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

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Statement of policy.     90. - (1) The competent authority must prepare and issue a statement ("its policy statement") of its policy with respect to-
 
 
    (a) the imposition of penalties under section 88; and
 
    (b) the amount of penalties under that section.
      (2) The competent authority's policy in determining what the amount of a penalty should be must include having regard to-
 
 
    (a) the seriousness of the contravention in question in relation to the nature of the requirement contravened;
 
    (b) the extent to which that contravention was deliberate or reckless; and
 
    (c) whether the person on whom the penalty is to be imposed is an individual.
      (3) The competent authority may at any time alter or replace its policy statement.
 
      (4) If its policy statement is altered or replaced, the competent authority must issue the altered or replacement statement.
 
      (5) In exercising, or deciding whether to exercise, its power under section 88 in the case of any particular contravention, the competent authority must have regard to any policy statement published under this section and in force at the time when the contravention in question occurred.
 
      (6) The competent authority must publish a statement issued under this section in the way appearing to the competent authority to be best calculated to bring it to the attention of the public.
 
      (7) The competent authority may charge a reasonable fee for providing a person with a copy of the statement.
 
      (8) The competent authority must, without delay, give the Treasury a copy of any policy statement which it publishes under this section.
 
Statements of policy: procedure.     91. - (1) Before issuing a statement under section 90, the competent authority must publish a draft of the proposed statement in the way appearing to the competent authority to be best calculated to bring it to the attention of the public.
 
      (2) The draft must be accompanied by notice that representations about the proposal may be made to the competent authority within a specified time.
 
      (3) Before issuing the proposed statement, the competent authority must have regard to any representations made to it in accordance with subsection (2).
 
      (4) If the competent authority issues the proposed statement it must publish an account, in general terms, of-
 
 
    (a) the representations made to it in accordance with subsection (2); and
 
    (b) its response to them.
      (5) If the statement differs from the draft published under subsection (1) in a way which is, in the opinion of the competent authority, significant, the competent authority must (in addition to complying with subsection (4)) publish details of the difference.
 
      (6) The competent authority may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).
 
      (7) This section also applies to a proposal to alter or replace a statement.
 
 
Competition
Competition scrutiny.     92. - (1) The Treasury may by order provide for-
 
 
    (a) regulating provisions, and
 
    (b) the practices of the competent authority in exercising its functions under this Part ("practices"),
       to be kept under review.
 
      (2) Provision made as a result of subsection (1) must require the person responsible for keeping regulating provisions and practices under review to consider-
 
 
    (a) whether any regulating provision or practice has a significant adverse effect on competition; or
 
    (b) whether two or more regulating provisions or practices taken together have, or a particular combination of regulating provisions and practices has, such an effect.
      (3) An order under this section may include provision corresponding to that made by any provision of Chapter III of Part X.
 
      (4) Subsection (3) is not to be read as in any way restricting the power conferred by subsection (1).
 
      (5) Subsections (6) to (8) apply for the purposes of provision made by or under this section.
 
      (6) Regulating provisions or practices have a significant adverse effect on competition if-
 
 
    (a) they have, or are intended or likely to have, that effect; or
 
    (b) the effect that they have, or are intended or likely to have, is to require or encourage behaviour which has, or is intended or likely to have, a significantly adverse effect on competition.
      (7) If regulating provisions or practices have, or are intended or likely to have, the effect of requiring or encouraging exploitation of the strength of a market position they are to be taken to have, or be intended or be likely to have, an adverse effect on competition.
 
      (8) In determining whether any of the regulating provisions or practices have, or are intended or likely to have, a particular effect, it may be assumed that the persons to whom the provisions concerned are addressed will act in accordance with them.
 
      (9) "Regulating provisions" means-
 
 
    (a) listing rules,
 
    (b) general guidance given by the competent authority in connection with its functions under this Part.
 
Miscellaneous
Obligations of issuers of listed securities.     93. - (1) Listing rules may-
 
 
    (a) specify requirements to be complied with by issuers of listed securities; and
 
    (b) make provision with respect to the action that may be taken by the competent authority in the event of non-compliance.
      (2) If the rules require an issuer to publish information, they may include provision authorising the competent authority to publish it in the event of his failure to do so.
 
      (3) This section applies whenever the listed securities were admitted to the official list.
 
Appointment by competent authority of persons to carry out investigations.     94. - (1) Subsection (2) applies if it appears to the competent authority that there are circumstances suggesting that-
 
 
    (a) there may have been a breach of listing rules;
 
    (b) a person who was at the material time a director of an issuer of listed securities has been knowingly concerned in a breach of listing rules by that issuer;
 
    (c) a person who was at the material time a director of a person applying for the admission of securities to the official list has been knowingly concerned in a breach of listing rules by that applicant;
 
    (d) there may have been a contravention of section 81, 83 or 95.
      (2) The competent authority may appoint one or more competent persons to conduct an investigation on its behalf.
 
      (3) Part XI applies to an investigation under subsection (2) as if-
 
 
    (a) the investigator were appointed under section 162(1);
 
    (b) references to the investigating authority in relation to him were to the competent authority;
 
    (c) references to the offences mentioned in section 163 were to those mentioned in subsection (1)(d);
 
    (d) references to an authorised person were references to the person under investigation.
 
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