Financial Services and Markets Act 2000
What this means for your business
- Applies to
- United Kingdom
- On this page
- 31 compliance obligations, 46 practical guides across 7 topics
What you must do
31 compliance obligations under this legislation — 2 can result in imprisonment.
Appointments 1
Appoint independent, UK‑based, FCA‑authorised manager and trustee
When you apply to the FCA to have a unit trust scheme authorised, you must make sure the scheme’s manager and trustee are two separate UK companies, each with a UK place of business, are already FCA‑authorised, and are fit‑and‑proper. You also need to provide the FCA with the trust deed and a solicitor’s certificate confirming the deed meets the required standards.
Management duties 4
Comply with FCA final notice
If the FCA has issued you a decision notice and later takes the action covered by that notice, it must send you a final notice that sets out exactly what you must do – for example pay a penalty, make a payment or distribution, publish a statement, or obey an order. You must follow the terms and meet the deadline shown in the notice (at least 14 days for penalties or payments). Failure can lead to the FCA recovering the amount as a debt or seeking an injunction.
Ensure management body members are reputable and competent
If your firm is a non‑authorised parent of an FCA‑regulated investment firm, you must take reasonable steps to make sure the people on your board or senior management have a good reputation and the right knowledge, skills and experience to carry out their duties effectively. This means carrying out checks before appointments and reviewing competence on an ongoing basis.
Obtain PRA consent before applying for a write‑down order
If your business (or you as an individual) wants to ask a court to reduce the liabilities of an insurer, you cannot do it on your own. You must first get written consent from the Prudential Regulation Authority (PRA) and, if you later wish to withdraw the application, you must also notify the PRA before seeking the court’s permission to withdraw.
Secure regulator approval for anyone performing a controlled function
Unlimited fineIf your firm is authorised to carry out regulated financial activities, you must make sure that anyone who carries out a ‘controlled function’ under any contract or arrangement has the FCA or PRA’s formal approval. This applies whether the person works for you directly or for a contractor you use.
Notifications 6
Notify FCA before acquiring control of a recognised investment exchange
If you plan to buy or increase your control of a UK‑recognised investment exchange, you must tell the FCA in writing before the deal completes. If you forget to give the pre‑deal notice, you must send a written notice within 14 days of actually taking control (or when you first realise you have). Failing to notify can lead to FCA enforcement action.
Notify FCA‑directed persons when scheme recognition is revoked or suspended
If the FCA cancels the recognition of your regulated scheme or issues a direction that takes effect, you must promptly inform the people the FCA tells you to. The notice must include any required details and be sent in the format the FCA specifies.
Notify FCA of any proposed alteration or change of operator/depositary
Unlimited fineIf you run an authorised contractual investment scheme, you must tell the FCA in writing before you change the scheme’s rules or replace the scheme’s operator or depositary (unless the change falls under specific exemptions). A solicitor must certify deed‑changing proposals, and you cannot implement the change until the FCA either gives written approval or a month passes without a warning from the FCA.
Notify FCA of material alterations and operator changes to recognised schemes
If you run a pension or other scheme that is recognised under the FSMA, you must tell the FCA in writing before you make any material change to the scheme, replace the operator, trustee or depositary, or change the scheme’s name, address or governing law. The FCA must either approve the change or you must wait a month for them to refuse before proceeding.
Notify regulator promptly if you stop acting as auditor or actuary
If you are an auditor or actuary and you are removed, resign, are not re‑appointed, or otherwise stop providing services to a regulated firm, you must immediately inform the FCA (or the PRA for PRA‑authorised firms). You also need to tell the regulator of any matters you think they should know about, or confirm there are none.
Notify relevant parties of any material error in a prospectus
If you are responsible for a prospectus that the FCA has approved and you discover a new factor, material mistake or material inaccuracy that could require a supplementary prospectus, you must promptly inform both the securities issuer and the person whose application the prospectus was approved on. This ensures the market receives up‑to‑date information and avoids regulatory breach.
Other requirements 1
Comply with designated activity rules for regulated services
Unlimited fineIf your business carries out a financial service that is classed as a designated activity, you must not do anything the regulations expressly forbid and you must follow all the specific rules and other requirements that apply to that activity. In practice this means checking the FCA’s designated‑activity regulations for your service and putting the necessary policies, procedures and records in place to demonstrate compliance.
