The Financial Services and Markets Act 2000 (c 8) is an Act of the Parliament of the United Kingdom that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking, and the Financial Ombudsman Service to resolve disputes as a free alternative to the courts.
|Long title||An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.|
|Introduced by||Alun Milburn ( )|
|Royal assent||14 June 2000|
Status: Current legislation
|Text of statute as originally enacted|
|Text of the Financial Services and Markets Act 2000 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.|
Some of the key sections of this act are:
- Part I The Regulator
- Section 1A outlines the regulatory objectives of the Financial Conduct Authority: (a) market confidence; (b) financial stability (c) public awareness; (d) the protection of consumers; and (e) the reduction of financial crime.
- Section 2A establishes the Prudential Regulation Authority
- Part II Regulated And Prohibited Activities
- Section 19 requires firms to be authorised to conduct regulated activities.
- Section 21 makes it a criminal offence to issue a financial promotion (an invitation to engage in investment activity) in the United Kingdom unless it is issued or approved by an authorised firm or exempt via the Financial Promotions Order.
- Part III Authorisation and Exemption
- Part IVA Permission to Carry on Regulated Activities
- Part V Performance of Regulated Activities
- Section 59 states that a person cannot carry out certain controlling functions in a firm without approval by the FSA.
- Part VI Official Listing
- Section 71 allows private persons to sue a firm for damages if a person performing a controlled function is not approved.
- Part VII Control of Business Transfers
- Part VIII Penalties for Market Abuse
- Section 118 concerns market abuse.
- Part 8A Short selling
- Part IX Hearings and Appeals
- Section 132 establishes the Financial Services and Markets Tribunal.
- Part XI Information Gathering and Investigations
- Sections 165 and 165A give the FCA and PRA power to require certain information.
- Part XII Control Over Authorised Persons
- Part XIII Incoming Firms
- Intervention by Authority
- Part XIV Disciplinary Measures
- Part XV The Financial Services Compensation Scheme
- Section 213 establishes the Financial Services Compensation Scheme.
- Part 15A Power to require FSCS manager to act in relation to other schemes
- Part XVI The Ombudsman Scheme
- Section 225 establishes the Financial Ombudsman Service.
- Part XVII Collective Investment Schemes
- Part XVIII Recognised Investment Exchanges and Clearing Houses
- Part 18A SUSPENSION AND REMOVAL OF FINANCIAL INSTRUMENTS FROM TRADING
- Part XIX Lloyd’s
- Part XX Provision of Financial Services by Members of the Professions
- Part XXI Mutual Societies
- Part XXII Auditors and Actuaries
- Part XXIII Public Record, Disclosure of Information and Co-operation
- Part XXIV Insolvency
- Part XXV Injunctions and Restitution
- Part XXVI Notices
- Part XXVII Offences
- Section 397 makes it a criminal offence to mislead a market or investors.
- Part XXVIII Miscellaneous
- Part XXIX Interpretation
- Part XXX Supplemental
- Text of the Financial Services and Markets Act 2000 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. .