Safeguards for investorsU.K.
3[F1(1)The organisation must have rules governing the carrying on of investment business by its members which, together with the statements of principle, rules, regulations and codes of practice to which its members are subject under Chapter V of Part I of this Act, are such as to afford an adequate level of protection for investors.
(2)In determining in any case whether an adequate level of protection is afforded for investors of any description, regard shall be had to the nature of the investment business carried on by members of the organisation, the kinds of investors involved and the effectiveness of the organisation’s arrangements for enforcing compliance.]
(3)The organisation must, so far as practicable, have powers for purposes corresponding to those of Chapter VI of Part I of this Act.
(4)The rules of the organisation must enable it to prevent a member resigning from the organisation if the organisation considers that any matter affecting him should be investigated as a preliminary to a decision on the question whether he should be expelled or otherwise disciplined or if it considers that it is desirable that a prohibition or requirement should be imposed on him under the powers mentioned in sub-paragraph (3) above or that any prohibition or requirement imposed on him under those powers should continue in force.
Textual Amendments
F1Sch. 2 para. 3(1)(2) substituted by Companies Act 1989 (c. 40, SIF 27), s. 203(1)
Modifications etc. (not altering text)
C1Sch. 2 para. 3 amended (1.1.1993) by S.I. 1992/3218, reg. 55, Sch. 9 para. 45(2).
SCh. 2 para. 3 amended (1.7.1994) by S.I. 1994/1696, reg. 56(2)
Sch. 2 para. 3 extended (1.1. 1996) by S.I. 1995/3275, reg. 32, Sch. 7 para. 43(2)(3)
C2Sch. 2 para. 3(3) amended (1.1.1993) by S.I. 1992/3218, reg. 55, Sch. 9 para. 45(3)(a).