Financial Services Act 1986 (Repealed)

150 Compensation for false or misleading particulars. U.K.

(1) Subject to section 151 below, the person or persons responsible for any listing particulars or supplementary listing particulars shall be liable to pay compensation to any person who has acquired any of the securities in question and suffered loss in respect of them as a result of any untrue or misleading statement in the particulars or the omission from them of any matter required to be included by section 146 or 147 above.

(2) Where listing rules require listing particulars to include information as to any particular matter on the basis that the particulars must include a statement either as to that matter or, if such is the case, that there is no such matter, the omission from the particulars of the information shall be treated for the purposes of subsection (1) above as a statement that there is no such matter.

(3) Subject to section 151 below, a person who fails to comply with section 147 above shall be liable to pay compensation to any person who has acquired any of the securities in question and suffered loss in respect of them as a result of the failure.

(4) This section does not affect any liability which any person may incur apart from this section.

(5) References in this section to the acquisition by any person of securities include references to his contracting to acquire them or an interest in them.

(6) No person shall by reason of being a promoter of a company or otherwise incur any liability for failing to disclose any information which he would not be required to disclose in listing particulars in respect of a company’s securities if he were responsible for those particulars or, if he is responsible for them, which he is entitled to omit by virtue of section 148 above.

[F1 The reference above to a person incurring liability includes a reference to any other person being entitled as against that person to be granted any civil remedy or to rescind or repudiate any agreement.]

Textual Amendments

F1 Words inserted by Companies Act 1989 (c. 40, SIF 27), s. 197(1)

Modifications etc. (not altering text)

C2 S. 150 applied (with modifications) (E.W.) by Water Act 1989 (c. 15, SIF 130), s. 90(2) (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58)

C3 S. 150 continued (1.12.2001) by S.I. 2001/2957, art. 7(1)(2); S.I. 2001/3538, art. 2(1)

C4 S. 150 modified (6.1.1994) by 1993 c. 43, s. 107(2)(3); S.I. 1993/3237, art. 2(2).