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Financial Services and Markets Act 2000

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Financial Services and Markets Act 2000 is up to date with all changes known to be in force on or before 20 May 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. Help about Changes to Legislation

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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.

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Changes and effects yet to be applied to :

  • Pt. 9A Ch. 2 applied in part (with modifications) by S.I. 2017/701, reg. 15A (as inserted) by 2023 c. 29 Sch. 2 para. 45
  • Pt. 9A Ch. 2A repealed by 2023 c. 29 Sch. 1 Pt. 4
  • s. 192JA 192JB and cross-headings inserted by 2013 c. 33 s. 133(1)
  • s. 3A(3)(a) words inserted by 2021 c. 22 Sch. 8 para. 2
  • s. 33(1)(a) words inserted by 2021 c. 22 Sch. 8 para. 3
  • s. 45(1) amendment to earlier affecting provision SI 2011/2832 art. 5(4) by S.I. 2013/472 Sch. 2 para. 220(a)(iv)
  • s. 49(2A) inserted by S.I. 2003/1476 art. 20(3) (This amendment not applied to legislation.gov.uk. This amending provision is revoked (15.7.2004) by S.I. 2004/1610, art. 2.)
  • s. 55J(7A)-(7C) repealed by 2023 c. 29 Sch. 1 Pt. 4
  • s. 55KA repealed by 2023 c. 29 Sch. 1 Pt. 4
  • s. 73A(5) omitted by S.I. 2019/707 reg. 4 (This amendment not applied to legislation.gov.uk. Reg. 4 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 11)
  • s. 84(2)(i) words omitted by S.I. 2019/707 reg. 6(2) (This amendment not applied to legislation.gov.uk. Reg. 6 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 12)
  • s. 84(4) substituted by S.I. 2019/707 reg. 6(3) (This amendment not applied to legislation.gov.uk. Reg. 6 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 12)
  • s. 84(5) omitted by S.I. 2019/707 reg. 6(4) (This amendment not applied to legislation.gov.uk. Reg. 6 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 12)
  • s. 84(6) words substituted by S.I. 2019/707 reg. 6(5)(a) (This amendment not applied to legislation.gov.uk. Reg. 6 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 12)
  • s. 84(6) words substituted by S.I. 2019/707 reg. 6(5)(b) (This amendment not applied to legislation.gov.uk. Reg. 6 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 12)
  • s. 86(1)(b) words substituted by S.I. 2019/707 reg. 8(2)(a) (This amendment not applied to legislation.gov.uk. Reg. 8(2)(a) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 13(a))
  • s. 86(1A)(c) words omitted by S.I. 2019/707 reg. 8(3) (This amendment not applied to legislation.gov.uk. Reg. 8(3)(4) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 13(b))
  • s. 86(1B)(a) words omitted by S.I. 2019/707 reg. 8(4)(a) (This amendment not applied to legislation.gov.uk. Reg. 8(3)(4) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 13(b))
  • s. 86(1B)(b) words substituted by S.I. 2019/707 reg. 8(4)(b) (This amendment not applied to legislation.gov.uk. Reg. 8(3)(4) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 13(b))
  • s. 86(7)(a) words substituted by S.I. 2019/707 reg. 8(6)(a)(i) (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. 86(7)(a) words substituted by S.I. 2019/707 reg. 8(6)(a)(ii) (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. 86(7)(b) words substituted by S.I. 2019/707 reg. 8(6)(b)(i) (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. 86(7)(b) words substituted by S.I. 2019/707 reg. 8(6)(b)(ii) (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. 86(7)(c) substituted by S.I. 2019/707 reg. 8(6)(c) (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. 86(7)(d)(ii) words substituted by S.I. 2019/707 reg. 8(6)(d) (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. 86(8) word inserted by S.I. 2019/707 reg. 8(7) (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. 86(9) word inserted by S.I. 2019/707 reg. 8(8)(a) (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. 86(9)(b) words substituted by S.I. 2019/707 reg. 8(8)(b) (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. 86(10) omitted by S.I. 2019/707 reg. 8(10) (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. 87(4) words omitted by S.I. 2019/707 reg. 9 (This amendment not applied to legislation.gov.uk. Reg. 9 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 14)
  • s. 87A(1)(c) words substituted by S.I. 2019/707 reg. 10(2)(b) (This amendment not applied to legislation.gov.uk. Reg. 10(2)(b) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 15(a))
  • s. 87A(7)(a) words omitted by S.I. 2019/707 reg. 10(4) (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. 87D(1) words omitted by S.I. 2019/707 reg. 11(2) (This amendment not applied to legislation.gov.uk. Reg. 11 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(a))
  • s. 87D(1A) omitted by S.I. 2019/707 reg. 11(3) (This amendment not applied to legislation.gov.uk. Reg. 11 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(a))
  • s. 87E 87F omitted by S.I. 2019/707 reg. 12 (This amendment not applied to legislation.gov.uk. Reg. 12 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(b))
  • s. 87H 87I omitted by S.I. 2019/707 reg. 14 (This amendment not applied to legislation.gov.uk. Reg. 14 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(d))
  • s. 87K(5) words substituted by S.I. 2019/707 reg. 15 (This amendment not applied to legislation.gov.uk. Reg. 15 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(e))
  • s. 87L(5) words substituted by S.I. 2019/707 reg. 16 (This amendment not applied to legislation.gov.uk. Reg. 16 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(f))
  • s. 87M(4) words substituted by S.I. 2019/707 reg. 17 (This amendment not applied to legislation.gov.uk. Reg. 17 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(g))
  • s. 87FB omitted by S.I. 2019/707 reg. 13 (This amendment not applied to legislation.gov.uk. Reg. 13 omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 16(c))
  • s. 91(1A) words substituted by S.I. 2019/707 reg. 30(2)(b) (This amendment not applied to legislation.gov.uk. Reg. 30(2) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 17)
  • s. 91(1A)(e) words substituted by S.I. 2019/707 reg. 30(2)(a) (This amendment not applied to legislation.gov.uk. Reg. 30(2) omitted (6.9.2019) by virtue of S.I. 2019/1234, regs. 1(2), 17)
  • s. 97(1)(a)(ii) substituted by S.I. 2019/707 reg. 31(a) (This amendment not applied to legislation.gov.uk. Reg. 31(a)(b) substituted immediately before IP completion day by virtue of S.I. 2019/1234, regs. 1(3), 18)
  • s. 97(1)(b)(ii) substituted by S.I. 2019/707 reg. 31(b) (This amendment not applied to legislation.gov.uk. Reg. 31(a)(b) substituted immediately before IP completion day by virtue of S.I. 2019/1234, regs. 1(3), 18)
  • s. 122IA omitted by S.I. 2019/310 reg. 5(7) (This amendment not applied to legislation.gov.uk. Reg. 5(7) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(a))
  • s. 123(1)(c)(i) word omitted by S.I. 2019/310 reg. 5(8)(b) (This amendment not applied to legislation.gov.uk. Reg. 5(8)(b) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(b))
  • s. 123A(1)(c) words omitted by S.I. 2019/310 reg. 5(9)(b) (This amendment not applied to legislation.gov.uk. Reg. 5(9)(b)-(d) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(c))
  • s. 123A(2)(c) omitted by S.I. 2019/310 reg. 5(9)(c) (This amendment not applied to legislation.gov.uk. Reg. 5(9)(b)-(d) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(c))
  • s. 123A(8) omitted by S.I. 2019/310 reg. 5(9)(d) (This amendment not applied to legislation.gov.uk. Reg. 5(9)(b)-(d) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(c))
  • s. 123B(1)(c) words omitted by S.I. 2019/310 reg. 5(10)(b) (This amendment not applied to legislation.gov.uk. Reg. 5(10)(b) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(d))
  • s. 129(8) omitted by S.I. 2019/310 reg. 5(12)(b) (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. 131AB(1) words omitted by S.I. 2019/310 reg. 5(14)(b)(iii) (This amendment not applied to legislation.gov.uk. Reg. 5(14)(b)(iii) omitted immediately before IP completion day by virtue of S.I. 2020/1385, regs. 1(4), 51(2)(g))
  • s. 137T applied (with modifications) by S.I. 2017/701, reg. 15A (as inserted) by 2023 c. 29 Sch. 2 para. 45
  • s. 137FA(8) words inserted by 2015 c. 8 Sch. 2 para. 21(a)
  • s. 137FA(8) words omitted by 2015 c. 8 Sch. 2 para. 21(b)
  • s. 137FA(8) words substituted by 2015 c. 8 Sch. 2 para. 21(c)
  • s. 138I applied (with modifications) by Regulation (EU) No. 600/2014, Art. 50D(2A) (as inserted) by 2023 c. 29 Sch. 2 para. 27(4)
  • s. 138BA applied by S.I. 2024/539 reg. 2
  • s. 141A applied (with modifications) by S.I. 2017/701, reg. 15A (as inserted) by 2023 c. 29 Sch. 2 para. 45
  • s. 142X(2) words substituted by 2015 c. 8 Sch. 2 para. 22(2)
  • s. 142X(4) words substituted by 2015 c. 8 Sch. 2 para. 22(3)
  • s. 168(4)(j) word omitted by S.I. 2013/1773 Sch. 1 para. 10
  • s. 175(5A) omitted by 2024 c. 9 Sch. para. 5
  • s. 175(5B) omitted by 2024 c. 9 Sch. para. 5
  • s. 177(6) words substituted by 2003 c. 44 Sch. 26 para. 54(2)
  • s. 195A(12) words substituted by S.I. 2013/1797 Sch. 1 para. 1(3) (This amendment not applied to legislation.gov.uk. This amendment is omitted (20.2.2019) by virtue of S.I. 2019/328, reg. 20(2)(a) without ever being in force)
  • s. 212(4) word substituted by 2012 c. 21 Sch. 10 para. 2(3)
  • s. 212(5) word substituted by 2012 c. 21 Sch. 10 para. 2(3)
  • s. 213(7) words added by 2009 c. 1 s. 170(2)
  • s. 214A inserted by 2009 c. 1 s. 170(1)
  • s. 218(1) words inserted by 2009 c. 1 s. 170(3)(a)
  • s. 218(2)(b) words added by 2009 c. 1 s. 170(3)(b)
  • s. 223A inserted by 2009 c. 1 s. 172
  • s. 234J(2)(a) word inserted by S.I. 2019/93 Sch. 1 para. 8(2) (This amendment not applied to legislation.gov.uk. Sch. 1 para. 8(2)(3) substituted immediately before IP completion day by S.I. 2020/1343, regs. 1(1), 20)
  • s. 234J(2)(c) omitted by S.I. 2019/93 Sch. 1 para. 8(3) (This amendment not applied to legislation.gov.uk. Sch. 1 para. 8(2)(3) substituted immediately before IP completion day by S.I. 2020/1343, regs. 1(1), 20)
  • s. 234J(2)(d) omitted by S.I. 2019/93 Sch. 1 para. 8(3) (This amendment not applied to legislation.gov.uk. Sch. 1 para. 8(2)(3) substituted immediately before IP completion day by S.I. 2020/1343, regs. 1(1), 20)
  • s. 261E(1) word substituted by 2023 c. 29 s. 64(2)(b)
  • s. 263 repealed by 2006 c. 46 Sch. 16
  • s. 312E(3)(a) words substituted by S.I. 2019/662 reg. 8(2)(c)(i) (This amendment not applied to legislation.gov.uk. Reg. 8(2)(c)(i) substituted (25.6.2020) by S.I. 2020/646, regs. 1(2)(c), 11(2))
  • s. 313(1) words substituted by S.I. 2019/1416 reg. 2 (This amendment not applied to legislation.gov.uk. Reg. 2 omitted 25.6.2020) by virtue of S.I. 2020/646, regs. 1(2)(c), 15(2))
  • s. 351 amendment to earlier affecting provision SI 2009/209 Sch. 5 para. 5 by S.I. 2013/472 Sch. 2 para. 155(6)(e)
  • s. 351 amendment to earlier affecting provision SI 2011/99 Sch. 3 para. 6 by S.I. 2013/472 Sch. 2 para. 196(5)(f)
  • s. 352(5) words substituted by 2003 c. 44 Sch. 26 para. 54(3)
  • s. 367(3)(za) repealed by 2023 c. 29 Sch. 1 Pt. 4
  • s. 380(6)(a)(ii) word omitted by S.I. 2016/225 reg. 2(6)(a)
  • s. 380(6)(a)(iii) word omitted by S.I. 2016/225 reg. 2(6)(b)
  • s. 380(6)(a)(iv) s. 380(6)(a)(iii) renumbered as s. 380(6)(a)(iv) by S.I. 2016/225 reg. 2(6)(c)
  • s. 392(a) words inserted by 2021 c. 22 Sch. 8 para. 11(2)
  • s. 392(b) words inserted by 2021 c. 22 Sch. 8 para. 11(3)
  • s. 395(13) words substituted by 2021 c. 22 Sch. 8 para. 12(2)(a)
  • s. 395(13)(f)-(g) word inserted by 2021 c. 22 Sch. 8 para. 12(2)(b)
  • s. 395(13)(bb)-(bbza) word inserted by 2021 c. 22 Sch. 8 para. 12(2)(b)
  • s. 395(13)(za)-(bza) word inserted by 2021 c. 22 Sch. 8 para. 12(2)(b)
  • s. 398(1A)(e) word omitted by S.I. 2017/701 Sch. 2 para. 48(b)
  • s. 409 omitted by 2021 c. 22 Sch. 8 para. 13
  • s. 418(1) word substituted by S.I. 2013/1797 Sch. 1 para. 1(4)(a) (This amendment not applied to legislation.gov.uk. This amendment is omitted (20.2.2019) by virtue of S.I. 2019/328, reg. 20(2)(b) without ever being in force)
  • s. 418(1) word substituted by S.I. 2013/1797, Sch. 1 para. 1(4)(a) (as substituted) by S.I. 2014/1292 art. 5(a) (This S.I. is amended by S.I. 2014/1313)
  • s. 418(5B) amendment to earlier affecting provision S.I. 2013/1797, Sch. 1 para. 1(4)(b) by S.I. 2014/1292 art. 5(b) (This S.I. is amended by S.I. 2014/1313)
  • s. 418(5C) inserted by 2021 c. 22 Sch. 8 para. 15
  • s. 418(6) word substituted by S.I. 2013/1797, Sch. 1 para. 1(4)(c) (as substituted) by S.I. 2014/1292 art. 5(c) (This S.I. is amended by S.I. 2014/1313)
  • s. 422A(10) omitted by S.I. 2019/632 reg. 88(f) (This amendment not applied to legislation.gov.uk. Reg. 88(f) substituted immediately before IP completion day by S.I. 2019/680, regs. 1(3), 9(5))
  • Sch. 1ZA para. 24(c) and word inserted by 2021 c. 22 Sch. 8 para. 17
  • Sch. 1ZB para. 16(3)(c)(i) word inserted by 2013 c. 33 s. 4(7)
  • Sch. 2A para. 19(2)(b)(ii) word omitted by 2023 c. 29 Sch. 10 para. 19(a)
  • Sch. 2A para. 19(2)(b)(iii) words substituted by 2023 c. 29 Sch. 10 para. 19(b)
  • Sch. 11 para. 16(2) words inserted by 2004 c. 33 Sch. 27 para. 166 (This amendment not applied to legislation.gov.uk. Sch. 11 repealed (1.7.2005) by S.I. 2005/1433, reg. 2(1), Sch. 1 para. 16)
  • Sch. 11A para. 2(a) words substituted by S.I. 2019/707 reg. 38(2)(a) (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. 11A para. 2(b) words substituted by S.I. 2019/707 reg. 38(2)(a) (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. 11A para. 2(c) words substituted by S.I. 2019/707 reg. 38(2)(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. 11A para. 2(e) words substituted by S.I. 2019/707 reg. 38(2)(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. 11A para. 3 words substituted by S.I. 2019/707 reg. 38(3) (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. 11A para. 4 words substituted by S.I. 2019/707 reg. 38(4) (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. 11A para. 5 words substituted by S.I. 2019/707 reg. 38(5)(a) (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. 11A para. 8(2)(a) words substituted by S.I. 2019/707 reg. 38(7) (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. 11A para. 9(1) words substituted by S.I. 2019/707 reg. 38(8) (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. 12 para. 2(3) omitted by S.I. 2019/632 reg. 106(2)(b) (This amendment not applied to legislation.gov.uk. Reg. 106(2) omitted immediately before IP completion day by virtue of S.I. 2019/680, regs. 1(3), 9(6))
  • Sch. 12 para. 2(1)(b) and word substituted by S.I. 2019/632 reg. 106(2)(a) (This amendment not applied to legislation.gov.uk. Reg. 106(2) omitted immediately before IP completion day by virtue of S.I. 2019/680, regs. 1(3), 9(6))
  • Sch. 13 amendment to earlier affecting provision SI 2008/3249 Sch. para. 14-18 by S.I. 2013/472 Sch. 2 para. 152
  • Sch. 13 amendment to earlier affecting provision SI 2008/718 Sch. para. 15-19 by S.I. 2013/472 Sch. 2 para. 139
  • Sch. 17 para. 16D(a) words substituted by 2013 c. 22 Sch. 9 para. 52
  • Sch. 19 Pt. 1 entry substituted by 2003 c. 20 Sch. 2 para. 24 (This amendment not applied to legislation.gov.uk. Sch. 19 repealed (20.6.2003) by Enterprise Act 2002 (c. 40), ss. 247(k), 278(2), 279, Sch. 26 (with s. 237); S.I. 2003/1397, art. 2(1), Sch.)

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

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

SCHEDULES

Section 1.

F1SCHEDULE 1U.K. The Financial Services Authority

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Schs. 1ZA, 1ZB substituted for Sch. 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), s. 122(3), Sch. 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.

Section 1A

[F1SCHEDULE 1ZAU.K.The Financial Conduct Authority

Modifications etc. (not altering text)

C1Sch. 1ZA applied (with modifications) (6.4.2018 immediately after 2016 c. 16 (N.I.), s. 8(2) comes into force) by The Financial Services Act 2012 (Mutual Societies) Order 2018 (S.I. 2018/323), art. 1, Sch. 1 paras. 2(2)(a), 5(1)(2) (with art. 3)

PART 1U.K.General

InterpretationU.K.

