PART 5

Exceptions and licences

Finance: exceptions from prohibitions
18
1
The prohibition in regulation 11 (asset-freeze in relation to designated persons) is not contravened by an independent person (“P”) transferring to another person a legal or equitable interest in funds or economic resources where, immediately before the transfer, the interest—
a
is held by P, and
b
is not held jointly with the designated person.
2
In paragraph (1) “independent person” means a person who—
a
is not the designated person, and
b
is not owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.
3
The prohibitions in regulations 11 to 13 (asset-freeze in relation to, and making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account with interest or other earnings due on the account.
4
The prohibitions in regulations 12 and 13 (making funds available to, or for the benefit of, designated persons) are not contravened by a relevant institution crediting a frozen account where it receives funds transferred to that institution for crediting to that account.
5
The prohibitions in regulations 12 and 13 are not contravened by the transfer of funds to a relevant institution for crediting to an account held or controlled (directly or indirectly) by a designated person, where those funds are transferred in discharge (or partial discharge) of an obligation which arose before the date on which the person became a designated person.
6
The prohibitions in regulations 11 to 13 are not contravened in relation to a designated person (“P”) by a transfer of funds from account A to account B, where—
a
account A is with a relevant institution which carries on an excluded activity within the meaning of section 142D of the Financial Services and Markets Act 2000 ,
b
account B is with a ring-fenced body within the meaning of section 142A of the Financial Services and Markets Act 2000 , and
c
accounts A and B are held or controlled (directly or indirectly) by P.
7
In this regulation—
- “designated person” has the same meaning as it has in Part 3 (Finance);
- “frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person;
- “relevant institution” means a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (Permission to carry on regulated activities).
8
The definition of “relevant institution” in paragraph (7) is to be read with section 22 of the Financial Services and Markets Act 2000 , any relevant order under that section and Schedule 2 to that Act .
9
For the purposes of paragraphs (1)(b), (5) and (6) and the definition of “frozen account” in paragraph (7), references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.
10
When determining for the purposes of paragraph (5) when a person (“
C
”) who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (“
D
”) became a designated person, C is to be treated as having become a designated person at the same time as D.

Finance: exception for authorised conduct in a relevant country
19
1
Where a person's conduct in a relevant country would, in the absence of this regulation, contravene a prohibition in any of regulations 11 to 15 (asset-freeze etc.) (“the relevant prohibition”), the relevant prohibition is not contravened if the conduct is authorised by a licence or other authorisation which is issued—
a
under the law of the relevant country; and
b
for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.
2
In this regulation, “relevant country” means—
a
any of the Channel Islands;
b
the Isle of Man;
c
any British overseas territory.

