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Financial Services and Markets Act 2000

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Changes over time for: Financial Services and Markets Act 2000 (Schedules only)

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Version Superseded: 13/08/2009

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Point in time view as at 21/03/2009.

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Textual Amendments

SCHEDULESF1

Section 1.

SCHEDULE 1U.K. The Financial Services Authority

Modifications etc. (not altering text)

C1Sch. 1 extended (17.8.2001) by S.I. 2001/2617, arts. 2(a), 4(3), 8, Sch. 2 para. 2

Part IU.K. General

InterpretationU.K.

1(1)In this Schedule—

  • the 1985 Act” means the M1Companies Act 1985;

  • non-executive committee” means the committee maintained under paragraph 3;

  • functions”, in relation to the Authority, means functions conferred on the Authority by or under any provision of this Act.

(2)For the purposes of this Schedule, the following are the Authority’s legislative functions—

(a)making rules;

(b)issuing codes under section 64 or 119;

(c)issuing statements under section 64, 69, 124 or 210;

(d)giving directions under section 316, 318 or 328;

(e)issuing general guidance (as defined by section 158(5)) [F2or guidance under section 158A].

ConstitutionU.K.

2(1)The constitution of the Authority must continue to provide for the Authority to have—U.K.

(a)a chairman; and

(b)a governing body.

(2)The governing body must include the chairman.

(3)The chairman and other members of the governing body must be appointed, and be liable to removal from office, by the Treasury.

(4)The validity of any act of the Authority is not affected—

(a)by a vacancy in the office of chairman; or

(b)by a defect in the appointment of a person as a member of the governing body or as chairman.

Modifications etc. (not altering text)

Non-executive members of the governing bodyU.K.

3(1)The Authority must secure—U.K.

(a)that the majority of the members of its governing body are non-executive members; and

(b)that a committee of its governing body, consisting solely of the non-executive members, is set up and maintained for the purposes of discharging the functions conferred on the committee by this Schedule.

(2)The members of the non-executive committee are to be appointed by the Authority.

(3)The non-executive committee is to have a chairman appointed by the Treasury from among its members.

Functions of the non-executive committeeU.K.

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

(2)The non-executive functions are functions of the Authority but must be discharged by the committee.

(3)The non-executive functions are—

(a)keeping under review the question whether the Authority is, in discharging its functions in accordance with decisions of its governing body, using its resources in the most efficient and economic way;

(b)keeping under review the question whether the Authority’s internal financial controls secure the proper conduct of its financial affairs; and

(c)determining the remuneration of—

(i)the chairman of the Authority’s governing body; and

(ii)the executive members of that body.

(4)The function mentioned in sub-paragraph (3)(b) and those mentioned in sub-paragraph (3)(c) may be discharged on behalf of the committee by a sub-committee.

(5)Any sub-committee of the committee—

(a)must have as its chairman the chairman of the committee; but

(b)may include persons other than members of the committee.

(6)The committee must prepare a report on the discharge of its functions for inclusion in the Authority’s annual report to the Treasury under paragraph 10.

(7)The committee’s report must relate to the same period as that covered by the Authority’s report.

Arrangements for discharging functionsU.K.

5(1)The Authority may make arrangements for any of its functions to be discharged by a committee, sub-committee, officer or member of staff of the Authority.

[F3(2)But—

(a)in exercising the legislative functions mentioned in paragraph 1(2)(a) to (d), the Authority must act through its governing body; and

(b)the legislative function mentioned in paragraph 1(2)(e) may not be discharged by an officer or member of staff of the Authority.]

(3)Sub-paragraph (1) does not apply to the non-executive functions.

Monitoring and enforcementU.K.

6(1)The Authority must maintain arrangements designed to enable it to determine whether persons on whom requirements are imposed by or under this Act [F4, or by any directly applicable Community regulation made under the markets in financial instruments directive,] are complying with them.

(2)Those arrangements may provide for functions to be performed on behalf of the Authority by any body or person who, in its opinion, is competent to perform them.

(3)The Authority must also maintain arrangements for enforcing the provisions of, or made under, this Act [F5or of any directly applicable Community regulation made under the markets in financial instruments directive].

(4)Sub-paragraph (2) does not affect the Authority’s duty under sub-paragraph (1).

Textual Amendments

Modifications etc. (not altering text)

C8Sch. 1 Pt. I para. 6(2) applied (with modifications) (17.8.2001) by S.I. 2001/2617, arts. 2(a), 4(3), 8, Sch. 2 para. 3

Arrangements for the investigation of complaintsU.K.

7(1)The Authority must—U.K.

(a)make arrangements (“the complaints scheme”) for the investigation of complaints arising in connection with the exercise of, or failure to exercise, any of its functions (other than its legislative functions); and

(b)appoint an independent person (“the investigator”) to be responsible for the conduct of investigations in accordance with the complaints scheme.

(2)The complaints scheme must be designed so that, as far as reasonably practicable, complaints are investigated quickly.

(3)The Treasury’s approval is required for the appointment or dismissal of the investigator.

(4)The terms and conditions on which the investigator is appointed must be such as, in the opinion of the Authority, are reasonably designed to secure—

(a)that he will be free at all times to act independently of the Authority; and

(b)that complaints will be investigated under the complaints scheme without favouring the Authority.

(5)Before making the complaints scheme, the Authority must publish a draft of the proposed scheme in the way appearing to the Authority best calculated to bring it to the attention of the public.

(6)The draft must be accompanied by notice that representations about it may be made to the Authority within a specified time.

(7)Before making the proposed complaints scheme, the Authority must have regard to any representations made to it in accordance with sub-paragraph (6).

(8)If the Authority makes the proposed complaints scheme, it must publish an account, in general terms, of—

(a)the representations made to it in accordance with sub-paragraph (6); and

(b)its response to them.

(9)If the complaints scheme differs from the draft published under sub-paragraph (5) in a way which is, in the opinion of the Authority, significant the Authority must (in addition to complying with sub-paragraph (8)) publish details of the difference.

(10)The Authority must publish up-to-date details of the complaints scheme including, in particular, details of—

(a)the provision made under paragraph 8(5); and

(b)the powers which the investigator has to investigate a complaint.

(11)Those details must be published in the way appearing to the Authority to be best calculated to bring them to the attention of the public.

(12)The Authority must, without delay, give the Treasury a copy of any details published by it under this paragraph.

(13)The Authority may charge a reasonable fee for providing a person with a copy of—

(a)a draft published under sub-paragraph (5);

(b)details published under sub-paragraph (10).

(14)Sub-paragraphs (5) to (9) and (13)(a) also apply to a proposal to alter or replace the complaints scheme.

Modifications etc. (not altering text)

Commencement Information

I1Sch. 1 Pt. I para. 7 wholly in force at 3.9.2001; Sch. 1 Pt. I para. 7 not in force at Royal Assent see s. 431(2); Sch. 1 Pt. I para. 7 in force for specified purposes at 19.7.2001 by S.I. 2001/2364, art. 2(2) (with art. 3); Sch. 1 Pt. I para. 7 in force in so far as not already in force at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2

Investigation of complaintsU.K.

8(1)The Authority is not obliged to investigate a complaint in accordance with the complaints scheme which it reasonably considers would be more appropriately dealt with in another way (for example by referring the matter to the Tribunal or by the institution of other legal proceedings).U.K.

(2)The complaints scheme must provide—

(a)for reference to the investigator of any complaint which the Authority is investigating; and

(b)for him—

(i)to have the means to conduct a full investigation of the complaint;

(ii)to report on the result of his investigation to the Authority and the complainant; and

(iii)to be able to publish his report (or any part of it) if he considers that it (or the part) ought to be brought to the attention of the public.

(3)If the Authority has decided not to investigate a complaint, it must notify the investigator.

(4)If the investigator considers that a complaint of which he has been notified under sub-paragraph (3) ought to be investigated, he may proceed as if the complaint had been referred to him under the complaints scheme.

(5)The complaints scheme must confer on the investigator the power to recommend, if he thinks it appropriate, that the Authority—

(a)makes a compensatory payment to the complainant,

(b)remedies the matter complained of,

or takes both of those steps.

(6)The complaints scheme must require the Authority, in a case where the investigator—

(a)has reported that a complaint is well-founded, or

(b)has criticised the Authority in his report,

to inform the investigator and the complainant of the steps which it proposes to take in response to the report.

(7)The investigator may require the Authority to publish the whole or a specified part of the response.

(8)The investigator may appoint a person to conduct the investigation on his behalf but subject to his direction.

(9)Neither an officer nor an employee of the Authority may be appointed under sub-paragraph (8).

(10)Sub-paragraph (2) is not to be taken as preventing the Authority from making arrangements for the initial investigation of a complaint to be conducted by the Authority.

Modifications etc. (not altering text)

C11Sch. 1 Pt. I para. 8 power to apply conferred (19.7.2001) by S.I. 2001/2326, arts. 1(1)(a), 18(2)(b)

Commencement Information

I2Sch. 1 Pt. I para. 8 wholly in force at 3.9.2001; Sch. 1 Pt. I para. 8 not in force at Royal Assent see s. 431(2); Sch. 1 Pt. I para. 8 in force for specified purposes at 19.7.2001 by S.I. 2001/2364, art. 2(2) (with art. 3); Sch. 1 Pt. I para. 8 in force in so far as not already in force at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2

RecordsU.K.

9The Authority must maintain satisfactory arrangements for—

(a)recording decisions made in the exercise of its functions; and

(b)the safe-keeping of those records which it considers ought to be preserved.

Annual reportU.K.

10(1)At least once a year the Authority must make a report to the Treasury on—U.K.

(a)the discharge of its functions;

(b)the extent to which, in its opinion, the regulatory objectives have been met;

(c)its consideration of the matters mentioned in section 2(3); and

(d)such other matters as the Treasury may from time to time direct.

(2)The report must be accompanied by—

(a)the report prepared by the non-executive committee under paragraph 4(6); and

(b)such other reports or information, prepared by such persons, as the Treasury may from time to time direct.

(3)The Treasury must lay before Parliament a copy of each report received by them under this paragraph.

(4)The Treasury may—

(a)require the Authority to comply with any provisions of [F6the Companies Act 2006] about accounts and their audit which would not otherwise apply to it; or

(b)direct that any such provision of that Act is to apply to the Authority with such modifications as are specified in the direction.

(5)Compliance with any requirement imposed under sub-paragraph (4)(a) or (b) is enforceable by injunction or, in Scotland, an order under section 45(b) of the M2Court of Session Act 1988.

(6)Proceedings under sub-paragraph (5) may be brought only by the Treasury.

Annual public meetingU.K.

11(1)Not later than three months after making a report under paragraph 10, the Authority must hold a public meeting (“the annual meeting”) for the purposes of enabling that report to be considered.U.K.

(2)The Authority must organise the annual meeting so as to allow—

(a)a general discussion of the contents of the report which is being considered; and

(b)a reasonable opportunity for those attending the meeting to put questions to the Authority about the way in which it discharged, or failed to discharge, its functions during the period to which the report relates.

(3)But otherwise the annual meeting is to be organised and conducted in such a way as the Authority considers appropriate.

(4)The Authority must give reasonable notice of its annual meeting.

(5)That notice must—

(a)give details of the time and place at which the meeting is to be held;

(b)set out the proposed agenda for the meeting;

(c)indicate the proposed duration of the meeting;

(d)give details of the Authority’s arrangements for enabling persons to attend; and

(e)be published by the Authority in the way appearing to it to be most suitable for bringing the notice to the attention of the public.

(6)If the Authority proposes to alter any of the arrangements which have been included in the notice given under sub-paragraph (4) it must—

(a)give reasonable notice of the alteration; and

(b)publish that notice in the way appearing to the Authority to be best calculated to bring it to the attention of the public.

Report of annual meetingU.K.

12Not later than one month after its annual meeting, the Authority must publish a report of the proceedings of the meeting.

Part IIU.K. Status

13In relation to any of its functions—

(a)the Authority is not to be regarded as acting on behalf of the Crown; and

(b)its members, officers and staff are not to be regarded as Crown servants.

Exemption from requirement of “limited” in Authority’s nameU.K.

14The Authority is to continue to be exempt from the requirements of the 1985 Act relating to the use of “limited” as part of its name.

15If the Secretary of State is satisfied that any action taken by the Authority makes it inappropriate for the exemption given by paragraph 14 to continue he may, after consulting the Treasury, give a direction removing it.

Part IIIU.K. Penalties and Fees

PenaltiesU.K.

16(1)In determining its policy with respect to the amounts of penalties to be imposed by it under this Act, the Authority must take no account of the expenses which it incurs, or expects to incur, in discharging its functions.U.K.

(2)The Authority must prepare and operate a scheme for ensuring that the amounts paid to the Authority by way of penalties imposed under this Act are applied for the benefit of authorised persons.

(3)The scheme may, in particular, make different provision with respect to different classes of authorised person.

(4)Up to date details of the scheme must be set out in a document (“the scheme details”).

(5)The scheme details must be published by the Authority in the way appearing to it to be best calculated to bring them to the attention of the public.

(6)Before making the scheme, the Authority must publish a draft of the proposed scheme in the way appearing to the Authority to be best calculated to bring it to the attention of the public.

(7)The draft must be accompanied by notice that representations about the proposals may be made to the Authority within a specified time.

(8)Before making the scheme, the Authority must have regard to any representations made to it in accordance with sub-paragraph (7).

(9)If the Authority makes the proposed scheme, it must publish an account, in general terms, of—

(a)the representations made to it in accordance with sub-paragraph (7); and

(b)its response to them.

(10)If the scheme differs from the draft published under sub-paragraph (6) in a way which is, in the opinion of the Authority, significant the Authority must (in addition to complying with sub-paragraph (9)) publish details of the difference.

(11)The Authority must, without delay, give the Treasury a copy of any scheme details published by it.

(12)The Authority may charge a reasonable fee for providing a person with a copy of—

(a)a draft published under sub-paragraph (6);

(b)scheme details.

(13)Sub-paragraphs (6) to (10) and (12)(a) also apply to a proposal to alter or replace the complaints scheme.

Modifications etc. (not altering text)

FeesU.K.

17(1)The Authority may make rules providing for the payment to it of such fees, in connection with the discharge of any of its functions under or as a result of this Act, as it considers will (taking account of its expected income from fees and charges provided for by any other provision of this Act) enable it—U.K.

(a)to meet expenses incurred in carrying out its functions or for any incidental purpose;

(b)to repay the principal of, and pay any interest on, any money which it has borrowed and which has been used for the purpose of meeting expenses incurred in relation to its assumption of functions under this Act or the M3Bank of England Act 1998; and

(c)to maintain adequate reserves.

(2)In fixing the amount of any fee which is to be payable to the Authority, no account is to be taken of any sums which the Authority receives, or expects to receive, by way of penalties imposed by it under this Act.

(3)Sub-paragraph (1)(b) applies whether expenses were incurred before or after the coming into force of this Act or the M4Bank of England Act 1998.

(4)Any fee which is owed to the Authority under any provision made by or under this Act may be recovered as a debt due to the Authority.

Modifications etc. (not altering text)

C15Sch. 1 para. 17 modified (1.12.2001) by S.I. 2001/3650, arts. 1(a), 25(1)(2)

C19Sch. 1 para. 17 extended (with modifications) (11.2.2010) by The Cross-Border Payments in Euro Regulations 2010 (S.I. 2010/89), reg. 13

C20Sch. 1 para. 17 extended (with modifications) (9.2.2011 for certain purposes, otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(a)(xiii)(b), 59 (with art. 3)

Marginal Citations

Services for which fees may not be chargedU.K.

18The power conferred by paragraph 17 may not be used to require—

(a)a fee to be paid in respect of the discharge of any of the Authority’s functions under paragraphs 13, 14, 19 or 20 of Schedule 3; or

(b)a fee to be paid by any person whose application for approval under section 59 has been granted.

Part IVU.K. Miscellaneous

Exemption from liability in damagesU.K.

19(1)Neither the Authority nor any person who is, or is acting as, a member, officer or member of staff of the Authority is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of the Authority’s functions.U.K.

(2)Neither the investigator appointed under paragraph 7 nor a person appointed to conduct an investigation on his behalf under paragraph 8(8) is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of his functions in relation to the investigation of a complaint.

(3)Neither sub-paragraph (1) nor sub-paragraph (2) applies—

(a)if the act or omission is shown to have been in bad faith; or

(b)so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the M5Human Rights Act 1998.

Modifications etc. (not altering text)

C24Sch. 1 para. 19 extended (1.12.2001) by S.I. 2001/3650, arts. 1(a), 24(6)

C27Sch. 1 para. 19 applied (11.2.2010) by The Cross-Border Payments in Euro Regulations 2010 (S.I. 2010/89), reg. 15

C28Sch. 1 para. 19 extended (9.2.2011 for certain purposes, otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(a)(xiii)(b), 61 (with art. 3)

C29Sch. 1 para. 19(1) applied (1.12.2001) by S.I. 1995/1537, reg. 23(1) (as amended (1.12.2001) by S.I. 2001/3649, arts. 1, 509(b)(i))

Marginal Citations

[F7[F719AFor the purposes of this Act anything done by an accredited financial investigator within the meaning of the Proceeds of Crime Act 2002 who is—

(a)a member of the staff of the Authority, or

(b)a person appointed by the Authority under section 97, 167 or 168 to conduct an investigation,

must be treated as done in the exercise or discharge of a function of the Authority.]]

Valid from 08/04/2010

[F8Amounts required by rules to be paid to the AuthorityU.K.

Textual Amendments

19BAny amount (other than a fee) which is required by rules to be paid to the Authority may be recovered as a debt due to the Authority.]

Disqualification for membership of House of CommonsU.K.

20In Part III of Schedule 1 to the M6House of Commons Disqualification Act 1975 (disqualifying offices), insert at the appropriate place—

Member of the governing body of the Financial Services Authority

.

Marginal Citations

Disqualification for membership of Northern Ireland AssemblyU.K.

21In Part III of Schedule 1 to the M7Northern Ireland Assembly Disqualification Act 1975 (disqualifying offices), insert at the appropriate place—

Member of the governing body of the Financial Services Authority.

Marginal Citations

Valid from 08/04/2010

Section 6A

[F9SCHEDULE 1AU.K.Further provision about the consumer financial education body

Textual Amendments

F9Sch. 1A inserted (8.4.2010 for certain purposes and 1.4.2011 otherwise) by Financial Services Act 2010 (c. 28), ss. 2(6), 26(1)(b)(k), Sch. 1 para. 1 (with Sch. 1 para. 2); S.I. 2010/2480, art. 3

Part 1 U.K.General

Ensuring exercise of consumer financial education function etcU.K.

1(1)The Authority must take such steps as are necessary to ensure that the consumer financial education body is, at all times, capable of exercising the consumer financial education function.U.K.

(2)In complying with the duty under sub-paragraph (1) the Authority may, in particular, provide services to that body which the Authority considers would facilitate the exercise of that function.

ConstitutionU.K.

2(1)The constitution of the consumer financial education body must provide for it to have—U.K.

