The Financial Services and Markets Act 2000 (Consultation with Competent Authorities) Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations specify the requirements as to consultation with other EEA competent authorities, which the Financial Services Authority (“the Authority”) must comply with when it performs its functions under Part XII (control over authorised persons) of the Financial Services and Markets Act 2000 (c. 8.) (“the Act”). The consultation requirements apply where the Authority receives a notice of control under section 178 of the Act from an EEA firm that is an investment firm or credit institution (or from a parent undertaking of such a firm or institution) and that notice relates to a change of control in a UK authorised person who is either an investment firm or who has permission to accept deposits and which indicates that the acquirer is or proposes to become a parent undertaking of that authorised person. Where the consultation requirements apply, the Authority must consult the home state regulator of each EEA firm before approving the change of control or serving a warning notice under section 183 or section 185 of the Act. Where a notice of control has not been given in respect of such a change of control, and the Authority proposes to give notice of objection under section 187(1) of the Act on the basis that it is not satisfied that the approval requirements set out in section 186 of the Act have been met, the Authority must consult the home state regulator of each EEA firm.

These Regulations implement in part Council Directive 93/22/EEC on investment services in the securities field (OJ L141, 11.6.93, p. 27) and European Parliament and Council Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions (OJ L126, 26.5.2000, p. 1).