The Financial Services and Markets Act 2000 (FSMA) definition

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UK Solvency II—timeline

UK Solvency II—timeline This timeline shows key developments relating to the UK's Solvency II regime. For earlier developments see Solvency II—timeline (2007–2023) [Archived]. 2025 Date Source Document Description 10 April 2025 PRA Prudential Regulation Authority Business Plan 2025/26 The Prudential Regulation Authority (PRA) has announced its business plan for 2025/2026, outlining its strategic priorities and objectives. The strategy focuses on maintaining the safety and soundness of the banking and insurance sectors, identifying new and emerging risks, supporting competitive and innovative markets, and running an inclusive and efficient regulator. The PRA also mentions work it has already completed, ongoing and future initiatives. Key regulatory initiatives include stress testing in the banking and insurance sector, preparation for the implementation of the Basel 3.1 standards by January 2027 and enhancing operational and cyber resilience. 8 April 2025 PRA PRA launches consultation to help insurers accelerate investment in the UKCP7/25 – Matching Adjustment Investment Accelerator The PRA has published a consultation paper, CP7/25, proposing the introduction of a new framework called the...

UK prudential regime for banks and designated investment firms—timeline

UK prudential regime for banks and designated investment firms—timeline This timeline shows key developments relating to the UK prudential framework for banks and designated investment firms from January 2024 onwards. For earlier developments, see: Capital Requirements Directive IV (CRD IV) and Capital Requirements Regulation (CRR)—timeline [Archived]. 2025 Date Source Document Description 17 April 2025 PRA Update on modification by consent of the Liquidity Coverage Ratio part of the PRA Rulebook—Third Country Covered Bonds The Prudential Regulation Authority (PRA) has published an update to its modification by consent which allowed certain third country covered bonds under the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook to be included in Level 2A High Quality Liquid Assets, subject to a cap on the amount recognised. The PRA has withdrawn the modification while it considers requests for clarification and technical comments received since the modification was published on 8 April 2025. Once it has completed this process it will clarify its approach. In the interim period, firms are advised that they do...

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Regulated mortgage contracts—flowchart

Regulated mortgage contracts—flowchart Background to and scope of this flowchart On 31 October 2004 (a date known as ‘M Day’), lenders and intermediaries of regulated mortgage contracts (RMCs) became regulated. A person that carries on a regulated activity in the UK by way of business, where there is no applicable exclusion or exemption, must be authorised under the Financial Services and Markets Act 2000 (FSMA 2000). The purpose of this flowchart is to set out the main questions to ask a person to determine whether or not they are carrying on the following RMC activities that are regulated under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO): • arranging (bringing about) RMCs (RAO, SI 2001/544, art 25A(1)) • making arrangements with a view to a person who participates in the arrangements entering into a RMC as a borrower (RAO, SI 2001/544, art 25A(2)) • making arrangements to enter into a RMC with a borrower on behalf of a lender (RAO, SI 2001/544, art 25A(2A)) •...

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Safeguards for shareholders, creditors and counterparties under the special resolution regime for banks

Safeguards for shareholders, creditors and counterparties under the special resolution regime for banks Publication and approval In this Practice Note, ‘bank’ means a UK institution which has permission under Part 4A of the Financial Services and Markets Act 2000 (FSMA 2000) to carry on the regulated activity of accepting deposits (within the meaning of FSMA 2000, s 22, taken with Schedule 2 and any order under FSMA 2000, s 22) and any references to ‘bank’ below include a resolution company. Following the failure of Silicon Valley Bank, the government consulted on further reforms and in July 2024 published its response together with the Bank Resolution (Recapitalisation) Bill (see: LNB News 19/07/2024 30). Note that these reforms are not limited to smaller banks and will apply to banks of any size (provided they satisfy the other entry conditions). Part 1 of the Banking Act 2009 (BA 2009) also applies to building societies and investment firms with modifications detailed in BA 2009. Central counterparties now have their own special resolution regime under...

Financial services firms and insolvency provisions in FSMA 2000

Financial services firms and insolvency provisions in FSMA 2000 Financial services firms and insolvency provisions in FSMA 2000 The provisions in Part XXIV of the Financial Services and Markets Act 2000 (FSMA 2000) allow the regulators to be involved in insolvency related proceedings against firms and individuals. These rights arise both in respect of authorised firms and recognised investment exchanges, as well as those conducting regulated activities in contravention of the general prohibition (FSMA 2000, ss 19–20). Each section in Pt XXIV indicates the parameters as to when rights accrue, in some cases rights accrue to more than one regulator. Seeking insolvency orders is an important process for the regulators, particularly against firms carrying out unauthorised business. Insolvency proceedings are used against insolvent firms and individuals as well as those which are not technically insolvent but where it would be just and equitable for the firm to cease business. The sections in FSMA 2000 should be considered in the wider context of the legislative treatment...

