C1 Part VIII Penalties for Market Abuse

Annotations:
Modifications etc. (not altering text)

The code

121 Codes: procedure.

1

Before issuing a code under section 119, the F2FCA must publish a draft of the proposed code in the way appearing to the F2FCA to be best calculated to bring it to the attention of the public.

2

The draft must be accompanied by—

a

a cost benefit analysis; and

b

notice that representations about the proposal may be made to the F2FCA within a specified time.

3

Before issuing the proposed code, the F2FCA must have regard to any representations made to it in accordance with subsection (2)(b).

4

If the F2FCA issues the proposed code it must publish an account, in general terms, of—

a

the representations made to it in accordance with subsection (2)(b); and

b

its response to them.

5

If the code differs from the draft published under subsection (1) in a way which is, in the opinion of the F2FCA, significant—

a

the F2FCA must (in addition to complying with subsection (4)) publish details of the difference; and

b

those details must be accompanied by a cost benefit analysis.

6

Subsections (1) to (5) do not apply if the F2FCA considers that there is an urgent need to publish the code.

7

Neither subsection (2)(a) nor subsection (5)(b) applies if the F2FCA considers—

a

that, making the appropriate comparison, there will be no increase in costs; or

b

that, making that comparison, there will be an increase in costs but the increase will be of minimal significance.

8

The F2FCA may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1).

9

This section also applies to a proposal to alter or replace a code.

F110

Cost benefit analysis” means—

a

an analysis of the costs together with an analysis of the benefits that will arise—

i

if the proposed code is issued, or

ii

if subsection (5)(b) applies, from the code that has been issued, and

b

subject to subsection (10A), an estimate of those costs and of those benefits.

10A

If, in the opinion of the FCA—

a

the costs or benefits referred to in subsection (10) cannot reasonably be estimated, or

b

it is not reasonably practicable to produce an estimate,

the cost benefit analysis need not estimate them, but must include a statement of the FCA's opinion and an explanation of it.

11

“The appropriate comparison” means—

a

in relation to subsection (2)(a), a comparison between the overall position if the code is issued and the overall position if it is not issued;

b

in relation to subsection (5)(b), a comparison between the overall position after the issuing of the code and the overall position before it was issued.