The FCA may require any information provided under this section to be provided in such form as it may reasonably require.

The FCA may require any information provided, whether in a document or otherwise, to be verified in such manner as it may reasonably require.

In this section—

• “person closely associated” has the meaning given in Article 3.1(26) of the market abuse regulation (see section 131AC (meaning of “persons closely associated” in the market abuse regulation)); and

• “person discharging managerial responsibilities” has the meaning given in Article 3.1(25) of the market abuse regulation.

For the meaning of “issuer” in this Part, see section 131AB.

This section applies only to information and documents that the FCA reasonably requires for the purpose of the exercise by it of functions under the market abuse regulation or a supplementary EU regulation.

The FCA may require any information provided under this section to be provided in such form as it may reasonably require.

The FCA may exercise its powers under this section at the request of an EEA regulator where the regulator makes the request in the exercise of its functions under the market abuse regulation or a supplementary EU regulation.

If such a request is made to the FCA it must, in deciding whether or not to exercise its powers under this section in response to the request, consider whether it is necessary to do so to comply with the market abuse regulation or a supplementary EU regulation.

In this section “specified” means specified in the notice.

If a person who is required under section 122B to produce a document fails to do so, the FCA may require the person to state, to the best of the person’s knowledge and belief, where the document is.

A lawyer may be required under section 122B to provide the name and address of the lawyer’s client.

A person (“P”) may not be required under section 122A or 122B to disclose information or produce a document in respect of which P owes an obligation of confidence by virtue of carrying on the business of banking unless condition A, B or C is met.

Condition C is met if the person to whom the obligation of confidence is owed consents to the disclosure or production.

If a person claims a lien on a document, its production under section 122B does not affect the lien.

A justice of the peace may issue a warrant under this section if satisfied on information on oath given by or on behalf of the FCA that there are reasonable grounds for believing that the conditions in subsection (2) are met.

A warrant under this section may be executed by any constable.

The warrant may authorise persons to accompany any constable who is executing it.

The powers in subsection (3) may be exercised by a person authorised by the warrant to accompany a constable; but that person may exercise those powers only in the company of, and under the supervision of, a constable.

In England and Wales, sections 15(5) to (8) and 16(3) to (12) of the Police and Criminal Evidence Act 1984 (execution of search warrants and safeguards) apply to warrants issued under this section.

In Northern Ireland, Articles 17(5) to (8) and 18(3) to (12) of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)) apply to warrants issued under this section.

The FCA may give information under subsection (1) or under section 176(1) at the request of an EEA regulator where the regulator makes the request in the exercise of its functions under the market abuse regulation or a supplementary EU regulation.

The FCA must, in deciding whether or not to exercise a power referred to in subsection (10), consider whether the exercise of that power is necessary to comply with an obligation under the market abuse regulation or a supplementary EU regulation.

Any document of which possession is taken under section 122D (“a seized document”) may be retained so long as it is necessary to retain it (rather than copies of it) in the circumstances.

A person claiming to be the owner of a seized document may apply to a magistrates’ court or (in Scotland) the sheriff for an order for the delivery of the document to the person appearing to the court or sheriff to be the owner.

If, on an application under subsection (2), the court or (in Scotland) the sheriff cannot ascertain who is the owner of the seized document the court or sheriff (as the case may be) may make such order as the court or sheriff thinks fit.

An order under subsection (2) or (3) does not affect the right of any person to take legal proceedings against any person in possession of a seized document for the recovery of the document.

Any right to bring proceedings (as described in subsection (4)) may only be exercised within 6 months of the date of the order made under subsection (2) or (3).

If a person (“A”) fails to comply with a requirement imposed on A under section 122B or 122C the FCA may certify that fact in writing to the court.

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 other officer) as if A (or as the case may be the director or officer) were in contempt.

If a person fails to comply with a requirement to publish information or a statement under this section, the FCA may publish the information or statement.

But before doing so, the FCA must give that person an opportunity to make representations to it regarding its decision to publish the information or statement under subsection (5).

In this section “specified” means specified by the FCA.

For the meaning of “issuer”, see section 131AB.

