Financial Services Act 2012

1. Introduction

2. Summary and Background

   1. Background

   2. Summary

3. Overview of Structure of the Act

4. Territorial Extent and Application

5. Commentary

   1. Part 1 – Bank of England

      1. Section 1: Deputy Governors

      2. Section 2: The Bank’s financial stability objective

      3. Section 3: Oversight Committee

      4. Section 4 and Schedule 1: Financial stability strategy and Financial Policy Committee, and other amendments of Bank of England Act 1998

      5. Section 5 and Schedule 2: Further amendments relating to Bank of England

   2. Part 2 - Amendments of Financial Services and Markets Act 2000

      1. Financial Conduct Authority and Prudential Regulation Authority

         1. Section 6 and Schedule 3: The new Regulators

            1. The FCA

            2. The PRA

            3. Further provisions relating to the FCA and the PRA

      2. Regulated activities

         1. Section 7: Extension of scope of regulation

         2. Section 8: Orders under section 22 of FSMA 2000

         3. Section 9: Designation of activities requiring prudential regulation by PRA

      3. Appointed representatives

         1. Section 10: Permission to carry on regulated activities

      4. Permission to carry on regulated activities

         1. Section 11: Permission to carry on regulated activities

      5. Passporting

         1. Section 12 and Schedule 4: Passporting: exercise of EEA rights and Treaty rights

      6. Performance of regulated activities

         1. Section 13: Prohibition orders

         2. Section 14: Approval for particular arrangements

         3. Section 15 and Schedule 5: Further amendments relating to performance of regulated activities

      7. Official listing

         1. Section 16: FCA to exercise functions under Part 6 of FSMA

         2. Section 17: Discontinuance or suspension at the request of the issuer: procedure

         3. Section 18: Listing rules: disciplinary powers in relation to sponsors

         4. Section 19: Primary information providers

         5. Section 20: Penalties for breach of Part 6 rules

         6. Section 21: Repeal of competition scrutiny power

      8. Control of business transfers

         1. Section 22 and Schedule 6: Control of business transfers

      9. Hearings and appeals

         1. Section 23: Proceedings before Tribunal

      10. Rules and guidance

          1. Section 24: Rules and guidance

      11. Short selling

          1. Section 25: functions related to short selling

      12. Control over authorised persons

          1. Section 26: Control over authorised persons

          2. Section 27: Powers of regulators in relation to parent undertakings

      13. Recognised investment exchanges and clearing houses

          1. Section 28: Exemption for recognised investment exchanges and recognised clearing houses

          2. Section 29 and Schedule 7: Powers in relation to recognised investment exchanges and clearing houses

          3. Section 30: Recognition requirements: power of FCA and Bank to make rules

          4. Section 31: additional power to direct UK clearing houses

          5. Section 32: Recognised bodies: procedure for giving directions under s.296 etc

          6. Section 33: Power to take disciplinary measures against recognised bodies

          7. Section 34: Repeal of special competition regime

          8. Section 35 and Schedule 8: Sections 28 to 34: minor and consequential amendments

      14. Suspension and removal of financial instruments from trading

          1. Section 36: Suspension and removal of financial instruments from trading

      15. Discipline and enforcement

          1. Section 37 and Schedule 9: Discipline and enforcement

      16. Financial Services Compensation Scheme

          1. Section 38 and Schedule 10: The Financial Services Compensation Scheme

      17. Financial ombudsman service

          1. Section 39 and Schedule 11: The financial ombudsman service

      18. Lloyd’s

          1. Section 40: Lloyd’s

      19. Information

          1. Section 41 and Schedule 12: Information, investigations, disclosure etc.

      20. Auditors and actuaries

          1. Section 42 and Schedule 13: Auditors and actuaries

      21. Consumer protection and competition

          1. Section 43: Provision about consumer protection and competition

      22. Insolvency

          1. Section 44 and Schedule 14: Insolvency

      23. Miscellaneous amendments of FSMA 2000

          1. Section 45 and Schedule 15: The consumer financial education body

          2. Section 46 and Schedule 16: Members of the professions

          3. Section 47: International obligations

          4. Section 48: Interpretation of FSMA 2000

          5. Section 49: Parliamentary control of statutory instruments

   3. Part 3 – Mutual Societies

      1. Section 50: Mutual societies: power to transfer functions

      2. Section 51: Further provision that may be included in orders under section 50

      3. Section 52: power to apply or disapply provision made by or under FSMA 2000

      4. Section 53: Evidence

      5. Section 54: Repeals in Part 21 of FSMA 2000

      6. Building societies: miscellaneous

