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The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019

S.I. 2019/632 · Made 22 March 2019 · Extends to United Kingdom

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RegulationsrevokedFinancial Services and Markets Act 2023 Sch. 1 Pt. 2

Exiting The European Union

Financial Services

Made 22nd March 2019

Coming into force in accordance with regulation 1

M1M2The Treasury are a government department designated for the purpose of section 2(2) of the European Communities Act 1972 in relation to financial services.

M3The Treasury make the following Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972, and section 8(1) of, paragraph 1 of Schedule 4 to, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 .

In accordance with paragraphs 1 and 12 of Schedule 7 to the European Union (Withdrawal) Act 2018, a draft of this instrument has been laid before, and approved by a resolution of, each House of Parliament.C1

Annotations to the whole text

Marginal citations

M1

S.I. 2012/1759.

M2

1972 c.68. Section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c.51) and by section 3 of, and the Schedule to, the European Union (Amendment) Act 2008 (c.7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c.51), regulations may be made under section 2(2) of the European Communities Act 1972 to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1993 (Cm 2073) and the Protocol adjusting the Agreement signed in Brussels on 17th March 1993 (Cm 2183). Paragraph 1A was inserted into Schedule 2 by section 28 of the Legislative and Regulatory Reform Act 2006 (c.51). The European Communities Act 1972 is repealed with effect from exit day by section 1 of the European Union (Withdrawal) Act 2018.

M3

2018 c.16.

Modifications

C1

Regulations: power to modify conferred (11.7.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 3, 86(3), Sch. 1 Pt. 2; S.I. 2023/779, reg. 2(d)

