Part 8AShort selling

Breach of short selling regulation etc

F1131L.Offences

(1)

If a relevant person (“A”) fails to comply with a requirement imposed on A under section 131E or 131F the F2FCA 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 F2FCA may not exercise both—

(a)

its powers under section 131G(2), and

(b)

its powers under subsection (1).

(7)

In this section—

“court” means—

(a)

the High Court;

(b)

in Scotland, the Court of Session;

“relevant person” means—

(a)

an authorised person,

(b)

a person who has been an authorised person,

(c)

a person who is for the purposes of section 165 connected with an authorised person or with a person within paragraph (b).