Financial Services Act 1986 (Repealed)

[F147A Statements of principle.U.K.

(1)The Secretary of State may issue statements of principle with respect to the conduct and financial standing expected of persons authorised to carry on investment business.

(2)The conduct expected may include compliance with a code or standard issued by another person, as for the time being in force, and may allow for the exercise of discretion by any person pursuant to any such code or standard.

(3)Failure to comply with a statement of principle under this section is a ground for the taking of disciplinary action or the exercise of powers of intervention, but it does not of itself give rise to any right of action by investors or other persons affected or affect the validity of any transaction.

(4)The disciplinary action which may be taken by virtue of subsection (3) is—

(a)the withdrawal or suspension of authorisation under section 28 or the termination or suspension of authorisation under section 33,

(b)the giving of a disqualification direction under section 59,

(c)the making of a public statement under section 60, F2. . .

(d)the application by the Secretary of State for an injunction, interdict or other order under section 61(1);

[F3F4. . .

(e)the giving of a direction under regulation 18 of the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996 (directions) or the making of an application for an order under regulation 20 of those Regulations (application to court to remove director or depositary);]

[F5or

(f)the giving of a direction under regulation 18 of the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations (Northern Ireland) 1997 (directions) or the making of an application for an order under regulation 20 of those Regulations (application to court to remove director or depositary);]

and the reference in that subsection to powers of intervention is to the powers conferred by Chapter VI of this Part.

(5)Where a statement of principle relates to compliance with a code or standard issued by another person, the statement of principle may provide—

(a)that failure to comply with the code or standard shall be a ground for the taking of disciplinary action, or the exercise of powers of intervention, only in such cases and to such extent as may be specified; and

(b)that no such action shall be taken, or any such power exercised, except at the request of the person by whom the code or standard in question was issued.

(6)The Secretary of State shall exercise his powers in such manner as appears to him appropriate to secure compliance with statements of principle under this section.]

Textual Amendments

F2Word in s. 47A(4)(c) omitted (6.1.1997) by virtue of S.I. 1996/2827, reg. 75, Sch. 8 para. 12

F3S. 47A(4)(e) and the preceding word

“or”

inserted (6.1.1997) by S.I. 1996/2827, reg. 75, Sch. 8 para. 12

F4S. 47A; the word “or” at the end of paragraph (d) omitted (7.7.1997) by virtue of S.R. 1997/251, reg. 75, Sch. 8 para. 10

F5S. 47A(4)(f) and the word “or” immediately preceding inserted (7.7.1997) by S.R. 1997/251, reg. 75, Sch. 8 para. 10

Modifications etc. (not altering text)

C1S. 47A: certain functions transferred by SI 1990/354, art. 4(3)(a)

C2S. 47A: certain functions of the Secretary of State made exercisable jointly by the Secretary of State and the Treasury (7.6.1992) by S.I. 1992/1315, art. 4, Sch. 2 para. 3.

S. 47A amended (1.1.1993) by S.I. 1992/3218, reg. 55, Sch. 9 para. 9.

s. 47A amended (1.7.1994) by S.I. 1994/1696, reg. 58(1)

s. 47A modified (1.1.1996) by S.I. 1995/3275, reg. 32, Sch. 7 para. 9(1)(2)

s. 47A extended (1.1.1996) by S.I. 1995/3275, reg. 32, Sch. 7 Pt. II para. 4(1)