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Financial Services and Markets Act 2000 (c. 8)

(The document as of February, 2008)

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Financial Services and Markets Act 2000

2000 CHAPTER 8

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    The Regulator

    1. 1. The Financial Services Authority.

    2. The Authority's general duties

      1. 2. The Authority's general duties.

    3. The regulatory objectives

      1. 3. Market confidence.

      2. 4. Public awareness.

      3. 5. The protection of consumers.

      4. 6. The reduction of financial crime.

    4. Corporate governance

      1. 7. Duty of Authority to follow principles of good governance.

    5. Arrangements for consulting practitioners and consumers

      1. 8. The Authority's general duty to consult.

      2. 9. The Practitioner Panel.

      3. 10. The Consumer Panel.

      4. 11. Duty to consider representations by the Panels.

    6. Reviews

      1. 12. Reviews.

      2. 13. Right to obtain documents and information.

    7. Inquiries

      1. 14. Cases in which the Treasury may arrange independent inquiries.

      2. 15. Power to appoint person to hold an inquiry.

      3. 16. Powers of appointed person and procedure.

      4. 17. Conclusion of inquiry.

      5. 18. Obstruction and contempt.

  2. Part II

    Regulated And Prohibited Activities

    1. The general prohibition

      1. 19. The general prohibition.

    2. Requirement for permission

      1. 20. Authorised persons acting without permission.

    3. Financial promotion

      1. 21. Restrictions on financial promotion.

    4. Regulated activities

      1. 22. The classes of activity and categories of investment.

    5. Offences

      1. 23. Contravention of the general prohibition.

      2. 24. False claims to be authorised or exempt.

      3. 25. Contravention of section 21.

    6. Enforceability of agreements

      1. 26. Agreements made by unauthorised persons.

      2. 27. Agreements made through unauthorised persons.

      3. 28. Agreements made unenforceable by section 26 or 27.

      4. 29. Accepting deposits in breach of general prohibition.

      5. 30. Enforceability of agreements resulting from unlawful communications.

  3. Part III

    Authorisation and Exemption

    1. Authorisation

      1. 31. Authorised persons.

      2. 32. Partnerships and unincorporated associations.

    2. Ending of authorisation

      1. 33. Withdrawal of authorisation by the Authority.

      2. 34. EEA firms.

      3. 35. Treaty firms.

      4. 36. Persons authorised as a result of paragraph 1(1) of Schedule 5.

    3. Exercise of EEA rights by UK firms

      1. 37. Exercise of EEA rights by UK firms.

    4. Exemption

      1. 38. Exemption orders.

      2. 39. Exemption of appointed representatives.

  4. Part IV

    Permission to Carry on Regulated Activities

    1. Application for permission

      1. 40. Application for permission.

      2. 41. The threshold conditions.

    2. Permission

      1. 42. Giving permission.

      2. 43. Imposition of requirements.

    3. Variation and cancellation of Part IV permission

      1. 44. Variation etc. at request of authorised person.

      2. 45. Variation etc. on the Authority's own initiative.

      3. 46. Variation of permission on acquisition of control.

      4. 47. Exercise of power in support of overseas regulator.

      5. 48. Prohibitions and restrictions.

    4. Connected persons

      1. 49. Persons connected with an applicant.

    5. Additional permissions

      1. 50. Authority's duty to consider other permissions etc.

    6. Procedure

      1. 51. Applications under this Part.

      2. 52. Determination of applications.

      3. 53. Exercise of own-initiative power: procedure.

      4. 54. Cancellation of Part IV permission: procedure.

    7. References to the Tribunal

      1. 55. Right to refer matters to the Tribunal.

  5. Part V

    Performance of Regulated Activities

    1. Prohibition orders

      1. 56. Prohibition orders.

      2. 57. Prohibition orders: procedure and right to refer to Tribunal.

      3. 58. Applications relating to prohibitions: procedure and right to refer to Tribunal.

    2. Approval

      1. 59. Approval for particular arrangements.

      2. 60. Applications for approval.

      3. 61. Determination of applications.

      4. 62. Applications for approval: procedure and right to refer to Tribunal.

      5. 63. Withdrawal of approval.

    3. Conduct

      1. 64. Conduct: statements and codes.

      2. 65. Statements and codes: procedure.

