[[F770,F771 (1)If the [F712 FCAF712] considers that—
(a)an issuer of listed securities, or
(b)an applicant for listing,
has contravened any provision of listing rules, it may impose on him a penalty of such amount as it considers appropriate.
F772 (1ZA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F771]
F773 (1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F774 (1B)If the [F712 FCAF712] considers—
(a)that a person has contravened—
(i)a provision of [F775 qualifying transparency legislationF775] , or
(ii)a provision of corporate governance rules, or
(b)that a person on whom a requirement has been imposed under section 89L (power to suspend or prohibit trading of securities in case of infringement of applicable transparency obligation), has contravened that requirement,
it may impose on the person a penalty of such amount as it considers appropriate.F774]
(2) If, in the case of a contravention [F776 by a person F776] referred to in subsection [F777 (1), F778 ... F779 ... or [F780 (1B)(a)(ii) or (b) F780,F777]] [F781 (“P”) F781] , the [F712 FCA F712] considers that [F782 another person F782] who was at the material time a director of [F783 P F783] was knowingly concerned in the contravention, it may impose upon him a penalty of such amount as it considers appropriate. F770]
[F784 (2A)If—
(a)a person has contravened a provision mentioned in subsection (1B)(a)(i), and
(b) the FCA considers that another person (“A”), who was at the material time a relevant officer of the person, was knowingly concerned in the contravention,
the FCA may impose upon A a penalty of such amount as it considers appropriate.
(2B) In subsection (2A) “relevant officer” of a person means—
(a)a director or other similar officer of the person, or
(b)if the affairs of the person are managed by its members, a member of the person.F784]
(3)If the [F712FCAF712] is entitled to impose a penalty on a person under this section in respect of a particular matter it may, instead of imposing a penalty on him in respect of that matter, publish a statement censuring him.
(4)Nothing in this section prevents the [F712FCAF712] from taking any other steps which it has power to take under this Part.
(5)A penalty under this section is payable to the [F712FCAF712] .
(6)The [F712FCAF712] may not take action against a person under this section after the end of the period of [F7853 yearsF785] beginning with the first day on which it knew of the contravention unless proceedings against that person, in respect of the contravention, were begun before the end of that period.
(7)For the purposes of subsection (6)—
(a)the [F712FCAF712] is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred; and
(b)proceedings against a person in respect of a contravention are to be treated as begun when a warning notice is given to him under section 92.
184.This section gives the competent authority a power to impose financial penalties on issuers who have breached the listing rules. Under the FS Act 1986, the competent authority can issue private or public censures or suspend or cancel the listing of securities. The additional power conferred by this section is intended to provide further flexibility in this area. The competent authority will also be able to impose penalties upon present and former directors (which is defined in section 417 to include shadow directors) who were knowingly involved in a breach of the listing rules. However, it may not impose a penalty later than two years after it first became aware of the breach.
185.Section 92 sets out the procedures the competent authority must follow when imposing a penalty. The competent authority is also required to publish a statement of its policy as regards penalties (see sections 93 and 94). Before issuing or altering such a statement, the competent authority must consult on its proposals.