Obligations of controllers—acquiring and increasing control
Obligations of controllers—acquiring and increasing control

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

  • Obligations of controllers—acquiring and increasing control
  • Notification requirement for controllers acquiring or increasing control
  • Exemptions
  • Approval by the appropriate regulator
  • Who is the appropriate regulator?
  • Acquiring/increasing control thresholds
  • Directive firms
  • Electronic money institutions and payment institutions
  • Other types of firm
  • Involuntarily becoming a controller
  • 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.

This Practice Note provides an overview of the obligations of controllers and proposed controllers to notify and obtain approval from the appropriate regulator before acquiring or increasing control in a UK authorised firm. The PRA requirements are set out in the Change in Control Part of the PRA Rulebook, and the FCA requirements are set out in Chapter 11 of the Supervision manual in the FCA Handbook (SUP 11). A summary of the FCA notification requirements is provided in SUP 11 Annex 1G.

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

The Acquisitions Directive (Directive 2007/44/EC) established a harmonised framework for the prudential assessment of acquisitions and increases of holdings in the EU financial sector. The provisions of the Directive are reflected in the relevant sectoral directives and regulations, and have been implemented in FSMA 2000, Pt XII and the FCA and PRA rules. For more information, see Practice Note: Implementation of the Acquisitions Directive.

In December 2016, the

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