UK Act of Parliament 2023 United Kingdom

FSMA 2023

Financial Services and Markets Act 2023

What this means for your business

2 obligations
1 penalties
Enforced by
FCA, PRA, PSR
Applies to
United Kingdom
On this page
2 compliance obligations
Read full text on legislation.gov.uk

What you must do

2 compliance obligations under this legislation.

Management duties 1

Act on Bank of England directions for your CCP

If you run a central counterparty, the Bank of England can issue you directions to fix financial problems. You must follow those directions, which may involve changing contracts, limiting losses, selling assets or even changing your company structure, and you need to keep records of what you did. The Bank will decide how soon you must act.

Any Person Schedule 11 FCA When the Bank of England gives a written direction to a CCP

Offences and prohibitions 1

Perform a function in breach of a Part‑18 prohibition order

Unlimited fine

If an individual carries out, or agrees to carry out, a function that a regulator has barred them from under a Part‑18 prohibition order, they commit a criminal offence. conviction leads to an unlimited fine (summary conviction in England & Wales, Scotland and Northern Ireland) but no prison term.

Any Person Schedule 10 FCA

Penalties for non-compliance

1 penalty under this legislation. 1 carry an unlimited fine.

Unlimited fine

Perform a function in breach of a Part‑18 prohibition order

Unlimited fine

Summary only Schedule 10 Penalises: Perform a function in breach of a Part‑18 …

Guidance

We are still building practical guidance for this legislation.

Read the full text on legislation.gov.uk

Sections and provisions

101 classified provisions from this legislation.

5 Duties 2 Offences and penalties 7 Powers 8 Definitions 8 Exemptions

Duties 5

  • s.14 Reports on FMI sandboxes
  • s.29 Review of rules FCA and PRA
  • s.49 Bank of England: rule-making powers Bank of England
  • s.79 Forest risk commodities: review
  • Schedule 11 Central counterparties requiring the parent company

Offences and penalties 2

  • s.23 Digital settlement assets: power to make regulations
  • Schedule 10 Performance of functions relating to financial market infrastructure

Powers 7

  • s.3 Power to make further transitional amendments
  • Schedule 3 New Schedule 6B to FSMA 2000
  • s.13 Testing of FMI technologies or practices
  • s.16 Regulations
  • s.24 Implementation of mutual recognition agreements
  • s.47 Panel reports
  • s.67 Power to amend or repeal certain provisions of FSMA 2000

Definitions 8

  • s.7 Interpretation of Chapter EU directive legislation regulator
  • Schedule 9 Wholesale cash distribution wholesale cash distribution cash issuing authority
  • s.17 Interpretation regulator Relevant enactment this group of sections
  • s.36 Public consultation requirements statutory panel
  • s.41 Listing Authority Advisory Panel transferable securities
  • s.48 Exercise of FMI regulatory powers FMI entities FMI services FSMA 2000
  • s.80 Interpretation domestic law enactment FCA
  • Schedule 4 FMI Sandboxes

Exemptions 8

  • s.4 Power to restate and modify saved legislation
  • s.5 Power to replace references to EU directives
  • s.6 Restatement in rules: exemption from consultation requirements etc
  • s.15 Permanent implementation of arrangements tested under an FMI sandbox
  • s.33 Effect of rules etc on international trade obligations
  • s.77 Politically exposed persons: money laundering and terrorist financing
  • s.83 Power to make consequential provision
  • s.84 Regulations