Financial Services and Markets Act 2000

Effective supervisionU.K.

This section has no associated Explanatory Notes

[F12C.(1)A must be capable of being effectively supervised by the FCA having regard to all the circumstances including—

(a)the nature (including the complexity) of the regulated activities that A carries on or seeks to carry on;

(b)the complexity of any products that A provides or will provide in carrying on those activities;

(c)the way in which A’s business is organised;

(d)if A is a member of a group, whether membership of the group is likely to prevent the FCA’s effective supervision of A;

(e)whether A is subject to consolidated supervision required under any [F2relevant implementing provisions];

(f)if A has close links with another person (“CL”)—

(i)the nature of the relationship between A and CL,

(ii)whether those links are or that relationship is likely to prevent the FCA’s effective supervision of A, and

(iii)if CL is subject to the laws, regulations or administrative provisions of a [F3country or territory outside the United Kingdom] (“the foreign provisions”), whether those foreign provisions, or any deficiency in their enforcement, would prevent the FCA’s effective supervision of A.

[F4(1A)Paragraphs (a), (b) and (e) of sub-paragraph (1) do not apply where the only regulated activities that the person carries on, or seeks to carry on, are—

(a)relevant credit activities, and

(b)if any, activities to which, by virtue of section 39(1D), sections 20(1) and (1A) and 23(1A) do not apply when carried on by the person.]

(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.]

Textual Amendments