http://www.legislation.gov.uk/ukpga/2012/21/section/26/2018-10-26Financial Services Act 2012An Act to amend the Bank of England Act 1998, the Financial Services and Markets Act 2000 and the Banking Act 2009; to make other provision about financial services and markets; to make provision about the exercise of certain statutory functions relating to building societies, friendly societies and other mutual societies; to amend section 785 of the Companies Act 2006; to make provision enabling the Director of Savings to provide services to other public bodies; and for connected purposes.texttext/xmlenStatute Law Database2026-08-12Expert Participation2018-10-26 Financial Services Act 2012ActWater Act 2014s. 79(4)s. 94(3)Financial Services Act 2012ActWater Act 2014s. 81(10)s. 94(3) PART 2 261FSMA 2000 is amended as follows.2In every provision of Part 12 (control over authorised persons), for “Authority” or “Authority's”, in each place (where not expressly amended by the following provisions), substitute “ appropriate regulator ” or “appropriate regulator's”.3In section 178 (obligation to notify an acquisition of control), after subsection (2) insert—2AIn this Part, “the appropriate regulator” means—awhere the UK authorised person is a PRA-authorised person, the PRA;bin any other case, the FCA.4In section 179 (requirements for section 178 notices) in subsection (2), for “The Authority” substitute “ Each regulator ”.5In section 187 (approval with conditions), for subsection (2) substitute—2The appropriate regulator may only impose conditions where—aif it did not impose those conditions, it would propose to object to the acquisition, orbit is required to do so by a direction under section 187A(3)(b) or section 187B(3).6After section 187 insert—187A1The PRA must consult the FCA before acting under section 185.2The FCA may make representations to the PRA in relation to any of the matters set out in sections 185(2) and 186.3If the FCA considers that on the basis of the matters set out in section 186(f) there are reasonable grounds to object to the acquisition, the FCA may—adirect the PRA to object to the acquisition, orbdirect the PRA not to approve the acquisition unless it does so subject to conditions specified in the direction (with or without other conditions).4Before giving a direction under subsection (3), the FCA must notify the PRA of its proposal to do so.5In order to comply with the obligation under subsection (1), the PRA must provide the FCA with—acopies of—ithe section 178 notice, andiiany document included with that notice,bany further information provided pursuant to section 190, andcany other information in the possession of the PRA which—iin the opinion of the PRA, is relevant to the application, oriiis reasonably requested by the FCA.6If the PRA acts under section 185(1)(b), it must indicate to the section 178 notice-giver any representations or directions received from the FCA.7Directions given by the FCA under this section are subject to any directions given to the FCA under section 3I or 3J.187B1The FCA must consult the PRA before acting under section 185 if—athe UK authorised person to which the section 178 notice relates has as a member of its immediate group a PRA-authorised person, orbthe section 178 notice-giver is a PRA-authorised person.2The PRA may make representations to the FCA in relation to any of the matters set out in sections 185(2) and 186.3If the PRA considers that on the basis of relevant matters there are reasonable grounds to object to the acquisition, the PRA may direct the FCA not to approve the acquisition unless it does so subject to conditions specified in the direction (with or without other conditions).4In subsection (3) “relevant matters”—ameans the matters in paragraphs (d) and (e)(i) of section 186, andbin a case falling within subsection (1)(b) of this section, also includes the matter in paragraph (c) of section 186.5In order to comply with the obligation under subsection (1), the FCA must provide the PRA with—acopies of—ithe section 178 notice, andiiany document included with that notice,bany further information provided pursuant to section 190, andcany other information in the possession of the FCA which—iin the opinion of the FCA, is relevant to the application, oriiis reasonably requested by the PRA.6If the FCA acts under section 185(1)(b), it must indicate to the section 178 notice-giver any representations or directions received from the PRA.187C1Where the PRA has imposed conditions required by a direction given by the FCA under section 187A(3)—athe FCA may direct the PRA to exercise its power under section 187(4) to vary or cancel any of those conditions;bthe PRA must consult the FCA before it exercises that power in relation to those conditions otherwise than in accordance with a direction under paragraph (a).2Where the FCA has imposed conditions required by a direction given by the PRA under section 187B(3)—athe PRA may direct the FCA to exercise its power under section 187(4) to vary or cancel any of those conditions;bthe FCA must consult the PRA before it exercises that power in relation to those conditions otherwise than in accordance with a direction under paragraph (a).7In section 191A (objection to control), after subsection (4) insert—4AWhere the appropriate regulator is the PRA, it must consult the FCA before giving a warning notice under this section.4BWhere the appropriate regulator is the FCA, it must consult the PRA before giving a warning notice under this section if—athe UK authorised person has as a member of its immediate group a PRA-authorised person, orbthe person to whom the warning notice is to be given is a PRA-authorised person.8In section 191B (restriction notices), after subsection (2) insert—2AWhere the appropriate regulator is the PRA, it must consult the FCA before giving a restriction notice under this section.2BWhere the appropriate regulator is the FCA, it must consult the PRA before giving a restriction notice under this section if—athe UK authorised person has as a member of its immediate group a PRA-authorised person, orbthe person to whom the restriction notice is to be given is a PRA-authorised person.9In section 191C (orders for the sale of shares), after subsection (2) insert—2AWhere the appropriate regulator is the PRA, it must consult the FCA before making an application to the court under this section.2BWhere the appropriate regulator is the FCA, it must consult the PRA before making an application to the court under this section if—athe UK authorised person has as a member of its immediate group a PRA-authorised person, orbthe person holding the shares or voting power is a PRA-authorised person.10In section 191D (obligation to notify of disposition of control), after subsection (1) insert—1AThe PRA must give the FCA a copy of any notice it receives under this section.1BThe FCA must give the PRA a copy of any notice it receives under this section which—arelates to a UK authorised person who has as a member of its immediate group a PRA-authorised person, orbis given by a PRA-authorised person.11In section 191E (requirements for notices under section 191D), in subsection (2), for “The Authority” substitute “ Each regulator ”.12In section 191G (interpretation), in subsection (1), after the definition of “acquisition” insert—“the appropriate regulator” is to be read in accordance with section 178(2A);.S. 26 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.