FSMA 2000 controllers regime—key concepts
FSMA 2000 controllers regime—key concepts

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

  • FSMA 2000 controllers regime—key concepts
  • Key legislation and guidance
  • Acting in concert
  • Appropriate regulator
  • Change in control
  • Control
  • Control band
  • Controller
  • Controller of non-directive firm
  • Controller of an authorised building society
  • More...

FSMA 2000 controllers regime—key concepts

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory 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 provides an introduction to the key concepts of the controllers regime, including the meanings of ‘controller’, ‘control’ and ‘control band’ and related terms.

For practical steps that controllers and proposed controllers need to consider when acquiring/increasing or disposing/decreasing control, see Change in control process—checklist.

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

  1. Obligations of controllers—acquiring and increasing control

  2. Obligations of controllers—reducing or ceasing control

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