1U.K.In this Schedule—

  • the Bank” means the Bank of England;

  • functions”, in relation to the FCA, means functions conferred on the FCA by or under any provision of this Act (see section 1A(6) which affects the meaning of references to such functions).

ConstitutionU.K.

2(1)The constitution of the FCA must provide for the FCA to have a governing body.U.K.

(2)The governing body must consist of—

(a)a chair appointed by the Treasury,

(b)a chief executive appointed by the Treasury,

(c)the Bank's Deputy Governor for prudential regulation,

[F2(ca)the Chair of the Payment Systems Regulator,]

(d)2 members appointed jointly by the Secretary of State and the Treasury, and

(e)at least one other member appointed by the Treasury.

(3)The members referred to in sub-paragraph (2)(a), (c) [F3, (ca)] and (d) are to be non-executive members.

(4)In exercising its powers under sub-paragraph (2)(e) to appoint executive or non-executive members, the Treasury must secure that the majority of members of the governing body are non-executive members.

(5)An employee of the FCA may not be appointed as a non-executive member.

(6)In the following provisions of this Schedule an “appointed member” means a member of the governing body appointed under sub-paragraph (2)(a), (b), (d) or (e).

[F42A(1)The term of office of a person appointed as chief executive under paragraph 2(2)(b) must not begin before—U.K.

(a)the person has, in connection with the appointment, appeared before the Treasury Committee of the House of Commons, or

(b)(if earlier) the end of the period of 3 months beginning with the day on which the appointment is made.

[F5(1A)Appointment as chief executive under paragraph 2(2)(b) is to be for a period of 5 years.]

(2)[F6Sub-paragraphs (1) and (1A) do] not apply if the person is appointed as chief executive on an acting basis, pending a further appointment being made.

(3)The reference to the Treasury Committee of the House of Commons—

(a)if the name of that Committee is changed, is a reference to that Committee by its new name, and

(b)if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, is to be treated as a reference to the Committee by which the functions are exercisable.

(4)Any question arising under sub-paragraph (3) is to be determined by the Speaker of the House of Commons.]

[F72B(1)A person may not be appointed as chief executive under paragraph 2(2)(b) more than twice.U.K.

(2)For this purpose an appointment as chief executive on an acting basis, pending a further appointment being made, is to be ignored.]

3(1)The terms of service of the appointed members are to be determined by the Treasury.U.K.

(2)In the case of a member appointed under paragraph 2(2)(d), the Treasury must consult the Secretary of State about the terms of service.

(3)Before appointing a person as an appointed member, the Treasury (or as the case requires the Treasury and the Secretary of State) must consider whether the person has any financial or other interests that could have a material effect on the extent of the functions as member that it would be proper for the person to discharge.

(4)The terms of service of an appointed member (“M”) must be such as—

(a)to secure that M is not subject to direction by the Treasury or the Secretary of State,

(b)to require M not to act in accordance with the directions of any other person, and

(c)to prohibit M from acquiring any financial or other interests that have a material effect on the extent of the functions as member that it would be proper for M to discharge.

(5)If an appointed member is an employee of the FCA, the member's interest as employee is to be disregarded for the purposes of sub-paragraphs (3) and (4)(c) and paragraph 4(1)(b).

(6)A person who is an employee of the PRA [F8or of the Payment Systems Regulator] is disqualified for appointment as an appointed member.

(7)The FCA may pay expenses to [F9a person holding an office mentioned in paragraph 2(2)(c) or (ca)] in respect of that person's service as a member.

4(1)The Treasury may remove an appointed member from office—U.K.

(a)on the grounds of incapacity or serious misconduct, or

(b)on the grounds that in all the circumstances the member's financial or other interests are such as to have a material effect on the extent of the functions as member that it would be proper for the person to discharge.

(2)Before removing from office a member appointed under paragraph 2(2)(d), the Treasury must consult the Secretary of State.

5U.K.The validity of any act of the FCA is not affected—

(a)by any vacancy in any of the offices mentioned in paragraph 2(2)(a), (b) [F10, (c) or (ca)], or

(b)by a defect in the appointment of a person—

(i)to any of those offices, or

(ii)as an appointed member.

Textual Amendments

6U.K.The Bank's Deputy Governor for prudential regulation must not take part in any discussion by or decision of the FCA which relates to—

(a)the exercise of the FCA's functions in relation to a particular person, or

(b)a decision not to exercise those functions.

[F116A(1)The Chair of the Payment Systems Regulator must not take part in any discussion by or decision of the FCA which relates to—U.K.

(a)the exercise of the FCA’s functions in relation to a particular person, or

(b)a decision not to exercise those functions.

(2)Sub-paragraph (1) does not apply at any time when the person who is the Chair of the Payment Systems Regulator also holds the office mentioned in paragraph 2(2)(a).]

RemunerationU.K.

7U.K.The FCA must pay to the appointed members such remuneration as may be determined—

(a)in the case of the non-executive members, by the Treasury;

(b)in the case of the executive members, by the FCA.

Arrangements for discharging functionsU.K.

8(1)The FCA may make arrangements for any of its functions to be discharged by a committee, sub-committee, officer or member of staff of the FCA, but subject to the following provisions.U.K.

(2)In exercising its legislative functions, the FCA must act through its governing body.

(3)For that purpose, the following are the FCA's legislative functions—

(a)making rules [F12under this Act or under [F13assimilated direct] legislation];

F14(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)issuing statements under—

(i)section [F1563ZD,] 63C, F16... 69, 88C, 89S, 93, 124, 131J, 138N, [F17142V,] 192H, 192N, 210 [F18or 312J],

(ii)section 345D (whether as a result of section 345(2) [F19, section 249(1) or 261K(1)]), or

(iii)section 80 of the Financial Services Act 2012;

(d)giving directions under section 316, 318 or 328.

F20(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F21(f)making technical standards in accordance with Chapter 2A of Part 9A;

(g)making EU Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment etc.) (EU Exit) Regulations 2018.]

[F22(3A)In exercising its functions under sections 9(2) and 10 of the Financial Guidance and Claims Act 2018 (approving and reviewing standards set by [F23Money and Pensions Service]), the FCA must act through its governing body.]

(4)The function of issuing general guidance (as defined in section 139B(5) F24...) may not be discharged by an officer or member of staff of the FCA.

[F25(5)In respect of the exercise of a function under Part 1 of the Competition Act 1998, the power in sub-paragraph (1) is subject to provision in rules made under section 51 of that Act by virtue of paragraph 1A of Schedule 9 to that Act.]

Textual Amendments

F16Word in Sch. 1ZA para. 8(3)(c)(i) omitted (7.3.2016) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 16(b)(ii); S.I. 2015/490, art. 2(1)(b) (with savings and transitional provisions in S.I. 2015/492 (as amended by S.I. 2015/1660))

F17Word in Sch. 1ZA para. 8(3)(c)(i) inserted (1.1.2019) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 4(6), 148(5); S.I. 2018/1306, art. 2(d)

Modifications etc. (not altering text)

C5Sch. 1ZA para. 8(2) modified (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 64(6)

C6Sch. 1ZA para. 8(2) modified (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 85(8)

RecordsU.K.

9U.K.The FCA must maintain satisfactory arrangements for—

(a)recording decisions made in the exercise of its functions, and

(b)the safe-keeping of those records which it considers ought to be preserved.

Publication of record of meetings of governing bodyU.K.

10(1)The FCA must publish a record of each meeting of its governing body—U.K.

(a)before the end of the period of 6 weeks beginning with the day of the meeting, or

(b)if no meeting of the governing body is subsequently held during that period, before the end of the period of 2 weeks beginning with the day of the next meeting.

(2)The record must specify any decision taken at the meeting (including decisions to take no action) and must set out, in relation to each decision, a summary of the deliberations of the governing body.

(3)Sub-paragraphs (1) and (2) do not require the publication of information whose publication within the time required by sub-paragraph (1) would in the opinion of the governing body be against the public interest.

(4)Publication under this section is to be in such manner as the FCA thinks fit.

Annual reportU.K.

11(1)At least once a year the FCA must make a report to the Treasury on—U.K.

(a)the discharge of its functions,

(b)the extent to which, in its opinion, its operational objectives have been advanced,

(c)the extent to which, in its opinion, it has acted compatibly with its strategic objective,

(d)how, in its opinion, it has complied with the duty in section 1B(4),

[F26(da)how, in its opinion, it has complied with the duty in section 1B(4A),]

(e)its consideration of the matter mentioned in section 1B(5)(b),

(f)its consideration of the principles in section 3B,

(g)how it has complied with section 3D,

(h)any direction received under section 3I or 3J during the period to which the report relates,

[F27(ha)any rules that it has made as a result of section 137C during the period to which the report relates and the kinds of regulated credit agreement (within the meaning of that section) to which the rules apply,]

F28(hb). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F29(hc)how it has satisfied the requirement in section 138EA(2) so far as regarding disclosure requirements in connection with matters relating to sustainability],

(i)how it has complied with section 354A(1) so far as relating to co-operation with persons outside the United Kingdom, F30...

[F31(ia)how, in its opinion, it has complied with its duties under sections 9(2) and 10 of the Financial Guidance and Claims Act 2018, F32...]

[F33(ib)how it has satisfied the requirement in section 416B to have regard to any SDR policy statement of the Treasury published and not withdrawn under section 416A (sustainability disclosure requirements: policy statement)],

[F34(ib)any engagement with the statutory panels of the FCA, the PRA or the Payment Systems Regulator,

(ic)how it has complied with the statement of policy on panel appointments prepared under section 1RA in relation to the process for making appointments and the matters considered in determining who is appointed, and]

(j)such other matters as the Treasury may from time to time direct.

(2)Sub-paragraph (1) does not require the inclusion in the report of any information whose publication would in the opinion of the FCA be against the public interest.

(3)The report must be accompanied by—

(a)a statement of the remuneration of the appointed members of the governing body of the FCA during the period to which the report relates, and

(b)such other reports or information, prepared by such persons, as the Treasury may from time to time direct.

(4)The Treasury must lay before Parliament a copy of each report received by them under this paragraph.

[F35(5)In this paragraph “statutory panel” has the meaning given in section 1RB(5).]

Textual Amendments

F27Sch. 1ZA para. 11(1)(ha) inserted (18.2.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 131(2), 148(2)

F30Word in Sch. 1ZA para. 11(1)(i) omitted (1.10.2018) by virtue of Financial Guidance and Claims Act 2018 (c. 10), s. 37(5), Sch. 3 para. 21(3)(b); S.I. 2018/1029, reg. 2(q) (with Sch. para. 2)

[F36Other reportsU.K.

11A(1)The Treasury may (subject to this paragraph) at any time by direction require the FCA to publish a report containing information about—U.K.

(a)any of the matters mentioned in paragraphs (a) to (ia) of paragraph 11(1);

(b)such other matters that the direction may specify.

(2)The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that—

(a)the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the FCA’s functions, and

(b)other available information is not sufficient to meet that purpose.

(3)Subject to sub-paragraph (4), the FCA must publish a report prepared under a direction given under this paragraph in such manner, and within such period, as the direction may require.

(4)Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest.

(5)A direction under this paragraph may not—

(a)require a report to be published more than once in each quarter;

(b)require the publication of information that is confidential information for the purposes of Part 23 (see section 348(2)).

(6)The Treasury must consult the FCA before giving a direction under this paragraph.

(7)In exercising the power under this paragraph, the Treasury must have regard to the desirability of minimising any adverse effect that the preparation of the report required in accordance with the direction may have on the exercise by the FCA of any of its other functions.

(8)The Treasury must—

(a)lay before Parliament a copy of a direction given under this paragraph, and

(b)publish the direction in such manner as the Treasury think fit.

(9)A direction under this paragraph may be varied or revoked by the giving of a further direction.]

Annual public meetingU.K.

12(1)Not later than 3 months after making a report under paragraph 11, the FCA must hold a public meeting (“the annual meeting”) for the purposes of enabling that report to be considered.U.K.

(2)The FCA must organise the annual meeting so as to allow—

(a)a general discussion of the contents of the report which is being considered, and

(b)a reasonable opportunity for those attending the meeting to put questions to the FCA about the way in which it discharged, or failed to discharge, its functions during the period to which the report relates.

(3)But otherwise the annual meeting is to be organised and conducted in such a way as the FCA considers appropriate.

(4)The FCA must give reasonable notice of its annual meeting.

(5)That notice must—

(a)give details of the time and place at which the meeting is to be held,

(b)set out the proposed agenda for the meeting,

(c)indicate the proposed duration of the meeting,

(d)give details of the FCA's arrangements for enabling persons to attend, and

(e)be published by the FCA in the way appearing to it to be best calculated to bring the notice to the attention of the public.

(6)If the FCA proposes to alter any of the arrangements which have been included in the notice given under sub-paragraph (5), it must—

(a)give reasonable notice of the alteration, and

(b)publish that notice in the way appearing to the FCA to be best calculated to bring it to the attention of the public.

Report of annual meetingU.K.

13U.K.Not later than one month after its annual meeting, the FCA must publish a report of the proceedings of the meeting.

Accounts and auditU.K.

14(1)The Treasury may—U.K.

(a)require the FCA to comply with any provisions of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or

(b)direct that any provision of that Act about accounts and their audit is to apply to the FCA with such modifications as are specified in the direction, whether or not the provision would otherwise apply to the FCA.

(2)Compliance with any requirement under sub-paragraph (1)(a) or (b) is enforceable by injunction or, in Scotland, an order for specific performance under section 45 of the Court of Session Act 1988.

(3)Proceedings under sub-paragraph (2) may be brought only by the Treasury.

15(1)The FCA must send a copy of its annual accounts to the Comptroller and Auditor General as soon as is reasonably practicable.U.K.

(2)The Comptroller and Auditor General must—

(a)examine, certify and report on accounts received under this paragraph, and

(b)send a copy of the certified accounts and the report to the Treasury.

(3)The Treasury must lay the copy of the certified accounts and the report before Parliament.

(4)Except as provided by paragraph 14(1), the FCA is exempt from the requirements of Part 16 of the Companies Act 2006 (audit), and its balance sheet must contain a statement to that effect.

(5)In this paragraph “annual accounts” has the meaning given in section 471 of the Companies Act 2006.

PART 2U.K.Status

Modifications etc. (not altering text)

StatusU.K.

16U.K.In relation to any of its functions—

(a)the FCA is not to be regarded as acting on behalf of the Crown, and

(b)its members, officers and staff are not to be regarded as Crown servants.

Exemption from requirement for use of “limited” in name of FCAU.K.

17U.K.The FCA is to continue to be exempt from the requirements of the Companies Act 2006 relating to the use of “limited” as part of its name.

18U.K.If the Secretary of State is satisfied that any action taken by the FCA makes it inappropriate for the exemption given by paragraph 17 to continue, the Secretary of State may, after consulting the Treasury, give a direction removing it.

PART 3U.K.Penalties and fees

Modifications etc. (not altering text)

C10Sch. 1ZA Pt. 3 modified (E.W.S.) (29.11.2018 for specified purposes, 1.4.2019 in so far as not already in force) by The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018 (S.I. 2018/1253), arts. 1(2)(3), 54(4)

PenaltiesU.K.

19U.K.In determining its policy with respect to the amounts of penalties to be imposed by it under this Act, the FCA must take no account of the expenses which it incurs, or expects to incur, in discharging its functions.

Modifications etc. (not altering text)

C12Sch. 1ZA para. 19 applied (with modifications) by S.I. 2008/346, reg. 37 (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 134(b))

C14Sch. 1ZA paras. 19-22 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 6

C15Sch. 1ZA paras. 19-23 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 25(1) (with reg. 7)

C16Sch. 1ZA paras. 19-23 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 40

C18Sch. 1ZA paras. 19-23 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 26

C19Sch. 1ZA paras. 19-23 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 11 (with Sch. 1 paras. 13, 14)

C20Sch. 1ZA paras. 19-22 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 28

C24Sch. 1ZA paras. 19-21 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 16 (with reg. 52(3), Sch. 3)

20(1)The FCA must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.U.K.

(2)The FCA's “penalty receipts” in respect of a financial year are any amounts received by it during the year by way of penalties imposed under this Act.

(3)The FCA's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—

(a)the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or

(b)the recovery of penalties imposed under this Act [F37or under a provision mentioned in sub-paragraph (4A)].

(4)For this purpose the FCA's enforcement powers are—

(a)its powers under any of the provisions mentioned in section 133(7A),

(b)its powers under section 56 (prohibition orders),

[F38(ba)its powers under section 143S (Part 9C prohibition orders),]

[F39(bb)its powers under section 309B (Part 18 prohibition orders),]

(c)its powers under Part 25 of this Act (injunctions and restitution),

[F40(ca)its powers under the relevant competition provisions (as applied by Part 16A of this Act),]

(d)its powers under any other enactment specified by the Treasury by order,

(e)its powers in relation to the investigation of relevant offences, and

(f)its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.

[F41(4A)The relevant competition provisions” are—

(a)section 31E of the Competition Act 1998 (enforcement of commitments);

(b)section 34 of that Act (enforcement of directions);

(c)section 36 of that Act (penalties);

(d)section 40A of that Act (penalties: failure to comply with requirements);

(e)section 174A of the Enterprise Act 2002 (penalties).]

(5)“Relevant offences” are—

(a)offences under [F42this Act],

(b)offences under subordinate legislation made under [F43this Act],

(c)offences falling within section 402(1) F44...,

[F45(ca)offences under Part 1 of the Competition Act 1998,

(cb)offences under Part 4 of the Enterprise Act 2002,]

(d)offences under Part 7 of the Financial Services Act 2012, and

(e)any other offences specified by the Treasury by order.

(6)The Treasury may give directions to the FCA as to how the FCA is to comply with its duty under sub-paragraph (1).

(7)The directions may in particular—

(a)specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in sub-paragraph (3),

(b)relate to the calculation and timing of the deduction in respect of the FCA's enforcement costs, and

(c)specify the time when any payment is required to be made to the Treasury.

(8)The directions may also require the FCA to provide the Treasury at specified times with specified information relating to—

(a)penalties that the FCA has imposed under this Act, or

(b)the FCA's enforcement costs.

(9)The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.

