C8C9C10C11C13C18C16C21C23C22C27C29C30C28C31C32C37C33C38C40C41C43C39C44C48C49C50 Part XI Information Gathering and Investigations

Annotations:
Modifications etc. (not altering text)
C8

Pt. 11 modified (1.12.2001) by S.I. 2001/2657, arts. 1(1), 18(2) (which was revoked (8.10.2001) by S.I. 2001/3083, arts. 1(2), 23); S.I. 2001/3538, art. 2(1)

Pt. 11 modified (1.12.2001) by S.I. 2001/3083, arts. 1(2), 18(2)(4); S.I. 2001/3538, art. 2(1)

Pt. 11 extended (with modifications) (1.12.2001) by S.I. 2001/3646, arts. 1(1), 6-9

C10

Pt. 11 applied (with modifications) (11.2.2010) by The Cross-Border Payments in Euro Regulations 2010 (S.I. 2010/89), reg. 19, Sch. para. 2

C18

Pt. 11 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services Act 2012 (Consumer Credit) Order 2013 (S.I. 2013/1882), arts. 1(1), 3(5)

C21

Pt. 11 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 14

C27

Pt. 11 applied (with modifications) (18.9.2016) by The Payment Accounts Regulations 2015 (S.I. 2015/2038), reg. 1(2)(b), Sch. 7 para. 2

C29

Pt. 11 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 19(1) (with reg. 7)

C30

Pt. 11 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 33

C37

Pt. 11 modified (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 82(13)

C33

Pt. 11 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 3 (with Sch. 1 paras. 13, 14)

C38

Pt. 11 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 22 (as amended by S.I. 2020/628, regs. 1(4), 15(5))

C48

Pt. 11 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 10 (with reg. 52(3), Sch. 3)

C49

Pt. 11 applied (with modifications) (30.1.2024 for specified purposes) by The Public Offers and Admissions to Trading Regulations 2024 (S.I. 2024/105), regs. 2(2)(3), 44(4) (with regs. 48-50)

Appointment of investigators

C1C2C3C15C18C19C24C37C34C46167 Appointment of persons to carry out general investigations.

C171

If it appears to F22an investigating authority that there is good reason for doing so, the investigating authority may appoint one or more competent persons to conduct an investigation on its behalf into—

a

the nature, conduct or state of the business of F41a person to whom subsection (1A) applies or an appointed representative;

b

a particular aspect of that business; or

c

the ownership or control of F42a person to whom subsection (1A) applies.

F391A

This subsection applies to the following persons—

a

a recognised investment exchange;

b

an authorised person;

c

a relevant parent undertaking of an FCA investment firm;

d

a person who provides a service to an FCA investment firm or to a relevant parent undertaking of such a firm.

2

If a person appointed under subsection (1) thinks it necessary for the purposes of his investigation, he may also investigate the business of a person who is or has at any relevant time been—

a

a member of the group of which the person under investigation (“A”) is part; F25...

b

a partnership of which A is a member F26; or

F24c

where A is an insurance undertaking, reinsurance undertaking or third-country insurance undertaking, a person who provides services to A.

3

If a person appointed under subsection (1) decides to investigate the business of any person under subsection (2) he must give that person written notice of his decision.

F353A

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

F404A

The power conferred by this section may be exercised in relation to a person who has at any time been an authorised person or a person described in subsection (1A)(c) or (d) but only in relation to—

a

business carried on at any time when the person was an authorised person or a person described in subsection (1A)(c) or (d), or

b

the ownership or control of the person at such a time.

4B

The power conferred by this section may be exercised in relation to a person who has at any time been an appointed representative but only in relation to business carried on at any time when the person was an appointed representative.

5

“Business” includes any part of a business even if it does not consist of carrying on regulated activities.

F215A

“Investigating authority” means—

a

in relation to a recognised investment exchange, the Secretary of State or the FCA;

b

in relation to an authorised person or former authorised person, the FCA or the PRA;

c

in relation to an appointed representative or former appointed representative, the FCA or the PRA.

F43d

in relation to a person who is, or has at any time been, a person described in subsection (1A)(c) or (d) who is not an authorised person, the FCA.

F16

References in subsection (1) to a recognised investment exchange do not include references to an overseas investment exchange (as defined by section 313(1)).

I1C4C14C18C20C26C37C36C35C42C45168 Appointment of persons to carry out investigations in particular cases.

