Financial Services Act 2010

Objectives of FSA etc

Financial stability objective

1

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Enhancing public understanding of financial matters etc

2

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) If members of staff of the FSA are transferred to the consumer financial education body, the transfer is to be regarded for the purposes of TUPE as a relevant transfer, whether or not it would otherwise be so regarded.

• (8) In subsection (7)—

• “the consumer financial education body” has the same meaning as in section 6A of the Financial Services and Markets Act 2000,

• “the FSA” means the Financial Services Authority, and

• “TUPE” means the Transfer of Undertakings (Protection of Employment) Regulations 2006.

Meeting FSA’s regulatory objectives

3

• (1) The Financial Services and Markets Act 2000 is amended as follows.

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

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) In section 194 (general grounds on which power of intervention is exercisable)—

• (a) in subsection (1), for paragraph (c) substitute—

(c) it is desirable to exercise the power in order to meet any of its regulatory objectives.

, and

• (b) after that subsection insert—

(1A) For the purposes of subsection (1)(c) it does not matter whether there is a relationship between the incoming firm and the persons whose interests will be protected by the exercise of the power of intervention.

Remuneration of executives of authorised persons

Executives’ remuneration reports

4

• (1) The Treasury may make provision by regulations about the preparation, approval and disclosure of executives' remuneration reports.

• (2) An executives' remuneration report is a report containing information about—

• (a) the remuneration of relevant executives of an authorised person, or

• (b) anything connected with the remuneration of relevant executives of an authorised person.

• (3) The following are relevant executives of an authorised person—

• (a) officers of the authorised person,

• (b) employees of the authorised person who fall within a prescribed description, and

• (c) other individuals who have a prescribed connection with the authorised person.

• (4) The individuals who may fall within subsection (3)(c) include any description of—

• (a) individuals who provide services, or whose services are provided (directly or indirectly), to the authorised person, or

• (b) individuals who are officers or employees of a member of the same group as the authorised person.

• (5) Regulations under this section may apply in relation to a prescribed description of authorised person.

• (6) Regulations under this section are subject to affirmative resolution procedure.

Executives’ remuneration reports: supplementary

5

• (1) Regulations under section 4 may, in particular, make provision as to—

• (a) the information that must be contained in an executives' remuneration report,

• (b) how information is to be set out in the report, and

• (c) what is to be the auditable part of the report.

• (2) The information that may be required to be contained in an executives' remuneration report includes—

• (a) information corresponding to information that could be required by regulations under section 421 of the Companies Act 2006 to be contained in a directors' remuneration report, and

• (b) information comparing the remuneration of relevant executives of an authorised person with the remuneration of employees of the authorised person who fall within a prescribed description.

• (3) Regulations under section 4 may, in particular, make provision —

• (a) for the filing of executives' remuneration reports with the registrar of companies for any part of the United Kingdom or with the FSA, and

• (b) for the publication by the FSA of reports filed with it.

• (4) Regulations under section 4 may apply any provision made by or under the Companies Act 2006 relating to directors' remuneration reports, subject to such exceptions, adaptations and modifications as the Treasury consider appropriate.

• (5) The provisions that may be applied include provisions creating offences; but the regulations may not impose a liability for an offence which is more onerous than the liability for the offence under the applied provision.

• (6) Regulations under section 4 may provide that any requirement imposed on an authorised person by the regulations is to be treated for the purposes of prescribed provisions of the Financial Services and Markets Act 2000 as if it had been imposed on the person by a provision of that Act.

• (7) For the purposes of section 4 and this section—

• “authorised person” has the same meaning as in the Financial Services and Markets Act 2000 (see section 31),

• “the FSA” means the Financial Services Authority,

• “group” has the same meaning as in the Financial Services and Markets Act 2000 (see section 421),

• “officer”—in relation to a partnership, means a partner, andin relation to a body corporate whose affairs are managed by its members, means a member, and

• “prescribed” means specified in, or determined in accordance with, regulations under section 4.

Rules made by FSA about remuneration

6

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Recovery and resolution plans

Rules made by FSA about recovery and resolution plans

7

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Short selling

Power of FSA to prohibit, or require disclosure of, short selling

8

In the Financial Services and Markets Act 2000, after Part 8 insert—