In Chapter V of Part I of the M1Financial Services Act 1986 (conduct of investment business), after section 62 (actions for damages) insert—

“62A Restriction of right of action.

(1)

No action in respect of a contravention to which section 62 above applies shall lie at the suit of a person other than a private investor, except in such circumstances as may be specified by regulations made by the Secretary of State.

(2)

The meaning of the expression “private investor” for the purposes of subsection (1) shall be defined by regulations made by the Secretary of State.

(3)

Regulations under subsection (1) may make different provision with respect to different cases.

(4)

The Secretary of State shall, before making any regulations affecting the right to bring an action in respect of a contravention of any rules or regulations made by a person other than himself, consult that person.”.

In section 114(5) of the M2Financial Services Act 1986 (transfer of functions to designated agency: excluded functions), after paragraph (d) insert—

“(dd)

section 62A;”.

In Schedule 11 to the Financial Services Act 1986 (friendly societies), after paragraph 22 insert—

“22A

(1)

No action in respect of a contravention to which paragraph 22(4) above applies shall lie at the suit of a person other than a private investor, except in such circumstances as may be specified by regulations made by the Registrar.

(2)

The meaning of the expression “private investor” for the purposes of sub-paragraph (1) shall be defined by regulations made by the Registrar.

(3)

Regulations under sub-paragraph (1) may make different provision with respect to different cases.

(4)

The Registrar shall, before making any regulations affecting the right to bring an action in respect of a contravention of any rules or regulations made by a person other than himself, consult that person.”.