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Financial Services

The Financial Services and Markets Act 2000 (FSMA 2000) was introduced as a general framework for financial services legislation and regulation in the UK. As part of government proposals to overhaul the UK financial services regulatory structure, the Financial Services Authority was disbanded on 1 April 2013 and its functions were split between the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), FSMA 2000 was retained as the primary legislation for the UK financial services industry.

FSMA 2000 regulates activities relating to investments, including shares and rights to acquire shares, and is therefore relevant where share incentives are offered by a company to its employees. Under FSMA 2000, a person is prohibited from carrying on a regulated activity in the UK, or purporting to do so, unless authorised or exempt. Failing to comply with this general prohibition is a criminal offence, and may also result in agreements which are entered into in contravention of FSMA 2000 being unenforceable against other parties without a court order or the permission of the FCA. For a a general overview of FSMA 2000, see Practice Note:

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Latest Share Incentives News

Share Incentives weekly highlights—19 June 2025

This week's edition of Share Incentives weekly highlights includes: (1) a focus on executive pay, as the AGM season continues and (2) a new Q&A which considers whether business asset disposal relief can be available where an EBT trustee is holding shares as bare trustee for an employee.

Data (Use and Access) Bill to receive Royal Assent on 19 June 2025

The Data (Use and Access) Bill (DUA) is set to receive Royal Assent and become an Act of Parliament on Thursday 19 June 2025. This follows its parliamentary review being finalised on 11 June 2025 and marks the culmination of nearly eight months of parliamentary procedure. Under section 139 of the DUA, most provisions will come into force as and when the Secretary of State appoints regulations. However, a limited number of provisions will come into force upon Royal Assent. This includes section 78, which relates to reasonable and proportionate searches for data subject access requests. It also includes sections 126–128 on the retention of biometric data, and schedule 16 on the grant of energy smart meter communication licences.

Share Incentives weekly highlights—12 June 2025

This week's edition of Share Incentives weekly highlights includes the FCA’s publication of the final rules for the PISCES sandbox to allow trading in private company shares.

Share Incentives weekly highlights—5 June 2025

This week's edition of Share Incentives weekly highlights includes: (1) a focus on executive remuneration, as the 2025 AGM season continues and (2) a new Practice Note on accounting for share-based payments.

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