Legalize / United Kingdom / Public General Act

Financial Services and Markets Act 2000

Type Public General Act

Publication 2000-06-14

Last updated 2026-09-05

State In force

Department Statute Law Database

Source legislation.gov.uk

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articles Not indexed

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.

Reform history JSON API

(7) The PRA must, without delay, give the Treasury a copy of any scheme details published by it.

(8) The PRA may charge a reasonable fee for providing a person with a copy of—

(a) a draft published under sub-paragraph (2);

(b) scheme details.

(9) Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.

Fees

31

(1) The PRA may make rules providing for the payment to it of such fees, in connection with the discharge of any of its qualifying functions, as it considers will (taking account of its expected income from fees and charges provided for by any other provision of this Act) enable it—

(a) to meet expenses incurred in carrying out its functions or for any incidental purpose,

(b) to repay the principal of, and pay any interest on, any relevant borrowing and to meet relevant commencement expenses, and

(2) The “qualifying functions” of the PRA are—

(a) its functions under or as a result of this Act or any of the other enactments mentioned in section 2AB(3), and

(b) its functions under or as a result of a qualifying provision that is specified, or of a description specified, for the purposes of this sub-paragraph by the Treasury by order.

(3) In sub-paragraph (1)(b)—

“relevant borrowing” means any money borrowed by the PRA which has been used for the purpose of meeting expenses incurred in relation to its assumption of functions under this Act, and

“relevant commencement expenses” means expenses incurred by the PRA, the FCA or the Bank—in preparation for the exercise of functions by the PRA under this Act, orfor the purpose of facilitating the exercise by the PRA of those functions or otherwise in connection with their exercise by it.

(4) Neither section 2AB(3)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

(5) For the purposes of sub-paragraph (3) it is irrelevant when the borrowing of the money, the incurring of the expenses or the assumption of functions took place (and, in particular, it is irrelevant if expenses were incurred by the FCA at a time when it was known as the Financial Services Authority).

(6) In fixing the amount of any fee which is to be payable to the PRA, no account is to be taken of any sums which the PRA receives, or expects to receive, by way of penalties imposed by it under this Act.

(7) Any fee which is owed to the PRA under any provision made by or under this Act may be recovered as a debt due to the PRA.

Services for which fees may not be charged

32

The power conferred by paragraph 31 may not be used to require—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) a fee to be paid by any person whose application for approval under section 59 has been granted.

PART 4 — Miscellaneous

Exemption from liability in damages

33

(1) None of the following is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of the PRA's functions—

(a) the PRA;

(b) any person (“P”) who is, or is acting as, a member, officer or member of staff of the PRA;

(c) any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.

(1A) In sub-paragraph (1) the reference to the PRA's functions includes its functions under Part 5 of the Financial Services (Banking Reform) Act 2013 (regulation of payment systems).

(2) Anything done or omitted by a person mentioned in sub-paragraph (1)(a) or (b) while acting, or purporting to act, as a result of an appointment under any of sections 97, 166 to 169 , 284 and 377G is to be taken for the purposes of sub-paragraph (1) to have been done or omitted in the discharge, or as the case may be purported discharge, of the PRA's functions.

(3) Sub-paragraph (1) does not apply—

(a) if the act or omission is shown to have been in bad faith, or

(b) so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.

Accredited financial investigators

34

For the purposes of this Act anything done by an accredited financial investigator within the meaning of the Proceeds of Crime Act 2002 who—

(a) is, or is acting as, an officer of, or member of the staff of, the PRA, or

(b) is appointed by the PRA under section 167 or 168 to conduct an investigation,

is to be treated as done in the exercise or discharge of a function of the PRA.

Amounts required by rules to be paid to the PRA

35

Any amount (other than a fee) which is required by rules to be paid to the PRA may be recovered as a debt due to the PRA.

Engagement with Parliamentary Committees

36

(1) This paragraph applies where the PRA issues a relevant consultation.

(2) For the purposes of this paragraph the PRA issues a relevant consultation if it—

(a) publishes a draft of proposed rules under section 138J,

(b) publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or

(3) The PRA must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued.

(4) The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—

(a) advance the PRA’s objectives,

(b) demonstrate that the PRA has had regard to the regulatory principles in section 3B when preparing the proposals, and

(5) The reference in sub-paragraph (4)(a) to the PRA’s objectives includes, in their application as secondary objectives, the competition objective and the competitiveness and growth objective (see section 2H).

(6) The notification must also specify any other part of the consultation which the PRA considers should be drawn to the attention of the relevant Parliamentary Committees.

(7) References in this paragraph to the relevant Parliamentary Committees are references to—

(a) the Treasury Committee of the House of Commons,

(b) the Committee of the House of Lords which—

(i) is charged with responsibility by that House for the purposes of this paragraph, and

(ii) has notified the PRA that it is a relevant Parliamentary Committee for those purposes, and

(i) is charged with responsibility by those Houses for the purposes of this paragraph, and

(ii) has notified the PRA that it is a relevant Parliamentary Committee for those purposes.

(8) References in this paragraph to the Treasury Committee of the House of Commons—

(a) if the name of that Committee is changed, are references to that Committee by its new name, and

(b) if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.

(9) Any question arising under sub-paragraph (8) is to be determined by the Speaker of the House of Commons.

37

(1) This paragraph applies where—

(a) the PRA issues a public consultation, and

(b) a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the PRA representations in response to the consultation.

(2) For the purposes of this paragraph, the PRA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing the proposals to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(3) The PRA must give to the chair of the Committee concerned a written response to the representations.

(4) The duty to respond imposed by sub-paragraph (3) applies only so far as the PRA would not be under a corresponding duty to do so imposed by another enactment.

(5) The PRA is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the PRA be against the public interest.

SCHEDULE 1A — Further provision about the consumer financial education body

Part 1 — General

Ensuring exercise of consumer financial education function etc

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Constitution

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Status

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Discharge of function by others

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Discharge of functions: considerations

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relationship with the FCA

6A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Budget

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual plan

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual reports

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Audit of accounts

9A

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...

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 2 — Funding

Meaning of “the relevant costs”

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Funding of the relevant costs by authorised persons , payment service providers or electronic money issuers

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Funding of the relevant costs by consumer credit licensees etc

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Funding by grants or loans etc made by Treasury or Secretary of State

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 3 — Reviews

Reviews of economy etc of the consumer financial education body

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Right to obtain documents and information

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 2 — Regulated Activities

Part I — Regulated activities: general

General

1

The matters with respect to which provision may be made under section 22(1) in respect of activities include, in particular, those described in general terms in this Part of this Schedule.

Dealing in investments

2

(1) Buying, selling, subscribing for or underwriting investments or offering or agreeing to do so, either as a principal or as an agent.