Textual Amendments

Modifications etc. (not altering text)

C14Sch. 1ZA paras. 19-22 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 6

C15Sch. 1ZA paras. 19-23 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 25(1) (with reg. 7)

C16Sch. 1ZA paras. 19-23 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 40

C18Sch. 1ZA paras. 19-23 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 26

C19Sch. 1ZA paras. 19-23 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 11 (with Sch. 1 paras. 13, 14)

C20Sch. 1ZA paras. 19-22 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 28

C24Sch. 1ZA paras. 19-21 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 16 (with reg. 52(3), Sch. 3)

C27Sch. 1ZA para. 20 applied (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), arts. 1(5), 23(4) (with Pt. 4)

21(1)The FCA must prepare and operate a scheme (“the financial penalty scheme”) for ensuring that the amounts that, as a result of the deduction for which paragraph 20(1) provides, are retained by the FCA in respect of amounts paid to it by way of penalties imposed under this Act are applied for the benefit of regulated persons.U.K.

(2)Regulated persons” means—

(a)authorised persons,

(b)recognised investment exchanges,

(c)issuers of securities admitted to the official list, F46... [F47and]

(d)issuers who have requested or approved the admission of financial instruments to trading on a regulated market, F48...

F48(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)The financial penalty scheme may, in particular, make different provision with respect to different classes of regulated person.

(4)The financial penalty scheme must ensure that those who have become liable to pay a penalty to the FCA in any financial year of the FCA do not receive any benefit under the scheme in the following financial year.

(5)Up-to-date details of the financial penalty scheme must be set out in a document (“the scheme details”).

Textual Amendments

F46Word in Sch. 1ZA para. 21(2)(c) omitted (3.3.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 15(a) (with s. 87)

F48Sch. 1ZA para. 21(2)(e) and word omitted (1.1.2019) by virtue of Financial Guidance and Claims Act 2018 (c. 10), s. 37(5), Sch. 3 para. 21(4)(b); S.I. 2018/1330, reg. 2(g)(vi)

Modifications etc. (not altering text)

C14Sch. 1ZA paras. 19-22 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 6

C15Sch. 1ZA paras. 19-23 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 25(1) (with reg. 7)

C16Sch. 1ZA paras. 19-23 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 40

C18Sch. 1ZA paras. 19-23 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 26

C19Sch. 1ZA paras. 19-23 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 11 (with Sch. 1 paras. 13, 14)

C20Sch. 1ZA paras. 19-22 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 28

C24Sch. 1ZA paras. 19-21 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 16 (with reg. 52(3), Sch. 3)

C29Sch. 1ZA para. 21 modified (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), arts. 1(5), 23(5) (with Pt. 4)

22(1)The scheme details must be published by the FCA in the way appearing to it to be best calculated to bring them to the attention of the public.U.K.

(2)Before making the financial penalty scheme, the FCA must publish a draft of the proposed scheme in the way appearing to the FCA to be best calculated to bring it to the attention of the public.

(3)The draft must be accompanied by notice that representations about the proposals may be made to the FCA within a specified time.

(4)Before making the scheme, the FCA must have regard to any representations made to it in accordance with sub-paragraph (3).

(5)If the FCA makes the proposed scheme, it must publish an account, in general terms, of—

(a)the representations made to it in accordance with sub-paragraph (3), and

(b)its response to them.

(6)If the scheme differs from the draft published under sub-paragraph (2) in a way which is, in the opinion of the FCA, significant, the FCA must (in addition to complying with sub-paragraph (5)) publish details of the difference.

(7)The FCA must, without delay, give the Treasury a copy of any scheme details published by it.

(8)The FCA may charge a reasonable fee for providing a person with a copy of—

(a)a draft published under sub-paragraph (2);

(b)scheme details.

(9)Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.

Modifications etc. (not altering text)

C14Sch. 1ZA paras. 19-22 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 6

C15Sch. 1ZA paras. 19-23 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 25(1) (with reg. 7)

C16Sch. 1ZA paras. 19-23 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 40

C18Sch. 1ZA paras. 19-23 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 26

C19Sch. 1ZA paras. 19-23 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 11 (with Sch. 1 paras. 13, 14)

C20Sch. 1ZA paras. 19-22 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 28

FeesU.K.

23(1)The FCA may make rules providing for the payment to it of such fees, in connection with the discharge of any of its qualifying functions, as it considers will (taking account of its expected income from fees and charges provided for by any other provision of this Act [F49other than sections [F50137SA,] [F51, 137SB] F52... [F53and 333T]]) enable it—U.K.

(a)to meet expenses incurred in carrying out its functions [F54, other than its excepted functions,] or for any incidental purpose,

(b)to repay the principal of, and pay any interest on, any relevant borrowing and to meet relevant commencement expenses, and

(c)to maintain adequate reserves.

(2)The “qualifying functions” of the FCA are—

(a)its functions under or as a result of this Act or any of the [F55other enactments mentioned in section 1A(6)(a) to (ca)] [F56and (e)] [F57but not its excepted functions], and

(b)its functions under or as a result of a [F58qualifying provision] that is specified, or of a description specified, for the purposes of this sub-paragraph by the Treasury by order.

[F59(2ZA)The “excepted functions” of the FCA are—

F60(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)its functions under [F61section 333T] so far as relating to the collection of payments. [F62, and

(c)its functions under [F63sections 137SA and 137SB].]]

[F64(2A)The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.]

(3)In sub-paragraph (1)(b)—

  • relevant borrowing” means any money borrowed by the FCA which has been used for the purpose of meeting expenses incurred in relation to its assumption of functions under this Act, and

  • relevant commencement expenses” means expenses incurred by the FCA—

    (a)

    in preparation for the exercise of functions by the FCA under this Act, or

    (b)

    for the purpose of facilitating the exercise by the FCA of those functions or otherwise in connection with their exercise by it.

(4)Neither section 1A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

(5)For the purposes of sub-paragraph (3) it is irrelevant when the borrowing of the money, the incurring of the expenses or the assumption of functions took place (and, in particular, it is irrelevant if any of those things were done at a time when the FCA was known as the Financial Services Authority).

(6)In the case of rules made under Part 6 of this Act, the rules may, in particular, require the payment of fees in respect of—

(a)the continued inclusion of securities or persons in any list or register required to be kept by the FCA as a result of any provision made by or under that Part,

(b)access to any list or register within paragraph (a), and

(c)the continued admission of financial instruments to trading on a regulated market.

(7)In fixing the amount of any fee which is to be payable to the FCA, no account is to be taken of any sums which the FCA receives, or expects to receive, by way of penalties imposed by it under this Act.

(8)Any fee which is owed to the FCA under any provision made by or under this Act may be recovered as a debt due to the FCA.

Textual Amendments

F49Words in Sch. 1ZA para. 23(1) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 16(a) (with s. 87)

F54Words in Sch. 1ZA para. 23(1)(a) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 16(b) (with s. 87)

F57Words in Sch. 1ZA para. 23(2)(a) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 16(c) (with s. 87)

F59Sch. 1ZA para. 23(2ZA) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 16(d) (with s. 87)

F62Sch. 1ZA para. 23(2ZA)(c) and word inserted (10.5.2018) by Financial Guidance and Claims Act 2018 (c. 10), s. 37(1)(e)(iv), Sch. 3 para. 21(5)(b)(iii)

F63Words in Sch. 1ZA para. 23(2ZA)(c) substituted (1.10.2018) by Financial Guidance and Claims Act 2018 (c. 10), s. 37(5), Sch. 3 para. 21(5)(b)(iv); S.I. 2018/1029, reg. 2(q)

Modifications etc. (not altering text)

C15Sch. 1ZA paras. 19-23 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 25(1) (with reg. 7)

C16Sch. 1ZA paras. 19-23 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 40

C18Sch. 1ZA paras. 19-23 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 26

C19Sch. 1ZA paras. 19-23 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 11 (with Sch. 1 paras. 13, 14)

C31Sch. 1ZA para. 23 extended (with modifications) by S.I. 2012/3122, reg. 14 (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 248(3)

C33Sch. 1ZA para. 23 applied (with modifications) by S.I. 2008/346, Sch. para. 5 (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 134(g)(iii))

C34Sch. 1ZA para. 23 extended (with modifications) by S.I. 2011/99, reg. 59(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 196(3)

C35Sch. 1ZA para. 23 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 7

C36Sch. 1ZA para. 23 modified (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), arts. 1(5), 25(a) (with Pt. 4)

C39Sch. 1ZA para. 23 modified (18.9.2016) by The Payment Accounts Regulations 2015 (S.I. 2015/2038), regs. 1(2)(b), 39

C40Sch. 1ZA para. 23 modified (13.8.2017) by The Payment Services Regulations 2017 (S.I. 2017/752), regs. 1(2)(a), 118(1) (with reg. 3)

C41Sch. 1ZA para. 23 modified (10.5.2018) by Financial Guidance and Claims Act 2018 (c. 10), s. 37(1)(f), Sch. 5 para. 13

C43Sch. 1ZA para. 23 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 28

C44Sch. 1ZA para. 23(6) applied by 2009 c. 1, s. 39B(2) (as inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 39)

C45Sch. 1ZA para. 23(6) applied by 2009 c. 1, s. 48L(6A) (as inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 53(6))

Services for which fees may not be chargedU.K.

24U.K.The power conferred by paragraph 23 may not be used to require—

F65(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)a fee to be paid by any person whose application for approval under section 59 has been granted.

[F66(c)a fee to be paid by any person whose application under section 309I for approval under section 309G has been granted.]

PART 4U.K.Miscellaneous

Modifications etc. (not altering text)

Exemption from liability in damagesU.K.

25(1)None of the following is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of the FCA's functions—U.K.

(a)the FCA;

(b)any person (“P”) who is, or is acting as, a member, officer or member of staff of the FCA;

(c)any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.

[F67(1A)In sub-paragraph (1) the reference to the FCA's functions includes its functions under

[F68(a)] Part 5 of the Financial Services (Banking Reform) Act 2013 (regulation of payment systems),

[F69(b)Part 3 of the Finance Act 2022 (economic crime (anti-money laundering) levy).]]

(2)Anything done or omitted by a person mentioned in sub-paragraph (1)(a) or (b) while acting, or purporting to act, as a result of an appointment under any of sections 166 to 169 is to be taken for the purposes of sub-paragraph (1) to have been done or omitted in the discharge, or as the case may be purported discharge, of the FCA's functions.

(3)Sub-paragraph (1) does not apply—

(a)if the act or omission is shown to have been in bad faith, or

(b)so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.

Textual Amendments

F68Words in Sch. 1ZA para. 25(1A) renumbered as Sch. 1ZA para. 25(1A)(a) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2023 (S.I. 2023/369), regs. 1(2), 13(a)

Modifications etc. (not altering text)

C53Sch. 1ZA para. 25 applied (with modifications) (12.12.2014) by The Immigration Act 2014 (Bank Accounts) Regulations 2014 (S.I. 2014/3085), regs. 1, 8

C54Sch. 1ZA para. 25 modified (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), arts. 1(5), 25(b) (with Pt. 4)

C56Sch. 1ZA para. 25 modified (18.9.2016) by The Payment Accounts Regulations 2015 (S.I. 2015/2038), regs. 1(2)(b), 41

C57Sch. 1ZA para. 25 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 25 (with reg. 7)

C58Sch. 1ZA para. 25 applied (with modifications) (3.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(a)(b), 40

C59Sch. 1ZA para. 25 modified (13.8.2017) by The Payment Services Regulations 2017 (S.I. 2017/752), regs. 1(2)(a), 121 (with reg. 3)

C61Sch. 1ZA para. 25 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 26

Accredited financial investigatorsU.K.

26U.K.For the purposes of this Act anything done by an accredited financial investigator within the meaning of the Proceeds of Crime Act 2002 who—

(a)is, or is acting as, an officer of, or member of the staff of, the FCA, or

(b)is appointed by the FCA under section 97, 167 or 168 to conduct an investigation,

is to be treated as done in the exercise or discharge of a function of the FCA.

Amounts required by rules to be paid to the FCAU.K.

27U.K.Any amount (other than a fee) which is required by rules to be paid to the FCA may be recovered as a debt due to the FCA.

[F70Engagement with Parliamentary CommitteesU.K.

28(1)This paragraph applies where the FCA issues a relevant consultation.U.K.

(2)For the purposes of this paragraph the FCA issues a relevant consultation if it—

(a)publishes a draft of proposed rules under section 138I,

(b)publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or

(c)publishes other proposals about the exercise of any of its general functions.

(3)The FCA must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued.

(4)The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—

(a)advance the FCA’s operational objectives,

(b)are compatible with the FCA’s strategic objective,

(c)demonstrate that the FCA has had regard to the regulatory principles in section 3B when preparing the proposals, and

(d)engage with matters to which the FCA must have regard under regulations made under section 138EA.

(5)The reference in sub-paragraph (4)(a) to the FCA’s operational objectives includes, in its application as a secondary objective, the competitiveness and growth objective (see section 1EB).

(6)The notification must also specify any other part of the consultation which the FCA considers should be drawn to the attention of the relevant Parliamentary Committees.

(7)References in this paragraph to the relevant Parliamentary Committees are references to—

(a)the Treasury Committee of the House of Commons,

(b)the Committee of the House of Lords which—

(i)is charged with responsibility by that House for the purposes of this paragraph, and

(ii)has notified the FCA that it is a relevant Parliamentary Committee for those purposes, and

(c)the Joint Committee of both Houses which—

(i)is charged with responsibility by those Houses for the purposes of this paragraph, and

(ii)has notified the FCA that it is a relevant Parliamentary Committee for those purposes.

(8)References in this paragraph to the Treasury Committee of the House of Commons—

(a)if the name of that Committee is changed, are references to that Committee by its new name, and

(b)if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.

(9)Any question arising under sub-paragraph (8) is to be determined by the Speaker of the House of Commons.

29(1)This paragraph applies where—U.K.

(a)the FCA issues a public consultation, and

(b)a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the FCA representations in response to the consultation.

(2)For the purposes of this paragraph, the FCA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(3)The FCA must give to the chair of the Committee concerned a written response to the representations.

(4)The duty to respond imposed by sub-paragraph (3) applies only so far as the FCA would not be under a corresponding duty to do so imposed by another enactment.

(5)The FCA is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the FCA be against the public interest.]

Section [F712AB]

SCHEDULE 1ZBU.K.The Prudential Regulation Authority

Textual Amendments

PART 1U.K.General

InterpretationU.K.

1U.K.In this Schedule—

  • F72...

  • functions”, in relation to the PRA, means functions conferred on the PRA by or under any provision of this Act (see section [F732AB(3)] which affects the meaning of references to such functions).

ConstitutionU.K.

F742U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F743U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F744U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F745U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Appointed members of governing bodyU.K.

F746U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F747U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F748U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F749U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7410U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7411U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7412U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7413U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7414U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Terms of serviceU.K.

F7415U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Arrangements for discharging functionsU.K.

F7416U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

RecordsU.K.

17U.K.The PRA must maintain satisfactory arrangements for—

(a)recording decisions made in the exercise of its functions, and

(b)the safe-keeping of those records which it considers ought to be preserved.

BudgetU.K.

F7518U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual reportU.K.

19(1)At least once a year the PRA must make a report to the [F76Chancellor of the Exchequer] on—U.K.

(a)the discharge of its functions,

(b)the extent to which, in its opinion, its objectives have been advanced,

[F77(ba)how it has complied with section 2H(1),]

[F78(bb)how it has complied with the statement of policy on panel appointments prepared under section 2NA in relation to the process for making appointments and the matters considered in determining who is appointed,]

(c)its consideration of the principles in section 3B F79...,

(d)how it has complied with section 3D,

(e)any direction given under section 3I or 3J during the period to which the report relates,

[F80(ea)how it has satisfied the requirement in section 138EA(2) so far as regarding disclosure requirements in connection with matters relating to sustainability],

(f)how it has complied with section 354B(1) so far as relating to co-operation with persons outside the United Kingdom, F81...

[F82(fa)any engagement with the statutory panels of the FCA, the PRA or the Payment Systems Regulator,]

[F83(fb)how it has satisfied the requirement in section 416B to have regard to any SDR policy statement of the Treasury under section 416A (sustainability disclosure requirements: policy statement), and]

(g)such other matters as the Treasury may from time to time direct.

[F84(1A)In the report the PRA must also report in general terms on—

(a)the extent to which, in its opinion, ring-fenced bodies have complied with the ring-fencing provisions,

(b)steps taken by ring-fenced bodies in order to comply with the ring-fencing provisions,

(c)steps taken by it to enforce the ring-fencing provisions,

(d)the extent to which ring-fenced bodies are carrying on the regulated activity of dealing in investments as principal (whether in the United Kingdom or elsewhere) in circumstances where as a result of an order under section 142D(2) that activity is not an excluded activity,

(e)the extent to which ring-fenced bodies are carrying on activities that would be excluded activities by virtue of an order under section 142D(4) but for an exemption or exclusion made by such an order,

(f)the extent to which ring-fenced bodies are doing things that they would be prohibited from doing by an order under section 142E but for an exemption made by such an order, and

(g)the extent to which ring-fenced bodies appear to it to have acted in accordance with any guidance which it has given to ring-fenced bodies and which relates to the operation of the ring-fencing provisions.

(1B)In sub-paragraph (1A)—

(a)references to “ring-fenced bodies” relate only to ring-fenced bodies that are PRA-authorised persons, and

(b)the ring-fencing provisions” means ring-fencing rules and the duty imposed as a result of section 142G.]

(2)[F85Sub-paragraphs (1) and (1A) do not] require the inclusion in the report of any information whose publication would in the opinion of the PRA be against the public interest.

(3)The report must be accompanied by—

F86(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)such other reports or information, prepared by such persons, as the Treasury may from time to time direct.

(4)The [F87Chancellor of the Exchequer] must lay before Parliament a copy of each report received by [F88the Chancellor] under this paragraph.

[F89(5)The Chancellor may comply with sub-paragraph (4) by laying a document containing a report under this paragraph together with a report under section 4 of the Bank of England Act 1998.]

[F90(6)In this paragraph “statutory panel” has the meaning given in section 1RB(5).]

Textual Amendments

Modifications etc. (not altering text)

Consultation about annual reportU.K.

20(1)In relation to each report made under paragraph 19, the PRA must publish at the same time as the report an invitation to members of the public to make representations to the PRA, within the 3 months beginning with the date of publication—U.K.

