3(1)The constitution of the scheme operator must provide for it to have—U.K.
(a)a chairman; and
(b)a board (which must include the chairman) whose members are the scheme operator’s directors.
(2)The chairman and other members of the board must be persons appointed, and liable to removal from office, by the [F1FCA] (acting, in the case of the chairman, with the approval of the Treasury).
(3)But the terms of their appointment (and in particular those governing removal from office) must be such as to secure their independence from the [F1FCA] in the operation of the scheme.
(4)The function of making voluntary jurisdiction rules under section 227 F2... and the functions conferred by paragraphs 4, 5, 7, 9 [F3, 9A] or 14 may be exercised only by the board.
(5)The validity of any act of the scheme operator is unaffected by—
(a)a vacancy in the office of chairman; or
(b)a defect in the appointment of a person as chairman or as a member of the board.
Textual Amendments
F1Word in Sch. 17 para. 3 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 11 para. 15(a) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
F2Words in Sch. 17 para. 3(4) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(21)(a)
F3Word in Sch. 17 para. 3(4) inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 11 para. 15(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.