Financial Services and Markets Bill - continued        House of Lords
PART XX, PROVISION OF FINANCIAL SERVICES BY MEMBERS OF THE PROFESSIONS - continued

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Consultation.     321. - (1) Before giving a direction under section 319(1), the Authority must publish a draft of the proposed direction.
 
      (2) The draft must be accompanied by-
 
 
    (a) a cost benefit analysis; and
 
    (b) notice that representations about the proposed direction may be made to the Authority within a specified time.
      (3) Before giving the proposed direction, the Authority must have regard to any representations made to it in accordance with subsection (2)(b).
 
      (4) If the Authority gives the proposed direction it must publish an account, in general terms, of-
 
 
    (a) the representations made to it in accordance with subsection (2)(b); and
 
    (b) its response to them.
      (5) If the direction differs from the draft published under subsection (1) in a way which is, in the opinion of the Authority, significant-
 
 
    (a) the Authority must (in addition to complying with subsection (4)) publish details of the difference; and
 
    (b) those details must be accompanied by a cost benefit analysis.
      (6) Subsections (1) to (5) do not apply if the Authority considers that the delay involved in complying with them would prejudice the interests of consumers.
 
      (7) Neither subsection (2)(a) nor subsection (5)(b) applies if the Authority considers-
 
 
    (a) that, making the appropriate comparison, there will be no increase in costs; or
 
    (b) that, making that comparison, there will be an increase in costs but the increase will be of minimal significance.
      (8) The Authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
 
      (9) When the Authority is required to publish a document under this section it must do so in the way appearing to it to be best calculated to bring it to the attention of the public.
 
      (10) "Cost benefit analysis" means an estimate of the costs together with an analysis of the benefits that will arise-
 
 
    (a) if the proposed direction is given; or
 
    (b) if subsection (5)(b) applies, from the direction that has been given.
      (11) "The appropriate comparison" means-
 
 
    (a) in relation to subsection (2)(a), a comparison between the overall position if the direction is given and the overall position if it is not given;
 
    (b) in relation to subsection (5)(b), a comparison between the overall position after the giving of the direction and the overall position before it was given.
Procedure on making or varying orders under section 320.     322. - (1) If the Authority proposes to make an order under section 320, it must give the person concerned a warning notice.
 
      (2) The warning notice must set out the terms of the proposed order.
 
      (3) If the Authority decides to make an order under section 320, it must give the person concerned a decision notice.
 
      (4) The decision notice must-
 
 
    (a) name the person to whom the order applies;
 
    (b) set out the terms of the order; and
 
    (c) be given to the person named in the order.
      (5) Subsections (6) to (8) apply to an application for the variation or revocation of an order under section 320.
 
      (6) If the Authority decides to grant the application, it must give the applicant written notice of its decision.
 
      (7) If the Authority proposes to refuse the application, it must give the applicant a warning notice.
 
      (8) If the Authority decides to refuse the application, it must give the applicant a decision notice.
 
      (9) A person-
 
 
    (a) against whom the Authority have decided to make an order under section 320, or
 
    (b) whose application for the variation or revocation of such an order the Authority had decided to refuse,
  may refer the matter to the Tribunal.
 
      (10) The Authority may not make an order under section 320 unless-
 
 
    (a) the period within which the decision to make to the order may be referred to the Tribunal has expired and no such reference has been made; or
 
    (b) if such a reference has been made, the reference has been determined.
Rules in relation to persons to whom the general prohibition does not apply.     323. - (1) The Authority may make rules applicable to persons to whom, as a result of section 318(1), the general prohibition does not apply.
 
      (2) The power conferred by subsection (1) is to be exercised for the purpose of ensuring that clients are aware that such persons are not authorised persons.
 
      (3) A designated professional body must make rules-
 
 
    (a) applicable to members of the profession in relation to which it is established who are not authorised persons; and
 
    (b) governing the carrying on of regulated activities by those members.
      (4) Rules made in compliance with subsection (3) must be designed to secure that, in providing a particular professional service to a particular client, the member carries on only regulated activities which arise out of, or are complementary to, the provision by him of that service to that client.
 
      (5) Rules made by a designated professional body under subsection (3) require the approval of the Authority.
 
 
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