1

Subsection (3) applies if it appears to an investigating authority that there are circumstances suggesting that—

F8a

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

b

a person may be guilty of an offence under section F30122F, 177, F9191F, 346 or 398(1) F38....

2

Subsection (3) also applies if it appears to an investigating authority that there are circumstances suggesting that—

a

an offence under section 24(1) F34... F10or under Part 7 of the Financial Services Act 2012 or under Part V of the M1Criminal Justice Act 1993 may have been committed;

b

there may have been a breach of the general prohibition;

F11ba

an authorised person may have contravened section 20 in relation to a credit-related regulated activity;

c

there may have been a contravention of section 21 or 238; or

F31d

a person 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.

C53

The investigating authority may appoint one or more competent persons to conduct an investigation on its behalf.

C6C254

Subsection (5) applies if it appears to F12an investigating authority that there are circumstances suggesting that—

a

a person may have contravened section 20;

b

a person may be guilty of an offence under prescribed regulations relating to money laundering;

F2ba

a person may be guilty of an offence under Schedule 7 to the Counter-Terrorism Act 2008 (terrorist financing or money laundering);

C7C12c

F3a person may have contravened a rule made by the F13investigating authority;

F14ca

a recognised investment exchange may have contravened the recognition requirements (within the meaning of Part 18) F48or a rule made by the FCA under section 300H;

d

an individual may not be a fit and proper person to perform functions in relation to a regulated activity carried on by an authorised or exempt person;

e

an individual may have performed or agreed to perform a function in breach of a prohibition order;

f

F15a person may have failed to comply with section 56(6);

g

an authorised person may have failed to comply with section 59(1) or (2);

h

a person in relation to whom F16a regulator has given its approval under section 59 may not be a fit and proper person to perform the function to which that approval relates; F4. . .

F5ha

a person may have performed a controlled function without approval for the purposes of section 63A;

i

a person may be guilty of misconduct for the purposes of section 66 F6; F7...

F44ia

a person may have failed to comply with section 143R;

ib

an individual may have performed or agreed to perform a function in breach of a Part 9C prohibition order;

ic

a person may have failed to comply with section 143S(6);

F50id

a person may have contravened any provision made by or under the Securitisation Regulations 2024;

j

a person may have contravened any provision made by or under this Act for the purpose of implementing the markets in financial instruments directive F17...

F23ja

a person may have contravened—

i

any provision made by or under this Act for the purpose of implementing the alternative investment fund managers directive; F27...

C47ii

any provision made by the Alternative Investment Fund Managers Regulations 2013; F28...

F29iii

any provision made by or under this Act for the purpose of implementing the UCITS Directive; or

iv

any provision made by the Undertakings for Collective Investment in Transferable Securities Regulations 2011; F32....

F33jb

a person may have contravened—

i

any provision made by or under this Act for the purposes of the market abuse regulation; or

ii

a requirement imposed on that person under sections 122A to 122C, 122G to 122I, 123A or 123B;

jc

a person may have been knowingly concerned in the contravention of—

i

a provision of the market abuse regulation other than Article 14 (prohibition of insider dealing) or 15 (prohibition of market manipulation) of that regulation; or

ii

F36any F49assimilated direct legislation originally made under the market abuse regulation or any subordinate legislation (within the meaning of the Interpretation Act 1978) made on or after IP completion day under the market abuse regulation; or

F18k

a person may have contravened a F37qualifying provision that is specified, or of a description specified, for the purposes of this subsection by the Treasury by order.

F454A

Subsection (5) applies if it appears to the investigating authority that there are circumstances suggesting that—

a

an individual may not be a fit and proper person to perform functions in relation to an activity carried on by a relevant recognised body;

b

an individual may have performed, or agreed to perform, a function in breach of a Part 18 prohibition order;

c

a person may have failed to comply with section 309F(1);

d

a relevant recognised body may have failed to comply with section 309G(1);

e

a person in relation to whom the FCA has given approval under section 309G may not be a fit and proper person to perform the function to which that approval relates;

f

a person may have performed a designated senior management function without approval under section 309G (see section 309U(3));

g

a person may be guilty of misconduct for the purposes of section 309Z2.

C5C255

The F19investigating authority may appoint one or more competent persons to conduct an investigation on its behalf.

C25F206

Investigating authority” means—

a

in subsections (1) to (3), the FCA, the PRA or the Secretary of State;

b

in subsections (4) and (5), the FCA or the PRA.

F47c

in subsection (4A), the FCA.

F467

“Relevant recognised body” has the same meaning as in Chapter 2A of Part 18 (see section 309A).