# The Financial Services and Markets Act 2000 (Designated Activities) (Supervision and Enforcement) Regulations 2024, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations make amendments of the Financial Services and Markets Act 2000 (c. 8) (“FSMA 2000”) relating to the supervision and enforcement by the Financial Conduct Authority (“FCA”) of requirements imposed as a result of “designated activity regulations” (defined in section 71K of that Act). Part 5A of FSMA 2000 enables the Treasury to make regulations providing for an activity to be a “designated activity” for the purposes of that Act and giving the FCA power to make rules and give directions relating to that activity.
The amendments are set out in the Schedule to the Regulations.
The amendments relate only to requirements imposed as a result of—
Part 2 of the Short Selling Regulations 2024, or
the Consumer Composite Investments (Designated Activities) Regulations 2024.
Paragraph 3 of the Schedule, together with the related amendment made by paragraph 24, insert in Part 5A of FSMA 2000—
a definition of “relevant designated activity” for the purpose of that Act,
a definition of “relevant Part 5A requirement” for the purposes of Part 11 of that Act (information gathering and investigations) and Part 14 of that Act (disciplinary measures), and
a definition of “relevant Part 5A direction” for the purposes of Chapter 2 of Part 5A of that Act.
The provisions inserted by paragraph 3 in Part 5A of FSMA 2000 also include procedural requirements relating to the giving of a “relevant Part 5A direction”. These include a provision giving the person to whom a direction is given the right to make a reference to the Upper Tribunal.
Paragraph 4 of the Schedule amends section 133 of FSMA 2000 in connection with the amendment made by paragraph 15 of the Schedule.
Paragraphs 5 to 12 of the Schedule amend Part 11 of FSMA 2000 so as to enable powers conferred by provisions of that Part to be exercised in relation to persons who are or have been subject to “relevant Part 5A requirements” as defined.
Paragraphs 13 to 20 of the Schedule amend Part 14 of FSMA 2000 so as to enable the FCA to enforce “relevant Part 5A requirements” as defined.
Paragraphs 21 to 23 of the Schedule make further consequential amendments of FSMA 2000 relating to notices and to interpretation.
An impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

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Source: https://www.legislation.gov.uk/ukdsi/2024/9780348265460/note (the official version)
Page: https://openlegislation.uk/draft-financial-services-and-markets-act-2000-designated-activities-supervision-and-enforcement-regulations-2024/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.