Finance: exception from prohibitions for required payments
19A
1
This regulation applies to required payments within the meaning of paragraph (2).
2
A required payment is a payment which—
a
a designated person is required to make under or by virtue of any enactment to—
i
the registrar of companies,
ii
the Commissioners for His Majesty's Revenue and Customs,
iii
the Welsh Revenue Authority,
iv
Revenue Scotland,
v
the Financial Conduct Authority,
vi
the Secretary of State,
vii
the Welsh Ministers,
viii
the Department of Finance in Northern Ireland, or
ix
a local authority, and
b
is not an excluded payment.
3
The prohibitions in regulations 11 (asset-freeze in relation to designated persons) and 13 (making funds available for benefit of designated persons) are not contravened by a person making a required payment.
4
Where a required payment is made by a person other than a designated person, the prohibition in regulation 11 is not contravened by the designated person making a reimbursement payment to that person.
5
The reference in paragraph (3) to a person making a required payment includes a designated person, but only where they are making a required payment on their own behalf.
6
The following payments are to be treated as payments which a designated person is required to make under or by virtue of an enactment for the purposes of this regulation, where made by a designated person on their own behalf or by a person, other than a designated person, on behalf of a designated person—
a
a payment to the Financial Conduct Authority of a levy imposed by the scheme manager of the Financial Services Compensation Scheme by virtue of section 213 of the Financial Services and Markets Act 2000 (the compensation scheme);
b
a payment to the Financial Conduct Authority which is collected by that Authority on behalf of the Financial Reporting Council Limited.
7
For the purposes of this regulation, references to a designated person are to be read as including a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.
8
In this regulation—
- “
BID levy
” means a levy that is imposed on those persons who are, in respect of particular business improvement district proposals, entitled to vote in accordance with section 39(3) of the Planning etc. (Scotland) Act 2006;
- “
business improvement district
” has the meaning given in section 33 of the Planning etc. (Scotland) Act 2006;
- “
designated person
” has the same meaning as it has in Part 3 (Finance);
- “
enactment
” has the meaning given in section 54(6) of the Act;
- “
excluded payment
” means, in relation to—
  1. the registrar of companies, a payment of fees for—
    1. the incorporation of a firm;
    2. the restoration of a firm to a register which is administered by the registrar;
  2. the Financial Conduct Authority, a payment of fees for—
    1. an application for permission from, authorisation by, registration with or recognition from the Financial Conduct Authority which relates to the carrying on of any activity falling within any function of the Financial Conduct Authority;
    2. an application for a variation of such permission, authorisation, registration or recognition;
    3. an application for listing or for eligibility for listing;
    4. an application for review or approval of a document relating to listing;
    5. an application for approval as a sponsor or primary information provider;
    6. an application for review or approval of—
      1. a document under the prospectus rules or the prospectus regulation;
      2. listing particulars under section 79 of the Financial Services and Markets Act 2000 or supplementary listing particulars under section 81 of that Act;
  3. the Secretary of State or the Welsh Ministers, a payment that a designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of Part 3 of the Local Government Finance Act 1988;
  4. the Department of Finance in Northern Ireland, a payment that a designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of Part 2 of the Rates (Northern Ireland) Order 1977;
  5. a local authority, a payment that a designated person is required to make under or by virtue of an enactment other than a payment under or by virtue of—
    1. Part 1 of the Local Government (Scotland) Act 1975;
    2. Part 3 of the Local Government Finance Act 1988;
    3. Parts 1 and 2 of the Local Government Finance Act 1992;
    4. Part 4 of the Local Government Act 2003;
    5. Part 9 of the Planning etc. (Scotland) Act 2006;
    6. the Business Rate Supplements Act 2009;
    7. the Business Improvement Districts Act (Northern Ireland) 2013;
- “
firm
” has the meaning given in section 1173(1) of the Companies Act 2006;
- “
listing
” means being included in the official list maintained by the Financial Conduct Authority in accordance with Part 6 of the Financial Services and Markets Act 2000;
- “
local authority
” means—
  1. in relation to England—
    1. a district council;
    2. a county council for any area for which there is no district council;
    3. a London borough council;
    4. the Common Council of the City of London in its capacity as a local authority;
    5. the Council of the Isles of Scilly;
  2. in relation to Wales, a county council or a county borough council;
  3. in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 or a person appointed by such a council for the purposes of the administration, collection and recovery of a BID levy;
  4. in relation to Northern Ireland, a district council;
- “
primary information provider
” has the meaning given in section 89P(2) of the Financial Services and Markets Act 2000;
- “
prospectus regulation
” means Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC;
- “
prospectus rules
” has the meaning given in section 73A(4) of the Financial Services and Markets Act 2000;
- “
registrar of companies
” has the meaning given in section 1060 of the Companies Act 2006 (the registrar);
- “
reimbursement payment
” means a repayment from the designated person to the person who made a required payment which is of the same amount as that required payment;
- “
scheme manager
” has the meaning given in section 212 of the Financial Services and Markets Act 2000;
- “
sponsor
” has the meaning given in section 88(2) of the Financial Services and Markets Act 2000.

Exception for acts done for purposes of national security or prevention of serious crime
20
1
Where an act would, in the absence of this paragraph, be prohibited by regulation 9(2) (confidentiality) or any prohibition in Part 3 (Finance), that prohibition does not apply to the act if the act is one which a responsible officer has determined would be in the interests of—
a
national security, or
b
the prevention or detection of serious crime in the United Kingdom or elsewhere.
2
Where, in the absence of this paragraph, a thing would be required to be done under or by virtue of a provision of Part 6 (Information and records), that requirement does not apply if a responsible officer has determined that not doing the thing in question would be in the interests of—
a
national security, or
b
the prevention or detection of serious crime in the United Kingdom or elsewhere.
3
In this regulation “responsible officer” means a person in the service of the Crown or holding office under the Crown, acting in the course of that person's duty.

Treasury licences
21
1
The prohibitions in regulations 11 to 15 (asset-freeze etc) do not apply to anything done under the authority of a licence issued by the Treasury under this paragraph.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
The Treasury may issue a licence which authorises acts by a particular person only where the Treasury consider that it is appropriate to issue the licence for a purpose set out in Schedule 2.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Director disqualification licences
21A
The Secretary of State may issue a licence in relation to any person who is designated under regulation 5 for the purposes of regulation 16A (director disqualification sanctions) providing that the prohibitions in—
a
section 11A(1) of the Company Directors Disqualification Act 1986, and
b
Article 15A(1) of the Company Directors Disqualification (Northern Ireland) Order 2002,
do not apply to anything done under the authority of that licence.

Licences: general provisions
21B
1
This regulation applies in relation to Treasury licences and director disqualification licences.
2
A licence must specify the acts authorised by it.
3
A licence may be general or may authorise acts by a particular person or persons of a particular description.
4
A licence may—
a
contain conditions;
b
be of indefinite duration or a defined duration.
5
A person who issues a licence may vary, revoke or suspend it at any time.
6
A person who
, on the application of a person (“P”),
issues
a licence which authorises acts by a particular person
, or varies, revokes or suspends that licence,
must give written notice to
P
of the issue, variation, revocation or suspension of the licence.
7
A person who issues, varies, revokes or suspends a general licence or a licence which authorises acts by persons of a particular description must take such steps as that person considers appropriate to publicise the issue, variation, revocation or suspension of the licence.

