Part I The Regulator
Inquiries
14 Cases in which the Treasury may arrange independent inquiries.
1
This section applies in two cases.
2
The first is where it appears to the Treasury that—
a
events have occurred in relation to—
i
a collective investment scheme, or
ii
a person who is, or was at the time of the events, carrying on a regulated activity (whether or not as an authorised person),
which posed or could have posed a grave risk to the financial system or caused or risked causing significant damage to the interests of consumers; and
b
those events might not have occurred, or the risk or damage might have been reduced, but for a serious failure in—
i
the system established by this Act for the regulation of such schemes or of such persons and their activities; or
ii
the operation of that system.
3
The second is where it appears to the Treasury that—
a
events have occurred in relation to listed securities or an issuer of listed securities which caused or could have caused significant damage to holders of listed securities; and
b
those events might not have occurred but for a serious failure in the regulatory system established by Part VI or in its operation.
4
If the Treasury consider that it is in the public interest that there should be an independent inquiry into the events and the circumstances surrounding them, they may arrange for an inquiry to be held under section 15.
C15
“Consumers” means persons—
a
who are consumers for the purposes of section 138; or
b
who, in relation to regulated activities carried on otherwise than by authorised persons, would be consumers for those purposes if the activities were carried on by authorised persons.
6
“The financial system” has the same meaning as in section 3.
7
“Listed securities” means anything which has been admitted to the official list under Part VI.