Financial Services and Markets Bill - continued        House of Lords
PART VI, OFFICIAL LISTING - continued

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Penalties
Penalties for breach of listing rules.     87. - (1) If the competent authority considers that a person-
 
 
    (a) has contravened any provision of listing rules, or
 
    (b) has been knowingly concerned in a contravention of listing rules by a body of which he was a director at the material time,
  it may (in addition to taking any other steps which it has power to take under this Part) impose on him a penalty of such amount as it considers appropriate.
 
      (2) If, as a result of an order under Schedule 7, different functions conferred on the competent authority by this Part are exercisable by different persons, the power conferred by subsection (1) is exercisable by such person as may be determined in accordance with the provisions of the order.
 
      (3) A penalty under this section is payable to the competent authority.
 
      (4) The competent authority may not impose a penalty on a person under subsection (1)(b) after the end of the period of two years beginning with the first day on which it knew of the contravention.
 
      (5) For the purposes of subsection (4), the competent authority is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.
 
Warning notices.     88. - (1) If the competent authority proposes to impose a penalty on a person under section 87, it must give him a warning notice.
 
      (2) A warning notice must-
 
 
    (a) state the competent authority's reasons for its proposed action;
 
    (b) state the amount of the proposed penalty; and
 
    (c) indicate the right of appeal available to the person to whom the notice applies.
      (3) If the reasons given by the competent authority relate to matters which may, in its opinion, be materially prejudicial to another person in any business, office or employment, it must give that other person a copy of the notice given under subsection (1).
 
Statement of policy.     89. - (1) The competent authority must prepare and publish a statement ("its policy statement") of its policy with respect to-
 
 
    (a) the imposition of penalties under section 87; and
 
    (b) the amount of penalties under that section.
      (2) The competent authority may at any time alter or replace its policy statement.
 
      (3) If its policy statement is altered or replaced, the competent authority must issue the altered or replacement statement.
 
      (4) In exercising, or deciding whether to exercise, its power under section 87 in the case of any particular contravention, the competent authority must have regard to any policy statement published under this section and in force at the time when the contravention in question occurred.
 
      (5) The competent authority must publish a statement issued under this section in the way appearing to the competent authority to be best calculated to bring it to the attention of the public.
 
      (6) The Authority may charge a reasonable fee for providing a person with a copy of the statement.
 
      (7) The competent authority must, without delay, give the Treasury a copy of any policy statement which it publishes under this section.
 
Statements of policy: procedure.     90. - (1) Before issuing a statement under section 89, the competent authority must publish a draft of the proposed statement in the way appearing to the competent authority to be best calculated to bring it to the attention of the public.
 
      (2) The draft must be accompanied by notice that representations about the proposal may be made to the competent authority within a specified time.
 
      (3) Before issuing the proposed statement, the competent authority must have regard to any representations made to it in accordance with subsection (2).
 
      (4) If the competent authority issues the proposed statement it must publish an account, in general terms, of-
 
 
    (a) the representations made to it in accordance with subsection (2); and
 
    (b) its response to them.
      (5) If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the competent authority, significant, the competent authority must (in addition to complying with subsection (4)) publish details of the difference.
 
      (6) The competent authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
 
      (7) This section also applies to a proposal to alter or replace a statement.
 
Appeals against penalties.     91. The competent authority must make, and maintain, arrangements in accordance with which any person on whom a penalty is imposed under section 87 may appeal against the imposition of that penalty.
 
Notice for payment.     92. - (1) If the competent authority imposes a penalty on a person under section 87, it must give him a notice under this section (a "notice for payment").
 
      (2) A notice for payment must-
 
 
    (a) be in writing; and
 
    (b) require the person concerned to pay the penalty to the competent authority before the end of such period as may be specified in the notice.
      (3) The specified period may not be less than 30 days beginning with the date on which the notice for payment is given.
 
      (4) If all or any of the amount payable under a notice for payment is outstanding at the end of the specified period, the competent authority may recover the outstanding amount as a debt due to it.
 
 
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