Finance: licensing offences
22
1
A person (“P”) commits an offence if P knowingly or recklessly—
a
provides information that is false in a material respect, or
b
provides or produces a document that is not what it purports to be,
for the purpose of obtaining a Treasury licence (whether for P or anyone else).
2
A person who purports to act under the authority of a Treasury licence but who fails to comply with any condition of the licence commits an offence.

Director disqualification: licensing offences
22A
1
A person (“
P
”) commits an offence if P knowingly or recklessly—
a
provides information that is false in a material respect, or
b
provides or produces a document that is not what it purports to be,
for the purpose of obtaining a director disqualification licence (whether for P or anyone else).
2
A person who purports to act under the authority of a director disqualification licence but who fails to comply with any condition of the licence commits an offence.
3
A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

Section 8B(1) to (3) of the Immigration Act 1971: directions
23
1
The Secretary of State may direct that, in relation to any person within regulation 17 (immigration) whose name is specified, or who is of a specified description, section 8B(1) and (2) of the Immigration Act 1971, or section 8B(3) of that Act, have effect subject to specified exceptions.
2
A direction may contain conditions.
3
A direction must be of a defined duration (and that duration may be expressed in any way, including, for example, being expressed in a way such that the direction ceases to have effect on, or within a specified period after, the occurrence of a specified event).
4
The Secretary of State may vary, revoke or suspend a direction at any time.
5
On the issue, variation, revocation or suspension of a direction, the Secretary of State may take such steps as the Secretary of State considers appropriate to publicise the issue, variation, revocation or suspension of the direction.
6
In this regulation “specified” means specified in a direction.
2000 c.8. Section 142D was inserted by the Financial Services (Banking Reform) Act 2013 (c.33), section 4(1).
Section 142A was inserted by section 4(1) of the Financial Services (Banking Reform) Act 2013 (c.33), section 4(1).
Part 4A was inserted by the Financial Services Act 2012 (c. 21), section 11(2); and most recently amended by S.I. 2019/632.
Section 22 was amended by the Financial Guidance and Claims Act 2018 (c.10), section 27(4); the Financial Services Act 2012 (c.21), section 7(1); and S.I. 2018/135.
S.I. 2001/544, as most recently amended by S.I. 2018/1149; S.I. 2018/1403; S.I. 2019/632; S.I. 2019/660; S.I. 2019/679; S.I. 2019/710; S.I. 2019/1361; S.I. 2020/117; and S.I. 2020/480.
Schedule 2 was amended by the Regulation of Financial Services (Land Transactions) Act 2005 (c.24), section 1; the Dormant Bank and Building Society Accounts Act 2008 (c.31), section 15 and Schedule 2, paragraph 1; the Financial Services Act 2012 (c.21), sections 7(2) to (5) and 8; the Financial Guidance and Claims Act 2018 (c.10), section 27(13); and S.I. 2013/1881; S.I. 2018/135; and S.I. 2019/632.
Reg. 18 in force at 26.4.2021 at noon, see reg. 1(2)
Reg. 23 in force at 26.4.2021 at noon, see reg. 1(2)
Reg. 22 in force at 26.4.2021 at noon, see reg. 1(2)
Reg. 21 in force at 26.4.2021 at noon, see reg. 1(2)
Reg. 19 in force at 26.4.2021 at noon, see reg. 1(2)
Reg. 20 in force at 26.4.2021 at noon, see reg. 1(2)
Regs. 21A, 21B inserted (16.5.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (S.I. 2024/643), regs. 1(2), 15(6)
Reg. 22A inserted (16.5.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (S.I. 2024/643), regs. 1(2), 15(7)
Reg. 21(2) omitted (16.5.2024) by virtue of The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (S.I. 2024/643), regs. 1(2), 15(5)
Reg. 21(4) omitted (16.5.2024) by virtue of The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (S.I. 2024/643), regs. 1(2), 15(5)
Reg. 21(5) omitted (16.5.2024) by virtue of The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (S.I. 2024/643), regs. 1(2), 15(5)
Reg. 21(6) omitted (16.5.2024) by virtue of The Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024 (S.I. 2024/643), regs. 1(2), 15(5)
Reg. 19A inserted (5.12.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/1157), regs. 1(2), 32(5)
Reg. 18(9)(10) inserted (5.12.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/1157), regs. 1(2), 32(4)
Words in reg. 21B(6) inserted (5.12.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/1157), regs. 1(2), 32(6)(a)
Word in reg. 21B(6) substituted (5.12.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/1157), regs. 1(2), 32(6)(b)
Words in reg. 21B(6) inserted (5.12.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/1157), regs. 1(2), 32(6)(c)
Word in reg. 21B(6) substituted (5.12.2024) by The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/1157), regs. 1(2), 32(6)(d)