |
| |
“relevant requirement” means a requirement imposed— |
| 15 |
(a) | by or under this Act; or |
| |
(b) | by any directly applicable Community regulation made |
| |
under the markets in financial instruments directive. |
| |
(3) | The period for which a suspension or restriction is to have effect may |
| |
| 20 |
(4) | A suspension may relate only to the carrying on of an activity in |
| |
| |
(5) | A restriction may, in particular, be imposed so as to require the person |
| |
concerned to take, or refrain from taking, specified action. |
| |
| 25 |
(a) | withdraw a suspension or restriction; or |
| |
(b) | vary a suspension or restriction so as to reduce the period for |
| |
which it has effect or otherwise to limit its effect. |
| |
(7) | The power under this section may (but need not) be exercised so as to |
| |
have effect in relation to all the regulated activities that the person |
| 30 |
| |
(8) | Any one or more of the powers under— |
| |
(a) | subsection (1)(a) and (b) of this section, and |
| |
(b) | sections 205 and 206, |
| |
| may be exercised in relation to the same contravention.” |
| 35 |
15 | Removal of restriction on imposing a penalty and cancelling authorisation |
| |
In section 206 of the Financial Services and Markets Act 2000 (financial |
| |
penalties), omit subsection (2) (which prevents the FSA from imposing a |
| |
penalty under that section as well as withdrawing a person’s authorisation |
| |
| 40 |
|
| |
|