      3. 66. Disciplinary powers.

      4. 67. Disciplinary measures: procedure and right to refer to Tribunal.

      5. 68. Publication.

      6. 69. Statement of policy.

      7. 70. Statements of policy: procedure.

    4. Breach of statutory duty

      1. 71. Actions for damages.

  6. Part VI

    Official Listing

    1. The competent authority

      1. 72. The competent authority.

      2. 73. General duty of the competent authority.

    2. The official list

      1. 74. The official list.

    3. Listing

      1. 75. Applications for listing.

      2. 76. Decision on application.

      3. 77. Discontinuance and suspension of listing.

      4. 78. Discontinuance or suspension: procedure.

    4. Listing particulars

      1. 79. Listing particulars and other documents.

      2. 80. General duty of disclosure in listing particulars.

      3. 81. Supplementary listing particulars.

      4. 82. Exemptions from disclosure.

      5. 83. Registration of listing particulars.

    5. Prospectuses

      1. 84. Prospectuses.

      2. 85. Publication of prospectus.

      3. 86. Application of this Part to prospectuses.

      4. 87. Approval of prospectus where no application for listing.

    6. Sponsors

      1. 88. Sponsors.

      2. 89. Public censure of sponsor.

    7. Compensation

      1. 90. Compensation for false or misleading particulars.

    8. Penalties

      1. 91. Penalties for breach of listing rules.

      2. 92. Procedure.

      3. 93. Statement of policy.

      4. 94. Statements of policy: procedure.

    9. Competition

      1. 95. Competition scrutiny.

    10. Miscellaneous

      1. 96. Obligations of issuers of listed securities.

      2. 97. Appointment by competent authority of persons to carry out investigations.

      3. 98. Advertisements etc. in connection with listing applications.

      4. 99. Fees.

      5. 100. Penalties.

      6. 101. Listing rules: general provisions.

      7. 102. Exemption from liability in damages.

      8. 103. Interpretation of this Part.

  7. Part VII

    Control of Business Transfers

    1. 104. Control of business transfers.

    2. 105. Insurance business transfer schemes.

    3. 106. Banking business transfer schemes.

    4. 107. Application for order sanctioning transfer scheme.

    5. 108. Requirements on applicants.

    6. 109. Scheme reports.

    7. 110. Right to participate in proceedings.

    8. 111. Sanction of the court for business transfer schemes.

    9. 112. Effect of order sanctioning business transfer scheme.

    10. 113. Appointment of actuary in relation to reduction of benefits.

    11. 114. Rights of certain policyholders.

    12. Business transfers outside the United Kingdom

      1. 115. Certificates for purposes of insurance business transfers overseas.

      2. 116. Effect of insurance business transfers authorised in other EEA States.

    13. Modifications

      1. 117. Power to modify this Part.

  8. Part VIII

    Penalties for Market Abuse

    1. Market abuse

      1. 118. Market abuse.

    2. The code

      1. 119. The Code.

      2. 120. Provisions included in the Authority's code by reference to the City Code.

      3. 121. Codes: procedure.

      4. 122. Effect of the code.

    3. Power to impose penalties

      1. 123. Power to impose penalties in cases of market abuse.

    4. Statement of policy

      1. 124. Statement of policy.

      2. 125. Statement of policy: procedure.

    5. Procedure

      1. 126. Warning notices.

      2. 127. Decision notices and right to refer to Tribunal.

    6. Miscellaneous

      1. 128. Suspension of investigations.

      2. 129. Power of court to impose penalty in cases of market abuse.

      3. 130. Guidance.

      4. 131. Effect on transactions.

  9. Part IX

    Hearings and Appeals

    1. 132. The Financial Services and Markets Tribunal.

    2. 133. Proceedings: general provision.

    3. Legal assistance before the Tribunal

      1. 134. Legal assistance scheme.

      2. 135. Provisions of the legal assistance scheme.

      3. 136. Funding of the legal assistance scheme.

    4. Appeals

      1. 137. Appeal on a point of law.

  10. Part X

    Rules and Guidance

    1. Chapter I

      Rule-making Powers

      1. 138. General rule-making power.

      2. 139. Miscellaneous ancillary matters.

      3. 140. Restriction on managers of authorised unit trust schemes.

      4. 141. Insurance business rules.