Condition B is met if the FCA considers that the publication of the information or statement is necessary for the purpose of the exercise by it of functions under the market abuse regulation or a supplementary EU regulation.

If a person fails to comply with a requirement to publish information or a statement under this section the FCA may publish the information or statement.

But before doing so, the FCA must give that person an opportunity to make representations to it regarding its decision to publish the information or statement under subsection (5).

In this section “specified” means specified in the notice.

The FCA may suspend trading of a financial instrument where it considers it necessary for the purpose of the exercise by it of functions under the market abuse regulation or a supplementary EU regulation.

If the FCA does so the issuer of the financial instrument may refer the matter to the Tribunal.

For the meaning of “issuer” in this Part, see section 131AB.

The FCA’s power under this subsection is a power to impose a penalty of such amount as it considers appropriate on the person.

The FCA may, instead of imposing a penalty on a person, publish a statement censuring the person.

If the FCA is satisfied that an individual has contravened Article 14 or 15 of the market abuse regulation the FCA may impose a permanent prohibition on the individual holding an office or position involving responsibility for taking decisions about the management of an investment firm.

A prohibition imposed under subsection (2) may be expressed to expire at the end of such period as the FCA may specify, but the imposition of a prohibition that expires at the end of a specified period does not affect the FCA’s power to impose a new prohibition under subsection (2).

An investment firm must take reasonable care to ensure that no individual who is subject to a prohibition under subsection (2)(a) or (3) on the holding of an office or position involving responsibility for taking decisions about the management of the firm holds such an office or position.

The FCA may vary or revoke a prohibition imposed under this section.

In subsection (2) “permission” means any permission that the authorised person has, whether given (or treated as given) by the FCA or the PRA or conferred by any provision of this Act.

The period for which a suspension or restriction is to have effect may not exceed 12 months.

A suspension may relate only to the carrying on of an activity in specified circumstances.

A restriction may, in particular, be imposed so as to require the person concerned to take, or refrain from taking, specified action.

The power under this section may (but need not) be exercised so as to have effect in relation to all the regulated activities that the person concerned carries on.

The FCA must prepare and issue a statement of its policy with respect to the type and level of administrative sanctions it may impose on a relevant person.

The FCA’s policy in determining the type and level of administrative sanctions to be imposed must take into account all relevant circumstances including, where appropriate, the matters referred to in Article 31(1) of the market abuse regulation.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The F3FCA may at any time alter or replace a statement issued under this section.

If a statement issued under this section is altered or replaced, the F3FCA must issue the altered or replacement statement.

When imposing, or deciding whether to impose, an administrative sanction on a relevant person the FCA must have regard to any statement published under this section in force at the time of the contravention.

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.

The F3FCA may charge a reasonable fee for providing a person with a copy of a statement published under this section.

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

In this section—

• “administrative sanction” means—

  1. a

     a penalty or statement of censure imposed or published under section 123;

  2. b

     a prohibition imposed under section 123A; or

  3. c

     a suspension or restriction imposed under section 123B; and

• “relevant person” means a person—

  1. a

     who has contravened Article 14 (prohibition of insider dealing and of unlawful disclosure of inside information) or Article 15 (prohibition of market manipulation) of the market abuse regulation;

  2. b

     who has contravened, or been knowingly concerned in the contravention of—

     1. i

        a provision of the market abuse regulation other than Article 14 or 15 of that regulation; or

     2. ii

        a provision of a supplementary EU regulation; or

  3. c

     who has contravened—

     1. i

        any requirement imposed on the person under section 122A, 122B, 122C, 122G, 122H, 122I, 123A or 123B; or

     2. ii

        in the case of a person other than an authorised person, any requirement relating to the market abuse regulation or a supplementary EU regulation imposed on the person under Part 11.

Before issuing a statement of policy under section 124, 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.

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

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

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.

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

This section also applies to a proposal to alter or replace a statement.

A warning notice about a proposal to impose a penalty F17under section 123 must state the amount of the proposed penalty.

A warning notice about a proposal to publish a statement F18under section 123 must set out the terms of the proposed statement.