(a)about the report,

(b)about the way in which the PRA has discharged, or failed to discharge, its functions during the period to which the report relates, and

(c)about the extent to which, in their opinion, the PRA's objectives have been advanced [F91[F92including its secondary objectives under] section 2H and has considered the regulatory principles in section 3B] .

(2)The invitation must be published in the way appearing to it to be best calculated to bring the invitation to the attention of the public.

Report on consultationU.K.

21(1)The PRA must publish a report about its consultation in accordance with paragraph 20.U.K.

(2)The report must contain an account, in general terms, of any representations received in pursuance of the invitation published under that paragraph.

(3)The report must be published not later than 4 months after the date on which the report under paragraph 19 was published.

[F93Other reportsU.K.

21A(1)The Treasury may (subject to this paragraph) at any time by direction require the PRA to publish a report containing information about—U.K.

(a)any of the matters mentioned in paragraphs (a) to (f) of paragraph 19(1);

(b)such other matters that the direction may specify.

(2)The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that—

(a)the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the PRA’s functions, and

(b)other available information is not sufficient to meet that purpose.

(3)Subject to sub-paragraph (4), the PRA must publish a report prepared under a direction given under this paragraph in such manner, and within such period, as the direction may require.

(4)Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest.

(5)A direction under this paragraph may not—

(a)require a report to be published more than once in each quarter;

(b)require the publication of information that is confidential information for the purposes of Part 23 (see section 348(2)).

(6)The Treasury must consult the PRA before giving a direction under this paragraph.

(7)In exercising the power under this paragraph, the Treasury must have regard to the desirability of minimising any adverse effect that the preparation of the report required in accordance with the direction may have on the exercise by the PRA of any of its other functions.

(8)The Treasury must—

(a)lay before Parliament a copy of a direction given under this paragraph, and

(b)publish the direction in such manner as the Treasury think fit.

(9)A direction under this paragraph may be varied or revoked by the giving of a further direction.]

Accounts and auditU.K.

F9422U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9423U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

PART 2U.K.Status

StatusU.K.

F9424U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Exemption from requirement for use of “limited” in name of PRAU.K.

F9425U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9426U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

PART 3U.K.Penalties and fees

PenaltiesU.K.

27U.K.In determining its policy with respect to the amounts of penalties to be imposed by it under this Act, the PRA must take no account of the expenses which it incurs, or expects to incur, in discharging its functions.

Modifications etc. (not altering text)

C68Sch. 1ZB paras. 27-31 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 26 (with reg. 7)

C69Sch. 1ZB paras. 27-31 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 12 (with Sch. 1 paras. 13, 14)

C70Sch. 1ZB paras. 27-30 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 17 (with reg. 52(3), Sch. 3)

28(1)The PRA must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.U.K.

(2)The PRA's “penalty receipts” in respect of a financial year are any amounts received by it during the year by way of penalties imposed under this Act.

(3)The PRA's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—

(a)the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or

(b)the recovery of penalties imposed under this Act.

(4)For this purpose the PRA's enforcement powers are—

(a)its powers under any of the provisions mentioned in section 133(7A),

(b)its powers under section 56 (prohibition orders),

(c)its powers under Part 25 of this Act (injunctions and restitution),

(d)its powers under any other enactment specified by the Treasury by order,

(e)its powers in relation to the investigation of relevant offences, and

(f)its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.

(5)“Relevant offences” are—

(a)offences under FSMA 2000,

(b)offences under subordinate legislation made under that Act, and

(c)any other offences specified by the Treasury by order.

(6)The Treasury may give directions to the PRA as to how the PRA is to comply with its duty under sub-paragraph (1).

(7)The directions may in particular—

(a)specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in sub-paragraph (3),

(b)relate to the calculation and timing of the deduction in respect of the PRA's enforcement costs, and

(c)specify the time when any payment is required to be made to the Treasury.

(8)The directions may also require the PRA to provide the Treasury at specified times with information relating to—

(a)penalties that the PRA has imposed under FSMA 2000, or

(b)the PRA's enforcement costs.

(9)The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.

Modifications etc. (not altering text)

C68Sch. 1ZB paras. 27-31 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 26 (with reg. 7)

C69Sch. 1ZB paras. 27-31 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 12 (with Sch. 1 paras. 13, 14)

C70Sch. 1ZB paras. 27-30 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 17 (with reg. 52(3), Sch. 3)

29(1)The PRA must prepare and operate a scheme (“the financial penalty scheme”) for ensuring that the amounts that, as a result of the deduction for which paragraph 28(1) provides, are retained by the PRA in respect of amounts paid to it by way of penalties imposed under this Act are applied for the benefit of PRA-authorised persons.U.K.

(2)The financial penalty scheme may, in particular, make different provision with respect to different classes of PRA-authorised person.

(3)The financial penalty scheme must ensure that those who have become liable to pay a penalty to the PRA in any financial year of the PRA do not receive any benefit under the scheme in the following financial year.

(4)Up-to-date details of the financial penalty scheme must be set out in a document (“the scheme details”).

Modifications etc. (not altering text)

C68Sch. 1ZB paras. 27-31 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 26 (with reg. 7)

C69Sch. 1ZB paras. 27-31 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 12 (with Sch. 1 paras. 13, 14)

C70Sch. 1ZB paras. 27-30 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 17 (with reg. 52(3), Sch. 3)

30(1)The scheme details must be published by the PRA in the way appearing to it to be best calculated to bring them to the attention of the public.U.K.

(2)Before making the financial penalty scheme, the PRA must publish a draft of the proposed scheme in the way appearing to the PRA to be best calculated to bring it to the attention of the public.

(3)The draft must be accompanied by notice that representations about the proposals may be made to the PRA within a specified time.

(4)Before making the scheme, the PRA must have regard to any representations made to it in accordance with sub-paragraph (3).

(5)If the PRA makes the proposed scheme, it must publish an account, in general terms, of—

(a)the representations made to it in accordance with sub-paragraph (3), and

(b)its response to them.

(6)If the scheme differs from the draft published under sub-paragraph (2) in a way which is, in the opinion of the PRA, significant, the PRA must (in addition to complying with sub-paragraph (5)) publish details of the difference.

(7)The PRA must, without delay, give the Treasury a copy of any scheme details published by it.

(8)The PRA may charge a reasonable fee for providing a person with a copy of—

(a)a draft published under sub-paragraph (2);

(b)scheme details.

(9)Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.

Modifications etc. (not altering text)

C68Sch. 1ZB paras. 27-31 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 26 (with reg. 7)

C69Sch. 1ZB paras. 27-31 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 12 (with Sch. 1 paras. 13, 14)

C70Sch. 1ZB paras. 27-30 applied (with modifications) (30.1.2024 for specified purposes) by The Securitisation Regulations 2024 (S.I. 2024/102), reg. 2(1)(e)(2), Sch. 1 para. 17 (with reg. 52(3), Sch. 3)

FeesU.K.

31(1)The PRA may make rules providing for the payment to it of such fees, in connection with the discharge of any of its qualifying functions, as it considers will (taking account of its expected income from fees and charges provided for by any other provision of this Act) enable it—U.K.

(a)to meet expenses incurred in carrying out its functions or for any incidental purpose,

(b)to repay the principal of, and pay any interest on, any relevant borrowing and to meet relevant commencement expenses, and

(c)to maintain adequate reserves.

(2)The “qualifying functions” of the PRA are—

(a)its functions under or as a result of this Act or any of the [F95other enactments] mentioned in section [F962AB(3)], and

(b)its functions under or as a result of a [F97qualifying provision] that is specified, or of a description specified, for the purposes of this sub-paragraph by the Treasury by order.

(3)In sub-paragraph (1)(b)—

  • relevant borrowing” means any money borrowed by the PRA which has been used for the purpose of meeting expenses incurred in relation to its assumption of functions under this Act, and

  • relevant commencement expenses” means expenses incurred by the PRA, the FCA or the Bank—

    (a)

    in preparation for the exercise of functions by the PRA under this Act, or

    (b)

    for the purpose of facilitating the exercise by the PRA of those functions or otherwise in connection with their exercise by it.

(4)Neither section [F982AB(3)(d)] nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

(5)For the purposes of sub-paragraph (3) it is irrelevant when the borrowing of the money, the incurring of the expenses or the assumption of functions took place (and, in particular, it is irrelevant if expenses were incurred by the FCA at a time when it was known as the Financial Services Authority).

(6)In fixing the amount of any fee which is to be payable to the PRA, no account is to be taken of any sums which the PRA receives, or expects to receive, by way of penalties imposed by it under this Act.

(7)Any fee which is owed to the PRA under any provision made by or under this Act may be recovered as a debt due to the PRA.

Textual Amendments

Modifications etc. (not altering text)

C68Sch. 1ZB paras. 27-31 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 26 (with reg. 7)

C69Sch. 1ZB paras. 27-31 applied (with modifications) (1.1.2019) by The Securitisation Regulations 2018 (S.I. 2018/1288), reg. 1, Sch. 1 para. 12 (with Sch. 1 paras. 13, 14)

Services for which fees may not be chargedU.K.

32U.K.The power conferred by paragraph 31 may not be used to require—

F99(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)a fee to be paid by any person whose application for approval under section 59 has been granted.

PART 4U.K.Miscellaneous

Exemption from liability in damagesU.K.

33(1)None of the following is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of the PRA's functions—U.K.

(a)the PRA;

(b)any person (“P”) who is, or is acting as, a member, officer or member of staff of the PRA;

(c)any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.

[F100(1A)In sub-paragraph (1) the reference to the PRA's functions includes its functions under Part 5 of the Financial Services (Banking Reform) Act 2013 (regulation of payment systems).]

(2)Anything done or omitted by a person mentioned in sub-paragraph (1)(a) or (b) while acting, or purporting to act, as a result of an appointment under any of sections 97, 166 to 169 [F101, 284 and 377G] is to be taken for the purposes of sub-paragraph (1) to have been done or omitted in the discharge, or as the case may be purported discharge, of the PRA's functions.

(3)Sub-paragraph (1) does not apply—

(a)if the act or omission is shown to have been in bad faith, or

(b)so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.

Textual Amendments

F101Words in Sch. 1ZB para. 33(2) substituted (29.8.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(2)(e), Sch. 12 para. 11

Modifications etc. (not altering text)

C71Sch. 1ZB para. 33 applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 1 para. 26 (with reg. 7)

Accredited financial investigatorsU.K.

34U.K.For the purposes of this Act anything done by an accredited financial investigator within the meaning of the Proceeds of Crime Act 2002 who—

(a)is, or is acting as, an officer of, or member of the staff of, the PRA, or

(b)is appointed by the PRA under section 167 or 168 to conduct an investigation,

is to be treated as done in the exercise or discharge of a function of the PRA.

Amounts required by rules to be paid to the PRAU.K.

35U.K.Any amount (other than a fee) which is required by rules to be paid to the PRA may be recovered as a debt due to the PRA.]

[F102Engagement with Parliamentary CommitteesU.K.

36(1)This paragraph applies where the PRA issues a relevant consultation.U.K.

(2)For the purposes of this paragraph the PRA issues a relevant consultation if it—

(a)publishes a draft of proposed rules under section 138J,

(b)publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or

(c)publishes other proposals about the exercise of any of its general functions.

(3)The PRA must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued.

(4)The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—

(a)advance the PRA’s objectives,

(b)demonstrate that the PRA has had regard to the regulatory principles in section 3B when preparing the proposals, and

(c)engage with matters to which the PRA must have regard under regulations made under section 138EA.

(5)The reference in sub-paragraph (4)(a) to the PRA’s objectives includes, in their application as secondary objectives, the competition objective and the competitiveness and growth objective (see section 2H).

(6)The notification must also specify any other part of the consultation which the PRA considers should be drawn to the attention of the relevant Parliamentary Committees.

(7)References in this paragraph to the relevant Parliamentary Committees are references to—

(a)the Treasury Committee of the House of Commons,

(b)the Committee of the House of Lords which—

(i)is charged with responsibility by that House for the purposes of this paragraph, and

(ii)has notified the PRA that it is a relevant Parliamentary Committee for those purposes, and

(c)the Joint Committee of both Houses which—

(i)is charged with responsibility by those Houses for the purposes of this paragraph, and

(ii)has notified the PRA that it is a relevant Parliamentary Committee for those purposes.

(8)References in this paragraph to the Treasury Committee of the House of Commons—

(a)if the name of that Committee is changed, are references to that Committee by its new name, and

(b)if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.

(9)Any question arising under sub-paragraph (8) is to be determined by the Speaker of the House of Commons.

37(1)This paragraph applies where—U.K.

(a)the PRA issues a public consultation, and

(b)a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the PRA representations in response to the consultation.

(2)For the purposes of this paragraph, the PRA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing the proposals to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(3)The PRA must give to the chair of the Committee concerned a written response to the representations.

(4)The duty to respond imposed by sub-paragraph (3) applies only so far as the PRA would not be under a corresponding duty to do so imposed by another enactment.

(5)The PRA is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the PRA be against the public interest.]

Section 3S

F103SCHEDULE 1AU.K.Further provision about the consumer financial education body

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Section 22(2).

SCHEDULE 2U.K. Regulated Activities

Modifications etc. (not altering text)

C73Sch. 2 applied by 1974 c. 39, s. 16(6E)(c) (as inserted (1.9.2002) by S.I. 2001/544, arts. 2(1)(2)(b), 90(2); S.I. 2001/3538, art. 2(1))

C74Sch. 2 applied by S.I. 2008/570, Sch. para. 11(2) (as substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 35)

C75Sch. 2 applied by S.I. 2012/2079 reg. 2(1A) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 44(a)(ii))

C76Sch. 2 applied by S.I. 2001/497, reg. 113(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 23(b))

C77Sch. 2 applied by S.S.I. 2011/141, Sch. 4 para. 1(2) (as substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 43(a))

C78Sch. 2 applied by S.I. 2001/341, reg. 114(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 22(b))

C79Sch. 2 applied by S.I. 2004/400, reg. 5(7) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 25(b))

C80Sch. 2 applied by S.I. 2008/1741, reg. 112(5) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 37(b))

C81Sch. 2 applied by S.I. 2007/2157, reg. 23(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 31(5)(b))

C82Sch. 2 applied by 2003 c. 1, s. 554O(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 9(c))

C83Sch. 2 applied by S.I. 2013/380, Sch. 6 para. 11(9) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 45(b))

C84Sch. 2 applied by S.I. 2008/700, Sch. para. 12(2) (as substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 36)

C85Sch. 2 applied by 2007 c. 3, s. 564B(1A) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 12(b))

C86Sch. 2 applied by 2009 c. 4, s. 502(1A) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 16(b))

Part IU.K.[F104Regulated activities: general]

Textual Amendments

GeneralU.K.

1U.K.The matters with respect to which provision may be made under section 22(1) in respect of activities include, in particular, those described in general terms in this Part of this Schedule.

Dealing in investmentsU.K.

2(1)Buying, selling, subscribing for or underwriting investments or offering or agreeing to do so, either as a principal or as an agent.U.K.

(2)In the case of an investment which is a contract of insurance, that includes carrying out the contract.

Arranging deals in investmentsU.K.

3U.K.Making, or offering or agreeing to make—

(a)arrangements with a view to another person buying, selling, subscribing for or underwriting a particular investment;

(b)arrangements with a view to a person who participates in the arrangements buying, selling, subscribing for or underwriting investments.

Deposit takingU.K.

4U.K.Accepting deposits.

Safekeeping and administration of assetsU.K.

5(1)Safeguarding and administering assets belonging to another which consist of or include investments or offering or agreeing to do so.U.K.

(2)Arranging for the safeguarding and administration of assets belonging to another, or offering or agreeing to do so.

Managing investmentsU.K.

6U.K.Managing, or offering or agreeing to manage, assets belonging to another person where—

(a)the assets consist of or include investments; or

(b)the arrangements for their management are such that the assets may consist of or include investments at the discretion of the person managing or offering or agreeing to manage them.

Investment adviceU.K.

7U.K.Giving or offering or agreeing to give advice to persons on—

(a)buying, selling, subscribing for or underwriting an investment; or

(b)exercising any right conferred by an investment to acquire, dispose of, underwrite or convert an investment.

Establishing collective investment schemesU.K.

8U.K.Establishing, operating or winding up a collective investment scheme, including acting as—

(a)trustee of a unit trust scheme;

(b)depositary of a collective investment scheme other than a unit trust scheme; or

(c)sole director of a body incorporated by virtue of regulations under section 262.

Using computer-based systems for giving investment instructionsU.K.

9(1)Sending on behalf of another person instructions relating to an investment by means of a computer-based system which enables investments to be transferred without a written instrument.U.K.

(2)Offering or agreeing to send such instructions by such means on behalf of another person.

(3)Causing such instructions to be sent by such means on behalf of another person.

(4)Offering or agreeing to cause such instructions to be sent by such means on behalf of another person.

[F105Part 1AU.K.Regulated activities: reclaim funds

Activities of reclaim fundsU.K.

9A(1)The matters with respect to which provision may be made under section 22(1) in respect of activities include, in particular, any of the activities of a reclaim fund.

(2)Reclaim fund” has the meaning given by section 5(1) of the Dormant Bank and Building Society Accounts Act 2008.]

Part IIU.K. Investments

GeneralU.K.

10U.K.The matters with respect to which provision may be made under section 22(1) in respect of investments include, in particular, those described in general terms in this Part of this Schedule.

SecuritiesU.K.

11(1)Shares or stock in the share capital of a company.U.K.

(2)Company” includes—

(a)any body corporate (wherever incorporated), and

(b)any unincorporated body constituted under the law of a country or territory outside the United Kingdom,

other than an open-ended investment company.

Instruments creating or acknowledging indebtednessU.K.

12U.K.Any of the following—

(a)debentures;

(b)debenture stock;

(c)loan stock;

(d)bonds;

(e)certificates of deposit;

(f)any other instruments creating or acknowledging a present or future indebtedness.

Modifications etc. (not altering text)

Government and public securitiesU.K.

13(1)Loan stock, bonds and other instruments—U.K.

(a)creating or acknowledging indebtedness; and

(b)issued by or on behalf of a government, local authority or public authority.

(2)Government, local authority or public authority” means—

(a)the government of the United Kingdom, of Northern Ireland, or of any country or territory outside the United Kingdom;

(b)a local authority in the United Kingdom or elsewhere;

(c)any international organisation the members of which include the United Kingdom F106....

Instruments giving entitlement to investmentsU.K.

