Financial Services and Markets Act 2000

[F1 Regulatory principles U.K.

Textual Amendments

F1 Pt. 1A substituted for Pt. 1 (24.1.2013 for specified purposes, 19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 6(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c)(2), Sch. Pts. 2, 3, 4; S.I. 2013/423, art. 3, Sch.

3B Regulatory principles to be applied by both regulators U.K.

(1) In relation to the regulators, the regulatory principles referred to in section 1B(5)(a) and [F2 2H(2)] are as follows—

(a) the need to use the resources of each regulator in the most efficient and economic way;

(b) the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

[F3 (c) the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term;]

[F3 (c) the need to contribute towards achieving compliance by the Secretary of State with section 1 of the Climate Change Act 2008 (UK net zero emissions target) and section 5 of the Environment Act 2021 (environmental targets) where each regulator considers the exercise of its functions to be relevant to the making of such a contribution;]

(d) the general principle that consumers should take responsibility for their decisions;

(e) the responsibilities of the senior management of persons subject to requirements imposed by or under this Act, including those affecting consumers, in relation to compliance with those requirements;

(f) the desirability where appropriate of each regulator exercising its functions in a way that recognises differences in the nature of, and objectives of, businesses carried on by different persons [F4 (including different kinds of person such as mutual societies and other kinds of business organisation)] subject to requirements imposed by or under this Act;

(g) the desirability in appropriate cases of each regulator publishing information relating to persons on whom requirements are imposed by or under this Act, or requiring such persons to publish information, as a means of contributing to the advancement by each regulator of its objectives;

(h) the principle that the regulators should exercise their functions as transparently as possible.

(2) “Consumer” has the meaning given in section 1G.

[F5 (3) “Objectives”—

(a) in relation to the FCA means—

(i) operational objectives, and

(ii) in its application as a secondary objective, the competitiveness and growth objective (see section 1EB), and

(b) in relation to the PRA means—

(i) the PRA’s objectives, and

(ii) in their application as secondary objectives, the competition objective and competitiveness and growth objective (see section 2H).]

[F6 (3A) “Mutual society” has the same meaning as in section 138K.]

(4) The Treasury may by order amend subsection (2).]

Textual Amendments

F2 Word in s. 3B(1) substituted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 130(2), 148(5); S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1

F3 S. 3B(1)(c) substituted (29.8.2023 for specified purposes) by Financial Services and Markets Act 2023 (c. 29), ss. 27, 86(3) (with savings in The Financial Services and Markets Act 2023 (Commencement No. 2 and Transitional Provisions) Regulations 2023 (S.I. 2023/936), reg. 4); S.I. 2023/779, reg. 4(r)

F4 Words in s. 3B(1)(f) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 20(2), 41(3); S.I. 2016/627, reg. 2(1)(o)

F5 S. 3B(3) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 28(5), 86(3) (with savings in The Financial Services and Markets Act 2023 (Commencement No. 2 and Transitional Provisions) Regulations 2023 (S.I. 2023/936), reg. 4); S.I. 2023/779, reg. 4(s)

F6 S. 3B(3A) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 20(3), 41(3); S.I. 2016/627, reg. 2(1)(o)