Financial Services and Markets Bill - continued        House of Lords
PART X, RULES AND GUIDANCE - continued

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Endorsement of codes etc. issued by other bodies.     138. - (1) The Authority may make rules ("endorsing rules")-
 
 
    (a) endorsing the City Code on Takeovers and Mergers issued by the Panel on Takeovers and Mergers;
 
    (b) endorsing the Rules Governing Substantial Acquisitions of Shares issued by the Panel.
      (2) Endorsement may be-
 
 
    (a) as respects all authorised persons; or
 
    (b) only as respects a specified kind of authorised person.
      (3) At any time when endorsing rules are in force, and if asked to do so by the Panel, the Authority may exercise its powers under Part IV or section 64 as if failure to comply with an endorsed provision was a ground entitling the Authority to exercise those powers.
 
      (4) At any time when endorsing rules are in force and if asked to do so by the Panel, the Authority may exercise its powers under Part XIII, XIV or XXV as if the endorsed provisions were rules applying to the persons in respect of whom they are endorsed.
 
      (5) For the purposes of subsections (3) and (4), a failure to comply with a requirement imposed, or ruling given, under an endorsed provision is to be treated as a failure to comply with the endorsed provision under which that requirement was imposed or ruling was given.
 
      (6) If endorsed provisions are altered, subsections (3) and (4) apply to them as altered, but only if before the alteration the Authority has notified the Panel (and has not withdrawn its notification) that it is satisfied with the Panel's consultation procedures.
 
      (7) "Consultation procedures" means procedures designed to provide an opportunity for persons likely to be affected by alterations to those provisions to make representations about proposed alterations to any of those provisions.
 
      (8) Subsections (1), (2)(d), (4), (5), (6)(a) and (12) of section 150 apply (with the necessary modifications) to a proposal to give notification of the kind mentioned in subsection (6) as they apply to a proposal to make endorsing rules.
 
      (9) This section applies in relation to particular provisions of the code or rules mentioned in subsection (1) as it applies to the code or the rules.
 
 
Price stabilising and certain other rules
Price stabilising rules.     139. - (1) The Authority may make rules ("price stabilising rules") as to-
 
 
    (a) the circumstances and manner in which,
 
    (b) the conditions subject to which, and
 
    (c) the time when or the period during which,
       action may be taken for the purpose of stabilising the price of investments of specified kinds.
 
      (2) Price stabilising rules-
 
 
    (a) are to be made so as to apply only to authorised persons;
 
    (b) may make different provision in relation to different kinds of investment.
      (3) The Authority may make rules which, for the purposes of section 390(5)(b), treat a person who acts or engages in conduct-
 
 
    (a) for the purpose of stabilising the price of investments, and
 
    (b) in conformity with such provisions corresponding to price stabilising rules and made by a body or authority outside the United Kingdom as may be specified in the rules under this subsection,
       as acting, or engaging in that conduct, for that purpose and in conformity with price stabilising rules.
 
      (4) The Treasury may by order impose limitations on the power to make rules under this section.
 
      (5) Such an order may, in particular-
 
 
    (a) specify the kinds of investment in relation to which price stabilising rules may make provision;
 
    (b) specify the kinds of investment in relation to which rules made under subsection (3) may make provision;
 
    (c) provide for price stabilising rules to make provision for action to be taken for the purpose of stabilising the price of investments only in such circumstances as the order may specify;
 
    (d) provide for price stabilising rules to make provision for action to be taken for that purpose only at such times or during such periods as the order may specify.
      (6) If provisions specified in rules made under subsection (3) are altered, the rules continue to apply to those provisions as altered, but only if before the alteration the Authority has notified the body or authority concerned (and has not withdrawn its notification) that it is satisfied with its consultation procedures.
 
      (7) "Consultation procedures" has the same meaning as in section 138.
 
Financial promotion rules.     140. - (1) The Authority may make rules applying to authorised persons about the communication by them, or their approval of the communication by others, of invitations or inducements-
 
 
    (a) to engage in investment activity; or
 
    (b) to participate in a collective investment scheme.
      (2) Rules under this section may, in particular, make provision about the form and content of communications.
 
      (3) Subsection (1) applies only to communications which-
 
 
    (a) if made by a person other than an authorised person, without the approval of an authorised person, would contravene section 19(1);
 
    (b) may be made by an authorised person without contravening section 233(1).
      (5) "Engage in investment activity" has the same meaning as in section 19.
 
      (6) The Treasury may by order impose limitations on the power to make rules under this section.
 
Money laundering rules.     141. The Authority may make rules in relation to the prevention and detection of money laundering in connection with the carrying on of regulated activities by authorised persons.
 
Control of information.     142. - (1) The Authority may make rules ("control of information rules") requiring an authorised person ("A") to withhold information from a person ("B") for or with whom he does business in the course of carrying on any regulated or other activity.
 
      (2) Control of information rules may-
 
 
    (a) require the withholding of information which A would otherwise have a legal obligation to disclose to B;
 
    (b) require A to restrict or prevent the passing of information within his business.
      (3) Subsection (1) applies only in relation to information obtained from a person other than B in the course of the carrying on by A of any activity, whether it was obtained by A, by an approved person or by any other person.
 
      (4) "Approved person" has the same meaning as in section 62.
 
 
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