(a)a chair;

(b)a chief executive; and

(c)a board (which must include the chair and chief executive) whose members are the body's directors.

(2)The members of the board must be persons appointed, and liable to removal from office, by the Authority (acting, in the case of the chair or chief executive, with the approval of the Treasury).

(3)But the terms of appointment of members of the board (and in particular those governing removal from office) must be such as to secure their independence from the Authority in the exercise of the consumer financial education function.

(4)The Authority may appoint a person to be a member of the board only if it is satisfied that the person has knowledge or experience which is likely to be relevant to the exercise by the body of the consumer financial education function.

StatusU.K.

3(1)The consumer financial education body is not to be regarded as exercising functions on behalf of the Crown.U.K.

(2)The body's board members, officers and staff are not to be regarded as Crown servants.

Discharge of function by othersU.K.

4(1)The consumer financial education body may discharge the consumer financial education function by—U.K.

(a)supporting the doing by other persons of anything that it considers would enhance the understanding, knowledge or ability mentioned in section 6A(1); or

(b)arranging for other persons to do anything that it considers would enhance that understanding, knowledge or ability.

(2)The reference in sub-paragraph (1)(a) to support includes financial support.

(3)The reference in sub-paragraph (1)(b) to arrangements includes arrangements under which payments are made to the other persons.

(4)Nothing in this paragraph is to limit other ways in which the consumer financial education body may discharge the consumer financial education function.

5(1)This paragraph applies if the consumer financial education body arranges for any person (including one established by or under an enactment) to do anything that it considers would enhance the understanding, knowledge or ability mentioned in section 6A(1).U.K.

(2)The person may do that thing despite any limitation on its capacity (whether under a rule of law or otherwise) which, but for this paragraph, would have applied.

Market confidence and financial stabilityU.K.

6In discharging the consumer financial education function, the consumer financial education body must have regard to the importance of—

(a)maintaining confidence in the UK financial system; and

(b)maintaining the stability of the UK financial system.

BudgetU.K.

7(1)The consumer financial education body must adopt an annual budget which has been approved by the Authority.U.K.

(2)The budget must be adopted—

(a)in the case of the body's first financial year, as soon as reasonably practicable after the body is established; and

(b)in the case of each subsequent financial year, before the start of the financial year.

(3)The consumer financial education body may, with the approval of the Authority, vary the budget for a financial year at any time after its adoption.

(4)Before adopting or varying a budget, the consumer financial education body must consult—

(a)the Treasury;

(b)the Secretary of State;

(c)the Office of Fair Trading; and

(d)such other persons (if any) as the body considers appropriate.

(5)The consumer financial education body must publish each budget, and each variation of a budget, in the way it considers appropriate.

Annual planU.K.

8(1)The consumer financial education body must in respect of each of its financial years prepare an annual plan which has been approved by the Authority.U.K.

(2)The plan must be prepared—

(a)in the case of the body's first financial year, as soon as reasonably practicable after the body is established; and

(b)in the case of each subsequent financial year, before the start of the financial year.

(3)The consumer financial education body may, with the approval of the Authority, vary the plan in respect of a financial year at any time after its preparation.

(4)An annual plan in respect of a financial year must set out—

(a)the objectives of the consumer financial education body for the year;

(b)how the extent to which each of those objectives is met is to be determined;

(c)the relative priorities of each of those objectives; and

(d)how its resources are to be allocated among the activities to be carried on in connection with the discharge of the consumer financial education function.

(5)In sub-paragraph (4) references to objectives for a financial year include objectives for a longer period that includes that year.

(6)Before preparing or varying an annual plan, the consumer financial education body must consult—

(a)the Treasury;

(b)the Secretary of State;

(c)the Office of Fair Trading;

(d)the Practitioner Panel;

(e)the Consumer Panel; and

(f)such other persons (if any) as the body considers appropriate.

(7)The consumer financial education body must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.

Annual reportsU.K.

9(1)At least once a year, the consumer financial education body must make a report to the Authority in relation to the discharge of the consumer financial education function.U.K.

(2)The report must—

(a)set out the extent to which the body has met its objectives and priorities for the period covered by the report;

(b)include a copy of its latest accounts; and

(c)comply with any requirements specified in rules made by the Authority.

(3)The consumer financial education body must publish each report in the way it considers appropriate.

(4)Nothing in this paragraph requires the consumer financial education body to make a report at any time in the period of 12 months beginning with its establishment.

Exemption from consumer credit rulesU.K.

10(1)A licence is not required under Part 3 of the Consumer Credit Act 1974 in respect of anything done by—U.K.

(a)the consumer financial education body in discharging the consumer financial education function; or

(b)a person acting on its behalf in accordance with arrangements made under paragraph 4(1)(b).

(2)Nothing in Part 4 or 10 of that Act (seeking business or ancillary credit business) is to apply in relation to anything done by—

(a)the consumer financial education body in discharging the consumer financial education function; or

(b)a person acting on its behalf in accordance with arrangements made under paragraph 4(1)(b).

Part 2 U.K.Funding

Meaning of “the relevant costs”U.K.

11(1)In this Part of this Schedule “the relevant costs” means—U.K.

(a)the expenses incurred by the Authority in establishing the consumer financial education body; and

(b)the expenses incurred, or expected to be incurred, by the consumer financial education body in connection with the discharge of the consumer financial education function.

(2)For the purposes of sub-paragraph (1)(a) it does not matter when the expenses were incurred.

Funding of the relevant costs by authorised persons or payment service providersU.K.

12(1)For the purpose of meeting a proportion of the relevant costs the Authority may makes rules requiring—

(a)authorised persons or payment service providers, or

(b)any specified class of authorised person or payment service provider,

to pay to the Authority specified amounts or amounts calculated in a specified way.

(2)Before making the rules the Authority must have regard to other anticipated sources of funding of the relevant costs.

(3)The amounts to be paid under the rules may include a component to cover the expenses of the Authority in collecting the payments (“collection costs”).

(4)The Authority must pay to the consumer financial education body the amounts that it receives under the rules apart from amounts in respect of its collection costs (which it may keep).

(5)Payment service provider” means a person who is a payment service provider for the purposes of the Payment Services Regulations 2009 as a result of falling within any of paragraphs (a) to (f) of the definition in regulation 2(1).

(6)Specified” means specified in the rules.

Funding of the relevant costs by consumer credit licensees etcU.K.

13(1)For the purpose of meeting a proportion of the relevant costs the OFT may, with the approval of the Secretary of State and the Treasury, from time to time require—U.K.

(a)qualifying consumer credit licensees or applicants, or

(b)any specified class of qualifying consumer credit licensee or applicant,

to pay to the OFT specified amounts or amounts calculated in a specified way.

(2)The requirements are to be imposed by general notice.

(3)Qualifying consumer credit licensee or applicant” means—

(a)a licensee under a licence which covers to any extent the carrying on of a type of business specified in an order under section 226A(2)(e); or

(b)an applicant for a licence, or for the renewal of a licence, which (if granted or renewed) will fall within paragraph (a) above.

(4)Before giving a general notice the OFT must have regard to other anticipated sources of funding of the relevant costs.

(5)Before giving a general notice, the OFT must consult—

(a)the Authority;

(b)the consumer financial education body; and

(c)such other persons (if any) as the OFT considers appropriate.

(6)The amounts to be paid under a general notice may include a component to cover the expenses of the OFT in collecting the payments (“collection costs”).

(7)The OFT must pay to the consumer financial education body the amounts that it receives under a general notice apart from amounts in respect of its collection costs (which it may keep).

(8)A general notice may—

(a)specify the time at or by which the payments are to be made;

(b)provide for exceptions from requirements imposed on a class of qualifying consumer credit licensee or applicant;

(c)impose different requirements on different classes of qualifying consumer credit licensee or applicant;

(d)make provision for refunds in specified circumstances.

(9)Expressions which are used in sub-paragraph (3) and in the Consumer Credit Act 1974 have the same meaning in that sub-paragraph as in that Act.

(10)In this paragraph—

  • general notice” means a notice published by the OFT at a time and in a manner appearing to it suitable for securing that the notice is seen within a reasonable time by persons likely to be affected by it;

  • the OFT” means the Office of Fair Trading;

  • specified” means specified in the general notice.

Funding by grants or loans etc made by Treasury or Secretary of StateU.K.

14(1)The Treasury or the Secretary of State may—U.K.

(a)make grants or loans, or

(b)provide any other form of financial assistance,

to the consumer financial education body for the purpose of meeting any expenses incurred by it in connection with the discharge of the consumer financial education function.

(2)Any grant or loan or other form of financial assistance under this paragraph may be made or provided subject to such terms as the Treasury or the Secretary of State consider appropriate.

(3)Any expenses incurred by the Treasury or the Secretary of State under this paragraph are to be met out of money provided by Parliament.

Part 3 U.K.Reviews

Reviews of economy etc of the consumer financial education bodyU.K.

15(1)The Authority may appoint an independent person to conduct a review of the economy, efficiency and effectiveness with which the consumer financial education body has used its resources in discharging the consumer financial education function.U.K.

(2)The Authority must consult the Treasury before acting under this paragraph.

(3)A review is not to be concerned with the merits of the body's general policy or principles in discharging the consumer financial education function.

(4)On completion of a review, the person conducting it must make a written report to the Authority—

(a)setting out the result of the review; and

(b)making such recommendations (if any) as the person considers appropriate.

(5)The Authority must publish a copy of the report in the way it considers appropriate.

(6)Any expenses reasonably incurred in the conduct of the review are to be met by the Authority.

(7)Independent” means appearing to the Authority to be independent of the consumer financial education body.

Right to obtain documents and informationU.K.

16(1)A person conducting a review under paragraph 15—U.K.

(a)has a right of access at any reasonable time to all such documents as the person may reasonably require for the purposes of the review; and

(b)may require any person holding or accountable for any such document to provide such information and explanation as are reasonably required for those purposes.

(2)This paragraph applies only to documents in the custody or under the control of the consumer financial education body.

(3)An obligation imposed on a person as a result of this paragraph is enforceable by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.]

Section 22(2).

SCHEDULE 2U.K. Regulated Activities

Modifications etc. (not altering text)

C30Sch. 2 applied by 1974 c. 39, s. 16(6E)(c) (as inserted (1.9.2002) by S.I. 2001/544, arts. 2(1)(2)(b), 90(2); S.I. 2001/3538, art. 2(1))

Part IU.K.[F10Regulated activities: general]

Textual Amendments

GeneralU.K.

1The matters with respect to which provision may be made under section 22(1) in respect of activities include, in particular, those described in general terms in this Part of this Schedule.

Dealing in investmentsU.K.

2(1)Buying, selling, subscribing for or underwriting investments or offering or agreeing to do so, either as a principal or as an agent.U.K.

(2)In the case of an investment which is a contract of insurance, that includes carrying out the contract.

Arranging deals in investmentsU.K.

3Making, or offering or agreeing to make—

(a)arrangements with a view to another person buying, selling, subscribing for or underwriting a particular investment;

(b)arrangements with a view to a person who participates in the arrangements buying, selling, subscribing for or underwriting investments.

Deposit takingU.K.

4Accepting deposits.

Safekeeping and administration of assetsU.K.

5(1)Safeguarding and administering assets belonging to another which consist of or include investments or offering or agreeing to do so.U.K.

(2)Arranging for the safeguarding and administration of assets belonging to another, or offering or agreeing to do so.

Managing investmentsU.K.

6Managing, or offering or agreeing to manage, assets belonging to another person where—

(a)the assets consist of or include investments; or

(b)the arrangements for their management are such that the assets may consist of or include investments at the discretion of the person managing or offering or agreeing to manage them.

Investment adviceU.K.

7Giving or offering or agreeing to give advice to persons on—

(a)buying, selling, subscribing for or underwriting an investment; or

(b)exercising any right conferred by an investment to acquire, dispose of, underwrite or convert an investment.

Establishing collective investment schemesU.K.

8Establishing, operating or winding up a collective investment scheme, including acting as—

(a)trustee of a unit trust scheme;

(b)depositary of a collective investment scheme other than a unit trust scheme; or

(c)sole director of a body incorporated by virtue of regulations under section 262.

Using computer-based systems for giving investment instructionsU.K.

9(1)Sending on behalf of another person instructions relating to an investment by means of a computer-based system which enables investments to be transferred without a written instrument.U.K.

(2)Offering or agreeing to send such instructions by such means on behalf of another person.

(3)Causing such instructions to be sent by such means on behalf of another person.

(4)Offering or agreeing to cause such instructions to be sent by such means on behalf of another person.

[F11Part 1A U.K.Regulated activities: reclaim funds

Activities of reclaim fundsU.K.

9A(1)The matters with respect to which provision may be made under section 22(1) in respect of activities include, in particular, any of the activities of a reclaim fund.

(2)Reclaim fund” has the meaning given by section 5(1) of the Dormant Bank and Building Society Accounts Act 2008.]

Part IIU.K. Investments

GeneralU.K.

10The matters with respect to which provision may be made under section 22(1) in respect of investments include, in particular, those described in general terms in this Part of this Schedule.

SecuritiesU.K.

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

(2)Company” includes—

(a)any body corporate (wherever incorporated), and

(b)any unincorporated body constituted under the law of a country or territory outside the United Kingdom,

other than an open-ended investment company.

Instruments creating or acknowledging indebtednessU.K.

12Any of the following—

(a)debentures;

(b)debenture stock;

(c)loan stock;

(d)bonds;

(e)certificates of deposit;

(f)any other instruments creating or acknowledging a present or future indebtedness.

Modifications etc. (not altering text)

Government and public securitiesU.K.

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

(a)creating or acknowledging indebtedness; and

(b)issued by or on behalf of a government, local authority or public authority.

(2)Government, local authority or public authority” means—

(a)the government of the United Kingdom, of Northern Ireland, or of any country or territory outside the United Kingdom;

(b)a local authority in the United Kingdom or elsewhere;

(c)any international organisation the members of which include the United Kingdom or another member State.

Instruments giving entitlement to investmentsU.K.

14(1)Warrants or other instruments entitling the holder to subscribe for any investment.U.K.

(2)It is immaterial whether the investment is in existence or identifiable.

Certificates representing securitiesU.K.

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

(a)in respect of any investment held by someone other than the person on whom the rights are conferred by the certificate or other instrument; and

(b)the transfer of which may be effected without requiring the consent of that person.

Units in collective investment schemesU.K.

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

(2)Any right to participate in a collective investment scheme.

OptionsU.K.

17Options to acquire or dispose of property.

FuturesU.K.

18Rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date.

Contracts for differencesU.K.

19Rights under—

(a)a contract for differences; or

(b)any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in—

(i)the value or price of property of any description; or

(ii)an index or other factor designated for that purpose in the contract.

Contracts of insuranceU.K.

20Rights under a contract of insurance, including rights under contracts falling within head C of Schedule 2 to the M8Friendly Societies Act 1992.

Marginal Citations

Participation in Lloyd’s syndicatesU.K.

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

(2)A person’s membership (or prospective membership) of a Lloyd’s syndicate.

DepositsU.K.

22Rights under any contract under which a sum of money (whether or not denominated in a currency) is paid on terms under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it.

Loans secured on landU.K.

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

(a)one person provides another with credit; and

(b)the obligation of the borrower to repay is secured on land.

(2)Credit” includes any cash loan or other financial accommodation.

(3)Cash” includes money in any form.

[F12Other finance arrangements involving landU.K.

Textual Amendments

23A(1)Rights under any arrangement for the provision of finance under which the person providing the finance either—U.K.

(a)acquires a major interest in land from the person to whom the finance is provided, or

(b)disposes of a major interest in land to that person,

as part of the arrangement.

(2)References in sub-paragraph (1) to a “major interest” in land are to—

(a)in relation to land in England or Wales—

(i)an estate in fee simple absolute, or

(ii)a term of years absolute,

whether subsisting at law or in equity;

(b)in relation to land in Scotland—

(i)the interest of an owner of land, or

(ii)the tenant's right over or interest in a property subject to a lease;

(c)in relation to land in Northern Ireland—

(i)any freehold estate, or

(ii)any leasehold estate,

whether subsisting at law or in equity.

(3)It is immaterial for the purposes of sub-paragraph (1) whether either party acquires or (as the case may be) disposes of the interest in land—

(a)directly, or

(b)indirectly.]

Rights in investmentsU.K.

24Any right or interest in anything which is an investment as a result of any other provision made under section 22(1).

Part IIIU.K. Supplemental Provisions

The order-making powerU.K.

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

(a)provide for exemptions;

(b)confer powers on the Treasury or the Authority;

(c)authorise the making of regulations or other instruments by the Treasury for purposes of, or connected with, any relevant provision;

(d)authorise the making of rules or other instruments by the Authority for purposes of, or connected with, any relevant provision;

(e)make provision in respect of any information or document which, in the opinion of the Treasury or the Authority, is relevant for purposes of, or connected with, any relevant provision;

(f)make such consequential, transitional or supplemental provision as the Treasury consider appropriate for purposes of, or connected with, any relevant provision.

(2)Provision made as a result of sub-paragraph (1)(f) may amend any primary or subordinate legislation, including any provision of, or made under, this Act.

(3)Relevant provision” means any provision—

(a)of section 22 or this Schedule; or

(b)made under that section or this Schedule.

Parliamentary controlU.K.

26(1)This paragraph applies to the first order made under section 22(1).U.K.

(2)This paragraph also applies to any subsequent order made under section 22(1) which contains a statement by the Treasury that, in their opinion, the effect (or one of the effects) of the proposed order would be that an activity which is not a regulated activity would become a regulated activity.

(3)An order to which this paragraph applies—

(a)must be laid before Parliament after being made; and

(b)ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).

(4)Relevant period” means a period of twenty-eight days beginning with the day on which the order is made.

(5)In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.

InterpretationU.K.

27(1)In this Schedule—U.K.

  • buying” includes acquiring for valuable consideration;

  • offering” includes inviting to treat;

  • property” includes currency of the United Kingdom or any other country or territory; and

  • selling” includes disposing for valuable consideration.

(2)In sub-paragraph (1) “disposing” includes—

(a)in the case of an investment consisting of rights under a contract—

(i)surrendering, assigning or converting those rights; or

(ii)assuming the corresponding liabilities under the contract;

(b)in the case of an investment consisting of rights under other arrangements, assuming the corresponding liabilities under the contract or arrangements;

(c)in the case of any other investment, issuing or creating the investment or granting the rights or interests of which it consists.

(3)In this Schedule references to an instrument include references to any record (whether or not in the form of a document).

Sections 31(1)(b) and 37.

SCHEDULE 3U.K. EEA Passport Rights

Modifications etc. (not altering text)

C32Sch. 3 extended (with modifications) (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 25-27; S.I. 2001/3538, art. 2(1)

Sch. 3 extended (with modifications) (Gibraltar) (5.10.2001 for specified purposes otherwise 1.12.2001) by S.I. 2001/3084, arts. 1(1), 2-4; S.I. 2001/3538, art. 2(1)

Sch. 3 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(b), 128(3)(b) (with art. 23(2))

Part IU.K. Defined terms

The single market directivesU.K.

