Search Legislation

Financial Services and Markets Act 2000

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes to legislation:

There are outstanding changes not yet made by the legislation.gov.uk editorial team to Financial Services and Markets Act 2000. Any changes that have already been made by the team appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Exercise of power of interventionU.K.

197 Procedure on exercise of power of intervention.U.K.

(1)A requirement takes effect—

(a)immediately, if the notice given under subsection (3) states that that is the case;

(b)on such date as may be specified in the notice; or

(c)if no date is specified in the notice, when the matter to which it relates is no longer open to review.

(2)A requirement may be expressed to take effect immediately (or on a specified date) only if the [F1regulator], having regard to the ground on which it is exercising its power of intervention, considers that it is necessary for the requirement to take effect immediately (or on that date).

(3)If [F2a regulator] proposes to impose a requirement under section 196 on an incoming firm, or imposes such a requirement with immediate effect, it must give the firm written notice.

(4)The notice must—

(a)give details of the requirement;

(b)inform the firm of when the requirement takes effect;

(c)state the [F3regulator's] reasons for imposing the requirement and for its determination as to when the requirement takes effect;

(d)inform the firm that it may make representations to the [F4regulator] within such period as may be specified in the notice (whether or not it has referred the matter to the Tribunal); and

(e)inform it of its right to refer the matter to the Tribunal.

(5)The [F5regulator] may extend the period allowed under the notice for making representations.

(6)If, having considered any representations made by the firm, the [F5regulator] decides—

(a)to impose the requirement proposed, or

(b)if it has been imposed, not to rescind the requirement,

it must give it written notice.

(7)If, having considered any representations made by the firm, the [F5regulator] decides—

(a)not to impose the requirement proposed,

(b)to impose a different requirement from that proposed, or

(c)to rescind a requirement which has effect,

it must give it written notice.

(8)A notice given under subsection (6) must inform the firm of its right to refer the matter to the Tribunal.

(9)A notice under subsection (7)(b) must comply with subsection (4).

(10)If a notice informs a person of his right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.

Textual Amendments

F1Word in s. 197(2) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 37(2) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F2Words in s. 197(3) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 37(3) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F3Word in s. 197(4)(c) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 37(4)(a) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F4Word in s. 197(4)(d) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 37(4)(b) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F5Word in s. 197(5)-(7) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 37(5) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

Modifications etc. (not altering text)

C1S. 197 amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(5); S.I. 2001/3538, art. 2(1)

S. 197 excluded (1.12.2001) by S.I. 2001/3592, arts. 1(2), 61(4), 110(5), 115(4) (with art. 23(2))

C2S. 197(1)(c) excluded (1.12.2001) by S.I. 2001/3592, arts. 1(2), 18(5), 21(4) (with art. 23(2))

C3S. 197(3) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 12(1), 18(1)(a), 20(1) (with art. 23(2))

S. 197(3) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 72(2) (with art. 23(2))

C4S. 197(7) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 23(1) (with art. 23(2))

Commencement Information

I1S. 197 wholly in force at 1.12.2001; s. 197 not in force at Royal Assent see s. 431(2); s. 197 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 197 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

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

[F6(1)This section applies if the appropriate regulator has received a request made in respect of an incoming EEA firm in accordance with Article 140 of the Solvency 2 Directive.]

(2)The court may, on an application made to it by the [F7appropriate regulator] with respect to the firm, grant an injunction restraining (or in Scotland an interdict prohibiting) the firm disposing of or otherwise dealing with any of its assets.

(3)If the court grants an injunction, it may by subsequent orders make provision for such incidental, consequential and supplementary matters as it considers necessary to enable the [F7appropriate regulator] to perform any of its functions under this Act.

[F8(3A)“The appropriate regulator” means whichever regulator is, at the time when the request is received, the [F9supervisory authority for the purposes of Article 140 of the Solvency 2 Directive].]

(4)The court” means—

(a)the High Court; or

(b)in Scotland, the Court of Session.

Textual Amendments

F7Words in s. 198(1)-(3) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 38(2) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F8S. 198(3A) inserted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 38(3) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

199 Additional procedure for EEA firms in certain cases.U.K.

(1)This section applies if it appears to [F10a regulator] that its power of intervention is exercisable in relation to an EEA firm exercising EEA rights in the United Kingdom (“an incoming EEA firm”) in respect of the contravention of a relevant requirement.

(2)A requirement is relevant if—

[F11(a)it is imposed—

(i)by [F12that regulator] under this Act, or

(ii)under any directly applicable Community regulation or decision made under a single market directive; and]

[F13(b)as respects its contravention, the single market directive in question provides that a procedure of the kind set out in the following provisions of this section (so far as they are relevant in the firm's case) is to apply.]

(3)[F14The regulator] must, in writing, require the firm to remedy the situation.

[F15(3A)If the firm falls within paragraph 5(da) [F16, (f) or (h)] of Schedule 3, [F14the regulator] must at the same time as it gives notice to the firm under subsection (3) refer its findings to the firm's home state regulator.

F14(3B) Subsections (4) [F17and (5)] apply to an incoming EEA firm other than a firm falling within paragraph 5(da) F18... of Schedule 3.]

(4)If the firm fails to comply with the requirement under subsection (3) within a reasonable time, [F14the regulator] must give a notice to that effect to the firm’s home state regulator requesting it—

(a)to take all appropriate measures for the purpose of ensuring that the firm remedies the situation which has given rise to the notice; and

(b)to inform [F14the regulator] of the measures it proposes to take or has taken or the reasons for not taking such measures.

