Financial Services and Markets Act 2000

1. Introductory Text

2. Part I The Regulator

   1. 1. The Financial Services Authority

   2. The Authority’s general duties

      1. 2. The Authority’s general duties

   3. The regulatory objectives

      1. 3. Market confidence

      2. 4. Public awareness

      3. 5. The protection of consumers

      4. 6. The reduction of financial crime

   4. Corporate governance

      1. 7. Duty of Authority to follow principles of good governance

   5. Arrangements for consulting practitioners and consumers

      1. 8. The Authority’s general duty to consult

      2. 9. The Practitioner Panel

      3. 10. The Consumer Panel

      4. 11. Duty to consider representations by the Panels

   6. Reviews

      1. 12. Reviews

      2. 13. Right to obtain documents and information

   7. Inquiries

      1. 14. Cases in which the Treasury may arrange independent inquiries

      2. 15. Power to appoint person to hold an inquiry

      3. 16. Powers of appointed person and procedure

      4. 17. Conclusion of inquiry

      5. 18. Obstruction and contempt

3. Part II Regulated And Prohibited Activities

   1. The general prohibition

      1. 19. The general prohibition

   2. Requirement for permission

      1. 20. Authorised persons acting without permission

   3. Financial promotion

      1. 21. Restrictions on financial promotion

   4. Regulated activities

      1. 22. The classes of activity and categories of investment

   5. Offences

      1. 23. Contravention of the general prohibition

      2. 24. False claims to be authorised or exempt

      3. 25. Contravention of section 21

   6. Enforceability of agreements

      1. 26. Agreements made by unauthorised persons

      2. 27. Agreements made through unauthorised persons

      3. 28. Agreements made unenforceable by section 26 or 27

      4. 29. Accepting deposits in breach of general prohibition

      5. 30. Enforceability of agreements resulting from unlawful communications

4. Part III Authorisation and Exemption

   1. Authorisation

      1. 31. Authorised persons

      2. 32. Partnerships and unincorporated associations

   2. Ending of authorisation

      1. 33. Withdrawal of authorisation by the Authority

      2. 34. EEA firms

      3. 35. Treaty firms

      4. 36. Persons authorised as a result of paragraph 1(1) of Schedule 5

   3. Exercise of EEA rights by UK firms

      1. 37. Exercise of EEA rights by UK firms

   4. Exemption

      1. 38. Exemption orders

      2. 39. Exemption of appointed representatives

5. Part IV Permission to Carry on Regulated Activities

   1. Application for permission

      1. 40. Application for permission

      2. 41. The threshold conditions

   2. Permission

      1. 42. Giving permission

      2. 43. Imposition of requirements

   3. Variation and cancellation of Part IV permission

      1. 44. Variation etc. at request of authorised person

      2. 45. Variation etc. on the Authority’s own initiative

      3. 46. Variation of permission on acquisition of control

      4. 47. Exercise of power in support of overseas regulator

      5. 48. Prohibitions and restrictions

   4. Connected persons

      1. 49. Persons connected with an applicant

   5. Additional permissions

      1. 50. Authority’s duty to consider other permissions etc

   6. Procedure

      1. 51. Applications under this Part

      2. 52. Determination of applications

      3. 53. Exercise of own-initiative power: procedure

      4. 54. Cancellation of Part IV permission: procedure

   7. References to the Tribunal

      1. 55. Right to refer matters to the Tribunal

6. Part V Performance of Regulated Activities

   1. Prohibition orders

      1. 56. Prohibition orders

      2. 57. Prohibition orders: procedure and right to refer to Tribunal

      3. 58. Applications relating to prohibitions: procedure and right to refer to Tribunal

   2. Approval

      1. 59. Approval for particular arrangements

      2. 60. Applications for approval

      3. 61. Determination of applications

      4. 62. Applications for approval: procedure and right to refer to Tribunal

      5. 63. Withdrawal of approval

   3. Conduct

      1. 64. Conduct: statements and codes

      2. 65. Statements and codes: procedure

      3. 66. Disciplinary powers

      4. 67. Disciplinary measures: procedure and right to refer to Tribunal

      5. 68. Publication

      6. 69. Statement of policy

      7. 70. Statements of policy: procedure

   4. Breach of statutory duty

      1. 71. Actions for damages

7. Part VI Official Listing

   1. The competent authority

      1. 72. The competent authority

      2. 73. General duty of the competent authority

   2. The official list

      1. 74. The official list

   3. Listing

      1. 75. Applications for listing

      2. 76. Decision on application

      3. 77. Discontinuance and suspension of listing

      4. 78. Discontinuance or suspension: procedure

   4. Listing particulars

      1. 79. Listing particulars and other documents

      2. 80. General duty of disclosure in listing particulars

      3. 81. Supplementary listing particulars

      4. 82. Exemptions from disclosure

      5. 83. Registration of listing particulars

   5. Prospectuses

      1. 84. Prospectuses

      2. 85. Publication of prospectus

      3. 86. Application of this Part to prospectuses

      4. 87. Approval of prospectus where no application for listing

   6. Sponsors

      1. 88. Sponsors

      2. 89. Public censure of sponsor

   7. Compensation

      1. 90. Compensation for false or misleading particulars

   8. Penalties

      1. 91. Penalties for breach of listing rules

      2. 92. Procedure

      3. 93. Statement of policy

      4. 94. Statements of policy: procedure

   9. Competition

      1. 95. Competition scrutiny

   10. Miscellaneous

       1. 96. Obligations of issuers of listed securities

       2. 97. Appointment by competent authority of persons to carry out investigations

       3. 98. Advertisements etc. in connection with listing applications

       4. 99. Fees

       5. 100. Penalties

       6. 101. Listing rules: general provisions

       7. 102. Exemption from liability in damages

       8. 103. Interpretation of this Part

8. Part VII Control of Business Transfers

   1. 104. Control of business transfers

   2. 105. Insurance business transfer schemes

   3. 106. Banking business transfer schemes

   4. 107. Application for order sanctioning transfer scheme

   5. 108. Requirements on applicants

   6. 109. Scheme reports

   7. 110. Right to participate in proceedings

   8. 111. Sanction of the court for business transfer schemes

   9. 112. Effect of order sanctioning business transfer scheme

   10. 113. Appointment of actuary in relation to reduction of benefits

   11. 114. Rights of certain policyholders

   12. Business transfers outside the United Kingdom

       1. 115. Certificates for purposes of insurance business transfers overseas

       2. 116. Effect of insurance business transfers authorised in other EEA States

   13. Modifications

       1. 117. Power to modify this Part

9. Part VIII Penalties for Market Abuse

   1. Market abuse

      1. 118. Market abuse

   2. The code

      1. 119. The code

      2. 120. Provisions included in the Authority’s code by reference to the City Code