Contents

  1. Part 1: Introductory
  2. 1Citation, commencement and interpretation
  3. Part 2: Amendments to the Act
  4. Chapter 1: Part 1A of the Act: the regulators
  5. 2Introduction
  6. 3Section 1A (the Financial Conduct Authority)
  7. 4Section 1H (further interpretative provisions for sections 1B to 1G)
  8. 5Section 1L (supervision, monitoring and enforcement)
  9. 6Section 2AB (functions of the PRA)
  10. 7Section 3E (memorandum of understanding)
  11. 8Section 3I (power of PRA to require FCA to refrain from specified action)
  12. 9Section 3J (power of PRA in relation to with-profits policies)
  13. 10Section 3M (directions relating to consolidated supervision of groups)
  14. Chapter 2: Part 3 of the Act: authorisation and exemption
  15. 11Introduction
  16. 12Section 39 (exemption of appointed representatives)
  17. 13Section 39A (certain tied agents operating outside United Kingdom)
  18. Chapter 3: Part 4A of the Act: permission to carry on regulated activities
  19. 14Introduction
  20. 15Section 55D (application for permission)
  21. 16Section 55J (variation and cancellation of Part 4A permission: general)
  22. 17Section 55K (variation and cancellation of Part 4A permission: investment firms)
  23. 18Section 55KA (variation and cancellation of Part 4A permission: insurance undertakings etc.)
  24. 19Section 55PA (imposition and variation of requirements)
  25. 20Section 55Q (exercise of power in support of overseas regulator)
  26. 21Section 55R (connected persons)
  27. 22Section 55S (additional permissions)
  28. 23Sections 55Z1 to 55Z2A (notification)
  29. Chapter 4: Part 5 of the Act: performance of regulated activities
  30. 24Introduction
  31. 25Section 59 (approval for particular arrangements)
  32. 26Section 63E (certification of employees by relevant authorised persons)
  33. 27Section 66A (misconduct: action by the FCA)
  34. 28Section 66B (misconduct: action by the PRA)
  35. 29Section 71D (sections 71B and 71C: conditions)
  36. 30Section 71I (sections 71B to 71H: interpretation)
  37. Chapter 5: Part 7 of the Act: control of business transfers
  38. 31Introduction
  39. 32Section 105 (insurance business transfer schemes)
  40. 33Further amendments to Part 7 of the Act
  41. Chapter 6: Part 9A of the Act: rules and guidance
  42. 34Introduction
  43. 35Section 137J (rules about recovery plans: duty to consult)
  44. 36Section 137N (recovery plans and resolution packs: restriction on duty of confidence)
  45. 37Section 137Q (price stabilising rules)
  46. 38Section 137R (financial promotion rules)
  47. 39Section 138K (consultation: mutual societies)
  48. 40Section 139A (power of the FCA to give guidance)
  49. 41Section 141A (power to make consequential amendments of references to rules etc)
  50. Chapter 7: Part 11 of the Act: information gathering and investigations
  51. 42Introduction
  52. 43Section 165A (PRA's power to require information: financial stability)
  53. 44Section 167 (appointment of persons to carry out general investigations)
  54. 45Section 168 (appointment of persons to carry out investigations in particular cases)
  55. 46Section 169 (investigations etc. in support of overseas regulator)
  56. 47Section 169A (support of overseas regulator with respect to financial stability)
  57. Chapter 8: Part 12 of the Act: control over authorised persons
  58. 48Introduction
  59. 49Section 184 (disregarded holdings)
  60. 50Section 186 (assessment criteria)
  61. 51Section 188 (assessment: consultation with EC competent authorities)
  62. 52Section 189 (assessment: procedure)
  63. 53Section 190 (requests for further information)
  64. 54Section 190A (assessment and resolution)
  65. 55Section 191A (objection by the appropriate regulator)
  66. 56Section 191G (interpretation of Part 12)
  67. Chapter 9: Part 12A of the Act: powers exercisable in relation to parent undertakings
  68. 57Introduction
  69. 58Section 192C (power to direct qualifying parent undertaking)
  70. 59Section 192JB (rules requiring parent undertakings to facilitate resolution)
  71. 60Section 192K (power to impose penalty or issue censure)
  72. Chapter 10: Part 14 of the Act: disciplinary measures
  73. 61Section 204A (meaning of “relevant requirement” etc.)
  74. Chapter 11: Part 20 of the Act: provision of financial services by members of the professions
  75. 62Introduction
  76. 63Section 326 (designation of professional bodies)
  77. 64Section 327 (exemption from the general prohibition)
  78. 65Section 328 (directions in relation to the general prohibition)
  79. Chapter 12: Part 22 of the Act: auditors and actuaries
  80. 66Introduction
  81. 67Section 342 (information given by auditor or actuary to a regulator)
  82. 68Section 343 (information given by auditor or actuary to a regulator: persons with close links)
  83. Chapter 13: Part 25 of the Act: injunctions and restitution
