Part XVIIIRecognised investment exchanges, clearing houses , CSDs and other parties

F1CHAPTER 2APerformance of functions of recognised bodies

Rules of conduct

309Z1Rules of conduct

(1)

If it appears to the appropriate regulator to be necessary or expedient for the purposes of advancing a relevant objective, the appropriate regulator may make rules about the conduct of the following persons in relation to the performance by them of qualifying functions—

(a)

persons in relation to whom the appropriate regulator has given its approval under section 309G (“Part 18 approved persons”);

(b)

directors of relevant recognised bodies;

(c)

employees of relevant recognised bodies.

(2)

Rules under subsection (1) may include provision requiring a relevant recognised body to—

(a)

notify persons mentioned in subsection (1) of the rules that apply to them;

(b)

take specified steps to secure that such persons understand how those rules apply in relation to them.

(3)

Rules under subsection (1) may include provision requiring a relevant recognised body to notify the appropriate regulator if the body takes specified disciplinary action in relation to a person mentioned in subsection (1).

(4)

In this section—

“qualifying function” means a function relating to the carrying on of activities by the following—

(a)

in the case of a Part 18 approved person, the relevant recognised body on whose application approval was given;

(b)

in the case of a director or employee of a relevant recognised body, who is not a Part 18 approved person, the relevant recognised body;

“relevant objective” means—

(a)

if the appropriate regulator is the FCA, any of its operational objectives;

(b)

if the appropriate regulator is the Bank of England, the Financial Stability Objective.

“specified” means specified in the rules.