      5. 142. Insurance business: regulations supplementing Authority's rules.

      6. 143. Endorsement of codes etc.

      7. Specific rules

        1. 144. Price stabilising rules.

        2. 145. Financial promotion rules.

        3. 146. Money laundering rules.

        4. 147. Control of information rules.

      8. Modification or waiver

        1. 148. Modification or waiver of rules.

      9. Contravention of rules

        1. 149. Evidential provisions.

        2. 150. Actions for damages.

        3. 151. Limits on effect of contravening rules.

      10. Procedural provisions

        1. 152. Notification of rules to the Treasury.

        2. 153. Rule-making instruments.

        3. 154. Verification of rules.

        4. 155. Consultation.

        5. 156. General supplementary powers.

    2. Chapter II

      Guidance

      1. 157. Guidance.

      2. 158. Notification of guidance to the Treasury.

    3. Chapter III

      Competition Scrutiny

      1. 159. Interpretation.

      2. 160. Reports by Director General of Fair Trading.

      3. 161. Power of Director to request information.

      4. 162. Consideration by Competition Commission.

      5. 163. Role of the Treasury.

      6. 164. The Competition Act 1998.

  11. Part XI

    Information Gathering and Investigations

    1. Powers to gather information

      1. 165. Authority's power to require information.

      2. 166. Reports by skilled persons.

    2. Appointment of investigators

      1. 167. Appointment of persons to carry out general investigations.

      2. 168. Appointment of persons to carry out investigations in particular cases.

    3. Assistance to overseas regulators

      1. 169. Investigations etc. in support of overseas regulator.

    4. Conduct of investigations

      1. 170. Investigations: general.

      2. 171. Powers of persons appointed under section 167.

      3. 172. Additional power of persons appointed as a result of section 168(1) or (4).

      4. 173. Powers of persons appointed as a result of section 168(2).

      5. 174. Admissibility of statements made to investigators.

      6. 175. Information and documents: supplemental provisions.

      7. 176. Entry of premises under warrant.

    5. Offences

      1. 177. Offences.

  12. Part XII

    Control Over Authorised Persons

    1. Notice of control

      1. 178. Obligation to notify the Authority.

    2. Acquiring, increasing and reducing control

      1. 179. Acquiring control.

      2. 180. Increasing control.

      3. 181. Reducing control.

    3. Acquiring or increasing control: procedure

      1. 182. Notification.

      2. 183. Duty of Authority in relation to notice of control.

      3. 184. Approval of acquisition of control.

      4. 185. Conditions attached to approval.

      5. 186. Objection to acquisition of control.

      6. 187. Objection to existing control.

      7. 188. Notices of objection under section 187: procedure.

    4. Improperly acquired shares

      1. 189. Improperly acquired shares.

    5. Reducing control: procedure

      1. 190. Notification.

    6. Offences

      1. 191. Offences under this Part.

    7. Miscellaneous

      1. 192. Power to change definitions of control etc.

  13. Part XIII

    Incoming Firms: Intervention by Authority

    1. Interpretation

      1. 193. Interpretation of this Part.

      2. 194. General grounds on which power of intervention is exercisable.

      3. 195. Exercise of power in support of overseas regulator.

      4. 196. The power of intervention.

    2. Exercise of power of intervention

      1. 197. Procedure on exercise of power of intervention.

      2. 198. Power to apply to court for injunction in respect of certain overseas insurance companies.

      3. 199. Additional procedure for EEA firms in certain cases.

    3. Supplemental

      1. 200. Rescission and variation of requirements.

      2. 201. Effect of certain requirements on other persons.

      3. 202. Contravention of requirement imposed under this Part.

    4. Powers of Director General of Fair Trading

      1. 203. Power to prohibit the carrying on of Consumer Credit Act business.

      2. 204. Power to restrict the carrying on of Consumer Credit Act business.

  14. Part XIV

    Disciplinary Measures

    1. 205. Public censure.

    2. 206. Financial penalties.

    3. 207. Proposal to take disciplinary measures.

    4. 208. Decision notice.

    5. 209. Publication.

    6. 210. Statements of policy.

    7. 211. Statements of policy: procedure.

  15. Part XV

    The Financial Services Compensation Scheme

    1. The scheme manager

      1. 212. The scheme manager.

    2. The scheme

      1. 213. The compensation scheme.

