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Finance Business Bulletins:
FSA Regulations
Financial Services and Markets Act 2000
2000 Chapter c.8
© Crown Copyright 2000
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Part I
The Regulator
1.
The Financial Services Authority.
The Authority’s general duties
2.
The Authority’s general duties.
The regulatory objectives
3.
Market confidence.
4.
Public awareness.
5.
The protection of consumers.
6.
The reduction of financial crime.
Corporate governance
7.
Duty of Authority to follow principles of good governance.
Arrangements for consulting practitioners and consumers
8.
The Authority’s general duty to consult.
9.
The Practitioner Panel.
10.
The Consumer Panel.
11.
Duty to consider representations by the Panels.
Reviews
12.
Reviews.
13.
Right to obtain documents and information.
Inquiries
14.
Cases in which the Treasury may arrange independent inquiries.
15.
Power to appoint person to hold an inquiry.
16.
Powers of appointed person and procedure.
17.
Conclusion of inquiry.
18.
Obstruction and contempt.
Part II
Regulated And Prohibited Activities
The general prohibition
19.
The general prohibition.
Requirement for permission
20.
Authorised persons acting without permission.
Financial promotion
21.
Restrictions on financial promotion.
Regulated activities
22.
The classes of activity and categories of investment.
Offences
23.
Contravention of the general prohibition.
24.
False claims to be authorised or exempt.
25.
Contravention of section 21.
Enforceability of agreements
26.
Agreements made by unauthorised persons.
27.
Agreements made through unauthorised persons.
28.
Agreements made unenforceable by section 26 or 27.
29.
Accepting deposits in breach of general prohibition.
30.
Enforceability of agreements resulting from unlawful communications.
Part III
Authorisation and Exemption
Authorisation
31.
Authorised persons.
32.
Partnerships and unincorporated associations.
Ending of authorisation
33.
Withdrawal of authorisation by the Authority.
34.
EEA firms.
35.
Treaty firms.
36.
Persons authorised as a result of paragraph 1(1) of Schedule
5.
Exercise of EEA rights by UK firms
37.
Exercise of EEA rights by UK firms.
Exemption
38.
Exemption orders.
39.
Exemption of appointed representatives.
Part IV
Permission to Carry on Regulated Activities
Application for permission
40.
Application for permission.
41.
The threshold conditions.
Permission
42.
Giving permission.
43.
Imposition of requirements.
Variation and cancellation of Part IV permission
44.
Variation etc. at request of authorised person.
45.
Variation etc. on the Authority’s own initiative.
46.
Variation of permission on acquisition of control.
47.
Exercise of power in support of overseas regulator.
48.
Prohibitions and restrictions.
Connected persons
49.
Persons connected with an applicant.
Additional permissions
50.
Authority’s duty to consider other permissions etc.
Procedure
51.
Applications under this Part.
52.
Determination of applications.
53.
Exercise of own-initiative power: procedure.
54.
Cancellation of Part IV permission: procedure.
References to the Tribunal
55.
Right to refer matters to the Tribunal.
Part V
Performance of Regulated Activities
Prohibition orders
56.
Prohibition orders.
57.
Prohibition orders: procedure and right to refer to Tribunal.
58.
Applications relating to prohibitions: procedure and right to
refer to Tribunal.
Approval
59.
Approval for particular arrangements.
60.
Applications for approval.
61.
Determination of applications.
62.
Applications for approval: procedure and right to refer to Tribunal.
63.
Withdrawal of approval.
Conduct
64.
Conduct: statements and codes.
65.
Statements and codes: procedure.
66.
Disciplinary powers.
67.
Disciplinary measures: procedure and right to refer to Tribunal.
68.
Publication.
69.
Statement of policy.
70.
Statements of policy: procedure.
Breach of statutory duty
71.
Actions for damages.
The competent authority
72.
The competent authority.
73.
General duty of the competent authority.
The official list
74.
The official list.
Listing
75.
Applications for listing.
76.
Decision on application.
77.
Discontinuance and suspension of listing.
78.
Discontinuance or suspension: procedure.
Listing particulars
79.
Listing particulars and other documents.
80.
General duty of disclosure in listing particulars.
81.
Supplementary listing particulars.
82.
Exemptions from disclosure.
83.
Registration of listing particulars.
Prospectuses
84.
Prospectuses.
85.
Publication of prospectus.
86.
Application of this Part to prospectuses.
87.
Approval of prospectus where no application for listing.
Sponsors
88.
Sponsors.
89.
Public censure of sponsor.
Compensation
90.
Compensation for false or misleading particulars.
Penalties
91.
Penalties for breach of listing rules.
92.
Procedure.
93.
Statement of policy.
94.
Statements of policy: procedure.
Competition
95.
Competition scrutiny.
Miscellaneous
96.
Obligations of issuers of listed securities.
97.
Appointment by competent authority of persons to carry out investigations.
98.
Advertisements etc. in connection with listing applications.
99.
Fees.
100.
Penalties.
101.
Listing rules: general provisions.
102.
Exemption from liability in damages.
103.
Interpretation of this Part.
