Financial Services and Markets Bill - continued        House of Lords

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  PART XXV
  INJUNCTIONS AND RESTITUTION
 
Injunctions
Injunctions.     367. - (1) If, on the application of the Authority or the Secretary of State, the court is satisfied-
 
 
    (a) that there is a reasonable likelihood that any person will contravene a relevant requirement, or
 
    (b) that any person has contravened a relevant requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,
  the court may make an order restraining (or in Scotland an interdict prohibiting) the contravention.
 
      (2) If on the application of the Authority or the Secretary of State the court is satisfied-
 
 
    (a) that any person has contravened a relevant requirement, and
 
    (b) that there are steps which could be taken for remedying the contravention,
  the court may make an order requiring that person, and any other person who appears to have been knowingly concerned in the contravention, to take such steps as the court may direct to remedy it.
 
      (3) If, on the application of the Authority or the Secretary of State, the court is satisfied that any person may have-
 
 
    (a) contravened a relevant requirement, or
 
    (b) been knowingly concerned in the contravention of such a requirement,
  it may make an order restraining (or in Scotland an interdict prohibiting) him from disposing of, or otherwise dealing with, any assets of his which it is satisfied he is reasonably likely to dispose of or otherwise deal with.
 
      (4) The jurisdiction conferred by this section is exercisable by the High Court and the Court of Session.
 
      (5) In subsection (2), references to remedying a contravention include references to mitigating its effect.
 
      (6) "Relevant requirement"-
 
 
    (a) in relation to an application by the Authority, means a requirement-
 
      (i) which is imposed by or under this Act; or
 
      (ii) which is imposed by or under any other Act and whose contravention constitutes an offence which the Authority has power to prosecute under this Act;
 
    (b) in relation to an application by the Secretary of State, means a requirement which is imposed by or under this Act and whose contravention constitutes an offence which the Secretary of State has power to prosecute under this Act.
Injunctions in cases of market abuse.     368. - (1) If, on the application of the Authority, the court is satisfied-
 
 
    (a) that there is a reasonable likelihood that any person will engage in market abuse, or
 
    (b) that any person is or has engaged in market abuse and that there is a reasonable likelihood that the market abuse will continue or be repeated,
  the court may make an order restraining (or in Scotland an interdict prohibiting) the market abuse.
 
      (2) If on the application of the Authority the court is satisfied-
 
 
    (a) that any person is or has engaged in market abuse, and
 
    (b) that there are steps which could be taken for remedying the market abuse,
  the court may make an order requiring him to take such steps as the court may direct to remedy it.
 
      (3) Subsection (4) applies if, on the application of the Authority, the court is satisfied that any person-
 
 
    (a) may be engaged in market abuse; or
 
    (b) may have been engaged in market abuse.
      (4) The court make an order restraining (or in Scotland an interdict prohibiting) the person concerned from disposing of, or otherwise dealing with, any assets of his which it is satisfied that he is reasonably likely to dispose of, or otherwise deal with.
 
      (5) The jurisdiction conferred by this section is exercisable by the High Court and the Court of Session.
 
      (6) In subsection (2), references to remedying any market abuse include references to mitigating its effect.
 
 
Restitution orders
Restitution orders.     369. - (1) The court may, on the application of the Authority or the Secretary of State, make an order under subsection (2) if it is satisfied that a person has contravened a relevant requirement, or been knowingly concerned in the contravention of such a requirement, and-
 
 
    (a) that profits have accrued to him as a result of the contravention; or
 
    (b) that one or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.
      (2) The court may order the person concerned to pay to the Authority such sum as appears to the court to be just having regard-
 
 
    (a) in a case within paragraph (a) of subsection (1), to the profits appearing to the court to have accrued;
 
    (b) in a case within paragraph (b) of that subsection, to the extent of the loss or other adverse effect;
 
    (c) in a case within both of those paragraphs, to the profits appearing to the court to have accrued and to the extent of the loss or other adverse effect.
      (3) Any amount paid to the Authority in pursuance of an order under subsection (2) must be paid by it to such qualifying person or distributed by it among such qualifying persons as the court may direct.
 
      (4) On an application under subsection (1) the court may require the person concerned to supply it with such accounts or other information as it may require for any one or more of the following purposes-
 
 
    (a) establishing whether any and, if so, what profits have accrued to him as mentioned in paragraph (a) of that subsection;
 
    (b) establishing whether any person or persons have suffered any loss or adverse effect as mentioned in paragraph (b) of that subsection and, if so, the extent of that loss or adverse effect; and
 
    (c) determining how any amounts are to be paid or distributed under subsection (3).
      (5) The court may require any accounts or other information supplied under subsection (4) to be verified in such manner as it may direct.
 
      (6) The jurisdiction conferred by this section is exercisable by the High Court and the Court of Session.
 
      (7) Nothing in this section affects the right of any person other than the Authority or the Secretary of State to bring proceedings in respect of the matters to which this section applies.
 
      (8) "Qualifying person" means a person appearing to the court to be someone-
 
 
    (a) to whom the profits mentioned in subsection (1)(a) are attributable; or
 
    (b) who has suffered the loss or adverse effect mentioned in subsection (1)(b).
      (9) "Relevant requirement"-
 
 
    (a) in relation to an application by the Authority, means a requirement-
 
      (i) which is imposed by or under this Act; or
 
      (ii) which is imposed by or under any other Act and whose contravention constitutes an offence which the Authority has power to prosecute under this Act;
 
    (b) in relation to an application by the Secretary of State, means a requirement which is imposed by or under this Act and whose contravention constitutes an offence which the Secretary of State has power to prosecute under this Act.
Restitution orders in cases of market abuse.     370. - (1) The court may, on the application of the Authority, make an order under subsection (2) if it is satisfied that a person has engaged in market abuse and-
 
 
    (a) that profits have accrued to him as a result; or
 
    (b) that one or more persons have suffered loss or been otherwise adversely affected as a result.
      (2) The court may order the person concerned to pay to the Authority such sum as appears to the court to be just having regard-
 
 
    (a) in a case within paragraph (a) of subsection (1), to the profits appearing to the court to have accrued;
 
    (b) in a case within paragraph (b) of that subsection, to the extent of the loss or other adverse effect;
 
    (c) in a case within both of those paragraphs, to the profits appearing to the court to have accrued and to the extent of the loss or other adverse effect.
      (3) Any amount paid to the Authority in pursuance of an order under subsection (2) must be paid by it to such qualifying person or distributed by it among such qualifying persons as the court may direct.
 
      (4) On an application under subsection (1) the court may require the person concerned to supply it with such accounts or other information as it may require for any one or more of the following purposes-
 
 
    (a) establishing whether any and, if so, what profits have accrued to him as mentioned in paragraph (a) of that subsection;
 
    (b) establishing whether any person or persons have suffered any loss or adverse effect as mentioned in paragraph (b) of that subsection and, if so, the extent of that loss or adverse effect; and
 
    (c) determining how any amounts are to be paid or distributed under subsection (3).
      (5) The court may require any accounts or other information supplied under subsection (4) to be verified in such manner as it may direct.
 
      (6) The jurisdiction conferred by this section is exercisable by the High Court and the Court of Session.
 
      (7) Nothing in this section affects the right of any person other than the Authority to bring proceedings in respect of the matters to which this section applies.
 
      (8) "Qualifying person" means a person appearing to the court to be someone-
 
 
    (a) to whom the profits mentioned in paragraph (a) of subsection (1) are attributable; or
 
    (b) who has suffered the loss or adverse effect mentioned in paragraph (b) of that subsection.
 
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Prepared 11 February 2000