Financial Services Act 1986 (Repealed)

177 Investigations into insider dealing. U.K.

(1) If it appears to the Secretary of State that there are circumstances suggesting that [F1 an offence under Part V of the Criminal Justice Act 1993 (insider dealing) may have been committed], he may appoint one or more competent inspectors to carry out such investigations as are requisite to establish whether or not any such [F1 offence has been committed] and to report the results of their investigations to him.

(2) The appointment under this section of an inspector may limit the period during which he is to continue his investigation or confine it to particular matters.

[F2 (2A) At any time during the investigation the Secretary of State may vary the appointment by limiting or extending the period during which the inspector is to continue his investigation or by confining the investigation to particular matters.]

(3) If the inspectors consider that any person is or may be able to give information concerning any such [F3 offence] they may require that person—

(a) to produce to them any documents in his possession or under his control [F4 which appear to them to be relevant to the investigation]

(b) to attend before them; and

(c) otherwise to give them all assistance in connection with the investigation which he is reasonably able to give;

and it shall be the duty of that person to comply with that requirement.

(4) An inspector may examine on oath any person who he considers is or may be able to give information concerning any such [F5 offence], and may administer an oath accordingly.

(5) The inspectors shall make such interim reports to the Secretary of State as they think fit or he may direct and on the conclusion of the investigation they shall make a final report to him.

[F6 (5A) If the Secretary of State thinks fit, he may direct the inspector to take no further steps in the investigation or to take only such further steps as are specified in the direction; and where an investigation is the subject of such a direction, the inspectors shall make a final report to the Secretary of State only where the Secretary of State directs them to do so.]

(6) A statement made by a person in compliance with a requirement imposed by virtue of this section may be used in evidence against him.

(7) A person shall not under this section be required to disclose any information or produce any document which he would be entitled to refuse to disclose or produce on grounds of legal professional privilege in proceedings in the High Court or on grounds of confidentiality as between client and professional legal adviser in proceedings in the Court of Session.

[F7 (8) A person shall not under this section be required to disclose any information or produce any document in respect of which he owes an obligation of confidence by virtue of carrying on the business of banking unless—

(a) the person to whom the obligation of confidence is owed consents to the disclosure or production, or

(b) the making of the requirement was authorised by the Secretary of State.]

(9) Where a person claims a lien on a document its production under this section shall be without prejudice to his lien.

(10) In this section “document” includes information recorded in any form; and in relation to information recorded otherwise than in legible form [F8 the power to require its production includes power to require the production of] a copy of the information in legible form.

[F9 (11) A person who is convicted on a prosecution instituted as a result of an investigation under this section may in the same proceedings be ordered to pay the expenses of the investigation to such an extent as may be specified in the order.

There shall be treated as expenses of the investigation, in particular, such reasonable sums as the Secretary of State may determine in respect of general staff costs and overheads.]

Textual Amendments

F1 Words in s. 177(1) substituted (1.3.1994) by 1993 c. 36, s. 78(3), Sch. 5 para. 9(1); S.I. 1994/242, art. 2, Sch.

F2 S. 177(2A) inserted by Companies Act 1989 (c. 40, SIF 27), s. 74(2)

F3 Word in s. 177(3) substituted (1.3.1994) by 1993 c. 36, s. 78(3), Sch. 5 para. 9(2)(a); S.I. 1994/242, art. 2, Sch.

F4 Words in s. 177(3)(a) substituted (1.3.1994) by 1993 c. 36, s. 78(3), Sch. 5 para. 9(2)(b); 1994/242, art. 2, Sch.

F5 Word in s. 177(4) substituted (1.3.1994) by 1993 c. 36, s. 78(3), Sch. 5 para. 9(3); 1994/242, art. 2, Sch.

F6 S. 177(5A) inserted by Companies Act 1989 (c. 40, SIF 27), s. 74(3)

F7 S. 177(8) substituted by Companies Act 1989 (c. 40, SIF 27), s. 74(4)

F8 Words substituted by Companies Act 1989 (c. 40, SIF 27), s. 74(5)

F9 S. 177(11) inserted by Companies Act 1989 (c. 40, SIF 27), s. 74(6)