SCHEDULE 8Investors in licensed providers

Continuing notification requirements

I13

1

This paragraph applies where—

a

a person takes, or proposes to take, a step to acquire such an interest as would result in the person becoming a non-solicitor investor in a licensed provider,

b

a non-solicitor investor takes, or proposes to take, a step which would—

i

significantly change the investor's interest in the licensed provider, or

ii

acquire an additional kind of interest in the licensed provider, or

c

a person becomes a non-solicitor investor in a licensed provider—

i

as a new investor, or

ii

because the person, having ceased to be entitled to practise as mentioned in section 67(6)(b) (while remaining as an investor), comes within the definition there.

2

In a case falling within sub-paragraph (1)(a) or (b), the licensed provider must (as soon as practicable) notify the approved regulator of the proposal including by giving it—

a

the name and other details of the person concerned,

b

the details of the interest concerned.

3

In a case falling within sub-paragraph (1)(c)(i), the licensed provider must (as soon as practicable) notify the approved regulator of the acquisition including by giving it the name and other details of the investor.

4

In a case falling within sub-paragraph (1)(c)(ii), the licensed provider must (as soon as practicable) notify the approved regulator of the fact.

5

Sub-paragraph (3) does not apply where sub-paragraph (2) has been complied with in relation to the acquisition.

6

It is an offence for a person to fail to comply with a requirement imposed on the person by sub-paragraph (2), (3) or (4).

7

A person who commits an offence under sub-paragraph (6) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

8

It is a defence for a person prosecuted for an offence under sub-paragraph (6) to show that at the relevant time the person had no knowledge, and could not reasonably be expected to have knowledge, of the information in question.