Article 4 General exemption in respect of certain non-directive firms

United Kingdom

(1)

This article provides exemptions from the obligations in sections 178 and 191D of the Act F1(notifying the regulators)M1 in relation to a person (“A”) who decides to acquire, increase, reduce or cease to have control over a relevant UK authorised person (“B”).

(2)

This article does not apply where B is an authorised building society or a relevant friendly society.

(3)

Where A decides to acquire or increase control over B, A is exempt from the obligation imposed by section 178 unless giving effect to the decision would result in A beginning to be in the position of holding—

(a)

20% or more of the shares in B or in a parent undertaking of B (“P”);

(b)

20% or more of the voting power in B or P; or

(c)

shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.

(4)

Where A decides to reduce or cease to have control over B, A is exempt from the obligation imposed by section 191D unless giving effect to the decision would result in A ceasing to be in the position of holding—

(a)

20% or more of the shares in B or in a parent undertaking of B (“P”);

(b)

20% or more of the voting power in B or P; or

(c)

shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.

Annotations

Textual amendments

F1: Words in art. 4(1) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 166

Marginal citations

M1: Sections 178 was substituted and 191D inserted by S.I. 2009/534 (see Regulation 3 and Schedule 1).