14(1)Warrants or other instruments entitling the holder to subscribe for any investment.U.K.

(2)It is immaterial whether the investment is in existence or identifiable.

Certificates representing securitiesU.K.

15U.K.Certificates or other instruments which confer contractual or property rights—

(a)in respect of any investment held by someone other than the person on whom the rights are conferred by the certificate or other instrument; and

(b)the transfer of which may be effected without requiring the consent of that person.

Units in collective investment schemesU.K.

16(1)Shares in or securities of an open-ended investment company.U.K.

(2)Any right to participate in a collective investment scheme.

OptionsU.K.

17U.K.Options to acquire or dispose of property.

FuturesU.K.

18U.K.Rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date.

Contracts for differencesU.K.

19U.K.Rights under—

(a)a contract for differences; or

(b)any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in—

(i)the value or price of property of any description; or

(ii)an index or other factor designated for that purpose in the contract.

Contracts of insuranceU.K.

20U.K.Rights under a contract of insurance, including rights under contracts falling within head C of Schedule 2 to the M1Friendly Societies Act 1992.

Marginal Citations

Participation in Lloyd’s syndicatesU.K.

21(1)The underwriting capacity of a Lloyd’s syndicate.U.K.

(2)A person’s membership (or prospective membership) of a Lloyd’s syndicate.

DepositsU.K.

22U.K.Rights under any contract under which a sum of money (whether or not denominated in a currency) is paid on terms under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it.

[F107Loans and other forms of credit]U.K.

Textual Amendments

F107Sch. 2 para. 23 and crossheading substituted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 7(3), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1

[F10723(1)Rights under any contract under which one person provides another with credit.U.K.

(2)Credit” includes any cash loan or other financial accommodation.

(3)Cash” includes money in any form.

(4)It is immaterial for the purposes of sub-paragraph (1) whether or not the obligation of the borrower is secured on property of any kind.]

[F108Other finance arrangements involving landU.K.

Textual Amendments

23A(1)Rights under any arrangement for the provision of finance under which the person providing the finance either—U.K.

(a)acquires a major interest in land from the person to whom the finance is provided, or

(b)disposes of a major interest in land to that person,

as part of the arrangement.

(2)References in sub-paragraph (1) to a “major interest” in land are to—

(a)in relation to land in England or Wales—

(i)an estate in fee simple absolute, or

(ii)a term of years absolute,

whether subsisting at law or in equity;

(b)in relation to land in Scotland—

(i)the interest of an owner of land, or

(ii)the tenant's right over or interest in a property subject to a lease;

(c)in relation to land in Northern Ireland—

(i)any freehold estate, or

(ii)any leasehold estate,

whether subsisting at law or in equity.

(3)It is immaterial for the purposes of sub-paragraph (1) whether either party acquires or (as the case may be) disposes of the interest in land—

(a)directly, or

(b)indirectly.]

[F109Contracts for hire of goodsU.K.

Textual Amendments

F109 Sch. 2 para. 23B and crossheading inserted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 7(4), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1

23B(1)Rights under a contract for the bailment or (in Scotland) hiring of goods to a person other than a body corporate.U.K.

(2)Goods” has the meaning given in section 61(1) of the Sale of Goods Act 1979.

(3)It is immaterial for the purposes of sub-paragraph (1) whether the rights of the person to whom the goods are bailed or hired have been assigned to a body corporate.]

Rights in investmentsU.K.

24U.K.Any right or interest in anything which is an investment as a result of any other provision made under section 22(1).

[F110PART 2AU.K.Regulated activities relating to information about persons' financial standing

Textual Amendments

GeneralU.K.

24AThe matters with respect to which provision may be made under section 22(1A)(a) include, in particular, those described in general terms in this Part of this Schedule.

Providing credit reference servicesU.K.

24BFurnishing persons with information that—

(a)is relevant to the financial standing of persons other than bodies corporate, and

(b)is collected for that purpose by the person furnishing it.

Providing credit information servicesU.K.

24C(1)Taking steps on behalf of a person other than a body corporate in connection with information relevant to that person's financial standing that is or may be held by a [F111person who is carrying on a regulated activity].

F112(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F111Words in Sch. 2 para. 24C(1) substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(17)(a)

F112Sch. 2 para. 24C(2) omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 10(17)(b)

24DGiving advice to a person other than a body corporate in relation to the taking of any steps of the kind mentioned in paragraph 24C(1).]

F113PART 2BU.K.Regulated activities relating to the setting of benchmarks

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IIIU.K. Supplemental Provisions

The order-making powerU.K.

25(1)An order under section 22(1) [F114[F115or (1A)]] [F114to (1B)] may—U.K.

(a)provide for exemptions;

(b)confer powers on the Treasury or [F116either regulator];

(c)authorise the making of regulations or other instruments by the Treasury for purposes of, or connected with, any relevant provision;

(d)authorise the making of rules or other instruments by [F116either regulator] for purposes of, or connected with, any relevant provision;

(e)make provision in respect of any information or document which, in the opinion of the Treasury or [F116either regulator], is relevant for purposes of, or connected with, any relevant provision;

(f)make such consequential, transitional or supplemental provision as the Treasury consider appropriate for purposes of, or connected with, any relevant provision [F117, including provision which applies (with or without modification) provision in this Act or other primary or subordinate legislation that relates to investment activity or financial services to a regulated activity that does not relate to investment activity or financial services].

(2)Provision made as a result of sub-paragraph (1)(f) may amend any primary or subordinate legislation, including any provision of, or made under, this Act.

(3)Relevant provision” means any provision—

(a)of section 22 or this Schedule; or

(b)made under that section or this Schedule.

Textual Amendments

F114Words in Sch. 2 para. 25(1) substituted (E.W.S.) (6.10.2018) by Financial Guidance and Claims Act 2018 (c. 10), ss. 27(13)(a)(i), 37(5); S.I. 2018/1045, reg. 2(a)

F115Words in Sch. 2 para. 25(1) inserted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 8(2)(a), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1

F116Words in Sch. 2 para. 25(1) substituted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 8(2)(b), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1

F117Words in Sch. 2 para. 25(1)(f) inserted (E.W.S.) (6.10.2018) by Financial Guidance and Claims Act 2018 (c. 10), ss. 27(13)(a)(ii), 37(5); S.I. 2018/1045, reg. 2(a)

[F118Parliamentary control]U.K.

Textual Amendments

F118Sch. 2 para. 26 and crossheading substituted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 8(3), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1

[F11826(1)This paragraph applies to any order made under section 22(1) [F119or (1A)] [F119to (1B)] which contains a statement by the Treasury that, in their opinion, the effect (or one of the effects) of the proposed order would be that an activity which is not a regulated activity would become a regulated activity.U.K.

(2)No order to which this paragraph applies may be made unless—

(a)a draft of the order has been laid before Parliament and approved by a resolution of each House, or

(b)sub-paragraph (4) applies.

(3)Sub-paragraph (4) applies if an order to which this paragraph applies also contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.

(4)Where this sub-paragraph applies the order—

(a)must be laid before Parliament after being made, and

(b)ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).

(5)The “relevant period” is a period of 28 days beginning with the day on which the order is made.

(6)In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.]

InterpretationU.K.

27(1)In this Schedule—U.K.

  • buying” includes acquiring for valuable consideration;

  • offering” includes inviting to treat;

  • property” includes currency of the United Kingdom or any other country or territory; and

  • selling” includes disposing for valuable consideration.

(2)In sub-paragraph (1) “disposing” includes—

(a)in the case of an investment consisting of rights under a contract—

(i)surrendering, assigning or converting those rights; or

(ii)assuming the corresponding liabilities under the contract;

(b)in the case of an investment consisting of rights under other arrangements, assuming the corresponding liabilities under the contract or arrangements;

(c)in the case of any other investment, issuing or creating the investment or granting the rights or interests of which it consists.

(3)In this Schedule references to an instrument include references to any record (whether or not in the form of a document).

Section 31

[F120SCHEDULE 2AU.K.Gibraltar-based persons carrying on activities in the UK

PART 1U.K.Interpretation etc

Gibraltar-based personU.K.

1(1)In this Act, “Gibraltar-based person” means a person listed in sub-paragraph (2) which has its head office and, if it has one, its registered office in Gibraltar (and see also Part 14 of this Schedule).U.K.

(2)Those persons are—

(a)an individual,

(b)a body corporate,

(c)a partnership, or

(d)an unincorporated association.

RegulatorsU.K.

2(1)In this Schedule—U.K.

  • the Gibraltar regulator” means the Gibraltar Financial Services Commission;

  • UK regulator” means the FCA or the PRA.

(2)The Treasury may by regulations amend the definition of “the Gibraltar regulator” if they consider it appropriate to do so in consequence of a change in the law of Gibraltar.

Activities and branchesU.K.

3(1)In this Schedule, “approved activity” means a regulated activity for the time being approved by regulations under paragraph 5.U.K.

(2)For the purposes of this Schedule—

(a)corresponding activity” means an activity corresponding to an approved activity, and

(b)references (however expressed) to an activity corresponding to an approved activity, or an approved activity corresponding to another activity, are to be interpreted in accordance with regulations under paragraph 6.

(3)In this Schedule, “branch” means—

(a)a place where a person carries on an activity for an indefinite period and which does not have legal personality, or

(b)any other description of place specified in regulations made by the Treasury.

UK regulators' objectivesU.K.

4U.K.For the purposes of any provision of this Schedule which refers to the FCA's operational objectives or the PRA's objectives, in relation to the exercise of a power in relation to a particular person, it does not matter whether there is a relationship between that person and the persons whose interests will be protected by the exercise of the power.

PART 2U.K.Approved activities

Approval of regulated activitiesU.K.

5(1)The Treasury may by regulations approve a regulated activity for the purposes of this Schedule.U.K.

(2)The power under this paragraph includes power to approve a regulated activity—

(a)only so far as it is carried on by a person of a description specified in the regulations,

(b)only so far as it is carried on through a branch in the United Kingdom,

(c)only so far as it is carried on in other circumstances specified in the regulations, or

(d)subject to other limitations.

(3)In making regulations under this paragraph, the Treasury may have regard to any matter that they consider relevant (and see the restrictions in paragraphs 7, 8 and 9 and the requirement in paragraph 10).

Corresponding activities regulated in GibraltarU.K.

6(1)The Treasury must by regulations make provision about how each approved activity corresponds to activities which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar.U.K.

(2)The power under this paragraph includes power to make provision about an activity—

(a)only so far as it is carried on by a person of a description specified in the regulations,

(b)only so far as it is carried on in other circumstances specified in the regulations, or

(c)subject to other limitations.

(3)In making regulations under this paragraph, the Treasury may have regard to any matter that they consider relevant (and see the restrictions in paragraphs 7 and 8 and the requirement in paragraph 10).

ObjectivesU.K.

7(1)The Treasury may not make regulations under paragraph 5 or 6 unless they are satisfied that doing so is compatible with each of the following objectives—U.K.

(a)to protect and enhance the soundness, stability and resilience of the UK financial system;

(b)to protect and enhance public confidence in the UK financial system;

(c)to prevent the use of the UK financial system for a purpose connected with financial crime;

(d)to ensure that the relevant markets in the United Kingdom function well;

(e)to protect consumers;

(f)to protect the operation of the compensation scheme;

(g)to protect public funds;

(h)to maintain and improve relations between the United Kingdom and other countries and territories with significant financial markets or significant markets for financial services.

(2)In this paragraph—

  • consumers” has the meaning given in section 1G;

  • financial crime” has the meaning given in section 1H;

  • public funds” means the Consolidated Fund and any other account or source of money which cannot be drawn or spent other than by, or with the authority of, the Treasury;

  • the relevant markets” means the markets for services provided by persons carrying on the regulated activity or approved activity (as appropriate) to which the regulations relate.

Alignment of law and practiceU.K.

8(1)The Treasury may not approve a regulated activity under paragraph 5, or identify an activity as corresponding to an approved activity under paragraph 6, unless they are satisfied that, having regard to the objectives in paragraph 7(1), the relevant law and practice of the United Kingdom and Gibraltar are sufficiently aligned.U.K.

(2)In this paragraph, “the relevant law and practice” means—

(a)in relation to the United Kingdom, law and practice under which the carrying on of what is or would be the approved activity is authorised and supervised and other law and practice relevant to the carrying on of that activity,

(b)in relation to Gibraltar, law and practice under which the carrying on of what would be the corresponding activity is authorised and supervised and other law and practice relevant to the carrying on of that activity, and

(c)in relation to both the United Kingdom and Gibraltar, law and practice relevant to the objectives in paragraph 7(1).

(3)The reference to alignment between the law and practice of the United Kingdom and Gibraltar in sub-paragraph (1) includes both alignment as regards the effect of the law and practice and alignment of the text of the law and of any guidance or other documents relating to practice.

Co-operationU.K.

9(1)The Treasury may not approve a regulated activity under paragraph 5 unless they are satisfied that, having regard to the objectives in paragraph 7(1), there is, or will be, adequate co-operation between—U.K.

(a)the UK entities listed in sub-paragraph (2), and

(b)the Gibraltar entities listed in sub-paragraph (3).

(2)The UK entities are—

(a)the Treasury,

(b)the FCA,

(c)the PRA, and

(d)the scheme manager.

(3)The Gibraltar entities are—

(a)the government of Gibraltar, and

(b)the Gibraltar regulator.

(4)In determining whether the test in sub-paragraph (1) is satisfied, the Treasury must have regard to—

(a)memoranda describing how the UK entities and the Gibraltar entities intend to co-operate,

(b)arrangements for the UK entities to obtain information and documents from the Gibraltar entities,

(c)arrangements for the verification of such information and documents (whether by, or by a person appointed by, a UK entity or a Gibraltar entity),

(d)arrangements for the Gibraltar entities to obtain information and documents from the UK entities, and

(e)anything else that the Treasury consider relevant.

ConsultationU.K.

10U.K.Before making regulations under paragraph 5 or 6, the Treasury must consult—

(a)the government of Gibraltar,

(b)the FCA, and

(c)if the regulations relate to activities which consist of or include PRA-regulated activities, the PRA.

Withdrawal of approvalU.K.

11(1)The restrictions in paragraphs 7, 8 and 9 do not apply in relation to regulations under paragraph 5 to the extent that the regulations—U.K.

(a)revoke other regulations under paragraph 5, or

(b)otherwise amend other regulations under paragraph 5 in order to withdraw the Treasury's approval of an activity.

(2)The restrictions in paragraphs 7 and 8 do not apply in relation to regulations under paragraph 6 to the extent that the regulations—

(a)revoke other regulations under paragraph 6, or

(b)otherwise amend other regulations under paragraph 6 in order to provide that an activity which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar does not correspond to an approved activity.

PART 3U.K.Permission to carry on an approved activity

Obtaining permission to carry on an approved activityU.K.

12(1)If the appropriate UK regulator receives a notification from the Gibraltar regulator that a Gibraltar-based person wants to be able to carry on an approved activity in the United Kingdom (see paragraph 15), the person obtains permission to do so at the end of the period for considering the notification, as it relates to the activity (see paragraph 16).U.K.

(2)The person does not obtain permission to carry on an activity under sub-paragraph (1) if, during the period for considering the notification—

(a)the appropriate UK regulator rejects the notification, as it relates to the activity (see paragraph 17), or

(b)the Gibraltar regulator withdraws the notification, as it relates to the activity.

(3)References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

(4)A permission obtained under this paragraph is referred to in this Act as “a Schedule 2A permission”.

Schedule 2A permissionU.K.

13(1)A Schedule 2A permission for a person to carry on an activity is a permission to do so only if and to the extent that—U.K.

(a)the person is a Gibraltar-based person,

(b)the activity is an approved activity, and

(c)the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

subject to the transitional arrangements in Parts 9 and 10 of this Schedule.

(2)A Gibraltar-based person's Schedule 2A permission to carry on an activity is a permission to do so—

(a)on terms equivalent to the terms of the person's permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar, and

(b)subject to any limitations specified in the notification (for example, as to the circumstances in which the activity is to be carried on in the United Kingdom) (and see also paragraph 21(3)).

(3)The reference in sub-paragraph (2)(a) to the terms of the person's permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar includes—

(a)any restrictions included in the permission, and

(b)any other restrictions imposed by the Gibraltar regulator on the carrying on by the person of the activity in Gibraltar.

The appropriate UK regulatorU.K.

14U.K.In relation to a notification, “the appropriate UK regulator” means—

(a)the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b)the FCA, in any other case.

Notifying the appropriate UK regulatorU.K.

15(1)A notification must—U.K.

(a)name the Gibraltar-based person,

(b)state the address of the person's head office in Gibraltar,

(c)specify the approved activity which the person wants to be able to carry on in the United Kingdom, including any limitations,

(d)specify the corresponding activity, including any restrictions,

(e)state that the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

(f)state that the Gibraltar regulator consents to the person carrying on the approved activity in the United Kingdom,

(g)identify each person who is responsible for managing an aspect of the Gibraltar-based person's affairs relating to the approved activity and describe that person's responsibilities as regards those affairs,

(h)state whether the Gibraltar-based person wants to carry on the activity through a branch in the United Kingdom and, if so—

(i)identify each person who is or will be responsible for managing an aspect of the affairs of the branch, and

(ii)describe that person's responsibilities as regards those affairs, and

(i)contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

(2)A notification may relate to more than one approved activity.

(3)The Treasury may by regulations change the information that a notification must contain.

(4)Regulations under sub-paragraph (3) may amend this paragraph, but may not amend or repeal sub-paragraph (1)(i).

(5)Before making regulations under sub-paragraph (3), the Treasury must consult—

(a)the government of Gibraltar, and

(b)the UK regulators.

(6)In sub-paragraph (1), the references to managing an aspect of a person's affairs or a branch's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how that aspect of the affairs should be carried on.

Considering a notificationU.K.

16(1)Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.U.K.

(2)The period for considering a notification is—

(a)so far as it relates to an activity that is to be carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b)so far as it relates to any other activity, the period of one month beginning with that day.

(3)If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of an approved activity specified in the notification, then the period for considering the notification as it relates to the activity ends when the notice is given.

(4)A “confirmation notice” is a written notice confirming that the person has a Schedule 2A permission in relation to the approved activity.

(5)A confirmation notice may relate to more than one activity.

Rejecting a notificationU.K.

