Part XVIIIU.K. [F1Recognised investment exchanges, clearing houses [F2, CSDs and other parties]]

(1)Before giving a direction under section 296 [F3or 296A], or making a revocation order under section [F4297(1B), (2),] [F5(2A) or (2D)], [F6the appropriate regulator] must—

(a)give written notice of its intention to do so to the recognised body concerned;

F7(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)A notice under subsection (1) must—

(a)state why [F9the appropriate regulator] intends to give the direction or make the order; and

(b)draw attention to the right to make representations conferred by subsection (3).

(3)Before the end of the period for making representations—

(a)the recognised body,

F10(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

may make representations to [F12the appropriate regulator].

[F13(4)The period for making representations is such period as is specified in the notice (which may, in any particular case, be extended by the appropriate regulator).]

(5)In deciding whether to—

(a)give a direction, or

(b)make a revocation order,

[F14the appropriate regulator] must have regard to any representations made in accordance with subsection (3).

(6)When [F15the appropriate regulator] has decided whether to give a direction under section 296 [F16or 296A] or to make the proposed revocation order, it must—

(a)give the recognised body written notice of its decision; F17... [F18and

(aa)in the case of a direction under section 296 given to a recognised CSD F19... or a revocation order under section 297(1B), give the recognised CSD F19... reasons for its decision.]

F17(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F20(6A)If the appropriate regulator—

(a)gives a direction under section 296 to a recognised body because it has failed, or is likely to fail, to comply with an obligation imposed on it by or under Article 4 or 15 of the SFT regulation;

[F21(aa)gives any other direction under section 296 to a recognised CSD;

F22(ab). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ac)makes a revocation order under section 297(1B);]

(b)makes a revocation order under section 297(2A)(c) because a recognised body has failed, or is likely to fail, to comply with an obligation imposed on it by or under Article 4 or 15 of the SFT regulation; or

(c)makes a revocation order under section 297(2D),

the body concerned may refer the matter to the Tribunal.]

(7)If [F23the appropriate regulator] [F24reasonably considers it necessary] to do so, it may give a direction under section 296 [F25or 296A]—

(a)without following the procedure set out in this section; or

(b)if [F23the appropriate regulator] has begun to follow that procedure, regardless of whether the period for making representations has expired.

[F26(7A)Subsection (7) does not apply in relation to a direction given to a recognised CSD F27... under section 296.

F28(7B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(8)If [F29the appropriate regulator] has, in relation to a particular matter, followed the procedure set out in subsections (1) to (5), it need not follow it again if, in relation to that matter, it decides to take action other than that specified in its notice under subsection (1).

F30(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .