PART 9C

Prudential regulation of FCA investment firms

Rules

Duty to make rules applying to FCA investment firms
143C
1
In the exercise of its power to make general rules, the FCA must make rules applying to FCA investment firms which impose the following types of prudential requirements—
a
requirements relating to the types and amounts of capital and liquid assets that such firms must hold in order to manage the risks specified in or under subsection (2);
b
requirements relating to the management of risks arising from the strength or extent of such firms' relationships with, or direct exposure to, a single client or group of connected clients;
c
reporting requirements related to requirements described in paragraph (a) or (b);
d
public disclosure requirements related to requirements described in paragraph (a) or (b);
e
requirements in respect of governance arrangements related to the risks specified in or under subsection (2);
f
requirements in respect of remuneration policies and practices related to the risks specified in or under subsection (2).
2
The risks referred to in subsection (1)(a), (e) and (f) are—
a
the risks to consumers (as defined in section 1G) arising from FCA investment firms,
b
the risks to the integrity of the UK financial system arising from FCA investment firms,
c
the risks to which FCA investment firms are exposed, and
d
any other risks specified by the Treasury by regulations.
3
General rules made for the purpose of subsection (1) may, among other things—
a
impose requirements to be satisfied on an individual basis or on a consolidated basis;
b
impose requirements relating to the processes for consolidation;
c
make provision relating to transactions between an FCA investment firm and a member of its group, including provision requiring the disclosure of information;
d
provide for exceptions from requirements;
e
make provision by reference to the capital requirements regulation, to an instrument made under the capital requirements regulation or to Directive 2013/36/EU UK law, as amended from time to time.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 143C(4) omitted (1.1.2024) by virtue of The Financial Services and Markets Act 2023 (Consequential Amendments) Regulations 2023 (S.I. 2023/1410), regs. 1(2), 2(3)
S. 143C: power to amend conferred (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 67(1)(a), 86(3); S.I. 2023/779, reg. 4(ss)
Pt. 9C inserted (1.7.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 2 para. 1; S.I. 2021/671, reg. 4(b)