      3. 121. Codes: procedure

      4. 122. Effect of the code

   3. Power to impose penalties

      1. 123. Power to impose penalties in cases of market abuse

   4. Statement of policy

      1. 124. Statement of policy

      2. 125. Statement of policy: procedure

   5. Procedure

      1. 126. Warning notices

      2. 127. Decision notices and right to refer to Tribunal

   6. Miscellaneous

      1. 128. Suspension of investigations

      2. 129. Power of court to impose penalty in cases of market abuse

      3. 130. Guidance

      4. 131. Effect on transactions

10. Part IX Hearings and Appeals

    1. 132. The Financial Services and Markets Tribunal

    2. 133. Proceedings: general provision

    3. Legal assistance before the Tribunal

       1. 134. Legal assistance scheme

       2. 135. Provisions of the legal assistance scheme

       3. 136. Funding of the legal assistance scheme

    4. Appeals

       1. 137. Appeal on a point of law

11. Part X Rules and Guidance

    1. Chapter I Rule-making Powers

       1. 138. General rule-making power

       2. 139. Miscellaneous ancillary matters

       3. 140. Restriction on managers of authorised unit trust schemes

       4. 141. Insurance business rules

       5. 142. Insurance business: regulations supplementing Authority’s rules

       6. 143. Endorsement of codes etc

       7. Specific rules

          1. 144. Price stabilising rules

          2. 145. Financial promotion rules

          3. 146. Money laundering rules

          4. 147. Control of information rules

       8. Modification or waiver

          1. 148. Modification or waiver of rules

       9. Contravention of rules

          1. 149. Evidential provisions

          2. 150. Actions for damages

          3. 151. Limits on effect of contravening rules

       10. Procedural provisions

           1. 152. Notification of rules to the Treasury

           2. 153. Rule-making instruments

           3. 154. Verification of rules

           4. 155. Consultation

           5. 156. General supplementary powers

    2. Chapter II Guidance

       1. 157. Guidance

       2. 158. Notification of guidance to the Treasury

    3. Chapter III Competition Scrutiny

       1. 159. Interpretation

       2. 160. Reports by Director General of Fair Trading

       3. 161. Power of Director to request information

       4. 162. Consideration by Competition Commission

       5. 163. Role of the Treasury

       6. 164. The Competition Act 1998

12. Part XI Information Gathering and Investigations

    1. Powers to gather information

       1. 165. Authority’s power to require information

       2. 166. Reports by skilled persons

    2. Appointment of investigators

       1. 167. Appointment of persons to carry out general investigations

       2. 168. Appointment of persons to carry out investigations in particular cases

    3. Assistance to overseas regulators

       1. 169. Investigations etc. in support of overseas regulator

    4. Conduct of investigations

       1. 170. Investigations: general

       2. 171. Powers of persons appointed under section 167

       3. 172. Additional power of persons appointed as a result of section 168(1) or (4)

       4. 173. Powers of persons appointed as a result of section 168(2)

       5. 174. Admissibility of statements made to investigators

       6. 175. Information and documents: supplemental provisions

       7. 176. Entry of premises under warrant

    5. Offences

       1. 177. Offences

13. Part XII Control Over Authorised Persons

    1. Notice of control

       1. 178. Obligation to notify the Authority

    2. Acquiring, increasing and reducing control

       1. 179. Acquiring control

       2. 180. Increasing control

       3. 181. Reducing control

    3. Acquiring or increasing control: procedure

       1. 182. Notification

       2. 183. Duty of Authority in relation to notice of control

       3. 184. Approval of acquisition of control

       4. 185. Conditions attached to approval

       5. 186. Objection to acquisition of control

       6. 187. Objection to existing control

       7. 188. Notices of objection under section 187: procedure

    4. Improperly acquired shares

       1. 189. Improperly acquired shares

    5. Reducing control: procedure

       1. 190. Notification

    6. Offences

       1. 191. Offences under this Part

    7. Miscellaneous

       1. 192. Power to change definitions of control etc

14. Part XIII Incoming Firms: Intervention by Authority

    1. Interpretation

       1. 193. Interpretation of this Part

       2. 194. General grounds on which power of intervention is exercisable

       3. 195. Exercise of power in support of overseas regulator

       4. 196. The power of intervention

    2. Exercise of power of intervention

       1. 197. Procedure on exercise of power of intervention

       2. 198. Power to apply to court for injunction in respect of certain overseas insurance companies

       3. 199. Additional procedure for EEA firms in certain cases

    3. Supplemental

       1. 200. Rescission and variation of requirements

       2. 201. Effect of certain requirements on other persons

       3. 202. Contravention of requirement imposed under this Part

    4. Powers of Director General of Fair Trading

       1. 203. Power to prohibit the carrying on of Consumer Credit Act business

       2. 204. Power to restrict the carrying on of Consumer Credit Act business

15. Part XIV Disciplinary Measures

    1. 205. Public censure

    2. 206. Financial penalties

    3. 207. Proposal to take disciplinary measures

    4. 208. Decision notice

    5. 209. Publication

    6. 210. Statements of policy

    7. 211. Statements of policy: procedure

16. Part XV The Financial Services Compensation Scheme

    1. The scheme manager

       1. 212. The scheme manager

    2. The scheme

       1. 213. The compensation scheme

    3. Provisions of the scheme

       1. 214. General

       2. 215. Rights of the scheme in relevant person’s insolvency

       3. 216. Continuity of long-term insurance policies

       4. 217. Insurers in financial difficulties

    4. Annual report

       1. 218. Annual report

    5. Information and documents

       1. 219. Scheme manager’s power to require information

       2. 220. Scheme manager’s power to inspect information held by liquidator etc

       3. 221. Powers of court where information required

    6. Miscellaneous

       1. 222. Statutory immunity

       2. 223. Management expenses

       3. 224. Scheme manager’s power to inspect documents held by Official Receiver etc

