Regulation 16 Contraventions

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 16(1) substituted by Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) 2001 art. 507(a)
reg. 16(5) substituted by Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) 2001 art. 507(b)
reg. 16(6) revoked by Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) 2001 art. 507(c)

(1)

An authorised person who contravenes regulation 4(1) or, where it applies regulation 4(2), or who contravenes regulation 12, or who assists another person to contravene any of those provisions, shall be treated as having contravened rules made under Chapter V of Part I of the Act or, in the case of a person who is an authorised person by virtue of membership of a recognised self-regulating organisation or certification by a recognised professional body, the rules of that organisation or body.

(2)

A person other than an authorised person who contravenes regulation 4(1) or, where it applies, regulation 4(2), or who contravenes regulation 12, or who assists another person to contravene any of those provisions, shall be guilty of an offence and liable—

(a)

on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both;

(b)

on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding level 5 on the standard scale.

(3)

Without prejudice to any liability under regulation 14, a person shall not be regarded as having contravened regulation 4 by reason only of a prospectus not having fully complied with the requirements of these Regulations as to its form or content.

(4)

Any contravention to which this regulation applies shall be actionable at the suit of a person who suffers loss as a result of the contravention subject to the defences and other incidents applying to actions for breach of statutory duty.

(5)

In this regulation “authorised person” means a person authorised under Chapter III of Part I of the Act and “recognised professional body” and “recognised self-regulating organisation” have the meanings given in section 207(1) of the Act.

(6)

A European institution carrying on home-regulated investment business in the United Kingdom which contravenes regulation 4(1) or, where it applies, 4(2) or which contravenes regulation 12, or which assists another person to contravene any of those provisions, shall be treated for all purposes—

(a)

if it is not a member of a recognised self-regulating organisation, as having contravened rules made under Chapter V of Part 1 of the Act; or

(b)

if it is a member of a recognised self-regulating organisation, as having contravened the rules of that organisation;

and the reference in paragraph (2) to a person other than an authorised person shall be treated as not including a reference to such an institution.