Part VII
Control of Business Transfers
104.
Control of business transfers.
105.
Insurance business transfer schemes.
106.
Banking business transfer schemes.
107.
Application for order sanctioning transfer scheme.
108.
Requirements on applicants.
109.
Scheme reports.
110.
Right to participate in proceedings.
111.
Sanction of the court for business transfer schemes.
112.
Effect of order sanctioning business transfer scheme.
113.
Appointment of actuary in relation to reduction of benefits.
114.
Rights of certain policyholders.
Business transfers outside the United Kingdom~
115.
Certificates for purposes of insurance business transfers overseas.
116.
Effect of insurance business transfers authorised in other EEA
States.
Modifications
117.
Power to modify this Part.
Part VIII
Penalties for Market Abuse
Market abuse
118.
Market abuse.
The code
119.
The Code.
120.
Provisions included in the Authority’s code by reference to
the City Code.
121.
Codes: procedure.
122.
Effect of the code.
Power to impose penalties
123.
Power to impose penalties in cases of market abuse.
Statement of policy
124.
Statement of policy.
125.
Statement of policy: procedure.
Procedure
126.
Warning notices.
127.
Decision notices and right to refer to Tribunal.
Miscellaneous
128.
Suspension of investigations.
129.
Power of court to impose penalty in cases of market abuse.
130.
Guidance.
131.
Effect on transactions.
Part IX
Hearings and Appeals
132.
The Financial Services and Markets Tribunal.
133.
Proceedings: general provision.
Legal assistance before the Tribunal
134.
Legal assistance scheme.
135.
Provisions of the legal assistance scheme.
136.
Funding of the legal assistance scheme.
Appeals
137.
Appeal on a point of law.
Chapter I
Rule-making Powers
138.
General rule-making power.
139.
Miscellaneous ancillary matters.
140.
Restriction on managers of authorised unit trust schemes.
141.
Insurance business rules.
142.
Insurance business: regulations supplementing Authority’s rules.
143.
Endorsement of codes etc.
Specific rules
144.
Price stabilising rules.
145.
Financial promotion rules.
146.
Money laundering rules.
147.
Control of information rules.
Modification or waiver
148.
Modification or waiver of rules.
Contravention of rules
149.
Evidential provisions.
150.
Actions for damages.
151.
Limits on effect of contravening rules.
Procedural provisions
152.
Notification of rules to the Treasury.
153.
Rule-making instruments.
154.
Verification of rules.
155.
Consultation.
156.
General supplementary powers.
Chapter II
Guidance
157.
Guidance.
158.
Notification of guidance to the Treasury.
Chapter III
Competition Scrutiny
159.
Interpretation.
160.
Reports by Director General of Fair Trading.
161.
Power of Director to request information.
162.
Consideration by Competition Commission.
163.
Role of the Treasury.
164.
The Competition Act 1998.
Part XI
Information Gathering and Investigations
Powers to gather information
165.
Authority’s power to require information.
166.
Reports by skilled persons.
Appointment of investigators
167.
Appointment of persons to carry out general investigations.
168.
Appointment of persons to carry out investigations in particular
cases.
Assistance to overseas regulators
169.
Investigations etc. in support of overseas regulator.
Conduct of investigations
170.
Investigations: general.
171.
Powers of persons appointed under section 167.
172.
Additional power of persons appointed as a result of section
168(1) or (4).
173.
Powers of persons appointed as a result of section 168(2).
174.
Admissibility of statements made to investigators.
175.
Information and documents: supplemental provisions.
176.
Entry of premises under warrant.
Part XII
Control Over Authorised Persons
Notice of control
178.
Obligation to notify the Authority.
Acquiring, increasing and reducing control
179.
Acquiring control.
180.
Increasing control.
181.
Reducing control.
Acquiring or increasing control: procedure
182.
Notification.
183.
Duty of Authority in relation to notice of control.
184.
Approval of acquisition of control.
185.
Conditions attached to approval.
186.
Objection to acquisition of control.
187.
Objection to existing control.
188.
Notices of objection under section 187: procedure.
Improperly acquired shares
189.
Improperly acquired shares.
Reducing control: procedure
190.
Notification.
Offences
191.
Offences under this Part.
Miscellaneous
192.
Power to change definitions of control etc.
Part XIII
Incoming Firms: Intervention by Authority
Interpretation
193.
Interpretation of this Part.
194.
General grounds on which power of intervention is exercisable.
195.
Exercise of power in support of overseas regulator.
196.
The power of intervention.
Exercise of power of intervention
197.
Procedure on exercise of power of intervention.
198.
Power to apply to court for injunction in respect of certain
overseas insurance companies.
199.
Additional procedure for EEA firms in certain cases.
Supplemental
200.
Rescission and variation of requirements.
201.
Effect of certain requirements on other persons.
202.
Contravention of requirement imposed under this Part.
Powers of Director General of Fair Trading
203.
Power to prohibit the carrying on of Consumer Credit Act business.
204.
Power to restrict the carrying on of Consumer Credit Act business.
Part XIV
Disciplinary Measures
205.
Public censure.
206.
