Financial Services and Markets Bill - continued        House of Lords
PART VIII, PENALTIES FOR MARKET ABUSE - continued
Procedure - continued

back to previous text
 
Decision notices and right to refer to Tribunal.     122. - (1) If the Authority decides to take action against a person under section 118, it must give him a decision notice.
 
      (2) A decision notice about the imposition of a penalty must state the amount of the penalty.
 
      (3) A decision notice about the publication of a statement must set out the terms of the statement.
 
      (4) If the Authority decides to take action against a person under section 118, that person may refer the matter to the Tribunal.
 
 
Miscellaneous
Suspension of investigations.     123. - (1) If the Authority considers it desirable or expedient because of the exercise or possible exercise of a power relating to market abuse, it may direct a recognised investment exchange or recognised clearing house-
 
 
    (a) to terminate, suspend or limit the scope of any inquiry which the exchange or clearing house is conducting under its rules; or
 
    (b) not to conduct an inquiry which the exchange or clearing house proposes to conduct under its rules.
      (2) A direction under this section-
 
 
    (a) must be given to the exchange or clearing house concerned by notice in writing; and
 
    (b) is enforceable, on the application of the Authority, by injunction or, in Scotland, by an order under section 45 of the Court of Session Act 1988.
      (3) The Authority's powers relating to market abuse are its powers-
 
 
    (a) to impose penalties under section 118; or
 
    (b) to appoint a person to conduct an investigation under section 163 in a case falling within subsection (2)(d) of that section.
Power of court to impose penalty in cases of market abuse.     124. - (1) The Authority may on an application to the court under section 374 or 376 request the court to consider whether the circumstances are such that a penalty should be imposed on the person to whom the application relates.
 
      (2) The court may, if it considers it appropriate, make an order requiring the person concerned to pay to the Authority a penalty of such amount as it considers appropriate.
 
Guidance.     125. - (1) The Treasury may from time to time issue written guidance for the purpose of helping relevant authorities to determine the action to be taken in cases where behaviour occurs which is behaviour-
 
 
    (a) with respect to which the power in section 118 appears to be exercisable; and
 
    (b) which appears to involve the commission of an offence under section 390 of this Act or Part V of the Criminal Justice Act 1993 (insider dealing).
      (2) The Treasury must obtain the consent of the Attorney General and the Secretary of State before issuing any guidance under this section.
 
      (3) In this section "relevant authority"-
 
 
    (a) in relation to England and Wales, means the Secretary of State, the Authority, the Director of the Serious Fraud Office and the Director of Public Prosecutions;
 
    (b) in relation to Northern Ireland, means the Secretary of State, the Authority, the Director of the Serious Fraud Office and the Director of Public Prosecutions for Northern Ireland.
      (4) Subsections (1) to (3) do not apply to Scotland.
 
      (5) In relation to Scotland, the Lord Advocate may from time to time, after consultation with the Treasury, issue written guidance for the purpose of helping the Authority to determine the action to be taken in cases where behaviour mentioned in subsection (1) occurs.
 
Effect on transactions.     126. The imposition of a penalty under this Part does not make any transaction void or unenforceable.
 
 
previous section contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries index

© Parliamentary copyright 2000
Prepared 10 May 2000