17(1)The appropriate UK regulator may not reject a notification unless—U.K.

(a)it is required to do so under paragraph 18, or

(b)it has power to do under paragraph 19 or 20.

(2)A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3)The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification relating to the same person and the same activity.

Duties to rejectU.K.

18(1)The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 15(1).U.K.

(2)The appropriate UK regulator must reject a notification, so far as it relates to an activity, if the activity ceases to be an approved activity.

(3)The appropriate UK regulator must reject a notification, so far as it relates to an approved activity, if satisfied that the Gibraltar-based person does not have permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar.

Power to reject: prohibition order in respect of senior managerU.K.

19(1)The appropriate UK regulator may reject a notification, so far as it relates to an approved activity, if satisfied that a person with responsibility for managing an aspect of the Gibraltar-based person's affairs—U.K.

(a)is prohibited from performing a function by a prohibition order, and

(b)performs a senior management function in relation to the carrying on of the approved activity by the Gibraltar-based person in the United Kingdom, Gibraltar or elsewhere or is expected to do so if the person obtains a Schedule 2A permission to carry on the approved activity in the United Kingdom.

(2)In sub-paragraph (1)—

(a)the reference to managing an aspect of a person's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how that aspect of those affairs should be carried on,

(b)prohibition order” means—

(i)an order under section 56,

(ii)an order under section 143S, or

(iii)an order under the law of Gibraltar which the appropriate UK regulator considers to be equivalent to an order under section 56 or 143S, and

(c)senior management function”, in relation to the carrying on of an activity by the Gibraltar-based person, means a function which requires a person to manage an aspect of the Gibraltar-based person's affairs which involves, or might involve, a risk of serious consequences—

(i)for the Gibraltar-based person, or

(ii)for business or other interests in the United Kingdom, Gibraltar or elsewhere.

Power to reject: loss of access right and serious threat to the UKU.K.

20(1)The appropriate UK regulator may reject a notification if satisfied that the Gibraltar-based person—U.K.

(a)lost a relevant access right at any time, and

(b)poses, or is likely to pose, a serious threat to—

(i)the interests of consumers (as defined in section 1G), or

(ii)the soundness, stability and resilience of the UK financial system or a part of that system.

(2)The appropriate UK regulator may reject a notification if satisfied that—

(a)the Gibraltar-based person—

(i)is a member of the same group as a person that lost a relevant access right at any time, or

(ii)has close links with such a person (as defined in paragraph 2C(2) of Schedule 6), and

(b)given the nature of the relationship between that person and the Gibraltar-based person, the Gibraltar-based person poses, or is likely to pose, a serious threat to—

(i)the interests of consumers (as defined in section 1G), or

(ii)the soundness, stability and resilience of the UK financial system or a part of that system.

(3)For the purposes of this paragraph, a person lost a relevant access right if—

(a)its Part 4A permission was cancelled,

(b)its Schedule 2A permission was cancelled, or

(c)it ceased to qualify for authorisation under Schedule 3 (other than by virtue of the repeal of that Schedule).

(4)When deciding whether to reject a notification under this paragraph, the appropriate UK regulator must have regard, among other things, to the reasons why the person lost the relevant access right.

PART 4U.K.Variation of permission

Variation of permissionU.K.

21(1)A Schedule 2A permission may be varied in accordance with this Part of this Schedule—U.K.

(a)on the initiative of the Gibraltar regulator (see paragraphs 22 to 26), or

(b)on the initiative of a UK regulator (see paragraphs 27 to 30).

(2)References in this Part of this Schedule to the variation of a Schedule 2A permission (however expressed) are to its variation by—

(a)adding an approved activity to those to which the permission relates,

(b)removing an approved activity from those to which the permission relates, or

(c)varying the description of an activity to which the permission relates (including by adding, removing or varying a limitation).

(3)Where a limitation is added, removed or varied under this Part of this Schedule, paragraph 13(2)(b) has effect as if it referred to the limitations (if any) that have effect after that change.

Gibraltar regulator's initiative: notificationU.K.

22(1)If the appropriate UK regulator receives a notification from the Gibraltar regulator requesting the variation of a Gibraltar-based person's Schedule 2A permission (see paragraph 24), the permission is varied—U.K.

(a)if the notification specifies a time for the variation to take effect which falls after the end of the period for considering the notification as it relates to the variation (see paragraph 25), at that time, or

(b)otherwise, at the end of the period for considering the notification, as it relates to the variation.

(2)A variation requested in a notification does not take effect under sub-paragraph (1) if, during the period for considering the notification—

(a)the appropriate UK regulator rejects the notification, as it relates to the variation (see paragraph 26), or

(b)the Gibraltar regulator withdraws the notification, as it relates to the variation.

(3)References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

Gibraltar regulator's initiative: the appropriate UK regulatorU.K.

23U.K.In relation to a notification, “the appropriate UK regulator” means—

(a)the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b)the FCA, in any other case.

Gibraltar regulator's initiative: notifying the UK regulatorU.K.

24(1)A notification must—U.K.

(a)state the desired variation,

(b)specify the approved activity or approved activities which the Gibraltar-based person wants to carry on following the variation, including any limitations,

(c)specify the corresponding activity, including any restrictions,

(d)state that the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

(e)state that the Gibraltar regulator consents to the variation, and

(f)contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

(2)A notification may state when the desired variation is to have effect.

(3)A notification may relate to more than one variation.

Gibraltar regulator's initiative: considering a notificationU.K.

25(1)Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.U.K.

(2)The period for considering a notification is—

(a)so far as it relates to a variation in respect of an activity carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b)so far as it relates to any other variation, the period of one month beginning with that day.

(3)If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of a variation specified in the notification, then the period for considering the notification as it relates to the variation ends when the notice is given.

(4)A “confirmation notice” is a written notice confirming that the variation has effect as specified in the notification.

(5)A confirmation notice may relate to more than one variation.

Gibraltar regulator's initiative: rejecting a notificationU.K.

26(1)The appropriate UK regulator may not reject a notification unless—U.K.

(a)it is required to do so under sub-paragraph (3) or (4), or

(b)it has power to do under sub-paragraph (5).

(2)A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3)The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 24(1).

(4)The appropriate UK regulator must reject a notification if it would be required to do so by paragraph 18(2) or (3) if the notification were a notification under Part 3 of this Schedule relating to—

(a)the Gibraltar-based person, and

(b)the activities that the person would have a Schedule 2A permission to carry on if the permission were varied as specified in the notification.

(5)The appropriate UK regulator may reject a notification if it would have power to do so under paragraph 19 or 20 if the notification were a notification under Part 3 of this Schedule relating to—

(a)the Gibraltar-based person, and

(b)the activities that the person would have a Schedule 2A permission to carry on if the permission were varied as specified in the notification.

(6)The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification.

UK regulator's initiativeU.K.

27(1)A UK regulator may exercise a power under this paragraph in relation to a Gibraltar-based person with a Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).U.K.

(2)The FCA may vary a Schedule 2A permission.

(3)The PRA may vary a PRA-authorised person's Schedule 2A permission.

(4)In the case of a person who is not a PRA-authorised person, the PRA may vary the person's Schedule 2A permission by adding an approved activity that is a PRA-regulated activity to those to which the permission relates.

(5)Where it adds an approved activity under sub-paragraph (4), the PRA may vary the person's Schedule 2A permission in any of the other ways described in paragraph 21(2).

Own-initiative conditionsU.K.

28(1)For the purposes of this Schedule, “the own-initiative conditions” are—U.K.

(a)in relation to the exercise of a power by the FCA, conditions A to C, and

(b)in relation to the exercise of a power by the PRA, conditions A to D.

(2)Condition A is that the UK regulator in question considers that—

(a)it is desirable to exercise the power in order to advance one or more of its objectives, and

(b)the Gibraltar regulator—

(i)is aware, or ought reasonably to be aware, of the reasons why the UK regulator considers that to be the case, and

(ii)has had time to take steps, or indicate what steps (if any) it is likely to take, in response.

(3)Condition B is that the UK regulator in question considers that—

(a)it is desirable to exercise the power in order to advance one or more of its objectives, and

(b)a delay in exercising the power would be materially detrimental to—

(i)the interests of consumers (as defined in section 1G), or

(ii)the soundness, stability and resilience of the UK financial system or a part of that system.

(4)Condition C is that the UK regulator in question considers that—

(a)the Gibraltar-based person is contravening, or has contravened, a rule made by the UK regulator or a requirement imposed on it by the UK regulator under Part 6 of this Schedule, and

(b)the contravention is not minor, having regard to the nature of the contravention or its consequences (or both).

(5)Condition D is that the PRA considers that—

(a)it is desirable to exercise the power in order to advance one or more of the PRA's objectives, and

(b)the Gibraltar-based person poses, or may pose, a risk to the soundness, stability and resilience of the UK financial system, or a part of that system, of a type specified for the purposes of this condition in the policy statement produced by the PRA under paragraph 71.

(6)In the case of the FCA, references in this paragraph to its objectives are references only to its operational objectives.

UK regulator's initiative: procedureU.K.

29(1)The variation of a Schedule 2A permission under paragraph 27 takes effect—U.K.

(a)immediately, if the notice given under sub-paragraph (3) states that is the case,

(b)on such date as may be specified in the notice, or

(c)if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.

(2)The variation of a Schedule 2A permission under paragraph 27 may be expressed to take effect immediately, or on a specified date, only if the UK regulator reasonably considers that it is necessary for the variation to take effect immediately or on that date, having regard to the own-initiative condition on which it is relying for the purposes of paragraph 27(1).

(3)If a UK regulator—

(a)proposes to vary a Schedule 2A permission under paragraph 27, or

(b)varies a Schedule 2A permission under that paragraph with immediate effect,

it must give the Gibraltar-based person a written notice.

(4)The notice must—

(a)give details of the variation,

(b)state the UK regulator's reasons for varying the permission,

(c)inform the Gibraltar-based person that the person may make representations to the UK regulator within the period specified in the notice (whether or not the Gibraltar-based person has referred the matter to the Tribunal),

(d)inform the Gibraltar-based person of when the variation of the permission takes effect, and

(e)inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(5)The UK regulator may extend the period allowed under the notice for making representations.

(6)If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a)to vary the permission in the way proposed, or

(b)if the permission has been varied, not to rescind its variation,

it must give the Gibraltar-based person a written notice.

(7)A notice under sub-paragraph (6) must inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(8)If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a)not to vary the permission in the way proposed,

(b)to vary the permission in a different way, or

(c)to rescind the variation,

it must give the Gibraltar-based person a written notice.

(9)A notice under sub-paragraph (8)(b) must comply with sub-paragraph (4).

(10)If a notice under this paragraph informs a person of the person's right to refer a matter to the Tribunal, it must give an indication of the procedure for such a reference.

(11)For the purposes of sub-paragraph (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).

Right to refer matters to the TribunalU.K.

30U.K.A Gibraltar-based person who is aggrieved by the exercise by a UK regulator of a power under paragraph 27 in relation to the person may refer the matter to the Tribunal.

PART 5U.K.Cancellation of permission

Cancellation of permissionU.K.

31U.K.A Schedule 2A permission may be cancelled in accordance with this Part of this Schedule—

(a)on the initiative of the Gibraltar regulator (see paragraphs 32 to 36), or

(b)on the initiative of a UK regulator (see paragraphs 37 to 39).

Gibraltar regulator's initiative: notificationU.K.

32(1)If the appropriate UK regulator receives a notification from the Gibraltar regulator requesting the cancellation of a Gibraltar-based person's Schedule 2A permission (see paragraph 34), the permission is cancelled when the period for considering the notification ends (see paragraph 35).U.K.

(2)A Schedule 2A permission is not cancelled under sub-paragraph (1) if, during the period for considering the notification—

(a)the appropriate UK regulator rejects the notification (see paragraph 36), or

(b)the Gibraltar regulator withdraws the notification.

(3)References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

Gibraltar regulator's initiative: the appropriate UK regulatorU.K.

33U.K.In relation to a notification, “the appropriate UK regulator” means—

(a)the PRA, in a case where the Gibraltar-based person is a PRA-authorised person, and

(b)the FCA, in any other case.

Gibraltar regulator's initiative: notifying the UK regulatorU.K.

34U.K.A notification must—

(a)state the reason for requesting the cancellation of the permission,

(b)state that the Gibraltar regulator consents to the cancellation, and

(c)contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

Gibraltar regulator's initiative: considering a notificationU.K.

35(1)Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.U.K.

(2)The period for considering a notification is—

(a)where the Schedule 2A permission relates to one or more activities carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b)otherwise, the period of one month beginning with that day.

(3)If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of the notification, then the period for considering the notification ends when the notice is given.

(4)A “confirmation notice” is a written notice confirming that the Schedule 2A permission is cancelled.

Gibraltar regulator's initiative: rejecting a notificationU.K.

36(1)The appropriate UK regulator may not reject a notification unless—U.K.

(a)it is required to do so under sub-paragraph (3), or

(b)it has power to do under sub-paragraph (4) or (5).

(2)A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3)The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy a requirement in paragraph 34.

(4)The FCA may reject a notification if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.

(5)The PRA may reject a notification if it appears to the PRA that it is desirable to do so in order to advance one or more of its objectives.

(6)The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification.

UK regulator's initiativeU.K.

37(1)The FCA may cancel a Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).U.K.

(2)The PRA may cancel a PRA-authorised person's Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).

(3)The appropriate UK regulator must cancel a Schedule 2A permission where—

(a)the permission no longer enables the person to carry on an approved activity (whether by virtue of paragraph 13 or otherwise), and

(b)the UK regulator is satisfied that it is no longer necessary to keep the permission in force.

(4)In this paragraph, “the appropriate UK regulator” means—

(a)the PRA, in a case where the Gibraltar-based person is a PRA-authorised person, and

(b)the FCA, in any other case.

UK regulator's initiative: procedureU.K.

38(1)If a UK regulator proposes to cancel a Gibraltar-based person's Schedule 2A permission under paragraph 37, it must give the person a warning notice.U.K.

(2)If a UK regulator decides to cancel a Gibraltar-based person's Schedule 2A permission under paragraph 37, it must give the person a decision notice.

Right to refer matters to the TribunalU.K.

39U.K.If a UK regulator gives a Gibraltar-based person a decision notice under paragraph 38, the person may refer the matter to the Tribunal.

PART 6U.K.Requirements

RequirementsU.K.

40(1)A requirement may be imposed on a Gibraltar-based person in accordance with this Part of this Schedule—U.K.

(a)by a UK regulator as part of the process of considering a notification under Part 3 or 4 of this Schedule (see paragraphs 41 to 43),

(b)on the initiative of the Gibraltar regulator (see paragraphs 44 to 48), or

(c)on the UK regulator's initiative (see paragraphs 49 to 52).

(2)Requirements imposed on a Gibraltar-based person in accordance with this Part of this Schedule may be varied or cancelled in accordance with this Part of this Schedule—

(a)on the initiative of the Gibraltar regulator (see paragraphs 44 to 48), or

(b)on the UK regulator's initiative (see paragraphs 49 to 52).

Imposing requirements in connection with Part 3 or 4 notificationU.K.

41(1)This paragraph applies where a UK regulator has received—U.K.

(a)a notification for the purposes of paragraph 12 in respect of the carrying on of an activity by a Gibraltar-based person, or

(b)a notification for the purposes of paragraph 22 in respect of the variation of a Gibraltar-based person's Schedule 2A permission.

(2)A UK regulator may exercise the powers under this paragraph where it considers that it is desirable to do so in order to advance one or more of its objectives.

(3)The FCA may impose requirements on the Gibraltar-based person.

(4)The PRA may impose requirements on the Gibraltar-based person if—

(a)the notification mentioned in sub-paragraph (1) relates to activities which consist of or include PRA-regulated activities, or

(b)the Gibraltar-based person is a PRA-authorised person.

(5)A requirement may not be imposed under this paragraph—

(a)after the end of the period for considering the notification mentioned in sub-paragraph (1), or

(b)so as to take effect before the end of that period.

(6)In the case of the FCA, the reference in this paragraph to its objectives is a reference only to its operational objectives.

Imposing requirements in connection with Part 3 or 4 notification: procedureU.K.

42(1)If a UK regulator proposes to impose a requirement on a Gibraltar-based person under paragraph 41, it must—U.K.

(a)give the person a warning notice,

(b)give the Gibraltar regulator a written notice of the proposed requirement, stating the UK regulator's reasons for imposing the requirement, and

(c)consider any representations made by the Gibraltar regulator within the period specified in the notice.

(2)If a UK regulator decides to impose a requirement on a Gibraltar-based person under paragraph 41, it must give the person a decision notice.

Right to refer matters to the TribunalU.K.

43U.K.If a UK regulator gives a Gibraltar-based person a decision notice under paragraph 42, the person may refer the matter to the Tribunal.

Gibraltar regulator's initiative: notificationU.K.

44(1)If the appropriate UK regulator receives a notification from the Gibraltar regulator (see paragraph 46)—U.K.

(a)asking for a requirement to be imposed on a Gibraltar-based person with a Schedule 2A permission, or

(b)asking for a requirement imposed on a Gibraltar-based person with a Schedule 2A permission to be varied or cancelled,

the requirement is imposed, varied or cancelled as specified in the notification at the end of the period for considering the notification, as it relates to the requirement (see paragraph 47).

(2)The requirement is not imposed, varied or cancelled under sub-paragraph (1) if, during the period for considering the notification—

(a)the appropriate UK regulator rejects the notification, as it relates to the requirement (see paragraph 48), or

(b)the Gibraltar regulator withdraws the notification, as it relates to the requirement.

(3)References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph, except where otherwise stated.

Gibraltar regulator's initiative: the appropriate UK regulatorU.K.

45U.K.In relation to a notification, “the appropriate UK regulator” means—

(a)the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b)the FCA, in any other case.

Gibraltar regulator's initiative: notifying the UK regulatorU.K.

46U.K.A notification must—

(a)state the requirement to be imposed or the desired variation or cancellation (as appropriate),

(b)state the reason for asking for the requirement to be imposed, varied or cancelled,

(c)state that the Gibraltar regulator consents to the requirement being imposed, varied or cancelled, and

(d)contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

Gibraltar regulator's initiative: considering a notificationU.K.

47(1)Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.U.K.

(2)The period for considering a notification is—

(a)so far as it relates to a requirement to be imposed on a Gibraltar-based person with a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b)so far as it relates to any other requirement, the period of one month beginning with that day.

