(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 [F1the UK 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 [F2, or by any previous statutory provision,] 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 [F3 in—
(i)the regulatory system established by Part 6 or by any previous statutory provision concerned with the official listing of securities; or
(ii)the operation of that system.]
(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.
[F4(5)Sections 425A and 425B (meaning of “consumers”) apply for the purposes of this section.]
(5A)“Event” does not include any event occurring before 1st December 2001 (but no such limitation applies to the reference in subsection (4) to surrounding circumstances).
(6)F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)“Listed securities” means anything which has been admitted to the official list under Part VI.
Textual Amendments
F1Words in s. 14(2)(a) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), ss. 24(1), 26(1)(g)(l), Sch. 2 para. 6(2)
F2Words in s. 14(2)(b)(i) inserted (7.6.2005) by Inquiries Act 2005 (c. 12), ss. 46(2), 51(1) (with ss. 44, 50); S.I. 2005/1432, art. 2
F3Words in s. 14(3)(b) substituted (7.6.2005) by Inquiries Act 2005 (c. 12), ss. 46(3), 51(1) (with ss. 44, 50); S.I. 2005/1432, art. 2
F4S. 14(5) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), ss. 24(1), 26(1)(g)(l), Sch. 2 para. 6(3)
F5S. 14(6) omitted (8.4.2010) by virtue of Financial Services Act 2010 (c. 28), ss. 24(1), 26(1)(g)(l), Sch. 2 para. 6(4)