Search Legislation

Financial Services and Markets Act 2000

Status:

This is the original version (as it was originally enacted).

Section 41.

SCHEDULE 6Threshold Conditions

This schedule has no associated Explanatory Notes

Part IPart IV Permission

Legal status

1(1)If the regulated activity concerned is the effecting or carrying out of contracts of insurance the authorised person must be a body corporate, a registered friendly society or a member of Lloyd's.

(2)If the person concerned appears to the Authority to be seeking to carry on, or to be carrying on, a regulated activity constituting accepting deposits, it must be—

(a)a body corporate; or

(b)a partnership.

Location of offices

2(1)If the person concerned is a body corporate constituted under the law of any part of the United Kingdom—

(a)its head office, and

(b)if it has a registered office, that office,

must be in the United Kingdom.

(2)If the person concerned has its head office in the United Kingdom but is not a body corporate, it must carry on business in the United Kingdom.

Close links

3(1)If the person concerned (“A”) has close links with another person (“CL”) the Authority must be satisfied—

(a)that those links are not likely to prevent the Authority’s effective supervision of A; and

(b)if it appears to the Authority that CL is subject to the laws, regulations or administrative provisions of a territory which is not an EEA State (“the foreign provisions”), that neither the foreign provisions, nor any deficiency in their enforcement, would prevent the Authority’s effective supervision of A.

(2)A has close links with CL if—

(a)CL is a parent undertaking of A;

(b)CL is a subsidiary undertaking of A;

(c)CL is a parent undertaking of a subsidiary undertaking of A;

(d)CL is a subsidiary undertaking of a parent undertaking of A;

(e)CL owns or controls 20% or more of the voting rights or capital of A; or

(f)A owns or controls 20% or more of the voting rights or capital of CL.

(3)“Subsidiary undertaking” includes all the instances mentioned in Article 1(1) and (2) of the Seventh Company Law Directive in which an entity may be a subsidiary of an undertaking.

Adequate resources

4(1)The resources of the person concerned must, in the opinion of the Authority, be adequate in relation to the regulated activities that he seeks to carry on, or carries on.

(2)In reaching that opinion, the Authority may—

(a)take into account the person’s membership of a group and any effect which that membership may have; and

(b)have regard to—

(i)the provision he makes and, if he is a member of a group, which other members of the group make in respect of liabilities (including contingent and future liabilities); and

(ii)the means by which he manages and, if he is a member of a group, which other members of the group manage the incidence of risk in connection with his business.

Suitability

5The person concerned must satisfy the Authority that he is a fit and proper person having regard to all the circumstances, including—

(a)his connection with any person;

(b)the nature of any regulated activity that he carries on or seeks to carry on; and

(c)the need to ensure that his affairs are conducted soundly and prudently.

Part IIAuthorisation

Authorisation under Schedule 3

6In relation to an EEA firm qualifying for authorisation under Schedule 3, the conditions set out in paragraphs 1 and 3 to 5 apply, so far as relevant, to—

(a)an application for permission under Part IV;

(b)exercise of the Authority’s own-initiative power under section 45 in relation to a Part IV permission.

Authorisation under Schedule 4

7In relation to a person who qualifies for authorisation under Schedule 4, the conditions set out in paragraphs 1 and 3 to 5 apply, so far as relevant, to—

(a)an application for an additional permission;

(b)the exercise of the Authority’s own-initiative power under section 45 in relation to additional permission.

Part IIIAdditional Conditions

8(1)If this paragraph applies to the person concerned, he must, for the purposes of such provisions of this Act as may be specified, satisfy specified additional conditions.

(2)This paragraph applies to a person who—

(a)has his head office outside the EEA; and

(b)appears to the Authority to be seeking to carry on a regulated activity relating to insurance business.

(3)“Specified” means specified in, or in accordance with, an order made by the Treasury.

9The Treasury may by order—

(a)vary or remove any of the conditions set out in Parts I and II;

(b)add to those conditions.

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

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

Show Explanatory Notes for Sections: Displays relevant parts of the explanatory notes interweaved within the legislation content.

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

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