    3. Provisions of the scheme

      1. 214. General.

      2. 215. Rights of the scheme in relevant person's insolvency.

      3. 216. Continuity of long-term insurance policies.

      4. 217. Insurers in financial difficulties.

    4. Annual report

      1. 218. Annual report.

    5. Information and documents

      1. 219. Scheme manager's power to require information.

      2. 220. Scheme manager's power to inspect information held by liquidator etc.

      3. 221. Powers of court where information required.

    6. Miscellaneous

      1. 222. Statutory immunity.

      2. 223. Management expenses.

      3. 224. Scheme manager's power to inspect documents held by Official Receiver etc.

  16. Part XVI

    The Ombudsman Scheme

    1. The scheme

      1. 225. The scheme and the scheme operator.

      2. 226. Compulsory jurisdiction.

      3. 227. Voluntary jurisdiction.

    2. Determination of complaints

      1. 228. Determination under the compulsory jurisdiction.

      2. 229. Awards.

      3. 230. Costs.

    3. Information

      1. 231. Ombudsman's power to require information.

      2. 232. Powers of court where information required.

      3. 233. Data protection.

    4. Funding

      1. 234. Industry funding.

  17. Part XVII

    Collective Investment Schemes

    1. Chapter I

      Interpretation

      1. 235. Collective investment schemes.

      2. 236. Open-ended investment companies.

      3. 237. Other definitions.

    2. Chapter II

      Restrictions on Promotion

      1. 238. Restrictions on promotion.

      2. 239. Single property schemes.

      3. 240. Restriction on approval of promotion.

      4. 241. Actions for damages.

    3. Chapter III

      Authorised Unit Trust Schemes

      1. Applications for authorisation

        1. 242. Applications for authorisation of unit trust schemes.

        2. 243. Authorisation orders.

        3. 244. Determination of applications.

      2. Applications refused

        1. 245. Procedure when refusing an application.

      3. Certificates

        1. 246. Certificates.

      4. Rules

        1. 247. Trust scheme rules.

        2. 248. Scheme particulars rules.

        3. 249. Disqualification of auditor for breach of trust scheme rules.

        4. 250. Modification or waiver of rules.

      5. Alterations

        1. 251. Alteration of schemes and changes of manager or trustee.

        2. 252. Procedure when refusing approval of change of manager or trustee.

      6. Exclusion clauses

        1. 253. Avoidance of exclusion clauses.

      7. Ending of authorisation

        1. 254. Revocation of authorisation order otherwise than by consent.

        2. 255. Procedure.

        3. 256. Requests for revocation of authorisation order.

      8. Powers of intervention

        1. 257. Directions.

        2. 258. Applications to the court.

        3. 259. Procedure on giving directions under section 257 and varying them on Authority's own initiative.

        4. 260. Procedure: refusal to revoke or vary direction.

        5. 261. Procedure: revocation of direction and grant of request for variation.

    4. Chapter IV

      Open-ended Investment Companies

      1. 262. Open-ended investment companies.

      2. 263. Amendment of section 716 Companies Act 1985.

    5. Chapter V

      Recognised Overseas Schemes

      1. Schemes constituted in other EEA States

        1. 264. Schemes constituted in other EEA States.

        2. 265. Representations and references to the Tribunal.

        3. 266. Disapplication of rules.

        4. 267. Power of Authority to suspend promotion of scheme.

        5. 268. Procedure on giving directions under section 267 and varying them on Authority's own initiative.

        6. 269. Procedure on application for variation or revocation of direction.

      2. Schemes authorised in designated countries or territories

        1. 270. Schemes authorised in designated countries or territories.

        2. 271. Procedure.

      3. Individually recognised overseas schemes

        1. 272. Individually recognised overseas schemes.

        2. 273. Matters that may be taken into account.

        3. 274. Applications for recognition of individual schemes.

        4. 275. Determination of applications.

        5. 276. Procedure when refusing an application.

        6. 277. Alteration of schemes and changes of operator, trustee or depositary.

      4. Schemes recognised under sections 270 and 272

        1. 278. Rules as to scheme particulars.

        2. 279. Revocation of recognition.

        3. 280. Procedure.

        4. 281. Directions.

        5. 282. Procedure on giving directions under section 281 and varying them otherwise than as requested.

