FINMAR Financial Stability and Market Confidence Sourcebook

Part

FINMAR Financial Stability and Market Confidence Sourcebook

Printed on: 02/11/2024

Rulebook at: 01/11/2012

Chapters

FINMAR 1 Gathering financial stability information
FINMAR 2 Short selling
FINMAR 3 Banking Act 2009
Transitional Provisions and Schedules

FINMAR 1

Gathering financial stability information

FINMAR 1.1

Application, purpose and scope

06/08/2010

Application

FINMAR 1.1.1

FINMAR 1 is relevant to authorised persons and unauthorised persons, in particular persons whose activities are or may be relevant to the stability of one or more aspects of a relevant financial system.

06/08/2010

Purpose

FINMAR 1.1.2

(1) Section 165B(6) (Statement of policy) of the Act requires the FSA to prepare and publish a statement of policy on the financial stability information power. The purpose of FINMAR 1.1 is to set out the FSA's statement of policy on the exercise of the financial stability information power and the overseas financial stability information power contained in sections 165A and 169A of the Act.
(2) The Treasury has approved this statement of policy in accordance with section 165B(7) of the Act.

06/08/2010

FINMAR 1.1.3

Determining whether to impose a financial stability information requirement involves different considerations from the exercise of other FSA powers. The guidance in this chapter relates only to the imposition of financial stability information requirements.

06/08/2010

Scope of the powers

FINMAR 1.1.4

The financial stability information power and the overseas financial stability information power are exercisable in relation to the categories of person set out in section 165A(2) of the Act (interpreted in accordance with the rest of that section).

06/08/2010

FINMAR 1.1.5

Table: section 165A(2) of the Act

Section 165A of the Act applies to:

(a)

a person who has a legal or beneficial interest in any of the assets of a relevant investment fund;

(b)

a person who is responsible for the management of a relevant investment fund;

(c)

a person (a "service provider") who provides any service to an authorised person;

(d)

a person prescribed by an order made by the Treasury or any person of a description prescribed by such an order (and see also section 165C);

(e)

a person who is connected with a person to whom this section applies as a result of any of the above paragraphs.

06/08/2010

FINMAR 1.1.6

The FSA may impose a financial stability information requirement on a person within the categories set out in FINMAR 1.1.5 UK only to the extent that it considers that the information or document is or might be relevant to the stability of one or more aspects of the UK financial system. The persons within these categories may include:

(1) a vehicle for collective investment, whether or not it is regulated, (including vehicles often referred to as "hedge funds" and "structured investment vehicles" or off-balance sheet vehicles used for investment) and its managers;
(2) a provider of a service to an authorised person, such as a software supplier or the provider of a liquidity facility, where the risk to the stability of one or more aspects of the UK financial system relates to the provision of the service;
(3) a large scale proprietary trader or investor who trades large volumes of financial instruments that are traded on UK regulated markets or UK MTFs, for example overseas corporate entities; and
(4) a person who manages investments for a single family (whether or not the investments are held within a trust), for example a family office.

06/08/2010

FINMAR 1.2

Financial stability information powers

06/08/2010

Introduction

FINMAR 1.2.1

The FSA has a regulatory objective of contributing to the protection and enhancement of UK financial stability. Section 250 of the Banking Act 2009 imposes a duty on the FSA to collect information that it thinks is, or may be, relevant to the stability of individual financial institutions or to one or more aspects of the UK financial system.

06/08/2010

FINMAR 1.2.2

Some information relevant to UK financial stability will be accessible to the FSA:

(1) through authorised persons' regular reports to the FSA; or

(2) from other UK or international authorities;

(3) through information gathered by the FSA under other information gathering powers, such as section 165 of the Act or section 250(2) of the Banking Act 2009.