Payments and fees 1
Pay FCA levy to recover devolved debt‑advice expenses
If your firm is an FCA‑authorised person, electronic money issuer or payment‑service provider, you may be required to pay a levy to the FCA to help recover the cost of debt‑advice services provided by the devolved authorities. The amount and timing will be set out in rules the FCA makes after the Treasury notifies it of the expenses.
Offences and prohibitions 7
Disclose confidential information unlawfully
2 years imprisonmentIf you disclose or use confidential information in breach of the Financial Services and Markets Act 2000 (for example breaching sections 348 or 350(5) or using information disclosed under the regulations), you commit a criminal offence. On conviction you can be sentenced to up to two years in prison and face an unlimited fine (or, on summary conviction, up to three months imprisonment and a fine). A defence is available if you had no knowledge of the confidentiality and took all reasonable steps to avoid the breach.
Fail to attend Tribunal summons or give evidence
Unlimited fineIf a person receives a summons from the Financial Services and Markets Tribunal and, without a reasonable excuse, does not attend or refuses to give evidence, they commit a criminal offence. On conviction in the magistrates’ court the person faces an unlimited fine, but no imprisonment.
Fail to notify FCA or breach acquisition restrictions
Unlimited fineIf you do not notify the FCA of an acquisition when required, make an acquisition before FCA approval, continue after approval has lapsed, give false material information, or breach a restriction notice, you commit a criminal offence. Conviction can lead to an unlimited fine, either on summary conviction in the Magistrates’ Court or on indictment in the Crown Court. There is no custodial sentence for these breaches.
Falsely claim to give pensions guidance
Unlimited fineIf you represent yourself as providing pensions guidance that has been arranged with the Secretary of State, when in fact you are not authorised to do so, you commit a criminal offence. A conviction (usually in the Magistrates' Court) can result in an unlimited fine. No prison term is attached to this summary‑only offence.
Give false or misleading information to FCA/PRA
Unlimited fineIf you knowingly or recklessly provide false or misleading information to the FCA or PRA when complying with any reporting requirement under the listed financial regulations, you commit a criminal offence. On conviction you can be fined – the fine is unlimited – whether the case is dealt with in a magistrates’ court (summary) or in the Crown Court (indictable).
Perform a function prohibited by a Part 9C order
Unlimited fineIf you carry out, or agree to carry out, a task that is barred by a Part 9C prohibition order, you commit a criminal offence. On summary conviction in a magistrates' court you face an unlimited fine. You can defend yourself by proving you took all reasonable steps to avoid the breach.
Provide false or misleading information to an appointed auditor or actuary
2 years imprisonmentIf your authorised financial services firm knowingly or recklessly gives an appointed auditor or actuary false or misleading information about a material matter, you (or any officer, controller or manager of the firm) commit a criminal offence. On summary conviction you can be jailed for up to six months, and on indictment you can face up to two years’ imprisonment, and in either case an unlimited fine may be imposed. The case can be heard either in the magistrates' court or the Crown Court.
Reporting and filing 10
Notify FCA of significant changes to senior manager responsibilities
If your firm has a senior manager whose FCA‑approved function changes in a material way after the approval was granted, you must tell the FCA about the change. You do this by sending an updated statement of responsibilities that reflects the new scope of the role.
Prepare and submit a PRA‑approved scheme report for ring‑fencing transfers
If your firm applies to the PRA for a ring‑fencing transfer, you must attach a scheme report. The report has to be prepared by a person the PRA deems suitably skilled and who has been nominated or approved, must use the PRA’s approved template, and must state whether anyone besides the transferor will be harmed and whether that harm is more than necessary. Failing to provide the report means your application will be rejected and you could face regulatory action.
Provide full disclosure in listing particulars for securities
Unlimited fineIf your company wants its shares or other securities to be listed on the official market, you must include every piece of information that investors and their advisers would reasonably need to judge your financial health, performance, future prospects and the rights attached to the securities. The information must be known to, or reasonably obtainable by, the person preparing the listing documents.
Provide information and assistance to the write‑down order manager when requested
If your insurer is under a write‑down order, the appointed manager can ask you – as a director, employee or service provider – for information or help to carry out their duties. You must give the requested data as soon as practicable. Failure to do so can be challenged in court.
Provide information to the FCA on request
Unlimited fineIf you run a section 271A scheme, you must give the FCA any information it asks for, at the times and in the format it tells you to, so the regulator can check your scheme meets the required conditions. The FCA can also tell you how to present or verify that information.
Provide information to the FCA when it may help the regulator
If you run a pension scheme, you must tell the FCA about any information you think could help the regulator meet its objectives. It’s a proactive duty – you don’t wait to be asked, you decide yourself when the information is relevant and then disclose it.
