Financial Services and Markets Act 2000—essentials
Financial Services and Markets Act 2000—essentials

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

  • Financial Services and Markets Act 2000—essentials
  • The make-up and functions of the PRA and FCA (FSMA 2000, Pt 1A and Schs 1ZA, 1ZB, 1A)
  • The general prohibition, regulated activities and financial promotions (FSMA 2000, Pt II and Sch 2)
  • Permissions to carry on regulated activities (FSMA 2000, Pt 4A and Sch 6)
  • The authorisation regime, the appointed representatives regime and the senior managers and certification regime (FSMA 2000, Pts III and V and Schs 3 and 5)
  • Official listing (FSMA 2000, Pt VI and Schs 10–11A)
  • Control of business transfers (FSMA 2000, Pt VII, Sch 12)
  • Market abuse (FSMA 2000, Pt VIII)
  • Short selling (FSMA 2000, Pt 8A)
  • Hearing and appeals (FSMA 2000 Pt IX)
  • more

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. It is intended to act as a general framework for financial services legislation and regulation in the UK.

FSMA 2000 came into force (and the FSA became the single regulator for the UK financial services industry) on 1 December 2001.

The make-up and functions of the PRA and FCA (FSMA 2000, Pt 1A and Schs 1ZA, 1ZB, 1A)

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.

The structure and functions of the PRA and FCA are set out in FSMA 2000, Pt 1A, and Schs 1ZA, 1ZB and 1A. For more information see Practice Notes: Financial Conduct Authority—structure and constitution and Prudential Regulation Authority—structure and constitution.

Pt 1A sets out general information about the objectives of the PRA and FCA, their