Part XVIII

Recognised investment exchanges, clearing houses , CSDs and other parties
CHAPTER 2A

Performance of functions of recognised bodies

Disciplinary action by appropriate regulator

Power to take disciplinary action for misconduct
309Z2
1
Subsection
(2)
applies if—
a
it appears to the appropriate regulator that a person is guilty of misconduct (see section
309Z3
), and
b
the appropriate regulator is satisfied that it is appropriate in all the circumstances to take action against the person.
2
The appropriate regulator may do one or more of the following—
a
publish a statement of the person’s misconduct;
b
impose a penalty on the person of such amount as the appropriate regulator considers appropriate;
c
suspend an approval of the performance of a function by the person under section
309G
for such period as the appropriate regulator considers appropriate;
d
impose such conditions as the appropriate regulator considers appropriate in relation to such an approval for such period as the appropriate regulator considers appropriate;
e
limit the period for which such an approval is to have effect.
3
Where the appropriate regulator takes action described in subsection
(2)(c)
,
(d)
or
(e)
—
a
it may not suspend an approval for more than 2 years;
b
it may not impose conditions which have effect for more than 2 years;
c
it may impose a condition so as to, among other things, require a person to take, or refrain from taking, specified action;
d
it may impose a suspension, condition or limitation that has effect in relation to part of a function.
4
The appropriate regulator that has taken action described in subsection
(2)(c)
,
(d)
or
(e)
may (at any time)—
a
withdraw a suspension, condition or limitation;
b
vary a suspension or condition so as to reduce the period for which it has effect or otherwise to limit its effect;
c
vary a limitation so as to increase the period for which the approval is to have effect.
5
The appropriate regulator may not take action under this section after the end of the period of 6 years beginning with the first day on which the appropriate regulator knew of the misconduct unless, before the end of that period, it gave a warning notice to the person concerned under section
309Z4
.
6
For the purposes of subsection
(5)
, the appropriate regulator is to be treated as knowing of misconduct if it has information from which the misconduct can reasonably be inferred.
7
When a suspension is in force under subsection
(2)(c)
in relation to part of a function, the references in section
309G
and
309U
to the performance of a function include the performance of part of a function.
8
If at any time a condition imposed under subsection
(2)(d)
is contravened, the approval in relation to the person concerned is to be treated for the purposes of sections
309G
and
309U
as if it had been withdrawn at that time.
Pt. 18 applied in part (with modifications) (12.12.2011) by The Recognised Auction Platforms Regulations 2011 (S.I. 2011/2699), reg. 7, Sch. 2 (as amended (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 37 (with regs. 7(4), 9(1)))
Pt. 18 heading substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 2(8) (with regs. 7(4), 9(1))
Words in Pt. 18 heading substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 18(2), 86(3); S.I. 2023/779, reg. 4(m)
Pt. 18 Ch. 2A inserted (29.6.2023 for specified purposes) by Financial Services and Markets Act 2023 (c. 29), s. 86(1)(e), Sch. 10 para. 1