06/08/2010

FINMAR 1.2.3

The FSA may use the financial stability information power to gather additional information relevant to UK financial stability. The information may relate to the exercise of the FSA's functions, or the FSA may collect the information in order to disclose it to another person or authority, for example the Bank of England or the Treasury. Information relevant to financial stability may be held by an authorised person or by an unauthorised person.

06/08/2010

FINMAR 1.2.4

When the FSA seeks additional information from an authorised person or an unauthorised person it may not in all cases be necessary to exercise statutory information-gathering powers. However, the FSA will use its statutory powers if it believes it is appropriate to do so and, in urgent cases, it may be appropriate for the FSA to exercise these powers without delay.

06/08/2010

Financial stability information power

FINMAR 1.2.5

The FSA may use the financial stability information power to require a person to provide:

(1) specified information or documents; or
(2) information or documents of a specified description;

that the FSA considers are or may be relevant to the stability of the UK financial system.

[Note: Section 165A of the Act]

06/08/2010

Overseas financial stability information power

FINMAR 1.2.6

The FSA may exercise the overseas financial stability information power at the request of an overseas regulator to require a person to provide:

(1) specified information or documents; or
(2) information or documents of a specified description;

that the FSA considers are or may be relevant to the stability of a relevant financial system operating in the country or territory of the overseas regulator.

[Note: Section 169A of the Act]

06/08/2010

FINMAR 1.2.7

If the overseas regulator is a competent authority and the request relates to an obligation of the FSA under EU law, the FSA will take into account whether it is necessary to exercise the overseas financial stability information power to comply with that obligation.

06/08/2010

FINMAR 1.2.8

In deciding whether to exercise the overseas financial stability information power, the FSA may take into account in particular:

(1) whether corresponding assistance would be given to a UK regulatory authority in the country or territory of the overseas regulator; and
(2) whether it is otherwise appropriate in the public interest to give the assistance sought.

06/08/2010

FINMAR 1.2.9

The FSA may decide not to exercise the overseas financial stability information power unless the overseas regulator undertakes to make such contribution towards the cost to the FSA of its exercise as the FSA considers appropriate.

06/08/2010

FINMAR 1.2.10

FINMAR 1.2.8 G and FINMAR 1.2.9 G do not apply if the FSA considers that it must use the overseas financial stability information power to comply with an obligation upon the FSA under EU law.

06/08/2010

FINMAR 1.3

Providing notice before imposing a financial stability information requirement

06/08/2010

Giving notice

FINMAR 1.3.1

The FSA will give a person a notice in writing if it proposes to impose a financial stability information requirement unless the FSA is satisfied that information or documents are required without delay. The notice will include:

(1) the reasons why the FSA proposes to impose the financial stability information requirement; and
(2) the time period in which the person may make representations to the FSA in respect of the proposal.

06/08/2010

Right to make representations

FINMAR 1.3.2

The notice referred to in FINMAR 1.3.1 G will specify a reasonable period in which to make representations. In determining the period for representations the FSA will take into account:

(1) the nature, type and number of documents likely to be required;
(2) the reasons for imposing the requirement;
(3) whether the person is likely to wish to seek legal advice;
(4) whether the person is an authorised person;
(5) any cost implications for the person.

06/08/2010

FINMAR 1.3.3

The FSA will generally invite the recipient of a notice to make representations in writing to the address provided in the notice. The FSA will consider a request by a person to make oral representations and will take into account:

(1) whether oral representations would be likely to:

(a) improve the FSA's understanding of the representations;
(b) be more convenient or less costly than written representations; and
(c) assist the FSA in making a decision more quickly; and

(2) as in other cases, and in accordance with the Disability Discrimination Act 1995, any reason relating to the disability of the person which would mean that they could not otherwise have a fair hearing.

06/08/2010

FINMAR 1.3.4

Once the period for making representations has expired the FSA will determine within a reasonable period whether to impose the financial stability information requirement.

06/08/2010

FINMAR 1.3.5

If the FSA does not receive any representations during the period specified in the notice it will determine whether to impose the financial stability information requirement based on the information available to it.

