Financial Services and Markets Act 2023

11 Rules relating to investment exchanges and data reporting service providers U.K.

(1) FSMA 2000 is amended as follows.

(2) After section 300G (section 300F: rules in relation to overseas FMI entities) (inserted by section 9) insert—

“300H Rules relating to investment exchanges and data reporting service providers

(1) The FCA may make such rules applying to recognised UK investment exchanges or data reporting service providers—

(a) with respect to the carrying on by them of relevant activities, or

(b) with respect to the carrying on by them of an activity which is not a relevant activity,

as appear to the FCA to be necessary or expedient for the purpose of advancing one or more of its operational objectives.

(2) In this section “relevant activity”—

(a) in relation to a recognised UK investment exchange, means a regulated activity described in section 285(2);

(b) in relation to a data reporting service provider, means providing a data reporting service.

(3) Rules under this section may include—

(a) provision applying to a recognised UK investment exchange or data reporting service provider even though there is no relationship between that person and the persons whose interests will be protected by the rules;

(b) requirements which take into account, in the case of a recognised UK investment exchange or data reporting service provider which is a member of a group, any activity of another member of the group.

(4) Rules under this section may not modify, amend or revoke any retained direct EU legislation (except retained direct EU legislation which takes the form of FCA rules).

(5) In this section—

• “data reporting service” and “data reporting service provider” have the meanings given by regulation 2 of the Data Reporting Services Regulations 2017 (S.I. 2017/699);

• “recognised UK investment exchange” means a recognised investment exchange that is not an overseas investment exchange as defined in section 313(1).”

(3) In section 166A (appointment of skilled person to collect and update information), after subsection (9) insert—

“(9A) The powers conferred by this section may also be exercised by the FCA in relation to a recognised investment exchange (and references to an authorised person are to be read accordingly).”

(4) In section 168 (appointment of persons to carry out investigations in particular cases), in subsection (4)(ca), at the end insert “or a rule made by the FCA under section 300H”.

(5) In section 312E (public censure)—

(a) in subsection (1)—

(i) after “recognised body” insert “or data reporting service provider”;

(ii) after “the body” insert “or provider”;

(b) in subsection (2)(a) after “exchange” insert “or data reporting service provider”;

(c) after subsection (3) insert—

“(4) In this Chapter “data reporting service provider” has the meaning given by regulation 2 of the Data Reporting Services Regulations 2017 (S.I. 2017/699).”

(6) In section 312F (financial penalties), in subsection (1)—

(a) after “recognised body” insert “or data reporting service provider”;

(b) after “the body”, in both places, insert “or provider”.

(7) In section 312G (proposal to take disciplinary measures), in subsection (1)—

(a) in paragraph (a), after “recognised body” insert “or data reporting service provider”;

(b) in the words after paragraph (b), after “body” insert “, provider”.

(8) In section 312H (decision notice)—

(a) in subsection (1)—

(i) in paragraph (a), after “recognised body” insert “or data reporting service provider”;

(ii) in the words after paragraph (b), after “body” insert “, provider”;

(b) in subsection (4)—

(i) in paragraph (a), after “recognised body” insert “or data reporting service provider”;

(ii) in the words after paragraph (b), after “body” insert “, provider”.

(9) In section 312I(a) (publication), after “recognised body” insert “, data reporting service provider”.

Commencement Information

I1 S. 11 not in force at Royal Assent, see s. 86(3)

I2 S. 11 in force at 29.8.2023 by S.I. 2023/779, reg. 4(g)