FSMA 2000 controllers regime—obligations for firms
FSMA 2000 controllers regime—obligations for firms

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

  • FSMA 2000 controllers regime—obligations for firms
  • Who is the appropriate regulator?
  • Regulatory framework
  • Exemptions
  • Obligation for authorised firms to notify the appropriate regulator of changes of control
  • UK authorised firms
  • Non-directive firms (including consumer credit firms) and building societies
  • Overseas firms
  • Payment institutions
  • Timing of notifications
  • 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 acquires, increases or reduces control in the firm. This notification can be submitted by the firm itself or jointly with the controller or proposed controller. In addition, firms are required to monitor their controllers and to submit an annual report to the appropriate regulator, identifying all of their controllers. These rules are intended to ensure that the appropriate regulator receives the information that it needs to fulfil its responsibility to monitor and, in some cases, give prior approval to firms’ controllers.

This Practice Note provides an overview of the obligations of authorised firms under the controllers regime, both when a change in control occurs and on an ongoing basis. For more information on the key concepts of the controllers regime, including the concepts of ‘control’, ‘controller’ and ‘change in control’, see Practice Note: FSMA 2000 controllers regime—key concepts. For more information on the obligations of controllers and proposed controllers, see Practice Notes: Obligations of controllers—acquiring

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