1The single market directives” means—

[F13(a)the banking consolidation directive;]

(c)the insurance directives; F14. . .

[F15(ca) the reinsurance directive;]

(d)the [F16markets in financial instruments directive][F17; F18. . .

(e)the insurance mediation directive][F19; and

(f)the UCITS directive.]

Textual Amendments

F13Sch. 3 para. 1(a) substituted (22.11.2000) for Sch. 3 para. 1(a)(b) by S.I. 2000/2952, reg. 8(5)(a)

F16Words in Sch. 3 para. 1(d) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 2

F19Sch. 3 para. 1(f) and preceding word inserted (13.2.2004) after Sch. 3 para. 1(e) by The Collective Investment Schemes (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/2066), reg. 2(2)(a)(i)

Commencement Information

I3Sch. 3 Pt. I para. 1 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 1 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 1 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 1 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 1 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

The banking co-ordination directivesU.K.

[F202”The banking consolidation directive” means Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions.]

Textual Amendments

Commencement Information

I4Sch. 3 Pt. I para. 2 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 2 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 2 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 2 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 2 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

The insurance directivesU.K.

3(1)The insurance directives” means the first, second and third non-life insurance directives and the [F21life assurance consolidation directive].U.K.

(2)First non-life insurance directive” means the Council Directive of 24 July 1973 on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life assurance (No. 73/239/EEC).

(3)Second non-life insurance directive” means the Council Directive of 22 June 1988 on the co-ordination of laws, etc, and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC (No. 88/357/EEC).

(4)Third non-life insurance directive” means the Council Directive of 18 June 1992 on the co-ordination of laws, etc, and amending Directives 73/239/EEC and 88/357/EEC (No. 92/49/EEC).

[F22(8)Life assurance consolidation directive” means Directive 2002/83/EC of the European Parliament and of the Council of 5th November 2002 concerning life assurance.]

Textual Amendments

Commencement Information

I5Sch. 3 Pt. I para. 3 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 3 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 3 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 3 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 3 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

[F23The reinsurance directiveU.K.

Textual Amendments

F23Sch. 3 para. 3A and cross-heading inserted (10.12.2007) by The Reinsurance Directive Regulations 2007 (S.I. 2007/3253), reg. 2(1), Sch. 1 para. 6(b)

3AThe reinsurance directive” means Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance and amending Council Directives 73/239/EEC, 92/49/EEC as well as Directives 98/78/EC and 2002/83/EC.]

The investment services directiveU.K.

4F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F25The insurance mediation directiveU.K.

Textual Amendments

4AThe insurance mediation directive” means the European Parliament and Council Directive of 9th December 2002 on insurance mediation (No. 2002/92/EC).]

[F26The UCITS directive]U.K.

Textual Amendments

4BThe UCITS directive” means the Council Directive of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (No. 85/611/EEC).

[F27The markets in financial instruments directiveU.K.

4C ”The markets in financial instruments directive” means Directive 2004/39/ EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments. ]

EEA firmU.K.

5EEA firm” means any of the following if it does not have its [F28relevant office] in the United Kingdom—

(a)an investment firm (as defined in [F29Article 4.1.1 of the markets in financial instruments directive]) which is authorised (within the meaning of [F30Article 5]) by its home state regulator;

[F31(b)a credit institution (as defined in Article 4.1 of the banking consolidation directive) which is authorised (within the meaning of Article 4.2) by its home state regulator,

(c)a financial institution (as defined in Article 4.5 of the banking consolidation directive) which is a subsidiary of the kind mentioned in Article 24 and which fulfils the conditions in that Article;]

(d)an undertaking pursuing the activity of direct insurance (within the meaning of [F32Article 2 of the life assurance consolidation directive or Article 1 of the first non-life insurance directive]) which has received authorisation under [F33Article 4 of the life assurance consolidation directive or Article 6 of the first non-life insurance directive] from its home state regulator.[F34; F35. . .

[F36(da)an undertaking pursuing the activity of reinsurance (within the meaning of Article 2.1(a) of the reinsurance directive) which has received authorisation under (or is deemed to be authorised in accordance with) Article 3 of the reinsurance directive from its home state regulator;]

(e)an insurance intermediary (as defined in Article 2.5 of the insurance mediation directive), or a reinsurance intermediary (as defined in Article 2.6) which is registered with its home state regulator under Article 3.][F37; or

(f)a management company (as defined in Article 1a.2 of the UCITS directive) which is authorised (within the meaning of Article 5) by its home state regulator.]

Textual Amendments

F28Words in Sch. 3 para. 5 substituted (14.1.2005) by The Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/1473). {reg. 2(c)(i)}

F29Words in Sch. 3 para. 5(a) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 4(a)

F30Words in Sch. 3 para. 5(a) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 4(b)

Commencement Information

I6Sch. 3 Pt. I para. 5 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 5 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 5 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 5 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2 Sch.; Sch. 3 Pt. I para. 5 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

[F385A In paragraph 5, “ relevant office ” means—

(a)in relation to a firm falling within sub-paragraph (e) of that paragraph which has a registered office, its registered office;

(b)in relation to any other firm, its head office.]

EEA authorisationU.K.

[F396EEA authorisation” means—

(a)in relation to an EEA firm falling within paragraph 5(e), registration with its home state regulator under Article 3 of the insurance mediation directive;

(b)in relation to any other EEA firm, authorisation granted to an EEA firm by its home state regulator for the purpose of the relevant single market directive.]

Textual Amendments

Commencement Information

I7Sch. 3 Pt. I para. 6 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 6 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 6 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 6 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 6 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

EEA rightU.K.

7EEA right” means the entitlement of a person to establish a branch, or provide services, in an EEA State other than that in which he has his [F40relevant office]

(a)in accordance with the Treaty as applied in the EEA; and

(b)subject to the conditions of the relevant single market directive.

Textual Amendments

Commencement Information

I8Sch. 3 Pt. I para. 7 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 7 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 7 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 7 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 7 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

[F417A In paragraph 7, “ relevant office ” means—

(a)in relation to a person who has a registered office and whose entitlement is subject to the conditions of the insurance mediation directive, his registered office;

(b)in relation to any other person, his head office.]

EEA StateU.K.

[F428EEA State” has the meaning given by Schedule 1 to the Interpretation Act 1978.]

Textual Amendments

Commencement Information

I9Sch. 3 Pt. I para. 8 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 8 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 8 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 8 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 8 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Home state regulatorU.K.

9Home state regulator” means the competent authority (within the meaning of the relevant single market directive) of an EEA State (other than the United Kingdom) in relation to the EEA firm concerned.

Commencement Information

I10Sch. 3 Pt. I para. 9 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 9 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 9 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 9 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. I para. 9 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

UK firmU.K.

10UK firm” means a person whose [F43relevant office] is in the UK and who has an EEA right to carry on activity in an EEA State other than the United Kingdom.

Textual Amendments

Commencement Information

I11Sch. 3 Pt. I para. 10 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 10 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 10 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3 Sch. 3 Pt. I para. 10 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2 Sch.; Sch. 3 para. 10 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

[F44[F4410AIn paragraph 10, “relevant office” means—

(a)in relation to a firm whose EEA right derives from the insurance mediation directive and which has a registered office, its registered office;

(b)in relation to any other firm, its head office.]]

[F45UK investment firmU.K.

Textual Amendments

10B”UK investment firm” means a UK firm—

(a)which is an investment firm, and

(b)whose EEA right derives from the markets in financial instruments directive.]

Host state regulatorU.K.

11Host state regulator” means the competent authority (within the meaning of the relevant single market directive) of an EEA State (other than the United Kingdom) in relation to a UK firm’s exercise of EEA rights there.

Commencement Information

I12Sch. 3 Pt. I para. 11 wholly in force at 1.12.2001; Sch. 3 Pt. I para. 11 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. I para. 11 in force for certain purposes (25.2.2001) by S.I. 2001/516, art. 2 Sch. Pts. 2, 3; Sch. 3 Pt. I para. 11 in force for specified purposes (18.6.2001) by S.I. 2001/1820, art. 2 Sch.; Sch. 3 Pt. I para. 11 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Tied agentU.K.

[F4611A”Tied agent” has the meaning given in Article 4.1.25 of the markets in financial instruments directive.

Textual Amendments

Valid from 01/07/2011

Management companyU.K.

[F47[F4711BManagement company” has the meaning given in Article 2.1(b) of the UCITS directive.]

Textual Amendments

F47Sch. 3 paras. 11B, 11C inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(c)

Valid from 01/07/2011

UCITSU.K.

11CUCITS” has the meaning given in Article 1.2 of the UCITS directive.]]

Textual Amendments

F47Sch. 3 paras. 11B, 11C inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(c)

Part IIU.K. Exercise of Passport Rights by EEA Firms

Firms qualifying for authorisationU.K.

12(1)Once an EEA firm which is seeking to establish a branch in the United Kingdom in exercise of an EEA right satisfies the establishment conditions, it qualifies for authorisation.U.K.

(2)Once an EEA firm which is seeking to provide services in the United Kingdom in exercise of an EEA right satisfies the service conditions, it qualifies for authorisation.

[F48(3)If an EEA firm falling within paragraph 5(a) is seeking to use a tied agent established in the United Kingdom in connection with the exercise of an EEA right deriving from the markets in financial instruments directive, this Part of this Schedule applies as if the firm were seeking to establish a branch in the United Kingdom.

(4)But if—

(a)an EEA firm already qualifies for authorisation by virtue of sub-paragraph (1); and

(b)the EEA right which it is exercising derives from the markets in financial instruments directive,

sub-paragraph (3) does not require the firm to satisfy the establishment conditions in respect of its use of the tied agent in question.]

[F49(5)An EEA firm which falls within paragraph 5(da) which establishes a branch in the United Kingdom, or provides services in the United Kingdom, in exercise of an EEA right qualifies for authorisation.

(6)Sub-paragraphs (1) and (2) do not apply to an EEA firm falling within paragraph 5(da).]

Textual Amendments

Commencement Information

I13Sch. 3 Pt. II para. 12 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 12 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 12 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. II para. 12 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. II para. 12 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

EstablishmentU.K.

13(1)[F50If the firm falls within paragraph 5(a), (b), [F51(c), (d) or (f)],] the establishment conditions are that—U.K.

(a)the Authority has received notice (“a consent notice”) from the firm’s home state regulator that it has given the firm consent to establish a branch in the United Kingdom;

(b)the consent notice—

(i)is given in accordance with the relevant single market directive;

(ii)identifies the activities to which consent relates; and

(iii)includes such other information as may be prescribed; F52. . .

[F53(ba)in the case of a firm falling within paragraph 5(a), the Authority has given the firm notice for the purposes of this paragraph or two months have elapsed beginning with the date when the home state regulator gave the consent notice; and]

(c)[F54in the case of a firm falling within paragraph 5(b), (c), (d) or (f),] the firm has been informed of the applicable provisions or two months have elapsed beginning with the date when the Authority received the consent notice.

[F55(1A)If the firm falls within paragraph 5(e), the establishment conditions are that—

(a)the firm has given its home state regulator notice of its intention to establish a branch in the United Kingdom;

(b)the Authority has received notice (“a regulator’s notice”) from the firm’s home state regulator that the firm intends to establish a branch in the United Kingdom;

(c)the firm’s home state regulator has informed the firm that the regulator’s notice has been sent to the Authority; and

(d)one month has elapsed beginning with the date on which the firm’s home state regulator informed the firm that the regulator’s notice has been sent to the Authority.]

(2)If the Authority has received a consent notice, it must—

(a)prepare for the firm’s supervision;

(b)[F56except if the firm falls within paragraph 5(a),] notify the firm of the applicable provisions (if any); and

(c)if the firm falls within paragraph 5(d), notify its home state regulator of the applicable provisions (if any).

(3)A notice under sub-paragraph (2)(b) or (c) must be given before the end of the period of two months beginning with the day on which the Authority received the consent notice.

(4)For the purposes of this paragraph—

  • applicable provisions” means the host state rules with which the firm is required to comply when carrying on a permitted activity through a branch in the United Kingdom;

  • host state rules” means rules—

    (a)

    made in accordance with the relevant single market directive; and

    (b)

    which are the responsibility of the United Kingdom (both as to implementation and as to supervision of compliance) in accordance with that directive; and

  • permitted activity” means an activity identified in the consent notice [F57or regulator’s notice, as the case may be].

Textual Amendments

F52Word in Sch. 3 para. 13(1)(b) omitted (1.4.2007 for certain purposes, otherwise 1.11.2007) by virtue of The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 8(a)(i) (with reg. 6)

F54Words in Sch. 3 para. 13(1)(c) inserted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 8(a)(iii) (with reg. 6)

F56Words in Sch. 3 para. 13(2)(b) inserted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 8(b) (with reg. 6)

F57Sch. 3 para. 13(4): words in definition of "permitted activity" inserted (14.1.2005) by The Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/1473), reg. 3(4)

Modifications etc. (not altering text)

C33Sch. 3 para. 13 extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 96 (with art. 23(2))

Commencement Information

I14Sch. 3 Pt. II para. 13 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 13 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 13 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. II para. 13 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. II para. 13 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

ServicesU.K.

14(1)The service conditions are that—U.K.

(a)the firm has given its home state regulator notice of its intention to provide services in the United Kingdom (“a notice of intention”);

(b)if the firm falls within [F58paragraph 5(a), [F59(d), (e) or (f)]], the Authority has received notice (“a regulator’s notice”) from the firm’s home state regulator containing such information as may be prescribed; F60. . .

[F61(ba)if the firm falls within paragraph 5(b) and is seeking to provide services in exercise of the right under Article 31.5 of the markets in financial instruments directive, the Authority has received notice (“a regulator's notice”) from the firm's home state regulator stating that the firm intends to exercise that right in the United Kingdom;]

(c)if the firm falls within [F62paragraph 5(d) or (e)], its home state regulator has informed it that the regulator’s notice has been sent to the Authority.[F63; and

(d)if the firm falls within paragraph 5(e), one month has elapsed beginning with the date on which the firm’s home state regulator informed the firm that the regulator’s notice has been sent to the Authority.]

(2)If the Authority has received a regulator’s notice or, where none is required by sub-paragraph (1), has been informed of the firm’s intention to provide services in the United Kingdom, it must [F64, unless the firm falls within paragraph 5(e),]

(a)prepare for the firm’s supervision; and

(b)notify the firm of the applicable provisions (if any).

[F65(2A)Sub-paragraph (2)(b) does not apply in the case of a firm falling within paragraph 5(a).]

(3)A notice under sub-paragraph (2)(b) must be given before the end of the period of two months beginning on the day on which the Authority received the regulator’s notice, or was informed of the firm’s intention.

(4)For the purposes of this paragraph—

  • applicable provisions” means the host state rules with which the firm is required to comply when carrying on a permitted activity by providing services in the United Kingdom;

  • host state rules” means rules—

    (a)

    made in accordance with the relevant single market directive; and

    (b)

    which are the responsibility of the United Kingdom (both as to implementation and as to supervision of compliance) in accordance with that directive; and

  • permitted activity” means an activity identified in—

    (a)

    the regulator’s notice; or

    (b)

    where none is required by sub-paragraph (1), the notice of intention.

Textual Amendments

Modifications etc. (not altering text)

C34Sch. 3 para. 14(1) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 97 (with art. 23(2))

Commencement Information

I15Sch. 3 Pt. II para. 14 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 14 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 14 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. II para. 14 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. II para. 14 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Grant of permissionU.K.

15(1)On qualifying for authorisation as a result of [F66paragraph 12(1), (2) or (3)], a firm has, in respect of each permitted activity which is a regulated activity, permission to carry it on through its United Kingdom branch (if it satisfies the establishment conditions) or by providing services in the United Kingdom (if it satisfies the service conditions).U.K.

[F67(1A)Sub-paragraph (1) is to be read subject to paragraph 15A(3).]

(2)The permission is to be treated as being on terms equivalent to those appearing from the consent notice, regulator’s notice or notice of intention.

(3)Sections [F6821 and 39(1)] of the M9Consumer Credit Act 1974 (business requiring a licence under that Act) do not apply in relation to the carrying on of a permitted activity which is Consumer Credit Act business by a firm which qualifies for authorisation as a result of paragraph 12, unless [F69the Office of Fair Trading] has exercised the power conferred on [F70it] by section 203 in relation to the firm.

(4)Consumer Credit Act business” has the same meaning as in section 203.

[F71(5)A firm which qualifies for authorisation as a result of paragraph 12(5) has, in respect of each permitted activity which is a regulated activity, permission to carry it on through its United Kingdom branch or by providing services in the United Kingdom.

(6)The permission is to be treated as being on terms equivalent to those appearing in the authorisation granted to the firm under Article 3 of the reinsurance directive by its home state regulator (“its home authorisation”).

(7)For the purposes of sub-paragraph (5), “permitted activity” means an activity which the firm is permitted to carry on under its home authorisation.]

Textual Amendments

F68Words in Sch. 3 para. 15(3) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. 33(9), 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F69Words in Sch. 3 para. 15(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278(1), 279, Sch. 25 para. 40(19)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

F70Word in Sch. 3 para. 15(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278(1), 279, Sch. 25 para. 40(19)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

Commencement Information

I16Sch. 3 Pt. II para. 15 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 15 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 15 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. II para. 15 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. II para. 15 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Marginal Citations

Power to restrict permission of management companiesU.K.

15A(1)Sub-paragraph (2) applies if—

(a)a firm falling within paragraph 5(f) qualifies for authorisation as a result of paragraph 12(1) (establishment conditions satisfied); but

(b)the Authority determines that the way in which the firm intends to invite persons in the United Kingdom to become participants in any collective investment scheme which that firm manages does not comply with the law in force in the United Kingdom.

(2)The Authority may give a notice to the firm and the firm’s home state regulator of the Authority’s determination under sub-paragraph (1)(b).

(3)Paragraph 15(1) does not give a firm to which the Authority has given (and not withdrawn) a notice under sub-paragraph (2) permission to carry on through the firm’s United Kingdom branch the regulated activity of dealing in units in the collective investment schemes which the firm manages.

(4)Any notice given under sub-paragraph (2) must be given before the end of the period of two months beginning with the day on which the Authority received the consent notice.

(5)Sections 264(4) and 265(1), (2) and (4) apply to a notice given under sub-paragraph (2) as they apply to a notice given by the Authority under section 264(2).

(6)If a decision notice is given to the firm under section 265(4), by virtue of sub-paragraph (5), the firm may refer the matter to the Tribunal.

(7)In sub-paragraph (3)—

(a)units” has the meaning given by section 237(2); and

(b)the reference to “dealing in” units in a collective investment scheme must be read with—

(i)section 22;

(ii)any relevant order under that section; and

(iii)Schedule 2.

Valid from 01/07/2011

Representations and references to the TribunalU.K.

[F72[F73[F7315B(1)Within a reasonable time after the end of the period for making representations, the Authority must decide, in the light of any representations made to it during that period by a person to whom notice has been given under paragraph 15A(4), whether to withdraw the notice.