      5. Facilities and information in UK

        1. 283. Facilities and information in UK.

    6. Chapter VI

      Investigations

      1. 284. Power to investigate.

  18. Part XVIII

    Recognised Investment Exchanges and Clearing Houses

    1. Chapter I

      Exemption

      1. General

        1. 285. Exemption for recognised investment exchanges and clearing houses.

        2. 286. Qualification for recognition.

      2. Applications for recognition

        1. 287. Application by an investment exchange.

        2. 288. Application by a clearing house.

        3. 289. Applications: supplementary.

        4. 290. Recognition orders.

        5. 291. Liability in relation to recognised body's regulatory functions.

        6. 292. Overseas investment exchanges and overseas clearing houses.

      3. Supervision

        1. 293. Notification requirements.

        2. 294. Modification or waiver of rules.

        3. 295. Notification: overseas investment exchanges and overseas clearing houses.

        4. 296. Authority's power to give directions.

        5. 297. Revoking recognition.

        6. 298. Directions and revocation: procedure.

        7. 299. Complaints about recognised bodies.

        8. 300. Extension of functions of Tribunal.

      4. Other matters

        1. 301. Supervision of certain contracts.

    2. Chapter II

      Competition Scrutiny

      1. 302. Interpretation.

      2. Role of Director General of Fair Trading

        1. 303. Initial report by Director.

        2. 304. Further reports by Director.

        3. 305. Investigations by Director.

      3. Role of Competition Commission

        1. 306. Consideration by Competition Commission.

      4. Role of the Treasury

        1. 307. Recognition orders: role of the Treasury.

        2. 308. Directions by the Treasury.

        3. 309. Statements by the Treasury.

        4. 310. Procedure on exercise of certain powers by the Treasury.

    3. Chapter III

      Exclusion from the Competition Act 1998

      1. 311. The Chapter I prohibition.

      2. 312. The Chapter II prohibition.

    4. Chapter IV

      1. Interpretation

        1. 313. Interpretation of Part XVIII.

  19. Part XIX

    Lloyd's

    1. General

      1. 314. Authority's general duty.

    2. The Society

      1. 315. The Society: authorisation and permission.

    3. Power to apply Act to Lloyd's underwriting

      1. 316. Direction by Authority.

      2. 317. The core provisions.

      3. 318. Exercise of powers through Council.

      4. 319. Consultation.

    4. Former underwriting members

      1. 320. Former underwriting members.

      2. 321. Requirements imposed under section 320.

      3. 322. Rules applicable to former underwriting members.

    5. Transfers of business done at Lloyd's

      1. 323. Transfer schemes.

    6. Supplemental

      1. 324. Interpretation of this Part.

  20. Part XX

    Provision of Financial Services by Members of the Professions

    1. 325. Authority's general duty.

    2. 326. Designation of professional bodies.

    3. 327. Exemption from the general prohibition.

    4. 328. Directions in relation to the general prohibition.

    5. 329. Orders in relation to the general prohibition.

    6. 330. Consultation.

    7. 331. Procedure on making or varying orders under section 329.

    8. 332. Rules in relation to persons to whom the general prohibition does not apply.

    9. 333. False claims to be a person to whom the general prohibition does not apply.

  21. Part XXI

    Mutual Societies

    1. Friendly societies

      1. 334. The Friendly Societies Commission.

      2. 335. The Registry of Friendly Societies.

    2. Building societies

      1. 336. The Building Societies Commission.

      2. 337. The Building Societies Investor Protection Board.

    3. Industrial and provident societies and credit unions

      1. 338. Industrial and provident societies and credit unions.

    4. Supplemental

      1. 339. Supplemental provisions.

  22. Part XXII

    Auditors and Actuaries

    1. Appointment

      1. 340. Appointment.

    2. Information

      1. 341. Access to books etc.

      2. 342. Information given by auditor or actuary to the Authority.

      3. 343. Information given by auditor or actuary to the Authority: persons with close links.

      4. 344. Duty of auditor or actuary resigning etc. to give notice.

    3. Disqualification

      1. 345. Disqualification.

    4. Offence

      1. 346. Provision of false or misleading information to auditor or actuary.

  23. Part XXIII

    Public Record, Disclosure of Information and Co-operation

    1. The public record

      1. 347. The record of authorised persons etc.