(3)If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of a requirement specified in the notification, then the period for considering the notification as it relates to the requirement ends when the notice is given.

(4)A “confirmation notice” is a written notice confirming that the requirement is imposed, varied or cancelled as requested in the notification.

Gibraltar regulator's initiative: rejecting a notificationU.K.

48(1)The appropriate UK regulator may not reject a notification so far as it relates to a requirement unless—U.K.

(a)it is required to do so under sub-paragraph (3), or

(b)it has power to do under sub-paragraph (4) or (5).

(2)A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3)The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 46.

(4)The FCA may reject a notification, so far as it relates to a requirement, if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.

(5)The PRA may reject a notification, so far as it relates to a requirement, if it appears to the PRA that it is desirable to do so in order to advance one or more of its objectives.

(6)The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification in respect of the same requirement.

UK regulator's initiative: imposing, varying and cancelling requirementsU.K.

49(1)A UK regulator may exercise the powers under this paragraph in relation to a Gibraltar-based person only where one of the own-initiative conditions is satisfied (see paragraph 28).U.K.

(2)The FCA may—

(a)impose a requirement on a Gibraltar-based person with a Schedule 2A permission,

(b)vary a requirement imposed by the FCA under this Part of this Schedule, or

(c)cancel such a requirement.

(3)The PRA may—

(a)impose a requirement on a Gibraltar-based person with a Schedule 2A permission where the person is a PRA-authorised person,

(b)vary a requirement imposed by the PRA under this Part of this Schedule, or

(c)cancel such a requirement.

UK regulator's initiative: procedure for imposing or varying requirementsU.K.

50(1)The imposition or variation of a requirement under paragraph 49 takes effect—U.K.

(a)immediately, if the notice given under sub-paragraph (3) states that is the case,

(b)on such date as may be specified in the notice, or

(c)if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.

(2)The imposition or variation of a requirement under paragraph 49 may be expressed to take effect immediately, or on a specified date, only if the UK regulator reasonably considers that it is necessary for the imposition or variation of the requirement to take effect immediately or on that date, having regard to the own-initiative condition on which it is relying for the purposes of paragraph 49(1).

(3)If a UK regulator—

(a)proposes to exercise the power under paragraph 49 to impose a requirement on a Gibraltar-based person, or vary a requirement imposed on a Gibraltar-based person, or

(b)exercises that power so as to impose a requirement on a Gibraltar-based person, or vary a requirement imposed on a Gibraltar-based person, with immediate effect,

it must give the person a written notice.

(4)The notice must—

(a)give details of the requirement or its variation,

(b)state the UK regulator's reasons for imposing or varying the requirement,

(c)inform the Gibraltar-based person that the person may make representations to the UK regulator within the period specified in the notice (whether or not the Gibraltar-based person has referred the matter to the Tribunal),

(d)inform the Gibraltar-based person of when the imposition or variation of the requirement takes effect, and

(e)inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(5)The UK regulator may extend the period allowed under the notice for making representations.

(6)If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a)to impose the requirement or vary the requirement in the way proposed, or

(b)if the requirement has been imposed or varied, not to rescind its imposition or variation,

it must give the Gibraltar-based person a written notice.

(7)A notice under sub-paragraph (6) must inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(8)If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a)not to impose the requirement or vary the requirement in the way proposed,

(b)to impose a different requirement or vary the requirement in a different way, or

(c)to rescind a requirement or variation which has effect,

it must give the Gibraltar-based person a written notice.

(9)A notice under sub-paragraph (8)(b) must comply with sub-paragraph (4).

(10)If a notice under this paragraph informs a person of the person's right to refer a matter to the Tribunal, it must give an indication of the procedure for such a reference.

(11)For the purposes of sub-paragraph (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).

UK regulator's initiative: procedure for cancellationU.K.

51(1)If a UK regulator proposes to exercise a power under paragraph 49 to cancel a requirement imposed on a Gibraltar-based person, it must give the person a written notice.U.K.

(2)The notice must specify the date on which the cancellation takes effect.

Right to refer matters to the TribunalU.K.

52U.K.A Gibraltar-based person who is aggrieved by the exercise by a UK regulator of a power under paragraph 49 to impose a requirement on the person, or vary a requirement imposed on the person, may refer the matter to the Tribunal.

Assets requirementsU.K.

53(1)This paragraph makes provision about a requirement imposed on a Gibraltar-based person (“G”) by a UK regulator under this Part of this Schedule—U.K.

(a)prohibiting the disposal of, or other dealing with, any of G's assets (whether in the United Kingdom, Gibraltar or elsewhere) or restricting such disposals or dealings, or

(b)requiring that some or all of G's assets, or some or all assets belonging to consumers (as defined in section 1G) but held by G or to G's order, must be transferred to and held by a trustee approved by the UK regulator.

(2)If a UK regulator—

(a)imposes a requirement described in sub-paragraph (1)(a), and

(b)gives notice of the requirement to an institution with whom G keeps an account,

the notice has the effects set out in sub-paragraph (3).

(3)Those effects are that—

(a)the institution does not act in breach of a contract with G if, having been instructed by G (or on G's behalf) to transfer a sum or otherwise make a payment out of G's account, it refuses to do so in the reasonably held belief that complying with the instruction would be incompatible with the requirement, and

(b)if the institution complies with such an instruction, it is liable to pay to the UK regulator an amount equal to the amount transferred from, or otherwise paid out of, G's account in contravention of the requirement.

(4)If a UK regulator imposes a requirement described in sub-paragraph (1)(b), no assets held by a person as trustee in accordance with the requirement may, while the requirement is in force, be released or dealt with except with the consent of the UK regulator.

(5)If, while a requirement described in sub-paragraph (1)(b) is in force, G creates a charge over any assets of G held in accordance with the requirement, the charge is (to the extent that it confers security over the assets) void against the liquidator and G's creditors.

(6)Assets held by a person as trustee are to be taken to be held by the trustee in accordance with a requirement mentioned in sub-paragraph (1)(b) only if—

(a)G has given the trustee a written notice that those assets are to be held by the trustee in accordance with the requirement, or

(b)they are assets into which assets to which paragraph (a) applies have been transposed by the trustee on the instruction of G.

(7)A person who contravenes sub-paragraph (4) commits an offence and is liable—

(a)on summary conviction in England and Wales, to a fine;

(b)on summary conviction in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.

(8)In this paragraph, references to imposing a requirement (however expressed) include imposing a requirement by varying an existing requirement.

(9)In this paragraph, “charge” includes a mortgage (or, in Scotland, a security over property).

(10)Sub-paragraphs (4) and (6) do not affect any equitable interest or remedy in favour of a person who is a beneficiary of a trust as a result of a requirement described in sub-paragraph (1)(b).

Further provision about requirementsU.K.

54(1)A requirement imposed on a Gibraltar-based person under this Part of this Schedule may, among other things, be imposed so as to require the person—U.K.

(a)to take specified action, or

(b)to refrain from taking specified action.

(2)A requirement imposed under this Part of this Schedule may extend to activities which are not approved activities.

(3)A requirement imposed on a Gibraltar-based person under this Part of this Schedule may be imposed by reference to the person's relationship with—

(a)the person's group, or

(b)other members of the person's group.

(4)A requirement imposed under this Part of this Schedule may be expressed to expire at the end of a specified period (but the imposition of such a requirement does not affect the UK regulator's powers to impose a new requirement).

(5)A requirement imposed on a Gibraltar-based person under this Part of this Schedule may refer to the past conduct of the person (for example, by requiring the person concerned to review or take remedial action in respect of past conduct).

Contravention of requirement imposed under this PartU.K.

55(1)Contravention of a requirement imposed under this Part of this Schedule does not—U.K.

(a)make a person guilty of an offence,

(b)make a transaction void or unenforceable, or

(c)give rise to a right of action for breach of statutory duty, subject to sub-paragraph (2).

(2)A contravention of a requirement imposed under this Part of this Schedule is actionable at the suit of a person who suffers loss as a result of the contravention where—

(a)the action would be brought at the suit of a private person, or

(b)the conditions in sub-paragraph (3) are met,

subject to the defences and other incidents applying to actions for breach of statutory duty.

(3)The conditions mentioned in sub-paragraph (2)(b) are that—

(a)the action would be brought by a person acting in a fiduciary or representative capacity on behalf of a private person, and

(b)any remedy would be exclusively for the benefit of that private person and could not be obtained through an action brought otherwise than at the suit of the person acting in a fiduciary or representative capacity.

(4)Sub-paragraph (2) does not apply where the requirement contravened is a requirement to have or maintain financial resources.

(5)In this paragraph, “private person” has such meaning as may be prescribed.

PART 7U.K.Changes

Duty to notify UK regulators of changesU.K.

56(1)A UK regulator may direct that a change relating to a Gibraltar-based person with a Schedule 2A permission is subject to the requirements in this paragraph.U.K.

(2)A direction under sub-paragraph (1) may only be given in relation to a change relating to a matter about which information must be provided in a notification given to the UK regulator for the purposes of paragraph 12 or 22 (see paragraphs 15 and 24).

(3)Where, by virtue of a direction under sub-paragraph (1), a change is subject to the requirements in this paragraph, a Gibraltar-based person with a Schedule 2A permission must notify the following of the change—

(a)the Gibraltar regulator;

(b)the UK regulator that gave the direction.

(4)A direction under sub-paragraph (1) in respect of a change may specify when the action described in sub-paragraph (3) must be taken in connection with the change.

(5)If a direction in respect of a change does not specify when the action described in sub-paragraph (3) must be taken in connection with the change, the action must be taken—

(a)before the change is made, where that is reasonably practicable, or

(b)otherwise, as soon as reasonably practicable after the change is made.

(6)A direction under this paragraph—

(a)may make different provision for different purposes, but

(b)may not make provision in relation to a specific Gibraltar-based person.

(7)A UK regulator that gives a direction under this paragraph may, by a further direction, vary or revoke the direction.

(8)The FCA must consult the Treasury before giving a direction under this paragraph.

(9)The PRA must consult the Treasury and the FCA before giving a direction under this paragraph.

(10)After giving a direction under this paragraph, a UK regulator must—

(a)publish the direction in the way appearing to the UK regulator to be best calculated to bring it to the attention of persons likely to be affected by it, and

(b)give a copy of the direction to the Treasury and the other UK regulator without delay.

PART 8U.K.UK regulators' directions about information

Directions about information to be included in notificationsU.K.

57(1)A UK regulator may direct that a notification for the purposes of paragraph 12, 22, 32 or 44 in relation to which it is the appropriate UK regulator must include information specified in the direction.U.K.

(2)In a direction, a UK regulator may only specify information which it reasonably considers necessary to enable it to discharge functions conferred on it by or under this Act in relation to persons with a Schedule 2A permission.

(3)A UK regulator that gives a direction under this paragraph may, by a further direction, vary or revoke the direction.

(4)A direction under this paragraph—

(a)may make different provision for different purposes, but

(b)may not make provision in relation to a specific person.

(5)The FCA must consult the Treasury before giving a direction under this paragraph.

(6)The PRA must consult the Treasury and the FCA before giving a direction under this paragraph.

(7)After giving a direction under this paragraph, a UK regulator must—

(a)publish the direction in the way appearing to the UK regulator to be best calculated to bring it to the attention of persons likely to be affected by it, and

(b)give a copy of the direction to the Treasury and the other UK regulator without delay.

PART 9U.K.Transition on withdrawal of approval of regulated activity etc

Transition on withdrawal of approval of regulated activityU.K.

58(1)Sub-paragraph (2) applies where—U.K.

(a)the Treasury withdraw their approval of a regulated activity for the purposes of this Schedule (by revoking or amending regulations under paragraph 5), and

(b)immediately before approval is withdrawn, a person had a Schedule 2A permission to carry on the activity.

(2)The regulated activity is to be treated as approved under this Schedule but—

(a)only so far as carried on by the person,

(b)subject to the time limit in sub-paragraph (3), and

(c)subject to any restriction under paragraph 60.

(3)The regulated activity ceases to be treated as approved under this Schedule by virtue of sub-paragraph (2)—

(a)at the end of the period specified by the Treasury by regulations, or

(b)if earlier, when an event listed in sub-paragraph (4) first occurs.

(4)Those events are—

(a)the person ceases to carry on the regulated activity in the United Kingdom;

(b)the person ceases to have permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar;

(c)the person ceases to have a Schedule 2A permission in respect of the activity;

(d)the person is given permission under Part 4A of this Act in respect of the activity;

(e)the Treasury approve the activity for the purposes of this Schedule (by making regulations under paragraph 5).

(5)Where the approval of the regulated activity referred to in sub-paragraph (1)(a) is subject to limitations, references in this Part of this Schedule to that activity are to that activity subject to those limitations.

(6)Where the withdrawal of the approval of the regulated activity referred to in sub-paragraph (1)(a) is subject to limitations, references in this Part of this Schedule to that activity are to that activity subject to those limitations.

(7)For the purposes of sub-paragraph (4)(b) and (c), a person does not cease to have permission in respect of an activity while it has permission to carry on the activity by virtue of, and subject to the restrictions in, Part 10 of this Schedule.

Transition on Gibraltar activity ceasing to be corresponding activityU.K.

59(1)Sub-paragraph (2) applies where—U.K.

(a)the Treasury provide that an activity which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar (a “Gibraltar activity”) does not correspond to an approved activity (by revoking or amending regulations under paragraph 6), and

(b)immediately before they do so, a person had a Schedule 2A permission to carry on the approved activity by virtue of having permission from the Gibraltar regulator to carry the Gibraltar activity.

(2)For the purposes of this Schedule, the Gibraltar activity is to be treated as corresponding to the approved activity but—

(a)only so far as the approved activity is carried on by the person in the United Kingdom,

(b)subject to the time limit in sub-paragraph (3), and

(c)subject to any restriction under paragraph 60.

(3)The Gibraltar activity ceases to be treated as corresponding to the approved activity by virtue of sub-paragraph (2)—

(a)at the end of the period specified by the Treasury by regulations, or

(b)if earlier, when an event listed in sub-paragraph (4) first occurs.

(4)Those events are—

(a)the person ceases to carry on the approved activity in the United Kingdom;

(b)the person ceases to have permission from the Gibraltar regulator to carry on the Gibraltar activity;

(c)the person ceases to have a Schedule 2A permission in respect of the approved activity;

(d)the person is given permission under Part 4A of this Act in respect of the approved activity;

(e)the Treasury provide that the Gibraltar activity corresponds to the approved activity (by making regulations under paragraph 6).

(5)Where the provision made about the Gibraltar activity in regulations under paragraph 6 immediately before the Treasury make the provision described in sub-paragraph (1)(a) is subject to limitations, references in this Part of this Schedule to the Gibraltar activity are to that activity subject to those limitations.

(6)Where the provision made about the Gibraltar activity in the regulations under paragraph 6 referred to in sub-paragraph (1)(a) is subject to limitations, references in this Part of this Schedule to the Gibraltar activity are to that activity subject to those limitations.

(7)For the purposes of sub-paragraph (4)(b) and (c), a person does not cease to have permission in respect of an activity while it has permission to carry on the activity by virtue of, and subject to the restrictions in, Part 10 of this Schedule.

Restricting transitional permissionU.K.

60(1)Sub-paragraph (2) applies where—U.K.

(a)by virtue of paragraph 58(1), a regulated activity is treated as approved under this Schedule so far as carried on by a person, or

(b)by virtue of paragraph 59(1), an activity which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar is treated as corresponding to an approved activity so far as the approved activity is carried on by a person.

(2)The appropriate UK regulator may decide that the person may only carry on the regulated activity or approved activity (as appropriate) in the United Kingdom so far as is necessary for one or more of the following purposes—

(a)for the performance of a protected contract;

(b)in order to reduce the financial risk of a party to a protected contract or a third party affected by the performance of a protected contract;

(c)in order to transfer the property, rights or liabilities under a protected contract to a person authorised to carry on a regulated activity by virtue of section 31(1)(a);

(d)in order to comply with a requirement imposed by or under an enactment.

(3)If it proposes to make a decision under sub-paragraph (2), the appropriate UK regulator must give the person a written notice.

(4)The notice must—

(a)give details of the proposed decision, and

(b)inform the person that the person may make representations to the appropriate UK regulator within the period specified in the notice.

(5)The appropriate UK regulator may extend the period allowed under the notice for making representations.

(6)If, having considered any representations made by the person, the appropriate UK regulator decides to restrict the person's activities as described in sub-paragraph (2), it must—

(a)give the person a written notice (“a restriction notice”), and

(b)inform the Gibraltar regulator in writing without delay.

(7)A restriction notice must—

(a)specify the date on which it takes effect,

(b)inform the person of the person's right to refer the matter to the Tribunal (see paragraph 62), and

(c)indicate the procedure on a reference to the Tribunal.

(8)The Treasury may by regulations provide that a restriction notice may not specify a date falling before the end of a period specified or described in the regulations.

(9)In this paragraph—

  • the appropriate UK regulator” means—

    (a)

    in the case of a PRA-authorised person, the PRA, and

    (b)

    in any other case, the FCA;

  • enactment” includes—

    (a)

    assimilated legislation,

    (b)

    an enactment comprised in subordinate legislation,

    (c)

    an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,

    (d)

    an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament, and

    (e)

    an enactment comprised in, or in an instrument made under, Northern Ireland legislation;

  • protected contract” means a contract specified or described in a direction by the appropriate UK regulator under paragraph 61;

  • subordinate legislation” has the same meaning as in the Interpretation Act 1978 (see section 21 of that Act).

(10)In this paragraph, references to the performance of a protected contract include the performance of an obligation under the contract which is contingent or conditional.

Directions about protected contractsU.K.

61(1)A UK regulator may direct that a contract specified or described in the direction is a protected contract for the purposes of this Part of this Schedule.U.K.

(2)A UK regulator that gives a direction under this paragraph may, by a further direction, vary or revoke the direction.

(3)A direction under this paragraph may make different provision for different purposes, including different provision in connection with—

(a)different activities,

(b)different contracts or descriptions of contract, or

(c)different Gibraltar-based persons or descriptions of Gibraltar-based person.

(4)After giving a direction under this paragraph, a UK regulator must—

(a)publish the direction in the way appearing to the UK regulator to be best calculated to bring it to the attention of persons likely to be affected by it, and

(b)give a copy of the direction to the Treasury and the other UK regulator without delay.