(2)If the Authority decides not to withdraw its notice, it must—

(a)give a decision notice to each person to whom the notice under paragraph 15A(4) was given, and

(b)inform the firm's home state regulator and the Commission that authorisation has been refused, and of the grounds for the refusal.

(3)The management company to whom the decision notice is given may refer the matter to the Tribunal.]

Textual Amendments

F73Sch. 3 paras. 15A-15C substituted for Sch. 3 para. 15A (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(d)

Valid from 01/07/2011

Information to home state regulatorU.K.

15C(1)Where an EEA firm falling within paragraph 5(f) has applied to manage a UCITS established in the United Kingdom, the Authority must without delay inform the home state regulator of that firm of any problem of which they are aware that may materially affect the ability of the firm—

(a)to perform its duties properly, or

(b)to comply with the home state rules.

(2)In sub-paragraph (1), “home state rules” means rules—

(a)made by the EEA State concerned in accordance with the UCITS directive; and

(b)which are the responsibility of that EEA State (both as to implementation and as to supervision of compliance) in accordance with that directive.]]

Textual Amendments

F73Sch. 3 paras. 15A-15C substituted for Sch. 3 para. 15A (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(d)

Effect of carrying on regulated activity when not qualified for authorisationU.K.

16(1)This paragraph applies to an EEA firm which is not qualified for authorisation under paragraph 12.U.K.

(2)Section 26 does not apply to an agreement entered into by the firm.

(3)Section 27 does not apply to an agreement in relation to which the firm is a third party for the purposes of that section.

(4)Section 29 does not apply to an agreement in relation to which the firm is the deposit-taker.

Commencement Information

I17Sch. 3 Pt. II para. 16 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 16 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 16 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. II para. 16 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. II para. 16 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Continuing regulation of EEA firmsU.K.

17Regulations may—

(a)modify any provision of this Act which is an applicable provision (within the meaning of paragraph 13 or 14) in its application to an EEA firm qualifying for authorisation;

(b)make provision as to any change (or proposed change) of a prescribed kind relating to an EEA firm or to an activity that it carries on in the United Kingdom and as to the procedure to be followed in relation to such cases;

(c)provide that the Authority may treat an EEA firm’s notification that it is to cease to carry on regulated activity in the United Kingdom as a request for cancellation of its qualification for authorisation under this Schedule.

Commencement Information

I18Sch. 3 Pt. II para. 17 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 17 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 17 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. II para. 17 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. II para. 17 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Giving up right to authorisationU.K.

18Regulations may provide that in prescribed circumstances an EEA firm falling within paragraph 5(c) may, on following the prescribed procedure—

(a)have its qualification for authorisation under this Schedule cancelled; and

(b)seek to become an authorised person by applying for a Part IV permission.

Commencement Information

I19Sch. 3 Pt. II para. 18 wholly in force at 1.12.2001; Sch. 3 Pt. II para. 18 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. II para. 18 in force for specified purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. I para. 18 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2 Sch.; Sch. 3 Pt. II para. 18 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Part IIIU.K. Exercise of Passport Rights by UK Firms

EstablishmentU.K.

19(1)[F74Subject to [F75sub-paragraphs (5ZA) and (5A)],] a UK firm may not exercise an EEA right to establish a branch unless three conditions are satisfied.

(2)The first is that the firm has given the Authority, in the specified way, notice of its intention to establish a branch (“a notice of intention”) which—

(a)identifies the activities which it seeks to carry on through the branch; and

(b)includes such other information as may be specified.

(3)[F76Subject to sub-paragraph (5B), the] activities identified in a notice of intention may include activities which are not regulated activities.

(4)The second is that the Authority has given notice in specified terms (“a consent notice”) to the host state regulator.

[F77(5)The third is—

(a)if the EEA right in question derives from the insurance mediation directive, that one month has elapsed beginning with the date on which the firm received notice, in accordance with sub-paragraph (11), that the Authority has given a consent notice;

(b)in any other case, that either—

(i)the host state regulator has notified the firm (or, where the EEA right in question derives from any of the insurance directives, the Authority) of the applicable provisions; or

(ii)two months have elapsed beginning with the date on which the Authority gave the consent notice.]

[F78(5ZA)This paragraph does not apply to a UK firm having an EEA right which is subject to the conditions of the reinsurance directive.]

[F79(5A)If—

(a)the EEA right in question derives from the insurance mediation directive, and

(b)the EEA State in which the firm intends to establish a branch has not notified the Commission, in accordance with Article 6(2) of that directive, of its wish to be informed of the intention of any UK firm to establish a branch in its territory,

the second and third conditions do not apply (and so the firm may establish the branch to which its notice of intention relates as soon as the first condition is satisfied).]

[F80(5B)If the firm is a UK investment firm, a notice of intention may not include ancillary services unless such services are to be provided in connection with the carrying on of one or more investment services and activities.

(5C)In sub-paragraph (5B) “ancillary services” has the meaning given in Article 4.1.3 of the markets in financial instruments directive.]

(6)If the firm’s EEA right derives from [F81the banking consolidation directive, [F82the UCITS directive or, in the case of a credit institution authorised under the banking consolidation directive, the markets in financial instruments directive]] and the first condition is satisfied, the Authority must give a consent notice to the host state regulator unless it has reason to doubt the adequacy of the firm’s resources or its administrative structure.

(7)If the firm’s EEA right derives from any of the insurance directives and the first condition is satisfied, the Authority must give a consent notice unless it has reason—

(a)to doubt the adequacy of the firm’s resources or its administrative structure, or

(b)to question the reputation, qualifications or experience of the directors or managers of the firm or the person proposed as the branch’s authorised agent for the purposes of those directives,

in relation to the business to be conducted through the proposed branch.

[F83(7A)If—

(a)the firm’s EEA right derives from the insurance mediation directive,

(b)the first condition is satisfied, and

(c)the second condition applies,

the Authority must give a consent notice, and must do so within one month beginning with the date on which it received the firm’s notice of intention.]

[F84(7B)If the firm is a UK investment firm and the first condition is satisfied, the Authority must give a consent notice to the host state regulator within three months beginning with the date on which it received the firm's notice of intention unless the Authority has reason to doubt the adequacy of the firm's resources or its administrative structure.]

(8)If the Authority proposes to refuse to give a consent notice it must give the firm concerned a warning notice.

(9)If the firm’s EEA right derives from any of the insurance directives and the host state regulator has notified it of the applicable provisions, the Authority must inform the firm of those provisions.

(10)Rules may specify the procedure to be followed by the Authority in exercising its functions under this paragraph.

(11)If the Authority gives a consent notice it must give written notice that it has done so to the firm concerned.

(12)If the Authority decides to refuse to give a consent notice—

(a)it must, [F85within the relevant period], give the person who gave that notice a decision notice to that effect; and

(b)that person may refer the matter to the Tribunal.

[F86(12A)In sub-paragraph (12), “the relevant period” means—

(a)if the firm’s EEA right derives from the UCITS directive, two months beginning with the date on which the Authority received the notice of intention;

(b)in any other case, three months beginning with that date.]

(13)In this paragraph, “applicable provisions” means the host state rules with which the firm will be required to comply when conducting business through the proposed branch in the EEA State concerned.

(14)In sub-paragraph (13), “host state rules” means rules—

(a)made in accordance with the relevant single market directive; and

(b)which are the responsibility of the EEA State concerned (both as to implementation and as to supervision of compliance) in accordance with that directive.

(15)Specified” means specified in rules.

Textual Amendments

F75Words in Sch. 3 para. 19(1) substituted (10.12.2007) by The Reinsurance Directive Regulations 2007 (S.I. 2007/3253), reg. 2(1), Sch. 1 para. 6(f)

F76Words in Sch. 3 para. 19(3) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 10(a)

F82Words in Sch. 3 para. 19(6) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 10(c) (with reg. 8)

Modifications etc. (not altering text)

C35Sch. 3 Pt. III para. 19 applied (1.12.2001) by S.I. 2001/3592, arts. 1(2), 104(3)(a) (with art. 23(2))

Sch. 3 Pt. III para. 19 modified (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 77(1)-(3)(7); S.I. 2001/3538, art. 2(1)

C36Sch. 3 Pt. III para. 19(2)(4)(6)(7) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 100 (with art. 23(2))

Commencement Information

I20Sch. 3 Pt. III para. 19 wholly in force at 1.12.2001; Sch. 3 Pt. III para. 19 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. III para. 19 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. III para. 19 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. III para. 19 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; Sch. 3 Pt. III para. 19 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

ServicesU.K.

20(1)[F87Subject to sub-paragraph (4D), ] a UK firm may not exercise an EEA right to provide services unless the firm has given the Authority, in the specified way, notice of its intention to provide services (“a notice of intention”) which—

(a)identifies the activities which it seeks to carry out by way of provision of services; and

(b)includes such other information as may be specified.

(2)[F88Subject to sub-paragraph (2A), the] activities identified in a notice of intention may include activities which are not regulated activities.

[F89(2A)If the firm is a UK investment firm, a notice of intention may not include ancillary services unless such services are to be provided in connection with the carrying on of one or more investment services and activities.

(2B)In sub-paragraph (2A) “ancillary services” has the meaning given in Article 4.1.3 of the markets in financial instruments directive.]

(3)If the firm’s EEA right derives from [F90the banking consolidation directive, [F91markets in financial instruments directive] or the UCITS directive], the Authority must, within one month of receiving a notice of intention, send a copy of it to the host state regulator [F92with such other information as may be specified].

[F93(3A)If the firm’s EEA right derives from any of the insurance directives, the Authority must, within one month of receiving the notice of intention—

(a)give notice in specified terms (“a consent notice”) to the host state regulator; or

(b)give written notice to the firm of—

(i)its refusal to give a consent notice; and

(ii)its reasons for that refusal.]

[F94(3B)If the firm’s EEA right derives from the insurance mediation directive and the EEA State in which the firm intends to provide services has notified the Commission, in accordance with Article 6(2) of that directive, of its wish to be informed of the intention of any UK firm to provide services in its territory—

(a)the Authority must, within one month of receiving the notice of intention, send a copy of it to the host state regulator;

(b)the Authority, when it sends the copy in accordance with sub-paragraph (a), must give written notice to the firm concerned that it has done so; and

(c)the firm concerned must not provide the services to which its notice of intention relates until one month, beginning with the date on which it receives the notice under sub-paragraph (b), has elapsed.]

(4)When the Authority sends the copy under sub-paragraph (3) [F95or gives a consent notice], it must give written notice to the firm concerned.

[F96(4A)If the firm is given notice under sub-paragraph (3A)(b), it may refer the matter to the Tribunal.

(4B)If the firm’s EEA right derives from any of the insurance directives [F97or from the markets in financial instruments directive], it must not provide the services to which its notice of intention relates until it has received written notice under sub-paragraph (4).

[F98(4BA)If the firm's EEA right derives from the markets in financial instruments directive, the Authority must comply as soon as reasonably practicable with a request for information under the second sub-paragraph of Article 31.6 of that directive from the host state regulator.]

(4C)Rules may specify the procedure to be followed by the Authority under this paragraph.]

[F99(4D)This paragraph does not apply to a UK firm having an EEA right which is subject to the conditions of the reinsurance directive.]

F100(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Specified” means specified in rules.

Textual Amendments

F88Words in Sch. 3 para. 20(2) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 11(a)

F91Words in Sch. 3 para. 20(3) substituted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 11(c)

F93Sch. 3 Pt. III para. 20(3A) inserted (30.4.2001) by S.I. 2001/1376, regs. 1, 2(2)

F95Words in Sch. 3 Pt. III para. 20(4) inserted (30.4.2001) by S.I. 2001/1376, regs. 1, 2(3)

F96Sch. 3 Pt. III para. 20(4A)-(4C) inserted (30.4.2001) by S.I. 2001/1376, regs. 1, 2(4)

F97Words in Sch. 3 para. 20(4B) inserted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 11(d)

F100Sch. 3 Pt. III para. 20(5) omitted (30.4.2001) by virtue of S.I. 2001/1376, regs. 1, 2(5)

Modifications etc. (not altering text)

C37Sch. 3 Pt. III para. 20(1) modified (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 77(1)(4)-(7); S.I. 2001/3538, art. 2(1)

C38Sch. 3 Pt. III para. 20(1)(3A)(a) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 101 (with art. 23(2))

Commencement Information

I21Sch. 3 Pt. III para. 20 wholly in force at 1.12.2001; Sch. 3 Pt. III para. 20 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. III para. 20 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. III para. 20 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. III para. 20 in force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; Sch. 3 Pt. III para. 20 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Valid from 01/07/2011

Information for host state regulatorU.K.

[F101[F10120ZA(1)The Authority must keep a record of the confirmation and other information provided to the host state regulator under paragraph 19(4) or paragraph 20(3C) in relation to a UK firm which is a management company.

(2)The Authority must inform the host state regulator whenever there is a change in the confirmation or other information referred to in sub-paragraph (1).]]

Textual Amendments

F101Sch. 3 para. 20ZA inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(l)

Tied agentsU.K.

[F10220A(1)If a UK investment firm is seeking to use a tied agent established in an EEA State (other than the United Kingdom) in connection with the exercise of an EEA right deriving from the markets in financial instruments directive, this Part of this Schedule applies as if the firm were seeking to establish a branch in that State.U.K.

(2)But if—

(a)a UK investment firm has already established a branch in an EEA State other than the United Kingdom in accordance with paragraph 19; and

(b)the EEA right which it is exercising derives from the markets in financial instruments directive,

paragraph 19 does not apply in respect of its use of the tied agent in question.

Textual Amendments

F102Sch. 3 para. 20A and preceding cross-heading inserted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 12

Valid from 01/07/2011

Notice of intention to marketU.K.

[F103[F10320B(1)The operator of a UCITS established in the United Kingdom may not exercise an EEA right to market the units of that UCITS in the territory of another EEA State unless the operator has given the Authority, in the specified way, notice of its intention to market the units (“notice of intention”) which contains, and is accompanied by, such information as may be specified in rules, or in regulations made by the European Commission under the UCITS directive.

(2)The Authority must ensure that the information referred to in sub-paragraph (1) may be transmitted to it electronically.

(3)The Authority must verify whether the information submitted with the notice of intention is complete and, within 10 days of the date on which the Authority received the complete information required, send to the host state regulator—

(a)a copy of the notice of intention;

(b)the accompanying information; and

(c)confirmation that the operator and the UCITS fulfil the conditions imposed by the UCITS directive.

(4)The Authority must ensure that the host state regulator has electronic access to the information and documents referred to in sub-paragraph (3).

(5)The Authority must notify the operator immediately that the information referred to in sub-paragraph (3) has been sent to the competent authorities of the host state regulator.

(6)The operator may market the units of the UCITS in the territory of the host state regulator from the moment it receives the notification referred to in sub-paragraph (5).

(7)In this paragraph—

  • operator” has the same meaning as in section 237 of this Act;

  • specified” means specified in rules.]]]

Textual Amendments

F102Sch. 3 para. 20A and preceding cross-heading inserted (1.4.2007 for certain purposes, otherwise 1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(4), Sch. 4 para. 12

F103Sch. 3 para. 20B inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(m)

Offence relating to exercise of passport rightsU.K.

21(1)If a UK firm which is not an authorised person contravenes the prohibition imposed by—U.K.

(a)sub-paragraph (1) of paragraph 19, or

(b)[F104sub-paragraph (1), (3B)(c) or (4B)] of paragraph 20,

it is guilty of an offence.

(2)A firm guilty of an offence under sub-paragraph (1) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum; or

(b)on conviction on indictment, to a fine.

(3)In proceedings for an offence under sub-paragraph (1), it is a defence for the firm to show that it took all reasonable precautions and exercised all due diligence to avoid committing the offence.

Textual Amendments

Commencement Information

I22Sch. 3 Pt. III para. 21 wholly in force at 1.12.2001; Sch. 3 Pt. III para. 21 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. III para. 21 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. III para. 21 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. III para. 21 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Continuing regulation of UK firmsU.K.

22(1)Regulations may make such provision as the Treasury consider appropriate in relation to a UK firm’s exercise of EEA rights, and may in particular provide for the application (with or without modification) of any provision of, or made under, this Act in relation to an activity of a UK firm.U.K.

(2)Regulations may—

(a)make provision as to any change (or proposed change) of a prescribed kind relating to a UK firm or to an activity that it carries on and as to the procedure to be followed in relation to such cases;

(b)make provision with respect to the consequences of the firm’s failure to comply with a provision of the regulations.

(3)Where a provision of the kind mentioned in sub-paragraph (2) requires the Authority’s consent to a change (or proposed change)—

(a)consent may be refused only on prescribed grounds; and

(b)if the Authority decides to refuse consent, the firm concerned may refer the matter to the Tribunal.

Commencement Information

I23Sch. 3 Pt. III para. 22 wholly in force at 1.12.2001; Sch. 3 Pt. III para. 22 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. III para. 22 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. III para. 22 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. III para. 22 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

23(1)[F105Sub-paragraphs (2) and (2A) apply] if a UK firm—U.K.

(a)has a Part IV permission; and

(b)is exercising an EEA right to carry on any Consumer Credit Act business in an EEA State other than the United Kingdom.

(2)The Authority may exercise its power under section 45 in respect of the firm if [F106the Office of Fair Trading] has informed the Authority that—

(a)the firm,

(b)any of the firm’s employees, agents or associates (whether past or present), or

(c)if the firm is a body corporate, a controller of the firm or an associate of such a controller,

has done any of the things specified in paragraphs [F107(a) to (e) of section 25(2A)] of the M10Consumer Credit Act 1974.

[F108(2A)The Authority may also exercise its power under section 45 in respect of the firm if the Office of Fair Trading has informed the Authority that it has concerns about any of the following—

(a)the firm's skills, knowledge and experience in relation to Consumer Credit Act businesses;

(b)such skills, knowledge and experience of other persons who are participating in any Consumer Credit Act business being carried on by the firm;

(c)practices and procedures that the firm is implementing in connection with any such business.]

(3)Associate”, “Consumer Credit Act business” and “controller” have the same meaning as in section 203.

Textual Amendments

F105Words in Sch. 3 para. 23(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. 33(10), 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F106Words in Sch. 3 para. 23(2) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278(1), 279, Sch. 25 para. 40(19)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F107Words in Sch. 3 para. 23(2) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. 33(11), 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Commencement Information

I24Sch. 3 Pt. III para. 23 wholly in force at 1.12.2001; Sch. 3 Pt. III para. 23 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. III para. 23 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c) Sch. Pts. 2, 3; Sch. 3 Pt. III para. 23 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. III para. 23 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Marginal Citations

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

(a)is not required to have a Part IV permission in relation to the business which it is carrying on; and

(b)is exercising the right conferred by [F109[F110Article 24] of the banking consolidation directive] to carry on that business in an EEA State other than the United Kingdom.

