New section 165B: Safeguards etc in relation to exercise of power under section 165A
208.This section sets out the procedural safeguards which will apply to the exercise of the power in new section 165A. Under subsection (1) the FSA must give a person on whom it proposes to impose a requirement written notice in advance.
209.Under subsection (2) the written notice must give the FSA’s reasons for proposing to impose the requirement; and specify a reasonable timescale within which the person may make representations to the FSA. Once this period has expired, the FSA must, under subsection (3) decide within a reasonable period whether the requirement should be imposed.
210.Subsection (4) provides that subsections (1), (2) and (3) do not apply where the FSA is satisfied that it is necessary for the information to be provided urgently.
211.Subsection (5) requires the FSA to give its reasons when it imposes a requirement under this section.
212.Subsection (6) requires the FSA to prepare a statement of its policy with respect to the exercise of the power conferred by section 165A. Under subsections (7) and (8) this statement requires the approval of the Treasury and must be published. Under subsection (9), this power may not be exercised before the statement has been approved and published.
