Financial Services and Markets Bill - continued        House of Lords
PART XVII, COLLECTIVE INVESTMENT SCHEMES - continued
Powers of intervention - continued

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Applications to the court.     251. - (1) If the Authority could give a direction under section 250, it may also apply to the court for an order-
 
 
    (a) removing the manager or the trustee, or both the manager and the trustee, of the scheme; and
 
    (b) replacing the person or persons removed with a suitable person or persons nominated by the Authority.
      (2) The Authority may nominate a person for the purposes of subsection (1)(b) only if it is satisfied that, if the order was made, the requirements of section 236(3) to (6) would be complied with.
 
      (3) If it appears to the Authority that there is no person it can nominate for the purposes of subsection (1)(b), it may apply to the court for an order-
 
 
    (a) removing the manager or the trustee, or both the manager and the trustee, of the scheme; and
 
    (b) appointing an authorised person to wind up the scheme.
      (4) On an application under this section the court may make such order as it thinks fit.
 
      (5) The court may, on the application of the Authority, rescind any such order as is mentioned in subsection (3) and substitute such an order as is mentioned in subsection (1).
 
      (6) The Authority must give written notice of the making of an application under this section to the manager and trustee of the scheme concerned.
 
      (7) The jurisdiction conferred by this section may be exercised by-
 
 
    (a) the High Court;
 
    (b) in Scotland, the Court of Session.
Procedure: giving directions and varying them otherwise than as requested.     252. - (1) If the Authority proposes to-
 
 
    (a) give a direction under section 250,
 
    (b) vary such a direction on its own initiative, or
 
    (c) vary such a direction on the application of the manager or trustee of the scheme concerned, but otherwise than in accordance with that application,
  it must (except where section 255 applies) give separate warning notices to the manager and trustee, setting out the terms of the direction or variation.
 
      (2) If the Authority decides-
 
 
    (a) to give a direction under section 250, or
 
    (b) to vary a direction as mentioned in subsection (1)(b) or (c),
  it must without delay give separate decision notices to the manager and trustee of the scheme, setting out the terms of the direction or variation.
 
      (3) If the Authority gives a decision notice, it is to be regarded as giving the direction or making the variation to which the notice relates (with effect from the date specified in the notice), and the notice has effect accordingly.
 
      (4) If the Authority decides to-
 
 
    (a) give a direction under section 250, or
 
    (b) vary a direction as mentioned in subsection (1)(b) or (c),
  the trustee or manager of the scheme may refer the matter to the Tribunal.
 
      (5) Neither the manager nor the trustee of the scheme is to be treated as a third party for the purposes of section 375(2) or 376(2).
 
      (6) If, having given warning notices, the Authority decides not to give a direction, it must give each of them a decision notice.
 
Procedure: refusal to revoke or vary direction.     253. - (1) If on an application under section 250(6) for a direction to be revoked or varied the Authority proposes to refuse to revoke or vary the direction, it must give the applicant a warning notice.
 
      (2) Section 375(2) does not apply in relation to the reasons given in the warning notice.
 
      (3) If the Authority refuses to revoke or vary the direction-
 
 
    (a) it must give the applicant a decision notice; and
 
    (b) the applicant may refer the matter to the Tribunal.
      (4) Section 376(2) does not apply in relation to the reasons given in the decision notice.
 
Procedure: revocation of direction and grant of request for variation.     254. - (1) If the Authority decides on its own initiative to revoke a direction under section 250 it must give separate written notices of its decision to the manager and trustee of the scheme.
 
      (2) If on an application under section 250(6) for a direction to be revoked or varied the Authority decides to revoke the direction or vary it in accordance with the application, it must give the applicant written notice of its decision.
 
      (3) A notice under this section must specify the date on which the decision takes effect.
 
      (4) The Authority may publish such information about the revocation or variation, in such way, as it considers appropriate.
 
Procedure in cases of urgency.     255. - (1) If the Authority considers that it should-
 
 
    (a) give a direction under section 250,
 
    (b) vary such a direction on its own initiative, or
 
    (c) vary such a direction on the application of the manager or trustee of the scheme concerned, but otherwise than in accordance with that application,
  as a matter of urgency, it may do so by giving the manager and trustee of the scheme concerned a decision notice.
 
      (2) The decision notice must-
 
 
    (a) set out the terms of the direction or variation;
 
    (b) give the Authority's reasons for the exercise of its power under subsection (1); and
 
    (c) specify a reasonable period (which may not be less than 28 days) within which the person to whom it is given may make representations to the Authority.
      (3) The Authority must decide, within a reasonable period after the period for making representations has ended, whether to-
 
 
    (a) confirm or rescind its original decision; or
 
    (b) give a different direction under section 250 (if the decision notice was given under subsection (1)(a)) or make a different variation (if it was given under subsection (1)(b) or (c)).
      (4) If the Authority decides to confirm or rescind its original decision, it must give written notice of its decision to the manager and trustee of the scheme.
 
      (5) If the Authority decides to give a different direction or make a different variation it must give the manager and trustee a decision notice.
 
      (6) A decision notice under subsection (5) must set out the terms of the new direction or variation.
 
      (7) If the Authority gives a decision notice under subsection (1) or (5) it is to be regarded-
 
 
    (a) as giving the direction or making the variation to which the notice relates, and
 
    (b) in the case of a notice under subsection (5) relating to a new direction, as revoking the existing direction under section 250,
  with effect from the date specified in the notice, and the notice has effect accordingly.
 
      (8) Section 376(2) does not apply in relation to the reasons given in a decision notice under subsection (1) or (5).
 
      (9) A person to whom a decision notice is given under subsection (1) or (5) may refer the matter to the Tribunal.
 
      (10) If-
 
 
    (a) a direction is given or varied as provided by subsection (1),
 
    (b) a reference is made to the Tribunal under subsection (9), and
 
    (c) no decision under subsection (3) is made before the reference is dealt with,
  the Tribunal must determine whether the decision to give the direction or make the variation was (at the time it was made) reasonable in all the circumstances.
 
      (11) In determining that question, the Tribunal must have regard to-
 
 
    (a) the risk, had the direction not been given or the variation made, to persons for whose protection it was given or made; and
 
    (b) the likely effect of the direction or variation on the person making the reference.
 
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