(2)If requested to do so by the host state regulator in the EEA State in which the UK firm’s business is being carried on, the Authority may impose any requirement in relation to the firm which it could impose if—

(a)the firm had a Part IV permission in relation to the business which it is carrying on; and

(b)the Authority was entitled to exercise its power under that Part to vary that permission.

Textual Amendments

F109Words in Sch. 3 Pt. III para. 24(1)(b) substituted (22.11.2000) by S.I. 2000/2952, reg. 8(5)(f)

F110Words in Sch. 3 para. 24(1)(b) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 29(1), Sch. 3 para. 2(4)

Commencement Information

I25Sch. 3 Pt. III para. 24 wholly in force at 1.12.2001; Sch. 3 Pt. III para. 24 not in force at Royal Assent see s. 431(2); Sch. 3 Pt. III para. 24 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b)(c), Sch. Pts. 2, 3; Sch. 3 Pt. III para. 24 in force for specified purposes at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.; Sch. 3 Pt. III para. 24 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Information to be included in the public recordU.K.

[F11125The Authority must include in the record that it maintains under section 347 in relation to any UK firm whose EEA right derives from the insurance mediation directive information as to each EEA State in which the UK firm, in accordance with such a right—

(a)has established a branch; or

(b)is providing services.

Textual Amendments

F111Sch. 3 para. 25 and preceding cross-heading inserted (14.1.2005) by The Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/1473), reg. 7

Valid from 01/07/2011

UK management companies: delegation of functionsU.K.

[F112[F11226Where a UK firm which is a management company and is providing services in the exercise of an EEA right to an EEA UCITS informs the Authority that it has delegated one or more of its functions to a third party, the Authority must transmit that information to the home state regulator of the EEA UCITS without delay.]

Textual Amendments

F111Sch. 3 para. 25 and preceding cross-heading inserted (14.1.2005) by The Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/1473), reg. 7

F112Sch. 3 paras. 26-28 inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(n)

Valid from 01/07/2011

UK management companies: withdrawal of authorisationU.K.

27Where a UK firm which is a management company has exercised an EEA right deriving from the UCITS directive to establish a branch or to provide services in another EEA State, the Authority must consult the home state regulator of any UCITS managed by that management company before taking a decision to withdraw the authorisation of the management company under section 33.

Textual Amendments

F111Sch. 3 para. 25 and preceding cross-heading inserted (14.1.2005) by The Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/1473), reg. 7

F112Sch. 3 paras. 26-28 inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(n)

Valid from 01/07/2011

Management companies: request for informationU.K.

28(1)Where a UK firm has applied to manage a UCITS which is established in another EEA State, the home state regulator of the UCITS may—

(a)request further information from the Authority regarding the documents referred to in Article 20.1 of the UCITS directive, and

(b)ask the Authority whether the type of UCITS for which the UK firm has applied to provide its services falls within the scope of the authorisation of the UK firm.

(2)The Authority must respond to a request under sub-paragraph (1)(a) or (b) within 10 working days of the date on which the request was received.]]

Textual Amendments

F111Sch. 3 para. 25 and preceding cross-heading inserted (14.1.2005) by The Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/1473), reg. 7

F112Sch. 3 paras. 26-28 inserted (1.7.2011) by The Undertakings for Collective Investment in Transferable Securities Regulations 2011 (S.I. 2011/1613), reg. 2(33)(n)

Section 31(1)(c).

SCHEDULE 4U.K. Treaty Rights

Modifications etc. (not altering text)

C39Sch. 4 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 28-32; S.I. 2001/3538, art. 2(1)

DefinitionsU.K.

1In this Schedule—

  • consumers” means persons who are consumers for the purposes of section 138;

  • Treaty firm” means a person—

    (a)

    whose head office is situated in an EEA State (its “home state”) other than the United Kingdom; and

    (b)

    which is recognised under the law of that State as its national; and

  • home state regulator”, in relation to a Treaty firm, means the competent authority of the firm’s home state for the purpose of its home state authorisation (as to which see paragraph 3(1)(a)).

Firms qualifying for authorisationU.K.

2Once a Treaty firm which is seeking to carry on a regulated activity satisfies the conditions set out in paragraph 3(1), it qualifies for authorisation.

Exercise of Treaty rightsU.K.

3(1)The conditions are that—

(a)the firm has received authorisation (“home state authorisation”) under the law of its home state to carry on the regulated activity in question (“the permitted activity”);

(b)the relevant provisions of the law of the firm’s home state—

(i)afford equivalent protection; or

(ii)satisfy the conditions laid down by a Community instrument for the co-ordination or approximation of laws, regulations or administrative provisions of member States relating to the carrying on of that activity; and

(c)the firm has no EEA right to carry on that activity in the manner in which it is seeking to carry it on.

(2)A firm is not to be regarded as having home state authorisation unless its home state regulator has so informed the Authority in writing.

(3)Provisions afford equivalent protection if, in relation to the firm’s carrying on of the permitted activity, they afford consumers protection which is at least equivalent to that afforded by or under this Act in relation to that activity.

(4)A certificate issued by the Treasury that the provisions of the law of a particular EEA State afford equivalent protection in relation to the activities specified in the certificate is conclusive evidence of that fact.

Commencement Information

I26Sch. 4 para. 3 wholly in force at 1.12.2001; Sch. 4 para. 3 not in force at Royal Assent see s. 431(2); Sch. 4 para. 3 force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; Sch. 4 para. 3 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

PermissionU.K.

4(1)On qualifying for authorisation under this Schedule, a Treaty firm has permission to carry on each permitted activity through its United Kingdom branch or by providing services in the United Kingdom.U.K.

(2)The permission is to be treated as being on terms equivalent to those to which the firm’s home state authorisation is subject.

(3)If, on qualifying for authorisation under this Schedule, a firm has a Part IV permission which includes permission to carry on a permitted activity, the Authority must give a direction cancelling the permission so far as it relates to that activity.

(4)The Authority need not give a direction under sub-paragraph (3) if it considers that there are good reasons for not doing so.

Notice to AuthorityU.K.

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

(a)qualifies for authorisation under this Schedule, but

(b)is not carrying on in the United Kingdom the regulated activity, or any of the regulated activities, which it has permission to carry on there.

(2)At least seven days before it begins to carry on such a regulated activity, the firm must give the Authority written notice of its intention to do so.

(3)If a Treaty firm to which sub-paragraph (2) applies has given notice under that sub-paragraph, it need not give such a notice if it again becomes a firm to which that sub-paragraph applies.

(4)Subsections (1), (3) and (6) of section 51 apply to a notice under sub-paragraph (2) as they apply to an application for a Part IV permission.

Modifications etc. (not altering text)

C40Sch. 4 para. 5(1) amended (temp. from 3.9.2001 to 1.12.2001) by S.I. 2001/2659, arts. 1(2), 3(12); S.I. 2001/3538, art. 2(1)

Commencement Information

I27Sch. 4 para. 5 wholly in force at 1.12.2001; Sch. 4 para. 5 not in force at Royal Assent see s. 431(2); Sch. 4 para. 5 force for specified purposes at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2; Sch. 4 para. 5 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

OffencesU.K.

6(1)A person who contravenes paragraph 5(2) is guilty of an offence.U.K.

(2)In proceedings against a person for an offence under sub-paragraph (1) it is a defence for him to show that he took all reasonable precautions and exercised all due diligence to avoid committing the offence.

(3)A person is guilty of an offence if in, or in connection with, a notice given by him under paragraph 5(2) he—

(a)provides information which he knows to be false or misleading in a material particular; or

(b)recklessly provides information which is false or misleading in a material particular.

(4)A person guilty of an offence under this paragraph is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to a fine.

Section 36.

SCHEDULE 5U.K. Persons Concerned in Collective Investment Schemes

AuthorisationU.K.

1(1)A person who for the time being is an operator, trustee or depositary of a recognised collective investment scheme is an authorised person.U.K.

(2)Recognised” means recognised by virtue of section 264.

(3)An authorised open-ended investment company is an authorised person.

[F113(4)A body—

(a)incorporated by virtue of regulations made under section 1 of the Open-Ended Investment Companies Act (Northern Ireland) 2002 in respect of which an authorisation order is in force, and

(b)to which the UCITS directive applies,

is an authorised person.

(5)Authorisation order” means an order made under (or having effect as made under) any provision of those regulations which is made by virtue of section 1(2)(1) of that Act (provision corresponding to Chapter 3 of Part 17 of the Act).]

PermissionU.K.

2(1)A person authorised as a result of paragraph 1(1) has permission to carry on, so far as it is a regulated activity—U.K.

(a)any activity, appropriate to the capacity in which he acts in relation to the scheme, of the kind described in paragraph 8 of Schedule 2;

(b)any activity in connection with, or for the purposes of, the scheme.

(2)A person authorised as a result of paragraph 1(3) [F114or (4)] has permission to carry on, so far as it is a regulated activity—

(a)the operation of the scheme;

(b)any activity in connection with, or for the purposes of, the operation of the scheme.

Section 41.

SCHEDULE 6U.K. Threshold Conditions

Modifications etc. (not altering text)

Part IU.K. Part IV Permission

Legal statusU.K.

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 [F115(other than a limited liability partnership)], a registered friendly society or a member of Lloyd’s.U.K.

(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 [F116or issuing electronic money] , it must be—

(a)a body corporate; or

(b)a partnership.

Location of officesU.K.

2(1)[F117Subject to [F118sub-paragraphs (2A) and (3)],] if the person concerned is a body corporate constituted under the law of any part of the United Kingdom—U.K.

(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.

[F119(2A)If—

(a)the regulated activity concerned is any of the investment services and activities, and

(b)the person concerned is a body corporate with no registered office,

sub-paragraph (2B) applies in place of sub-paragraph (1).

(2B)If the person concerned has its head office in the United Kingdom, it must carry on business in the United Kingdom.]

[F120(3)If the regulated activity concerned is an insurance mediation activity, sub-paragraph (1) does not apply.

(4)If the regulated activity concerned is an insurance mediation activity, the person concerned—

(a)if he is a body corporate constituted under the law of any part of the United Kingdom, must have its registered office, or if it has no registered office, its head office, in the United Kingdom;

(b)if he is a natural person, is to be treated for the purposes of sub-paragraph (2), as having his head office in the United Kingdom if his residence is situated there.

(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 sub-paragraph (a) to (d).

(6)Paragraph (5) must be read with—

(a)section 22;

(b)any relevant order under that section; and

(c)Schedule 2.]

Appointment of claims representativesU.K.

[F121[F1212A(1)If it appears to the Authority that—

(a)the regulated activity that the person concerned is carrying on, or is seeking to carry on, is the effecting or carrying out of contracts of insurance, and

(b)contracts of insurance against damage arising out of or in connection with the use of motor vehicles on land (other than carrier’s liability) are being, or will be, effected or carried out by the person concerned,

that person must have a claims representative in each EEA State other than the United Kingdom.

(2)For the purposes of sub-paragraph (1)(b), contracts of reinsurance are to be disregarded.

(3)A claims representative is a person with responsibility for handling and settling claims arising from accidents of the kind mentioned in Article 1(2) of the fourth motor insurance directive.

(4)In this paragraph “fourth motor insurance directive” means Directive 2000/26/EC of the European Parliament and of the Council of 16th May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC.]]

Close linksU.K.

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

(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.

Modifications etc. (not altering text)

Adequate resourcesU.K.

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.U.K.

(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.

Modifications etc. (not altering text)

SuitabilityU.K.

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.

Modifications etc. (not altering text)

Part IIU.K. Authorisation

Authorisation under Schedule 3U.K.

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 4U.K.

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 IIIU.K. Additional 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.U.K.

(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.

Commencement Information

I28Sch. 6 Pt. III para. 8 wholly in force at 3.9.2001; Sch. 6 Pt. III para. 8 not in force at Royal Assent see s. 431(2); Sch. 6 Pt. III para. 8 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b), Sch. Pt. 2; Sch. 6 Pt. III para. 8 in force in so far as not already in force at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2

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.

Commencement Information

I29Sch. 6 Pt. III para. 9 wholly in force at 3.9.2001; Sch. 6 Pt. III para. 9 not in force at Royal Assent see s. 431(2); Sch. 6 Pt. III para. 9 in force for certain purposes at 25.2.2001 by S.I. 2001/516, art. 2(b), Sch. Pt. 2; Sch. 6 Pt. III para. 9 in force in so far as not already in force at 3.9.2001 by S.I. 2001/2632, art. 2(2), Sch. Pt. 2

Section 72(2).

SCHEDULE 7U.K.

The Authority as Competent Authority for Part VIU.K.

GeneralU.K.

1This Act applies in relation to the Authority when it is exercising functions under Part VI as the competent authority subject to the following modifications.

The Authority’s general functionsU.K.

2In section 2—

(a)subsection (4)(a) does not apply to [F122Part 6 rules];

(b)subsection (4)(c) does not apply to general guidance given in relation to Part VI; and

(c)subsection (4)(d) does not apply to functions under Part VI.

Duty to consultU.K.

3Section 8 does not apply.

RulesU.K.

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

(2)Section 155 has effect as if—

(a)the reference in subsection (2)(c) to the general duties of the Authority under section 2 were a reference to its duty under section 73; and

(b)section 99 were included in the provisions referred to in subsection (9).

Statements of policyU.K.

5(1)Paragraph 5 of Schedule 1 has effect as if the requirement to act through the Authority’s governing body applied also to the exercise of its functions of publishing statements under section 93.U.K.

(2)Paragraph 1 of Schedule 1 has effect as if section 93 were included in the provisions referred to in sub-paragraph (2)(d).

PenaltiesU.K.

6Paragraph 16 of Schedule 1 does not apply in relation to penalties under Part VI (for which separate provision is made by section 100).

FeesU.K.

7Paragraph 17 of Schedule 1 does not apply in relation to fees payable under Part VI (for which separate provision is made by section 99).

Exemption from liability in damagesU.K.

8Schedule 1 has effect as if—

(a)sub-paragraph (1) of paragraph 19 were omitted (similar provision being made in relation to the competent authority by section 102); and

(b)for the words from the beginning to “(a)” in sub-paragraph (3) of that paragraph, there were substituted “ Sub-paragraph (2) does not apply ”.

Section 72(3).

SCHEDULE 8U.K.

Transfer of functions under Part VIU.K.

The power to transferU.K.

1(1)The Treasury may by order provide for any function conferred on the competent authority which is exercisable for the time being by a particular person to be transferred so as to be exercisable by another person.U.K.

(2)An order may be made under this paragraph only if—

(a)the person from whom the relevant functions are to be transferred has agreed in writing that the order should be made;

(b)the Treasury are satisfied that the manner in which, or efficiency with which, the functions are discharged would be significantly improved if they were transferred to the transferee; or

(c)the Treasury are satisfied that it is otherwise in the public interest that the order should be made.

SupplementalU.K.

2(1)An order under this Schedule does not affect anything previously done by any person (“the previous authority”) in the exercise of functions which are transferred by the order to another person (“the new authority”).U.K.

(2)Such an order may, in particular, include provision—

(a)modifying or excluding any provision of Part VI, IX or XXVI in its application to any such functions;

(b)for reviews similar to that made, in relation to the Authority, by section 12;

(c)imposing on the new authority requirements similar to those imposed, in relation to the Authority, by sections 152, 155 and 354;

(d)as to the giving of guidance by the new authority;

(e)for the delegation by the new authority of the exercise of functions under Part VI and as to the consequences of delegation;

(f)for the transfer of any property, rights or liabilities relating to any such functions from the previous authority to the new authority;

(g)for the carrying on and completion by the new authority of anything in the process of being done by the previous authority when the order takes effect;

(h)for the substitution of the new authority for the previous authority in any instrument, contract or legal proceedings;

(i)for the transfer of persons employed by the previous authority to the new authority and as to the terms on which they are to transfer;

(j)making such amendments to any primary or subordinate legislation (including any provision of, or made under, this Act) as the Treasury consider appropriate in consequence of the transfer of functions effected by the order.

(3)Nothing in this paragraph is to be taken as restricting the powers conferred by section 428.

3If the Treasury have made an order under paragraph 1 (“the transfer order”) they may, by a separate order made under this paragraph, make any provision of a kind that could have been included in the transfer order.

F123F123SCHEDULE 9U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 90(2) and (5).

SCHEDULE 10U.K. Compensation: Exemptions

Modifications etc. (not altering text)

C45Sch. 10 restricted (1.12.2001) by S.I. 2001/2957, arts. 1, 7(3); S.I. 2001/3538, art. 2(1)

Statements believed to be trueU.K.

1(1)In this paragraph “statement” means—U.K.

(a)any untrue or misleading statement in listing particulars; or

(b)the omission from listing particulars of any matter required to be included by section 80 or 81.

(2)A person does not incur any liability under section 90(1) for loss caused by a statement if he satisfies the court that, at the time when the listing particulars were submitted to the competent authority, he reasonably believed (having made such enquiries, if any, as were reasonable) that—

(a)the statement was true and not misleading, or

(b)the matter whose omission caused the loss was properly omitted,

and that one or more of the conditions set out in sub-paragraph (3) are satisfied.

(3)The conditions are that—

(a)he continued in his belief until the time when the securities in question were acquired;

(b)they were acquired before it was reasonably practicable to bring a correction to the attention of persons likely to acquire them;

(c)before the securities were acquired, he had taken all such steps as it was reasonable for him to have taken to secure that a correction was brought to the attention of those persons;

(d)he continued in his belief until after the commencement of dealings in the securities following their admission to the official list and they were acquired after such a lapse of time that he ought in the circumstances to be reasonably excused.

Statements by expertsU.K.

2(1)In this paragraph “statement” means a statement included in listing particulars which—U.K.

(a)purports to be made by, or on the authority of, another person as an expert; and

(b)is stated to be included in the listing particulars with that other person’s consent.

(2)A person does not incur any liability under section 90(1) for loss in respect of any securities caused by a statement if he satisfies the court that, at the time when the listing particulars were submitted to the competent authority, he reasonably believed that the other person—

(a)was competent to make or authorise the statement, and

(b)had consented to its inclusion in the form and context in which it was included,

and that one or more of the conditions set out in sub-paragraph (3) are satisfied.

(3)The conditions are that—

(a)he continued in his belief until the time when the securities were acquired;

(b)they were acquired before it was reasonably practicable to bring the fact that the expert was not competent, or had not consented, to the attention of persons likely to acquire the securities in question;

(c)before the securities were acquired he had taken all such steps as it was reasonable for him to have taken to secure that that fact was brought to the attention of those persons;

(d)he continued in his belief until after the commencement of dealings in the securities following their admission to the official list and they were acquired after such a lapse of time that he ought in the circumstances to be reasonably excused.

Corrections of statementsU.K.

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

(2)A person does not incur liability under section 90(1) for loss caused by a statement if he satisfies the court—

(a)that before the securities in question were acquired, a correction had been published in a manner calculated to bring it to the attention of persons likely to acquire the securities; or

(b)that he took all such steps as it was reasonable for him to take to secure such publication and reasonably believed that it had taken place before the securities were acquired.

(3)Nothing in this paragraph is to be taken as affecting paragraph 1.

