2.—(1) It shall be the duty of the Secretary of State to secure 
      that there are
arrangements in force for granting approvals to persons 
      who—
      
        (a) are or are proposing to provide cryptography support services in 
        the United Kingdom; and
        (b) seek approval in respect of any such services that they are 
        providing, or are proposing to provide, whether in the United Kingdom 
        or
elsewhere.
      (2) The arrangements must—
      
        (a) allow for an approval to be granted either in respect of all 
        the
services in respect of which it is sought or in respect of only 
        some of 
them;
      
        (b) ensure that an approval is granted to a person in respect of any 
        services only if subsection (3) applies in that person’s case; 
        (c) provide for an approval granted to any person to have effect 
        subject to such conditions (whether or not connected with the provision 
        of the 
services in respect of which the approval is granted) as may 
        be 
contained in the approval;
      
        (d) enable a person to whom the Secretary of State is proposing to 
        grant 
an approval to refuse it if the proposal is in different terms 
        from the 
approval which was sought;
      
        (e) make provision for the handling of complaints and disputes 
        which—
      
        
          (i) fall to be dealt with in accordance with a procedure 
          
maintained by an approved person in accordance with the 
          
conditions of his approval; but
      
        
          (ii) have failed to be disposed of by the application of that 
          
procedure;
      
        (f) provide for the modification and withdrawal of 
      approvals.
      (3) This subsection applies in a person’s case if the Secretary of 
      State is 
satisfied that that person—
      
        (a) will comply, in providing the services in respect of which he is 
        
approved, with such technical and other requirements as may be 
        
prescribed;
      
        (b) is a person in relation to whom such other requirements as may be 
        
prescribed are, and will continue to be, satisfied;
      
        (c) is, and will continue to be, able and willing to comply with any 
        
requirements that the Secretary of State is proposing to impose by 
        
means of conditions of the approval; and
      
        (d) is otherwise a fit and proper person to be approved in respect of 
        
those services.
      (4) Regulations made by virtue of paragraph (a) or (b) of subsection 
      (3) 
may frame a requirement for the purposes of that subsection by 
      reference to 
the opinion of a person specified in the regulations, or 
      of a person chosen in a 
manner determined in accordance with the 
      regulations.
      (5) The requirements that may be imposed by conditions contained in an 
      
approval in accordance with the arrangements include— 
      
        (a) requirements to provide information to such persons, in such 
        form, at 
such times and in response to such requests as may be 
        specified in or 
determined under the terms of the 
      condition;
      
        (b) requirements that impose obligations that will continue or recur 
        
notwithstanding the withdrawal (in whole or in part) of the 
        
approval;
      
        (c) requirements framed by reference to the opinion or directions of 
        a 
person specified in or chosen in accordance with provision 
        
contained in the conditions. 
      (6) Any requirement to provide information that is imposed in 
      accordance
with the arrangements on any person by the conditions of his 
      approval shall
be enforceable at the suit or instance of the Secretary 
      of State. 
      (7) Where any arrangements under this section so provide, a person 
      
who—
      
        (a) seeks an approval under the arrangements,
      
        (b) applies for a modification of such an approval,
      
        (c) is for the time being approved under the arrangements, or
        (d) has his approval under the arrangements modified wholly or partly 
        in 
consequence of an application made by him, 
      shall pay to the Secretary of State, at such time or times as may be 
      
prescribed, such fee or fees as may be prescribed in relation to that 
      time or 
those times.
      (8) Sums received by the Secretary of State by virtue of subsection (7) 
      
shall be paid into the Consolidated Fund.