Part XVII Collective Investment Schemes
F1CHAPTER 3AAUTHORISED CONTRACTUAL SCHEMES
Powers of intervention
261XDirections
1
The FCA may give a direction under this section if it appears to the FCA that—
a
one or more of the requirements for the making of an authorisation order are no longer satisfied;
b
the operator or depositary of an authorised contractual scheme has contravened, or is likely to contravene, a requirement imposed—
i
by or under this Act; or
ii
by any directly applicable EU regulation or decision made under the UCITS directive;
c
the operator or depositary of such a scheme has, in purported compliance with any such requirement, knowingly or recklessly given the FCA information which is false or misleading in a material particular; or
d
none of paragraphs (a) to (c) applies, but it is desirable to give a direction in order to protect the interests of participants or potential participants in such a scheme.
2
A direction under this section may—
a
require the operator of the scheme to cease the issue or redemption, or both the issue and redemption, of units under the scheme;
b
require the operator and depositary of the scheme to wind it up.
3
If the authorisation order is revoked, the revocation does not affect any direction under this section which is then in force.
4
A direction may be given under this section in relation to a scheme in the case of which the authorisation order has been revoked.
5
If a person contravenes a direction under this section, section 138D applies to the contravention as it applies to a contravention mentioned in that section.
6
The FCA may revoke or vary a direction given under this section, either on its own initiative or on the application of a person to whom the direction was given, if it appears to the FCA—
a
in the case of revocation, that it is no longer necessary for the direction to take effect or continue in force;
b
in the case of variation, that the direction should take effect or continue in force in a different form.
Pt. XVII Ch. 3A inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(12) (with reg. 24)