F12Part 18ASUSPENSION AND REMOVAL OF FINANCIAL INSTRUMENTS FROM TRADING
313AF15FCA's power to require suspension or removal of financial instruments from trading
1
The F14FCA may, for the purpose of protecting—
a
the interests of investors, or
b
the orderly functioning of the financial markets,
require an institution F1or a class of institutions to suspend or remove a financial instrument from trading.
F22
If the F14FCA exercises the power conferred by subsection (1), the matter may be referred to the Tribunal by—
a
the institution or, as the case may be, any institution in the class, or
b
the issuer of the financial instrument (if any).
3
In this section, “trading” includes trading otherwise than on a regulated market or a multilateral trading facility.
313BSuspension or removal of financial instruments from trading: procedure
1
A requirement imposed on an institution under section 313A (a “relevant requirement”) takes effect—
a
immediately, if the notice given under subsection (2) states that this is the case;
b
in any other case, on such date as may be specified in the notice.
2
If the F14FCA proposes to impose a relevant requirement on an institution, F3or a class of institutions, or imposes such a requirement with immediate effect, it must give written notice toF4 give notice—
a
by written notice to—
i
the institution or, as the case may be, each institution in the class, and
ii
the issuer of the financial instrument in question (if any); or
b
by publishing a notice by means of a regulatory information service.
3
F5A notice given under subsection (2)(a) must—
a
give details of the relevant requirement;
b
state the F15FCA's reasons for imposing the requirement and choosing the date on which it took effect or takes effect;
c
inform the recipient that he may make representations to the F14FCA within such period as may be specified by the notice (whether or not he has referred the matter to the Tribunal);
d
inform him of the date on which the requirement took effect or takes effect; and
e
inform him of his right to refer the matter to the Tribunal and give an indication of the procedure on such a reference.
F63A
A notice published under subsection (2)(b) must—
a
give details of the relevant requirement;
b
specify the institution, or the class of institutions, to which it applies;
c
state the F15FCA's reasons for imposing the requirement and choosing the date on which it took effect or takes effect;
d
state that any institution to which the requirement applies or the issuer of the financial instrument in question may make representations to the F14FCA within such period as may be specified by the notice (whether or not the institution or the issuer has referred the matter to the Tribunal);
e
state the date on which the requirement took effect or takes effect; and
f
state that any institution to which the requirement applies or the issuer of the financial instrument in question has a right to refer the matter to the Tribunal, and give an indication of the procedure on such a reference.
4
The F14FCA may extend the period within which representations may be made to it.
5
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313BAF11Procedure following consideration of representations
1
This section applies where, within the period specified under section 313B(3), (3A) or (4), representations are made to the F14FCA in relation to a requirement that it has proposed to impose or has imposed under section 313A.
2
The F14FCA must decide whether to impose the requirement or (in the case of a requirement that has been imposed) whether to revoke it.
3
In the case of a requirement that the F14FCA has proposed to impose on a class of institutions, the F14FCA may decide to impose the requirement—
a
on the class;
b
on the class apart from one or more specified members of it; or
c
only on one or more specified members of the class.
4
In the case of a requirement that the F14FCA has imposed on a class of institutions, the F14FCA may decide to revoke it in relation to—
a
the class;
b
the class apart from one or more specified members of it; or
c
one or more specified members of the class only.
5
The F14FCA must give written notice of its decision to—
a
any institution which has made representations, and
b
the issuer of the financial instrument in question (if any).
6
In the case of a requirement that the F14FCA has proposed to impose or has imposed on a class, the F14FCA must also give notice of its decision by publishing it by means of a regulatory information service unless the decision is—
a
to impose the requirement on the class, or
b
not to revoke the requirement in relation to the class or any member of it.
7
An institution to which notice is required to be given under subsection (5) may refer the matter to the Tribunal if the F15FCA's decision is that the requirement will be imposed on, or will continue to apply to, the institution.
8
An issuer to whom notice is required to be given under subsection (5) may refer the matter to the Tribunal if the F15FCA's decision is that the requirement will be imposed on, or will continue to apply to, the institution or (in the case of a requirement relating to a class) any of the institutions in the class.
9
A notice given under subsection (5) must inform the recipient if the recipient has a right to refer the matter to the Tribunal.
313BBRevocation of requirements: applications by institutions
1
This section applies where the F14FCA has imposed a requirement on an institution or a class of institutions under section 313A.
2
The institution or any of the institutions in the class may apply to the F14FCA for the revocation of the requirement.
3
The F14FCA must decide whether to revoke the requirement.
4
In the case of a requirement imposed on a class of institutions, the F14FCA may decide to revoke it in relation to—
a
the class;
b
the class apart from one or more specified members of it; or
c
one or more specified members of the class only.
5
The F14FCA must give a warning notice if—
a
in the case of a requirement imposed on an institution, the F14FCA proposes not to revoke the requirement, or
b
in the case of a requirement imposed on a class, the F14FCA proposes to make a decision which would have the effect that the requirement continues to apply to the applicant (whether or not it would have the effect that it continues to apply to other members of the class).
6
The warning notice must be given to—
a
the applicant, and
b
the issuer of the financial instrument in question (if any).
313BCDecisions on applications for revocation by institutions
1
This section applies where, having considered any representations made in response to a warning notice, the F14FCA has decided whether to grant an application for revocation made under section 313BB.