A warning notice about a proposal to impose a prohibition under section 123A must set out the terms of the proposed prohibition.

A warning notice about a proposal to impose a suspension or restriction under section 123B must state the period for which the suspension or restriction is to have effect.

A decision notice about the imposition of a penalty F21under section 123 must state the amount of the penalty.

A decision notice about the publication of a statement F22under section 123 must set out the terms of the statement.

A decision notice about the imposition of a prohibition under section 123A must set out the terms of the prohibition.

A decision notice about the imposition of a suspension or restriction under section 123B must state the period for which the suspension or restriction is to have effect.

The FCA must consult the PRA before giving a warning notice under section 126(1)(c) or (e) or a decision notice under section 127(1)(c) or (e) if as a result of the prohibition in question an individual would be prohibited from holding an office or position involving responsibility for taking decisions about the management of a PRA-authorised investment firm.

The FCA must consult the PRA before varying or revoking a prohibition under section 123A(2)(a) or (3) if as a result of the proposed variation or revocation an individual would no longer be prohibited from holding an office or position involving responsibility for taking decisions about the management of a PRA-authorised investment firm.

In this section “PRA-authorised investment firm” means an investment firm which is a PRA-authorised person and carries on a regulated activity.

But the court may impose a permanent prohibition only where it is satisfied the person concerned has contravened Article 14 (prohibition of insider dealing and of unlawful disclosure of inside information) or Article 15 (prohibition of market manipulation) of the market abuse regulation.

Section 123B(4) to (6) and (8) apply to a suspension or restriction imposed by an order under subsection (2) as they do to a suspension or restriction imposed under section 123B.

In this section—

• “market abuse requirement” means a requirement imposed by the market abuse regulation or a supplementary EU regulation which is a relevant requirement for the purposes of section 380 or 382 (as the case may be);

• “permanent prohibition” means a permanent prohibition on an individual holding an office or position involving responsibility for taking decisions about the management of an investment firm;

• “suspension or restriction” means—

  1. a

     a suspension of any permission which a person has to carry on a regulated activity for such period as the court considers appropriate ; or

  2. b

     such limitations or other restrictions as the court considers appropriate in relation to the carrying on of a regulated activity by a person for such period as the court considers appropriate;

• “temporary prohibition” means a temporary prohibition on an individual—

  1. a

     holding an office or position involving responsibility for taking decisions about the management of an investment firm; or

  2. b

     acquiring or disposing of financial instruments, whether on his or her own account or the account of a third party and whether directly or indirectly.

The Treasury must obtain the consent of the Attorney General and the Secretary of State before issuing any guidance under this section.

Subsections (1) to (3) do not apply to Scotland.

In relation to Scotland, the Lord Advocate may from time to time, after consultation with the Treasury, issue written guidance for the purpose of helping the F3FCA to determine the action to be taken in cases F27mentioned in subsection (1).

A disclosure which satisfies the following three conditions is not to be taken to breach any restriction on the disclosure of information (however imposed).

The second condition is that the information or other matter disclosed came to the discloser in the course of his trade, profession, business or employment.

The third condition is that the disclosure is made F31... to a nominated officer as soon as is practicable after the information or other matter comes to the discloser.

A disclosure to a nominated officer is a disclosure which is made to a person nominated by the discloser's employer to receive disclosures under this section, and is made in the course of the discloser's employment and in accordance with the procedure established by the employer for the purpose.

For the purposes of this section, references to a person's employer include any body, association or organisation (including a voluntary organisation) in connection with whose activities the person exercises a function (whether or not for gain or reward) and references to employment must be construed accordingly.

Employers must have in place appropriate internal procedures for their employees to report contraventions of the market abuse regulation or any supplementary EU regulation.

In this section—

• “employee” and “employer” have the meaning given in section 230 of the Employment Rights Act 1996;

• “recognised body” has the meaning given in section 313;

• “regulated financial services” has the meaning given in section 1H.

In Article 3.1(26)(a) (definitions) of the market abuse regulation “partner considered to be equivalent to a spouse” includes a civil partner.

In this section “child” includes a stepchild.