Financial Services and Markets Bill - continued        House of Lords
PART XI, INFORMATION GATHERING AND INVESTIGATIONS - continued

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Assistance to overseas regulators
Investigations etc. in support of overseas regulator.     164. - (1) At the request of an overseas regulator, the Authority may-
 
 
    (a) exercise the power conferred by section 160; or
 
    (b) appoint one or more competent persons to investigate any matter.
      (2) An investigator has the same powers as an investigator appointed under section 163(3) (as a result of subsection (1) of that section).
 
      (3) If the request has been made by a competent authority in pursuance of any Community obligation the Authority must, in deciding whether or not to exercise its investigative power, consider whether its exercise is necessary to comply with any such obligation.
 
      (4) In deciding whether or not to exercise its investigative power, the Authority may take into account in particular-
 
 
    (a) whether in the country or territory of the overseas regulator concerned, corresponding assistance would be given to a United Kingdom regulatory authority;
 
    (b) whether the case concerns the breach of a law, or other requirement, which has no close parallel in the United Kingdom or involves the assertion of a jurisdiction not recognised by the United Kingdom;
 
    (c) the seriousness of the case and its importance to persons in the United Kingdom;
 
    (d) whether it is otherwise appropriate in the public interest to give the assistance sought.
      (5) The Authority may decide that it will not exercise its investigative power unless the overseas regulator undertakes to make such contribution towards the cost of its exercise as the Authority considers appropriate.
 
      (6) Subsections (4) and (5) do not apply if the Authority considers that the exercise of its investigative power is necessary to comply with a Community obligation.
 
      (7) If the Authority has appointed an investigator in response to a request from an overseas regulator, it may direct the investigator to permit a representative of that regulator to attend, and take part in, any interview conducted for the purposes of the investigation.
 
      (8) A direction under subsection (7) is not to be given unless the Authority is satisfied that any information obtained by an overseas regulator as a result of the interview will be subject to safeguards equivalent to those contained in Part XXIII.
 
      (9) The Authority must prepare a statement of its policy with respect to the conduct of interviews in relation to which a direction under subsection (7) has been given.
 
      (10) The statement requires the approval of the Treasury.
 
      (11) If the Treasury approve the statement, the Authority must publish it.
 
      (12) No direction may be given under subsection (7) before the statement has been published.
 
      (13) "Overseas regulator" has the same meaning as in section 190.
 
      (14) "Investigative power" means one of the powers mentioned in subsection (1).
 
      (15) "Investigator" means a person appointed under subsection (1)(b).
 
 
Conduct of investigations
Investigations: general.     165. - (1) This section applies if an investigating authority appoints one or more competent persons ("investigators") under section 162 or 163(3) or (5) to conduct an investigation on its behalf.
 
      (2) The investigating authority must give written notice of the appointment of an investigator to the person who is the subject of the investigation ("the person under investigation").
 
      (3) Subsections (2) and (9) do not apply if -
 
 
    (a) the investigator is appointed as a result of section 163(1) or (4) and the investigating authority believes that the notice required by subsection (2) or (9) would be likely to result in the investigation being frustrated; or
 
    (b) the investigator is appointed as a result of subsection (2) of section 163.
      (4) A notice under subsection (2) must-
 
 
    (a) specify the provisions under which, and as a result of which, the investigator was appointed; and
 
    (b) state the reason for his appointment.
      (5) Nothing prevents the investigating authority from appointing a person who is a member of its staff as an investigator.
 
      (6) An investigator must make a report of his investigation to the investigating authority.
 
      (7) The investigating authority may, by a direction to an investigator, control-
 
 
    (a) the scope of the investigation;
 
    (b) the period during which the investigation is to be conducted;
 
    (c) the conduct of the investigation; and
 
    (d) the reporting of the investigation.
      (8) A direction may, in particular-
 
 
    (a) confine the investigation to particular matters;
 
    (b) extend the investigation to additional matters;
 
    (c) require the investigator to discontinue the investigation or to take only such steps as are specified in the direction;
 
    (d) require the investigator to make such interim reports as are so specified.
      (9) If there is a change in the scope or conduct of the investigation and, in the opinion of the investigating authority, the person subject to investigation is likely to be significantly prejudiced by not being made aware of it, that person must be given written notice of the change.
 
      (10) "Investigating authority", in relation to an investigator, means-
 
 
    (a) the Authority, if the Authority appointed him;
 
    (b) the Secretary of State, if the Secretary of State appointed him.
Powers of persons appointed under section 162.     166. - (1) An investigator may require the person who is the subject of the investigation ("the person under investigation") or any person connected with the person under investigation-
 
 
    (a) to attend before the investigator at a specified time and place and answer questions; or
 
    (b) otherwise to provide such information as the investigator may require.
      (2) An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.
 
      (3) A requirement under subsection (1) or (2) may be imposed only so far as the investigator concerned reasonably considers the question, provision of information or production of the document to be relevant to the purposes of the investigation.
 
      (4) For the purposes of this section and section 167, a person is connected with the person under investigation ("A") if he is or has at any relevant time been-
 
 
    (a) a member of A's group;
 
    (b) a controller of A;
 
    (c) a partnership of which A is a member; or
 
    (d) in relation to A, a person mentioned in Part I or II of Schedule 15.
      (5) "Investigator" means a person conducting an investigation under section 162.
 
      (6) "Specified" means specified in a notice in writing.
 
Additional power of persons appointed as a result of section 163(1) or (4).     167. - (1) An investigator has the powers conferred by section 166.
 
      (2) An investigator may also require a person who is neither the subject of the investigation ("the person under investigation") nor a person connected with the person under investigation-
 
 
    (a) to attend before the investigator at a specified time and place and answer questions; or
 
    (b) otherwise to provide such information as the investigator may require for the purposes of the investigation.
      (3) A requirement may only be imposed under subsection (2) if the investigator is satisfied that the requirement is necessary or expedient for the purposes of the investigation.
 
      (4) "Investigator" means a person appointed as a result of subsection (1) or (4) of section 163.
 
      (5) "Specified" means specified in a notice in writing.
 
Powers of person appointed to investigate as a result of section 163(2).     168. - (1) Subsections (2) to (4) apply if an investigator considers that any person ("A") is or may be able to give information which is or may be relevant to the investigation.
 
      (2) The investigator may require A-
 
 
    (a) to attend before him at a specified time and place and answer questions; or
 
    (b) otherwise to provide such information as he may require for the purposes of the investigation.
      (3) The investigator may also require A to produce at a specified time and place any specified documents or documents of a specified description which appear to the investigator to relate to any matter relevant to the investigation.
 
      (4) The investigator may also otherwise require A to give him all assistance in connection with the investigation which A is reasonably able to give.
 
      (5) "Investigator" means a person appointed under subsection (3) of section 163 (as a result of subsection (2) of that section).
 
 
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