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

F1CHAPTER 2APerformance of functions of recognised bodies

Disciplinary action by appropriate regulator

309Z3Meaning of “misconduct”

(1)

For the purposes of section 309Z2, a person is guilty of misconduct if any of conditions A to C is met.

(2)

Condition A is that—

(a)

the person has at any time failed to comply with rules made under section 309Z1, and

(b)

at that time the person was—

(i)

a Part 18 approved person,

(ii)

an employee of a relevant recognised body, or

(iii)

a director of a relevant recognised body.

(3)

Condition B is that—

(a)

the person has at any time after the passing of this Act been knowingly concerned in a contravention by a relevant recognised body of a relevant requirement, and

(b)

at that time the person was—

(i)

a Part 18 approved person in relation to the relevant recognised body,

(ii)

an employee of the relevant recognised body, or

(iii)

a director of the relevant recognised body.

(4)

Condition C is that—

(a)

the person has at any time been a Part 18 approved person in relation to a relevant recognised body,

(b)

at that time there was, or continued to be, a contravention by the body of a relevant requirement,

(c)

the person was at that time responsible for the management of any of the body’s activities in relation to which the contravention occurred, and

(d)

the person did not take such steps as a person in that position could reasonably be expected to take to avoid the contravention occurring or continuing.

(5)

In this section—

“Part 18 approved person”—

(a)

means a person in relation to whom an approval is given under section 309G, and

(b)

in relation to a relevant recognised body, means a person in relation to whom such approval is given on the application of the relevant recognised body;

“relevant requirement” has the meaning given by section 312E(2) and (3).