Part XVIII Recognised Investment Exchanges and Clearing Houses

Chapter I Exemption

Supervision

296F1Appropriate regulator's power to give directions.

(1)

This section applies if it appears to F2the appropriate regulator that a recognised body—

(a)

has failed, or is likely to fail, to satisfy the recognition requirements; or

(b)

has failed to comply with any other obligation imposed on it by or under this Act.

F3(1A)

This section also applies F4if it appears to the appropriate regulator that a recognised body has failed, or is likely to fail, to comply with any obligation imposed on it by any F5directly applicable EU regulation specified (or of a description specified) in an order made by the Treasury.

(2)

F6The regulator concerned may direct the body to take specified steps for the purpose of securing the body’s compliance with—

(a)

the recognition requirements; or

(b)

any obligation of the kind in question.

F7(2A)

In the case of F8a recognised body other than an overseas investment exchange or overseas clearing house, those steps may include—

(a)

the granting to F9the regulator concerned of access to the premises of F10the body for the purpose of inspecting—

(i)

those premises; or

(ii)

any documents on the premises which appear to F9the regulator concerned to be relevant for the purpose mentioned in subsection (2);

(b)

the suspension of the carrying on of any regulated activity by F11the body for the period specified in the direction.

(3)

A direction under this section is enforceable, on the application of F12the regulator concerned, by an injunction or, in Scotland, by an order for specific performance under section 45 of the M1Court of Session Act 1988.

(4)

The fact that a rule made by a recognised body has been altered in response to a direction given by F13an appropriate regulator does not prevent it from being subsequently altered or revoked by the recognised body.