Threshold conditions under FSMA 2000
Produced in partnership with John Ahern

The following Financial Services practice note produced in partnership with John Ahern provides comprehensive and up to date legal information covering:

  • Threshold conditions under FSMA 2000
  • The threshold conditions
  • FCA solo-regulated firms
  • Dual-regulated firms
  • The FCA and PRA approaches
  • The PRA approach
  • The FCA approach
  • Failure to satisfy the threshold conditions
  • Legal status
  • Insurance-related activities
  • More...

Threshold conditions under FSMA 2000

This Practice Note provides a summary of the threshold conditions that apply to authorised firms, including firms authorised by the Financial Conduct Authority (FCA) and firms authorised by the Prudential Regulation Authority (PRA) and dual-regulated by the FCA and PRA.

All firms authorised under the Financial Services and Markets Act 2000 (FSMA 2000) are required to maintain a set of minimum standards in order to become and remain authorised. These standards are referred to as the 'threshold conditions'. The threshold conditions are set out in Schedule 6 to the FSMA 2000. This was amended by the Financial Services and Markets Act 2000 (Threshold Conditions) Order 2013, SI 2013/555 (the Threshold Conditions Order).

Changes made to FSMA 2000 by the Financial Services Act 2012 (FSA 2012) came into effect on 1 April 2013. FSMA 2000, s 55C, as inserted by FSA 2012, s 11(2), provides that HM Treasury may by order amend FSMA 2000, Sch 6, Pts 1 and 2 by altering, adding or repealing provisions, or by substituting for those Parts as they have effect for the time being, according to the provisions specified in the order. The Treasury used these powers to make the Threshold Conditions Order.

The threshold conditions

In giving or varying permission, imposing or varying a requirement, or giving consent, under FSMA 2000, Pt 4A (Permission to carry on regulated

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