17. Part XVI The Ombudsman Scheme

    1. The scheme

       1. 225. The scheme and the scheme operator

       2. 226. Compulsory jurisdiction

       3. 227. Voluntary jurisdiction

    2. Determination of complaints

       1. 228. Determination under the compulsory jurisdiction

       2. 229. Awards

       3. 230. Costs

    3. Information

       1. 231. Ombudsman’s power to require information

       2. 232. Powers of court where information required

       3. 233. Data protection

    4. Funding

       1. 234. Industry funding

18. Part XVII Collective Investment Schemes

    1. Chapter I Interpretation

       1. 235. Collective investment schemes

       2. 236. Open-ended investment companies

       3. 237. Other definitions

    2. Chapter II Restrictions on Promotion

       1. 238. Restrictions on promotion

       2. 239. Single property schemes

       3. 240. Restriction on approval of promotion

       4. 241. Actions for damages

    3. Chapter III Authorised Unit Trust Schemes

       1. Applications for authorisation

          1. 242. Applications for authorisation of unit trust schemes

          2. 243. Authorisation orders

          3. 244. Determination of applications

       2. Applications refused

          1. 245. Procedure when refusing an application

       3. Certificates

          1. 246. Certificates

       4. Rules

          1. 247. Trust scheme rules

          2. 248. Scheme particulars rules

          3. 249. Disqualification of auditor for breach of trust scheme rules

          4. 250. Modification or waiver of rules

       5. Alterations

          1. 251. Alteration of schemes and changes of manager or trustee

          2. 252. Procedure when refusing approval of change of manager or trustee

       6. Exclusion clauses

          1. 253. Avoidance of exclusion clauses

       7. Ending of authorisation

          1. 254. Revocation of authorisation order otherwise than by consent

          2. 255. Procedure

          3. 256. Requests for revocation of authorisation order

       8. Powers of intervention

          1. 257. Directions

          2. 258. Applications to the court

          3. 259. Procedure on giving directions under section 257 and varying them on Authority’s own initiative

          4. 260. Procedure: refusal to revoke or vary direction

          5. 261. Procedure: revocation of direction and grant of request for variation

    4. Chapter IV Open-ended Investment Companies

       1. 262. Open-ended investment companies

       2. 263. Amendment of section 716 Companies Act 1985

    5. Chapter V Recognised Overseas Schemes

       1. Schemes constituted in other EEA States

          1. 264. Schemes constituted in other EEA States

          2. 265. Representations and references to the Tribunal

          3. 266. Disapplication of rules

          4. 267. Power of Authority to suspend promotion of scheme

          5. 268. Procedure on giving directions under section 267 and varying them on Authority’s own initiative

          6. 269. Procedure on application for variation or revocation of direction

       2. Schemes authorised in designated countries or territories

          1. 270. Schemes authorised in designated countries or territories

          2. 271. Procedure

       3. Individually recognised overseas schemes

          1. 272. Individually recognised overseas schemes

          2. 273. Matters that may be taken into account

          3. 274. Applications for recognition of individual schemes

          4. 275. Determination of applications

          5. 276. Procedure when refusing an application

          6. 277. Alteration of schemes and changes of operator, trustee or depositary

       4. Schemes recognised under sections 270 and 272

          1. 278. Rules as to scheme particulars

          2. 279. Revocation of recognition

          3. 280. Procedure

          4. 281. Directions

          5. 282. Procedure on giving directions under section 281 and varying them otherwise than as requested

       5. Facilities and information in UK

          1. 283. Facilities and information in UK

    6. Chapter VI Investigations

       1. 284. Power to investigate

19. Part XVIII Recognised Investment Exchanges and Clearing Houses

    1. Chapter I Exemption

       1. General

          1. 285. Exemption for recognised investment exchanges and clearing houses

          2. 286. Qualification for recognition

       2. Applications for recognition

          1. 287. Application by an investment exchange

          2. 288. Application by a clearing house

          3. 289. Applications: supplementary

          4. 290. Recognition orders

          5. 291. Liability in relation to recognised body’s regulatory functions

          6. 292. Overseas investment exchanges and overseas clearing houses

       3. Supervision

          1. 293. Notification requirements

          2. 294. Modification or waiver of rules

          3. 295. Notification: overseas investment exchanges and overseas clearing houses

          4. 296. Authority’s power to give directions

          5. 297. Revoking recognition

          6. 298. Directions and revocation: procedure

          7. 299. Complaints about recognised bodies

          8. 300. Extension of functions of Tribunal

       4. Other matters

          1. 301. Supervision of certain contracts

    2. Chapter II Competition Scrutiny

       1. 302. Interpretation

       2. Role of Director General of Fair Trading

          1. 303. Initial report by Director

          2. 304. Further reports by Director

          3. 305. Investigations by Director

       3. Role of Competition Commission

          1. 306. Consideration by Competition Commission

       4. Role of the Treasury

          1. 307. Recognition orders: role of the Treasury

          2. 308. Directions by the Treasury

          3. 309. Statements by the Treasury

          4. 310. Procedure on exercise of certain powers by the Treasury

    3. Chapter III Exclusion from the Competition Act 1998

       1. 311. The Chapter I prohibition

       2. 312. The Chapter II prohibition

    4. Chapter IV

       1. Interpretation

          1. 313. Interpretation of Part XVIII

20. Part XIX Lloyd's

    1. General

       1. 314. Authority’s general duty

    2. The Society

       1. 315. The Society: authorisation and permission

    3. Power to apply Act to Lloyd’s underwriting

       1. 316. Direction by Authority

       2. 317. The core provisions

       3. 318. Exercise of powers through Council

       4. 319. Consultation

    4. Former underwriting members

       1. 320. Former underwriting members

       2. 321. Requirements imposed under section 320

       3. 322. Rules applicable to former underwriting members

    5. Transfers of business done at Lloyd's

       1. 323. Transfer schemes

    6. Supplemental

       1. 324. Interpretation of this Part

21. Part XX Provision of Financial Services by Members of the Professions

    1. 325. Authority’s general duty

    2. 326. Designation of professional bodies

    3. 327. Exemption from the general prohibition

    4. 328. Directions in relation to the general prohibition

    5. 329. Orders in relation to the general prohibition

    6. 330. Consultation

    7. 331. Procedure on making or varying orders under section 329

    8. 332. Rules in relation to persons to whom the general prohibition does not apply

