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

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Admissibility of statements made to investigators.     169. - (1) A statement made to an investigator by a person in compliance with an information requirement is admissible in evidence in any proceedings, so long as it also complies with any requirements governing the admissibility of evidence in the circumstances in question.
 
      (2) But in criminal proceedings in which that person is charged with an offence to which this subsection applies or in proceedings in relation to action to be taken against a person under section 118-
 
 
    (a) no evidence relating to the statement may be adduced, and
 
    (b) no question relating to it may be asked,
       by or on behalf of the prosecution or (as the case may be) the Authority, unless evidence relating to it is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person.
 
      (3) Subsection (2) applies to any offence other than one-
 
 
    (a) under section 172(4) or 391;
 
    (b) under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);
 
    (c) under section 44(2) of the Criminal Law (Consolidation)(Scotland) Act 1995 (false statements made otherwise than on oath); or
 
    (d) under Article 10 of the Perjury (Northern Ireland) Order 1979.
      (4) "Investigator" means a person appointed under section 162 or 163(3) or (5).
 
      (5) "Information requirement" means a requirement imposed by an investigator under section 166, 167, 168 or 170.
 
Information and documents: supplemental provisions.     170. - (1) If the Authority or an investigator has power under this Part to require a person to produce a document but it appears that the document is in the possession of a third person, that power may be exercised in relation to the third person.
 
      (2) If a document is produced in response to a requirement imposed under this Part, the person to whom it is produced may-
 
 
    (a) take copies or extracts from the document; or
 
    (b) require the person producing the document, or any relevant person, to provide an explanation of the document.
      (3) If a person who is required under this Part to produce a document fails to do so, the Authority or an investigator may require him to state, to the best of his knowledge and belief, where the document is.
 
      (4) A lawyer may be required under this Part to furnish the name and address of his client.
 
      (5) No person may be required under this Part to disclose information or produce a document in respect of which he owes an obligation of confidence by virtue of carrying on the business of banking unless-
 
 
    (a) he is the person under investigation or a member of that person's group;
 
    (b) the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group;
 
    (c) the person to whom the obligation of confidence is owed consents to the disclosure or production; or
 
    (d) the imposing on him of a requirement with respect to such information or document has been specifically authorised by the investigating authority.
      (6) If a person claims a lien on a document, its production under this Part does not affect the lien.
 
      (7) "Relevant person", in relation to a person who is required to produce a document, means a person who-
 
 
    (a) has been or is or is proposed to be a director or controller of that person;
 
    (b) has been or is an auditor of that person;
 
    (c) has been or is an actuary, accountant or lawyer appointed or instructed by that person; or
 
    (d) has been or is an employee of that person.
      (8) "Investigator" means a person appointed under section 162 or 163(3) or (5).
 
Entry of premises under warrant.     171. - (1) A justice of the peace may issue a warrant under this section if satisfied on information on oath given by or on behalf of the Secretary of State, the Authority or an investigator that there are reasonable grounds for believing that the first, second or third set of conditions is satisfied.
 
      (2) The first set of conditions is-
 
 
    (a) that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it; and
 
    (b) that on the premises specified in the warrant-
 
      (i) there are documents which have been required; or
 
      (ii) there is information which has been required.
      (3) The second set of conditions is-
 
 
    (a) that the premises specified in the warrant are premises of an authorised person or an appointed representative;
 
    (b) that there are on the premises documents or information in relation to which an information requirement could be imposed; and
 
    (c) that if such a requirement were to be imposed-
 
      (i) it would not be complied with; or
 
      (ii) the documents or information to which it related would be removed, tampered with or destroyed.
      (4) The third set of conditions is-
 
 
    (a) that an offence mentioned in section 163 for which the maximum sentence on conviction on indictment is two years or more has been (or is being) committed by any person;
 
    (b) that there are on the premises specified in the warrant documents or information relevant to whether that offence has been (or is being) committed;
 
    (c) that an information requirement could be imposed in relation to those documents or information; and
 
    (d) that if such a requirement were to be imposed-
 
      (i) it would not be complied with; or
 
      (ii) the documents or information to which it related would be removed, tampered with or destroyed.
      (5) A warrant under this section shall authorise a constable-
 
 
    (a) to enter the premises specified in the warrant;
 
    (b) to search the premises and take possession of any documents or information appearing to be documents or information of a kind in respect of which a warrant under this section was issued ("the relevant kind") or to take, in relation to any such documents or information, any other steps which may appear to be necessary for preserving them or preventing interference with them;
 
    (c) to take copies of, or extracts from, any documents or information appearing to be of the relevant kind;
 
    (d) to require any person on the premises to provide an explanation of any document or information appearing to be of the relevant kind or to state where it may be found; and
 
    (e) to use such force as may be reasonably necessary.
      (6) In England and Wales, sections 15(5) to (8) and section 16 of the Police and Criminal Evidence Act 1984 (execution of search warrants and safeguards) apply to warrants issued under this section.
 
      (7) In Northern Ireland, Articles 17(5) to (8) and 18 of the Police and Criminal Evidence (Northern Ireland) Order 1989 apply to warrants issued under this section.
 
      (8) Any document of which possession is taken under this section may be retained-
 
 
    (a) for a period of three months; or
 
    (b) if within that period proceedings to which the document is relevant are commenced against any person for any criminal offence, until the conclusion of those proceedings.
      (9) In the application of this section to Scotland-
 
 
    (a) for the references to a justice of the peace substitute references to a justice of the peace or a sheriff; and
 
    (b) for the references to information on oath substitute references to evidence on oath.
      (10) "Investigator" means a person appointed under section 162 or 163(3) or (5).
 
      (11) "Information requirement" means a requirement imposed-
 
 
    (a) by the Authority under section 160 or 170; or
 
    (b) by an investigator under section 166, 167, 168 or 170.
 
Offences
Offences.     172. - (1) If a person other than the investigator ("the defaulter") fails to comply with a requirement imposed on him under this Part the person imposing the requirement may certify that fact in writing to the court.
 
      (2) If the court is satisfied that the defaulter failed without reasonable excuse to comply with the requirement, it may deal with the defaulter (and in the case of a body corporate, any director or officer) as if he were in contempt.
 
      (3) A person who knows or suspects that an investigation is being or is likely to be conducted under this Part is guilty of an offence if-
 
 
    (a) he falsifies, conceals, destroys or otherwise disposes of a document which he knows or suspects is or would be relevant to such an investigation, or
 
    (b) he causes or permits the falsification, concealment, destruction or disposal of such a document,
       unless he shows that he had no intention of concealing facts disclosed by the documents from the investigator.
 
      (4) A person who, in purported compliance with a requirement imposed on him under this Part-
 
 
    (a) provides information which he knows to be false or misleading in a material particular, or
 
    (b) recklessly provides information which is false or misleading in a material particular,
       is guilty of an offence.
 
      (5) A person guilty of an offence under subsection (3) or (4) is liable-
 
 
    (a) on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both;
 
    (b) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine, or both.
      (6) Any person who intentionally obstructs the exercise of any rights conferred by a warrant under section 171 is guilty of an offence and liable on summary conviction to imprisonment for a term not exceeding three months or a fine not exceeding level 5 on the standard scale, or both.
 
      (7) "Court" means-
 
 
    (a) the High Court;
 
    (b) in Scotland, the Court of Session.
 
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