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Part XIIIU.K. Incoming Firms: Intervention by [F1FCA or PRA]

Textual Amendments

F1Words in Pt. 13 heading substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 30 (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

Modifications etc. (not altering text)

C1Pt. 13 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a) (with art. 23(2))

Pt. 13 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 32; S.I. 2001/3538, art. 2(1)

Pt. 13 extended (5.10.2001 for specified purposes otherwise 1.12.2001) by S.I. 2001/3084, art. 2(7); S.I. 2001/3538, art. 2(1)

Pt 13 excluded (1.12.2001) by S.I. 2001/3592, art. 107(2) (with art. 23(2))

C2Pt. 13 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services Act 2012 (Consumer Credit) Order 2013 (S.I. 2013/1882), arts. 1(1), 3(6)

InterpretationU.K.

[F2194A Contravention by relevant EEA firm with UK branch of requirement under markets in financial instruments directive: [F3appropriate regulator] primarily responsible for securing compliance U.K.

(1)This section applies if—

(a) a relevant EEA firm has a branch in the United Kingdom; and

(b)[F4the appropriate regulator] ascertains that the firm has contravened, or is contravening, a requirement falling within subsection (3) (in a case to which Article 62.2 of the markets in financial instruments directive applies).

(2) “Relevant EEA firm” means an EEA firm falling within paragraph 5(a) or (b) of Schedule 3 which is exercising in the United Kingdom an EEA right deriving from the markets in financial instruments directive.

(3)A requirement falls within this subsection if it is imposed on the firm—

(a)by any provision of or made under this Act which implements the markets in financial instruments directive; or

(b)by any directly applicable Community regulation made under that directive.

(4)[F4The appropriate regulator] must give the firm written notice which—

(a)requires the firm to put an end to the contravention;

(b)states that [F4the appropriate regulator's] power of intervention will become exercisable in relation to the firm if the firm continues the contravention; and

(c)indicates any requirements that [F4the appropriate regulator] proposes to impose on the firm in exercise of its power of intervention in the event of the power becoming exercisable.

(5)[F4The appropriate regulator] may exercise its power of intervention in respect of the firm if—

(a)a reasonable time has expired since the giving of the notice under subsection (4);

(b)the firm has failed to put an end to the contravention within that time; and

(c)[F4the appropriate regulator] has informed the firm's home state regulator of its intention to exercise its power of intervention in respect of the firm.

(6)Subsection (5) applies whether or not [F4the appropriate regulator's] power of intervention is also exercisable as a result of section 194.

(7) If [F4the appropriate regulator] exercises its power of intervention in respect of a relevant EEA firm by virtue of subsection (5), it must at the earliest opportunity inform the firm's home state regulator [F5 , ESMA] and the Commission of—

(a)the fact that [F4the appropriate regulator] has exercised that power in respect of the firm; and

(b)any requirements it has imposed on the firm in exercise of the power.]

[F6(8) If the firm has failed to put an end to the contravention as described in subsection (5)(b), [F4the appropriate regulator] may refer the matter to ESMA (and ESMA may act in accordance with the powers conferred on it under Article 19 of Regulation ( EU ) No. 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority)).]

[F7(9)Subsection (4) is not to be regarded as requiring the PRA to take action in relation to the contravention of a requirement falling within subsection (3) in a case where it is satisfied that the FCA is required to act, and is acting or has acted, under subsection (4)—

(a)in relation to that requirement, or

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

(10)“The appropriate regulator” means—

(a)where the relevant EEA firm is a PRA-authorised person, the FCA or, subject to subsection (9), the PRA;

(b)in any other case, the FCA.]

Textual Amendments

F3Words in s. 194A heading substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 33(4) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F4Words in s. 194A substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 33(2) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

F7S. 194A(9)(10) inserted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 33(3) (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

Modifications etc. (not altering text)

C3S. 194A(7) modified by S.I. 2001/3084, art. 2(8)(a) (as inserted (24.8.2012) by The Financial Services and Markets Act 2000 (Gibraltar) (Amendment) Order 2012 (S.I. 2012/2017), arts. 1, 2(2)(e))