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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Procedure on making or varying orders under section 324.     326. - (1) If the Authority proposes to make an order under section 324, 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 324, 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 324.
 
      (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 324, 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 324 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.     327. - (1) The Authority may make rules applicable to persons to whom, as a result of section 322(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.
 
False claims to be a person to whom the general prohibition does not apply.     328. - (1) A person who-
 
 
    (a) describes himself (in whatever terms) as a person to whom the general prohibition does not apply, in relation to a particular regulated activity, as a result of this Part, or
 
    (b) behaves, or otherwise holds himself out, in a manner which indicates (or which is reasonably likely to be understood as indicating) that he is such a person,

is guilty of an offence if he is not such a person.

      (2) In proceedings for an offence under this section it is a defence for the accused to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.
 
      (3) A person guilty of an offence under this section is liable on summary conviction to imprisonment for a term not exceeding six months or a fine not exceeding level 5 on the standard scale, or both.
 
      (4) But where the conduct constituting the offence involved or included the public display of any material, the maximum fine for the offence is level 5 on the standard scale multiplied by the number of days for which the display continued.
 
 
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