Publish reports of scheme determinations
If your business runs a financial services ombudsman scheme, you must publish a report each time the ombudsman makes a determination. You may not publish the report if the ombudsman says it would be inappropriate, and you must keep the complainant’s identity hidden unless they agree to disclose it. You can charge a reasonable fee for copies of the report.
Respond to FCA direction notices and make representations
If the FCA issues you a written direction under section 281 – whether it takes effect straight away or later – you must read the notice, submit any representations within the time‑frame set (or any extension), keep a record of the notice and your response, and you have the right to refer the matter to the Tribunal. Failure to act can lead to FCA enforcement action.
Respond to FCA/PRA warning notice within 14 days
If the FCA (or the PRA on behalf of the FCA) sends your firm a written warning notice, you must reply in writing within the time set in the notice – which cannot be less than 14 days. Your reply (or any representations) must be given to the regulator, and if the notice came from the PRA you must also send the FCA a copy or a record of what you said.
Submit annual report to the FCA
If your business operates as an overseas investment exchange or an overseas clearing house, you must send the FCA a report each year. The report must say whether any events have occurred that could affect the regulator’s view of your compliance and must include any other information the FCA may require by rule.
Training 1
Notify and train staff on FCA conduct rules
Unlimited fineIf your firm is authorised by the FCA, you must tell every employee, director and any approved person about the specific conduct rules that apply to them and make sure they understand them. This means providing clear written notices and suitable training so they know how to comply in their day‑to‑day work.
Penalties for non-compliance
13 penalties under this legislation. 2 can result in imprisonment. 13 carry an unlimited fine.
Disclose confidential information unlawfully
Unlimited fine and/or 2 years imprisonment
Provide false or misleading information to an appointed auditor or actuary
Unlimited fine and/or 2 years imprisonment
Secure regulator approval for anyone performing a controlled function
Unlimited fine
Notify FCA of any proposed alteration or change of operator/depositary
Unlimited fine
Comply with designated activity rules for regulated services
Unlimited fine
Fail to attend Tribunal summons or give evidence
Unlimited fine
Fail to notify FCA or breach acquisition restrictions
Unlimited fine
Falsely claim to give pensions guidance
Unlimited fine
Give false or misleading information to FCA/PRA
Unlimited fine
Perform a function prohibited by a Part 9C order
Unlimited fine
Provide full disclosure in listing particulars for securities
Unlimited fine
Provide information to the FCA on request
Unlimited fine
Notify and train staff on FCA conduct rules
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sector-Specific 29
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Cyber security for financial services firms
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Access the Lloyd's of London insurance market
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Run an MOT Testing Station
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FCA Consumer Duty: compliance requirements
How to implement the FCA Consumer Duty in your firm. Covers the four outcomes (products/services, price/value, consumer understanding, …
Start a construction business
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Use FCA innovation services to test and launch fintech products
How to use the FCA's innovation support services including the Regulatory Sandbox, Digital Sandbox, and Innovation Pathways. For …
Get FCA authorisation for financial services
How to apply for Financial Conduct Authority authorisation to carry on regulated financial activities. Covers the application process, …
Farm health and safety essentials
Essential health and safety requirements for farmers and farm workers. Covers legal duties, risk assessment, the top causes …
Financial services regulation and FCA authorisation
Regulatory requirements for financial services businesses.