    2. Disclosure of information

      1. 348. Restrictions on disclosure of confidential information by Authority etc.

      2. 349. Exceptions from section 348.

      3. 350. Disclosure of information by the Inland Revenue.

      4. 351. Competition information.

      5. 352. Offences.

      6. 353. Removal of other restrictions on disclosure.

    3. Co-operation

      1. 354. Authority's duty to co-operate with others.

  24. Part XXIV

    Insolvency

    1. Interpretation

      1. 355. Interpretation of this Part.

    2. Voluntary arrangements

      1. 356. Authority's powers to participate in proceedings: company voluntary arrangements.

      2. 357. Authority's powers to participate in proceedings: individual voluntary arrangements.

      3. 358. Authority's powers to participate in proceedings: trust deeds for creditors in Scotland.

    3. Administration orders

      1. 359. Petitions.

      2. 360. Insurers.

      3. 361. Administrator's duty to report to Authority.

      4. 362. Authority's powers to participate in proceedings.

    4. Receivership

      1. 363. Authority's powers to participate in proceedings.

      2. 364. Receiver's duty to report to Authority.

    5. Voluntary winding up

      1. 365. Authority's powers to participate in proceedings.

      2. 366. Insurers effecting or carrying out long-term contracts of insurance.

    6. Winding up by the court

      1. 367. Winding-up petitions.

      2. 368. Winding-up petitions: EEA and Treaty firms.

      3. 369. Insurers: service of petition etc. on Authority.

      4. 370. Liquidator's duty to report to Authority.

      5. 371. Authority's powers to participate in proceedings.

    7. Bankruptcy

      1. 372. Petitions.

      2. 373. Insolvency practitioner's duty to report to Authority.

      3. 374. Authority's powers to participate in proceedings.

    8. Provisions against debt avoidance

      1. 375. Authority's right to apply for an order.

    9. Supplemental provisions concerning insurers

      1. 376. Continuation of contracts of long-term insurance where insurer in liquidation.

      2. 377. Reducing the value of contracts instead of winding up.

      3. 378. Treatment of assets on winding up.

      4. 379. Winding-up rules.

  25. Part XXV

    Injunctions and Restitution

    1. Injunctions

      1. 380. Injunctions.

      2. 381. Injunctions in cases of market abuse.

    2. Restitution orders

      1. 382. Restitution orders.

      2. 383. Restitution orders in cases of market abuse.

    3. Restitution required by Authority

      1. 384. Power of Authority to require restitution.

      2. 385. Warning notices.

      3. 386. Decision notices.

  26. Part XXVI

    Notices

    1. Warning notices

      1. 387. Warning notices.

    2. Decision notices

      1. 388. Decision notices.

    3. Conclusion of proceedings

      1. 389. Notices of discontinuance.

      2. 390. Final notices.

    4. Publication

      1. 391. Publication.

    5. Third party rights and access to evidence

      1. 392. Application of sections 393 and 394.

      2. 393. Third party rights.

      3. 394. Access to Authority material.

    6. The Authority's procedures

      1. 395. The Authority's procedures.

      2. 396. Statements under section 395: consultation.

  27. Part XXVII

    Offences

    1. Miscellaneous offences

      1. 397. Misleading statements and practices.

      2. 398. Misleading the Authority: residual cases.

      3. 399. Misleading the Director General of Fair Trading.

    2. Bodies corporate and partnerships

      1. 400. Offences by bodies corporate etc.

    3. Institution of proceedings

      1. 401. Proceedings for offences.

      2. 402. Power of the Authority to institute proceedings for certain other offences.

      3. 403. Jurisdiction and procedure in respect of offences.

  28. Part XXVIII

    Miscellaneous

    1. Schemes for reviewing past business

      1. 404. Schemes for reviewing past business.

    2. Third countries

      1. 405. Directions.

      2. 406. Interpretation of section 405.

      3. 407. Consequences of a direction under section 405.

      4. 408. EFTA firms.

      5. 409. Gibraltar.

    3. International obligations

      1. 410. International obligations.

    4. Tax treatment of levies and repayments

      1. 411. Tax treatment of levies and repayments.

    5. Gaming contracts

      1. 412. Gaming contracts.

    6. Limitation on powers to require documents

      1. 413. Protected items.

