C1C2Part I Regulation of Investment Business
Pt. I (ss. 1–128): power to modify conferred (prosp.) by Courts and Legal Services Act 1990 (c. 41, SIF 76:1), ss. 89, 124(3), Sch. 14 para. 9(c)
C3Chapter XI Auditors
Chapters III–XI (ss. 7–111): certain functions transferred by S.I. 1990/354, art. 5
107AF2 Application of audit rules to members of self-regulating organisations.
1
The Secretary of State may in rules under section 107 designate provisions which apply, to such extent as may be specified, to a member of a recognised self-regulating organisation in respect of investment business in the carrying on of which he is subject to the rules of the organisation.
2
It may be provided that the designated rules have effect, generally or to such extent as may be specified, subject to the rules of the organisation.
3
A member of a recognised self-regulating organisation who contravenes a rule applying to him by virtue of that section shall be treated as having contravened the rules of the organisation.
4
Except as mentioned above, rules made under section 107 do not apply to members of recognised self-regulating organisations in respect of investment business in the carrying on of which they are subject to the rules of the organisation.
5
A recognised self-regulating organisation may on the application of a member of the organisation—
a
modify a rule designated under this section so as to adapt it to his circumstances or to any particular kind of business carried on by him, or
b
dispense him from compliance with any such rule, generally or in relation to any particular kind of business carried on by him.
6
The powers conferred by subsection (5) shall not be exercised unless it appears to the organisation—
a
that compliance with the rule in question would be unduly burdensome for the applicant having regard to the benefit which compliance would confer on investors, and
b
that the exercise of those powers will not result in any undue risk to investors.
7
The powers conferred by subsection (5) may be exercised unconditionally or subject to conditions; and subsection (3) applies in the case of a contravention of a condition as in the case of contravention of a designated rule.
8
The reference in paragraph 4(1) of Schedule 2 (requirements for recognition of self-regulating organisations) to monitoring and enforcement of compliance with rules includes monitoring and enforcement of compliance with conditions imposed by the organisation under subsection (7).
Pt. I (ss. 1-128) amended (S.) (22.5.2000) by S.I. 2000/121, regs. 1, 37, Sch. 2