06/08/2010

FINMAR 1.4

Imposing a financial stability information requirement without prior notice

06/08/2010

FINMAR 1.4.1

If the FSA proposes to impose a financial stability information requirement and is satisfied that it is necessary for the information or documents covered by a financial stability information requirement to be provided or produced without delay, the FSA may impose the financial stability information requirement on a person without taking the steps described in FINMAR 1.3 (see section 165B (4) of the Act).

06/08/2010

FINMAR 1.4.2

The FSA will determine whether to impose a financial stability information requirement without prior notice based on the facts of each case and after taking into account the information before it concerning:

(1) the nature of the risk to financial stability and whether the risk appears to be increasing rapidly;
(2) the extent of the risk to financial stability;
(3) whether it is fair to impose the requirement without notice; and
(4) whether the information sought may lead to prompt action by the FSA.

06/08/2010

FINMAR 1.4.3

A person who receives a financial stability information requirement without prior notice should consider whether to contact the FSA concerning the requirement. The person should raise any proposal to make representations with the FSA at the earliest opportunity.

06/08/2010

FINMAR 1.5

Imposing a requirement

06/08/2010

Deciding to impose a requirement

FINMAR 1.5.1

In deciding whether to impose a financial stability information requirement the FSA will:

(1) review the material before it;
(2) consider any representations received from the proposed recipient of the requirement; and
(3) take into account:

(a) the nature and extent of the risks to financial stability;
(b) whether the information is more readily available from another source, taking into account the likely time and cost implications of seeking information from that source;
(c) whether the information may assist the FSA in fulfilling its functions, for example if the information relates to the exercise of the FSA's statutory powers.

06/08/2010

FINMAR 1.5.2

A decision to impose the financial stability information requirement will be taken by a member of FSA staff at the appropriate level of seniority.

06/08/2010

Scope of the requirement

FINMAR 1.5.3

The information and documents specified will be appropriate for each case. They may be defined broadly, for example information relating to a trading strategy and its execution, or in a more limited way, for example a contract documenting a particular trade.

06/08/2010

Notice of a financial stability information requirement

FINMAR 1.5.4

The FSA will give a person notice in writing if it decides to impose a financial stability information requirement. The notice will describe the information and documents to which the requirement relates and include the FSA's reasons for imposing the requirement.

06/08/2010

Requiring documents to be verified or authenticated

FINMAR 1.5.5

The FSA may, where it is reasonable to do so, require a person subject to a financial stability information requirement to provide:

(1) verification of any information; or
(2) authentication of any document;

that the person provides to the FSA in accordance with that requirement.

06/08/2010

FINMAR 1.5.6

When deciding whether to require verification or authentication the FSA will take into account the circumstances of each case, including:

(1) the type of information or documents required and whether there is a particular need for the information to be exactly accurate;
(2) the likely additional cost to the person providing the information or documents;
(3) the extent to which verification or authentication may improve the quality or reliability of the information or documents; and
(4) the nature of any previous communications between the person and the FSA.

06/08/2010

FINMAR 1.5.7

The FSA may, where it is reasonable to do so, require the information or documents to be verified or authenticated in any manner. Examples of verification or authentification include:

(1) a signed declaration by an officer or employee of a body corporate;
(2) a declaration by a commissioner for oaths that a copy of a document is a true copy of the original; and
(3) a declaration by the person's accountant or auditor that the information provided appears to be accurate.

06/08/2010

FINMAR 2

Short selling

FINMAR 2.1

Application and purpose

06/08/2010

Application

FINMAR 2.1.1

This chapter applies to all persons who:

(1) engage, or are intending to engage, in short selling in relation to relevant financial instruments; or
(2) have engaged in short selling in relation to relevant financial instruments where the resulting short position is still open.

