The Financial Services and Markets Act 2000 (Misconduct and Appropriate Regulator) Order 2015

• Citation: S.I. 2015/1864
• Sections: 5

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Financial Services and Markets Act 2000 (Misconduct and Appropriate Regulator) Order 2015 and comes into force on 7th March 2016 except as provided in paragraphs (2) and (3).

(2) Article 2 comes into force immediately after section 66A of the 2000 Act comes into force on 7th March 2016.

(3) Paragraph (d) of new subsection (3A) of section 204A of the 2000 Act (inserted by article 3(4)) comes into force immediately after section 63E of the 2000 Act comes into force on 7th March 2017.

(4) In this Order “the 2000 Act” means the Financial Services and Markets Act 2000.

Section 2 Amendments to section 66A of the 2000 Act (misconduct: action by the FCA)

(1) Section 66A of the 2000 Act is amended as follows.

(2) At the end of subsection (4)(a) omit “or”.

(3) After subsection (4)(a) insert—

(aa) imposed by the Alternative Investment Fund Managers Regulations 2013 , or;

Section 3 Amendments to section 204A of the 2000 Act (meaning of “relevant requirement” and “appropriate regulator”)

(1) Section 204A of the 2000 Act is amended as follows.

(2) Omit subsection (3)(c).

(3) At the end of subsection (3) insert—

(d) a requirement under section 62A(2) where the authorised person concerned is a PRA-authorised person and the approval concerned was given by the PRA;

(e) a requirement under section 64B(2) or (5) where the conduct rules concerned are made by the PRA ;

(f) a requirement under section 64C(1) to notify the PRA that disciplinary action has been taken.

(4) After subsection (3) insert—

(3A) Either the PRA or the FCA is “the appropriate regulator” in the case of a contravention of—

(a) a requirement under section 59(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

(b) a requirement under section 60A(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA;

(c) a requirement under section 63(2A) where the approval concerned is within section 63(1A)(a) ;

(d) a requirement under section 63E(1) where the authorised person concerned is a PRA-authorised person and the function concerned is of a description specified in rules made by the PRA;

(e) a requirement under section 63F(1), (2), (4), (6) or (7) where the authorised person concerned is a PRA-authorised person and the certificate concerned relates to a function of a description specified in rules made by the PRA.

Section 4 Transitional provision: contravention of section 59(1) or (2) of the 2000 Act

(1) Paragraph (2) applies to a contravention of a requirement mentioned in paragraph (a) of section 204A(3A) of the 2000 Act (as inserted by article 3(4)) which—

(a) begins before 7th March 2016; and

(b) ends on or after that date.

(2) Section 204A(3A) applies in relation to the whole of the contravention, including the part of it occurring before 7th March 2016.

Section 5 Review

(1) The Treasury must from time to time—

(a) carry out a review of the relevant provisions of the 2000 Act;

(b) set out the conclusions of the review in a report, and

(c) publish the report.

(2) The relevant provisions of the 2000 Act are—

(a) section 66A (as amended by article 2);

(b) section 204A(3) (as amended by article 3, paragraphs (1) to (3));

(c) section 204A(3A) (as inserted by article 3(4)).

(3) The report must in particular—

(a) set out the objectives intended to be achieved by the regulatory provision made by sections 204A(3) and (3A) of the 2000 Act,

(b) assess the extent to which those objectives are achieved, and

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.

(4) The first report under this article must be published before the end of the period of five years beginning with the day on which this Order comes into force.

(5) Reports under this article are afterwards to be published at intervals not exceeding five years.