    9. 333. False claims to be a person to whom the general prohibition does not apply

22. Part XXI Mutual Societies

    1. Friendly societies

       1. 334. The Friendly Societies Commission

       2. 335. The Registry of Friendly Societies

    2. Building societies

       1. 336. The Building Societies Commission

       2. 337. The Building Societies Investor Protection Board

    3. Industrial and provident societies and credit unions

       1. 338. Industrial and provident societies and credit unions

    4. Supplemental

       1. 339. Supplemental provisions

23. Part XXII Auditors and Actuaries

    1. Appointment

       1. 340. Appointment

    2. Information

       1. 341. Access to books etc

       2. 342. Information given by auditor or actuary to the Authority

       3. 343. Information given by auditor or actuary to the Authority: persons with close links

       4. 344. Duty of auditor or actuary resigning etc. to give notice

    3. Disqualification

       1. 345. Disqualification

    4. Offence

       1. 346. Provision of false or misleading information to auditor or actuary

24. Part XXIII Public Record, Disclosure of Information and Co-operation

    1. The public record

       1. 347. The record of authorised persons etc

    2. Disclosure of information

       1. 348. Restrictions on disclosure of confidential information by Authority etc

       2. 349. Exceptions from section 348

       3. 350. Disclosure of information by the Inland Revenue

       4. 351. Competition information

       5. 352. Offences

       6. 353. Removal of other restrictions on disclosure

    3. Co-operation

       1. 354. Authority’s duty to co-operate with others

25. Part XXIV Insolvency

    1. Interpretation

       1. 355. Interpretation of this Part

    2. Voluntary arrangements

       1. 356. Authority’s powers to participate in proceedings: company voluntary arrangements

       2. 357. Authority’s powers to participate in proceedings: individual voluntary arrangements

       3. 358. Authority’s powers to participate in proceedings: trust deeds for creditors in Scotland

    3. Administration orders

       1. 359. Petitions

       2. 360. Insurers

       3. 361. Administrator’s duty to report to Authority

       4. 362. Authority’s powers to participate in proceedings

    4. Receivership

       1. 363. Authority’s powers to participate in proceedings

       2. 364. Receiver’s duty to report to Authority

    5. Voluntary winding up

       1. 365. Authority’s powers to participate in proceedings

       2. 366. Insurers effecting or carrying out long-term contracts or insurance

    6. Winding up by the court

       1. 367. Winding-up petitions

       2. 368. Winding-up petitions: EEA and Treaty firms

       3. 369. Insurers: service of petition etc. on Authority

       4. 370. Liquidator’s duty to report to Authority

       5. 371. Authority’s powers to participate in proceedings

    7. Bankruptcy

       1. 372. Petitions

       2. 373. Insolvency practitioner’s duty to report to Authority

       3. 374. Authority’s powers to participate in proceedings

    8. Provisions against debt avoidance

       1. 375. Authority’s right to apply for an order

    9. Supplemental provisions concerning insurers

       1. 376. Continuation of contracts of long-term insurance where insurer in liquidation

       2. 377. Reducing the value of contracts instead of winding up

       3. 378. Treatment of assets on winding up

       4. 379. Winding-up rules

26. Part XXV Injunctions and Restitution

    1. Injunctions

       1. 380. Injunctions

       2. 381. Injunctions in cases of market abuse

    2. Restitution orders

       1. 382. Restitution orders

       2. 383. Restitution orders in cases of market abuse

    3. Restitution required by Authority

       1. 384. Power of Authority to require restitution

       2. 385. Warning notices

       3. 386. Decision notices

27. Part XXVI Notices

    1. Warning notices

       1. 387. Warning notices

    2. Decision notices

       1. 388. Decision notices

    3. Conclusion of proceedings

       1. 389. Notices of discontinuance

       2. 390. Final notices

    4. Publication

       1. 391. Publication

    5. Third party rights and access to evidence

       1. 392. Application of sections 393 and 394

       2. 393. Third party rights

       3. 394. Access to Authority material

    6. The Authority’s procedures

       1. 395. The Authority’s procedures

       2. 396. Statements under section 395: consultation

28. Part XXVII Offences

    1. Miscellaneous offences

       1. 397. Misleading statements and practices

       2. 398. Misleading the Authority: residual cases

       3. 399. Misleading the Director General of Fair Trading

    2. Bodies corporate and partnerships

       1. 400. Offences by bodies corporate etc

    3. Institution of proceedings

       1. 401. Proceedings for offences

       2. 402. Power of the Authority to institute proceedings for certain other offences

       3. 403. Jurisdiction and procedure in respect of offences

29. Part XXVIII Miscellaneous

    1. Schemes for reviewing past business

       1. 404. Schemes for reviewing past business

    2. Third countries

       1. 405. Directions

       2. 406. Interpretation of section 405

       3. 407. Consequences of a direction under section 405

       4. 408. EFTA firms

       5. 409. Gibraltar

    3. International obligations

       1. 410. International obligations

    4. Tax treatment of levies and repayments

       1. 411. Tax treatment of levies and repayments

    5. Gaming contracts

       1. 412. Gaming contracts

    6. Limitation on powers to require documents

       1. 413. Protected items

    7. Service of notices

       1. 414. Service of notices

    8. Jurisdiction

       1. 415. Jurisdiction in civil proceedings

    9. Removal of certain unnecessary provisions

       1. 416. Provisions relating to industrial assurance and certain other enactments

30. Part XXIX Interpretation

    1. 417. Definitions

    2. 418. Carrying on regulated activities in the United Kingdom

    3. 419. Carrying on regulated activities by way of business

    4. 420. Parent and subsidiary undertaking

    5. 421. Group

    6. 422. Controller

    7. 423. Manager

    8. 424. Insurance

    9. 425. Expressions relating to authorisation elsewhere in the single market

31. Part XXX Supplemental

    1. 426. Consequential and supplementary provision

    2. 427. Transitional provisions

    3. 428. Regulations and orders

    4. 429. Parliamentary control of statutory instruments

    5. 430. Extent

    6. 431. Commencement

    7. 432. Minor and consequential amendments, transitional provisions and repeals

    8. 433. Short title

32. SCHEDULES

    1. SCHEDULE 1

       The Financial Services Authority

       1. Part I General

          1. Interpretation

             1. 1. (1) In this Schedule— “the 1985 Act” means the Companies...