06/08/2010

FINMAR 2.1.1A

This chapter is relevant to all natural and legal persons to whom the short selling regulation applies, whether or not they are regulated by the FSA.

01/11/2012

Purpose

FINMAR 2.1.2

The purpose of this chapter is to provide guidance in relation to the FSA's functions under the short selling regulation.

Note: Other parts of the Handbook that may also be relevant to natural and legal persons to whom the short selling regulation applies include:

Chapter 2 of SUP (the Supervision manual) and DEPP (the Decision Procedure and Penalties manual).

The following Regulatory Guides are also relevant:

1. the Enforcement Guide (EG)

01/11/2012

FINMAR 2.5

Measures to prohibit, restrict or limit transactions in short selling

01/11/2012

Approach to imposing measures

FINMAR 2.5.1

The FSA is required by article 23 of the short selling regulation to consider whether to impose measures to prohibit or restrict short selling or otherwise limit transactions in a financial instrument on a trading venue where the price of that financial instrument on that trading venue has fallen significantly during a single trading day in relation to the closing price on that venue on the previous trading day. In fulfilling this obligation, the FSA will assess:

(1) whether the price fall is or may become disorderly; and, if so in either case,
(2) whether the imposition of measures to prohibit, restrict or limit transactions will prevent a further disorderly decline in the price of the financial instrument.

01/11/2012

FINMAR 2.5.2

The FSA will assess whether the price fall in a financial instrument on a trading venue is or may become disorderly having regard to at least the following factors:

(1) whether there have been violent movements in the price of the particular financial instrument on a particular trading venue, including any sudden or significant movements in price of a financial instrument during the trading day;
(2) whether there is evidence of unusual or improper trading in the financial instrument on a particular trading venue which could indicate that there was pressure to set the price of the financial instrument at a level that would be considered abnormal for that financial instrument; and
(3) whether there are unsubstantiated rumours or dissemination of false or misleading information regarding the financial instrument.

The list above is not exhaustive and the FSA will consider such other factors as it considers appropriate.

01/11/2012

FINMAR 2.5.3

The FSA may consider that the price fall in a financial instrument is not disorderly, for example, if the FSA considers that there is legitimate cause for a price fall in trading, such as the announcement of poor financial results.

01/11/2012

FINMAR 2.5.4

The FSA will consider at least the following factors when assessing whether measures to prohibit or restrict short selling or otherwise limit transactions are necessary or likely to prevent a further disorderly decline in the price of the financial instrument:

(1) the volume of trading in that financial instrument on the trading venue as compared with the total trading volume in the financial instrument over at least that trading day; and
(2) whether the price of the financial instrument has stabilised after the significant fall in price.

The list above is not exhaustive and the FSA will consider such other factors as it considers appropriate.

01/11/2012

FINMAR 2.5.5

Where the FSA imposes measures under article 23 of the short selling regulation it will normally specify that the measures will not apply to natural or legal persons who have satisfied the criteria to use the market maker exemption or the authorised primary dealer exemption and who are included on the list maintained and published by ESMA pursuant to article 17(13) of the short selling regulation.

01/11/2012

Exchange rate calculations

FINMAR 2.5.6

(1) For the purposes of article 23(1)(b) of Commission Delegated Regulation (EU) No 918/2012 the FSA will convert the figure of EUR 0.50 into pounds sterling using the daily spot foreign exchange rate of Sterling to Euro of the Bank of England applicable at the end of the first business day of October 2012 rounded up to the nearest £0.01. The FSA will state this figure (the 'sterling figure') on its public website.
(2) The rate will be calculated on the same basis at the end of the first business day of October every subsequent year, unless the situation in (3) occurs in the intervening period, in which case the FSA will recalculate the sterling figure.
(3) The situation referred to in (2) is if the daily spot foreign exchange rate of the Bank of England of Sterling to Euro fluctuates for a period of 20 consecutive business days by more than 10% from the rate last used to calculate the sterling figure.
(4) If the situation in (3) occurs more than once in a year, the FSA will convert the figure of EUR 0.50 into pounds sterling using the daily spot foreign exchange rate of Sterling to Euro of the Bank of England applicable at the end of the 20th business day of the period referred to in (3).