  84. 69Introduction
  85. 70Section 380 (injunctions)
  86. 71Section 382 (restitution orders)
  87. 72Section 384 (power of FCA or PRA to require restitution)
  88. Chapter 14: Part 26 of the Act: notices
  89. 73Introduction
  90. 74Section 391 (publication)
  91. 75Section 391A (publication: special requirements relating to capital requirements directive)
  92. 76Section 391B (publication: special provisions relating to the transparency obligations directive)
  93. 77Section 391C (publication: special provisions relating to the UCITS directive)
  94. 78Section 391D (publication: special provisions relating to the markets in financial instruments directive)
  95. 79Section 391E (publication: special provisions relating to the insurance distribution directive)
  96. Chapter 15: Part 27 of the Act: offences
  97. 80Section 398 (misleading FCA or PRA: residual cases)
  98. Chapter 16: Part 28 of the Act: miscellaneous
  99. 81Introduction
  100. 82Section 404E (meaning of “consumers”)
  101. 83Section 410 (international obligations)
  102. Chapter 17: Part 29 of the Act: interpretation of the Act
  103. 84Introduction
  104. 85Section 417 (definitions)
  105. 86Section 418 (carrying on regulated activities in the United Kingdom)
  106. 87Section 420 (parent and subsidiary undertaking)
  107. 88Section 422A (disregarded holdings)
  108. 89Mortgage agreements etc
  109. 90Section 424A (meaning of “investment firm”)
  110. 91Section 425A (consumers: regulated activities etc carried on by authorised persons)
  111. 92Section 425C (“qualifying EU provision”)
  112. Chapter 18: Schedule 1ZA to the Act: the Financial Conduct Authority
  113. 93Schedule 1ZA (the Financial Conduct Authority)
  114. Chapter 19: Schedule 1ZB to the Act: the Prudential Regulation Authority
  115. 94Schedule 1ZB (the Prudential Regulation Authority)
  116. Chapter 20: Schedule 2 to the Act: regulated activities
  117. 95Schedule 2 (regulated activities)
  118. Chapter 21: Schedule 6 to the Act: threshold conditions
  119. 96Introduction
  120. 97Interpretation
  121. 98Paragraph 2C (effective supervision)
  122. 99Paragraph 3B (effective supervision)
  123. 100Paragraph 4A (introduction to Part 1D)
  124. 101Paragraph 4F (effective supervision)
  125. 102Paragraph 5F (effective supervision)
  126. 103Paragraph 8 (additional conditions)
  127. Chapter 22: Schedule 12 to the Act: transfer schemes: certificates
  128. 104Introduction
  129. 105Paragraph 1 (insurance business transfer schemes)
  130. 106Paragraph 2 (certificates as to margin of solvency)
  131. 107Paragraphs 3 to 6 (further provisions on certificates)
  132. 108Paragraph 7 (banking business transfer schemes)
  133. 109Paragraph 8 (certificates as to financial resources)
  134. 110Paragraph 9 (certificates as to consent of home state regulator)
  135. 111Paragraph 9B (ring-fencing transfer schemes)
  136. 112Paragraph 9C (certificate as to financial resources)
  137. 113Paragraph 9D (certificate as to consent of home state regulator)
  138. 114Paragraph 10 (insurance business transfers effected outside the United Kingdom)
  139. Chapter 23: Schedule 17A to the Act: further provisions in relation to exercise of Part 18 functions by Bank of England
  140. 115Introduction
  141. 116Paragraph 11 (information gathering and investigations)
  142. 117Paragraphs 22 and 23 (public record and disclosure of information)
  143. 118Paragraph 30 (offences)
  144. 119Paragraph 36 (fees)
  145. Part 3: Amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
  146. 120Introduction
  147. 121Article 3 (interpretation)
  148. 122Article 4 (specified activities: general)
  149. 123Article 6 (sums paid by certain persons)
  150. 124Article 9B (issuing electronic money)
  151. 125Article 9C (persons certified as small issuers etc)
  152. 126Article 24A (bidding in emissions auctions) Not yet in force
  153. 127Article 24B (miscellaneous exclusions) Not yet in force
  154. 128Article 33B (provision of information – contracts of insurance)
  155. 129Article 35 (international securities self-regulating organisations)
  156. 130Article 35A (trade repositories)
  157. 131Article 42A (depositaries of UCITS and AIFs)
  158. 132Article 51ZA (managing a UCITS)
  159. 133Article 51ZB (acting as trustee or depositary of a UCITS)
  160. 134Article 51ZD (acting as trustee or depositary of an AIF)
  161. 135Article 51ZG (operating a collective investment scheme in relation to a UCITS or an AIF)
  162. 136Article 53DA (advising on regulated credit agreements for the acquisition of land)
  163. 137Article 54 (advice given in newspapers etc)
  164. 138Article 60D (exempt agreements: exemption relating to the purchase of land for non-residential purposes)
  165. 139Article 60E (exempt agreements: exemptions relating to the nature of the lender)
  166. 140Article 60G (exempt agreements: exemptions relating to the total charge for credit)
