xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

[F1Part 8AU.K.Short selling

Textual Amendments

F1Pt. 8A inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 8, 26(2)(b)

Breach of short selling [F2regulation] etc U.K.

Textual Amendments

131GPower to impose penalty or issue censureU.K.

(1)This section applies if the [F3FCA] is satisfied that a person has contravened—

(a) any provision of [F4 the short selling regulation] ; or

(b)any requirement imposed on the person under section 131E or 131F.

(2)The [F3FCA] may impose a penalty of such amount as it considers appropriate on—

(a)the person who contravened the provision or requirement; or

(b)any person who was knowingly concerned in the contravention.

(3)It may, instead of imposing a penalty on a person, publish a statement censuring the person.

(4)The [F3FCA] may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 131H.

(5) “ The limitation period ” means the period of three years beginning with the first day on which the [F3FCA] knew of the contravention.

(6)For this purpose the [F3FCA] is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.

Textual Amendments

131HProcedure and right to refer to TribunalU.K.

(1)If the [F3FCA] proposes to take action against a person under section 131G, it must give the person a warning notice.

(2)A warning notice about a proposal to impose a penalty must state the amount of the penalty.

(3)A warning notice about a proposal to publish a statement must set out the terms of the statement.

(4)If the [F3FCA] decides to take action against a person under section 131G, it must give the person a decision notice.

(5)A decision notice about the imposition of a penalty must state the amount of the penalty.

(6)A decision notice about the publication of a statement must set out the terms of the statement.

(7)If the [F3FCA] decides to take action against a person under section 131G, the person may refer the matter to the Tribunal.

Textual Amendments

131IDuty on publication of statementU.K.

After a statement under section 131G(3) is published, the [F3FCA] must send a copy of the statement to—

(a)the person in respect of whom it is made; and

(b)any person to whom a copy of the decision notice was given under section 393(4).

Textual Amendments

131JImposition of penalties under section 131G: statement of policyU.K.

(1)The [F3FCA] must prepare and issue a statement of its policy with respect to—

(a)the imposition of penalties under section 131G; and

(b)the amount of penalties under that section.

(2)The [F3FCA's] policy in determining what the amount of a penalty should be must include having regard to—

(a)the seriousness of the contravention;

(b)the extent to which the contravention was deliberate or reckless; and

(c)whether the person on whom the penalty is to be imposed is an individual.

(3)The [F3FCA] may at any time alter or replace a statement issued under this section.

(4)If a statement issued under this section is altered or replaced, the [F3FCA] must issue the altered or replaced statement.

(5)The [F3FCA] must, without delay, give the Treasury a copy of any statement which it publishes under this section.

(6)A statement issued under this section must be published by the [F3FCA] in the way appearing to the [F3FCA] to be best calculated to bring it to the attention of the public.

(7)The [F3FCA] may charge a reasonable fee for providing a person with a copy of the statement.

(8)In exercising, or deciding whether to exercise, a power under section 131G in the case of any particular contravention, the [F3FCA] must have regard to any statement of policy published under this section and in force at a time when the contravention occurred.

Textual Amendments

131KStatement of policy: procedureU.K.

(1)Before issuing a statement under section 131J, the [F3FCA] must publish a draft of the proposed statement in the way appearing to the [F3FCA] to be best calculated to bring it to the attention of the public.

(2)The draft must be accompanied by notice that representations about the proposal may be made to the [F3FCA] within a specified time.

(3)Before issuing the proposed statement, the [F3FCA] must have regard to any representations made to it in accordance with subsection (2).

(4)If the [F3FCA] issues the proposed statement it must publish an account, in general terms, of—

(a)the representations made to it in accordance with subsection (2); and

(b)its response to them.

(5)If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the [F3FCA], significant, the [F3FCA] must (in addition to complying with subsection (4)) publish details of the difference.

(6)The [F3FCA] may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

(7)This section also applies to a proposal to alter or replace a statement.]

Textual Amendments

[F5131L.OffencesU.K.

(1) If a relevant person (“A”) fails to comply with a requirement imposed on A under section 131E or 131F the [F3FCA] may certify that fact in writing to the court.

(2)If the court is satisfied that A failed without reasonable excuse to comply with the requirement, it may deal with A (and where A is a body corporate, any director or officer) as if A (or as the case may be the director or officer) were in contempt; and “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership.

(3)A relevant person (“B”) who, in purported compliance with a requirement imposed on B under section 131E or 131F—

(a)provides information which B knows to be false or misleading in a material particular, or

(b)recklessly provides information which is false or misleading in a material particular,

is guilty of an offence.

(4)A person guilty of an offence under subsection (3) is liable—

(a)on summary conviction, to imprisonment for a term not exceeding three months or a fine not exceeding the statutory maximum, or both;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or a fine, or both.

(5)Any person who intentionally obstructs the exercise of any rights conferred by a warrant under section 131FB is guilty of an offence and liable on summary conviction to imprisonment for a term not exceeding three months or a fine not exceeding level 5 on the standard scale, or both.

(6) In relation to any contravention by a person, the [F3FCA] may not exercise both—

(a)its powers under section 131G(2), and

(b)its powers under subsection (1).

(7)In this section—

Textual Amendments