PART 3DISCIPLINARY POWERS

Public statements in respect of pre-commencement contraventions of the Financial Services Act6

1

Paragraph (3) applies if—

a

the Authority considers that an authorised person contravened a pre-commencement provision that related to him before commencement; and

b

the Authority has not given a written notice under section 60(2) of the Financial Services Act in respect of that contravention.

2

Paragraph (3) also applies if—

a

the Authority considers that an authorised person contravened a pre-commencement friendly societies provision that related to him before commencement;

b

that person was, immediately before commencement, a regulated friendly society other than a member society; and

c

the Authority has not given a written notice under paragraph 21 of Schedule 11 to the Financial Services Act28 in respect of that contravention.

3

The Authority may exercise the power conferred by section 205 (public censure) as if the contravention of the pre-commencement provision or pre-commencement friendly societies provision were a contravention of a requirement imposed by or under the Act.

4

“Pre-commencement provision”, in relation to an authorised person (“A”), means—

a

if immediately before commencement A was a regulated person—

i

any rule or regulation made under Chapter V of Part I of the Financial Services Act;

ii

section 56 or 59 of that Act; or

iii

any condition imposed under section 50 of that Act;

b

if immediately before commencement A was an authorised person (within the meaning of that Act), any prohibition or requirement imposed under Chapter VI of Part I of that Act (powers of intervention);

c

if immediately before commencement A was a manager or trustee (within the meaning of that Act) of an authorised unit trust scheme (within the meaning of that Act), any direction given to an authorised unit trust scheme under section 91 of that Act (directions to authorised unit trust schemes); or

d

any direction under regulation 18 of the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996 to which A was subject.

5

“Pre-commencement friendly societies provision” means—

a

any rule or regulation made under Schedule 11 to the Financial Services Act;

b

section 56 or 59 of that Act;

c

any condition imposed under section 50 of that Act as it applied by virtue of paragraph 14(3) of Schedule 11 to that Act;

d

any prohibition or requirement imposed under Chapter VI of Part I of that Act as it applied by virtue of paragraph 23 of that Schedule; or

e

any requirement imposed by paragraph 24 of that Schedule.

6

For the purposes of paragraph (2)(b), “regulated friendly society” and “member society” have the meanings given by the Financial Services Act.

7

For the purposes of paragraph (4)(a), “regulated person” means any of—

a

an authorised person under the Financial Services Act by virtue of—

i

section 22 (authorised insurers)29;

ii

section 24 (operators and trustees of recognised schemes);

iii

section 25 (authorisation by the Authority)30; or

iv

section 31 (authorisation in other member State)31;

b

a European institution carrying on home-regulated investment business in the United Kingdom, within the meaning of the 2BCD Regulations; or

c

a European investment firm carrying on home-regulated investment business in the United Kingdom, within the meaning of the ISD Regulations.