  167. 141Article 60H (exempt agreements: exemptions relating to the nature of the borrower)
  168. 142Article 60HA (exempt agreements: exemptions not permitted under the mortgages directive)
  169. 143Article 60JA (payment institutions)
  170. 144Article 60JB (electronic money institutions)
  171. 145Article 61 (regulated mortgage contracts)
  172. 146Article 61A (mortgage contracts which are not regulated mortgage contracts)
  173. 147Article 72 (overseas persons)
  174. 148Article 72AA (managers of UCITS and AIFs)
  175. 149Article 72D (large risks contracts where risk situated outside the EEA)
  176. 150Article 72E (Business Angel-led Enterprise Capital Funds)
  177. 151Article 72G (local authorities)
  178. 152Article 77A (alternative finance investment bonds)
  179. 153Article 78 (government and public securities)
  180. 154Article 82A (greenhouse gas emissions allowances) Not yet in force
  181. 155Article 82B (emission allowances)
  182. 156Article 83 (options)
  183. 157Article 84 (futures)
  184. 158Article 85 (contracts for differences etc)
  185. 159Article 95 (exclusion from record where not fit and proper to carry on insurance distribution)
  186. 160Schedule 4 (relevant text of the insurance distribution directive)
  187. 161Schedule 8 (persons excluded from regulated activity of managing an AIF)
  188. Part 4: Amendments to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
  189. 162Introduction and transitional provision
  190. 163Article 2 (interpretation: general)
  191. 164Article 6 (interpretation: communications)
  192. 165Article 8A (interpretation: outgoing electronic commerce communication)
  193. 166Article 10 (application to qualifying contracts of insurance)
  194. 167Article 12 (communications to overseas recipients)
  195. 168Article 18A (electronic commerce communications: mere conduits, caching and hosting)
  196. 169Article 20B (incoming electronic commerce communications)
  197. 170Article 25 (relevant insurance activity: non-real time communications: reinsurance and large risks)
  198. 171Article 29 (communications required or authorised by enactments)
  199. 172Article 34 (governments, central banks etc)
  200. 173Article 36 (nationals of EEA States other than United Kingdom)
  201. 174Article 59 (annual accounts and directors' report)
  202. 175Article 70 (promotions included in listing particulars etc) Not yet in force
  203. 176Schedule 1 (controlled activities and controlled investments)
  204. Part 5: Amendments to other secondary legislation
  205. 177The Financial Services and Markets Act 2000 (Exemption) Order 2001
  206. 178The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001
  207. 179The Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001
  208. 180The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001
  209. 181The Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2001
  210. 182The Financial Services and Markets Act 2000 (Own-initiative Power) (Overseas Regulators) Regulations 2001
  211. 183The Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001
  212. 184The Financial Services and Markets Act 2000 (Control of Business Done at Lloyd's) Order 2001
  213. 185The Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009
  214. 186The Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 2013
  215. 187The Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013
  216. 188The Financial Services and Markets Act 2000 (Exercise of Powers under Part 4A) (Consultation with Home State Regulators) Regulations 2013
  217. 189The Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013
  218. 190The Financial Services and Markets Act 2000 (Qualifying EU Provisions) (No. 2) Order 2013
  219. 191The Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014
  220. 192The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014
  221. 193The Financial Services and Markets Act 2000 (Relevant Authorised Persons) Order 2015
  222. Part 6: Minor and consequential amendments
  223. 194Consumer Credit Act 1974
  224. 195Electronic Money Regulations 2011
  225. 196Payment Services Regulations 2017
  226. Part 7: Transitional Powers of the Financial Regulators
  227. 197Interpretation
  228. 198Power of the regulators to give transitional directions
  229. 199Meaning of “relevant obligation”
  230. 200Giving, and effect, of transitional directions
  231. 201Variation of transitional directions
  232. 202Consultation
  233. 203Notification and publication of transitional directions
  234. 204Revocation of transitional directions
  235. 205Annual reports and complaints
  236. Part 8: Regulators' fees
  237. 206Meaning of “qualifying functions” in this Part
  238. 207Fees: Bank of England
  239. 208Fees: Financial Conduct Authority
  240. 209Fees: Prudential Regulation Authority
  241. Signature
  242. Explanatory note