FCA authorisation for insurance brokers
How to get FCA authorisation as an insurance intermediary. Covers Insurance Distribution Directive requirements, permission types, professional indemnity …
Meet FCA threshold conditions for authorisation
Understand and demonstrate compliance with the five statutory threshold conditions required for FCA authorisation under Schedule 6 of …
Running a crowdfunding or P2P lending platform
How to get FCA authorisation to operate a loan-based (P2P) or investment-based crowdfunding platform. Covers capital requirements, investor …
Fintech regulation and FCA authorisation
How to navigate FCA regulation for fintech businesses. Covers e-money and payment services, Open Banking, crypto-assets, and innovation …
Start an insurance broking business
How to set up an insurance broking business in the UK. Covers FCA authorisation versus Appointed Representative routes, …
FCA consumer credit authorisation
How to get FCA authorisation to offer consumer credit, including lending, credit broking, and debt collection. Covers application …
Understanding UK consumer credit regulation
What consumer credit regulation is, why it exists, and who it applies to. Covers the relationship between the …
Meet pre-contract disclosure requirements for credit
How to provide the required pre-contract information to borrowers before entering a consumer credit agreement. Covers the SECCI …
Understand how the Consumer Duty applies to credit products
How the FCA Consumer Duty applies to consumer credit providers, brokers, and debt collectors. Explains the four outcomes …
Conduct and document affordability assessments for consumer credit
How to conduct, evidence, and document affordability assessments when lending to consumers. Covers the distinction between creditworthiness and …
Comply with debt collection rules
How to collect consumer debts compliantly under FCA rules. Covers CONC 7 requirements for arrears and default handling, …
Comply with high-cost short-term credit rules
Additional compliance requirements for firms providing high-cost short-term credit (HCSTC), including the price cap regime, enhanced affordability assessments, …
Consumer credit compliance checklist
Annual compliance checklist for consumer credit firms covering FCA permissions, CONC requirements, advertising, pre-contract obligations, Consumer Duty, complaints …
Comply with credit broking rules
How to comply with FCA credit broking requirements. Covers who counts as a credit broker, the difference between …
Hire purchase and conditional sale agreements
How hire purchase and conditional sale agreements work under UK consumer credit law. Covers title retention, the one-third …
Buy Now Pay Later regulation: what businesses need to know
Buy Now Pay Later (BNPL) and other Deferred Payment Credit products come under FCA regulation from 15 July …
Comply with credit advertising rules
How to advertise consumer credit products compliantly under FCA rules. Covers representative APR requirements, triggered information, social media …
Consumer credit rates and thresholds reference
Quick reference for consumer credit rates, thresholds, and regulatory limits. Covers Section 75 thresholds, HCSTC price cap, FCA …
AI compliance for financial services firms
How FCA-regulated firms must govern AI through Consumer Duty, SM&CR, and operational resilience frameworks. Covers model risk management, …
Compliance & Legal 7
Business insurance: what you need
Understanding mandatory and recommended insurance for your business, including employers' liability, public liability, professional indemnity, and sector-specific cover.
Employers' liability insurance: the complete guide
A comprehensive guide to employers' liability insurance, explaining who must have it, who is exempt, what it covers, …
Choosing the right business insurance
A step-by-step decision guide to help small businesses identify which insurance they need, from mandatory cover like employers' …
Reviewing and renewing business insurance
How to review, compare, and renew your business insurance each year. Covers the renewal timeline, your disclosure obligations …
Professional registrations: regulated sectors
Which business sectors require professional or regulator registration before trading, what the registration process involves, and how long …
Approvals and registrations you need before trading
Understanding the approvals, registrations, and licences your business needs before you can legally start trading. Covers universal registrations, …
Pre-trading compliance checklist
A concise yes/no checklist to verify you have completed all mandatory pre-trading requirements, including business registration, tax, insurance, …
Tax & Finance 3
Raising equity investment
How to attract investment from angel investors, VCs, and crowdfunding platforms in exchange for company shares.
Banking regulation and PRA authorisation
Dual PRA and FCA authorisation requirements for UK banks, including capital requirements, mobilisation routes, and ongoing regulatory obligations …
Payment systems and banking protections for businesses
How the Financial Services (Banking Reform) Act 2013 protects your business through the Payment Systems Regulator, FSCS deposit …
Premises & Operations 3
Business insurance types quick reference
Quick-lookup reference of common business insurance types, showing which are legally required, recommended, or optional. Use this to …
Professional indemnity insurance for businesses
Professional indemnity (PI) insurance protects your business against claims of negligent advice, errors, or omissions that cause a …
Making a business insurance claim
Step-by-step guide to making a business insurance claim, from immediate actions in the first 24 hours through to …
Digital & Technology 2
Tech Sector Licensing and Authorisations
Comprehensive guide to licences and regulatory authorisations required for technology businesses - telecommunications, financial services, intellectual property, export …
Cryptoasset Business Regulation
Regulatory requirements for cryptoasset businesses in the UK - how token classification determines whether you need full FCA …
Employment & HR 1
Sections and provisions
490 classified provisions from this legislation.
Duties 85
- s.1M The FCA's general duty to consult
- s.1A The Financial Conduct Authority other enactment
- s.1RA Statement of policy on panel appointments
- s.1N The FCA Practitioner Panel
- s.2NA Statement of policy on panel appointments
- s.2N Duty to consider representations
- s.2MA The Insurance Practitioner Panel
- s.2C Insurance objective
- s.2H Secondary objectives and duty to have regard to regulatory principles
- s.2K Arrangements for supervision of PRA-authorised persons
- s.3C Duty to follow principles of good governance
- s.3RD Report on certain reviews amendments should be made
- s.3P Consultation by regulator complying with direction
- s.3O Further provisions about directions under section 3M of the authorised persons
- s.55W Applications under this Part: communications between regulators
- s.59 Approval for particular arrangements.