(2) In the case of an investment which is a contract of insurance, that includes carrying out the contract.

Arranging deals in investments

3

Making, or offering or agreeing to make—

(a) arrangements with a view to another person buying, selling, subscribing for or underwriting a particular investment;

(b) arrangements with a view to a person who participates in the arrangements buying, selling, subscribing for or underwriting investments.

Deposit taking

4

Accepting deposits.

Safekeeping and administration of assets

5

(1) Safeguarding and administering assets belonging to another which consist of or include investments or offering or agreeing to do so.

(2) Arranging for the safeguarding and administration of assets belonging to another, or offering or agreeing to do so.

Managing investments

6

Managing, or offering or agreeing to manage, assets belonging to another person where—

(a) the assets consist of or include investments; or

(b) the arrangements for their management are such that the assets may consist of or include investments at the discretion of the person managing or offering or agreeing to manage them.

Investment advice

7

Giving or offering or agreeing to give advice to persons on—

(a) buying, selling, subscribing for or underwriting an investment; or

(b) exercising any right conferred by an investment to acquire, dispose of, underwrite or convert an investment.

Establishing collective investment schemes

8

Establishing, operating or winding up a collective investment scheme, including acting as—

(a) trustee of a unit trust scheme;

(b) depositary of a collective investment scheme other than a unit trust scheme; or

Using computer-based systems for giving investment instructions

9

(1) Sending on behalf of another person instructions relating to an investment by means of a computer-based system which enables investments to be transferred without a written instrument.

(2) Offering or agreeing to send such instructions by such means on behalf of another person.

(3) Causing such instructions to be sent by such means on behalf of another person.

(4) Offering or agreeing to cause such instructions to be sent by such means on behalf of another person.

Part 1A — Regulated activities: reclaim funds

Activities of reclaim funds

9A

(1) The matters with respect to which provision may be made under section 22(1) in respect of activities include, in particular, any of the activities of a reclaim fund.

(2) “Reclaim fund” has the meaning given by section 5(1) of the Dormant Bank and Building Society Accounts Act 2008.

Part II — Investments

General

10

The matters with respect to which provision may be made under section 22(1) in respect of investments include, in particular, those described in general terms in this Part of this Schedule.

Securities

11

(1) Shares or stock in the share capital of a company.

(2) “Company” includes—

(a) any body corporate (wherever incorporated), and

(b) any unincorporated body constituted under the law of a country or territory outside the United Kingdom,

other than an open-ended investment company.

Instruments creating or acknowledging indebtedness

12

Any of the following—

(a) debentures;

(b) debenture stock;

(d) bonds;

(e) certificates of deposit;

(f) any other instruments creating or acknowledging a present or future indebtedness.

Government and public securities

13

(1) Loan stock, bonds and other instruments—

(a) creating or acknowledging indebtedness; and

(b) issued by or on behalf of a government, local authority or public authority.

(2) “Government, local authority or public authority” means—

(a) the government of the United Kingdom, of Northern Ireland, or of any country or territory outside the United Kingdom;

(b) a local authority in the United Kingdom or elsewhere;

Instruments giving entitlement to investments

14

(1) Warrants or other instruments entitling the holder to subscribe for any investment.

(2) It is immaterial whether the investment is in existence or identifiable.

Certificates representing securities

15

Certificates or other instruments which confer contractual or property rights—

(a) in respect of any investment held by someone other than the person on whom the rights are conferred by the certificate or other instrument; and

(b) the transfer of which may be effected without requiring the consent of that person.

Units in collective investment schemes

16

(1) Shares in or securities of an open-ended investment company.

(2) Any right to participate in a collective investment scheme.

Options

17

Options to acquire or dispose of property.

Futures

18

Rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date.

Contracts for differences

19

Rights under—

(a) a contract for differences; or

(b) any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in—

(i) the value or price of property of any description; or

(ii) an index or other factor designated for that purpose in the contract.

Contracts of insurance

20

Rights under a contract of insurance, including rights under contracts falling within head C of Schedule 2 to the Friendly Societies Act 1992.

Participation in Lloyd’s syndicates

21

(1) The underwriting capacity of a Lloyd’s syndicate.

(2) A person’s membership (or prospective membership) of a Lloyd’s syndicate.

Deposits

22

Rights under any contract under which a sum of money (whether or not denominated in a currency) is paid on terms under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it.

Loans and other forms of credit

23

(1) Rights under any contract under which one person provides another with credit.

(2) “Credit” includes any cash loan or other financial accommodation.

(3) “Cash” includes money in any form.

(4) It is immaterial for the purposes of sub-paragraph (1) whether or not the obligation of the borrower is secured on property of any kind.

Other finance arrangements involving land

23A

(1) Rights under any arrangement for the provision of finance under which the person providing the finance either—

(a) acquires a major interest in land from the person to whom the finance is provided, or

(b) disposes of a major interest in land to that person,

as part of the arrangement.

(2) References in sub-paragraph (1) to a “major interest” in land are to—

(a) in relation to land in England or Wales—

(i) an estate in fee simple absolute, or

(ii) a term of years absolute,

whether subsisting at law or in equity;

(b) in relation to land in Scotland—

(i) the interest of an owner of land, or

(ii) the tenant's right over or interest in a property subject to a lease;

(i) any freehold estate, or

(ii) any leasehold estate,

whether subsisting at law or in equity.

(3) It is immaterial for the purposes of sub-paragraph (1) whether either party acquires or (as the case may be) disposes of the interest in land—

(a) directly, or

(b) indirectly.

Contracts for hire of goods

23B

(1) Rights under a contract for the bailment or (in Scotland) hiring of goods to a person other than a body corporate.

(2) “Goods” has the meaning given in section 61(1) of the Sale of Goods Act 1979.

(3) It is immaterial for the purposes of sub-paragraph (1) whether the rights of the person to whom the goods are bailed or hired have been assigned to a body corporate.

Rights in investments

24

Any right or interest in anything which is an investment as a result of any other provision made under section 22(1).

PART 2A — Regulated activities relating to information about persons' financial standing

General

24A

The matters with respect to which provision may be made under section 22(1A)(a) include, in particular, those described in general terms in this Part of this Schedule.

Providing credit reference services

24B

Furnishing persons with information that—

(a) is relevant to the financial standing of persons other than bodies corporate, and

(b) is collected for that purpose by the person furnishing it.

Providing credit information services

24C

(1) Taking steps on behalf of a person other than a body corporate in connection with information relevant to that person's financial standing that is or may be held by a person who is carrying on a regulated activity.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24D

Giving advice to a person other than a body corporate in relation to the taking of any steps of the kind mentioned in paragraph 24C(1).