Corrections of statements by expertsU.K.

4(1)In this paragraph “statement” has the same meaning as in paragraph 2.U.K.

(2)A person does not incur liability under section 90(1) for loss caused by a statement if he satisfies the court—

(a)that before the securities in question were acquired, the fact that the expert was not competent or had not consented had been published in a manner calculated to bring it to the attention of persons likely to acquire the securities; or

(b)that he took all such steps as it was reasonable for him to take to secure such publication and reasonably believed that it had taken place before the securities were acquired.

(3)Nothing in this paragraph is to be taken as affecting paragraph 2.

Official statementsU.K.

5A person does not incur any liability under section 90(1) for loss resulting from—

(a)a statement made by an official person which is included in the listing particulars, or

(b)a statement contained in a public official document which is included in the listing particulars,

if he satisfies the court that the statement is accurately and fairly reproduced.

False or misleading information known aboutU.K.

6A person does not incur any liability under section 90(1) or (4) if he satisfies the court that the person suffering the loss acquired the securities in question with knowledge—

(a)that the statement was false or misleading,

(b)of the omitted matter, or

(c)of the change or new matter,

as the case may be.

Belief that supplementary listing particulars not called forU.K.

7A person does not incur any liability under section 90(4) if he satisfies the court that he reasonably believed that the change or new matter in question was not such as to call for supplementary listing particulars.

Meaning of “expert”U.K.

8Expert” includes any engineer, valuer, accountant or other person whose profession, qualifications or experience give authority to a statement made by him.

Valid from 01/10/2010

Section 90A

[F124SCHEDULE 10AU.K.LIABILITY OF ISSUERS IN CONNECTION WITH PUBLISHED INFORMATION

Textual Amendments

F124Sch. 10A inserted (1.10.2010 with effect in accordance with reg. 3(1) of the amending S.I.) by The Financial Services and Markets Act 2000 (Liability of Issuers) Regulations 2010 (S.I. 2010/1192), reg. 2(3), Sch.

PART 1 U.K.SCOPE OF THIS SCHEDULE

Securities to which this Schedule appliesU.K.

1(1)This Schedule applies to securities that are, with the consent of the issuer, admitted to trading on a securities market, where—

(a)the market is situated or operating in the United Kingdom, or

(b)the United Kingdom is the issuer's home State.

(2)For the purposes of this Schedule—

(a)an issuer of securities is not taken to have consented to the securities being admitted to trading on a securities market by reason only of having consented to their admission to trading on another market as a result of which they are admitted to trading on the first-mentioned market;

(b)an issuer who has accepted responsibility (to any extent) for any document prepared for the purposes of the admission of the securities to trading on a securities market (such as a prospectus or listing particulars) is taken to have consented to their admission to trading on that market.

(3)For the purposes of this Schedule the United Kingdom is the home State of an issuer—

(a)in the case of securities in relation to which the transparency obligations directive applies, if the United Kingdom is the home Member State for the purposes of that directive (see Article 2.1 of the directive);

(b)in any other case, if the issuer has its registered office (or, if it does not have a registered office, its head office) in the United Kingdom.

Published information to which this Schedule appliesU.K.

2(1)This Schedule applies to information published by the issuer of securities to which this Schedule applies—

(a)by recognised means, or

(b)by other means where the availability of the information has been announced by the issuer by recognised means.

(2)It is immaterial whether the information is required to be published (by recognised means or otherwise).

(3)The following are “recognised means”—

(a)a recognised information service;

(b)other means required or authorised to be used to communicate information to the market in question, or to the public, when a recognised information service is unavailable.

(4)A “recognised information service” means—

(a)in relation to a securities market situated or operating in the EEA, a service used for the dissemination of information in accordance with Article 21 of the transparency obligations directive;

(b)in relation to a securities market situated or operating outside the EEA, a service used for the dissemination of information corresponding to that required to be disclosed under that directive; or

(c)in relation to any securities market, any other service used by issuers of securities for the dissemination of information required to be disclosed by the rules of the market.

PART 2 U.K.LIABILITY IN CONNECTION WITH PUBLISHED INFORMATION

Liability of issuer for misleading statement or dishonest omissionU.K.

3(1)An issuer of securities to which this Schedule applies is liable to pay compensation to a person who—

(a)acquires, continues to hold or disposes of the securities in reliance on published information to which this Schedule applies, and

(b)suffers loss in respect of the securities as a result of—

(i)any untrue or misleading statement in that published information, or

(ii)the omission from that published information of any matter required to be included in it.

(2)The issuer is liable in respect of an untrue or misleading statement only if a person discharging managerial responsibilities within the issuer knew the statement to be untrue or misleading or was reckless as to whether it was untrue or misleading.

(3)The issuer is liable in respect of the omission of any matter required to be included in published information only if a person discharging managerial responsibilities within the issuer knew the omission to be a dishonest concealment of a material fact.

(4)A loss is not regarded as suffered as a result of the statement or omission unless the person suffering it acquired, continued to hold or disposed of the relevant securities—

(a)in reliance on the information in question, and

(b)at a time when, and in circumstances in which, it was reasonable for him to rely on it.

4An issuer of securities to which this Schedule applies is not liable under paragraph 3 to pay compensation to a person for loss suffered as a result of an untrue or misleading statement in, or omission from, published information to which this Schedule applies if—

(a)the published information is contained in listing particulars or a prospectus (or supplementary listing particulars or a supplementary prospectus), and

(b)the issuer is liable under section 90 (compensation for statements in listing particulars or prospectus) to pay compensation to the person in respect of the statement or omission.

Liability of issuer for dishonest delay in publishing informationU.K.

5(1)An issuer of securities to which this Schedule applies is liable to pay compensation to a person who—

(a)acquires, continues to hold or disposes of the securities, and

(b)suffers loss in respect of the securities as a result of delay by the issuer in publishing information to which this Schedule applies.

(2)The issuer is liable only if a person discharging managerial responsibilities within the issuer acted dishonestly in delaying the publication of the information.

Meaning of dishonestyU.K.

6For the purposes of paragraphs 3(3) and 5(2) a person's conduct is regarded as dishonest if (and only if)—

(a)it is regarded as dishonest by persons who regularly trade on the securities market in question, and

(b)the person was aware (or must be taken to have been aware) that it was so regarded.

Exclusion of certain other liabilitiesU.K.

7(1)The issuer is not subject—

(a)to any liability other than that provided for by paragraph 3 in respect of loss suffered as a result of reliance by any person on—

(i)an untrue or misleading statement in published information to which this Schedule applies, or

(ii)the omission from any such published information of any matter required to be included in it;

(b)to any liability other than that provided for by paragraph 5 in respect of loss suffered as a result of delay in the publication of information to which this Schedule applies.

(2)A person other than the issuer is not subject to any liability, other than to the issuer, in respect of any such loss.

(3)This paragraph does not affect—

(a)civil liability—

(i)under section 90 (compensation for statements in listing particulars or prospectus),

(ii)under rules made by virtue of section 954 of the Companies Act 2006 (compensation),

(iii)for breach of contract,

(iv)under the Misrepresentation Act 1967, or

(v)arising from a person's having assumed responsibility, to a particular person for a particular purpose, for the accuracy or completeness of the information concerned;

(b)liability to a civil penalty; or

(c)criminal liability.

(4)This paragraph does not affect the powers conferred by sections 382 and 384 (powers of the court to make a restitution order and of the Authority to require restitution).

(5)References in this paragraph to liability, in relation to a person, include a reference to another person being entitled as against that person to be granted any civil remedy or to rescind or repudiate an agreement.

PART 3 U.K.SUPPLEMENTARY PROVISIONS

InterpretationU.K.

8(1)In this Schedule—

(a)securities” means transferable securities within the meaning of Article 4.1.18 of the markets in financial instruments directive, other than money-market instruments as defined in Article 4.1.19 of that directive that have a maturity of less than 12 months (and includes instruments outside the EEA);

(b)securities market” means—

(i)a regulated market as defined in Article 4.1.14 of the markets in financial instruments directive,

(ii)a multilateral trading facility as defined in Article 4.1.15 of the markets in financial instruments directive, or

(iii)a market or facility of a corresponding description outside the EEA.

(2)References in this Schedule to the issuer of securities are—

(a)in relation to a depositary receipt, derivative instrument or other financial instrument representing securities where the issuer of the securities represented has consented to the admission of the instrument to trading as mentioned in paragraph 1(1), to the issuer of the securities represented;

(b)in any other case, to the person who issued the securities.

(3)References in this Schedule to the acquisition or disposal of securities include—

(a)acquisition or disposal of any interest in securities, or

(b)contracting to acquire or dispose of securities or of any interest in securities,

except where what is acquired or disposed of (or contracted to be acquired or disposed of) is a depositary receipt, derivative instrument or other financial instrument representing securities.

(4)References to continuing to hold securities have a corresponding meaning.

(5)For the purposes of this Schedule the following are persons “discharging managerial responsibilities” within an issuer—

(a)any director of the issuer (or person occupying the position of director, by whatever name called);

(b)in the case of an issuer whose affairs are managed by its members, any member of the issuer;

(c)in the case of an issuer that has no persons within paragraph (a) or (b), any senior executive of the issuer having responsibilities in relation to the information in question or its publication.

(6)The following definitions (which apply generally for the purposes of Part 6 of this Act) do not apply for the purposes of this Schedule:

(a)section 102A(1), (2) and (6) (meaning of “securities” and “issuer”);

(b)section 102C (meaning of “home State” in relation to transferable securities).]

F125F125SCHEDULE 11U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 85(5)(a)

[F1SCHEDULE 11AU.K.TRANSFERABLE SECURITIES

PART 1 U.K.

1Units (within the meaning in section 237(2)) in an open-ended collective investment scheme.

2Non-equity transferable securities issued by

(a)the government of an EEA State;

(b)a local or regional authority of an EEA State;

(c)a public international body of which an EEA State is a member;

(d)the European Central Bank;

(e)the central bank of an EEA State.

3Shares in the share capital of the central bank of an EEA State.

4Transferable securities unconditionally and irrevocably guaranteed by the government, or a local or regional authority, of an EEA State.

5(1)Non-equity transferable securities, issued in a continuous or repeated manner by a credit institution, which satisfy the conditions in sub-paragraph (2).U.K.

(2)The conditions are that the transferable securities—

(a)are not subordinated, convertible or exchangeable;

(b)do not give a right to subscribe to or acquire other types of securities and are not linked to a derivative instrument;

(c)materialise reception of repayable deposits; and

(d)are covered by a deposit guarantee under directive 94/19/EC of the European Parliament and of the Council on deposit-guarantee schemes.

6Non-fungible shares of capital—

(a)the main purpose of which is to provide the holder with a right to occupy any immoveable property, and

(b)which cannot be sold without that right being given up.

PART 2] U.K.

7(1)Transferable securities issued by a body specified in sub-paragraph (2) if, and only if, the proceeds of the offer of the transferable securities to the public will be used solely for the purposes of the issuer's objectives.

(2)The bodies are

(a)a charity within the meaning of—

(i)section 96(1) of the Charities Act 1993 (c. 10), or

(ii)section 35 of the Charities Act (Northern Ireland) 1964 (c. 33 (N.I.));

[F130(b)a body entered in the Scottish Charity Register;]

(c)a housing association within the meaning of—

(i)section 5(1) of the Housing Act 1985 (c. 68),

(ii)section 1 of the Housing Associations Act 1985 (c. 69), or

(iii)Article 3 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15));

(d)an industrial and provident society registered in accordance with—

(i)section 1(2)(b) of the Industrial and Provident Societies Act 1965 (c. 12), or

(ii)section 1(2)(b) of the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.));

(e)a non-profit making association or body recognised by an EEA State with objectives similar to those of a body falling within any of sub-paragraphs (a) to (d).

8(1)Non-equity transferable securities, issued in a continuous or repeated manner by a credit institution, which satisfy the conditions in sub-paragraph (2).

(2)The conditions are—

(a)that the total consideration of the offer is less than 50,000,000 euros (or an equivalent amount); and

(b)those mentioned in paragraph 5(2)(a) and (b).

(3)In determining whether sub-paragraph (2)(a) is satisfied in relation to an offer (“offer A”), offer A is to be taken together with any other offer of transferable securities of the same class made by the same person which—

(a)was open at any time within the period of 12 months ending with the date on which offer A is first made; and

(b)had previously satisfied sub-paragraph (2)(a).

(4)For the purposes of this paragraph, an amount (in relation to an amount denominated in euros) is an “equivalent amount” if it is an amount of equal value denominated wholly or partly in another currency or unit of account.

(5)The equivalent is to be calculated at the latest practicable date before (but in any event not more than 3 working days before) the date on which the offer is first made.

(6)Credit institution” means a credit institution as defined in [F131Article 4(1)(a)] of the banking consolidation directive.

9(1)Transferable securities included in an offer where the total consideration of the offer is less than 2,500,000 euros (or an equivalent amount).

(2)Sub-paragraphs (3) to (5) of paragraph 8 apply for the purposes of this paragraph but with the references in sub-paragraph (3) to “sub-paragraph (2)(a)” being read as references to “paragraph 9(1)”.

Valid from 01/10/2009

Section 96B(2)

[F132SCHEDULE 11BU.K.CONNECTED PERSONS

PART 1 U.K.MEANING OF “CONNECTED PERSON”

IntroductionU.K.

1(1) In this Schedule “manager” means a person discharging managerial responsibilities within an issuer.

(2)This Schedule defines what is meant by references in the provisions of this Part relating to disclosure rules to a person being “connected” with a manager (or a manager being “connected” with a person).

Meaning of “connected person”U.K.

2(1) The following persons (and only those persons) are connected with a manager—

(a)members of the manager's family (see paragraph 3);

(b)a body corporate with which the manager is associated (as defined in paragraph 4);

(c)a person acting in his capacity as trustee of a trust—

(i)the beneficiaries of which include the manager or a person who by virtue of paragraph (a) or (b) is connected with him, or

(ii)the terms of which confer a power on the trustees that may be exercised for the benefit of the manager or any such person,

other than a trust for the purposes of an employees' share scheme or a pension scheme;

(d)a person acting in his capacity as partner—

(i)of the manager, or

(ii)of a person who, by virtue of paragraph (a), (b) or (c), is connected with that manager;

(e)a firm that is a legal person under the law by which it is governed and in which—

(i)the manager is a partner,

(ii)a partner is a person who, by virtue of paragraph (a), (b) or (c) is connected with the manager, or

(iii)a partner is a firm in which the manager is a partner or in which there is a partner who, by virtue of paragraph (a), (b) or (c), is connected with the director.

(2)References to a person connected with a manager do not include a person who is also a manager of the issuer in question.

Family membersU.K.

3(1) This paragraph defines what is meant by references to members of a manager's family.

(2)The members of a manager's family are—

(a)the manager's spouse or civil partner;

(b)any relative of the manager who, on the date of the transaction in question, has shared the same household as the manager for at least 12 months;

(c)the manager's children or step-children under the age of 18.

Associated bodies corporateU.K.

4(1) This paragraph defines what is meant by a manager being “associated” with a body corporate.

(2)A manager is associated with a body corporate if, but only if—

(a)the manager, or a person connected with the manager, is a director or senior executive who has the power to make management decisions affecting the future development and business prospects of the body corporate; or

(b)the manager and the persons connected with the manager together—

(i)are interested in shares comprised in the equity share capital of that body corporate of a nominal value equal to at least 20% of that share capital, or

(ii)are entitled to exercise or control the exercise of more than 20% of the voting power at any general meeting of that body.

(3)The rules set out in Part 2 of this Schedule (references to interest in shares or debentures) apply for the purposes of this paragraph.

(4)References in this paragraph to voting power the exercise of which is controlled by a manager include voting power whose exercise is controlled by a body corporate controlled by the manager.

(5)Shares in a company held as treasury shares, and any voting rights attached to such shares, are disregarded for the purposes of this paragraph.

Control of a body corporateU.K.

5(1) This paragraph defines what is meant by a manager “controlling” a body corporate.

(2)A manager is taken to control a body corporate if, but only if—

(a)the manager or a person connected with the manager—

(i)is interested in any part of the equity share capital of that body, or

(ii)is entitled to exercise or control the exercise of any part of the voting power at any general meeting of that body, and

(b)the manager, the persons connected with the manager and the other managers of the issuer in question, together—

(i)are interested in more than 50% of that share capital, or

(ii)are entitled to exercise or control the exercise of more than 50% of that voting power.

(3)The rules set out in Part 2 of this Schedule (references to interest in shares or debentures) apply for the purposes of this paragraph.

(4)References in this paragraph to voting power the exercise of which is controlled by a manager include voting power whose exercise is controlled by a body corporate controlled by the manager.

(5)Shares in a company held as treasury shares, and any voting rights attached to such shares, are disregarded for the purposes of this paragraph.

Supplementary provisionsU.K.

6 For the purposes of paragraphs 4 and 5 (associated bodies corporate and control of a body corporate)—

(a)a body corporate with which a manager is associated is not treated as connected with that manager unless it is also connected with that manager by virtue of sub-paragraph (1)(c) or (d) of that paragraph (connection as trustee or partner); and

(b)a trustee of a trust the beneficiaries of which include (or may include) a body corporate with which a manager is associated is not treated as connected with a manager by reason only of that fact.

PART 2 U.K.CONNECTED PERSONS: REFERENCES TO AN INTEREST IN SHARES OR DEBENTURES

IntroductionU.K.

7(1) The provisions of this Part of this Schedule have effect for the interpretation of references in paragraphs 4 and 5 (associated bodies corporate and control of a body corporate) to an interest in shares or debentures.

(2)The provisions are expressed in relation to shares but apply to debentures as they apply to shares.

General provisionsU.K.

8(1) A reference to an interest in shares includes any interest of any kind whatsoever in shares.

(2)Any restraints or restrictions to which the exercise of any right attached to the interest is or may be subject shall be disregarded.

(3)It is immaterial that the shares in which a person has an interest are not identifiable.

(4)Persons having a joint interest in shares are deemed each of them to have that interest.

Rights to acquire sharesU.K.

9(1) A person who enters into a contract to acquire shares is taken to have an interest in the shares.

(2)A person who—

(a)has a right to call for delivery of shares to the person or to the person's order, or

(b)has a right to acquire an interest in shares or is under an obligation to take an interest in shares,

is taken to have an interest in the shares, whether the right or obligation is conditional or absolute.

(3)Rights or obligations to subscribe for shares are not to be taken for the purposes of sub-paragraph (2) to be rights to acquire or obligations to take an interest in shares.

(4)A person (“A”) ceases to have an interest in shares by virtue of this paragraph—

(a)on the shares being delivered to another person at A's order—

(i)in fulfilment of a contract for their acquisition by A, or

(ii)in satisfaction of a right of A's to call for their delivery;

(b)on a failure to deliver the shares in accordance with the terms of such a contract or on which such a right falls to be satisfied;

(c)on the lapse of A's right to call for the delivery of shares.

Right to exercise or control exercise of rightsU.K.