          2. Constitution

             1. 2. (1) The constitution of the Authority must continue to provide...

          3. Non-executive members of the governing body

             1. 3. (1) The Authority must secure— (a) that the majority of...

          4. Functions of the non-executive committee

             1. 4. (1) In this paragraph “the committee” means the non-executive committee....

          5. Arrangements for discharging functions

             1. 5. (1) The Authority may make arrangements for any of its...

          6. Monitoring and enforcement

             1. 6. (1) The Authority must maintain arrangements designed to enable it...

          7. Arrangements for the investigation of complaints

             1. 7. (1) The Authority must— (a) make arrangements (“the complaints scheme”)...

          8. Investigation of complaints

             1. 8. (1) The Authority is not obliged to investigate a complaint...

          9. Records

             1. 9. The Authority must maintain satisfactory arrangements for—

          10. Annual report

              1. 10. (1) At least once a year the Authority must make...

          11. Annual public meeting

              1. 11. (1) Not later than three months after making a report...

          12. Report of annual meeting

              1. 12. Not later than one month after its annual meeting, the...

       2. Part II Status

          1. 13. In relation to any of its functions—

          2. Exemption from requirement of “limited” in Authority’s name

             1. 14. The Authority is to continue to be exempt from the...

             2. 15. If the Secretary of State is satisfied that any action...

       3. Part III Penalties and Fees

          1. Penalties

             1. 16. (1) In determining its policy with respect to the amounts...

          2. Fees

             1. 17. (1) The Authority may make rules providing for the payment...

          3. Services for which fees may not be charged

             1. 18. The power conferred by paragraph 17 may not be used...

       4. Part IV Miscellaneous

          1. Exemption from liability in damages

             1. 19. (1) Neither the Authority nor any person who is, or...

          2. Disqualification for membership of House of Commons

             1. 20. In Part III of Schedule 1 to the House of...

          3. Disqualification for membership of Northern Ireland Assembly

             1. 21. In Part III of Schedule 1 to the Northern Ireland...

    2. SCHEDULE 2

       Regulated Activities

       1. Part I Regulated Activities

          1. General

             1. 1. The matters with respect to which provision may be made...

          2. Dealing in investments

             1. 2. (1) Buying, selling, subscribing for or underwriting investments or offering...

          3. Arranging deals in investments

             1. 3. Making, or offering or agreeing to make—

          4. Deposit taking

             1. 4. Accepting deposits.

          5. Safekeeping and administration of assets

             1. 5. (1) Safeguarding and administering assets belonging to another which consist...

          6. Managing investments

             1. 6. Managing, or offering or agreeing to manage, assets belonging to...

          7. Investment advice

             1. 7. Giving or offering or agreeing to give advice to persons...

          8. Establishing collective investment schemes

             1. 8. Establishing, operating or winding up a collective investment scheme, including...

          9. Using computer-based systems for giving investment instructions

             1. 9. (1) Sending on behalf of another person instructions relating to...

       2. Part II Investments

          1. General

             1. 10. The matters with respect to which provision may be made...

          2. Securities

             1. 11. (1) Shares or stock in the share capital of a...

          3. Instruments creating or acknowledging indebtedness

             1. 12. Any of the following— (a) debentures; (b) debenture stock;

          4. Government and public securities

             1. 13. (1) Loan stock, bonds and other instruments—

          5. Instruments giving entitlement to investments

             1. 14. (1) Warrants or other instruments entitling the holder to subscribe...

          6. Certificates representing securities

             1. 15. Certificates or other instruments which confer contractual or property rights—...

          7. Units in collective investment schemes

             1. 16. (1) Shares in or securities of an open-ended investment company....

          8. Options

             1. 17. Options to acquire or dispose of property.

          9. Futures

             1. 18. Rights under a contract for the sale of a commodity...

          10. Contracts for differences

              1. 19. Rights under— (a) a contract for differences; or

          11. Contracts of insurance

              1. 20. Rights under a contract of insurance, including rights under contracts...

          12. Participation in Lloyd’s syndicates

              1. 21. (1) The underwriting capacity of a Lloyd’s syndicate.

          13. Deposits

              1. 22. Rights under any contract under which a sum of money...

          14. Loans secured on land

              1. 23. (1) Rights under any contract under which—

          15. Rights in investments

              1. 24. Any right or interest in anything which is an investment...

       3. Part III Supplemental Provisions

          1. The order-making power

             1. 25. (1) An order under section 22(1) may—

          2. Parliamentary control

             1. 26. (1) This paragraph applies to the first order made under...

          3. Interpretation

             1. 27. (1) In this Schedule— “buying” includes acquiring for valuable consideration;...

    3. SCHEDULE 3

       EEA Passport Rights

       1. Part I Defined terms

          1. The single market directives

             1. 1. “The single market directives” means— (a) the first banking co-ordination...

          2. The banking co-ordination directives

             1. 2. (1) “The first banking co-ordination directive” means the Council Directive...

          3. The insurance directives

             1. 3. (1) “The insurance directives” means the first, second and third...

          4. The investment services directive

             1. 4. “The investment services directive” means the Council Directive of 10...

          5. EEA firm

             1. 5. “EEA firm” means any of the following if it does...

          6. EEA authorisation

             1. 6. “EEA authorisation” means authorisation granted to an EEA firm by...

          7. EEA right

             1. 7. “EEA right” means the entitlement of a person to establish...

          8. EEA State

             1. 8. “EEA State” means a State which is a contracting party...

          9. Home state regulator

             1. 9. “Home state regulator” means the competent authority (within the meaning...

          10. UK firm

              1. 10. “UK firm” means a person whose head office is in...

          11. Host state regulator

              1. 11. “Host state regulator” means the competent authority (within the meaning...

       2. Part II Exercise of Passport Rights by EEA Firms

          1. Firms qualifying for authorisation

             1. 12. (1) Once an EEA firm which is seeking to establish...

          2. Establishment

             1. 13. (1) The establishment conditions are that— (a) the Authority has...