PART 2B — Regulated activities relating to the setting of benchmarks

General

24E

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Providing information

24F

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Administration

24G

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Determining or publishing benchmark or publishing connected information

24H

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Part III — Supplemental Provisions

The order-making power

25

(1) An order under section 22(1) or (1A) to (1B) may—

(a) provide for exemptions;

(b) confer powers on the Treasury or either regulator;

(c) authorise the making of regulations or other instruments by the Treasury for purposes of, or connected with, any relevant provision;

(d) authorise the making of rules or other instruments by either regulator for purposes of, or connected with, any relevant provision;

(e) make provision in respect of any information or document which, in the opinion of the Treasury or either regulator, is relevant for purposes of, or connected with, any relevant provision;

(f) make such consequential, transitional or supplemental provision as the Treasury consider appropriate for purposes of, or connected with, any relevant provision , including provision which applies (with or without modification) provision in this Act or other primary or subordinate legislation that relates to investment activity or financial services to a regulated activity that does not relate to investment activity or financial services.

(2) Provision made as a result of sub-paragraph (1)(f) may amend any primary or subordinate legislation, including any provision of, or made under, this Act.

(3) “Relevant provision” means any provision—

(a) of section 22 or this Schedule; or

(b) made under that section or this Schedule.

Parliamentary control

26

(1) This paragraph applies to any order made under section 22(1) or (1A) to (1B) which contains a statement by the Treasury that, in their opinion, the effect (or one of the effects) of the proposed order would be that an activity which is not a regulated activity would become a regulated activity.

(2) No order to which this paragraph applies may be made unless—

(a) a draft of the order has been laid before Parliament and approved by a resolution of each House, or

(b) sub-paragraph (4) applies.

(3) Sub-paragraph (4) applies if an order to which this paragraph applies also contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.

(4) Where this sub-paragraph applies the order—

(a) must be laid before Parliament after being made, and

(b) ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).

(5) The “relevant period” is a period of 28 days beginning with the day on which the order is made.

(6) In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.

Interpretation

27

(1) In this Schedule—

“buying” includes acquiring for valuable consideration;

“offering” includes inviting to treat;

“property” includes currency of the United Kingdom or any other country or territory; and

“selling” includes disposing for valuable consideration.

(2) In sub-paragraph (1) “disposing” includes—

(a) in the case of an investment consisting of rights under a contract—

(i) surrendering, assigning or converting those rights; or

(ii) assuming the corresponding liabilities under the contract;

(b) in the case of an investment consisting of rights under other arrangements, assuming the corresponding liabilities under the contract or arrangements;

(c) in the case of any other investment, issuing or creating the investment or granting the rights or interests of which it consists.

(3) In this Schedule references to an instrument include references to any record (whether or not in the form of a document).

SCHEDULE 2A — Gibraltar-based persons carrying on activities in the UK

PART 1 — Interpretation etc

Gibraltar-based person

1

(1) In this Act, “Gibraltar-based person” means a person listed in sub-paragraph (2) which has its head office and, if it has one, its registered office in Gibraltar (and see also Part 14 of this Schedule).

(2) Those persons are—

(a) an individual,

(b) a body corporate,

(d) an unincorporated association.

Regulators

2

(1) In this Schedule—

“the Gibraltar regulator” means the Gibraltar Financial Services Commission;

“UK regulator” means the FCA or the PRA.

(2) The Treasury may by regulations amend the definition of “the Gibraltar regulator” if they consider it appropriate to do so in consequence of a change in the law of Gibraltar.

Activities and branches

3

(1) In this Schedule, “approved activity” means a regulated activity for the time being approved by regulations under paragraph 5.

(2) For the purposes of this Schedule—

(a) “corresponding activity” means an activity corresponding to an approved activity, and

(b) references (however expressed) to an activity corresponding to an approved activity, or an approved activity corresponding to another activity, are to be interpreted in accordance with regulations under paragraph 6.

(3) In this Schedule, “branch” means—

(a) a place where a person carries on an activity for an indefinite period and which does not have legal personality, or

(b) any other description of place specified in regulations made by the Treasury.

UK regulators' objectives

4

For the purposes of any provision of this Schedule which refers to the FCA's operational objectives or the PRA's objectives, in relation to the exercise of a power in relation to a particular person, it does not matter whether there is a relationship between that person and the persons whose interests will be protected by the exercise of the power.

PART 2 — Approved activities

Approval of regulated activities

5

(1) The Treasury may by regulations approve a regulated activity for the purposes of this Schedule.

(2) The power under this paragraph includes power to approve a regulated activity—

(a) only so far as it is carried on by a person of a description specified in the regulations,

(b) only so far as it is carried on through a branch in the United Kingdom,

(d) subject to other limitations.

(3) In making regulations under this paragraph, the Treasury may have regard to any matter that they consider relevant (and see the restrictions in paragraphs 7, 8 and 9 and the requirement in paragraph 10).

Corresponding activities regulated in Gibraltar

6

(1) The Treasury must by regulations make provision about how each approved activity corresponds to activities which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar.

(2) The power under this paragraph includes power to make provision about an activity—

(a) only so far as it is carried on by a person of a description specified in the regulations,

(b) only so far as it is carried on in other circumstances specified in the regulations, or

(3) In making regulations under this paragraph, the Treasury may have regard to any matter that they consider relevant (and see the restrictions in paragraphs 7 and 8 and the requirement in paragraph 10).

Objectives

7

(1) The Treasury may not make regulations under paragraph 5 or 6 unless they are satisfied that doing so is compatible with each of the following objectives—

(a) to protect and enhance the soundness, stability and resilience of the UK financial system;

(b) to protect and enhance public confidence in the UK financial system;

(d) to ensure that the relevant markets in the United Kingdom function well;

(e) to protect consumers;

(f) to protect the operation of the compensation scheme;

(g) to protect public funds;

(h) to maintain and improve relations between the United Kingdom and other countries and territories with significant financial markets or significant markets for financial services.

(2) In this paragraph—

“consumers” has the meaning given in section 1G;

“financial crime” has the meaning given in section 1H;

“public funds” means the Consolidated Fund and any other account or source of money which cannot be drawn or spent other than by, or with the authority of, the Treasury;

“the relevant markets” means the markets for services provided by persons carrying on the regulated activity or approved activity (as appropriate) to which the regulations relate.

Alignment of law and practice

8

(1) The Treasury may not approve a regulated activity under paragraph 5, or identify an activity as corresponding to an approved activity under paragraph 6, unless they are satisfied that, having regard to the objectives in paragraph 7(1), the relevant law and practice of the United Kingdom and Gibraltar are sufficiently aligned.

