Financial Services and Markets Act 2000 (c. 8)

[F1 Part 18A U.K. SUSPENSION AND REMOVAL OF FINANCIAL INSTRUMENTS FROM TRADING

Textual Amendments

F1 Pt. 18A inserted (1.4.2007 for certain purposes and 1.11.2007 otherwise) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(3), Sch. 3 para. 1

313A [F2 FCA's] power to require suspension or removal of financial instruments from trading U.K.

(1) The [F3 FCA] may, for the purpose of protecting—

(a) the interests of investors, or

(b) the orderly functioning of the financial markets,

require an institution [F4 or a class of institutions] to suspend or remove a financial instrument from trading.

[F5 (2) If the [F3 FCA] exercises the power conferred by subsection (1), the matter may be referred to the Tribunal by—

(a) the institution or, as the case may be, any institution in the class, or

(b) the issuer of the financial instrument (if any).]

(3) In this section, “trading” includes trading otherwise than on a regulated market or a multilateral trading facility.

Textual Amendments

F2 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F4 Words in s. 313A(1) inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 2(2)

F5 S. 313A(2) substituted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 2(3)

313B Suspension or removal of financial instruments from trading: procedure U.K.

(1) A requirement imposed on an institution under section 313A (a “relevant requirement”) takes effect—

(a) immediately, if the notice given under subsection (2) states that this is the case;

(b) in any other case, on such date as may be specified in the notice.

(2) If the [F3 FCA] proposes to impose a relevant requirement on an institution, [F6 or a class of institutions,] or imposes such a requirement with immediate effect, it must give written notice to[F7 give notice—

(a) by written notice to—

(i) the institution or, as the case may be, each institution in the class, and

(ii) the issuer of the financial instrument in question (if any); or

(b) by publishing a notice by means of a regulatory information service.]

(3) [F8 A notice given under subsection (2)(a)] must—

(a) give details of the relevant requirement;

(b) state the [F2 FCA's] reasons for imposing the requirement and choosing the date on which it took effect or takes effect;

(c) inform the recipient that he may make representations to the [F3 FCA] within such period as may be specified by the notice (whether or not he has referred the matter to the Tribunal);

(d) inform him of the date on which the requirement took effect or takes effect; and

(e) inform him of his right to refer the matter to the Tribunal and give an indication of the procedure on such a reference.

[F9 (3A) A notice published under subsection (2)(b) must—

(a) give details of the relevant requirement;

(b) specify the institution, or the class of institutions, to which it applies;

(c) state the [F2 FCA's] reasons for imposing the requirement and choosing the date on which it took effect or takes effect;

(d) state that any institution to which the requirement applies or the issuer of the financial instrument in question may make representations to the [F3 FCA] within such period as may be specified by the notice (whether or not the institution or the issuer has referred the matter to the Tribunal);

(e) state the date on which the requirement took effect or takes effect; and

(f) state that any institution to which the requirement applies or the issuer of the financial instrument in question has a right to refer the matter to the Tribunal, and give an indication of the procedure on such a reference.]

(4) The [F3 FCA] may extend the period within which representations may be made to it.

(5) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F6 Words in s. 313B(2) inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 3(2)(a)

F7 Words in s. 313B(2) substituted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 3(2)(b)

F8 Words in s. 313B(3) substituted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 3(3)

F9 S. 313B(3A) inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 3(4)

F10 S. 313B(5)-(12) omitted (9.4.2010) by virtue of The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 3(5)

[F11 313BA Procedure following consideration of representations U.K.

(1) This section applies where, within the period specified under section 313B(3), (3A) or (4), representations are made to the [F3 FCA] in relation to a requirement that it has proposed to impose or has imposed under section 313A.

(2) The [F3 FCA] must decide whether to impose the requirement or (in the case of a requirement that has been imposed) whether to revoke it.

(3) In the case of a requirement that the [F3 FCA] has proposed to impose on a class of institutions, the [F3 FCA] may decide to impose the requirement—

(a) on the class;

(b) on the class apart from one or more specified members of it; or

(c) only on one or more specified members of the class.

(4) In the case of a requirement that the [F3 FCA] has imposed on a class of institutions, the [F3 FCA] may decide to revoke it in relation to—

(a) the class;

(b) the class apart from one or more specified members of it; or

(c) one or more specified members of the class only.

(5) The [F3 FCA] must give written notice of its decision to—

(a) any institution which has made representations, and

(b) the issuer of the financial instrument in question (if any).

(6) In the case of a requirement that the [F3 FCA] has proposed to impose or has imposed on a class, the [F3 FCA] must also give notice of its decision by publishing it by means of a regulatory information service unless the decision is—

(a) to impose the requirement on the class, or

(b) not to revoke the requirement in relation to the class or any member of it.