01/11/2012

FINMAR 2.5.7

The FSA will treat the FTSE 100 index as the main national equity index of the Member State for the purposes of article 6(4) of Commission Implementing Regulation (EU) No 827/2012 and article 4 of Commission Delegated Regulation (EU) No 826/2012 and article 23(1) of Commission Delegated Regulation (EU) No 918/2012, all subject to approval by European Parliament and Council.

01/11/2012

FINMAR 2.6

Procedures relating to the market maker exemption and the authorised primary dealer exemption

01/11/2012

[Note: The FSAhas powers under the short selling regulation to prohibit a natural or legal person from using the market maker exemption and the authorised primary dealer exemption if the FSAconsiders that that person does not satisfy the conditions of the exemption that that person has notified the FSAit intends to use.]

FINMAR 2.6.1

Pursuant to the Financial Services and Markets Act 2000 (Short Selling) Regulations 2012 (SI 2012/2554), the FSA will direct how notifications to use the market maker exemption or the authorised primary dealer exemption shall be made. Such directions will be published on the FSA website and listed in FINMAR 2 Annex 1 G.

01/11/2012

FINMAR 2.6.2

(1) If the FSA considers that a natural or legal person ('P') who has notified the FSA of his intention to use either the market maker exemption or the authorised primary dealer exemption does not satisfy the criteria to use the market maker exemption or the authorised primary dealer exemption, the FSA will send a letter to P setting out the reasons why it is minded to prohibit P from using the market maker exemption or the authorised primary dealer exemption.
(2) P will be given the opportunity to make written representations to the FSA concerning P's use of the market maker exemption or the authorised primary dealer exemption.
(3) The FSA will decide whether to prohibit P's use of either the market maker exemption or the authorised primary dealer exemption having regard to P's notification and any written representations made by P. The decision whether or not to prohibit the use by P of either the market maker exemption or the authorised primary dealer exemption will be made by senior staff members of the FSA who were not involved in the initial consideration of P's notification.

01/11/2012

Review of a decision to prohibit the market maker exemption or the authorised primary dealer exemption

FINMAR 2.6.3

If P is not satisfied with the FSA's decision to prohibit P's use of the market maker exemption or the authorised primary dealer exemption, P may seek a review of the decision. This will be conducted by a group of at least three senior FSA staff. None of the group conducting the review will have been connected with the earlier decision taken in respect of P's use of the market maker exemption or the authorised primary dealer exemption. The review may take place after the expiry of the 30 day period in which the notification should be made under the short selling regulation, but within 3 months of the decision referred to in FINMAR 2.6.2 G (3).

01/11/2012

FINMAR 2 Annex 1

List of directions on how notifications to use the market maker exemption or authorised primary dealer exemption should be made

01/11/2012

This table belongs to FINMAR 2.6.1 G

[to follow]

01/11/2012

FINMAR 3

Banking Act 2009

FINMAR 3.1

Application and purpose

06/08/2010

Application

FINMAR 3.1.1

FINMAR 3 is relevant to firms subject to the powers in Parts 1 to 3 of the Banking Act 2009 (the Banking Act), that is, UK incorporated firms with a Part IV permission to carry on the regulated activity of accepting deposits, other than credit unions, firms with a Part IV permission to effect or carry out contracts of insurance and any other class of institution specified in secondary legislation.

06/08/2010

Purpose

FINMAR 3.1.2

The purpose of FINMAR 3 is to provide guidance on assessing Condition 2 under section 7(3) of the Banking Act.