(2) In this paragraph, “the relevant law and practice” means—

(a) in relation to the United Kingdom, law and practice under which the carrying on of what is or would be the approved activity is authorised and supervised and other law and practice relevant to the carrying on of that activity,

(b) in relation to Gibraltar, law and practice under which the carrying on of what would be the corresponding activity is authorised and supervised and other law and practice relevant to the carrying on of that activity, and

(3) The reference to alignment between the law and practice of the United Kingdom and Gibraltar in sub-paragraph (1) includes both alignment as regards the effect of the law and practice and alignment of the text of the law and of any guidance or other documents relating to practice.

Co-operation

9

(1) The Treasury may not approve a regulated activity under paragraph 5 unless they are satisfied that, having regard to the objectives in paragraph 7(1), there is, or will be, adequate co-operation between—

(a) the UK entities listed in sub-paragraph (2), and

(b) the Gibraltar entities listed in sub-paragraph (3).

(2) The UK entities are—

(a) the Treasury,

(b) the FCA,

(d) the scheme manager.

(3) The Gibraltar entities are—

(a) the government of Gibraltar, and

(b) the Gibraltar regulator.

(4) In determining whether the test in sub-paragraph (1) is satisfied, the Treasury must have regard to—

(a) memoranda describing how the UK entities and the Gibraltar entities intend to co-operate,

(b) arrangements for the UK entities to obtain information and documents from the Gibraltar entities,

(c) arrangements for the verification of such information and documents (whether by, or by a person appointed by, a UK entity or a Gibraltar entity),

(d) arrangements for the Gibraltar entities to obtain information and documents from the UK entities, and

(e) anything else that the Treasury consider relevant.

Consultation

10

Before making regulations under paragraph 5 or 6, the Treasury must consult—

(a) the government of Gibraltar,

(b) the FCA, and

Withdrawal of approval

11

(1) The restrictions in paragraphs 7, 8 and 9 do not apply in relation to regulations under paragraph 5 to the extent that the regulations—

(a) revoke other regulations under paragraph 5, or

(b) otherwise amend other regulations under paragraph 5 in order to withdraw the Treasury's approval of an activity.

(2) The restrictions in paragraphs 7 and 8 do not apply in relation to regulations under paragraph 6 to the extent that the regulations—

(a) revoke other regulations under paragraph 6, or

(b) otherwise amend other regulations under paragraph 6 in order to provide that an activity which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar does not correspond to an approved activity.

PART 3 — Permission to carry on an approved activity

Obtaining permission to carry on an approved activity

12

(1) If the appropriate UK regulator receives a notification from the Gibraltar regulator that a Gibraltar-based person wants to be able to carry on an approved activity in the United Kingdom (see paragraph 15), the person obtains permission to do so at the end of the period for considering the notification, as it relates to the activity (see paragraph 16).

(2) The person does not obtain permission to carry on an activity under sub-paragraph (1) if, during the period for considering the notification—

(a) the appropriate UK regulator rejects the notification, as it relates to the activity (see paragraph 17), or

(b) the Gibraltar regulator withdraws the notification, as it relates to the activity.

(3) References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

(4) A permission obtained under this paragraph is referred to in this Act as “a Schedule 2A permission”.

Schedule 2A permission

13

(1) A Schedule 2A permission for a person to carry on an activity is a permission to do so only if and to the extent that—

(a) the person is a Gibraltar-based person,

(b) the activity is an approved activity, and

subject to the transitional arrangements in Parts 9 and 10 of this Schedule.

(2) A Gibraltar-based person's Schedule 2A permission to carry on an activity is a permission to do so—

(a) on terms equivalent to the terms of the person's permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar, and

(b) subject to any limitations specified in the notification (for example, as to the circumstances in which the activity is to be carried on in the United Kingdom) (and see also paragraph 21(3)).

(3) The reference in sub-paragraph (2)(a) to the terms of the person's permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar includes—

(a) any restrictions included in the permission, and

(b) any other restrictions imposed by the Gibraltar regulator on the carrying on by the person of the activity in Gibraltar.

The appropriate UK regulator

14

In relation to a notification, “the appropriate UK regulator” means—

(a) the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b) the FCA, in any other case.

Notifying the appropriate UK regulator

15

(1) A notification must—

(a) name the Gibraltar-based person,

(b) state the address of the person's head office in Gibraltar,

(c) specify the approved activity which the person wants to be able to carry on in the United Kingdom, including any limitations,

(d) specify the corresponding activity, including any restrictions,

(e) state that the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

(f) state that the Gibraltar regulator consents to the person carrying on the approved activity in the United Kingdom,

(g) identify each person who is responsible for managing an aspect of the Gibraltar-based person's affairs relating to the approved activity and describe that person's responsibilities as regards those affairs,

(h) state whether the Gibraltar-based person wants to carry on the activity through a branch in the United Kingdom and, if so—

(i) identify each person who is or will be responsible for managing an aspect of the affairs of the branch, and

(ii) describe that person's responsibilities as regards those affairs, and

(i) contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

(2) A notification may relate to more than one approved activity.

(3) The Treasury may by regulations change the information that a notification must contain.

(4) Regulations under sub-paragraph (3) may amend this paragraph, but may not amend or repeal sub-paragraph (1)(i).

(5) Before making regulations under sub-paragraph (3), the Treasury must consult—

(a) the government of Gibraltar, and

(b) the UK regulators.

(6) In sub-paragraph (1), the references to managing an aspect of a person's affairs or a branch's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how that aspect of the affairs should be carried on.

Considering a notification

16

(1) Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.

(2) The period for considering a notification is—

(a) so far as it relates to an activity that is to be carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b) so far as it relates to any other activity, the period of one month beginning with that day.

(3) If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of an approved activity specified in the notification, then the period for considering the notification as it relates to the activity ends when the notice is given.

(4) A “confirmation notice” is a written notice confirming that the person has a Schedule 2A permission in relation to the approved activity.

(5) A confirmation notice may relate to more than one activity.

Rejecting a notification

17

(1) The appropriate UK regulator may not reject a notification unless—

(a) it is required to do so under paragraph 18, or

(b) it has power to do under paragraph 19 or 20.

(2) A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3) The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification relating to the same person and the same activity.

Duties to reject

18

(1) The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 15(1).

(2) The appropriate UK regulator must reject a notification, so far as it relates to an activity, if the activity ceases to be an approved activity.

(3) The appropriate UK regulator must reject a notification, so far as it relates to an approved activity, if satisfied that the Gibraltar-based person does not have permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar.

