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Financial Services Act 2012

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Financial Services Act 2012. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Summary and Background

    1. Background

    2. Summary

  3. Overview of Structure of the Act

  4. Territorial Extent and Application

  5. Commentary

    1. Part 1 – Bank of England

      1. Section 1: Deputy Governors

      2. Section 2: The Bank’s financial stability objective

      3. Section 3: Oversight Committee

      4. Section 4 and Schedule 1: Financial stability strategy and Financial Policy Committee, and other amendments of Bank of England Act 1998

      5. Section 5 and Schedule 2: Further amendments relating to Bank of England

    2. Part 2 - Amendments of Financial Services and Markets Act 2000

      1. Financial Conduct Authority and Prudential Regulation Authority

        1. Section 6 and Schedule 3: The new Regulators

          1. The FCA

          2. The PRA

          3. Further provisions relating to the FCA and the PRA

      2. Regulated activities

        1. Section 7: Extension of scope of regulation

        2. Section 8: Orders under section 22 of FSMA 2000

        3. Section 9: Designation of activities requiring prudential regulation by PRA

      3. Appointed representatives

        1. Section 10: Permission to carry on regulated activities

      4. Permission to carry on regulated activities

        1. Section 11: Permission to carry on regulated activities

      5. Passporting

        1. Section 12 and Schedule 4: Passporting: exercise of EEA rights and Treaty rights

      6. Performance of regulated activities

        1. Section 13: Prohibition orders

        2. Section 14: Approval for particular arrangements

        3. Section 15 and Schedule 5: Further amendments relating to performance of regulated activities

      7. Official listing

        1. Section 16: FCA to exercise functions under Part 6 of FSMA

        2. Section 17: Discontinuance or suspension at the request of the issuer: procedure

        3. Section 18: Listing rules: disciplinary powers in relation to sponsors

        4. Section 19: Primary information providers

        5. Section 20: Penalties for breach of Part 6 rules

        6. Section 21: Repeal of competition scrutiny power

      8. Control of business transfers

        1. Section 22 and Schedule 6: Control of business transfers

      9. Hearings and appeals

        1. Section 23: Proceedings before Tribunal

      10. Rules and guidance

        1. Section 24: Rules and guidance

      11. Short selling

        1. Section 25: functions related to short selling

      12. Control over authorised persons

        1. Section 26: Control over authorised persons

        2. Section 27: Powers of regulators in relation to parent undertakings

      13. Recognised investment exchanges and clearing houses

        1. Section 28: Exemption for recognised investment exchanges and recognised clearing houses

        2. Section 29 and Schedule 7: Powers in relation to recognised investment exchanges and clearing houses

        3. Section 30: Recognition requirements: power of FCA and Bank to make rules

        4. Section 31: additional power to direct UK clearing houses

        5. Section 32: Recognised bodies: procedure for giving directions under s.296 etc

        6. Section 33: Power to take disciplinary measures against recognised bodies

        7. Section 34: Repeal of special competition regime

        8. Section 35 and Schedule 8: Sections 28 to 34: minor and consequential amendments

      14. Suspension and removal of financial instruments from trading

        1. Section 36: Suspension and removal of financial instruments from trading

      15. Discipline and enforcement

        1. Section 37 and Schedule 9: Discipline and enforcement

      16. Financial Services Compensation Scheme

        1. Section 38 and Schedule 10: The Financial Services Compensation Scheme

      17. Financial ombudsman service

        1. Section 39 and Schedule 11: The financial ombudsman service

      18. Lloyd’s

        1. Section 40: Lloyd’s

      19. Information

        1. Section 41 and Schedule 12: Information, investigations, disclosure etc.

      20. Auditors and actuaries

        1. Section 42 and Schedule 13: Auditors and actuaries

      21. Consumer protection and competition

        1. Section 43: Provision about consumer protection and competition

      22. Insolvency

        1. Section 44 and Schedule 14: Insolvency

      23. Miscellaneous amendments of FSMA 2000

        1. Section 45 and Schedule 15: The consumer financial education body

        2. Section 46 and Schedule 16: Members of the professions

        3. Section 47: International obligations

        4. Section 48: Interpretation of FSMA 2000

        5. Section 49: Parliamentary control of statutory instruments

    3. Part 3 – Mutual Societies

      1. Section 50: Mutual societies: power to transfer functions

      2. Section 51: Further provision that may be included in orders under section 50

      3. Section 52: power to apply or disapply provision made by or under FSMA 2000

      4. Section 53: Evidence

      5. Section 54: Repeals in Part 21 of FSMA 2000

      6. Building societies: miscellaneous

