C1C2Part I Regulation of Investment Business
Pt. I (ss. 1–128): power to modify conferred (prosp.) by Courts and Legal Services Act 1990 (c. 41, SIF 76:1), ss. 89, 124(3), Sch. 14 para. 9(c)
C3Chapter X Information
Chapters III–XI (ss. 7–111): certain functions transferred by S.I. 1990/354, art. 5
C4105 Investigation powers.
1
The powers of the Secretary of State under this section shall be exercisable in any case in which it appears to him that there is good reason to do so for the purpose of investigating the affairs, or any aspect of the affairs, of any person so far as relevant to any investment business which he is or was carrying on or appears to the Secretary of State to be or to have been carrying on.
2
Those powers shall not be exercisable for the purpose of investigating the affairs of any exempted person unless he is an appointed representative or the investigation is in respect of investment business in respect of which he is not an exempted person and shall not be exercisable for the purpose of investigating the affairs of a member of a recognised self-regulating organisation or a person certified by a recognised professional body in respect of investment business in the carrying on of which he is subject to its rules unless—
a
that organisation or body has requested the Secretary of State to investigate those affairs; or
b
it appears to him that the organisation or body is unable or unwilling to investigate them in a satisfactory manner.
3
The Secretary of State may require the person whose affairs are to be investigated (“the person under investigation") or any connected person to attend before the Secretary of State at a specified time and place and answer questions or otherwise furnish information with respect to any matter relevant to the investigation.
4
The Secretary of State may require the person under investigation or any other person to produce at a specified time and place any specified documents which appear to the Secretary of State to relate to any matter relevant to the investigation; and—
a
if any such documents are produced, the Secretary of State may take copies or extracts from them or require the person producing them or any connected person to provide an explanation of any of them;
b
if any such documents are not produced, the Secretary of State may require the person who was required to produce them to state, to the best of his knowledge and belief, where they are.
C55
A statement by a person in compliance with a requirement imposed by virtue of this section may be used in evidence against him.
C5F25A
However, in criminal proceedings in which that person is charged with an offence to which this subsection applies—
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, 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.
C55B
Subsection (5A) above applies to any offence other than—
a
an offence under subsection (10) or section 200(1) below;
b
an offence under section 5 of the M1Perjury Act 1911 (false statements made otherwise than on oath);
c
an offence under section 44(2) of the M2Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath); or
d
an offence under Article 10 of the M3Perjury (Northern Ireland) Order 1979 (false statements made otherwise than on oath).
6
A person shall not under this section be required to disclose any information or produce any document which he would be entitled to refuse to disclose or produce on grounds of legal professional privilege in proceedings in the High Court or on grounds of confidentiality as between client and professional legal adviser in proceedings in the Court of Session except that a lawyer may be required to furnish the name and address of his client.
7
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8
Where a person claims a lien on a document its production under this section shall be without prejudice to the lien.
9
In this section—
“connected person”, in relation to any other person means—
a
any person who is or was that other person’s partner, employee, agent, appointed representative, banker, auditor or solicitor; and
b
where the other person is a body corporate, any person who is or was a director, secretary or controller of that body corporate or of another body corporate of which it is or was a subsidiary; and
c
where the other person is an unincorporated association, any person who is or was a member of the governing body or an officer or controller of the association; and
d
where the other person is an appointed representative, any person who is or was his principal; and
e
where the other person is the person under investigation (being a body corporate), any related company of that body corporate and any person who is a connected person in relation to that company;
“documents” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, F4the power to require its production includes power to require the production of a copy of the information in legible form;
“related company”, in relation to a person under investigation (being a body corporate), means any other body corporate which is or at any material time was—
a
a holding company or subsidiary of the person under investigation;
b
a subsidiary of a holding company of that person; or
c
a holding company of a subsidiary of that person,
and whose affairs it is in the Secretary of State’s opinion necessary to investigate for the purpose of investigating the affairs of that person.
10
Any person who without reasonable excuse fails to comply with a requirement imposed on him under this section shall be guilty of an offence and liable on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding the fifth level on the standard scale or to both.
F511
A person who is convicted on a prosecution instituted as a result of an investigation under this section may in the same proceedings be ordered to pay the expenses of the investigation to such extent as may be specified in the order.
There shall be treated as expenses of the investigation, in particular, such reasonable sums as the Secretary of State may determine in respect of general staff costs and overheads.
Pt. I (ss. 1-128) amended (S.) (22.5.2000) by S.I. 2000/121, regs. 1, 37, Sch. 2