Power to reject: prohibition order in respect of senior manager

19

(1) The appropriate UK regulator may reject a notification, so far as it relates to an approved activity, if satisfied that a person with responsibility for managing an aspect of the Gibraltar-based person's affairs—

(a) is prohibited from performing a function by a prohibition order, and

(b) performs a senior management function in relation to the carrying on of the approved activity by the Gibraltar-based person in the United Kingdom, Gibraltar or elsewhere or is expected to do so if the person obtains a Schedule 2A permission to carry on the approved activity in the United Kingdom.

(2) In sub-paragraph (1)—

(a) the reference to managing an aspect of a person's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how that aspect of those affairs should be carried on,

(b) “prohibition order” means—

(i) an order under section 56,

(ii) an order under section 143S, or

(iii) an order under the law of Gibraltar which the appropriate UK regulator considers to be equivalent to an order under section 56 or 143S, and

(c) “senior management function”, in relation to the carrying on of an activity by the Gibraltar-based person, means a function which requires a person to manage an aspect of the Gibraltar-based person's affairs which involves, or might involve, a risk of serious consequences—

(i) for the Gibraltar-based person, or

(ii) for business or other interests in the United Kingdom, Gibraltar or elsewhere.

Power to reject: loss of access right and serious threat to the UK

20

(1) The appropriate UK regulator may reject a notification if satisfied that the Gibraltar-based person—

(a) lost a relevant access right at any time, and

(b) poses, or is likely to pose, a serious threat to—

(i) the interests of consumers (as defined in section 1G), or

(ii) the soundness, stability and resilience of the UK financial system or a part of that system.

(2) The appropriate UK regulator may reject a notification if satisfied that—

(a) the Gibraltar-based person—

(i) is a member of the same group as a person that lost a relevant access right at any time, or

(ii) has close links with such a person (as defined in paragraph 2C(2) of Schedule 6), and

(b) given the nature of the relationship between that person and the Gibraltar-based person, the Gibraltar-based person poses, or is likely to pose, a serious threat to—

(i) the interests of consumers (as defined in section 1G), or

(ii) the soundness, stability and resilience of the UK financial system or a part of that system.

(3) For the purposes of this paragraph, a person lost a relevant access right if—

(a) its Part 4A permission was cancelled,

(b) its Schedule 2A permission was cancelled, or

(4) When deciding whether to reject a notification under this paragraph, the appropriate UK regulator must have regard, among other things, to the reasons why the person lost the relevant access right.

PART 4 — Variation of permission

Variation of permission

21

(1) A Schedule 2A permission may be varied in accordance with this Part of this Schedule—

(a) on the initiative of the Gibraltar regulator (see paragraphs 22 to 26), or

(b) on the initiative of a UK regulator (see paragraphs 27 to 30).

(2) References in this Part of this Schedule to the variation of a Schedule 2A permission (however expressed) are to its variation by—

(a) adding an approved activity to those to which the permission relates,

(b) removing an approved activity from those to which the permission relates, or

(c) varying the description of an activity to which the permission relates (including by adding, removing or varying a limitation).

(3) Where a limitation is added, removed or varied under this Part of this Schedule, paragraph 13(2)(b) has effect as if it referred to the limitations (if any) that have effect after that change.

Gibraltar regulator's initiative: notification

22

(1) If the appropriate UK regulator receives a notification from the Gibraltar regulator requesting the variation of a Gibraltar-based person's Schedule 2A permission (see paragraph 24), the permission is varied—

(a) if the notification specifies a time for the variation to take effect which falls after the end of the period for considering the notification as it relates to the variation (see paragraph 25), at that time, or

(b) otherwise, at the end of the period for considering the notification, as it relates to the variation.

(2) A variation requested in a notification does not take effect under sub-paragraph (1) if, during the period for considering the notification—

(a) the appropriate UK regulator rejects the notification, as it relates to the variation (see paragraph 26), or

(b) the Gibraltar regulator withdraws the notification, as it relates to the variation.

(3) References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

Gibraltar regulator's initiative: the appropriate UK regulator

23

In relation to a notification, “the appropriate UK regulator” means—

(a) the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b) the FCA, in any other case.

Gibraltar regulator's initiative: notifying the UK regulator

24

(1) A notification must—

(a) state the desired variation,

(b) specify the approved activity or approved activities which the Gibraltar-based person wants to carry on following the variation, including any limitations,

(d) state that the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

(e) state that the Gibraltar regulator consents to the variation, and

(f) contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

(2) A notification may state when the desired variation is to have effect.

(3) A notification may relate to more than one variation.

Gibraltar regulator's initiative: considering a notification

25

(1) Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.

(2) The period for considering a notification is—

(a) so far as it relates to a variation in respect of an activity carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b) so far as it relates to any other variation, the period of one month beginning with that day.

(3) If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of a variation specified in the notification, then the period for considering the notification as it relates to the variation ends when the notice is given.

(4) A “confirmation notice” is a written notice confirming that the variation has effect as specified in the notification.

(5) A confirmation notice may relate to more than one variation.

Gibraltar regulator's initiative: rejecting a notification

26

(1) The appropriate UK regulator may not reject a notification unless—

(a) it is required to do so under sub-paragraph (3) or (4), or

(b) it has power to do under sub-paragraph (5).

(2) A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3) The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 24(1).

(4) The appropriate UK regulator must reject a notification if it would be required to do so by paragraph 18(2) or (3) if the notification were a notification under Part 3 of this Schedule relating to—

(a) the Gibraltar-based person, and

(b) the activities that the person would have a Schedule 2A permission to carry on if the permission were varied as specified in the notification.

(5) The appropriate UK regulator may reject a notification if it would have power to do so under paragraph 19 or 20 if the notification were a notification under Part 3 of this Schedule relating to—

(a) the Gibraltar-based person, and

(b) the activities that the person would have a Schedule 2A permission to carry on if the permission were varied as specified in the notification.

(6) The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification.

UK regulator's initiative

27

(1) A UK regulator may exercise a power under this paragraph in relation to a Gibraltar-based person with a Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).

(2) The FCA may vary a Schedule 2A permission.

(3) The PRA may vary a PRA-authorised person's Schedule 2A permission.

(4) In the case of a person who is not a PRA-authorised person, the PRA may vary the person's Schedule 2A permission by adding an approved activity that is a PRA-regulated activity to those to which the permission relates.

(5) Where it adds an approved activity under sub-paragraph (4), the PRA may vary the person's Schedule 2A permission in any of the other ways described in paragraph 21(2).

Own-initiative conditions

28

(1) For the purposes of this Schedule, “the own-initiative conditions” are—

(a) in relation to the exercise of a power by the FCA, conditions A to C, and

(b) in relation to the exercise of a power by the PRA, conditions A to D.

