Enforcement of the FSMA 2000 controllers regime
Enforcement of the FSMA 2000 controllers regime

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Enforcement of the FSMA 2000 controllers regime
  • Who is the appropriate regulator?
  • Potential offences for a person who is acquiring or increasing control
  • Potential offences for a controller who is reducing or relinquishing control
  • Criminal sanctions
  • Inadvertent offences
  • Inadvertent inclusion of false or misleading information
  • Involuntarily becoming a controller
  • Consequences of contravention by authorised firms
  • FCA and PRA powers
  • More...

Enforcement of the FSMA 2000 controllers regime

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 when decreasing or ceasing control in a firm. The FCA and PRA also require UK authorised firms to notify them when a person reduces or ceases to have control in the firm.

This Practice Note looks at the criminal and regulatory consequences of failing to comply with the change of control regime set out in FSMA 2000, Part XII and the related FCA and PRA rules. It also provides an overview of the powers that the FCA and PRA have under the controllers regime to:

  1. object to a person having control over a UK authorised person

  2. impose restrictions on shares or voting power which have been acquired improperly, and

  3. order the sale of shares or disposition of voting power

In addition, this Practice Note reviews the criminal prosecutions for breaches of the controllers regime and other FCA and PRA actions that have taken place to date.

For more information, see Practice Note: Offences relating to change in control of UK authorised persons—Criminal offences under Part XII of FSMA—control of UK authorised persons.

For further

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