REC 4.2D Suspension and removal of financial instruments from trading

1. (1)

   1Under section 313A of the Act, the FSA may for the purpose of protecting:

   1. (a)

      the interests of investors; or

   2. (b)

      the orderly functioning of the financial markets;

   require a UK RIE to suspend or remove a financial instrument from trading.

2. (2)

   If the FSA exercises this power, the UK RIE concerned may refer the matter to the Tribunal.

The procedure the FSA will follow if it exercises its power to require a UK RIE to suspend or remove a financial instrument3 from trading is set out in sections 313B to 313BE of the Act.3 The FSA's internal arrangements provide for decisions to exercise this power to be taken at an appropriately senior level. If the FSA exercises this power, the UK RIE concerned and the issuer (if any) of the relevant financial instrument may refer the matter to the Tribunal(see EG 2.39)2.2

Under section 313C(1) of the Act, if the FSA exercises its power to require a UK RIE to suspend or remove a financial instrument from trading, it must as soon as reasonably practicable:

1. (1)

   publish its decision in such manner as it considers appropriate, unless the decision has already been published under section 313B(2)(b) of the Act; and3

2. (2)

   inform ESMA and4 the competent authorities of all other EEA States of its decision.

Under section 313C(2) of the Act, if the FSA receives notice from a UK RIE that the UK RIE has suspended or removed a financial instrument from trading on a regulated market operated by it, the FSA must inform the competent authorities of all other EEA States of the action taken by the UK RIE.

Under sections 313C(3) and (4) of the Act, if the FSA receives notice from the competent authority of another EEA State that that authority, pursuant to Article 41.2 of MiFID has required the suspension of a financial instrument from trading, the FSA must require each UK RIE to suspend the instrument from trading on any regulated market or multilateral trading facility operated by the UK RIE.

Under sections 313C(3) and (5) of the Act, if the FSA receives notice from the competent authority of another EEA State that that authority, pursuant to Article 41.2 of MiFID has required the removal of a financial instrument from trading, the FSA must require each UK RIE to remove the instrument from trading on any regulated market or multilateral trading facility operated by the UK RIE.