Financial Services and Markets Bill - continued        House of Lords
PART XVII, COLLECTIVE INVESTMENT SCHEMES - continued
Powers of intervention: schemes recognised under sections 262 and 264 - continued

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Procedure.     274. - (1) If the Authority proposes to give a direction under section 273 it must (unless section 275 applies) give a warning notice to the operator and (if any) the trustee or depositary of the scheme.
 
      (2) The warning notice must set out the terms of the direction.
 
      (3) Section 375(2) does not apply in relation to the reasons given in the warning notice.
 
      (4) If the Authority decides to give a direction under section 273 it must give a decision notice to the operator and (if any) the trustee or depositary of the scheme.
 
      (5) The decision notice must set out the terms of the direction.
 
      (6) If the Authority gives a decision notice it is to be regarded as giving the direction to which the notice relates (with effect from the date specified in the notice), and the notice has effect accordingly.
 
      (7) Section 376(2) does not apply in relation to the reasons given in the decision notice.
 
      (8) If the Authority decides to give a direction under section 273, the operator, trustee or depositary of the scheme may refer the matter to the Tribunal.
 
Procedure in cases of urgency.     275. - (1) If the Authority considers that it should give a direction under section 273 as a matter of urgency, it may do so by giving a decision notice to the operator and (if any) the trustee or depositary of the scheme concerned.
 
      (2) The decision notice must-
 
 
    (a) set out the terms of the direction;
 
    (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 273.
      (4) If the Authority decides to confirm or rescind its original decision, it must give written notice of its decision to the operator and (if any) the trustee or depositary of the scheme concerned.
 
      (5) If the Authority decides to give a different direction under section 273 it must give a decision notice to the operator and (if any) the trustee or depositary.
 
      (6) A decision notice under subsection (5) must set out the terms of the new direction.
 
      (7) If the Authority gives a decision notice under subsection (1) or (5) it is to be regarded-
 
 
    (a) as giving the direction to which the notice relates, and
 
    (b) in the case of a notice under subsection (5), as revoking the existing direction under section 273,
  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 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 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, to persons for whose protection it was given; and
 
    (b) the likely effect of the direction on the person making the reference.
 
Facilities and information in UK
Facilities and information in UK.     276. - (1) The Authority may make rules requiring operators of recognised schemes to maintain in the United Kingdom, or in such part or parts of it as may be specified, such facilities as the Authority thinks desirable in the interests of participants and as are specified in rules.
 
      (2) The Authority may by notice in writing require the operator of any recognised scheme to include such explanatory information as is specified in the notice in any communication of his which-
 
 
    (a) is a communication of an invitation or inducement of a kind mentioned in section 19(1); and
 
    (b) names the scheme.
      (3) In the case of a communication originating outside the United Kingdom, subsection (2) only applies if the communication is capable of having an effect in the United Kingdom.
 
 
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