Article 12 Interpretation

(1)

This Part applies to an instrument which contains—

(a)

a statement or code which the Authority proposes to make under section 64 (conduct expected of approved persons);

(b)

a statement of policy which the Authority proposes to issue under section 69 (penalties for misconduct of approved persons);

(c)

a statement of policy which the Authority (in its capacity as the competent authority) proposes to issue under section 93 (penalties for breach of listing rules);

(d)

a code which the Authority proposes to issue under section 119 (guidance on market abuse);

(e)

a statement of policy which the Authority proposes to issue under section 124 (penalties for market abuse);

(f)

rules or guidance which the Authority proposes to make or issue to which the procedure set out in section 155 would otherwise apply;

(g)

a statement of policy which the Authority proposes to issue under section 210 (penalties imposed under Part XIV);

(h)

a direction which the Authority proposes to give under section 316 or 318 (Lloyd's);

(i)

a direction which the Authority proposes to give under section 328(1) (members of the professions);

(j)

a statement of procedure which the Authority proposes to issue under section 395 (giving of notices);

(k)

a complaints scheme which the Authority proposes to make under paragraph 7 of Schedule 1.

(2)

In this Part, the “relevant consultation requirements” in relation to an instrument are the procedural requirements set out in the Act with regard to—

(a)

the publication of the provisions which it is proposed to include in the instrument; and

(b)

the necessary items which must accompany any such publication,

which the Authority must satisfy if it proposes to make the instrument in question.

(3)

A “necessary item” is one or more of the following, if required to be published by the relevant consultation requirements—

(a)

a cost benefit analysis;

(b)

an explanation of the purpose of the provisions;

(c)

an explanation of the Authority’s reasons for believing that making the instrument is compatible with its general duties under section 2;

(d)

details of the expected expenditure by reference to which the proposal is made.