          3. Services

             1. 14. (1) The service conditions are that— (a) the firm has...

          4. Grant of permission

             1. 15. (1) On qualifying for authorisation as a result of paragraph...

          5. Effect of carrying on regulated activity when not qualified for authorisation

             1. 16. (1) This paragraph applies to an EEA firm which is...

          6. Continuing regulation of EEA firms

             1. 17. Regulations may— (a) modify any provision of this Act which...

          7. Giving up right to authorisation

             1. 18. Regulations may provide that in prescribed circumstances an EEA firm...

       3. Part III Exercise of Passport Rights by UK Firms

          1. Establishment

             1. 19. (1) A UK firm may not exercise an EEA right...

          2. Services

             1. 20. (1) A UK firm may not exercise an EEA right...

          3. Offence relating to exercise of passport rights

             1. 21. (1) If a UK firm which is not an authorised...

          4. Continuing regulation of UK firms

             1. 22. (1) Regulations may make such provision as the Treasury consider...

             2. 23. (1) Sub-paragraph (2) applies if a UK firm—

             3. 24. (1) Sub-paragraph (2) applies if a UK firm—

    4. SCHEDULE 4

       Treaty Rights

       1. Definitions

          1. 1. In this Schedule— “consumers” means persons who are consumers for...

       2. Firms qualifying for authorisation

          1. 2. Once a Treaty firm which is seeking to carry on...

       3. Exercise of Treaty rights

          1. 3. (1) The conditions are that— (a) the firm has received...

       4. Permission

          1. 4. (1) On qualifying for authorisation under this Schedule, a Treaty...

       5. Notice to Authority

          1. 5. (1) Sub-paragraph (2) applies to a Treaty firm which—

       6. Offences

          1. 6. (1) A person who contravenes paragraph 5(2) is guilty of...

    5. SCHEDULE 5

       Persons Concerned in Collective Investment Schemes

       1. Authorisation

          1. 1. (1) A person who for the time being is an...

       2. Permission

          1. 2. (1) A person authorised as a result of paragraph 1(1)...

    6. SCHEDULE 6

       Threshold Conditions

       1. Part I Part IV Permission

          1. Legal status

             1. 1. (1) If the regulated activity concerned is the effecting or...

          2. Location of offices

             1. 2. (1) If the person concerned is a body corporate constituted...

          3. Close links

             1. 3. (1) If the person concerned (“A”) has close links with...

          4. Adequate resources

             1. 4. (1) The resources of the person concerned must, in the...

          5. Suitability

             1. 5. The person concerned must satisfy the Authority that he is...

       2. Part II Authorisation

          1. Authorisation under Schedule 3

             1. 6. In relation to an EEA firm qualifying for authorisation under...

          2. Authorisation under Schedule 4

             1. 7. In relation to a person who qualifies for authorisation under...

       3. Part III Additional Conditions

          1. 8. (1) If this paragraph applies to the person concerned, he...

          2. 9. The Treasury may by order— (a) vary or remove any...

    7. SCHEDULE 7

       1. The Authority as Competent Authority for Part VI

          1. General

             1. 1. This Act applies in relation to the Authority when it...

          2. The Authority’s general functions

             1. 2. In section 2— (a) subsection (4)(a) does not apply to...

          3. Duty to consult

             1. 3. Section 8 does not apply.

          4. Rules

             1. 4. (1) Sections 149, 153, 154 and 156 do not apply....

          5. Statements of policy

             1. 5. (1) Paragraph 5 of Schedule 1 has effect as if...

          6. Penalties

             1. 6. Paragraph 16 of Schedule 1 does not apply in relation...

          7. Fees

             1. 7. Paragraph 17 of Schedule 1 does not apply in relation...

          8. Exemption from liability in damages

             1. 8. Schedule 1 has effect as if— (a) sub-paragraph (1) of...

    8. SCHEDULE 8

       1. Transfer of functions under Part VI

          1. The power to transfer

             1. 1. (1) The Treasury may by order provide for any function...

          2. Supplemental

             1. 2. (1) An order under this Schedule does not affect anything...

             2. 3. If the Treasury have made an order under paragraph 1...

    9. SCHEDULE 9

       Non-listing Prospectuses

       1. General application of Part VI

          1. 1. The provisions of Part VI apply in relation to a...

       2. References to listing particulars

          1. 2. (1) Any reference to listing particulars is to be read...

       3. General duty of disclosure

          1. 3. (1) In section 80(1), for “section 79” substitute “section 87”....

       4. Supplementary prospectuses

          1. 4. In section 81(1), for “section 79 and before the commencement...

       5. Exemption from liability for compensation

          1. 5. (1) In paragraphs 1(3) and 2(3) of Schedule 10, for...

       6. Advertisements

          1. 6. In section 98(1), for “If listing particulars are, or are...

       7. Fees

          1. 7. Listing rules made under section 99 may require the payment...

    10. SCHEDULE 10

        Compensation: Exemptions

        1. Statements believed to be true

           1. 1. (1) In this paragraph “statement” means— (a) any untrue or...

        2. Statements by experts

           1. 2. (1) In this paragraph “statement” means a statement included in...

        3. Corrections of statements

           1. 3. (1) In this paragraph “statement” has the same meaning as...

        4. Corrections of statements by experts

           1. 4. (1) In this paragraph “statement” has the same meaning as...

        5. Official statements

           1. 5. A person does not incur any liability under section 90(1)...

        6. False or misleading information known about

           1. 6. A person does not incur any liability under section 90(1)...

        7. Belief that supplementary listing particulars not called for

           1. 7. A person does not incur any liability under section 90(4)...

        8. Meaning of “expert”

           1. 8. “Expert” includes any engineer, valuer, accountant or other person whose...

    11. SCHEDULE 11

        Offers of Securities

        1. The general rule

           1. 1. (1) A person offers securities to the public in the...

        2. Exempt offers

           1. 2. (1) For the purposes of this Schedule, an offer of...

        3. Offers for business purposes

           1. 3. The securities are offered to persons— (a) whose ordinary activities...

        4. Offers to limited numbers

           1. 4. (1) The securities are offered to no more than fifty...

        5. Clubs and associations

           1. 5. The securities are offered to the members of a club...

        6. Restricted circles

           1. 6. (1) The securities are offered to a restricted circle of...

