Financial stability information gathering powers
Financial stability information gathering powers

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

  • Financial stability information gathering powers
  • From whom can information be obtained?
  • What information may be obtained?
  • PRA statement of policy on the financial stability information power
  • The overseas financial stability information power
  • Providing notice before imposing a financial stability information requirement
  • Imposing a requirement

Part XI of the Financial Services and Markets Act 2000 (FSMA 2000) (ss 165-177) sets out the information gathering powers the regulators have to require firms to produce information and documents and prepare reports as well as the regulatory powers to conduct investigations and gain access to premises.

The Financial Services Act 2010 (FSA 2010) inserted FSMA 2000, ss 165A–165C and 169A. These provisions were subsequently amended by the Financial Services Act 2012. The inserted sections set out the regime under which the Prudential Regulation Authority (PRA) has the power to require the provision of information that the PRA considers to be relevant to the stability of one or more aspects of the UK's financial system.

The additional provisions were introduced in response to the financial crisis, and gave the PRA the ability to be more proactive in identifying issues that have the potential to destabilise parts of the financial system. The powers support the PRA's over-arching objective of 'promoting the safety and soundness of PRA-authorised firms' (ie dual-regulated firms) (FSMA 2000, s 2B) and BoE’s financial stability objective (section 2A of the Bank of England Act 1998).

For more information on the PRA’s objectives, see Practice Note: Prudential Regulation Authority—objectives and principles.

From whom can information be obtained?

The PRA’s financial stability information power sits alongside the general powers