Financial Services and Markets Bill - continued        House of Lords
PART VI, OFFICIAL LISTING - continued

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Sponsors
Sponsors.     86. - (1) Listing rules may require a person to make arrangements with a sponsor for the performance by the sponsor of such services in relation to him as may be specified in the rules.
 
      (2) "Sponsor" means a person approved by the competent authority for the purposes of the rules.
 
      (3) Listing rules made by virtue of subsection (1) may-
 
 
    (a) provide for the competent authority to maintain a list of sponsors;
 
    (b) specify services which must be performed by a sponsor;
 
    (c) impose requirements on a sponsor in relation to the provision of services or specified services;
 
    (d) specify the circumstances in which a person is qualified for being approved as a sponsor.
      (4) If the competent authority proposes-
 
 
    (a) to refuse a person's application for approval as a sponsor, or
 
    (b) to cancel a person's approval as a sponsor,
       it must give him a warning notice.
 
      (5) If, after considering any representations made in response to the warning notice, the competent authority decides-
 
 
    (a) to grant the application for approval, or
 
    (b) not to cancel the approval,
       it must give the person concerned, and any person to whom a copy of the warning notice was given, written notice of its decision.
 
      (6) If, after considering any representations made in response to the warning notice, the competent authority decides-
 
 
    (a) to refuse to grant the application for approval, or
 
    (b) to cancel the approval,
       it must give the person concerned a decision notice.
 
      (7) A person to whom a decision notice is given under this section may refer the matter to the Tribunal.
 
 
Compensation
Compensation for false or misleading particulars.     87. - (1) Any person responsible for listing particulars is liable to pay compensation to a person who has-
 
 
    (a) acquired securities to which the particulars apply; and
 
    (b) suffered loss in respect of them as a result of-
 
      (i) any untrue or misleading statement in the particulars; or
 
      (ii) the omission from the particulars of any matter required to be included by section 78 or 79.
      (2) Subsection (1) is subject to exemptions provided by Schedule 10.
 
      (3) If listing particulars are required to include information about the absence of a particular matter, the omission from the particulars of that information is to be treated as a statement in the listing particulars that there is no such matter.
 
      (4) Any person who fails to comply with section 79 is liable to pay compensation to any person who has-
 
 
    (a) acquired securities of the kind in question; and
 
    (b) suffered loss in respect of them as a result of the failure.
      (5) Subsection (4) is subject to exemptions provided by Schedule 10.
 
      (6) This section does not affect any liability which may be incurred apart from this section.
 
      (7) References in this section to the acquisition by a person of securities include references to his contracting to acquire them or any interest in them.
 
      (8) No person shall, by reason of being a promoter of a company or otherwise, incur any liability for failing to disclose information which he would not be required to disclose in listing particulars in respect of a company's securities-
 
 
    (a) if he were responsible for those particulars; or
 
    (b) if he is responsible for them, which he is entitled to omit by virtue of section 80.
      (9) The reference in subsection (8) to a person incurring liability includes a reference to any other person being entitled as against that person to be granted any civil remedy or to rescind or repudiate an agreement.
 
      (10) "Listing particulars", in subsection (1) and Schedule 10, includes supplementary listing particulars.
 
 
Penalties
Penalties for breach of listing rules.     88. - (1) If the competent authority considers that-
 
 
    (a) an issuer of listed securities, or
 
    (b) an applicant for listing,
       has contravened any provision of listing rules, it may impose on him a penalty of such amount as it considers appropriate.
 
      (2) If, in such a case, the competent authority considers that a person who was at the material time a director of the issuer or applicant was knowingly concerned in the contravention, it may impose on him a penalty of such amount as it considers appropriate.
 
      (3) If the competent authority is entitled to impose a penalty on a person under this section in respect of a particular matter it may, instead of imposing a penalty on him in respect of that matter, publish a statement censuring him.
 
      (4) Nothing in this section prevents the competent authority from taking any other steps which it has power to take under this Part.
 
      (5) A penalty under this section is payable to the competent authority.
 
      (6) The competent authority may not take action against a person under this section after the end of the period of two years beginning with the first day on which it knew of the contravention unless proceedings against that person, in respect of the contravention, were begun before the end of that period.
 
      (7) For the purposes of subsection (6)-
 
 
    (a) the competent authority is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred; and
 
    (b) proceedings against a person in respect of a contravention are to be treated as begun when a warning notice is given to him under section 89.
Warning notices.     89. - (1) If the competent authority proposes to take action against a person under section 88, it must give him a warning notice.
 
      (2) A warning notice about a proposal to impose a penalty must state the amount of the proposed penalty.
 
      (3) A warning notice about a proposal to publish a statement must set out the terms of the proposed statement.
 
      (4) If the competent authority decides to take action against a person under section 88, it must give him a decision notice.
 
      (5) A decision notice about the imposition of a penalty must state the amount of the penalty.
 
      (6) A decision notice about the publication of a statement must set out the terms of the statement.
 
      (7) If the competent authority decides to take action against a person under section 88, he may refer the matter to the Tribunal.
 
 
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