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

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Rules and information gathering: schemes recognised under sections 262 and 264
Rules as to scheme particulars.     270. The Authority may make rules imposing duties or liabilities on the operator of a scheme recognised under section 262 or 264 for purposes corresponding to those for which rules may be made under section 241 in relation to authorised unit trust schemes.
 
 
Revocation of recognition under sections 262 and 264
Revocation of recognition.     271. The Authority may direct that a scheme is to cease to be recognised by virtue of section 262 or revoke an order under section 264 if it appears to the Authority-
 
 
    (a) that the operator, trustee or depositary of the scheme has contravened a requirement imposed on him by or under this Act;
 
    (b) that the operator, trustee or depositary of the scheme has, in purported compliance with any such requirement, knowingly or recklessly given the Authority information which is false or misleading in a material particular;
 
    (c) in the case of an order under section 264, that one or more of the requirements for the making of the order are no longer satisfied; or
 
    (d) that none of paragraphs (a) to (c) applies, but it is undesirable in the interests of the participants or potential participants that the scheme should continue to be recognised.
Procedure.     272. - (1) If the Authority proposes to give a direction under section 271 or to make an order under that section revoking a recognition order, it must give a warning notice to the operator and (if any) the trustee or depositary of the scheme.
 
      (2) If the Authority decides to give a direction or make an order under that section-
 
 
    (a) it must without delay give a decision notice to the operator and (if any) the trustee or depositary of the scheme; and
 
    (b) the operator or the trustee or depositary may refer the matter to the Tribunal.
      (3) If, having given a warning notice, the Authority decides not to give a direction or make an order under section 271, it must give a decision notice to the operator and (if any) the trustee or depositary of the scheme.
 
 
Powers of intervention: schemes recognised under sections 262 and 264
Directions.     273. - (1) In this section a "relevant recognised scheme" means a scheme recognised under section 262 or 264.
 
      (2) If it appears to the Authority that-
 
 
    (a) the operator, trustee or depositary of a relevant recognised scheme has contravened, or is likely to contravene, a requirement imposed on him by or under this Act,
 
    (b) the operator, trustee or depositary of such a scheme has, in purported compliance with any such requirement, knowingly or recklessly given the Authority information which is false or misleading in a material particular,
 
    (c) one or more of the requirements for the recognition of a scheme under section 264 are no longer satisfied, or
 
    (d) none of paragraphs (a) to (c) applies, but the exercise of the power conferred by this section is desirable in order to protect the interests of participants or potential participants in a relevant recognised scheme who are in the United Kingdom,
  it may direct that the scheme is not to be a recognised scheme for a specified period or until the occurrence of a specified event or until specified conditions are complied with.
 
 
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Prepared 11 February 2000