Financial Services and Markets Bill - continued        House of Lords
PART XVIII, RECOGNISED INVESTMENT EXCHANGES AND CLEARING HOUSES - continued
Supervision - continued

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Variation of recognition order in relation to recognised nominee.     293. - (1) A recognised investment exchange or recognised clearing house may apply to the Authority for a variation of its recognition order by adding to it, or removing from it, a recognised nominee or by altering either the identity of the recognised nominee or the arrangements in respect of which recognition was granted.
 
      (2) The Authority may-
 
 
    (a) direct the manner in which applications under subsection (1) are to be made; and
 
    (b) if such an application is made, require the applicant to provide it with such information as it reasonably considers necessary to enable it to determine the application.
      (3) The Authority may, on an application under subsection (1), vary the order if it considers that the recognition requirements will continue to be satisfied if the order is varied.
 
Revoking recognition.     294. - (1) A recognition order may be revoked by an order made by the Authority at the request, or with the consent, of the recognised body concerned.
 
      (2) If it appears to the Authority that a recognised body-
 
 
    (a) is failing, or has failed, to satisfy the recognition requirements, or
 
    (b) is failing, or has failed, to comply with any other obligation imposed on it by or under this Act,

it may make an order revoking the recognition order for that body even though the body does not wish the order to be made.

      (3) An order under this section ("a revocation order") must specify the date on which it is to take effect.
 
      (4) In the case of a revocation order made under subsection (2), the specified date must not be earlier than the end of the period of three months beginning with the day on which the order is made.
 
      (5) A revocation order may contain such transitional provisions as the Authority thinks necessary or expedient.
 
Directions and revocation: procedure.     295. - (1) Before giving a direction under section 292, or making a revocation order under section 294(2), the Authority must-
 
 
    (a) give written notice of its intention to do so to the recognised body concerned;
 
    (b) take such steps as it considers reasonably practicable to bring the notice to the attention of members (if any) of that body; and
 
    (c) publish the notice in such manner as it thinks appropriate for bringing it to the attention of other persons who are, in its opinion, likely to be affected.
      (2) A notice under subsection (1) must-
 
 
    (a) state why the Authority intends to give the direction or make the order; and
 
    (b) draw attention to the right to make representations conferred by subsection (3) or (4)(b).
      (3) Before the end of the period for making representations-
 
 
    (a) the recognised body,
 
    (b) any member of that body, and
 
    (c) any other person who is likely to be affected by the proposed direction or revocation order,

may make representations to the Authority.

      (4) If the Authority intends to give a direction under section 292 to a recognised nominee-
 
 
    (a) the notice required by subsection (1)(a) must be given to the nominee as well to the recognised body; and
 
    (b) the nominee may make representations to the Authority before the end of the period for making representations.
      (5) The period for making representations is-
 
 
    (a) two months beginning-
 
      (i) with the date on which the notice is served on the recognised body; or
 
      (ii) if later, with the date on which the notice is published; or
 
    (b) such longer period as the Authority may allow in the particular case.
      (6) In deciding whether to-
 
 
    (a) give a direction, or
 
    (b) make a revocation order,

the Authority must have regard to any representations made in accordance with subsection (3) or (4)(b).

      (7) When the Authority has decided whether to give a direction under section 292 or to make the proposed revocation order, it must-
 
 
    (a) give the recognised body written notice of its decision to make, or not to make, the order; and
 
    (b) if it has decided to give a direction or make an order, take such steps as it considers reasonably practicable for bringing its decision to the attention of members of the body or of other persons who are, in the Authority's opinion, likely to be affected.
      (8) If notice under subsection (1)(a) was given to a recognised nominee, notice under subsection (7)(a) must also be given to him.
 
      (9) If the Authority considers it essential to do so, it may give a direction under section 292-
 
 
    (a) without following the procedure set out in this section; or
 
    (b) if the Authority has begun to follow that procedure, regardless of whether the period for making representations has expired.
      (10) If the Authority has, in relation to a particular matter, followed the procedure set out in subsections (1) to (6), it need not follow it again if, in relation to that matter, it decides to take action other than that specified in its notice under subsection (1).
 
      (11) If the Treasury have under section 300 directed the Authority to-
 
 
    (a) give a direction under section 292, or
 
    (b) make a revocation order under section 294(2),

the Authority need not follow the procedure set out in subsections (1) to (6).

Complaints about recognised bodies.     296. - (1) The Authority must make arrangements for the investigation of any relevant complaint about a recognised body.
 
      (2) "Relevant complaint" means a complaint which the Authority considers is relevant to the question of whether the body concerned should remain a recognised body.
 
 
Other matters
Supervision of certain contracts.     297. - (1) The Secretary of State and the Treasury, acting jointly, may by regulations provide for-
 
 
    (a) Part VII of the Companies Act 1989 (financial markets and insolvency), and
 
    (b) Part V of the Companies (No. 2)(Northern Ireland) Order 1990,

to apply to relevant contracts as it applies to contracts connected with a recognised body.

      (2) "Relevant contracts" means contracts of a prescribed description in relation to which settlement arrangements are provided by a person for the time being included in a list ("the list") maintained by the Authority for the purposes of this section.
 
      (3) Regulations may be made under this section only if the Secretary of State and the Treasury are satisfied, having regard to the extent to which the relevant contracts concerned are contracts of a kind dealt in by persons supervised by the Authority, that it is appropriate for the arrangements mentioned in subsection (2) to be supervised by the Authority.
 
      (4) The approval of the Treasury is required for-
 
 
    (a) the conditions set by the Authority for admission to the list; and
 
    (b) the arrangements for admission to, and removal from, the list.
      (5) If the Treasury withdraw an approval given by them under subsection (4), all regulations made under this section and then in force are to be treated as suspended.
 
      (6) But if-
 
 
    (a) the Authority changes the conditions or arrangements (or both), and
 
    (b) the Treasury give a fresh approval under subsection (4),

the suspension of the regulations ends on such date as the Treasury may, in giving the fresh approval, specify.

      (7) The Authority must-
 
 
    (a) publish the list as for the time being in force; and
 
    (b) provide a certified copy of it to any person who wishes to refer to it in legal proceedings.
      (8) A certified copy of the list is evidence (or in Scotland sufficient evidence) of the contents of the list.
 
      (9) A copy of the list which purports to be certified by or on behalf of the Authority is to be taken to have been duly certified unless the contrary is shown.
 
      (10) Regulations under this section may, in relation to a person included in the list-
 
 
    (a) apply (with such exceptions, additions and modifications as appear to the Secretary of State and the Treasury to be necessary or expedient) such provisions of, or made under, this Act as they consider appropriate;
 
    (b) provide for the provisions of Part VII of the Companies Act 1989 and Part V of the Companies (No. 2)(Northern Ireland) Order 1990 to apply (with such exceptions, additions or modifications as appear to the Secretary of State and the Treasury to be necessary or expedient).
 
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