Financial Services and Markets Act 2000

Changes over time for: Section 296

Alternative versions:

Changes to legislation:

Financial Services and Markets Act 2000, Section 296 is up to date with all changes known to be in force on or before 19 April 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Act applied (with modifications) by S.I. 2023/1347 reg. 8
Act power to apply conferred (temp. until 15.5.2039) by 2014 c. 21 s. 79(4)
Act power to apply conferred (temp. until 15.5.2039) by 2014 c. 21 s. 81(10)

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Pt. 17 Ch. 3B inserted by 2023 c. 29 s. 64(3)
Pt. 20C inserted by 2016 c. 14 s. 30(3)
s. 31(1)(aa) inserted by 2021 c. 22 s. 22(2)
s. 32A inserted by 2021 c. 22 s. 22(3)
s. 32A power to apply (with modifications) conferred by 2021 c. 22 s. 23(10)
s. 36A and cross-heading inserted by 2021 c. 22 s. 22(4)
s. 71J and cross-heading inserted by 2021 c. 22 Sch. 8 para. 4
s. 86(9A) inserted by S.I. 2019/707 reg. 8(9) (This amendment not applied to legislation.gov.uk. Reg. 8(6)-(10) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 13(c))
s. 87A(11) inserted by S.I. 2019/707 reg. 10(5) (This amendment not applied to legislation.gov.uk. Reg. 10(4)(5) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 15(b))
s. 124(10)(c)(i) word omitted by S.I. 2019/310 reg. 5(11)(b) (This amendment not applied to legislation.gov.uk. Reg. 5(11)(b) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(e))
s. 129(7)(a) word inserted by S.I. 2019/310 reg. 5(12)(a)(i) (This amendment not applied to legislation.gov.uk. Reg. 5(12)(a)(b) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(f))
s. 129(7)(c) omitted and word by S.I. 2019/310 reg. 5(12)(a)(ii) (This amendment not applied to legislation.gov.uk. Reg. 5(12)(a)(b) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(f))
s. 214(5A) inserted by 2021 c. 22 Sch. 8 para. 8
s. 261E(A1) inserted by 2023 c. 29 s. 64(2)(a)
s. 367A inserted by 2021 c. 22 Sch. 8 para. 10
s. 395(13)(h)(i) inserted by 2021 c. 22 Sch. 8 para. 12(2)(c)
s. 395(13)(bc)-(be) word inserted by 2021 c. 22 Sch. 8 para. 12(2)(b)
s. 395(14) inserted by 2021 c. 22 Sch. 8 para. 12(3)
s. 427A(3) words substituted by 2002 c. 40 Sch. 17 para. 59 (This amendment not applied to legislation.gov.uk. The Financial Services and Markets Act 2000 does not contain a section 427A.)
Sch. 1ZA para. 32(c) and word inserted by 2021 c. 22 Sch. 8 para. 18
Sch. 2A para. 19(2)(b)(iia) inserted by 2023 c. 29 Sch. 10 para. 19(a)
Sch. 2A 2B power to apply (with modifications) conferred by 2021 c. 22 s. 23(10)
Sch. 2A power to apply (with modifications) conferred by 2021 c. 22 s. 23(10)
Sch. 2B inserted by 2021 c. 22 Sch. 7
Sch. 2B power to apply (with modifications) conferred by 2021 c. 22 s. 23(10)
Sch. 11A para. 5(3) inserted by S.I. 2019/707 reg. 38(5)(b) (This amendment not applied to legislation.gov.uk. Reg. 38(2)-(5)(7)(8) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 20)
Sch. 17A para. 12 words substituted by S.I. 2019/662 reg. 13(1) (This amendment not applied to legislation.gov.uk. Reg. 13(1) substituted (25.6.2020) by S.I. 2020/646, regs. 1(2)(c), 11(3))

296 [F1Appropriate regulator's] power to give directions.U.K.

This section has no associated Explanatory Notes

(1)This section applies if it appears to [F2the appropriate regulator] that a recognised body—

(a)has failed, or is likely to fail, to satisfy the recognition requirements; or

(b)has failed to comply with any other obligation imposed on it by or under this Act.

[F3(1A)This section also applies [F4if it appears to the appropriate regulator that a recognised body] has failed, or is likely to fail, to comply with any obligation imposed on it by [F5or under] [F6any qualifying provision] specified (or of a description specified) [F7for the purposes of this subsection] in an order made by the Treasury.]

F8(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9(1C)This section also applies if it appears to the Bank of England that a Tier 2 third country central counterparty has failed to comply with an obligation imposed on it by or under this Act, or by or under the EMIR regulation.]

(2)[F10The regulator concerned] may direct [F11the recognised body F12...] to take specified steps for the purpose of securing the body’s compliance with—

(a)the recognition requirements; or

(b)any obligation of the kind in question.

[F13(2ZA)Where this section applies by virtue of subsection (1C), the Bank of England may direct the Tier 2 third country central counterparty to take specified steps for the purpose of securing compliance with the obligations referred to in that subsection.]

[F14(2A)In the case of [F15a recognised body other than an overseas investment exchange or overseas clearing house], those steps may include—

(a)the granting to [F16the regulator concerned] of access to the premises of [F17the body] for the purpose of inspecting—

(i)those premises; or

(ii)any documents on the premises which appear to [F16the regulator concerned] to be relevant for the purpose mentioned in subsection (2);

(b)the suspension of the carrying on of any regulated activity by [F18the body] for the period specified in the direction.]

F19(2B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F20(2C)In the case of a Tier 2 third country central counterparty, those steps may include—

(a)the granting to the Bank of England of access to any premises of the Tier 2 third country central counterparty for the purposes of inspecting—

(i)those premises; or

(ii)any documents on the premises which appear to the Bank of England to be relevant for the purposes mentioned in subsection (2ZA);

(b)the suspension for the period specified in the direction of the carrying on in the United Kingdom by the Tier 2 third country central counterparty of any activity in respect of which the third country central counterparty is exempt from the general prohibition.

(2D)The Bank of England may not inspect the premises or documents on the premises of a Tier 2 third country central counterparty without first informing the relevant third country competent authority, and inspections must be conducted in accordance with cooperation arrangements established under Article 25.7 of the EMIR regulation.

(2E)In subsection (2D), relevant third country competent authority means a regulatory authority of a country other than the United Kingdom which is responsible for the authorisation and supervision of central counterparties in its territory.]

(3)A direction under this section [F21(except a direction made under subsection (2ZA))] is enforceable, on the application of [F22the regulator concerned], by an injunction or, in Scotland, by an order for specific performance under section 45 of the M1Court of Session Act 1988.

(4)The fact that a rule made by a recognised body has been altered in response to a direction given by [F23an appropriate regulator] does not prevent it from being subsequently altered or revoked by the recognised body.

Textual Amendments

F1Words in s. 296 heading substituted (24.1.2013 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. 8 para. 14(8) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c), Sch. Pts. 2, 3; S.I. 2013/423, art. 3, Sch.