FSMA 2000—the general prohibition

This overview provides a guide to the Financial Services content within the FSMA general prohibition subtopic with links to the appropriate materials.

Introduction to FSMA 2000

The principal role of the Financial Services and Markets Act 2000 (FSMA 2000) was to establish and transfer power to the Financial Services Authority (FSA) following the government’s decision to create a single regulator of financial services in the UK. The purpose of this Practice Note is to is to set out an overview of the make up of FSMA 2000. As part of government proposals to overhaul the UK financial services regulatory structure, the FSA was disbanded on 1 April 2013 and its functions were split between two new bodies: 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 although the Financial Services Act 2012 (FSA 2012) made significant amendments to most of FSMA 2000. This Practice Notes sets out the key points of FSMA 2000, as amended, including the make-up and function of the PRA and FCA; the

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Financial Services News

Retail insurance market: FCA publishes package of reports on cost pressures, claims handling failings and pricing reform impacts

The Financial Conduct Authority (FCA) has published a package of reports assessing the state of the UK retail insurance market and outlining actions for firms, government and regulators to address identified shortcomings. The FCA examined the causes of rising motor insurance premiums, reviewed claims handling in home and travel insurance, evaluated the fairness of premium finance and assessed the impact of its pricing reforms. The FCA noted that external cost pressures, rather than increased firm profits, were the primary driver of motor premium hikes. It also raised concerns about poor claims handling and the value offered by some premium finance arrangements. The reforms, it said, have improved fairness for loyal customers without causing unjustified price increases.

CRR: Commission launches consultation on prudential treatment of equity exposures

The European Commission has launched a targeted consultation on draft guidance concerning the prudential treatment of equity exposures incurred by banks under legislative programmes in the Capital Requirements Regulation (Regulation (EU) 575/2013) (CRR). The draft Communication sets out how banks may apply more favourable capital treatment to equity investments made under qualifying public programmes and clarifies the conditions under which such exposures would be eligible, including the presence of significant public subsidies or guarantees, and oversight by public authorities. The consultation forms part of the EU’s broader strategy to mobilise private funding for strategic sectors and ensure consistent application of CRR rules across the single market. Responses are sought by 8 September 2025.

FCA publishes full-page update to reflect current work on climate change and sustainable finance

The Financial Conduct Authority (FCA) has published a full-page update of its ‘Climate change and sustainable finance’ webpage, outlining its current work in this area. The update brings together recent developments in the FCA’s regulatory approach, which is intended to support the management of risks associated with both the transition to a more sustainable economy and the impacts of climate change. It also describes the FCA’s work to improve the availability and reliability of sustainability-related information, promote fair competition, and contribute to the development of internationally aligned standards. The update is part of broader efforts to support the UK Government’s objective of establishing the UK as a global centre for sustainable finance.

Wolfsberg Group publishes statement on key elements of risk-based approach to financial crime compliance

The Wolfsberg Group has published a statement on the application of a risk-based approach (RBA) to financial crime risk management (FCRM). The statement builds on the Group’s 2006 guidance and 2015 FAQs, and further defines the core elements of an RBA: proportionality, prioritisation and effectiveness. It aligns with the Financial Action Task Force’s (FATF) Recommendation 1 reforms and guidance on financial inclusion and notes that a supervisory regime which supports financial institutions in the application of an RBA is a key enabler of success. The Wolfsberg Group highlights recent engagement with member financial institutions, regulators, law enforcement, international organisations and civil society to embed the RBA through practical activities and confirms plans to update its existing resources to support implementation focused on effective outcomes.

View Financial Services by content type :

News