(5)Except as mentioned in subsection (6), [F14the regulator] may not exercise its power of intervention [F19before informing the firm's home state regulator and] unless satisfied—

(a)that the firm’s home state regulator has failed or refused to take measures for the purpose mentioned in subsection (4)(a); or

(b)that the measures taken by the home state regulator have proved inadequate for that purpose.

[F20(5A)Subsections (6) to (8) apply to an incoming EEA firm other than a firm falling within paragraph 5(da) or (h) of Schedule 3.]

(6)If [F14the regulator] decides that it should exercise its power of intervention in respect of the incoming EEA firm as a matter of urgency in order to protect the interests of consumers, it may exercise that power—

(a)before complying with subsections (3) and (4); or

(b)where it has complied with those subsections, before it is satisfied as mentioned in subsection (5).

[F21(7)In such case, the regulator must at the earliest opportunity—

(a)where the single market directive or directly applicable Community regulation in question is the capital requirements directive or the capital requirements regulation, inform the firm’s home state regulator, the Commission, EBA and any other affected regulators of other EEA States;

(b)in the case of any other single market directive or directly applicable Community regulation, inform the firm’s home state regulator, ESMA and the Commission.

(7A)Where the single market directive or directly applicable Community regulation in question is the capital requirements directive or the capital requirements regulation the regulator must rescind any requirement imposed on the firm where the home state regulator has taken appropriate measures in accordance with section 199B(4).]

(8)If—

(a)[F14the regulator] has (by virtue of subsection (6)) exercised its power of intervention before complying with subsections (3) and (4) or before it is satisfied as mentioned in subsection (5), and

(b)the Commission decides under any of the single market directives [F22(other than the markets in financial instruments directive)] that [F14the regulator] must rescind or vary any requirement imposed in the exercise of its power of intervention,

[F14the regulator] must in accordance with the decision rescind or vary the requirement.

[F23(9)In the case of a firm falling within paragraph 5(da) of Schedule 3, [F14the regulator] may not exercise its power of intervention before informing the firm's home state regulator and unless satisfied—

(a)that the firm's home state regulator has failed or refused to take all appropriate measures for the purpose of ensuring that the firm remedies the situation which gave rise to the notice under subsection (3); or

(b)that the measures taken by the home state regulator have proved inadequate for that purpose.]

[F24(10) If an incoming EEA firm is exercising EEA rights under the UCITS directive, then [F14the regulator] must inform [F25ESMA and] the Commission of any measures it has taken in the exercise of its power of intervention.]

[F26(11) If, in the case of a home state regulator of an incoming EEA firm exercising EEA rights under the UCITS directive, [F14the regulator] is satisfied as mentioned in subsection (5), it may refer the matter to ESMA (and ESMA may act in accordance with the powers conferred on it under Article 19 of Regulation ( EU ) No. 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority)).]

[F27(12)Subsection (3) is not to be regarded as requiring the PRA to take action in relation to the contravention of a relevant requirement in a case where it is satisfied that the FCA is required to act, and is acting or has acted, under subsection (3)—

(a)in relation to that requirement, or

(b)where that requirement is imposed by rules made by the PRA, in relation to an identical requirement imposed by rules made by the FCA.]

Textual Amendments

F10Words in s. 199(1) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 39(2) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F11S. 199(2)(a) substituted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(9)(a)

F12Words in s. 199(2)(a)(i) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 39(3) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F14Words in s. 199(3)-(11) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 39(4) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F21S. 199(7)(7A) substituted for s. 199(7) (coming into force in accordance with Sch. 1 of the amending S.I.) by The Capital Requirements Regulations 2013 (S.I. 2013/3115), reg. 1(3), Sch. 2 para. 16(a)

F22Words in s. 199(2)(b)(8)(b) inserted (1.4.2007 for certain purposes and 1.11.2007 otherwise) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(1), Sch. 1 para. 4

F24S. 199(10) inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(9)(d)

F27S. 199(12) inserted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 39(5) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

Modifications etc. (not altering text)

C5S. 199 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 37, 52(4); S.I. 2001/3538, art. 2(1)

S. 199 extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 22(6) (with art. 23(2))

C6S. 199(10) excluded by S.I. 2001/3084, art. 2(8)(b) (as inserted (24.8.2012) by The Financial Services and Markets Act 2000 (Gibraltar) (Amendment) Order 2012 (S.I. 2012/2017), arts. 1, 2(2)(e))

Commencement Information

I2S. 199 wholly in force at 1.12.2001; s. 199 not in force at Royal Assent see s. 431(2); s. 199 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; s. 199 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

[F28199AManagement companies: loss of authorisationU.K.

(1)This section applies in relation to an EEA firm falling within paragraph 5(f) of Schedule 3 (“a management company”) which is providing services in the United Kingdom in the exercise of an EEA right deriving from the UCITS directive.

(2)If the [F29appropriate regulator] has been informed by the home state regulator of the management company that it is withdrawing the management company's authorisation, the [F29appropriate regulator] must exercise its powers under this Act in such manner as it thinks fit to safeguard the interests of investors in a collective investment scheme managed by the management company in the United Kingdom.

(3)Measures taken under subsection (2) may include decisions preventing the management company from initiating any further transactions in the United Kingdom.

[F30(4)In this section—

  • the appropriate regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the UCITS directive;

  • collective investment scheme” has the same meaning as in Part 17.]]

Textual Amendments

F28S. 199A inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(10)

F29Words in s. 199A(2) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 40(2) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F30S. 199A(4) substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 40(3) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

Modifications etc. (not altering text)

C7S. 199A(7) modified by S.I. 2001/3084, art. 2(8)(a) (as inserted (24.8.2012) by The Financial Services and Markets Act 2000 (Gibraltar) (Amendment) Order 2012 (S.I. 2012/2017), arts. 1, 2(2)(e))

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources