Financial Services and Markets Bill - continued        House of Lords
Supervision - continued

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Modification or waiver of rules.     287. - (1) The Authority may, on the application or with the consent of a recognised body, direct that rules made under section 286 or 288-
    (a) are not to apply to the body; or
    (b) are to apply to the body with such modifications as may be specified in the direction.
      (2) An application must be made in such manner as the Authority may direct.
      (3) Subsections (4) to (6) apply to a direction given under subsection (1).
      (4) The Authority may not give a direction unless it is satisfied that-
    (a) compliance by the recognised body with the rules, or with the rules as unmodified, would be unduly burdensome or would not achieve the purpose for which the rules were made; and
    (b) the direction would not result in undue risk to persons whose interests the rules are intended to protect.
      (5) A direction may be given subject to conditions.
      (6) The Authority may-
    (a) revoke a direction; or
    (b) vary it on the application, or with the consent, of the recognised body to which it relates.
Notification: overseas investment exchanges and overseas clearing houses.     288. - (1) At least once a year, every overseas investment exchange and overseas clearing house must provide the Authority with a report.
      (2) The report must contain a statement as to whether any events have occurred which are likely-
    (a) to affect the Authority's assessment of whether it is satisfied as to the requirements set out in section 285(3); or
    (b) to have any effect on competition.
      (3) The report must also contain such information as may be specified in rules made by the Authority.
      (4) The investment exchange or clearing house must provide the Treasury and the Director with a copy of the report.
Authority's power to give directions.     289. - (1) This section applies if it appears to the Authority that a recognised body-
    (a) has failed, or is likely to fail, to satisfy the recognition requirements; or
    (b) has failed to comply with any other obligation imposed on it by or under this Act.
      (2) The Authority may direct the body or its recognised nominee (if any) to take specified steps for the purpose of securing the body's compliance with-
    (a) the recognition requirements; or
    (b) any obligation of the kind in question.
      (3) A direction under this section is enforceable, on the application of the Authority, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
      (4) The fact that a rule made by a recognised body has been altered in response to a direction given by the Authority does not prevent it from being subsequently altered or revoked by the recognised body.
Variation of recognition order in relation to recognised nominee.     290. - (1) A recognised investment exchange or recognised clearing house may apply to the Authority for a variation of its recognition order by adding to it, or removing from it, a recognised nominee or by altering either the identity of the recognised nominee or the arrangements in respect of which recognition was granted.
      (2) The Authority may-
    (a) direct the manner in which applications under subsection (1) are to be made; and
    (b) if such an application is made, require the applicant to provide it with such information as it considers necessary to enable it to determine the application.
      (3) The Authority may, on an application under subsection (1), vary the order if it considers that the recognition requirements will continue to be satisfied if the order is varied.
Revoking recognition.     291. - (1) A recognition order may be revoked by an order made by the Authority at the request, or with the consent, of the recognised body concerned.
      (2) If it appears to the Authority that a recognised body-
    (a) is failing, or has failed, to satisfy the recognition requirements, or
    (b) is failing, or has failed, to comply with any other obligation imposed on it by or under this Act,
  it may make an order revoking the recognition order for that body even though the body does not wish the order to be made.
      (3) An order under this section ("a revocation order") must specify the date on which it is to take effect.
      (4) In the case of a revocation order made under subsection (2), the specified date must not be earlier than the end of the period of three months beginning with the day on which the order is made.
      (5) A revocation order may contain such transitional provisions as the Authority thinks necessary or expedient.
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