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Financial Services

The Financial Services and Markets Act 2000 (FSMA 2000) was introduced as a general framework for financial services legislation and regulation in the UK. As part of government proposals to overhaul the UK financial services regulatory structure, the Financial Services Authority was disbanded on 1 April 2013 and its functions were split between the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), FSMA 2000 was retained as the primary legislation for the UK financial services industry.

FSMA 2000 regulates activities relating to investments, including shares and rights to acquire shares, and is therefore relevant where share incentives are offered by a company to its employees. Under FSMA 2000, a person is prohibited from carrying on a regulated activity in the UK, or purporting to do so, unless authorised or exempt. Failing to comply with this general prohibition is a criminal offence, and may also result in agreements which are entered into in contravention of FSMA 2000 being unenforceable against other parties without a court order or the permission of the FCA. For a a general overview of FSMA 2000, see Practice Note:

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Latest Share Incentives News

Share Incentives weekly highlights—19 December 2024

This week's edition of Share Incentives weekly highlights includes (1) the announcement by ISS Governance of its new 2025 benchmark policy updates, (2) the FCA’s publication of its consultation paper on the proposed regulatory framework for the Private Intermittent Securities and Capital Exchange System (PISCES), (3) the Lexis+® UK Practical Guidance and Market Standards Trend Report reflecting on the voting patterns displayed during the 2024 AGM season, (4) HMRC’s publication of minutes of a subgroup meeting on changes to taxation of non-domiciled individuals, and (5) a new Q&A in respect of employee ownership trusts with a corporate trustee.

Share Incentives weekly highlights—12 December 2024

This week's edition of Share Incentives weekly highlights includes (1) in relation to employee benefit trusts, the cases of JTC Employer Solutions Trustee Ltd v Garnett and also MR Currell Ltd v Revenue and Customs Commissioners, (2) the Welsh Government publishing its Budget for 2025–26, and (3) a consultation published by the Financial Conduct Authority which includes proposals for updating the FCA’s Handbook to align with the new edition of the UK Corporate Governance Code that was published in January 2024.

Share Incentives weekly highlights—5 December 2024

This week's edition of Share Incentives weekly highlights includes (1) an update on the progress of Finance Bill 2025 and the National Insurance Contributions (Secondary Class 1 Contributions) Bill in the House of Commons, (2) the 2025/26 Scottish Budget and (3) the case of Simrajsar Ltd and another v Revenue and Customs Commissioners, in which the First-tier Tax Tribunal concluded that termination payments constituted taxable earnings.

Share Incentives weekly highlights—28 November 2024

This week's edition of Share Incentives weekly highlights includes (1) the CIOT’s response to the employee ownership trust provisions of the draft Finance Bill 2025, (2) proposals by the PRA and FCA of significant reforms to dual-regulated firms' remuneration regime, (3) the FRC’s annual review of corporate governance reporting, and (4) HMRC’s Employment Related Securities Bulletin 58.

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