Part VIII

Penalties for Market Abuse

The code

Codes: procedure
121
1
Before issuing a code under section 119, the Authority must publish a draft of the proposed code in the way appearing to the Authority 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 Authority within a specified time.
3
Before issuing the proposed code, the Authority must have regard to any representations made to it in accordance with subsection (2)(b).
4
If the Authority 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 Authority, significant—
a
the Authority 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 Authority considers that there is an urgent need to publish the code.
7
Neither subsection (2)(a) nor subsection (5)(b) applies if the Authority 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 Authority 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.
10
“Cost benefit analysis” means an estimate of the costs together with an analysis of the benefits that will arise—
a
if the proposed code is issued; or
b
if subsection (5)(b) applies, from the code that has been issued.
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.