The Financial Services and Markets Act 2000
c 8
is an Act of the

Parliament of the United Kingdom The Parliament of the United Kingdom is the supreme legislative body of the United Kingdom, the Crown Dependencies and the British Overseas Territories. It meets at the Palace of Westminster, London. It alone possesses legislative suprem ...

that created the

Financial Services Authority The Financial Services Authority (FSA) was a quasi-judicial body accountable for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investments Board (SIB) in 19 ...

(FSA) as a regulator for insurance, investment business and banking, and the

Financial Ombudsman Service The Financial Ombudsman Service is an ombudsman in the United Kingdom. It was established in 2000, and given statutory powers in 2001 by the Financial Services and Markets Act 2000, to help settle disputes between consumers and UK-based b ...

to resolve disputes as a free alternative to the courts. The Act was considerably amended by the

Financial Services Act 2012 The Financial Services Act 2012 is an Act of the Parliament of the United Kingdom which implements a new regulatory framework for the financial system and financial services in the UK. It replaces the Financial Services Authority with two new re ...

and the Bank of England and Financial Services Act 2016.

Some of the key sections of this act are: ;Part I The Regulator * Section 1A outlines the regulatory objectives of the

Financial Conduct Authority The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financ ...

: (a) market confidence; (b) financial stability (c) public awareness; (d) the protection of consumers; and (e) the reduction of

financial crime Financial crime is crime committed against property, involving the unlawful conversion of the ownership of property (belonging to one person) to one's own personal use and benefit. Financial crimes may involve fraud ( cheque fraud, credit card fra ...

. * Section 2A establishes the Prudential Regulation Authority ;Part II Regulated And Prohibited Activities * 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. ;Part III Authorisation and Exemption ;Part IVA Permission to Carry on Regulated Activities ;Part V Performance of Regulated Activities * Section 59 states that a person cannot carry out certain controlling functions in a firm without approval by the FSA. ;Part VI Official Listing * Section 71 allows private persons to sue a firm for damages if a person performing a controlled function is not approved. ;Part VII Control of Business Transfers ;Part VIII Penalties for Market Abuse * Section 118 concerns

market abuse In economics and finance, market abuse may arise in circumstances where investors in a financial market have been unreasonably disadvantaged, directly or indirectly, by others who: * have used information which is not publicly available ( insid ...

. ;Part 8A Short selling ;Part IX Hearings and Appeals * Section 132 establishes the

Financial Services and Markets Tribunal The United Kingdom's 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 Financ ...

. ;Part XI Information Gathering and Investigations * Sections 165 and 165A give the FCA and PRA power to require certain information. ;Part XII Control Over Authorised Persons ;Part XIII Incoming Firms: Intervention by Authority ;Part XIV Disciplinary Measures ;Part XV The Financial Services Compensation Scheme * Section 213 establishes the Financial Services Compensation Scheme. ;Part 15A Power to require FSCS manager to act in relation to other schemes ;Part XVI The Ombudsman Scheme * Section 225 establishes the

. ;Part XVII Collective Investment Schemes ;Part XVIII Recognised Investment Exchanges and Clearing Houses ;Part 18A SUSPENSION AND REMOVAL OF FINANCIAL INSTRUMENTS FROM TRADING ;Part XIX Lloyd’s ;Part XX Provision of Financial Services by Members of the Professions ;Part XXI Mutual Societies ;Part XXII Auditors and Actuaries ;Part XXIII Public Record, Disclosure of Information and Co-operation ;Part XXIV Insolvency ;Part XXV Injunctions and Restitution ;Part XXVI Notices ;Part XXVII Offences * Section 397 makes it a

criminal offence In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definitions of", in Ca ...

to mislead a market or investors. ;Part XXVIII Miscellaneous ;Part XXIX Interpretation ;Part XXX Supplemental

Notes

External links

*. {{DEFAULTSORT:Financial Services And Markets Act 2000 United Kingdom Acts of Parliament 2000 Financial regulation in the United Kingdom 2000 in economics

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