(2) Condition A is that the UK regulator in question considers that—

(a) it is desirable to exercise the power in order to advance one or more of its objectives, and

(b) the Gibraltar regulator—

(i) is aware, or ought reasonably to be aware, of the reasons why the UK regulator considers that to be the case, and

(ii) has had time to take steps, or indicate what steps (if any) it is likely to take, in response.

(3) Condition B is that the UK regulator in question considers that—

(a) it is desirable to exercise the power in order to advance one or more of its objectives, and

(b) a delay in exercising the power would be materially detrimental to—

(i) the interests of consumers (as defined in section 1G), or

(ii) the soundness, stability and resilience of the UK financial system or a part of that system.

(4) Condition C is that the UK regulator in question considers that—

(a) the Gibraltar-based person is contravening, or has contravened, a rule made by the UK regulator or a requirement imposed on it by the UK regulator under Part 6 of this Schedule, and

(b) the contravention is not minor, having regard to the nature of the contravention or its consequences (or both).

(5) Condition D is that the PRA considers that—

(a) it is desirable to exercise the power in order to advance one or more of the PRA's objectives, and

(b) the Gibraltar-based person poses, or may pose, a risk to the soundness, stability and resilience of the UK financial system, or a part of that system, of a type specified for the purposes of this condition in the policy statement produced by the PRA under paragraph 71.

(6) In the case of the FCA, references in this paragraph to its objectives are references only to its operational objectives.

UK regulator's initiative: procedure

29

(1) The variation of a Schedule 2A permission under paragraph 27 takes effect—

(a) immediately, if the notice given under sub-paragraph (3) states that is the case,

(b) on such date as may be specified in the notice, or

(2) The variation of a Schedule 2A permission under paragraph 27 may be expressed to take effect immediately, or on a specified date, only if the UK regulator reasonably considers that it is necessary for the variation to take effect immediately or on that date, having regard to the own-initiative condition on which it is relying for the purposes of paragraph 27(1).

(3) If a UK regulator—

(a) proposes to vary a Schedule 2A permission under paragraph 27, or

(b) varies a Schedule 2A permission under that paragraph with immediate effect,

it must give the Gibraltar-based person a written notice.

(4) The notice must—

(a) give details of the variation,

(b) state the UK regulator's reasons for varying the permission,

(c) inform the Gibraltar-based person that the person may make representations to the UK regulator within the period specified in the notice (whether or not the Gibraltar-based person has referred the matter to the Tribunal),

(d) inform the Gibraltar-based person of when the variation of the permission takes effect, and

(e) inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(5) The UK regulator may extend the period allowed under the notice for making representations.

(6) If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a) to vary the permission in the way proposed, or

(b) if the permission has been varied, not to rescind its variation,

it must give the Gibraltar-based person a written notice.

(7) A notice under sub-paragraph (6) must inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(8) If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a) not to vary the permission in the way proposed,

(b) to vary the permission in a different way, or

it must give the Gibraltar-based person a written notice.

(9) A notice under sub-paragraph (8)(b) must comply with sub-paragraph (4).

(10) If a notice under this paragraph informs a person of the person's right to refer a matter to the Tribunal, it must give an indication of the procedure for such a reference.

(11) For the purposes of sub-paragraph (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).

Right to refer matters to the Tribunal

30

A Gibraltar-based person who is aggrieved by the exercise by a UK regulator of a power under paragraph 27 in relation to the person may refer the matter to the Tribunal.

PART 5 — Cancellation of permission

Cancellation of permission

31

A Schedule 2A permission may be cancelled in accordance with this Part of this Schedule—

(a) on the initiative of the Gibraltar regulator (see paragraphs 32 to 36), or

(b) on the initiative of a UK regulator (see paragraphs 37 to 39).

Gibraltar regulator's initiative: notification

32

(1) If the appropriate UK regulator receives a notification from the Gibraltar regulator requesting the cancellation of a Gibraltar-based person's Schedule 2A permission (see paragraph 34), the permission is cancelled when the period for considering the notification ends (see paragraph 35).

(2) A Schedule 2A permission is not cancelled under sub-paragraph (1) if, during the period for considering the notification—

(a) the appropriate UK regulator rejects the notification (see paragraph 36), or

(b) the Gibraltar regulator withdraws the notification.

(3) References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

Gibraltar regulator's initiative: the appropriate UK regulator

33

In relation to a notification, “the appropriate UK regulator” means—

(a) the PRA, in a case where the Gibraltar-based person is a PRA-authorised person, and

(b) the FCA, in any other case.

Gibraltar regulator's initiative: notifying the UK regulator

34

A notification must—

(a) state the reason for requesting the cancellation of the permission,

(b) state that the Gibraltar regulator consents to the cancellation, and

(c) contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

Gibraltar regulator's initiative: considering a notification

35

(1) Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.

(2) The period for considering a notification is—

(a) where the Schedule 2A permission relates to one or more activities carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b) otherwise, the period of one month beginning with that day.

(3) If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of the notification, then the period for considering the notification ends when the notice is given.

(4) A “confirmation notice” is a written notice confirming that the Schedule 2A permission is cancelled.

Gibraltar regulator's initiative: rejecting a notification

36

(1) The appropriate UK regulator may not reject a notification unless—

(a) it is required to do so under sub-paragraph (3), or

(b) it has power to do under sub-paragraph (4) or (5).

(2) A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3) The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy a requirement in paragraph 34.

(4) The FCA may reject a notification if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.

(5) The PRA may reject a notification if it appears to the PRA that it is desirable to do so in order to advance one or more of its objectives.

(6) The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification.

UK regulator's initiative

37

(1) The FCA may cancel a Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).

(2) The PRA may cancel a PRA-authorised person's Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).

(3) The appropriate UK regulator must cancel a Schedule 2A permission where—

(a) the permission no longer enables the person to carry on an approved activity (whether by virtue of paragraph 13 or otherwise), and

(b) the UK regulator is satisfied that it is no longer necessary to keep the permission in force.

(4) In this paragraph, “the appropriate UK regulator” means—

(a) the PRA, in a case where the Gibraltar-based person is a PRA-authorised person, and

(b) the FCA, in any other case.

UK regulator's initiative: procedure

38

(1) If a UK regulator proposes to cancel a Gibraltar-based person's Schedule 2A permission under paragraph 37, it must give the person a warning notice.

(2) If a UK regulator decides to cancel a Gibraltar-based person's Schedule 2A permission under paragraph 37, it must give the person a decision notice.

Right to refer matters to the Tribunal

39

If a UK regulator gives a Gibraltar-based person a decision notice under paragraph 38, the person may refer the matter to the Tribunal.

