(1)Section 105 of the Financial Services Act 1986 (investigation into affairs of person carrying on investment business) is amended as follows.
(2)Omit subsection (7) (privilege on grounds of banker’s duty of confidentiality).
(3)In subsection (9) (interpretation), in the definition of “documents”, for “references to its production include references to producing” substitute “the power to require its production includes power to require the production of”.
(4)After subsection (10) add—
“(11)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.”.
(5)In section 106 of the [1986 c. 60.] Financial Services Act 1986 (exercise of investigation powers by officer, &c.), after subsection (2) insert—
“(2A)A person shall not by virtue of an authority under this section be required to disclose any information or produce any documents 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 related company,
(b)the person to whom the obligation of confidence is owed is the person under investigation or a related company,
(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 documents has been specifically authorised by the Secretary of State.
In this subsection “documents”, “person under investigation” and “related company” have the same meaning as in section 105.”.