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

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Modification or waiver
Modification or waiver of rules.     143. - (1) This section applies in relation to the following-
 
 
    (a) auditors and actuaries rules;
 
    (b) control of information rules;
 
    (c) financial promotion rules;
 
    (d) general rules;
 
    (e) insurance business rules;
 
    (f) money laundering rules; and
 
    (g) price stabilising rules.
      (2) The Authority may, on the application or with the consent of an authorised person, direct that all or any of the rules to which this section applies-
 
 
    (a) are not to apply to the authorised person; or
 
    (b) are to apply to him with such modifications as may be specified in the direction.
      (3) An application must be made in such manner as the Authority may direct.
 
      (4) The Authority may not give a direction unless it is satisfied that-
 
 
    (a) compliance by the authorised person with the rules, or with the rules as unmodified, would be unduly burdensome or would not achieve the purpose for which the rules were made; and
 
    (b) the direction would not result in undue risk to persons whose interests the rules are intended to protect.
      (5) A direction may be given subject to conditions.
 
      (6) Unless it is satisfied that it is inappropriate or unnecessary to do so, a direction must be published by the Authority in such a way as it thinks most suitable for bringing the direction to the attention of-
 
 
    (a) those likely to be affected by it; and
 
    (b) others who may be likely to make an application for a similar direction.
      (7) In deciding whether it is satisfied as mentioned in subsection (6), the Authority must-
 
 
    (a) take into account whether the direction relates to a rule contravention of which is actionable in accordance with section 145;
 
    (b) consider whether its publication would prejudice, to an unreasonable degree, the commercial interests of the authorised person concerned or any other member of his immediate group; and
 
    (c) consider whether its publication would be contrary to an international obligation of the United Kingdom.
      (8) For the purposes of paragraphs (b) and (c) of subsection (7), the Authority must consider whether it would be possible to publish the direction without either of the consequences mentioned in those paragraphs by publishing it without disclosing the identity of the authorised person concerned.
 
      (9) The Authority may-
 
 
    (a) revoke a direction; or
 
    (b) vary it on the application, or with the consent, of the authorised person to whom it relates.
      (10) "Direction" means a direction under subsection (2).
 
      (11) "Immediate group", in relation to an authorised person ("A"), means-
 
 
    (a) A;
 
    (b) a parent undertaking of A;
 
    (c) a subsidiary undertaking of A;
 
    (d) a subsidiary undertaking of a parent undertaking of A;
 
    (e) a parent undertaking of a subsidiary undertaking of A.
 
Contravention of rules
Evidential provisions.     144. - (1) If a particular rule so provides, contravention of the rule does not give rise to any of the consequences provided for by other provisions of this Act.
 
      (2) A rule which so provides must also provide-
 
 
    (a) that contravention may be relied on as tending to establish contravention of such other rule as may be specified; or
 
    (b) that compliance may be relied on as tending to establish compliance with such other rule as may be specified.
      (3) A rule may include the provision mentioned in subsection (1) only if the Authority considers that it is appropriate for it also to include the provision required by subsection (2).
 
Actions for damages.     145. - (1) A contravention by an authorised person of a rule is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
 
      (2) If rules so provide, subsection (1) does not apply to contravention of a specified provision of those rules.
 
      (3) If rules so provide, a contravention of a specified provision of those rules is to be actionable at the suit of a person other than a private person if he suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
 
      (4) In subsections (1) and (3) "rule" does not include-
 
 
    (a) listing rules; or
 
    (b) a rule requiring an authorised person to have or maintain financial resources.
      (5) "Private person" has such meaning as may be prescribed.
 
Limits on effect of contravening rules.     146. - (1) A person is not guilty of an offence by reason of a contravention of a rule made by the Authority.
 
      (2) No such contravention makes any transaction void or unenforceable.
 
 
Procedural provisions
Notification of rules to Treasury.     147. - (1) If the Authority makes any rules, it must give a copy to the Treasury without delay.
 
      (2) If the Authority alters or revokes any rules, it must give written notice to the Treasury without delay.
 
      (3) Notice of an alteration must include details of the alteration.
 
 
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