SUP 8.4 Reliance on waivers

Application of waived rules

SUP 8.4.1G

If the appropriate regulator1 gives a firm a waiver, then the relevant rule no longer applies to the firm. But:

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  1. (1)

    if a waiver directs that a rule is to apply to a firm with modifications, then contravention of the modified rule could lead to appropriate regulator1 enforcement action and (if applicable) a right of action under section 138D1 of the Act (Actions for damages); and

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  2. (2)

    if a waiver is given subject to a condition, it will not apply to activities conducted in breach of the condition, and those activities, if in breach of the original rule, could lead to appropriate regulator1 enforcement action or such a right of action.

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The effect of rule changes on waivers

SUP 8.4.2G

Substantive changes to the rules (this would not include simple editorial changes) in the Handbook may affect existing waivers, changing their practical effect and creating a need for a change to the original waiver. The appropriate regulator1 will consult on proposed rule changes. A firm should note proposed rule changes and discuss the impact on a waiver with its appropriate1 supervisory contact.

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