(7) An institution to which notice is required to be given under subsection (5) may refer the matter to the Tribunal if the [F2 FCA's] decision is that the requirement will be imposed on, or will continue to apply to, the institution.

(8) An issuer to whom notice is required to be given under subsection (5) may refer the matter to the Tribunal if the [F2 FCA's] decision is that the requirement will be imposed on, or will continue to apply to, the institution or (in the case of a requirement relating to a class) any of the institutions in the class.

(9) A notice given under subsection (5) must inform the recipient if the recipient has a right to refer the matter to the Tribunal.

Textual Amendments

F2 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F11 Ss. 313BA-313BE inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 4

313BB Revocation of requirements: applications by institutions U.K.

(1) This section applies where the [F3 FCA] has imposed a requirement on an institution or a class of institutions under section 313A.

(2) The institution or any of the institutions in the class may apply to the [F3 FCA] for the revocation of the requirement.

(3) The [F3 FCA] must decide whether to revoke the requirement.

(4) In the case of a requirement imposed on a class of institutions, the [F3 FCA] may decide to revoke it in relation to—

(a) the class;

(b) the class apart from one or more specified members of it; or

(c) one or more specified members of the class only.

(5) The [F3 FCA] must give a warning notice if—

(a) in the case of a requirement imposed on an institution, the [F3 FCA] proposes not to revoke the requirement, or

(b) in the case of a requirement imposed on a class, the [F3 FCA] proposes to make a decision which would have the effect that the requirement continues to apply to the applicant (whether or not it would have the effect that it continues to apply to other members of the class).

(6) The warning notice must be given to—

(a) the applicant, and

(b) the issuer of the financial instrument in question (if any).

Textual Amendments

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F11 Ss. 313BA-313BE inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 4

313BC Decisions on applications for revocation by institutions U.K.

(1) This section applies where, having considered any representations made in response to a warning notice, the [F3 FCA] has decided whether to grant an application for revocation made under section 313BB.

(2) The [F3 FCA] must give written notice in accordance with subsection (3) if—

(a) in the case of a requirement imposed on an institution, the [F3 FCA] decides to revoke the requirement, or

(b) in the case of a requirement imposed on a class, the [F3 FCA] makes a decision which has the effect that the requirement will no longer apply to the applicant (whether or not it will continue to apply to other members of the class).

(3) The written notice must be given to—

(a) the applicant, and

(b) the issuer of the financial instrument in question (if any).

(4) If the [F3 FCA] is required to give written notice under subsection (2) in relation to a requirement imposed on a class, the [F3 FCA] must also give notice of its decision by publishing it by means of a regulatory information service.

(5) The [F3 FCA] must give a decision notice in accordance with subsection (6) if—

(a) in the case of a requirement imposed on an institution, the [F3 FCA] decides not to revoke the requirement, or

(b) in the case of a requirement imposed on a class, the [F3 FCA] makes a decision which has the effect that the requirement will continue to apply to the applicant (whether or not it will continue to apply to other members of the class).

(6) The decision notice must be given to—

(a) the applicant, and

(b) the issuer of the financial instrument in question (if any).

(7) If the [F3 FCA] is required to give a decision notice in relation to a requirement imposed on a class, the [F3 FCA] must also give notice of its decision by publishing it by means of a regulatory information service.

(8) If the [F3 FCA] gives a decision notice, the recipient may refer the matter to the Tribunal.

Textual Amendments

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F11 Ss. 313BA-313BE inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 4

313BD Revocation of requirements: applications by issuers U.K.

(1) This section applies where the [F3 FCA] has imposed a requirement on an institution or a class of institutions under section 313A.

(2) The issuer of the financial instrument may apply to the [F3 FCA] for the revocation of the requirement.

(3) The [F3 FCA] must decide whether to revoke the requirement.

(4) In the case of a requirement imposed on a class of institutions, the [F3 FCA] may decide to revoke it in relation to—

(a) the class;

(b) the class apart from one or more specified members of it; or

(c) one or more specified members of the class only.

(5) The [F3 FCA] must give the issuer a warning notice if—

(a) in the case of a requirement imposed on an institution, the [F3 FCA] proposes not to revoke the requirement, or

(b) in the case of a requirement imposed on a class, the [F3 FCA] proposes not to revoke the requirement or to revoke it in relation to—

(i) the class apart from one or more specified members of it, or

(ii) one or more specified members of the class only.

Textual Amendments

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F11 Ss. 313BA-313BE inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 4

313BE Decisions on applications for revocation by issuers U.K.

(1) This section applies where, having considered any representations made in response to a warning notice, the [F3 FCA] has decided whether to grant an application for revocation made under section 313BD.

(2) The [F3 FCA] must give written notice to the issuer if the [F3 FCA] decides to revoke the requirement.

(3) If the [F3 FCA] is required to give written notice under subsection (2) in relation to a requirement imposed on a class, the [F3 FCA] must also give notice of its decision by publishing it by means of a regulatory information service.

