Part XX Provision of Financial Services by Members of the Professions

330 Consultation.

(1)

Before giving a direction under section 328(1), the Authority must publish a draft of the proposed direction.

(2)

The draft must be accompanied by—

(a)

a cost benefit analysis; and

(b)

notice that representations about the proposed direction may be made to the Authority within a specified time.

(3)

Before giving the proposed direction, the Authority must have regard to any representations made to it in accordance with subsection (2)(b).

(4)

If the Authority gives the proposed direction it must publish an account, in general terms, of—

(a)

the representations made to it in accordance with subsection (2)(b); and

(b)

its response to them.

(5)

If the direction differs from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant—

(a)

the Authority must (in addition to complying with subsection (4)) publish details of the difference; and

(b)

those details must be accompanied by a cost benefit analysis.

(6)

Subsections (1) to (5) do not apply if the Authority considers that the delay involved in complying with them would prejudice the interests of consumers.

(7)

Neither subsection (2)(a) nor subsection (5)(b) applies if the Authority considers—

(a)

that, making the appropriate comparison, there will be no increase in costs; or

(b)

that, making that comparison, there will be an increase in costs but the increase will be of minimal significance.

(8)

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

(9)

When the Authority is required to publish a document under this section it must do so in the way appearing to it to be best calculated to bring it to the attention of the public.

(10)

“Cost benefit analysis” means an estimate of the costs together with an analysis of the benefits that will arise—

(a)

if the proposed direction is given; or

(b)

if subsection (5)(b) applies, from the direction that has been given.

(11)

“The appropriate comparison” means—

(a)

in relation to subsection (2)(a), a comparison between the overall position if the direction is given and the overall position if it is not given;

(b)

in relation to subsection (5)(b), a comparison between the overall position after the giving of the direction and the overall position before it was given.