PART 6 — Requirements

Requirements

40

(1) A requirement may be imposed on a Gibraltar-based person in accordance with this Part of this Schedule—

(a) by a UK regulator as part of the process of considering a notification under Part 3 or 4 of this Schedule (see paragraphs 41 to 43),

(b) on the initiative of the Gibraltar regulator (see paragraphs 44 to 48), or

(2) Requirements imposed on a Gibraltar-based person in accordance with this Part of this Schedule may be varied or cancelled in accordance with this Part of this Schedule—

(a) on the initiative of the Gibraltar regulator (see paragraphs 44 to 48), or

(b) on the UK regulator's initiative (see paragraphs 49 to 52).

Imposing requirements in connection with Part 3 or 4 notification

41

(1) This paragraph applies where a UK regulator has received—

(a) a notification for the purposes of paragraph 12 in respect of the carrying on of an activity by a Gibraltar-based person, or

(b) a notification for the purposes of paragraph 22 in respect of the variation of a Gibraltar-based person's Schedule 2A permission.

(2) A UK regulator may exercise the powers under this paragraph where it considers that it is desirable to do so in order to advance one or more of its objectives.

(3) The FCA may impose requirements on the Gibraltar-based person.

(4) The PRA may impose requirements on the Gibraltar-based person if—

(a) the notification mentioned in sub-paragraph (1) relates to activities which consist of or include PRA-regulated activities, or

(b) the Gibraltar-based person is a PRA-authorised person.

(5) A requirement may not be imposed under this paragraph—

(a) after the end of the period for considering the notification mentioned in sub-paragraph (1), or

(b) so as to take effect before the end of that period.

(6) In the case of the FCA, the reference in this paragraph to its objectives is a reference only to its operational objectives.

Imposing requirements in connection with Part 3 or 4 notification: procedure

42

(1) If a UK regulator proposes to impose a requirement on a Gibraltar-based person under paragraph 41, it must—

(a) give the person a warning notice,

(b) give the Gibraltar regulator a written notice of the proposed requirement, stating the UK regulator's reasons for imposing the requirement, and

(2) If a UK regulator decides to impose a requirement on a Gibraltar-based person under paragraph 41, it must give the person a decision notice.

Right to refer matters to the Tribunal

43

If a UK regulator gives a Gibraltar-based person a decision notice under paragraph 42, the person may refer the matter to the Tribunal.

Gibraltar regulator's initiative: notification

44

(1) If the appropriate UK regulator receives a notification from the Gibraltar regulator (see paragraph 46)—

(a) asking for a requirement to be imposed on a Gibraltar-based person with a Schedule 2A permission, or

(b) asking for a requirement imposed on a Gibraltar-based person with a Schedule 2A permission to be varied or cancelled,

the requirement is imposed, varied or cancelled as specified in the notification at the end of the period for considering the notification, as it relates to the requirement (see paragraph 47).

(2) The requirement is not imposed, varied or cancelled under sub-paragraph (1) if, during the period for considering the notification—

(a) the appropriate UK regulator rejects the notification, as it relates to the requirement (see paragraph 48), or

(b) the Gibraltar regulator withdraws the notification, as it relates to the requirement.

(3) References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph, except where otherwise stated.

Gibraltar regulator's initiative: the appropriate UK regulator

45

In relation to a notification, “the appropriate UK regulator” means—

(a) the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b) the FCA, in any other case.

Gibraltar regulator's initiative: notifying the UK regulator

46

A notification must—

(a) state the requirement to be imposed or the desired variation or cancellation (as appropriate),

(b) state the reason for asking for the requirement to be imposed, varied or cancelled,

(d) contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

Gibraltar regulator's initiative: considering a notification

47

(1) Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.

(2) The period for considering a notification is—

(a) so far as it relates to a requirement to be imposed on a Gibraltar-based person with a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b) so far as it relates to any other requirement, the period of one month beginning with that day.

(3) If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of a requirement specified in the notification, then the period for considering the notification as it relates to the requirement ends when the notice is given.

(4) A “confirmation notice” is a written notice confirming that the requirement is imposed, varied or cancelled as requested in the notification.

Gibraltar regulator's initiative: rejecting a notification

48

(1) The appropriate UK regulator may not reject a notification so far as it relates to a requirement unless—

(a) it is required to do so under sub-paragraph (3), or

(b) it has power to do under sub-paragraph (4) or (5).

(2) A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3) The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 46.

(4) The FCA may reject a notification, so far as it relates to a requirement, if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.

(5) The PRA may reject a notification, so far as it relates to a requirement, if it appears to the PRA that it is desirable to do so in order to advance one or more of its objectives.

(6) The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification in respect of the same requirement.

UK regulator's initiative: imposing, varying and cancelling requirements

49

(1) A UK regulator may exercise the powers under this paragraph in relation to a Gibraltar-based person only where one of the own-initiative conditions is satisfied (see paragraph 28).

(2) The FCA may—

(a) impose a requirement on a Gibraltar-based person with a Schedule 2A permission,

(b) vary a requirement imposed by the FCA under this Part of this Schedule, or

(3) The PRA may—

(a) impose a requirement on a Gibraltar-based person with a Schedule 2A permission where the person is a PRA-authorised person,

(b) vary a requirement imposed by the PRA under this Part of this Schedule, or

UK regulator's initiative: procedure for imposing or varying requirements

50

(1) The imposition or variation of a requirement under paragraph 49 takes effect—

(a) immediately, if the notice given under sub-paragraph (3) states that is the case,

(b) on such date as may be specified in the notice, or

(2) The imposition or variation of a requirement under paragraph 49 may be expressed to take effect immediately, or on a specified date, only if the UK regulator reasonably considers that it is necessary for the imposition or variation of the requirement to take effect immediately or on that date, having regard to the own-initiative condition on which it is relying for the purposes of paragraph 49(1).

(3) If a UK regulator—

(a) proposes to exercise the power under paragraph 49 to impose a requirement on a Gibraltar-based person, or vary a requirement imposed on a Gibraltar-based person, or

(b) exercises that power so as to impose a requirement on a Gibraltar-based person, or vary a requirement imposed on a Gibraltar-based person, with immediate effect,

it must give the person a written notice.

(4) The notice must—

(a) give details of the requirement or its variation,

(b) state the UK regulator's reasons for imposing or varying the requirement,

(c) inform the Gibraltar-based person that the person may make representations to the UK regulator within the period specified in the notice (whether or not the Gibraltar-based person has referred the matter to the Tribunal),

(d) inform the Gibraltar-based person of when the imposition or variation of the requirement takes effect, and

(e) inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(5) The UK regulator may extend the period allowed under the notice for making representations.

(6) If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a) to impose the requirement or vary the requirement in the way proposed, or

(b) if the requirement has been imposed or varied, not to rescind its imposition or variation,

it must give the Gibraltar-based person a written notice.