(4) The [F3 FCA] must give the issuer a decision notice if—

(a) in the case of a requirement imposed on an institution, the [F3 FCA] decides not to revoke the requirement, or

(b) in the case of a requirement imposed on a class, the [F3 FCA] decides not to revoke the requirement or makes a decision to revoke the requirement in relation to—

(i) the class apart from one or more specified members of it, or

(ii) one or more specified members of the class only.

(5) If the [F3 FCA] is required to give a decision notice under subsection (4)(b), it must also give notice of its decision by publishing it by means of a regulatory information service.

(6) If the [F3 FCA] gives a decision notice under subsection (4), the issuer may refer the matter to the Tribunal.]

Textual Amendments

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F11 Ss. 313BA-313BE inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 4

313C Notification in relation to suspension or removal of a financial instrument from trading U.K.

(1) If the [F3 FCA] exercises the power under section 313A(1) in relation to a financial instrument traded on a regulated market, it must as soon as reasonably practicable—

(a) publish its decision in such manner as it considers appropriate [F12 unless the decision has already been published under section 313B(2)(b)], and

(b) inform [F13 ESMA and ] the competent authorities of all other EEA States of its decision.

(2) If the [F3 FCA] receives notice from a recognised investment exchange that the exchange has suspended or removed a financial instrument from trading on a regulated market operated by it, the [F3 FCA] must inform the competent authorities of all other EEA States of the action taken by the exchange.

(3) Subsections (4) and (5) apply if the [F3 FCA] receives notice from the competent authority of another EEA State that that authority, pursuant to Article 41.2 of the markets in financial instruments directive—

(a) has required the suspension of a financial instrument from trading, or

(b) has required the removal of a financial instrument from trading.

(4) In the case of a notice under subsection (3)(a), the [F3 FCA]—

(a) must require each recognised investment exchange to suspend the instrument from trading on any regulated market operated by the exchange, and

(b) must require each institution operating a multilateral trading facility to suspend the instrument from trading on that facility,

unless such a step would be likely to cause significant damage to the interests of investors or the orderly functioning of the financial markets.

(5) In the case of a notice under subsection (3)(b), the [F3 FCA]—

(a) must require each recognised investment exchange to remove the instrument from trading on any regulated market operated by the exchange, and

(b) must require each institution operating a multilateral trading facility to remove the instrument from trading on that facility,

unless such a step would be likely to cause significant damage to the interests of investors or the orderly functioning of the financial markets.

(6) ”Competent authority” has the meaning given in Article 4.1.22 of the markets in financial instruments directive.

Textual Amendments

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F12 Words in s. 313C(1)(a) inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 5

F13 Words in s. 313C(1)(b) inserted (16.4.2012) by The Financial Services (Omnibus 1 Directive) Regulations 2012 (S.I. 2012/916), regs. 1, 2(12)

313D Interpretation of Part 18A U.K.

In this Part—

• “financial instrument” has the meaning given in Article 4.1.17 of the markets in financial instruments directive;

• “institution” means—

  (a)

  a recognised investment exchange, other than an overseas investment exchange (within the meaning of Part 18);

  (b)

  an investment firm;

  (c)

  a credit institution authorised under the [F14 capital requirements directive], when carrying on investment services and activities; or

  (d)

  an institution which would satisfy the requirements for authorisation as a credit institution under that directive if it had its registered office (or if it does not have a registered office, its head office) in an EEA State,

  but does not include an EEA firm qualifying for authorisation under Schedule 3;

• “issuer”, in relation to a financial instrument, means the person who issued the instrument;

• “multilateral trading facility” has the meaning given in Article 4.1.15 of the markets in financial instruments directive;

• • [F15 “regulated information” has the meaning given in Article 2(1)(k) of the transparency obligations directive (as defined in section 103 of this Act);]

• • [F16 “regulatory information service” means—

    (a)

    a service approved by the [F3 FCA] to disseminate regulated information in accordance with rules made under section 89A of this Act, or

    (b)

    a service established in an EEA state other than the United Kingdom which is used for the dissemination of regulated information for the purposes of Article 21 of the transparency obligations directive;]

• “regulated market” has the meaning given in Article 4.1.14 of the markets in financial instruments directive.]

Textual Amendments

F3 Word in Pt. 18A substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 36(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F14 Words in s. 313D substituted (1.1.2014) by The Capital Requirements Regulations 2013 (S.I. 2013/3115), reg. 1(2), Sch. 2 para. 19

F15 S. 313D: definition of "regulated information" inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 6

F16 S. 313D: definition of "regulatory information service" inserted (9.4.2010) by The Financial Services and Markets Act 2000 (Amendments to Part 18A etc.) Regulations 2010 (S.I. 2010/1193), reg. 6