Financial Services and Markets Act 2000
Encyclopedia
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.
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
of the Parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
that created the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
(FSA) as a regulator for insurance, investment business and banking.
Outline
Some of the key sections of this act are:- Section 2 outlines the regulatory objectives of the FSA: (a) market confidence; (b) financial stability (c) public awareness; (d) the protection of consumers; and (e) the reduction of financial crime.
- 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.
- Section 59 states that a person cannot carry out certain controlling functions in a firm without approval by the FSA.
- Section 71 allows private persons to sue a firm for damages if a person performing a controlled function is not approved.
- Section 118 concerns market abuseMarket abuseMarket abuse may arise in circumstances where financial investors have been unreasonably disadvantaged, directly or indirectly, by others who:* have used information which is not publicly available...
.
- Section 132 establishes the Financial Services and Markets TribunalFinancial Services and Markets TribunalThe UK Financial Services and Markets Tribunal was an independent judicial body established under Section 132 of the Financial Services and Markets Act 2000, which heard references arising from decision notices issued by the Financial Services Authority ....
.
- Section 138 grants the FSA rule-making power.
- Section 150 allows private persons to sue for damages if an authorised firm has breached certain rules.
- Section 165 gives the FSA power to require certain information.
- Section 213 establishes the Financial Services Compensation SchemeFinancial Services Compensation SchemeThe Financial Services Compensation Scheme is a "statutory fund of last resort" in the United Kingdom, set up under the Financial Services and Markets Act 2000 to compensate customers of "authorised financial services firms" in the event of their insolvency. It consolidated previous compensation...
.
- Section 397 makes it a criminal offenceCrimeCrime is the breach of rules or laws for which some governing authority can ultimately prescribe a conviction...
to mislead a market or investors.
- Section 412 "Gaming contracts. (1) No contract to which this section applies is void or unenforceable because of– (a) Article 170 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985; or (2) This section applies to a contract if– (a) it is entered into by either or each party by way of business; (b) the entering into or performance of it by either party constitutes an activity of a specified kind or one which falls within a specified class of activity; and (c) it relates to an investment of a specified kind or one which falls within a specified class of investment. (3) Part II of Schedule 2 applies for the purposes of subsection (2)(c), with the references to section 22 being read as references to that subsection. (4) Nothing in Part II of Schedule 2, as applied by subsection (3), limits the power conferred by subsection (2)(c). (5) "Investment" includes any asset, right or interest. (6) "Specified" means specified in an order made by the Treasury."
See also
- Financial Services Act 1986Financial Services Act 1986The Financial Services Act 1986 was an Act of the Parliament of the United Kingdom passed by the government of Margaret Thatcher to regulate the financial services industry. The Act used a mixture of governmental regulation and self-regulation, and created a Securities and Investments Board ...
- UK company law
- UK commercial law
- UK banking law
External links
.- The Financial Services and Markets Act 2000
- Explanatory notes to the Financial Services and Markets Act 2000 from the Office of Public Sector Information.