2
The F14FCA must give written notice in accordance with subsection (3) if—
a
in the case of a requirement imposed on an institution, the F14FCA decides to revoke the requirement, or
b
in the case of a requirement imposed on a class, the F14FCA makes a decision which has the effect that the requirement will no longer apply to the applicant (whether or not it will continue to apply to other members of the class).
3
The written notice must be given to—
a
the applicant, and
b
the issuer of the financial instrument in question (if any).
4
5
The F14FCA must give a decision notice in accordance with subsection (6) if—
a
in the case of a requirement imposed on an institution, the F14FCA decides not to revoke the requirement, or
b
in the case of a requirement imposed on a class, the F14FCA makes a decision which has the effect that the requirement will continue to apply to the applicant (whether or not it will continue to apply to other members of the class).
6
The decision notice must be given to—
a
the applicant, and
b
the issuer of the financial instrument in question (if any).
7
8
If the F14FCA gives a decision notice, the recipient may refer the matter to the Tribunal.
313BDRevocation of requirements: applications by issuers
1
This section applies where the F14FCA has imposed a requirement on an institution or a class of institutions under section 313A.
2
The issuer of the financial instrument may apply to the F14FCA for the revocation of the requirement.
3
The F14FCA must decide whether to revoke the requirement.
4
In the case of a requirement imposed on a class of institutions, the F14FCA may decide to revoke it in relation to—
a
the class;
b
the class apart from one or more specified members of it; or
c
one or more specified members of the class only.
5
The F14FCA must give the issuer a warning notice if—
a
in the case of a requirement imposed on an institution, the F14FCA proposes not to revoke the requirement, or
b
in the case of a requirement imposed on a class, the F14FCA proposes not to revoke the requirement or to revoke it in relation to—
i
the class apart from one or more specified members of it, or
ii
one or more specified members of the class only.
313BEDecisions on applications for revocation by issuers
1
This section applies where, having considered any representations made in response to a warning notice, the F14FCA has decided whether to grant an application for revocation made under section 313BD.
2
3
4
The F14FCA must give the issuer a decision notice if—
a
in the case of a requirement imposed on an institution, the F14FCA decides not to revoke the requirement, or
b
in the case of a requirement imposed on a class, the F14FCA decides not to revoke the requirement or makes a decision to revoke the requirement in relation to—
i
the class apart from one or more specified members of it, or
ii
one or more specified members of the class only.
5
If the F14FCA is required to give a decision notice under subsection (4)(b), it must also give notice of its decision by publishing it by means of a regulatory information service.
6
If the F14FCA gives a decision notice under subsection (4), the issuer may refer the matter to the Tribunal.
313CNotification in relation to suspension or removal of a financial instrument from trading
1
If the F14FCA exercises the power under section 313A(1) in relation to a financial instrument traded on a regulated market, it must as soon as reasonably practicable—
a
publish its decision in such manner as it considers appropriate F8unless the decision has already been published under section 313B(2)(b), and
b
inform F13ESMA and the competent authorities of all other EEA States of its decision.
2
3
Subsections (4) and (5) apply if the F14FCA receives notice from the competent authority of another EEA State that that authority, pursuant to Article 41.2 of the markets in financial instruments directive—
a
has required the suspension of a financial instrument from trading, or
b
has required the removal of a financial instrument from trading.
4
In the case of a notice under subsection (3)(a), the F14FCA—
a
must require each recognised investment exchange to suspend the instrument from trading on any regulated market operated by the exchange, and
b
must require each institution operating a multilateral trading facility to suspend the instrument from trading on that facility,
unless such a step would be likely to cause significant damage to the interests of investors or the orderly functioning of the financial markets.
5
In the case of a notice under subsection (3)(b), the F14FCA—
a
must require each recognised investment exchange to remove the instrument from trading on any regulated market operated by the exchange, and
b
must require each institution operating a multilateral trading facility to remove the instrument from trading on that facility,
unless such a step would be likely to cause significant damage to the interests of investors or the orderly functioning of the financial markets.
6
”Competent authority” has the meaning given in Article 4.1.22 of the markets in financial instruments directive.
313DInterpretation of Part 18A
In this Part—
“financial instrument” has the meaning given in Article 4.1.17 of the markets in financial instruments directive;
“institution” means—
- a
a recognised investment exchange, other than an overseas investment exchange (within the meaning of Part 18);
- b
an investment firm;
- c
a credit institution authorised under the F16capital requirements directive, when carrying on investment services and activities; or
- d
an institution which would satisfy the requirements for authorisation as a credit institution under that directive if it had its registered office (or if it does not have a registered office, its head office) in an EEA State,
but does not include an EEA firm qualifying for authorisation under Schedule 3;
- a
“issuer”, in relation to a financial instrument, means the person who issued the instrument;
“multilateral trading facility” has the meaning given in Article 4.1.15 of the markets in financial instruments directive;
F9“regulated information” has the meaning given in Article 2(1)(k) of the transparency obligations directive (as defined in section 103 of this Act);
F10“regulatory information service” means—
- a
a service approved by the F14FCA to disseminate regulated information in accordance with rules made under section 89A of this Act, or
- b
a service established in an EEA state other than the United Kingdom which is used for the dissemination of regulated information for the purposes of Article 21 of the transparency obligations directive;
- a
“regulated market” has the meaning given in Article 4.1.14 of the markets in financial instruments directive.
Pt. 18A inserted (1.4.2007 for certain purposes and 1.11.2007 otherwise) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(3), Sch. 3 para. 1