Obligations of controllers—reducing or ceasing control

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

  • Obligations of controllers—reducing or ceasing control
  • Notification requirement for controllers reducing or ceasing control
  • Exemptions
  • Who is the appropriate regulator?
  • Reducing/ceasing control thresholds
  • Directive firms
  • Electronic money institutions and payment institutions
  • Other types of firm
  • Control thresholds—key concepts
  • Shares
  • More...

Obligations of controllers—reducing or ceasing control

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.

This Practice Note provides an overview of the obligations of controllers to notify the appropriate regulator when decreasing or ceasing 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 need to consider when disposing or decreasing control, see: Change in control

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