FSMA 2000 controllers regime—fund managers

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

  • FSMA 2000 controllers regime—fund managers
  • Who is the appropriate regulator?
  • What is an investment manager?
  • Pre-notification by fund managers
  • How to submit notifications

FSMA 2000 controllers regime—fund managers

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.

In order to accommodate fund management activities, the FCA allows investment managers to pre-notify changes of control and may grant approval of such changes for up to a year. This Practice Note provides a summary of the controllers regime as it applies to fund managers.

For further reading on the FSMA 2000 controllers regime, see Practice Notes:

  1. FSMA 2000 controllers regime—key concepts

  2. Obligations of controllers—acquiring and increasing control

  3. Obligations of controllers—reducing or ceasing control

  4. FSMA 2000 controllers regime—obligations for firms

  5. Enforcement of the FSMA 2000 controllers regime

  6. Control of insurance companies

Who is the appropriate regulator?

The appropriate regulator will be PRA if the firm is a PRA-authorised firm. For all other authorised firms, the appropriate regulator will be the FCA. See Practice Note: FSMA 2000 controllers regime—key concepts—Appropriate regulator.

What is an investment manager?

The special accommodation applies to investment managers, which are defined in the FCA Handbook Glossary as persons who, acting only on behalf of a client, manage designated investments in an account or portfolio:

  1. on a

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