Right to refer matters to the TribunalU.K.

62U.K.Where a person in respect of whom a decision under paragraph 60(2) is made is aggrieved by the decision, the person may refer the matter to the Tribunal.

Further powersU.K.

63(1)The Treasury may by regulations extend the period under section 55V(1) or (2) for determining an application which—U.K.

(a)is for a Part 4A permission or a variation of a Part 4A permission, and

(b)relates only to the carrying on of an activity which the applicant is carrying on in the United Kingdom by virtue of this Part of this Schedule.

(2)The power under sub-paragraph (1) includes power to amend section 55V.

(3)The Treasury may by regulations extend the period for consideration of an application which—

(a)is for approval under section 59 or variation of approval under section 59, and

(b)relates only to performance of a function in relation to the carrying on of an activity which the applicant is carrying on in the United Kingdom by virtue of this Part of this Schedule.

(4)The power under sub-paragraph (3) includes power to amend sections 61 and 63ZA.

PART 10U.K.Transition on cancellation of UK or Gibraltar permission

Transition on cancellation of Schedule 2A permissionU.K.

64(1)Sub-paragraphs (2), (4) and (5) apply where—U.K.

(a)a person's Schedule 2A permission is cancelled under Part 5 of this Schedule, or

(b)a person's Schedule 2A permission is varied under Part 4 of this Schedule so as to remove permission to carry on an activity (including by adding or varying a limitation).

(2)The person is to be treated as continuing to have the Schedule 2A permission, or the permission to carry on the activity, but—

(a)only so far as is necessary for one or more of the purposes described in sub-paragraph (3), and

(b)subject to the time limit in paragraph 68.

(3)The purposes are—

(a)for the performance of a protected contract;

(b)to reduce the financial risk of a party to a protected contract or a third party affected by the performance of a protected contract;

(c)to transfer the property, rights or liabilities under a protected contract to a person authorised to carry on a regulated activity by virtue of section 31(1)(a);

(d)to comply with a requirement imposed by or under an enactment.

(4)A UK regulator may exercise the powers under paragraph 49(1) (UK regulator's initiative: imposing, varying and cancelling requirements) in relation to the person if it appears to the UK regulator that it is desirable to do so in order to advance—

(a)in the case of the FCA, one or more of its operational objectives, or

(b)in the case of the PRA, one of its objectives.

(5)For the purposes of section 33 (withdrawal of authorisation) a person's Schedule 2A permission is to be treated as being cancelled when the person ceases to be treated as having a Schedule 2A permission by virtue of this paragraph.

(6)In this paragraph—

  • enactment” has the same meaning as in paragraph 60;

  • protected contract” means—

    (a)

    an existing contract, or

    (b)

    a contract specified or described in a direction by the appropriate UK regulator under paragraph 67(1).

(7)In sub-paragraph (6), “existing contract”, in relation to a person referred to in sub-paragraph (1), means a contract entered into before the person's permission is cancelled or varied as described in that sub-paragraph, but—

(a)does not include a contract specified or described in a direction under paragraph 67(2), and

(b)except as otherwise provided in such a direction, does not include—

(i)a variation of a contract agreed on or after that day, or

(ii)a contract renewed on or after that day.

(8)In this paragraph, references to the performance of a protected contract include the performance of an obligation under the contract which is contingent or conditional.

Transition on cancellation of Gibraltar permissionU.K.

65(1)Sub-paragraphs (2) and (4) apply where the Gibraltar regulator—U.K.

(a)cancels a Gibraltar-based person's permission to carry on in Gibraltar an activity in relation to which the person has a Schedule 2A permission, or

(b)varies such a permission so as to remove permission to carry on such an activity (including by adding or varying a restriction).

(2)For the purposes of this Schedule, the person is to be treated as continuing to have the permission from the Gibraltar regulator but—

(a)only so far as is necessary for one or more of the purposes described in sub-paragraph (3), and

(b)subject to the time limit in paragraph 68.

(3)The purposes are—

(a)for the performance of a protected contract;

(b)to reduce the financial risk of a party to a protected contract or a third party affected by the performance of a protected contract;

(c)to transfer the property, rights or liabilities under a protected contract to a person authorised to carry on a regulated activity by virtue of section 31(1)(a);

(d)to comply with a requirement imposed by or under an enactment.

(4)A UK regulator may exercise the powers under paragraph 49(1) (UK regulator's initiative: imposing, varying and cancelling requirements) in relation to the person if it appears to the UK regulator that it is desirable to do so in order to advance—

(a)in the case of the FCA, one or more of its operational objectives, or

(b)in the case of the PRA, one of its objectives.

(5)In this paragraph—

  • enactment” has the same meaning as in paragraph 60;

  • protected contract” means—

    (a)

    an existing contract, or

    (b)

    a contract specified or described in a direction by the appropriate UK regulator under paragraph 67(1).

(6)In sub-paragraph (5), “existing contract”, in relation to a person referred to in sub-paragraph (1), means a contract entered into before the person's permission is cancelled or varied as described in that sub-paragraph, but—

(a)does not include a contract specified or described in a direction under paragraph 67(2), and

(b)except as otherwise provided in such a direction, does not include—

(i)a variation of a contract agreed on or after that day, or

(ii)a contract renewed on or after that day.

(7)In this paragraph, references to the performance of a protected contract include the performance of an obligation under the contract which is contingent or conditional.

The appropriate UK regulatorU.K.

66(1)In this Part of this Schedule, “the appropriate UK regulator” means—U.K.

(a)the PRA, in a case in which the Gibraltar-based person is a PRA-authorised person but not a paragraph 37(1) person, or

(b)the FCA, in any other case.

(2)In this paragraph, “a paragraph 37(1) person” means a person who is treated as having a Schedule 2A permission by virtue of paragraph 64 following the cancellation of that permission by the FCA under paragraph 37(1).

Directions about protected contractsU.K.

67(1)A UK regulator may direct that a contract specified or described in the direction is a protected contract for the purposes of paragraph 64 or 65 (or both).U.K.

(2)A UK regulator may, by giving a direction, modify the definition of “existing contract” for the purposes of paragraph 64 or 65 (or both) in the ways provided for in the definitions of that term in those paragraphs.

(3)A UK regulator that gives a direction under this paragraph may, by a further direction, vary or revoke the direction.

(4)A UK regulator may give different directions under this paragraph in connection with—

(a)different activities,

(b)different contracts or descriptions of contract, or

(c)different Gibraltar-based persons or descriptions of Gibraltar-based person.

(5)After giving a direction under this paragraph, a UK regulator must—

(a)publish the direction in the way appearing to the UK regulator to be best calculated to bring it to the attention of persons likely to be affected by it, and

(b)give a copy of the direction to the Treasury and the other UK regulator without delay.

End of transitionU.K.

68(1)A Gibraltar-based person ceases to be treated as having a permission by virtue of paragraph 64 or 65—U.K.

(a)when an event listed in sub-paragraph (2) first occurs, or

(b)if the appropriate UK regulator specifies an earlier date, on that date.

(2)Those events are—

(a)the person ceases to carry on the regulated activity in the United Kingdom;

(b)the person is given permission under Part 4A of this Act in respect of the regulated activity;

(c)the regulated activity ceases to be an approved activity;

(d)the person obtains (as appropriate)—

(i)a new Schedule 2A permission to carry on the activity referred to in paragraph 64(1), or

(ii)a new permission from the Gibraltar regulator to carry on the activity referred to in paragraph 65(1).

(3)If the appropriate UK regulator specifies a date for the purposes of sub-paragraph (1)(b), it may vary the date but only by specifying a later date.

(4)In sub-paragraph (2), references to “the regulated activity” are references (as appropriate) to—

(a)the regulated activity in respect of which the Gibraltar-based person is treated as having a Schedule 2A permission by virtue of paragraph 64, or

(b)the regulated activity corresponding to the activity in respect of which the Gibraltar-based person is treated as having permission from the Gibraltar regulator by virtue of paragraph 65.

(5)For the purposes of sub-paragraph (2)(c), a regulated activity does not cease to be an approved activity while it is treated as approved in relation to the Gibraltar-based person under Part 9 of this Schedule (with or without the restrictions under that Part).

End of transition: procedureU.K.

69(1)If a UK regulator proposes to specify or vary a date in relation to a person under paragraph 68(1)(b) or (3), it must give the person a warning notice.U.K.

(2)If a UK regulator decides to specify or vary a date in relation to a person under paragraph 68(1)(b) or (3), it must give the person a decision notice.

Right to refer matters to the TribunalU.K.

70U.K.If a UK regulator gives a Gibraltar-based person a decision notice under paragraph 69, the person may refer the matter to the Tribunal.

PART 11U.K.Policy statements

Policy statementsU.K.

71(1)Each UK regulator must prepare and issue a statement of its policy with respect to—U.K.

(a)its powers to vary or cancel a Schedule 2A permission under Part 4 or 5 of this Schedule other than on a notification by the Gibraltar regulator,

(b)its powers to impose, vary or cancel requirements under Part 6 of this Schedule, other than on a notification by the Gibraltar regulator, and

(c)its power to give directions under Part 7 of this Schedule.

(2)Where a UK regulator has issued a statement under sub-paragraph (1), it may prepare and issue a revised statement.

(3)In exercising a power described in sub-paragraph (1), a UK regulator must have regard to any relevant statement of policy issued under this paragraph and in force at the time.

Policy statements: procedureU.K.

72(1)Before issuing a statement under paragraph 71(1) or (2), a UK regulator must—U.K.

(a)publish a draft of the proposed statement in the way appearing to it to be best calculated to bring it to the attention of the public,

(b)publish a notice stating that representations may be made to the UK regulator within the period specified in the notice, and

(c)have regard to any representations made to it in accordance with the notice.

(2)If the UK regulator issues the proposed statement, it must publish—

(a)the statement, and

(b)an account in general terms of—

(i)the representations made to it in accordance with the notice, and

(ii)its response to them.

(3)If the statement issued differs from the draft published under sub-paragraph (1) in a way which, in the opinion of the UK regulator, is significant, the UK regulator must publish details of the differences (as well as complying with sub-paragraph (2)).

(4)A UK regulator—

(a)must give a copy of a statement issued under paragraph 71(1) or (2) to the Treasury before publishing it, and

(b)may charge a reasonable fee for providing a person with a copy of such a statement or a draft statement published under this paragraph.

(5)Anything published by a UK regulator under this paragraph must be published in the way appearing to the UK regulator to be best calculated to bring it to the attention of the public.

PART 12U.K.Consultation etc by UK regulators

FCA's duties to consult the PRAU.K.

73(1)The FCA must consult the PRA before—U.K.

(a)rejecting a notification under paragraph 19 in a case in which the person with responsibility for managing an aspect of the Gibraltar-based person's affairs is prohibited by an order under section 56 from performing a function in relation to an activity carried on by a PRA-authorised person, or

(b)rejecting a notification under paragraph 20 in a case in which a relevant access right that was lost related to a PRA-regulated activity.

(2)The FCA must consult the PRA before doing any of the following in a case in which the Gibraltar-based person is a PRA-authorised person or a member of a group that includes a PRA-authorised person—

(a)rejecting a notification under paragraph 26(5);

(b)varying a Schedule 2A permission under paragraph 27;

(c)rejecting a notification under paragraph 36(4);

(d)cancelling a Schedule 2A permission under paragraph 37(1);

(e)imposing a requirement under paragraph 41(3);

(f)rejecting a notification under paragraph 48(4);

(g)imposing, varying or cancelling a requirement under paragraph 49(2).

FCA's duties to obtain consent from the PRAU.K.

74(1)The FCA must obtain the PRA's consent before exercising its power under paragraph 27 in relation to a PRA-authorised person so as to—U.K.

(a)add an activity to those to which the person's Schedule 2A permission relates, or

(b)widen the description of an activity to which the person's Schedule 2A permission relates.

(2)Sub-paragraph (1) does not apply in relation to the regulated activity specified in article 63S of the Financial Services and Markets 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (administering a benchmark).

(3)Consent given by the PRA for the purposes of this paragraph may be conditional on the way in which the FCA exercises its power.

FCA's duties to inform the PRAU.K.

75(1)The FCA must inform the PRA in writing without delay after rejecting a notification under—U.K.

(a)paragraph 18(2) or (3), 19 or 20;

(b)paragraph 26(4) or (5);

(c)paragraph 36(4);

(d)paragraph 48(4).

(2)The FCA must inform the PRA in writing without delay after imposing, varying or cancelling a requirement under paragraph 41(3) or 49(2).

PRA's duties to consult the FCAU.K.

76(1)The PRA must consult the FCA before—U.K.

(a)giving a confirmation notice under paragraph 16;

(b)rejecting a notification under paragraph 19 or 20;

(c)giving a confirmation notice under paragraph 25;

(d)rejecting a notification under paragraph 26(5);

(e)varying a Schedule 2A permission under paragraph 27;

(f)giving a confirmation notice under paragraph 35;

(g)rejecting a notification under paragraph 36(5);

(h)cancelling a Schedule 2A permission under paragraph 37(2);

(i)imposing a requirement under paragraph 41(4);

(j)giving a confirmation notice under paragraph 47;

(k)rejecting a notification under paragraph 48(5);

(l)imposing, varying or cancelling a requirement under paragraph 49(3);

(m)giving a notice under paragraph 60;

(n)giving a direction under paragraph 61;

(o)giving a direction under paragraph 67.

(2)The PRA must—

(a)consult the FCA before publishing a draft statement under paragraph 72, and

(b)if the final version of the statement is to differ from the draft in a way which, in the opinion of the PRA, is significant, consult the FCA again before issuing it.

PRA's duty to obtain consent from the FCAU.K.

77(1)The PRA must obtain the FCA's consent before exercising its power under paragraph 27 so as to—U.K.

(a)add an activity to those to which a Schedule 2A permission relates, or

(b)widen the description of an activity to which a Schedule 2A permission relates.

(2)Consent given by the FCA for the purposes of this paragraph may be conditional on the way in which the PRA exercises its power.

PRA's duties to inform the FCAU.K.

78(1)When the PRA receives a notification for the purposes of a provision listed in the first column of the following table, it must give a copy to the FCA without delay, except where it rejects the notification under the provision listed in the second column (notification incomplete)—U.K.

Notification for the purposes ofRejection under
paragraph 12paragraph 18(1)
paragraph 22paragraph 26(3)
paragraph 32paragraph 36(3)
paragraph 44paragraph 48(3).

(2)The PRA must inform the FCA in writing without delay after rejecting a notification under—

(a)paragraph 18(2) or (3), 19 or 20;

(b)paragraph 26(4) or (5);

(c)paragraph 36(5);

(d)paragraph 48(5).

(3)The PRA must inform the FCA in writing without delay after imposing, varying or cancelling a requirement under paragraph 41(4) or 49(3).

UK regulators' duties to inform the Gibraltar regulatorU.K.

79(1)A UK regulator must inform the Gibraltar regulator in writing before giving a confirmation notice under—U.K.

(a)paragraph 16,

(b)paragraph 25,

(c)paragraph 35, or

(d)paragraph 47.

(2)A UK regulator must inform the Gibraltar regulator in writing without delay after—

(a)varying a Schedule 2A permission under paragraph 27,

(b)cancelling a Schedule 2A permission under paragraph 37,

(c)imposing a requirement under paragraph 41, or

(d)imposing, varying or cancelling a requirement under paragraph 49.

PART 13U.K.Co-operation and Assistance

Duties to co-operateU.K.

80(1)Each of the FCA, the PRA and the scheme manager must take such steps as they consider appropriate, for the purposes in sub-paragraph (2), to co-operate—U.K.

(a)with each other and the Treasury (“the UK entities”), and

(b)with the government of Gibraltar and the Gibraltar regulator (“the Gibraltar entities”).

(2)Those purposes are—

(a)to secure that they, and the Treasury, are able to perform their functions under this Schedule and section 32A, and

(b)to secure that, so far as is reasonably possible, there is co-operation between the UK entities and the Gibraltar entities which the Treasury, having regard to the objectives in paragraph 7(1), consider adequate.

(3)For the purposes of sub-paragraph (2), the FCA, the PRA and the scheme manager must, among other things, have regard to—

(a)the memoranda and arrangements described in paragraph 9(4)(a) to (d),

(b)reports laid before Parliament by the Treasury under section 32A, and

(c)any guidance published by the Treasury.

(4)Each of the FCA, the PRA and the scheme manager must ensure that one or more memoranda describing how it intends to comply with sub-paragraph (1) are prepared and maintained.

(5)The steps taken for the purposes of sub-paragraph (1) may include arrangements for the sharing of information which the FCA, the PRA or the scheme manager is not prevented from disclosing.

(6)When carrying out functions under this Schedule, the FCA and the PRA must, among other things, have regard to any relevant arrangements in force at the time for co-operation between the UK entities or for co-operation between those entities and the Gibraltar entities.

Publication and review of arrangements for co-operationU.K.

81(1)Each of the FCA, the PRA and the scheme manager must—U.K.

(a)ensure that a copy of each memorandum describing how it intends to comply with paragraph 80(1), and of any other document recording arrangements that it enters into for the purpose of complying with paragraph 80(1), is given to the Treasury (unless the Treasury also entered into the arrangement),

(b)ensure that each memorandum is published in the way appearing to it to be best calculated to bring it to the attention of the public, and

(c)review the memoranda that it has in place for the purpose of complying with paragraph 80(1) at least once in each of the reporting periods described in section 32A.

(2)Where the Treasury enter into arrangements with the FCA, the PRA, the scheme manager, the government of Gibraltar or the Gibraltar regulator for a purpose described in paragraph 80(2), they must—

(a)ensure that any memorandum recording the arrangements is published in the way appearing to the Treasury to be best calculated to bring it to the attention of the public, and

(b)review the memoranda that the Treasury have in place for a purpose described in paragraph 80(2) at least once in each of the reporting periods described in section 32A.

(3)The Treasury must lay before Parliament a copy of any memorandum—

(a)given to them under sub-paragraph (1), or

(b)published in accordance with sub-paragraph (2)(a).

Provision of reports to assist the TreasuryU.K.

82(1)A UK regulator or the scheme manager must, on a request from the Treasury, prepare and send to the Treasury a report on a matter specified in the request.U.K.