    7. Service of notices

      1. 414. Service of notices.

    8. Jurisdiction

      1. 415. Jurisdiction in civil proceedings.

    9. Removal of certain unnecessary provisions

      1. 416. Provisions relating to industrial assurance and certain other enactments.

  29. Part XXIX

    Interpretation

    1. 417. Definitions.

    2. 418. Carrying on regulated activities in the United Kingdom.

    3. 419. Carrying on regulated activities by way of business.

    4. 420. Parent and subsidiary undertaking.

    5. 421. Group.

    6. 422. Controller.

    7. 423. Manager.

    8. 424. Insurance.

    9. 425. Expressions relating to authorisation elsewhere in the single market.

  30. Part XXX

    Supplemental

    1. 426. Consequential and supplementary provision.

    2. 427. Transitional provisions.

    3. 428. Regulations and orders.

    4. 429. Parliamentary control of statutory instruments.

    5. 430. Extent.

    6. 431. Commencement.

    7. 432. Minor and consequential amendments, transitional provisions and repeals.

    8. 433. Short title.

  31. Schedules:

    1. Schedule 1

      The Financial Services Authority.

      1. Part I

        General.

      2. Part II

        Status.

      3. Part III

        Penalties and Fees.

      4. Part IV

        Miscellaneous.

    2. Schedule 2

      Regulated Activities.

      1. Part I

        Regulated Activities.

      2. Part II

        Investments.

      3. Part III

        Supplemental Provisions.

    3. Schedule 3

      EEA Passport Rights.

      1. Part I

        Defined terms.

      2. Part II

        Exercise of Passport Rights by EEA Firms.

      3. Part III

        Exercise of Passport Rights by UK Firms.

    4. Schedule 4

      Treaty Rights.

    5. Schedule 5

      Persons Concerned in Collective Investment Schemes.

    6. Schedule 6

      Threshold Conditions.

      1. Part I

        Part IV Permission.

      2. Part II

        Authorisation.

      3. Part III

        Additional Conditions.

    7. Schedule 7

      The Authority as Competent Authority for Part VI.

    8. Schedule 8

      Transfer of functions under Part VI.

    9. Schedule 9

      Non-listing Prospectuses.

    10. Schedule 10

      Compensation: Exemptions.

    11. Schedule 11

      Offers of Securities.

    12. Schedule 12

      Transfer schemes: certificates.

      1. Part I

        Insurance Business Transfer Schemes.

      2. Part II

        Banking Business Transfer Schemes.

      3. Part III

        Insurance business transfers effected outside the United Kingdom.

    13. Schedule 13

      The Financial Services and Markets Tribunal.

      1. Part I

        General.

      2. Part II

        The Tribunal.

      3. Part III

        Constitution of Tribunal.

      4. Part IV

        Tribunal Procedure.

    14. Schedule 14

      Role of the Competition Commission.

    15. Schedule 15

      Information and Investigations: Connected Persons.

      1. Part I

        Rules for Specific Bodies.

      2. Part II

        Additional Rules.

    16. Schedule 16

      Prohibitions and Restrictions imposed by Director General of Fair Trading.

    17. Schedule 17

      The Ombudsman Scheme.

      1. Part I

        General.

      2. Part II

        The Scheme Operator.

      3. Part III

        The Compulsory Jurisdiction.

      4. Part IV

        The Voluntary Jurisdiction.

    18. Schedule 18

      Mutuals.

      1. Part I

        Friendly Societies.

      2. Part II

        Friendly Societies: Subsidiaries and Controlled Bodies.

      3. Part III

        Building Societies.

      4. Part IV

        Industrial and Provident Societies.

      5. Part V

        Credit Unions.

    19. Schedule 19

      Competition Information.

      1. Part I

        Persons and functions for the purposes of section 351.

      2. Part II

        The enactments.

    20. Schedule 20

      Minor and Consequential Amendments.

    21. Schedule 21

      Transitional Provisions and Savings.

    22. Schedule 22

      Repeals.

An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.

[14th June 2000]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part I The Regulator

1 The Financial Services Authority

(1) The body corporate known as the Financial Services Authority ("the Authority") is to have the functions conferred on it by or under this Act.

(2) The Authority must comply with the requirements as to its constitution set out in Schedule 1.

