Financial Services and Markets Bill - continued        House of Lords
PART XVII, COLLECTIVE INVESTMENT SCHEMES - continued
Powers of intervention - continued

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Procedure on giving directions under section 252 and varying them on Authority's own initiative.     254. - (1) A direction takes effect-
 
 
    (a) immediately, if the notice given under subsection (3) states that that is the case;
 
    (b) on such date as may be specified in the notice; or
 
    (c) if no date is specified in the notice, when the matter to which it relates is no longer open to review.
      (2) A direction may be expressed to take effect immediately (or on a specified date) only if the Authority, having regard to the ground on which it is exercising its power under section 252, considers that it is necessary for the direction to take effect immediately (or on that date).
 
      (3) If the Authority proposes to give a direction under section 252, or gives such a direction with immediate effect, it must give separate written notice to the manager and the trustee of the scheme concerned.
 
      (4) The notice must-
 
 
    (a) give details of the direction;
 
    (b) inform the person to whom it is given of when the direction takes effect;
 
    (c) state the Authority's reasons for giving the direction and for its determination as to when the direction takes effect;
 
    (d) inform the person to whom it is given that he may make representations to the Authority within such period as may be specified in it (whether or not he has referred the matter to the Tribunal); and
 
    (e) inform him of his right to refer the matter to the Tribunal.
      (5) If the direction imposes a requirement under section 252(2)(a), the notice must state that the requirement has effect until-
 
 
    (a) a specified date; or
 
    (b) a further direction.
      (6) If the direction imposes a requirement under section 252(2)(b), the scheme must be wound up-
 
 
    (a) by a date specified in the notice; or
 
    (b) if no date is specified, as soon as practicable.
      (7) The Authority may extend the period allowed under the notice for making representations.
 
      (8) If, having considered any representations made by a person to whom the notice was given, the Authority decides-
 
 
    (a) to give the direction in the way proposed, or
 
    (b) if it has been given, not to revoke the direction,
       it must give separate written notice to the manager and the trustee of the scheme concerned.
 
      (9) If, having considered any representations made by a person to whom the notice was given, the Authority decides-
 
 
    (a) not to give the direction in the way proposed,
 
    (b) to give the direction in a way other than that proposed, or
 
    (c) to revoke a direction which has effect,
       it must give separate written notice to the manager and the trustee of the scheme concerned.
 
      (10) A notice given under subsection (8) must inform the person to whom it is given of his right to refer the matter to the Tribunal.
 
      (11) A notice under subsection (9)(b) must comply with subsection (4).
 
      (12) If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
 
      (13) This section applies to the variation of a direction on the Authority's own initiative as it applies to the giving of a direction.
 
      (14) For the purposes of subsection (1)(c), whether a matter is open to review is to be determined in accordance with section 384(8).
 
Procedure: refusal to revoke or vary direction.     255. - (1) If on an application under section 252(6) for a direction to be revoked or varied the Authority proposes-
 
 
    (a) to vary the direction otherwise than in accordance with the application, or
 
    (b) to refuse to revoke or vary the direction,
       it must give the applicant a warning notice.
 
      (2) If the Authority decides to refuse to revoke or vary the direction-
 
 
    (a) it must give the applicant a decision notice; and
 
    (b) the applicant may refer the matter to the Tribunal.
Procedure: revocation of direction and grant of request for variation.     256. - (1) If the Authority decides on its own initiative to revoke a direction under section 252 it must give separate written notices of its decision to the manager and trustee of the scheme.
 
      (2) If on an application under section 252(6) for a direction to be revoked or varied the Authority decides to revoke the direction or vary it in accordance with the application, it must give the applicant written notice of its decision.
 
      (3) A notice under this section must specify the date on which the decision takes effect.
 
      (4) The Authority may publish such information about the revocation or variation, in such way, as it considers appropriate.
 
 
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