06/08/2010

FINMAR 3.2

Assessing Condition 2 under section 7(3) of the Banking Act 2009

06/08/2010

Introduction

FINMAR 3.2.1

The Banking Act introduces new powers for HM Treasury, the Bank of England and the FSA to deal with failing banks. The powers, which are set out in Parts 1 to 3 of that Act, can be used to deal with UK incorporated firms with a Part IV permission to carry on the regulated activity of accepting deposits, other than credit unions, firms with a Part IV permission to effect or carry out contracts of insurance and any other class of institution specified in secondary legislation. In relation to building societies, the main tools in the Act are applied with modifications. In this section the term "bank" is used to refer to those firms that are potentially subject to the powers in Parts 1 to 3 of the Banking Act. The powers are defined in the Banking Act, and referred to in this section as the "stabilisation powers". The Banking Act contains powers to enable HM Treasury to extend the application of the stabilisation powers to credit unions by secondary legislation.

06/08/2010

FINMAR 3.2.2

Section 7 of the Banking Act sets out the two conditions that must be met before a stabilisation power can be exercised in respect of a bank:

(1) Condition 1 is that the bank is failing, or is likely to fail, to satisfy the threshold conditions.
(2) Condition 2 is that, having regard to timing and other relevant circumstances, it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the bank that will enable it to satisfy the threshold conditions.

06/08/2010

FINMAR 3.2.3

The Banking Act provides that the FSA is to treat Conditions 1 and 2 as met if satisfied that they would be met but for financial assistance provided by either HM Treasury or the Bank of England (disregarding ordinary market assistance offered by the Bank on its usual terms).

06/08/2010

Assessing Condition 1

FINMAR 3.2.4

The matters the FSA will take into account in assessing whether a bank is failing or is likely to fail to satisfy the threshold conditions are described in COND 2.1 to COND 2.5. The options available to the FSA in the case of a breach of the threshold conditions are outlined in Chapter 8 of the Enforcement Guide and SUP 7.2. These tools are available to the FSA at any time, and so may be used before or in conjunction with the stabilisation tools provided by the Banking Act.

06/08/2010

Assessing Condition 2

FINMAR 3.2.5

The Banking Act provides that in considering the test in Condition 2, the FSA should ignore the stabilisation powers. The purpose of this limitation is to make clear that in making its assessment, the FSA is not considering whether the stabilisation powers could successfully resolve the situation, but is considering whether alternative measures might provide for this instead.

06/08/2010

Timing

FINMAR 3.2.6

In assessing Condition 2, the FSA will consider the timeframe during which any actions taken by or in relation to the bank are likely to be available and to have effect. In the view of the FSA, the purpose of the reference to timing in Condition 2 is to require the FSA to consider whether a return to full compliance is likely to occur within a reasonable period of time. The following is a non-exhaustive list of factors the FSA may consider:

(1) the extent of any loss, or risk of loss, or other adverse effect on consumers. The more serious the loss or potential loss or other adverse effect, the more likely it is that the FSA will consider that remedial action will be needed urgently;
(2) the seriousness of any suspected breach of the requirements of the Act or the rules and the steps that need to be taken to correct that breach;
(3) the risk that the bank's conduct or business presents to the stability of the UK financial system and to confidence in that system;
(4) the likelihood that remedial action that could be taken by or in relation to the bank will take effect before consumers, market confidence or financial stability suffers significant detriment.

06/08/2010

FINMAR 3.2.7

If the FSA is satisfied that the breach of threshold conditions is likely to be temporary and to be rectified within a reasonable time, the FSA is unlikely to conclude that Condition 2 has been met.

