Schedule 9: Collective investment schemes authorised in approved countries Part 1: Provisions to be inserted in Chapter 5 of Part 17 of the Financial Services and Markets Act 2000 271M Procedure when suspending recognition
This section sets out the procedure that the FCA must follow when suspending the recognition of a scheme under the OFR and the timelines for the suspension to take effect.
	Section 271M(1)(a)–(c) sets out that a suspension may take place immediately, on a day specified in the written notice or when the matter is no longer open to review. A direction may take effect immediately or on a specified day only if the FCA reasonably considers it necessary.
	Section 271M(3) and (4) set out that the FCA must give written notice to the operator and the trustee or depository of the scheme, if there is a trustee or depositary, setting out the details and reasons for the suspension, the timeline for it taking effect, the reasons for the timeline and the recipient’s right to take the matter to the Upper Tribunal. It also sets out the right for the recipients to make representations to the FCA within a given period. A ‘representation’ provides the recipient of the notice an opportunity to make a case to the FCA as to why the scheme should not be suspended. The notice will advise the recipients of their right to refer the matter to the Upper Tribunal. Section 271M(5) then explains that the FCA may extend the timeline for making representations, as set out in the written notice.
	Section 271M(6) and (7) set out that, depending on the decision by the FCA on the direction after it has considered any representations in accordance with subsection (4)(d), the FCA must give written notice to the scheme operator and, if any, the trustee or depository. If the FCA has decided to give the direction or, if it has been given, and the FCA has not revoked it, the written notice must set out the recipient’s right to refer the matter to the Upper Tribunal and the procedure for doing so. Section 271M applies to the variation of a direction as it applies to the giving of a direction by the FCA.