§ 237 Leave out Clause 137 and insert —
§ 'Powers of Secretary of State to give directions.
§ . —(1) The powers conferred by this section are exercisable in relation to a recognised UK investment exchange or recognised UK clearing house.
§ (2) Where in any case an exchange or clearing house has not taken action under its default rules —
- (a) if it appears to the Secretary of State that it could take action, he may direct it to do so, and
- (b) if it appears to the Secretary of State that it is proposing to take or may take action, he may direct it not to do so.
§ (3) Before giving such a direction the Secretary of State shall consult the exchange or clearing house in question; and he shall not give a direction unless he is satisfied, in the light of that consultation —
- (a) in the case of a direction to take action, that failure to take action would involve undue risk to investors or other participants in the market, or
- (b) in the case of a direction not to take action, that the taking of action would be premature or otherwise undesirable in the interests of investors or other participants in the market.
§ (4) A direction shall specify the grounds on which it is given.
§ (5) A direction not to take action may be expressed to have effect until the giving of a further direction (which may be a direction to take action or simply revoking the earlier direction).
§ (6) No direction shall be given not to take action if, in relation to the person in question —
- (a) a bankruptcy order or an award of sequestration of his estate has been made, or an interim receiver or interim trustee has been appointed, or
- (b) a winding up order has been made, a resolution for voluntary winding up has been passed or an administrator, administrative receiver or provisional liquidator has been appointed;
§ (7) Where an exchange or clearing house has taken or been directed to take action under its default rules, the Secretary of State may direct it to do or not do such things (being things which it has power to do under its default rules) as are specified in the direction.
§ The Secretary of State shall not give such a direction unless he is satisfied that it will not impede or frustrate the proper and efficient conduct of the default proceedings.
§ (8) A direction under this section is enforceable, on the application of the Secretary of State, by injunction or, in Scotland, by an order under section 45 of the Court of Session Act 1988; and where an exchange or clearing house has not complied with a direction, the court may make such order as it thinks fit for restoring the position to what it would have been if the direction had been complied with.
§ Application to determine whether default proceedings to be
taken.
§ . —(1) Where there has been made or passed in relation to a member or designated non-member of a recognised investment exchange or a member of a recognised clearing house —
- (a) a bankruptcy order or an award of sequestration of his estate, or an order appointing an interim receiver of his property, or
- (b) an administration or winding up order, a resolution for voluntary winding up or an order appointing a provisional liquidator,
§ (2) The application shall specify the exchange or clearing house concerned and the grounds on which it is made.
§ (3) On receipt of the application the Secretary of State shall notify the exchange or clearing house, and unless within three business days after the day on which the notice is received the exchange or clearing house —
- (a) takes action under its default rules, or
- (b) notifies the Secretary of State that it proposes to do so forthwith,
§ For this purpose a "business day" means any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in any part of the United Kingdom under the Banking and Financial Dealings Act 1971.
1062§ (4) The provisions of sections 129 to 136 are not disapplied if before the end of the period mentioned in subsection (3) the Secretary of State gives the exchange or clearing house a direction under section (Powers of Secretary of State to give directions)(2)(a) (direction to take action under default rules).
§ No such direction may be given after the end of that period.
§ (5) If the exchange or clearing house notifies the Secretary of State that it proposes to take action under its default rules forthwith, it shall do so; and that duty is enforceable, on the application of the Secretary of State, by injunction or, in Scotland, by an order under section 45 of the Court of Session Act 1988.'.
§ 238 Clause 138, page 141, line 34, leave out 'Part' and insert 'section'.
§ 239 Page 141, line 40, leave out 'Part' and insert 'section'.
§
240 Page 141, line 42, at end insert—
(3) The Secretary of State may —
make an order under that section resuming all functions under this Part which have been transferred to the agency.This does not affect his power to make an order under subsection (1) or (2) of that section with respect to such functions.'.
§
241 Clause 139, page 142, line 17, at end insert—
'(4) The references in sections 119 and 121 of the Financial Services Act 1986 (competition) to what is necessary for the protection of investors shall be construed as including references to what is necessary for the purposes of this Part.
(5) Section 204 of the Financial Services Act 1986 (service of notices) applies in relation to a notice, direction or other document required or authorised by or under this Part to be given to or served on any person other than the Secretary of State.'.
§ Lord TrefgarneMy Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 237 to 241. These amendments have already been spoken to.
Moved, That the House do agree with the Commons in the said amendments. —(Lord Trefgarne.)
On Question, Motion agreed to.