26.— F27[(1) The Head of Financial Regulation may issue a notice (in this Part called a "suspension notice") in relation to a person if—

(a) subject to subsection (1A), the person’s fitness and probity is or has been the subject of an investigation under section 25, or

(b) the Bank or the Governor has imposed a prohibition on the person under section 43 (whether or not there has been any investigation under section 25),

and the Head of Financial Regulation is satisfied that it is necessary in the interests of the proper regulation of a regulated financial service provider or holding company that the person not perform the relevant controlled function, a part of the relevant controlled function, or any controlled function, while the Head of Financial Regulation, the Bank or the Governor, as the case may be, is carrying out any function in relation to the person under this Chapter or Chapter 4.]

F28[(1A) In paragraph (a) of subsection (1), the reference to an investigation under section 25 does not include an investigation in the circumstances referred to in paragraph (aa) of section 25(2), unless any other paragraph of section 25(2) also applies.

(1B) Where paragraph (b) of subsection (1) applies, the reference in that subsection to the relevant controlled function, or a part of the relevant controlled function, is a reference to a controlled function, or a part of a controlled function, to which the prohibition applies.]

(2) When considering whether to issue a suspension notice, the Head of Financial Regulation shall have particular regard, where appropriate, to—

(a) the need to prevent potential serious damage to the financial system in the State and ensure the continued stability of that system, and

(b) the need to protect users of financial services.

(3) Before issuing a suspension notice in the circumstances referred to in section 25(2)(c), the Head of Financial Regulation shall ask the regulated financial service F27[provider or holding company concerned] in writing whether it is actually considering the appointment of the person concerned to perform the relevant controlled function. If the regulated financial service provider F28[or holding company] confirms in writing that it is not considering such an appointment, the Head of Financial Regulation shall not issue the notice unless there is reason to believe that such an appointment will nevertheless be made, or has been made.

(4) A suspension notice—

(a) is required to be in writing,

(b) shall set out the grounds on which the Head of Financial Regulation holds the opinion referred to in F27[section 25(1)(a) or, where subsection (1)(b) of this section applies, details of the prohibition],

(c) shall specify whether the suspended person is suspended from performing—

(i) a particular specified controlled function,

(ii) a specified part of a particular specified controlled function, or

(iii) all controlled functions,

F27[(d) shall require the suspended person and any regulated financial service provider or holding company on which a copy of the notice is served to show cause, in writing, within 5 days after service of the notice, why the suspension notice should not be confirmed, and]

F27[(e) shall set out, for any regulated financial service provider or holding company on which any terms and conditions are imposed under subsection (8), the terms and conditions imposed.]

(5) The Head of Financial Regulation shall serve a copy of a suspension notice on each of the following:

(a) the suspended person;

(b) each regulated financial service provider F28[or holding company] for whom, to the knowledge of the Head of Financial Regulation, the suspended person performs the specified controlled function, the specified part of a controlled function, or any controlled function, as the case requires;

(c) any regulated financial service provider F28[or holding company] that—

(i) to the knowledge of the Head of Financial Regulation, proposes to appoint the suspended person to perform the specified controlled function, the specified part of a controlled function, or any controlled function, as the case requires, or

(ii) the Head of Financial Regulation believes to be considering appointing the suspended person to perform the specified controlled function, the specified part of a controlled function, or any controlled function, as the case requires.

(6) F29[…]

(7) A regulated financial service provider F28[or holding company] on which a suspension notice is served shall immediately—

(a) give a copy of the notice to the suspended person (unless it is impracticable to do so), and

(b) after it has done so, certify in writing to the Head of Financial Regulation that it has done so.

(8) In a suspension notice the Head of Financial Regulation may impose on F27[any regulated financial service provider or holding company on which a copy of the notice is served] any terms and conditions relating to the enforcement of, or compliance with, the notice that the Head of Financial Regulation thinks fit (F27[including any terms and conditions] as to the cessation, restriction or conduct of all or part of F27[its business until it complies with the notice]).

(9) A suspended person, and a regulated financial service provider F28[or holding company] on which a suspension notice is served, may, within the period mentioned in subsection (4)(d), make a written submission to the Head of Financial Regulation F27[as to why the suspension notice should not be confirmed] or any terms or conditions imposed.

(10) Where a person on whom a suspension notice has been served asks the Head of Financial Regulation to decide, before the end of the period provided by section 28 (b) (i), whether or not to confirm the suspension notice, and provides material that the Head of Financial Regulation is satisfied allows him or her to make a proper and fair decision, the Head of Financial Regulation shall make all reasonable efforts to make that decision as soon as reasonably practicable.