        7. Underwriting agreements

           1. 7. The securities are offered in connection with a genuine invitation...

        8. Offers to public authorities

           1. 8. (1) The securities are offered to a public authority.

        9. Maximum consideration

           1. 9. (1) The total consideration payable for the securities cannot exceed...

        10. Minimum consideration

            1. 10. (1) The minimum consideration which may be paid by any...

        11. Securities denominated in euros

            1. 11. (1) The securities are denominated in amounts of at least...

        12. Takeovers

            1. 12. (1) The securities are offered in connection with a takeover...

        13. Mergers

            1. 13. The securities are offered in connection with a merger (within...

        14. Free shares

            1. 14. (1) The securities are shares and are offered free of...

        15. Exchange of shares

            1. 15. The securities— (a) are shares, or investments of a specified...

        16. Qualifying persons

            1. 16. (1) The securities are issued by a body corporate and...

        17. Convertible securities

            1. 17. (1) The securities result from the conversion of convertible securities...

        18. Charities

            1. 18. The securities are issued by— (a) a charity within the...

        19. Building societies etc.

            1. 19. The securities offered are shares which are issued by, or...

        20. Euro-securities

            1. 20. (1) The securities offered are Euro-securities and no advertisement relating...

        21. Same class securities

            1. 21. The securities are of the same class, and were issued...

        22. Short date securities

            1. 22. The securities are investments of a specified kind with a...

        23. Government and public securities

            1. 23. (1) The securities are investments of a specified kind creating...

        24. Non-transferable securities

            1. 24. The securities are not transferable.

        25. General definitions

            1. 25. For the purposes of this Schedule— “shares” has such meaning...

    12. SCHEDULE 12

        Transfer schemes: certificates

        1. Part I Insurance Business Transfer Schemes

           1. 1. (1) For the purposes of section 111(2) the appropriate certificates,...

           2. Certificates as to margin of solvency

              1. 2. (1) A certificate under this paragraph is to be given—...

           3. Certificates as to consent

              1. 3. A certificate under this paragraph is one given by the...

           4. Certificates as to long-term business

              1. 4. A certificate under this paragraph is one given by the...

           5. Certificates as to general business

              1. 5. A certificate under this paragraph is one given by the...

           6. Interpretation of Part I

              1. 6. (1) “State of the commitment”, in relation to a commitment...

        2. Part II Banking Business Transfer Schemes

           1. 7. (1) For the purposes of section 111(2) the appropriate certificates,...

           2. Certificates as to financial resources

              1. 8. (1) A certificate under this paragraph is one given by...

           3. Certificates as to consent of home state regulator

              1. 9. A certificate under this paragraph is one given by the...

        3. Part III Insurance business transfers effected outside the United Kingdom

           1. 10. (1) This paragraph applies to a proposal to execute under...

    13. SCHEDULE 13

        The Financial Services and Markets Tribunal

        1. Part I General

           1. Interpretation

              1. 1. In this Schedule— “panel of chairmen” means the panel established...

        2. Part II The Tribunal

           1. President

              1. 2. (1) The Lord Chancellor must appoint one of the members...

           2. Panels

              1. 3. (1) The Lord Chancellor must appoint a panel of persons...

           3. Terms of office etc

              1. 4. (1) Subject to the provisions of this Schedule, each member...

           4. Remuneration and expenses

              1. 5. The Lord Chancellor may pay to any person, in respect...

           5. Staff

              1. 6. (1) The Lord Chancellor may appoint such staff for the...

        3. Part III Constitution of Tribunal

           1. 7. (1) On a reference to the Tribunal, the persons to...

        4. Part IV Tribunal Procedure

           1. 8. For the purpose of dealing with references, or any matter...

           2. 9. Rules made by the Lord Chancellor under section 132 may,...

           3. Practice directions

              1. 10. The President of the Tribunal may give directions as to...

           4. Evidence

              1. 11. (1) The Tribunal may by summons require any person to...

           5. Decisions of Tribunal

              1. 12. (1) A decision of the Tribunal may be taken by...

           6. Costs

              1. 13. (1) If the Tribunal considers that a party to any...

    14. SCHEDULE 14

        Role of the Competition Commission

        1. Provision of information by Treasury

           1. 1. (1) The Treasury’s powers under this paragraph are to be...

        2. Consideration of matters arising on a report

           1. 2. In considering any matter arising from a report made by...

        3. Applied provisions

           1. 3. (1) The provisions mentioned in sub-paragraph (2) are to apply...

        4. Publication of reports

           1. 4. (1) If the Commission makes a report under section 162,...

    15. SCHEDULE 15

        Information and Investigations: Connected Persons

        1. Part I Rules for Specific Bodies

           1. Corporate bodies

              1. 1. If the authorised person (“BC”) is a body corporate, a...

           2. Partnerships

              1. 2. If the authorised person (“PP”) is a partnership, a person...

           3. Unincorporated associations

              1. 3. If the authorised person (“UA”) is an unincorporated association of...

           4. Friendly societies

              1. 4. (1) If the authorised person (“FS”) is a friendly society,...

           5. Building societies

              1. 5. (1) If the authorised person (“BS”) is a building society,...

           6. Individuals

              1. 6. If the authorised person (“IP”) is an individual, a person...

           7. Application to sections 171 and 172

              1. 7. For the purposes of sections 171 and 172, if the...

        2. Part II Additional Rules

           1. 8. A person who is, or at the relevant time was,...

    16. SCHEDULE 16

        Prohibitions and Restrictions imposed by Director General of Fair Trading

        1. Preliminary

           1. 1. In this Schedule— “appeal period” has the same meaning as...

        2. Notice of prohibition or restriction

           1. 2. (1) This paragraph applies if the Director proposes, in relation...

        3. Application to revoke prohibition or restriction

           1. 3. (1) This paragraph applies if the Director proposes to refuse...

        4. Representations to Director

           1. 4. (1) If this paragraph applies to an invitation to submit...

        5. Appeals

           1. 5. Section 41 of the Consumer Credit Act 1974 (appeals to...

    17. SCHEDULE 17

        The Ombudsman Scheme

        1. Part I General

           1. Interpretation

              1. 1. In this Schedule— “ombudsman” means a person who is a...

        2. Part II The Scheme Operator

           1. Establishment by the Authority

              1. 2. (1) The Authority must establish a body corporate to exercise...

