The Financial Services and Markets Act 2000 (Prospectus) Regulations 2019 No. 1043

PART 2 Amendments of the Financial Services and Markets Act 2000

Power of FCA to suspend or prohibit trading on a trading facility

20.  After section 87L insert—

“Power of FCA to suspend or prohibit trading on a trading facility

87LA.— (1) This section applies in relation to the trading of transferable securities on a trading facility.

(2) If—

(a) the FCA has reasonable grounds for suspecting that an applicable provision has been infringed, and

(b) the securities have not yet been traded on the trading facility in question,

the FCA may require the person who proposes to trade the securities to suspend taking any action to implement the proposal for a period not exceeding 10 working days.

(3) If—

(a) the FCA has reasonable grounds for suspecting that an applicable provision has been infringed, and

(b) the securities have been traded on the trading facility in question,

the FCA may require the operator of the facility to suspend trading in the securities for a period not exceeding 10 working days.

(4) If the FCA finds that an applicable provision has been infringed, it may require the operator of the trading facility in question to prohibit trading in the securities on that facility.

(5) In this section—

“applicable provision” means—

(a)

a provision of this Part,

(b)

a provision contained in prospectus rules, or

(c)

any provision of, or made in accordance with, the prospectus regulation;

“multilateral trading facility” has the meaning given by section 102B(6);

“organised trading facility” has the meaning given in Article 4.1.23 of the markets in financial instruments directive;

“trading facility” means a multilateral trading facility or an organised trading facility;”.