        1. Section 55: Building societies: creation of floating charges

        2. Section 56: Power to direct transfer of building society’s business

    4. Part 4 – Collaboration between Treasury and Bank of England, Fca Or Pra

      1. Section 58: Duty of Bank to notify Treasury of possible need for public funds

      2. Section 59: Duty of Bank to notify Treasury of changes

      3. Section 60: Circumstances in which Treasury power of direction exercisable

      4. Section 61: Treasury power of direction

      5. Section 62: Directions under section 61: supplementary provisions

      6. Section 63: Duty to lay direction etc before Parliament

      7. Section 64: Duty of Treasury, Bank and PRA to coordinate discharge of functions

      8. Section 65: Memorandum of understanding: crisis management

      9. Section 66: Memorandum of understanding: international organisations

      10. Section 67: Interpretation of Part 4

    5. Part 5 – Inquiries and Investigations

      1. Inquiries

        1. Section 68: Cases in which Treasury may arrange independent inquiries

        2. Section 69: Power to appoint person to hold an inquiry

        3. Section 70: Powers of appointed person and procedure

        4. Section 71: Conclusion of inquiry

        5. Section 72: Obstruction and contempt

      2. Investigations

        1. Section 73: Duty of FCA to investigate and report on possible regulatory failure

        2. Section 74: Duty of PRA to investigate and report on possible regulatory failure

        3. Section 75: Interpretation of section 74

        4. Section 76: Modification of section 74 in relation to Lloyd’s

        5. Section 77: Power of Treasury to require FCA or PRA to undertake investigation

        6. Section 78: Conduct of investigation

        7. Section 79: Conclusion of investigation

        8. Section 80: Statements of policy

        9. Section 81: publication of directions

      3. Publication of Reports

        1. Section 82: publication of reports of inquiries and investigations

      4. Supplementary

        1. Section 83: Interpretation and supplementary provision

    6. Part 6 – Investigation of Complaints Against Regulators

      1. Sections 84 to 86: Arrangements for the investigation of complaints

      2. Section 87: Investigation of complaints

      3. Section 88: Exemption from liability in damages

    7. Part 7 – Offences Relating to Financial Services

      1. Section 89: misleading statements

      2. Section 90: misleading impressions

      3. Section 91: misleading statements etc in relation to benchmarks

      4. Section 92: penalties

      5. Section 93: interpretation of Part 7

      6. Section 94: affirmative procedure for certain orders

      7. Section 95: consequential repeal

    8. Part 8 – Amendments of Banking Act 2009

      1. Special resolution regime and bank administration

        1. Section 96: objectives and conditions

        2. Section 97: Private sector purchasers

        3. Section 98: Property transfer instruments: property held on trust

        4. Section 99: Reports following exercise of a stabilisation power

        5. Section 100: groups

        6. Section 101: application to investment firms

        7. Section 102: application to UK clearing houses

        8. Section 103: State aid

      2. Inter-bank payment systems

        1. Section 104: Inter-bank payment systems

        2. Section 105: International obligations

      3. Further amendments

        1. Section 106 and Schedule 17: Amendments relating to new regulators

    9. Part 9 – Miscellaneous

      1. Consumer credit

        1. Section 107: Power to make further provision about regulation of consumer credit

        2. Section 108: suspension of licences under Part 3 of Consumer Credit Act 1974

      2. Penalties received by Financial Services Authority or Bank of England

        1. Section 109: payment to Treasury of penalties received by Financial Services Authority

        2. Section 110: payment to Treasury of penalties received by Bank of England

      3. Amendments of the Companies Act 1989

        1. Section 111: Amendments of the Companies Act 1989

      4. Settlement systems

        1. Section 112: Evidencing and transfer of title to securities without written instrument

      5. Director of Savings

        1. Section 113: Provision of services by Director of Savings

    10. Part 10 - General

      1. Further amendments and repeals

        1. Section 114 and Schedules 18 and 19: Further minor and consequential amendments and repeals

      2. Orders

        1. Section 115: Orders: general

        2. Section 116: Orders: Parliamentary control

      3. Interpretation

        1. Section 117: Interpretation

      4. Consequential and transitional provisions

        1. Section 118: Power to make further consequential amendments etc.

        2. Section 119 and Schedules 20 and 21: Transitional provisions and savings

      5. Final provisions

        1. Section 120: Financial provision

        2. Section 121: Extent

        3. Section 122: Commencement

        4. Section 123: Short title

  6. Commencement

  7. Hansard References

  8. Glossary of Terms and Expressions

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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