10(1) A person who, not being the registered holder, is entitled—

(a)to exercise any right conferred by the holding of the shares, or

(b)to control the exercise of any such right.

is taken to have an interest in the shares.

(2)For this purpose a person is taken to be entitled to exercise or control the exercise of a right conferred by the holding of shares who—

(a)has a right (whether subject to conditions or not) the exercise of which would make the person so entitled, or

(b)is under an obligation (whether or not so subject) the fulfilment of which would make the person so entitled.

(3)A person who—

(a)has been appointed a proxy to exercise any of the rights attached to the shares, or

(b)has been appointed by a body corporate to act as its representative at any meeting of a company or of any class of its members,

is not, by reason only of that fact, to be taken by virtue of this paragraph to be interested in the shares.

Bodies corporateU.K.

11(1) A person is taken to be interested in shares if a body corporate is interested in them and—

(a)the body corporate or its directors are accustomed to act in accordance with the person's directions or instructions, or

(b)the person is entitled to exercise or control the exercise of more than one-half of the voting power at general meetings of the body corporate.

(2)For the purposes of sub-paragraph (1)(b) where—

(a)a person is entitled to exercise or control the exercise of more than one-half of the voting power at general meetings of a body corporate, and

(b)that body corporate is entitled to exercise or control the exercise of any of the voting power at general meetings of another body corporate,

the voting power mentioned in paragraph (b) above is taken to be exercisable by that person.]

TrustsU.K.

12(1) Where an interest in shares is comprised in property held on trust, every beneficiary of the trust is taken to have an interest in shares, subject as follows.

(2)So long as a person is entitled to receive, during the lifetime of that person or another, income from trust property comprising shares, an interest in the shares in reversion or remainder or (as regards Scotland) in fee shall be disregarded.

(3)A person is treated as not interested in shares if and so long as the person holds them—

(a)under the law in force in any part of the United Kingdom, as a bare trustee or as a custodian trustee, or

(b)under the law in force in Scotland, as a simple trustee.

(4)There shall be disregarded any interest of a person subsisting by virtue of—

(a)an authorised unit trust scheme (within the meaning of section 237 (other definitions));

(b)a scheme made under section 22 or 22A of the Charities Act 1960 (c. 58), section 25 of the Charities Act (Northern Ireland) 1964 (c. 33 (N.I.)) or section 24 or 25 of the Charities Act 1993 (c. 10), section 11 of the Trustee Investments Act 1961 (c. 62) or section 42 of the Administration of Justice Act 1982 (c. 53); or

(c)the scheme set out in the Schedule to the Church Funds Investment Measure 1958 (1958 No. 1).

(5)There shall be disregarded any interest—

(a)of the Church of Scotland General Trustees or of the Church of Scotland Trust in shares held by them;

(b)of any other person in shares held by those Trustees or that Trust otherwise than as simple trustees.

“The Church of Scotland General Trustees” are the body incorporated by the order confirmed by the Church of Scotland (General Trustees) Order Confirmation Act 1921 (1921 c. xxv), and “the Church of Scotland Trust” is the body incorporated by the order confirmed by the Church of Scotland Trust Order Confirmation Act 1932 (1932 c. xxi).

Sections 111(2) and 115.

SCHEDULE 12U.K. Transfer schemes: certificates

Part IU.K. Insurance Business Transfer Schemes

Modifications etc. (not altering text)

C47Sch. 12 Pt. I (paras. 1-6) applied (1.12.2001) by S.I. 2001/3626, arts. 1, 3(c)

1(1)For the purposes of section 111(2) the appropriate certificates, in relation to an insurance business transfer scheme, are—U.K.

(a)a certificate under paragraph 2;

(b)if sub-paragraph (2) applies, a certificate under paragraph 3;

(c)if sub-paragraph (3) applies, a certificate under paragraph 4;

(d)if sub-paragraph (4) applies, a certificate under paragraph 5[F133;

(e) if sub-paragraph (5) applies, the certificates under paragraph 5A.]

(2)This sub-paragraph applies if—

(a)the authorised person concerned is a UK authorised person which has received authorisation under [F134Article 4 of the life assurance consolidation directive or Article 6] or of the first non-life insurance directive from the Authority; and

(b)the establishment from which the business is to be transferred under the proposed insurance business transfer scheme is in an EEA State other than the United Kingdom.

(3)This sub-paragraph applies if—

(a)the authorised person concerned has received authorisation under [F135Article 4 [F136or Article 51] of the life assurance consolidation directive] from the Authority;

(b)the proposed transfer relates to business which consists of the effecting or carrying out of contracts of long-term insurance; and

(c)as regards any policy which is included in the proposed transfer and which evidences a contract of insurance (other than reinsurance), an EEA State other than the United Kingdom is the State of the commitment.

(4)This sub-paragraph applies if—

(a)the authorised person concerned has received authorisation under Article 6 [F137or Article 23] of the first non-life insurance directive from the Authority;

(b)the business to which the proposed insurance business transfer scheme relates is business which consists of the effecting or carrying out of contracts of general insurance; and

(c)as regards any policy which is included in the proposed transfer and which evidences a contract of insurance (other than reinsurance), the risk is situated in an EEA State other than the United Kingdom.

[F138(5)This sub-paragraph applies if—

(a)the authorised person concerned has received authorisation under Article 23 of the first non-life insurance directive or Article 51 of the life assurance consolidation directive from the Authority; and

(b)the proposed transfer is to a branch or agency, in an EEA State other than the United Kingdom, authorised under the same Article.]

Certificates as to margin of solvencyU.K.

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

(a)by the relevant authority; or

(b)in a case in which there is no relevant authority, by the Authority.

(2)A certificate given under sub-paragraph (1)(a) is one certifying that, taking the proposed transfer into account—

(a)the transferee possesses, or will possess before the scheme takes effect, the necessary margin of solvency; or

(b)there is no necessary margin of solvency applicable to the transferee.

(3)A certificate under sub-paragraph (1)(b) is one certifying that the Authority has received from the authority which it considers to be the authority responsible for supervising persons who effect or carry out contracts of insurance in the place to which the business is to be transferred that, taking the proposed transfer into account—

(a)the transferee possesses or will possess before the scheme takes effect the margin of solvency required under the law applicable in that place; or

(b)there is no such margin of solvency applicable to the transferee .

(4)Necessary margin of solvency” means the margin of solvency required in relation to the transferee, taking the proposed transfer into account, under the law which it is the responsibility of the relevant authority to apply.

(5)Margin of solvency” means the excess of the value of the assets of the transferee over the amount of its liabilities.

(6)Relevant authority” means—

(a)if the transferee is an EEA firm falling within paragraph 5(d) [F139or (da)] of Schedule 3, its home state regulator;

[F140(aa)if the transferee is a non-EEA branch, the competent authorities of the EEA State in which the transferee is situated or, where appropriate, the competent authorities of an EEA State which supervises the state of solvency of the entire business of the transferee's agencies and branches within the EEA in accordance with Article 26 of the first non-life insurance directive or Article 56 of the life assurance consolidation directive;]

(b)if the transferee is a Swiss general insurer, the authority responsible in Switzerland for supervising persons who effect or carry out contracts of insurance;

(c)if the transferee is an authorised person not falling within [F141paragraph (a), (aa)] or (b), the Authority.

(7)In sub-paragraph (6), any reference to a transferee of a particular description includes a reference to a transferee who will be of that description if the proposed scheme takes effect.

[F142(7A)Competent authorities” has the same meaning as in the insurance directives.]

(8)Swiss general insurer” means a body—

(a)whose head office is in Switzerland;

(b)which has permission to carry on regulated activities consisting of the effecting and carrying out of contracts of general insurance; and

(c)whose permission is not restricted to the effecting or carrying out of contracts of reinsurance.

[F143(9)Non-EEA branch” means a branch or agency which has received authorisation under Article 23 of the first non-life insurance directive or Article 51 of the life assurance consolidation directive.]

Certificates as to consentU.K.

3A certificate under this paragraph is one given by the Authority and certifying that the host State regulator has been notified of the proposed scheme and that—

(a)that regulator has responded to the notification; or

(b)that it has not responded but the period of three months beginning with the notification has elapsed.

Certificates as to long-term businessU.K.

4A certificate under this paragraph is one given by the Authority and certifying that the authority responsible for supervising persons who effect or carry out contracts of insurance in the State of the commitment has been notified of the proposed scheme and that—

(a)that authority has consented to the proposed scheme; or

(b)the period of three months beginning with the notification has elapsed and that authority has not refused its consent.

Certificates as to general businessU.K.

5A certificate under this paragraph is one given by the Authority and certifying that the authority responsible for supervising persons who effect or carry out contracts of insurance in the EEA State in which the risk is situated has been notified of the proposed scheme and that—

(a)that authority has consented to the proposed scheme; or

(b)the period of three months beginning with the notification has elapsed and that authority has not refused its consent.

[F144Certificates as to legality and as to consentU.K.

5A(1)The certificates under this paragraph are to be given—U.K.

(a)in the case of the certificate under sub-paragraph (2), by the Authority;

(b)in the case of the certificate under sub-paragraph (3), by the relevant authority.

(2)A certificate given under this sub-paragraph is one certifying that the relevant authority has been notified of the proposed scheme and that—

(a)the relevant authority has consented to the proposed scheme; or

(b)the period of three months beginning with the notification has elapsed and that relevant authority has not refused its consent.

(3)A certificate given under this sub-paragraph is one certifying that the law of the EEA State in which the transferee is set up permits such a transfer.

(4)Relevant authority” means the competent authorities (within the meaning of the insurance directives) of the EEA State in which the transferee is set up.]

Interpretation of Part IU.K.

6(1)State of the commitment”, in relation to a commitment entered into at any date, means—U.K.

(a)if the policyholder is an individual, the State in which he had his habitual residence at that date;

(b)if the policyholder is not an individual, the State in which the establishment of the policyholder to which the commitment relates was situated at that date.

(2)Commitment” means a commitment represented by contracts of insurance of a prescribed class.

(3)References to the EEA State in which a risk is situated are—

(a)if the insurance relates to a building or to a building and its contents (so far as the contents are covered by the same policy), to the EEA State in which the building is situated;

(b)if the insurance relates to a vehicle of any type, to the EEA State of registration;

(c)in the case of policies of a duration of four months or less covering travel or holiday risks (whatever the class concerned), to the EEA State in which the policyholder took out the policy;

(d)in a case not covered by paragraphs (a) to (c)—

(i)if the policyholder is an individual, to the EEA State in which he has his habitual residence at the date when the contract is entered into; and

(ii)otherwise, to the EEA State in which the establishment of the policyholder to which the policy relates is situated at that date.

[F145(4)If the insurance relates to a vehicle dispatched from one EEA State to another, in respect of the period of 30 days beginning with the day on which the purchaser accepts delivery a reference to the EEA State in which a risk is situated is a reference to the State of destination (and not, as provided by sub-paragraph (3)(b), to the State of registration).]

Textual Amendments

Commencement Information

I30Sch. 12 Pt I para. 6 wholly in force at 1.12.2001; Sch. 12 Pt. I para. 6 not in force at Royal Assent see s. 431(2); Sch. 12 para. 6(2) in force at 25.2.2001 by S.I. 2001/516, art. 2(b), Sch. Pts. 1, 3; Sch. 12 Pt. I para. 6 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Part IIU.K. Banking Business Transfer Schemes

7(1)For the purposes of section 111(2) the appropriate certificates, in relation to a banking business transfer scheme, are—U.K.

(a)a certificate under paragraph 8; and

(b)if sub-paragraph (2) applies, a certificate under paragraph 9.

(2)This sub-paragraph applies if the authorised person concerned or the transferee is an EEA firm falling within paragraph 5(b) of Schedule 3.

Certificates as to financial resourcesU.K.

8(1)A certificate under this paragraph is one given by the relevant authority and certifying that, taking the proposed transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.U.K.

(2)Relevant authority” means—

(a)if the transferee is a person with a Part IV permission or with permission under Schedule 4, the Authority;

(b)if the transferee is an EEA firm falling within paragraph 5(b) of Schedule 3, its home state regulator;

(c)if the transferee does not fall within paragraph (a) or (b), the authority responsible for the supervision of the transferee’s business in the place in which the transferee has its head office.

(3)In sub-paragraph (2), any reference to a transferee of a particular description of person includes a reference to a transferee who will be of that description if the proposed banking business transfer scheme takes effect.

Certificates as to consent of home state regulatorU.K.

9A certificate under this paragraph is one given by the Authority and certifying that the home State regulator of the authorised person concerned or of the transferee has been notified of the proposed scheme and that—

(a)the home State regulator has responded to the notification; or

(b)the period of three months beginning with the notification has elapsed.

[F146Part 2A U.K.Reclaim fund business transfer schemes

Certificate as to financial resourcesU.K.

9AFor the purposes of section 111(2) the appropriate certificate, in relation to a reclaim fund business transfer scheme, is a certificate given by the Authority certifying that, taking the proposed transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.]

Part IIIU.K. Insurance business transfers effected outside the United Kingdom

10(1)This paragraph applies to a proposal to execute under provisions corresponding to Part VII in a country or territory other than the United Kingdom an instrument transferring all the rights and obligations of the transferor under general or long-term insurance policies, or under such descriptions of such policies as may be specified in the instrument, to the transferee if any of the conditions in sub-paragraphs (2), (3) or (4) is met in relation to it.U.K.

(2)The transferor is an EEA firm falling within paragraph 5(d) [F147or (da)] of Schedule 3 and the transferee is an authorised person whose margin of solvency is supervised by the Authority.

(3)The transferor is a company authorised in an EEA State other than the United Kingdom under [F148Article 51 of the life assurance consolidation directive], or Article 23 of the first non-life insurance directive and the transferee is a UK authorised person which has received authorisation under [F149Article 4 of the life assurance consolidation directive or Article 6 of the first non-life insurance directive].

(4)The transferor is a Swiss general insurer and the transferee is a UK authorised person which has received authorisation under [F150Article 4 of the life assurance consolidation directive or Article 6 of the first non-life insurance directive].

(5)In relation to a proposed transfer to which this paragraph applies, the Authority may, if it is satisfied that the transferee possesses the necessary margin of solvency, issue a certificate to that effect.

(6)Necessary margin of solvency” means the margin of solvency which the transferee, taking the proposed transfer into account, is required by the Authority to maintain.

(7)Swiss general insurer” has the same meaning as in paragraph 2.

(8)General policy” means a policy evidencing a contract which, if it had been effected by the transferee, would have constituted the carrying on of a regulated activity consisting of the effecting of contracts of general insurance.

(9)Long-term policy” means a policy evidencing a contract which, if it had been effected by the transferee, would have constituted the carrying on of a regulated activity consisting of the effecting of contracts of long-term insurance.

Section 132(4).

SCHEDULE 13U.K. The Financial Services and Markets Tribunal

Part IU.K. General

InterpretationU.K.

1In this Schedule—

  • panel of chairmen” means the panel established under paragraph 3(1);

  • lay panel” means the panel established under paragraph 3(4);

  • rules” means rules made by the Lord Chancellor under section 132.

Part IIU.K. The Tribunal

PresidentU.K.

2(1)The Lord Chancellor must appoint one of the members of the panel of chairmen to preside over the discharge of the Tribunal’s functions.

(2)The member so appointed is to be known as the President of the Financial Services and Markets Tribunal (but is referred to in this Act as “the President”).

(3)The Lord Chancellor may appoint one of the members of the panel of chairmen to be Deputy President.

(4)The Deputy President is to have such functions in relation to the Tribunal as the President may assign to him.

(5)The Lord Chancellor may not appoint a person to be the President or Deputy President unless that person—

[F151(a)satisfies the judicial-appointment eligibility condition on a 7-year basis;]

(b)is an advocate or solicitor in Scotland of at least [F1527] years’ standing; or

(c)is—

(i)a member of the Bar of Northern Ireland of at least [F1527] years’ standing; or

(ii)a solicitor of the Supreme Court of Northern Ireland of at least [F1527] years’ standing.

(6)If the President (or Deputy President) ceases to be a member of the panel of chairmen, he also ceases to be the President (or Deputy President).

(7)The functions of the President may, if he is absent or is otherwise unable to act, be discharged—

(a)by the Deputy President; or

(b)if there is no Deputy President or he too is absent or otherwise unable to act, by a person appointed for that purpose from the panel of chairmen by the Lord Chancellor.

[F153(8)The Lord Chancellor may appoint a person under sub-paragraph (7)(b) only after consulting the following—

(a)the Lord Chief Justice of England and Wales;

(b)the Lord President of the Court of Session;

(c)the Lord Chief Justice of Northern Ireland.

(9)The Lord Chief Justice of England and Wales may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this paragraph.

(10)The Lord President of the Court of Session may nominate a judge of the Court of Session who is a member of the First or Second Division of the Inner House of that Court to exercise his functions under this paragraph.

(11)The Lord Chief Justice of Northern Ireland may nominate any of the following to exercise his functions under this paragraph—

(a)the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;

(b)a Lord Justice of Appeal (as defined in section 88 of that Act).]

PanelsU.K.

3(1)The Lord Chancellor must appoint a panel of persons for the purposes of serving as chairmen of the Tribunal.

(2)A person is qualified for membership of the panel of chairmen if—

[F154(a)he satisfies the judicial-appointment eligibility condition on a 5-year basis;]

(b)he is an advocate or solicitor in Scotland of at least [F1555] years’ standing; or

(c)he is—

(i)a member of the Bar of Northern Ireland of at least [F1555] years’ standing; or

(ii)a solicitor of the Supreme Court of Northern Ireland of at least [F1555] years’ standing.

(3)The panel of chairmen must include at least one member who is a person of the kind mentioned in sub-paragraph (2)(b).

(4)The Lord Chancellor must also appoint a panel of persons who appear to him to be qualified by experience or otherwise to deal with matters of the kind that may be referred to the Tribunal.

Terms of office etcU.K.

4(1)Subject to the provisions of this Schedule, each member of the panel of chairmen and the lay panel is to hold and vacate office in accordance with the terms of his appointment.

(2)The Lord Chancellor may remove a member of either panel (including the President) on the ground of incapacity or misbehaviour.

[F156(2A)The Lord Chancellor may remove a person under sub-paragraph (2) only with the concurrence of the appropriate senior judge.

(2B)The appropriate senior judge is the Lord Chief Justice of England and Wales, unless—

(a)the person to be removed exercises functions wholly or mainly in Scotland, in which case it is the Lord President of the Court of Session, or

(b)the person to be removed exercises functions wholly or mainly in Northern Ireland, in which case it is the Lord Chief Justice of Northern Ireland.]

(3)A member of either panel—

(a)may at any time resign office by notice in writing to the Lord Chancellor;

(b)is eligible for re-appointment if he ceases to hold office.

Remuneration and expensesU.K.

5The Lord Chancellor may pay to any person, in respect of his service—

(a)as a member of the Tribunal (including service as the President or Deputy President), or

(b)as a person appointed under paragraph 7(4),

such remuneration and allowances as he may determine.

