Controllers regime

Controllers regime

This Overview is a guide to the Financial Services content within the Controllers regime subtopic, with links to the appropriate materials.

Change in control

Part XII of the Financial Services and Markets Act 2000 (FSMA 2000) requires controllers and proposed controllers to seek approval from the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) before acquiring or increasing control in a UK authorised firm, and to notify the relevant regulator before decreasing or ceasing control in a firm. Regulated firms must also notify the relevant regulator of proposed or actual changes in control. The PRA requirements are set out in the Change in Control Part of the PRA Rulebook, and the FCA requirements are set out in Chapter 11 of the Supervision manual in the FCA Handbook (SUP 11).

For practical steps that controllers and proposed controllers need to consider when acquiring/increasing or disposing/decreasing control, see Change in control process—checklist.

Legislative background

The Acquisitions Directive (Directive 2007/44/EC) established a harmonised framework for the prudential assessment of acquisitions and increases of holdings in the EU financial sector. The provisions of the Directive

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