Part XVII Collective Investment Schemes

Chapter V Recognised Overseas Schemes

Schemes constituted in other EEA States

268 Procedure on giving directions under section 267 and varying them on F9FCA's own initiative.

1

A direction under section 267 takes effect—

a

immediately, if the notice given under subsection (3)(a) states that that is the case;

b

on such date as may be specified in the notice; or

c

if no date is specified in the notice, when the matter to which it relates is no longer open to review.

2

A direction may be expressed to take effect immediately (or on a specified date) only if the F2FCA, having regard to its reasons for exercising its power under section 267, considers that it is necessary for the direction to take effect immediately (or on that date).

3

If F11the FCA proposes to give a direction under section 267, or gives such a direction with immediate effect, it must—

a

give the operator of the scheme concerned written notice; and

b

inform the competent authorities in the scheme’s home State of its proposal or (as the case may be) of the direction.

4

The notice must—

a

give details of the direction;

b

inform the operator of when the direction takes effect;

c

state the F1FCA's reasons for giving the direction and for its determination as to when the direction takes effect;

d

inform the operator that he may make representations to the F5FCA within such period as may be specified in it (whether or not he has referred the matter to the Tribunal); and

e

inform him of his right to refer the matter to the Tribunal.

5

The F3FCA may extend the period allowed under the notice for making representations.

6

Subsection (7) applies if, having considered any representations made by the operator, the F6FCA decides—

a

to give the direction in the way proposed, or

b

if it has been given, not to revoke the direction.

7

F8The FCA must—

a

give the operator of the scheme concerned written notice; and

b

inform the competent authorities in the scheme’s home State of the direction.

8

Subsection (9) applies if, having considered any representations made by a person to whom the notice was given, the F4FCA decides—

a

not to give the direction in the way proposed,

b

to give the direction in a way other than that proposed, or

c

to revoke a direction which has effect.

9

F10The FCA must—

a

give the operator of the scheme concerned written notice; and

b

inform the competent authorities in the scheme’s home State of its decision.

10

A notice given under subsection (7)(a) must inform the operator of his right to refer the matter to the Tribunal.

11

A notice under subsection (9)(a) given as a result of subsection (8)(b) must comply with subsection (4).

12

If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.

13

This section applies to the variation of a direction on the F7FCA's own initiative as it applies to the giving of a direction.

14

For the purposes of subsection (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).