Part V Performance of Regulated Activities

F1Removal of directors and senior executives and appointment of temporary manager

71F.Temporary manager: instrument of appointment

(1)

The power in section 71C(1) is to be exercised by an instrument of appointment.

(2)

The instrument of appointment must—

(a)

specify the functions of the temporary manager,

(b)

specify the date on which the appointment of the temporary manager has effect,

(c)

specify the period for which the temporary manager is appointed, and

(d)

make provision for the resignation and replacement of the person who is appointed as the temporary manager.

(3)

The instrument of appointment may—

(a)

require the temporary manager to consult the appropriate regulator or other specified person before exercising specified functions,

(b)

specify particular matters on which the appropriate regulator or other specified person must be consulted, and

(c)

provide that the temporary manager is not to exercise specified functions without the consent of the appropriate regulator or other specified person.

(4)

The instrument of appointment may require the temporary manager to make reports to the appropriate regulator, at specified times or intervals, on—

(a)

the financial position of the relevant firm or the parent undertaking,

(b)

the actions taken by the temporary manager during the course of the temporary manager’s appointment,

(c)

any other specified matters.

(5)

In subsections (3) and (4), “specified” means specified in the instrument of appointment.

(6)

The instrument of appointment may provide for the payment of remuneration and allowances to a temporary manager.

(7)

Provision under subsection (6) may provide that the amounts are—

(a)

to be paid by the appropriate regulator, or

(b)

to be determined by the appropriate regulator and paid by the relevant firm or the parent undertaking.

(8)

If a temporary manager—

(a)

is appointed to replace the directors of the relevant firm or the parent undertaking, or

(b)

is appointed to work with the directors of the relevant firm or the parent undertaking and has the power to represent that firm or parent undertaking,

the appropriate regulator must publish the instrument of appointment on its website.