(7) A notice under sub-paragraph (6) must inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.

(8) If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—

(a) not to impose the requirement or vary the requirement in the way proposed,

(b) to impose a different requirement or vary the requirement in a different way, or

it must give the Gibraltar-based person a written notice.

(9) A notice under sub-paragraph (8)(b) must comply with sub-paragraph (4).

(10) If a notice under this paragraph informs a person of the person's right to refer a matter to the Tribunal, it must give an indication of the procedure for such a reference.

(11) For the purposes of sub-paragraph (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).

UK regulator's initiative: procedure for cancellation

51

(1) If a UK regulator proposes to exercise a power under paragraph 49 to cancel a requirement imposed on a Gibraltar-based person, it must give the person a written notice.

(2) The notice must specify the date on which the cancellation takes effect.

Right to refer matters to the Tribunal

52

A Gibraltar-based person who is aggrieved by the exercise by a UK regulator of a power under paragraph 49 to impose a requirement on the person, or vary a requirement imposed on the person, may refer the matter to the Tribunal.

Assets requirements

53

(1) This paragraph makes provision about a requirement imposed on a Gibraltar-based person (“G”) by a UK regulator under this Part of this Schedule—

(a) prohibiting the disposal of, or other dealing with, any of G's assets (whether in the United Kingdom, Gibraltar or elsewhere) or restricting such disposals or dealings, or

(b) requiring that some or all of G's assets, or some or all assets belonging to consumers (as defined in section 1G) but held by G or to G's order, must be transferred to and held by a trustee approved by the UK regulator.

(2) If a UK regulator—

(a) imposes a requirement described in sub-paragraph (1)(a), and

(b) gives notice of the requirement to an institution with whom G keeps an account,

the notice has the effects set out in sub-paragraph (3).

(3) Those effects are that—

(a) the institution does not act in breach of a contract with G if, having been instructed by G (or on G's behalf) to transfer a sum or otherwise make a payment out of G's account, it refuses to do so in the reasonably held belief that complying with the instruction would be incompatible with the requirement, and

(b) if the institution complies with such an instruction, it is liable to pay to the UK regulator an amount equal to the amount transferred from, or otherwise paid out of, G's account in contravention of the requirement.

(4) If a UK regulator imposes a requirement described in sub-paragraph (1)(b), no assets held by a person as trustee in accordance with the requirement may, while the requirement is in force, be released or dealt with except with the consent of the UK regulator.

(5) If, while a requirement described in sub-paragraph (1)(b) is in force, G creates a charge over any assets of G held in accordance with the requirement, the charge is (to the extent that it confers security over the assets) void against the liquidator and G's creditors.

(6) Assets held by a person as trustee are to be taken to be held by the trustee in accordance with a requirement mentioned in sub-paragraph (1)(b) only if—

(a) G has given the trustee a written notice that those assets are to be held by the trustee in accordance with the requirement, or

(b) they are assets into which assets to which paragraph (a) applies have been transposed by the trustee on the instruction of G.

(7) A person who contravenes sub-paragraph (4) commits an offence and is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.

(8) In this paragraph, references to imposing a requirement (however expressed) include imposing a requirement by varying an existing requirement.

(9) In this paragraph, “charge” includes a mortgage (or, in Scotland, a security over property).

(10) Sub-paragraphs (4) and (6) do not affect any equitable interest or remedy in favour of a person who is a beneficiary of a trust as a result of a requirement described in sub-paragraph (1)(b).

Further provision about requirements

54

(1) A requirement imposed on a Gibraltar-based person under this Part of this Schedule may, among other things, be imposed so as to require the person—

(a) to take specified action, or

(b) to refrain from taking specified action.

(2) A requirement imposed under this Part of this Schedule may extend to activities which are not approved activities.

(3) A requirement imposed on a Gibraltar-based person under this Part of this Schedule may be imposed by reference to the person's relationship with—

(a) the person's group, or

(b) other members of the person's group.

(4) A requirement imposed under this Part of this Schedule may be expressed to expire at the end of a specified period (but the imposition of such a requirement does not affect the UK regulator's powers to impose a new requirement).

(5) A requirement imposed on a Gibraltar-based person under this Part of this Schedule may refer to the past conduct of the person (for example, by requiring the person concerned to review or take remedial action in respect of past conduct).

Contravention of requirement imposed under this Part

55

(1) Contravention of a requirement imposed under this Part of this Schedule does not—

(a) make a person guilty of an offence,

(b) make a transaction void or unenforceable, or

(2) A contravention of a requirement imposed under this Part of this Schedule is actionable at the suit of a person who suffers loss as a result of the contravention where—

(a) the action would be brought at the suit of a private person, or

(b) the conditions in sub-paragraph (3) are met,

subject to the defences and other incidents applying to actions for breach of statutory duty.

(3) The conditions mentioned in sub-paragraph (2)(b) are that—

(a) the action would be brought by a person acting in a fiduciary or representative capacity on behalf of a private person, and

(b) any remedy would be exclusively for the benefit of that private person and could not be obtained through an action brought otherwise than at the suit of the person acting in a fiduciary or representative capacity.

(4) Sub-paragraph (2) does not apply where the requirement contravened is a requirement to have or maintain financial resources.

(5) In this paragraph, “private person” has such meaning as may be prescribed.

PART 7 — Changes

Duty to notify UK regulators of changes

56

(1) A UK regulator may direct that a change relating to a Gibraltar-based person with a Schedule 2A permission is subject to the requirements in this paragraph.

(2) A direction under sub-paragraph (1) may only be given in relation to a change relating to a matter about which information must be provided in a notification given to the UK regulator for the purposes of paragraph 12 or 22 (see paragraphs 15 and 24).

(3) Where, by virtue of a direction under sub-paragraph (1), a change is subject to the requirements in this paragraph, a Gibraltar-based person with a Schedule 2A permission must notify the following of the change—

(a) the Gibraltar regulator;

(b) the UK regulator that gave the direction.

(4) A direction under sub-paragraph (1) in respect of a change may specify when the action described in sub-paragraph (3) must be taken in connection with the change.

(5) If a direction in respect of a change does not specify when the action described in sub-paragraph (3) must be taken in connection with the change, the action must be taken—

(a) before the change is made, where that is reasonably practicable, or

(b) otherwise, as soon as reasonably practicable after the change is made.

(6) A direction under this paragraph—

(a) may make different provision for different purposes, but

(b) may not make provision in relation to a specific Gibraltar-based person.

(7) A UK regulator that gives a direction under this paragraph may, by a further direction, vary or revoke the direction.

(8) The FCA must consult the Treasury before giving a direction under this paragraph.

(9) The PRA must consult the Treasury and the FCA before giving a direction under this paragraph.

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