- s.62A Changes in responsibilities of senior managers
- s.63ZC Exercise of power under section 63ZB: procedure
- s.63C Statement of policy
- s.64B Rules of conduct: responsibilities of ... authorised persons
- ... and 65 more duties
Offences and penalties 9
- Schedule 13 General
- s.71P Designated activities: liability
- s.142V Imposition of penalties under section 142S: statement of policy
- s.143V Offence of breaching a Part 9C prohibition order
- s.301L Offences under this Chapter
- s.333G Offence of falsely claiming to be giving pensions guidance under arrangements made with Secretary of State
- s.346 Provision of false or misleading information to auditor or actuary.
- s.352 Offences.
- s.398 Misleading FCA or PRA : residual cases.
Powers 110
- s.1S Reviews
- s.1T Right to obtain documents and information
- s.3K Revocation of directions under section 3I or 3J
- s.3H Parliamentary control of orders under section 3G
- s.3B Regulatory principles to be applied by both regulators
- s.22B Parliamentary control in relation to certain orders under section 22A
- s.55H Variation by FCA at request of authorised person
- s.55E Giving permission: the FCA
- s.55N Requirements under section 55L or 55M: further provisions
- s.59AB Specifying functions as controlled functions: transitional provision
- s.63ZB Variation of senior manager's approval on initiative of regulator
- s.63 Withdrawal of approval.
- s.64A Rules of conduct
- s.71Q Designated activities: enforcement
- s.77 Discontinuance and suspension of listing.
- s.87K Power to suspend , restrict or prohibit offer to the public
- s.87L Power to suspend , restrict or prohibit admission to trading on a regulated market
- s.87JA Power to suspend scrutiny of prospectus
- s.89U Powers exercisable to advance operational objectives
- s.89J Power to call for information: supplementary provisions
- ... and 90 more powers
Definitions 79
- s.1G Meaning of “consumer” consumers
- s.1Q The Consumer Panel
- s.1B The FCA's general duties General guidance
- s.2F Interpretation of references to objectives
- s.3T Interpretation
- s.3RB Statement of policy relating to review of rules statutory panel
- Schedule 3 EEA Passport Rights The single market directives The insurance distribution directive The UCITS directive
- Schedule 11 The general rule Public authority Takeover offer The takeover provisions
- Schedule 12 Transfer schemes: certificates Necessary margin of solvency Margin of solvency Relevant authority
- s.19 The general prohibition.
- s.22 Regulated activities Specified benchmark
- s.31 Authorised persons. authorised person
- s.39 Exemption of appointed representatives. qualifying activity relevant additional activity appointed representative
- s.39A Certain tied agents operating outside United Kingdom relevant office
- s.55K Investment firms: particular conditions that enable cancellation
- s.55A Application for permission
- s.55PB Requirements relating to general meetings the appropriate regulator bank building society
- s.55M Imposition of requirements by PRA
- s.55V Determination of applications insurance distribution activity
- s.57 Prohibition orders: procedure and right to refer to Tribunal. recognised body
- ... and 59 more definitions
Exemptions 41
- s.1JA Recommendations by Treasury in connection with general duties
- s.3RC Requirement to review specified rules
- s.3RA Duty of FCA and PRA to review rules
- s.27 Agreements made through unauthorised persons.
- s.131Q Provision of reports to assist the Treasury
- s.137N Recovery plans and resolution packs : restriction on duty of confidence
- s.138JA PRA Cost Benefit Analysis Panel
- s.138JB Statement of policy in relation to cost benefit analyses
- s.138BA Disapplication or modification of rules in individual cases
- s.138L Consultation: general exemptions
- s.138IA FCA Cost Benefit Analysis Panel
- s.138IB Statement of policy in relation to cost benefit analyses
- s.138I Consultation by the FCA
- s.142A “Ring-fenced body”
- s.143D Duty to make rules applying to parent undertakings
- s.144E Exceptions from sections 144C and 144D etc
- s.165C Orders under section 165A(2)(d)
- s.166A Appointment of skilled person to collect and update information
- s.184 Disregarded holdings
- s.191B Restriction notices
- ... and 21 more exemptions