Financial Services and Markets Act 2000

330 Consultation. U.K.

(1) Before giving a direction under section 328(1), the [F1 FCA] 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 [F1 FCA] within a specified time.

(3) Before giving the proposed direction, the [F1 FCA] must have regard to any representations made to it in accordance with subsection (2)(b).

(4) If the [F1 FCA] 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 [F1 FCA], significant—

(a) the [F1 FCA] 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 [F1 FCA] 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 [F1 FCA] 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 [F1 FCA] may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

(9) When the [F1 FCA] 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.

[F2 (10) Cost benefit analysis” means—

(a) an analysis of the costs together with an analysis of the benefits that will arise—

(i) if the proposed direction is given, or

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

(b) subject to subsection (10A), an estimate of those costs and of those benefits.

(10A) If, in the opinion of the FCA—

(a) the costs or benefits referred to in subsection (10) cannot reasonably be estimated, or

(b) it is not reasonably practicable to produce an estimate,

the cost benefit analysis need not estimate them, but must include a statement of the FCA's opinion and an explanation of it.]

(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.

Textual Amendments

F1 Word in s. 330 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 16 para. 4(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F2 S. 330(10)(10A) substituted for s. 330(10) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 16 para. 4(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.