Modifications etc. (not altering text)
89.—(1) The powers conferred by this Article are exercisable in relation to a recognised UK investment exchange or recognised UK clearing house.
(2) Where in any case an exchange or clearing house has not taken action under its default rules—3832/2—O.I.C.[Companies No. 2 (NI) Order 1990]
(a)if it appears to the[F1 Authority] that it could take action,[F1 the Authority] may direct it to do so, and
(b)if it appears to the[F1 Authority] that it is proposing to take or may take action,[F1 the Authority] may direct it not to do so.
(3) Before giving such a direction the[F1 Authority] shall consult the exchange or clearing house in question; and[F1 it] shall not give a direction unless[F1 it] is satisfied, in the light of that consultation—
(a)in the case of a direction to take action, that failure to take action would involve undue risk to investors or other participants in the market, or
(b)in the case of a direction not to take action, that the taking of action would be premature or otherwise undesirable in the interests of investors or other participants in the market.
(4) A direction shall specify the grounds on which it is given.
(5) A direction not to take action may be expressed to have effect until the giving of a further direction (which may be a direction to take action or simply revoking the earlier direction).
(6) No direction shall be given not to take action if, in relation to the person in question—
(a)a bankruptcy order has been made, or
(b)a winding up order has been made, a resolution for voluntary winding up has been passed or an administrator, administrative receiver or provisional liquidator has been appointed;
and any previous direction not to take action shall cease to have effect on the making or passing of any such order, appointment or resolution.
(7) Where an exchange or clearing house has taken or been directed to take action under its default rules, the[F1 Authority] may direct it to do or not to do such things (being things which it has power to do under its default rules) as are specified in the direction.
The[F1 Authority] shall not give such a direction unless[F1 it is satisfied that the direction] will not impede or frustrate the proper and efficient conduct of the default proceedings.
(8) A direction under this Article is enforceable, on the application of the[F1 Authority], by injunction; and where an exchange or clearing house has not complied with a direction, the court may make such order as it thinks fit for restoring the position to what it would have been if the direction had been complied with.
F1SI 2001/3649