         1. Section 55: Building societies: creation of floating charges

         2. Section 56: Power to direct transfer of building society’s business

   4. Part 4 – Collaboration between Treasury and Bank of England, Fca Or Pra

      1. Section 58: Duty of Bank to notify Treasury of possible need for public funds

      2. Section 59: Duty of Bank to notify Treasury of changes

      3. Section 60: Circumstances in which Treasury power of direction exercisable

      4. Section 61: Treasury power of direction

      5. Section 62: Directions under section 61: supplementary provisions

      6. Section 63: Duty to lay direction etc before Parliament

      7. Section 64: Duty of Treasury, Bank and PRA to coordinate discharge of functions

      8. Section 65: Memorandum of understanding: crisis management

      9. Section 66: Memorandum of understanding: international organisations

      10. Section 67: Interpretation of Part 4

   5. Part 5 – Inquiries and Investigations

      1. Inquiries

         1. Section 68: Cases in which Treasury may arrange independent inquiries

         2. Section 69: Power to appoint person to hold an inquiry

         3. Section 70: Powers of appointed person and procedure

         4. Section 71: Conclusion of inquiry

         5. Section 72: Obstruction and contempt

      2. Investigations

         1. Section 73: Duty of FCA to investigate and report on possible regulatory failure

         2. Section 74: Duty of PRA to investigate and report on possible regulatory failure

         3. Section 75: Interpretation of section 74

         4. Section 76: Modification of section 74 in relation to Lloyd’s

         5. Section 77: Power of Treasury to require FCA or PRA to undertake investigation

         6. Section 78: Conduct of investigation

         7. Section 79: Conclusion of investigation

         8. Section 80: Statements of policy

         9. Section 81: publication of directions

      3. Publication of Reports

         1. Section 82: publication of reports of inquiries and investigations

      4. Supplementary

         1. Section 83: Interpretation and supplementary provision

   6. Part 6 – Investigation of Complaints Against Regulators

      1. Sections 84 to 86: Arrangements for the investigation of complaints

      2. Section 87: Investigation of complaints

      3. Section 88: Exemption from liability in damages

   7. Part 7 – Offences Relating to Financial Services

      1. Section 89: misleading statements

      2. Section 90: misleading impressions

      3. Section 91: misleading statements etc in relation to benchmarks

      4. Section 92: penalties

      5. Section 93: interpretation of Part 7

      6. Section 94: affirmative procedure for certain orders

      7. Section 95: consequential repeal

   8. Part 8 – Amendments of Banking Act 2009

      1. Special resolution regime and bank administration

         1. Section 96: objectives and conditions

         2. Section 97: Private sector purchasers

         3. Section 98: Property transfer instruments: property held on trust

         4. Section 99: Reports following exercise of a stabilisation power

         5. Section 100: groups

         6. Section 101: application to investment firms

         7. Section 102: application to UK clearing houses

         8. Section 103: State aid

      2. Inter-bank payment systems

         1. Section 104: Inter-bank payment systems

         2. Section 105: International obligations

      3. Further amendments

         1. Section 106 and Schedule 17: Amendments relating to new regulators

   9. Part 9 – Miscellaneous

      1. Consumer credit

         1. Section 107: Power to make further provision about regulation of consumer credit

         2. Section 108: suspension of licences under Part 3 of Consumer Credit Act 1974

      2. Penalties received by Financial Services Authority or Bank of England

         1. Section 109: payment to Treasury of penalties received by Financial Services Authority

         2. Section 110: payment to Treasury of penalties received by Bank of England

      3. Amendments of the Companies Act 1989

         1. Section 111: Amendments of the Companies Act 1989

      4. Settlement systems

         1. Section 112: Evidencing and transfer of title to securities without written instrument

      5. Director of Savings

         1. Section 113: Provision of services by Director of Savings

   10. Part 10 - General

       1. Further amendments and repeals

          1. Section 114 and Schedules 18 and 19: Further minor and consequential amendments and repeals

       2. Orders

          1. Section 115: Orders: general

          2. Section 116: Orders: Parliamentary control

       3. Interpretation

          1. Section 117: Interpretation

       4. Consequential and transitional provisions

          1. Section 118: Power to make further consequential amendments etc.

          2. Section 119 and Schedules 20 and 21: Transitional provisions and savings

       5. Final provisions

          1. Section 120: Financial provision

          2. Section 121: Extent

          3. Section 122: Commencement

          4. Section 123: Short title

6. Commencement

7. Hansard References

8. Glossary of Terms and Expressions