Part XIII Incoming Firms: Intervention by FCA or PRA

Interpretation

195 Exercise of power in support of overseas regulator.

(1)

The F1appropriate regulator may exercise its power of intervention in respect of an incoming firm at the request of, or for the purpose of assisting, an overseas regulator.

(2)

Subsection (1) applies whether or not the F2appropriate regulator's power of intervention is also exercisable as a result of section 194.

F3(2A)

“The appropriate regulator” means—

(a)

where the incoming firm is a PRA-authorised person, the FCA or the PRA;

(b)

in any other case, the FCA.

(3)

“An overseas regulator” means an authority in a country or territory outside the United Kingdom—

(a)

which is a home state regulator; or

(b)

which exercises any function of a kind mentioned in subsection (4).

(4)

The functions are—

(a)

a function corresponding to any function of F4either regulator under this Act;

F5(b)

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

(c)

a function corresponding to any function exercised by the Secretary of State under F6the Companies Acts (as defined in section 2 of the Companies Act 2006);

(d)

a function in connection with —

(i)

the investigation of conduct of the kind prohibited by Part V of the M1Criminal Justice Act 1993 (insider dealing); or

(ii)

the enforcement of rules (whether or not having the force of law) relating to such conduct;

(e)

a function prescribed by regulations made for the purposes of this subsection which, in the opinion of the Treasury, relates to companies or financial services.

(5)

If—

(a)

a request to the F7appropriate regulator for the exercise of its power of intervention has been made by a home state regulator in pursuance of F8an EU obligation, or

(b)

a home state regulator has notified the F7appropriate regulator that an EEA firm’s EEA authorisation has been withdrawn,

the F7appropriate regulator must, in deciding whether or not to exercise its power of intervention, consider whether exercising it is necessary in order to comply with F8an EU obligation.

(6)

In deciding in any case in which the F7appropriate regulator does not consider that the exercise of its power of intervention is necessary in order to comply with F8an EU obligation, it may take into account in particular—

(a)

whether in the country or territory of the overseas regulator concerned, corresponding assistance would be given to a United Kingdom regulatory authority;

(b)

whether the case concerns the breach of a law, or other requirement, which has no close parallel in the United Kingdom or involves the assertion of a jurisdiction not recognised by the United Kingdom;

(c)

the seriousness of the case and its importance to persons in the United Kingdom;

(d)

whether it is otherwise appropriate in the public interest to give the assistance sought.

(7)

The F7appropriate regulator may decide not to exercise its power of intervention, in response to a request, unless the regulator concerned undertakes to make such contribution to the cost of its exercise as the F7appropriate regulator considers appropriate.

(8)

Subsection (7) does not apply if the F7appropriate regulator decides that it is necessary for it to exercise its power of intervention in order to comply with F8an EU obligation.