Search Legislation

Financial Services and Markets Act 2000

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: PART 1B

 Help about opening options

Version Superseded: 18/07/2013

Status:

Point in time view as at 01/04/2013.

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

Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.

[F1PART 1BU.K.Part 4A permission: authorised persons who are not PRA-authorised persons

Textual Amendments

IntroductionU.K.

2A.If the person concerned (“A”) carries on, or is seeking to carry on, regulated activities which do not consist of or include a PRA-regulated activity, the threshold conditions that are relevant to the discharge by the FCA of its functions in relation to A are the conditions set out in paragraphs 2B to 2F.

Location of officesU.K.

2B.(1)Unless sub-paragraph (3) or (4)(a) applies, if A is a body corporate incorporated in the United Kingdom—

(a)A’s head office, and

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

must be in the United Kingdom.

(2)If A is not a body corporate but A’s head office is in the United Kingdom, A must carry on business in the United Kingdom.

(3)If—

(a)A is seeking to carry on, or is carrying on, a regulated activity which is any of the investment services and activities,

(b)A is a body corporate with no registered office, and

(c)A’s head office is in the United Kingdom,

A must carry on business in the United Kingdom.

(4)If A is seeking to carry on, or is carrying on, an insurance mediation activity—

(a)where A is a body corporate incorporated in the United Kingdom, A’s registered office, or if A has no registered office, A’s head office, must be in the United Kingdom;

(b)where A is an individual, A is to be treated for the purposes of sub-paragraph (2) as having a head office in the United Kingdom if A is resident in the United Kingdom.

(5)“Insurance mediation activity” means any of the following activities—

(a)dealing in rights under a contract of insurance as agent;

(b)arranging deals in rights under a contract of insurance;

(c)assisting in the administration and performance of a contract of insurance;

(d)advising on buying or selling rights under a contract of insurance;

(e)agreeing to do any of the activities specified in paragraphs (a) to (d).

(6)Sub-paragraph (5) must be read with—

(a)section 22,

(b)any relevant order under that section, and

(c)Schedule 2.

Effective supervisionU.K.

2C.(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 of the relevant directives;

(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 territory which is not an EEA State (“the foreign provisions”), whether those foreign provisions, or any deficiency in their enforcement, would prevent the FCA’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.

Appropriate resourcesU.K.

2D.(1)The resources of A must be appropriate in relation to the regulated activities that A carries on or seeks to carry on.

(2)The matters which are relevant in determining whether A has appropriate resources include—

(a)the nature and scale of the business carried on, or to be carried on, by A;

(b)the risks to the continuity of the services provided by, or to be provided by, A;

(c)A’s membership of a group and any effect which that membership may have.

(3)The matters which are relevant in determining whether A has appropriate financial resources include—

(a)the provision A makes and, if A is a member of a group, which other members of the group make, in respect of liabilities;

(b)the means by which A manages and, if A is a member of a group, by which other members of the group manage, the incidence of risk in connection with A’s business.

(4)The matters which are relevant in determining whether A has appropriate non-financial resources include—

(a)the skills and experience of those who manage A’s affairs;

(b)whether A’s non-financial resources are sufficient to enable A to comply with—

(i)requirements imposed or likely to be imposed on A by the FCA in the exercise of its functions, or

(ii)any other requirement in relation to whose contravention the FCA would be the appropriate regulator for the purpose of any provision of Part 14 of this Act.

SuitabilityU.K.

2E.A must be a fit and proper person having regard to all the circumstances, including—

(a)A’s connection with any person;

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

(c)the need to ensure that A’s affairs are conducted in an appropriate manner, having regard in particular to the interests of consumers and the integrity of the UK financial system;

(d)whether A has complied and is complying with requirements imposed by the FCA in the exercise of its functions, or requests made by the FCA, relating to the provision of information to the FCA and, where A has so complied or is so complying, the manner of that compliance;

(e)whether those who manage A’s affairs have adequate skills and experience and have acted and may be expected to act with probity;

(f)whether A’s business is being, or is to be, managed in such a way as to ensure that its affairs will be conducted in a sound and prudent manner;

(g)the need to minimise the extent to which it is possible for the business carried on by A, or to be carried on by A, to be used for a purpose connected with financial crime.

Business modelU.K.

2F.(1)A’s business model (that is, A’s strategy for doing business) must be suitable for a person carrying on the regulated activities that A carries on or seeks to carry on.

(2)The matters which are relevant in determining whether A satisfies the condition in sub-paragraph (1) include—

(a)whether the business model is compatible with A’s affairs being conducted, and continuing to be conducted, in a sound and prudent manner;

(b)the interests of consumers;

(c)the integrity of the UK financial system.]

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.

Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

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