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...

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

  3. FSMA 2000 controllers regime—obligations for firms

  4. FSMA 2000 controllers regime—fund managers

  5. Enforcement of the FSMA 2000 controllers regime

Key legislation and guidance

The regime for changes of control in authorised firms is set out in FSMA 2000, Pt XII. The Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009, SI 2009/774 (Controllers Exemption Order) was made under FSMA 2000, ss 192(a) and 428(3) to create exemptions from the obligations to notify the UK regulator when acquiring, increasing, reducing

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