           2. Constitution

              1. 3. (1) The constitution of the scheme operator must provide for...

           3. The panel of ombudsmen

              1. 4. (1) The scheme operator must appoint and maintain a panel...

           4. The Chief Ombudsman

              1. 5. (1) The scheme operator must appoint one member of the...

           5. Status

              1. 6. (1) The scheme operator is not to be regarded as...

           6. Annual reports

              1. 7. (1) At least once a year— (a) the scheme operator...

           7. Guidance

              1. 8. The scheme operator may publish guidance consisting of such information...

           8. Budget

              1. 9. (1) The scheme operator must, before the start of each...

           9. Exemption from liability in damages

              1. 10. (1) No person is to be liable in damages for...

           10. Privilege

               1. 11. For the purposes of the law relating to defamation, proceedings...

        3. Part III The Compulsory Jurisdiction

           1. Introduction

              1. 12. This Part of this Schedule applies only in relation to...

           2. Authority’s procedural rules

              1. 13. (1) The Authority must make rules providing that a complaint...

           3. The scheme operator’s rules

              1. 14. (1) The scheme operator must make rules, to be known...

           4. Fees

              1. 15. (1) Scheme rules may require a respondent to pay to...

           5. Enforcement of money awards

              1. 16. A money award, including interest, which has been registered in...

        4. Part IV The Voluntary Jurisdiction

           1. Introduction

              1. 17. This Part of this Schedule applies only in relation to...

           2. Terms of reference to the scheme

              1. 18. (1) Complaints are to be dealt with and determined under...

           3. Delegation by and to other schemes

              1. 19. (1) The scheme operator may make arrangements with a relevant...

           4. Voluntary jurisdiction rules: procedure

              1. 20. (1) If the scheme operator makes voluntary jurisdiction rules, it...

           5. Verification of the rules

              1. 21. (1) The production of a printed copy of voluntary jurisdiction...

           6. Consultation

              1. 22. (1) If the scheme operator proposes to make voluntary jurisdiction...

    18. SCHEDULE 18

        Mutuals

        1. Part I Friendly Societies

           1. The Friendly Societies Act 1974 (c. 46)

              1. 1. Omit sections 4 (provision for separate registration areas) and 10...

              2. 2. In section 7 (societies which may be registered), in subsection...

              3. 3. In section 11 (additional registration requirements for societies with branches),...

              4. 4. In section 99(4) (punishment of fraud etc and recovery of...

           2. The Friendly Societies Act 1992 (c. 40)

              1. 5. Omit sections 31 to 36A (authorisation of friendly societies business)....

              2. 6. In section 37 (restrictions on combinations of business), omit subsections...

              3. 7. Omit sections 38 to 43 (restrictions on business of certain...

              4. 8. Omit sections 44 to 50 (regulation of friendly societies business)....

        2. Part II Friendly Societies: Subsidiaries and Controlled Bodies

           1. Interpretation

              1. 9. In this Part of this Schedule— “the 1992 Act” means...

           2. Qualifying bodies

              1. 10. (1) Subsections (2) to (5) of section 13 (incorporated friendly...

           3. Bodies controlled by societies

              1. 11. In section 13(9) (defined terms), after paragraph (a) insert—

           4. Joint control by societies

              1. 12. In section 13(9), after paragraph (c) insert—

           5. Acquisition of joint control

              1. 13. In section 13(9), in the words following paragraph (d), after...

           6. Amendment of Schedule 8 to the 1992 Act

              1. 14. (1) Schedule 8 to the 1992 Act (provisions supplementing section...

           7. Consequential amendments

              1. 15. (1) Section 52 of the 1992 Act is amended as...

    19. SCHEDULE 19

        Competition Information

        1. Part I Persons and functions for the purposes of section 351

           1. 1. The Table set out after this paragraph has effect for...

        2. Part II The enactments

           1. 1. The Fair Trading Act 1973

           2. 2. The Consumer Credit Act 1974

           3. 3. The Estate Agents Act 1979

           4. 4. The Competition Act 1980

           5. 5. The Telecommunications Act 1984

           6. 6. The Airports Act 1986

           7. 7. The Gas Act 1986

           8. 8. The Control of Misleading Advertisements Regulations 1988

           9. 9. The Electricity Act 1989

           10. 10. The Broadcasting Act 1990

           11. 11. The Water Industry Act 1991

           12. 12. The Electricity (Northern Ireland) Order 1992

           13. 13. The Railways Act 1993

           14. 14. Part IV of the Airports (Northern Ireland) Order 1994

           15. 15. The Gas (Northern Ireland) Order 1996

           16. 16. The EC Competition (Articles 88 and 89) Enforcement Regulations 1996...

           17. 17. The Unfair Terms in Consumer Contracts Regulations 1999

           18. 18. This Act.

           19. 19. An enactment specified for the purposes of this paragraph in...

    20. SCHEDULE 20

        Minor and Consequential Amendments

        1. The House of Commons Disqualification Act 1975 (c. 24)

           1. 1. In Part III of Schedule 1 to the House of...

        2. The Northern Ireland Assembly Disqualification Act 1975 (c. 25)

           1. 2. In Part III of Schedule 1 to the Northern Ireland...

        3. The Civil Jurisdiction and Judgments Act 1982 (c. 27)

           1. 3. In paragraph 10 of Schedule 5 to the Civil Jurisdiction...

        4. The Income and Corporation Taxes Act 1988 (c. 1)

           1. 4. (1) The Income and Corporation Taxes Act 1988 is amended...

        5. The Finance Act 1991 (c. 31)

           1. 5. (1) The Finance Act 1991 is amended as follows.

        6. The Tribunals and Inquiries Act 1992 (c. 53)

           1. 6. (1) The Tribunals and Inquiries Act 1992 is amended as...

        7. The Judicial Pensions and Retirement Act 1993 (c. 8)

           1. 7. (1) The Judicial Pensions and Retirement Act 1993 is amended...

    21. SCHEDULE 21

        Transitional Provisions and Savings

        1. Self-regulating organisations

           1. 1. (1) No new application under section 9 of the 1986...

        2. Self-regulating organisations for friendly societies

           1. 2. (1) No new application under paragraph 2 of Schedule 11...

    22. SCHEDULE 22

        Repeals