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Policy—regulatory references

Policy—regulatory references 1 Introduction 1.1 The Financial Conduct Authority (FCA) and the Prudential Regulation authority (PRA) (together the Regulators) require firms that are authorised by the Regulators (and subject to the Senior Managers and Certification Regime (SM&CR)) to request regulatory references if they are considering:. 1.1.1 permitting or appointing someone to perform a senior management function; 1.1.2 issuing a certificate under the certification regime; and/or 1.1.3 appointing a non-executive board director. 1.2 These regulatory references are designed to assist prospective employers to assess whether an individual applying for an applicable regulated function is fit and proper to hold that role. 1.3 To enable a prospective employer to assess the fitness and propriety of a candidate for a regulated function, organisations that fall within the SM&CR must provide upon request a regulatory reference that covers the individual for the preceding six years (and, in certain circumstances, longer). It is essential that we comply with our regulatory obligations in obtaining and in responding to such requests, as the failure to...

Special administration—witness statement in support of application for special administration

Special administration—witness statement in support of application for special administration Applicant [NAME OF WITNESS] First Witness Statement Date: [] Exhibit [XX1] Court Reference No: [INSERT COURT REF. NUMBER] [ IN THE HIGH COURT OF JUSTICE] BUSINESS AND PROPERTY COURTS [OF ENGLAND AND WALES] [IN [INSERT LOCATION]] [COMPANY & INSOLVENCY LIST (ChD)] OR [IN THE COUNTY COURT AT [INSERT LOCATION]] [BUSINESS AND PROPERTY COURTS LIST] OR [IN THE HIGH COURT OF JUSTICE] [CHANCERY DIVISION] OR IN THE MATTER OF [INVESTMENT BANK NAME] AND IN THE MATTER OF THE INVESTMENT BANK SPECIAL ADMINISTRATION REGULATIONS 2011 AND IN THE MATTER OF THE INSOLVENCY ACT 1986 _________________________________________ WITNESS STATEMENT OF [WITNESS NAME] ___________________________________________ I, [witness name], director [and chairperson] of [investment bank name] of [investment bank address] WILL SAY AS FOLLOWS: 1 I am [a director and] [the chairperson] of [investment bank address] with company number [company number] (the Company). The Company is a wholly-owned subsidiary of [insert details], a company incorporated in [location]. It is in...

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Can a limited partner of a private fund limited partnership (PFLP) also be the sole director and shareholder of the PFLP's general partner?

Can a limited partner of a private fund limited partnership (PFLP) also be the sole director and shareholder of the PFLP's general partner? For the purposes of this Q&A, it is assumed that: • the relevant private fund limited partnership (PFLP) is established in England • the PFLP’s general partner is appointed as the relevant authorised person to manage the PFLP under the Financial Services and Markets Act 2000 (FSMA 2000) • the PFLP is a collective investment scheme (CIS) as defined in FSMA 2000, s 235 Limited liability status Where a limited partner of a PFLP also serves as the sole shareholder and director of the PFLP’s general partner (GP), this may have an impact on the limited liability status of the limited partner concerned. A key feature of limited partnerships, including PFLPs, is that their limited partners enjoy limited liability status, provided that such limited partners do not participate in the management of the limited partnership business. Where the limited partner in question is the sole shareholder and...

The trustees of a non-UK trust have been asked to make a loan to a UK-resident beneficiary so that the beneficiary can remortgage their home in the UK. The loan will be secured by a first legal charge on the property. The loan could be made directly by the trustees, or by an underlying company of the trust. Would this constitute a regulated activity for the trustee or the company so that it would need to be licensed by the Financial Conduct Authority?

The trustees of a non-UK trust have been asked to make a loan to a UK-resident beneficiary so that the beneficiary can remortgage their home in the UK. The loan will be secured by a first legal charge on the property. The loan could be made directly by the trustees, or by an underlying company of the trust. Would this constitute a regulated activity for the trustee or the company so that it would need to be licensed by the Financial Conduct Authority? The loan may be a regulated activity for the purposes of the Financial Services and Markets Act 2000 (FSMA 2000). This is because you state that the loan will be secured on the property by first legal mortgage. If the person making the loan is doing so 'by way of business', they must be authorised to do so under FSMA 2000. Otherwise, they will be committing a criminal offence. In its guidance, the FCA provides that whether or not a mortgage is

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Financial Services weekly highlights—8 May 2025

This week's edition of Financial Services weekly highlights includes: CP25/11—FCA consultation paper on steps to simplify mortgage rules; Council of the EU approves mandate to shorten settlement cycle for transferable securities; BIS and SARB launch sixth edition of G20 TechSprint; plus dates for your diary over the coming week.

FCA exercises own-initiative powers to restrict  Direct Trading Technologies from carrying out regulated activities

The Financial Conduct Authority (FCA) has published a press release and issued a First Supervisory Notice (FSN) to Direct Trading Technologies UK Ltd (DTT), exercising its own-initiative powers under sections 55J and 55L of the Financial Services and Markets Act 2000 (FSMA 2000) to vary DTT’s Part 4A permission to perform regulated activities and impose requirements on DTT in order to restrict its access to its assets. The FCA’s regulatory intervention follow its concerns regarding DTT’s inadequate financial crime systems and controls, poor governance and oversight, and its failure to be open and cooperative with the FCA and appropriately disclose information. The FCA adds that the information provided to the firm’s auditor appears to be inconsistent with information separately provided by the firm to the FCA. DTT is required to ensure that all open trading positions have been closed and investor money is set aside for customers. The firm can no longer offer regulated services, including trading.