241. Power of the Regulator to require restitution

(1) The Regulator may exercise the power in subsection (5) if it is satisfied that an Authorised Person or Recognised Body (the "Person Concerned") has contravened these Regulations or any Rules made under these Regulations, or been Knowingly Concerned in such contravention, and —
(a) that profits have accrued to him as a result of the contravention; or
(b) that one or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.
(2) The Regulator may exercise the power in subsection (5) if it is satisfied that a person (the "Person Concerned") —
(a) has engaged in Market Abuse; or
(b) by taking or refraining from taking any action has required or encouraged another person or persons to engage in Behaviour which, if engaged in by the Person Concerned, would amount to Market Abuse;
and the condition mentioned in subsection (3) is fulfilled;
(3) The condition is that —
(a) profits have accrued to the Person Concerned as a result of the Market Abuse; or
(b) one or more persons have suffered loss or been otherwise adversely affected as a result of the Market Abuse.
(4) But the Regulator may not exercise that power as a result of subsection (2) if, having considered any representations made to it in response to a warning notice, there are reasonable grounds for it to be satisfied that —
(a) the Person Concerned believed, on reasonable grounds, that his Behaviour did not fall within paragraph (a) or (b) of that subsection; or
(b) he took all reasonable precautions and exercised all due diligence to avoid behaving in a way which fell within paragraph (a) or (b) of that subsection.
(5) The power referred to in subsections (1) and (2) is a power to require the Person Concerned, in accordance with such arrangements as the Regulator considers appropriate, to pay to the Appropriate Person or distribute among the Appropriate Persons such amount as appears to the Regulator to be just having regard —
(a) in a case within paragraph (a) of subsection (1) or (3), to the profits appearing to the Regulator to have accrued;
(b) in a case within paragraph (b) of subsection (1) or (3), to the extent of the loss or other adverse effect;
(c) in a case within paragraphs (a) and (b) of subsection (1) or (3), to the profits appearing to the Regulator to have accrued and to the extent of the loss or other adverse effect.