06/08/2010

Other relevant circumstances

FINMAR 3.2.8

In general the FSA will be concerned to determine whether any remedial action that could be taken by or in relation to the bank will be effective. This will include an assessment of both how likely it is that the action will be taken, and if it is, the impact it will have on the bank's compliance with the threshold conditions. Circumstances that the FSA may take into account include but are not limited to:

(1) where the FSA's concerns relate to adequacy of liquidity:

(a) the availability of market funding to banks generally and any specific circumstances of the bank that may impact on its ability to access the market on terms which are generally available;
(b) whether the bank's current funding structure is adequate and viable; whether the primary sources of funding continue to be available, given current market sentiment, and whether they would still be viable if market sentiment was to change;
(c) the maturity profile of the bank's existing funding and the availability of funding from the market to replace maturing funding as the need arises;
(d) whether liquidity problems call into question adequacy of capital;
(e) the bank's credit rating and the likelihood and impact of any potential downgrade;
(f) the availability and terms of liquidity support from group companies, existing funders and central banks;

(2) where the FSA's concerns relate to capital:

(a) the availability of capital from the market for banks in general and any specific circumstances of the bank that may impact on its ability to access the market on terms which are generally available;
(b) potential sources of capital and the nature of and terms on which capital may be obtained;
(c) the success of any recent attempts by the bank to raise capital on the open market;
(d) the willingness of existing significant institutional investors to provide or assist in a strategic solution to the bank;

(3) where the FSA's concerns relate to the adequacy of non-financial resources or suitability, the FSA will take into account the factors identified in COND 2.4 and COND 2.5, and other Handbook provisions referred to in those chapters. In assessing Condition 2, the circumstances of each case are likely to be different, but the FSA will be concerned to establish the likelihood of achieving a return to full compliance with the threshold conditions, and the timescale in which a return to compliance will be effected;
(4) the prospects of the bank securing a material and relevant transaction with a third party, for example a sale of the bank itself or of all or part of its business. In relation to any transaction, the FSA will have regard to factors including but not limited to:

(a) the status of any ongoing negotiations;
(b) the level of interest expressed and the credibility of potential counterparties;
(c) practical constraints related to the bank itself, for example, management engagement, availability of relevant information and severability of infrastructure;
(d) the sources, availability and firmness of financing for any transaction;
(e) the need for shareholder approval, merger clearances or other consents;
(f) the suitability of the counterparty and the stability of the relevant parties following completion of any transaction.

06/08/2010

FINMAR 3.2.9

When assessing whether the bank will return to compliance with threshold condition 4 (adequate resources) the FSA will also assess the reasons behind the likely or actual failure of compliance. Serious failures of management, systems or internal controls may in themselves call into question the adequacy of the bank's non-financial resources (threshold condition 4) or suitability (threshold condition 5). Therefore, in assessing whether a bank is reasonably likely to satisfy the threshold conditions in the future, the FSA will be concerned to ensure that any such failures have been adequately addressed.

06/08/2010

Transitional Provisions and Schedules

FINMAR Sch 1

Record keeping requirements

06/08/2010

FINMAR Sch 1.1

There are no record-keeping requirements in FINMAR.

06/08/2010

FINMAR Sch 2

Notification requirements

06/08/2010

FINMAR Sch 2.1

There are no notification requirements in FINMAR.

06/08/2010

FINMAR Sch 3

Fees and other required payments

06/08/2010

FINMAR Sch 3.1

There are no requirements for fees in FINMAR.

06/08/2010

FINMAR Sch 4

Powers Exercised

06/08/2010

FINMAR Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules, statements of policy and guidance in FINMAR:

Section 157(1) (Guidance)

Section 165B(6) (Safeguards etc in relation to exercise of power under section 165A)

01/11/2012

FINMAR Sch 5

Rights of action for damages

06/08/2010

FINMAR Sch 5.1

There are no rules in FINMAR.

06/08/2010

FINMAR Sch 6

Rules that can be waived

06/08/2010

FINMAR Sch 6.1

As a result of regulation 10 of the Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (SI 2007/1973) the FSA has power to waive all its rules, other than rules made under section 247 (Trust scheme rules) or section 248 (Scheme particulars rules) of the Act. However, if the rules incorporate requirements laid down in European directives, it will not be possible for the FSA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives.

06/01/2011