Modifications etc. (not altering text)

C52Sch. 13 para. 5 applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(a), 16(1); S.I. 2007/94, art. 3(a)

StaffU.K.

6(1)The Lord Chancellor may appoint such staff for the Tribunal as he may determine.

(2)The remuneration of the Tribunal’s staff is to be defrayed by the Lord Chancellor.

(3)Such expenses of the Tribunal as the Lord Chancellor may determine are to be defrayed by the Lord Chancellor.

Modifications etc. (not altering text)

C53Sch. 13 para. 6 applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(b), 16(1); S.I. 2007/94, art. 3(a)

Part IIIU.K. Constitution of Tribunal

7(1)On a reference to the Tribunal, the persons to act as members of the Tribunal for the purposes of the reference are to be selected from the panel of chairmen or the lay panel in accordance with arrangements made by the President for the purposes of this paragraph (“the standing arrangements”).

(2)The standing arrangements must provide for at least one member to be selected from the panel of chairmen.

(3)If while a reference is being dealt with, a person serving as member of the Tribunal in respect of the reference becomes unable to act, the reference may be dealt with by—

(a)the other members selected in respect of that reference; or

(b)if it is being dealt with by a single member, such other member of the panel of chairmen as may be selected in accordance with the standing arrangements for the purposes of the reference.

(4)If it appears to the Tribunal that a matter before it involves a question of fact of special difficulty, it may appoint one or more experts to provide assistance.

Modifications etc. (not altering text)

C54Sch. 13 para. 7(3) applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(c), 16(1); S.I. 2007/94, art. 3(a)

C55Sch. 13 para. 7(4) applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(c), 16(1); S.I. 2007/94, art. 3(a)

Part IVU.K. Tribunal Procedure

8For the purpose of dealing with references, or any matter preliminary or incidental to a reference, the Tribunal must sit at such times and in such place or places as the Lord Chancellor may direct [F157, after consulting the President of the Financial Services and Markets Tribunal,].

Textual Amendments

Modifications etc. (not altering text)

C56Sch. 13 para. 8 applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(d), 16(1); S.I. 2007/94, art. 3(a)

9Rules made by the Lord Chancellor under section 132 may, in particular, include provision—

(a)as to the manner in which references are to be instituted;

(b)for the holding of hearings in private in such circumstances as may be specified in the rules;

(c)as to the persons who may appear on behalf of the parties;

(d)for a member of the panel of chairmen to hear and determine interlocutory matters arising on a reference;

(e)for the suspension of decisions of the Authority which have taken effect;

(f)as to the withdrawal of references;

(g)as to the registration, publication and proof of decisions and orders.

Practice directionsU.K.

10The President of the Tribunal may give directions as to the practice and procedure to be followed by the Tribunal in relation to references to it.

Modifications etc. (not altering text)

C57Sch. 13 para. 10 applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(e), 16(1); S.I. 2007/94, art. 3(a)

EvidenceU.K.

11(1)The Tribunal may by summons require any person to attend, at such time and place as is specified in the summons, to give evidence or to produce any document in his custody or under his control which the Tribunal considers it necessary to examine.

(2)The Tribunal may—

(a)take evidence on oath and for that purpose administer oaths; or

(b)instead of administering an oath, require the person examined to make and subscribe a declaration of the truth of the matters in respect of which he is examined.

(3)A person who without reasonable excuse—

(a)refuses or fails—

(i)to attend following the issue of a summons by the Tribunal, or

(ii)to give evidence, or

(b)alters, suppresses, conceals or destroys, or refuses to produce a document which he may be required to produce for the purposes of proceedings before the Tribunal,

is guilty of an offence.

(4)A person guilty of an offence under sub-paragraph (3)(a) is liable on summary conviction to a fine not exceeding the statutory maximum.

(5)A person guilty of an offence under sub-paragraph (3)(b) is liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.

Modifications etc. (not altering text)

C58Sch. 13 para. 11 applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(f), 16(1); S.I. 2007/94, art. 3(a)

Decisions of TribunalU.K.

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

(2)The decision must—

(a)state whether it was unanimous or taken by a majority;

(b)be recorded in a document which—

(i)contains a statement of the reasons for the decision; and

(ii)is signed and dated by the member of the panel of chairmen dealing with the reference.

(3)The Tribunal must—

(a)inform each party of its decision; and

(b)as soon as reasonably practicable, send to each party and, if different, to any authorised person concerned, a copy of the document mentioned in sub-paragraph (2).

(4)The Tribunal must send the Treasury a copy of its decision.

Modifications etc. (not altering text)

C59Sch. 13 para. 12(1)-(3) applied (with modifications) (E.W.) (23.1.2007) by Compensation Act 2006 (c. 29), ss. 12(5)(g), 16(1); S.I. 2007/94, art. 3(a)

CostsU.K.

13(1)If the Tribunal considers that a party to any proceedings on a reference has acted vexatiously, frivolously or unreasonably it may order that party to pay to another party to the proceedings the whole or part of the costs or expenses incurred by the other party in connection with the proceedings.

(2)If, in any proceedings on a reference, the Tribunal considers that a decision of the Authority which is the subject of the reference was unreasonable it may order the Authority to pay to another party to the proceedings the whole or part of the costs or expenses incurred by the other party in connection with the proceedings.

Section 162.

SCHEDULE 14U.K. Role of the Competition Commission

Provision of information by TreasuryU.K.

1(1)The Treasury’s powers under this paragraph are to be exercised only for the purpose of assisting the Commission in carrying out an investigation under section 162.U.K.

(2)The Treasury may give to the Commission—

(a)any information in their possession which relates to matters falling within the scope of the investigation; and

(b)other assistance in relation to any such matters.

(3)In carrying out an investigation under section 162, the Commission must have regard to any information given to it under this paragraph.

Consideration of matters arising on a reportU.K.

2In considering any matter arising from a report made by the [F158OFT] under section 160, the Commission must have regard to—

(a)any representations made to [F159the Commission] in connection with the matter by any person appearing to the Commission to have a substantial interest in the matter; and

(b)any cost benefit analysis prepared by the Authority (at any time) in connection with the regulatory provision or practice, or any of the regulatory provisions or practices, which are the subject of the report.

U.K.

[F160Investigations under section 162: application of Enterprise Act 2002

2A(1)The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in sub-paragraphs (2) and (3), for the purposes of any investigation by the Commission under section 162 of this Act as they apply for the purposes of references under that Part—U.K.

(a)section 109 (attendance of witnesses and production of documents etc.);

(b)section 110 (enforcement of powers under section 109: general);

(c)section 111 (penalties);

(d)section 112 (penalties: main procedural requirements);

(e)section 113 (payments and interest by instalments);

(f)section 114 (appeals in relation to penalties);

(g)section 115 (recovery of penalties); and

(h)section 116 (statement of policy).

(2)Section 110 shall, in its application by virtue of sub-paragraph (1), have effect as if—

(a)subsection (2) were omitted; and

(b)in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(3)Section 111(5)(b) shall, in its application by virtue of sub-paragraph (1), have effect as if for sub-paragraph (ii) there were substituted—

“(ii)if earlier, the day on which the report of the Commission on the investigation concerned is made or, if the Commission decides not to make a report, the day on which the Commission makes the statement required by section 162(3) of the Financial Services and Markets Act 2000. ”

(4)Section 117 of the Enterprise Act 2002 (false or misleading information) shall apply in relation to functions of the Commission in connection with an investigation under section 162 of this Act as it applies in relation to its functions under Part 3 of that Act but as if, in subsections (1)(a) and (2), the words [F161 “the OFT, OFCOM,”] and “or the Secretary of State” were omitted.

(5)Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 117 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of sub-paragraph (1) or (4) above, have effect in relation to those sections as applied by virtue of those sub-paragraphs.

(6)Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of those sub-paragraphs.

Textual Amendments

F161Words in Sch. 14 para. 2A(4) substituted (29.12.2003) by Communications Act 2003 (c. 21), ss. 389(1), 411(2), Sch. 16 para. 5 (with transitional provisions in Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (subject to art. 3(3) and with art. 11)

U.K.

Section 162: modification of Schedule 7 to the Competition Act 1998

2BFor the purposes of its application in relation to the function of the Commission of deciding in accordance with section 162(2) of this Act not to make a report, paragraph 15(7) of Schedule 7 to the Competition Act 1998 (power of the Chairman to act on his own while a group is being constituted) has effect as if, after paragraph (a), there were inserted “; or

(aa)in the case of an investigation under section 162 of the Financial Services and Markets Act 2000, decide not to make a report in accordance with subsection (2) of that section (decision not to make a report where no useful purpose would be served). ”

U.K.

Reports under section 162: further provision

2C(1)For the purposes of section 163 of this Act, a conclusion contained in a report of the Commission is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted in connection with the investigation concerned in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.U.K.

(2)If a member of a group so constituted disagrees with any conclusions contained in a report made under section 162 of this Act as the conclusions of the Commission, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.

(3)For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the Commission under section 162.]

Applied provisionsU.K.

3F162. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Publication of reportsU.K.

4(1)If the Commission makes a report under section 162, it must publish it in such a way as appears to it to be best calculated to bring it to the attention of the public.U.K.

(2)Before publishing the report the Commission must, so far as practicable, exclude any matter which relates to the private affairs of a particular individual the publication of which, in the opinion of the Commission, would or might seriously and prejudicially affect his interests.

(3)Before publishing the report the Commission must, so far as practicable, also exclude any matter which relates to the affairs of a particular body the publication of which, in the opinion of the Commission, would or might seriously and prejudicially affect its interests.

(4)Sub-paragraphs (2) and (3) do not apply in relation to copies of a report which the Commission is required to send under section 162(10).

Sections 165(11) and 171(4).

SCHEDULE 15U.K. Information and Investigations: Connected Persons

Part IU.K. Rules for Specific Bodies

Corporate bodiesU.K.

1If the authorised person (“BC”) is a body corporate, a person who is or has been—

(a)an officer or manager of BC or of a parent undertaking of BC;

(b)an employee of BC;

(c)an agent of BC or of a parent undertaking of BC.

PartnershipsU.K.

2If the authorised person (“PP”) is a partnership, a person who is or has been a member, manager, employee or agent of PP.

Unincorporated associationsU.K.

3If the authorised person (“UA”) is an unincorporated association of persons which is neither a partnership nor an unincorporated friendly society, a person who is or has been an officer, manager, employee or agent of UA.

Friendly societiesU.K.

4(1)If the authorised person (“FS”) is a friendly society, a person who is or has been an officer, manager or employee of FS.U.K.

(2)In relation to FS, “officer” and “manager” have the same meaning as in section 119(1) of the M24Friendly Societies Act 1992.

Marginal Citations

Building societiesU.K.

5(1)If the authorised person (“BS”) is a building society, a person who is or has been an officer or employee of BS.U.K.

(2)In relation to BS, “officer” has the same meaning as it has in section 119(1) of the M25Building Societies Act 1986.

Marginal Citations

IndividualsU.K.

6If the authorised person (“IP”) is an individual, a person who is or has been an employee or agent of IP.

Application to sections 171 and 172U.K.

7For the purposes of sections 171 and 172, if the person under investigation is not an authorised person the references in this Part of this Schedule to an authorised person are to be taken to be references to the person under investigation.

Part IIU.K. Additional Rules

8A person who is, or at the relevant time was, the partner, manager, employee, agent, appointed representative, banker, auditor, actuary or solicitor of—

(a)the person under investigation (“A”);

(b)a parent undertaking of A;

(c)a subsidiary undertaking of A;

(d)a subsidiary undertaking of a parent undertaking of A; or

(e)a parent undertaking of a subsidiary undertaking of A.

Section 203(8).

SCHEDULE 16U.K. Prohibitions and Restrictions imposed by [F163OFFICE OF FAIR TRADING]

Textual Amendments

Modifications etc. (not altering text)

C63Sch. 16 applied (with modifications) (1.5.2009 for certain purposes and 1.11.2009 otherwise) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2), 26(1) (with reg. 3)

C64Sch. 16 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 31(1) (with reg. 3)

PreliminaryU.K.

1In this Schedule—

  • appeal period” has the same meaning as in the M26Consumer Credit Act 1974;

  • prohibition” means a consumer credit prohibition under section 203;

  • restriction” means a restriction under section 204.

Marginal Citations

Notice of prohibition or restrictionU.K.

2(1)This paragraph applies if the [F164OFT] proposes, in relation to a firm—U.K.

(a)to impose a prohibition;

(b)to impose a restriction; or

(c)to vary a restriction otherwise than with the agreement of the firm.

(2)The [F164OFT] must by notice—

(a)inform the firm of [F165its] proposal, stating [F165its] reasons; and

(b)invite the firm to submit representations in accordance with paragraph 4.

(3)If [F166the OFT] imposes the prohibition or restriction or varies the restriction, the [F164OFT] may give directions authorising the firm to carry into effect agreements made before the coming into force of the prohibition, restriction or variation.

(4)A prohibition, restriction or variation is not to come into force before the end of the appeal period.

(5)If the [F164OFT] imposes a prohibition or restriction or varies a restriction, [F166the OFT] must serve a copy of the prohibition, restriction or variation—

(a)on the Authority; and

(b)on the firm’s home state regulator.

Textual Amendments

F164Sch. 16: words substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F165Sch. 16: word substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F166Sch. 16: words substituted (1.4.2003) in both places by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

Modifications etc. (not altering text)

C65Sch. 16 para. 2(2) extended (1.12.2001) by S.I. 2001/3592, arts. 1(2), 24 (with art. 23(2))

Application to revoke prohibition or restrictionU.K.

3(1)This paragraph applies if the [F167OFT] proposes to refuse an application made by a firm for the revocation of a prohibition or restriction.U.K.

(2)The [F167OFT] must by notice—

(a)inform the firm of the proposed refusal, stating [F168its] reasons; and

(b)invite the firm to submit representations in accordance with paragraph 4.

Textual Amendments

F167Sch. 16: words substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F168Sch. 16: word substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

Representations to [F169OFT]U.K.

Textual Amendments

F169Sch. 16: words in substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

4(1)If this paragraph applies to an invitation to submit representations, the [F170OFT] must invite the firm, within 21 days after the notice containing the invitation is given to it or such longer period as [F171the OFT] may allow—U.K.

(a)to submit its representations in writing to [F172the OFT]; and

(b)to give notice to [F172the OFT], if the firm thinks fit, that it wishes to make representations orally.

(2)If notice is given under sub-paragraph (1)(b), the [F170OFT] must arrange for the oral representations to be heard.

(3)The [F170OFT] must give the firm notice of [F173its] determination.

Textual Amendments

F170Sch. 16: words substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F171Sch. 16: words substituted (1.4.2003) in both places by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F172Sch. 16: words substituted (1.4.2003) in both places by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F173Sch. 16: word substituted (1.4.2003) in each place by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(21)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

AppealsU.K.

5Section 41 of the M27Consumer Credit Act 1974 (appeals to the Secretary of State) has effect as if—

(a)the following determinations were mentioned in column 1 of the table set out at the end of that section—

(i)imposition of a prohibition or restriction or the variation of a restriction; and

(ii)refusal of an application for the revocation of a prohibition or restriction; and

(b)the firm concerned were mentioned in column 2 of that table in relation to those determinations.

Marginal Citations

Section 225(4).

SCHEDULE 17U.K. The Ombudsman Scheme

Modifications etc. (not altering text)

C67Sch. 17 applied (1.5.2009 for certain purposes and 1.11.2009 otherwise) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2), 125 (with reg. 3)

Part IU.K. General

InterpretationU.K.

1In this Schedule—

  • ombudsman” means a person who is a member of the panel; and

  • the panel” means the panel established under paragraph 4.

Part IIU.K. The Scheme Operator

Establishment by the AuthorityU.K.

2(1)The Authority must establish a body corporate to exercise the functions conferred on the scheme operator by or under this Act.U.K.

(2)The Authority must take such steps as are necessary to ensure that the scheme operator is, at all times, capable of exercising those functions.

ConstitutionU.K.

3(1)The constitution of the scheme operator must provide for it to have—U.K.

(a)a chairman; and

(b)a board (which must include the chairman) whose members are the scheme operator’s directors.

(2)The chairman and other members of the board must be persons appointed, and liable to removal from office, by the Authority (acting, in the case of the chairman, with the approval of the Treasury).

(3)But the terms of their appointment (and in particular those governing removal from office) must be such as to secure their independence from the Authority in the operation of the scheme.

(4)The function of making voluntary jurisdiction rules under section 227 [F174, the function of making consumer credit rules, the function of making determinations under section 234A(1)] and the functions conferred by paragraphs 4, 5, 7, 9 or 14 may be exercised only by the board.

(5)The validity of any act of the scheme operator is unaffected by—

(a)a vacancy in the office of chairman; or

(b)a defect in the appointment of a person as chairman or as a member of the board.

The panel of ombudsmenU.K.

4(1)The scheme operator must appoint and maintain a panel of persons, appearing to it to have appropriate qualifications and experience, to act as ombudsmen for the purposes of the scheme.U.K.

(2)A person’s appointment to the panel is to be on such terms (including terms as to the duration and termination of his appointment and as to remuneration) as the scheme operator considers—

(a)consistent with the independence of the person appointed; and

(b)otherwise appropriate.

The Chief OmbudsmanU.K.

5(1)The scheme operator must appoint one member of the panel to act as Chief Ombudsman.U.K.

(2)The Chief Ombudsman is to be appointed on such terms (including terms as to the duration and termination of his appointment) as the scheme operator considers appropriate.

StatusU.K.

6(1)The scheme operator is not to be regarded as exercising functions on behalf of the Crown.U.K.

(2)The scheme operator’s board members, officers and staff are not to be regarded as Crown servants.

(3)Appointment as Chief Ombudsman or to the panel or as a deputy ombudsman does not confer the status of Crown servant.

Annual reportsU.K.

7(1)At least once a year—U.K.

(a)the scheme operator must make a report to the Authority on the discharge of its functions; and

(b)the Chief Ombudsman must make a report to the Authority on the discharge of his functions.

(2)Each report must distinguish between functions in relation to the scheme’s compulsory jurisdiction [F175, functions in relation to its consumer credit jurisdiction] and functions in relation to its voluntary jurisdiction.

(3)Each report must also comply with any requirements specified in rules made by the Authority.

(4)The scheme operator must publish each report in the way it considers appropriate.

GuidanceU.K.

8The scheme operator may publish guidance consisting of such information and advice as it considers appropriate and may charge for it or distribute it free of charge.

BudgetU.K.

9(1)The scheme operator must, before the start of each of its financial years, adopt an annual budget which has been approved by the Authority.U.K.

(2)The scheme operator may, with the approval of the Authority, vary the budget for a financial year at any time after its adoption.

(3)The annual budget must include an indication of—

(a)the distribution of resources deployed in the operation of the scheme, and

(b)the amounts of income of the scheme operator arising or expected to arise from the operation of the scheme,

distinguishing between the scheme’s compulsory [F176, consumer credit] and voluntary jurisdiction.

Textual Amendments