Financial penalties.
207.
Proposal to take disciplinary measures.
208.
Decision notice.
209.
Publication.
210.
Statements of policy.
211.
Statements of policy: procedure.
Part XV
The Financial Services Compensation Scheme
The scheme manager
212.
The scheme manager.
The scheme
213.
The compensation scheme.
Provisions of the scheme
214.
General.
215.
Rights of the scheme in relevant person’s insolvency.
216.
Continuity of long-term insurance policies.
217.
Insurers in financial difficulties.
Annual report
218.
Annual report.
Information and documents
219.
Scheme manager’s power to require information.
220.
Scheme manager’s power to inspect information held by liquidator
etc.
221.
Powers of court where information required.
Miscellaneous
222.
Statutory immunity.
223.
Management expenses.
224.
Scheme manager’s power to inspect documents held by Official
Receiver etc.
The scheme
225.
The scheme and the scheme operator.
226.
Compulsory jurisdiction.
227.
Voluntary jurisdiction.
Determination of complaints
228.
Determination under the compulsory jurisdiction.
229.
Awards.
230.
Costs.
Information
231.
Ombudsman’s power to require information.
232.
Powers of court where information required.
233.
Data protection.
Funding
234.
Industry funding.
Part XVII
Collective Investment Schemes
Chapter I
Interpretation
235.
Collective investment schemes.
236.
Open-ended investment companies.
237.
Other definitions.
Chapter II
Restrictions on Promotion
238.
Restrictions on promotion.
239.
Single property schemes.
240.
Restriction on approval of promotion.
241.
Actions for damages.
Chapter III
Authorised Unit Trust Schemes
Applications for authorisation
242.
Applications for authorisation of unit trust schemes.
243.
Authorisation orders.
244.
Determination of applications.
Applications refused
245.
Procedure when refusing an application.
Certificates
246.
Certificates.
Rules
247.
Trust scheme rules.
248.
Scheme particulars rules.
249.
Disqualification of auditor for breach of trust scheme rules.
250.
Modification or waiver of rules.
Alterations
251.
Alteration of schemes and changes of manager or trustee.
252.
Procedure when refusing approval of change of manager or trustee.
Exclusion clauses
253.
Avoidance of exclusion clauses.
Ending of authorisation
254.
Revocation of authorisation order otherwise than by consent.
255.
Procedure.
256.
Requests for revocation of authorisation order.
Powers of intervention
257.
Directions.
258.
Applications to the court.
259.
Procedure on giving directions under section 257 and varying
them on Authority’s own initiative.
260.
Procedure: refusal to revoke or vary direction.
261.
Procedure: revocation of direction and grant of request for
variation.
Chapter IV
Open-ended Investment Companies
262.
Open-ended investment companies.
263.
Amendment of section 716 Companies Act 1985.
Chapter V
Recognised Overseas Schemes
Schemes constituted in other EEA States
264.
Schemes constituted in other EEA States.
265.
Representations and references to the Tribunal.
266.
Disapplication of rules.
267.
Power of Authority to suspend promotion of scheme.
268.
Procedure on giving directions under section 267 and varying
them on Authority’s own initiative.
269.
Procedure on application for variation or revocation of direction.
Schemes authorised in designated countries or territories
270.
Schemes authorised in designated countries or territories.
271.
Procedure.
Individually recognised overseas schemes
272.
Individually recognised overseas schemes.
273.
Matters that may be taken into account.
274.
Applications for recognition of individual schemes.
275.
Determination of applications.
276.
Procedure when refusing an application.
277.
Alteration of schemes and changes of operator, trustee or depositary.
Schemes recognised under sections 270 and 272
278.
Rules as to scheme particulars.
279.
Revocation of recognition.
280.
Procedure.
281.
Directions.
282.
Procedure on giving directions under section 281 and varying
them otherwise than as requested.
Facilities and information in UK
283.
Facilities and information in UK.
Chapter VI
Investigations
284.
Power to investigate.
Part XVIII
Recognised Investment Exchanges and Clearing Houses
General
285.
Exemption for recognised investment exchanges and clearing houses.
286.
Qualification for recognition.
Applications for recognition
287.
Application by an investment exchange.
288.
Application by a clearing house.
289.
Applications: supplementary.
290.
Recognition orders.
291.
Liability in relation to recognised body’s regulatory functions.
292.
Overseas investment exchanges and overseas clearing houses.
Supervision
293.
Notification requirements.
294.
Modification or waiver of rules.
295.
Notification: overseas investment exchanges and overseas clearing
houses.
296.
Authority’s power to give directions.
297.
Revoking recognition.
298.
Directions and revocation: procedure.
299.
Complaints about recognised bodies.
300.
Extension of functions of Tribunal.
Other matters
301.
Supervision of certain contracts.
Chapter II
Competition Scrutiny
302.
Interpretation.
Role of Director General of Fair Trading
303.
Initial report by Director.
304.
Further reports by Director.
305.
Investigations by Director.
Role of Competition Commission
306.
Consideration by Competition Commission.
Role of the Treasury
307.
Recognition orders: role of the Treasury.