(3) Schedule 1 also makes provision about the status of the Authority and the exercise of certain of its functions.



The Authority's general duties

2 The Authority's general duties

(1) In discharging its general functions the Authority must, so far as is reasonably possible, act in a way--

(a) which is compatible with the regulatory objectives; and

(b) which the Authority considers most appropriate for the purpose of meeting those objectives.

(2) The regulatory objectives are--

(a) market confidence;

(b) public awareness;

(c) the protection of consumers; and

(d) the reduction of financial crime.

(3) In discharging its general functions the Authority must have regard to--

(a) the need to use its resources in the most efficient and economic way;

(b) the responsibilities of those who manage the affairs of authorised persons;

(c) the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

(d) the desirability of facilitating innovation in connection with regulated activities;

(e) the international character of financial services and markets and the desirability of maintaining the competitive position of the United Kingdom;

(f) the need to minimise the adverse effects on competition that may arise from anything done in the discharge of those functions;

(g) the desirability of facilitating competition between those who are subject to any form of regulation by the Authority.

(4) The Authority's general functions are--

(a) its function of making rules under this Act (considered as a whole);

(b) its function of preparing and issuing codes under this Act (considered as a whole);

(c) its functions in relation to the giving of general guidance (considered as a whole); and

(d) its function of determining the general policy and principles by reference to which it performs particular functions.

(5) "General guidance" has the meaning given in section 158(5).



The regulatory objectives

3 Market confidence

(1) The market confidence objective is: maintaining confidence in the financial system.

(2) "The financial system" means the financial system operating in the United Kingdom and includes--

(a) financial markets and exchanges;

(b) regulated activities; and

(c) other activities connected with financial markets and exchanges.

4 Public awareness

(1) The public awareness objective is: promoting public understanding of the financial system.

(2) It includes, in particular--

(a) promoting awareness of the benefits and risks associated with different kinds of investment or other financial dealing; and

(b) the provision of appropriate information and advice.

(3) "The financial system" has the same meaning as in section 3.

5 The protection of consumers

(1) The protection of consumers objective is: securing the appropriate degree of protection for consumers.

(2) In considering what degree of protection may be appropriate, the Authority must have regard to--

(a) the differing degrees of risk involved in different kinds of investment or other transaction;

(b) the differing degrees of experience and expertise that different consumers may have in relation to different kinds of regulated activity;

(c) the needs that consumers may have for advice and accurate information; and

(d) the general principle that consumers should take responsibility for their decisions.

(3) "Consumers" means persons--

(a) who are consumers for the purposes of section 138; or

(b) who, in relation to regulated activities carried on otherwise than by authorised persons, would be consumers for those purposes if the activities were carried on by authorised persons.

6 The reduction of financial crime

(1) The reduction of financial crime objective is: reducing the extent to which it is possible for a business carried on--

(a) by a regulated person, or

(b) in contravention of the general prohibition,

to be used for a purpose connected with financial crime.

(2) In considering that objective the Authority must, in particular, have regard to the desirability of--

(a) regulated persons being aware of the risk of their businesses being used in connection with the commission of financial crime;

(b) regulated persons taking appropriate measures (in relation to their administration and employment practices, the conduct of transactions by them and otherwise) to prevent financial crime, facilitate its detection and monitor its incidence;

(c) regulated persons devoting adequate resources to the matters mentioned in paragraph (b).

(3) "Financial crime" includes any offence involving--

(a) fraud or dishonesty;

(b) misconduct in, or misuse of information relating to, a financial market; or

(c) handling the proceeds of crime.

(4) "Offence" includes an act or omission which would be an offence if it had taken place in the United Kingdom.

(5) "Regulated person" means an authorised person, a recognised investment exchange or a recognised clearing house.



Corporate governance

7 Duty of Authority to follow principles of good governance

In managing its affairs, the Authority must have regard to such generally accepted principles of good corporate governance as it is reasonable to regard as applicable to it.



Arrangements for consulting practitioners and consumers

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8 The Authority's general duty to consult

The Authority must make and maintain effective arrangements for consulting practitioners and consumers on the extent to which its general policies and practices are consistent with its general duties under section 2.

9 The Practitioner Panel

(1) Arrangements under section 8 must include the establishment and maintenance of a panel of persons (to be known as "the Practitioner Panel") to represent the interests of practitioners.

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