The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007

PART 1 U.K. GENERAL

Citation and commencement U.K.

1.—(1) These Regulations may be cited as the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007.

(2) These Regulations come into force on 1st April 2007 for the purposes of—

(a) enabling the Authority to receive a notice under subsection (1)(b) of section 312A of the Act (inserted by these Regulations) in preparation for the making of arrangements as mentioned in that section by an EEA market operator on or after 1st November 2007;

(b) enabling a recognised investment exchange to give notice under subsection (2) of section 312C of the Act (inserted by these Regulations), and enabling the Authority to send a copy of the notice to the host state regulator as required by subsection (3) of that section;

(c) enabling applications to be made for approval under section 412A of the Act (inserted by these Regulations);

(d) enabling the Authority to give a direction as to the manner in which an application under section 412A is to be made and as to the content of the application and information to accompany it, and enabling the Authority to require the applicant to provide further information in accordance with section 412A(3);

(e) enabling the Authority, on receipt on or after that date of a consent notice under paragraph 13(1)(a) of Schedule 3 M1 in relation to a EEA firm exercising an EEA right deriving from the markets in financial instruments directive, to prepare for the firm's supervision in accordance with paragraph 13(2)(a) of that Schedule;

(f) enabling the Authority, on receipt of a regulator's notice under paragraph 14 of Schedule 3 M2 or a notice referred to in paragraph 14(1)(ba) of that Schedule (inserted by these Regulations) in relation to a EEA firm exercising an EEA right deriving from the markets in financial instruments directive, to prepare for the firm's supervision in accordance with paragraph 14(2)(a) of that Schedule;

(g) enabling—

(i) a UK firm to give a notice of intention under paragraph 19 of Schedule 3 M3 (as amended by these Regulations) in exercise of an EEA right deriving from the markets in financial instruments directive,

(ii) the Authority to give a consent notice referred to in paragraph 19(4) of that Schedule to the host state regulator or a notice referred to in paragraph 19(8), (11) or (12) of that Schedule in relation to the exercise of that EEA right, and

(iii) the firm to make a reference to the Tribunal in accordance with paragraph 19(12)(b) of that Schedule in relation to the exercise of that EEA right;

(h) enabling—

(i) a UK firm to give a notice of intention under paragraph 20 of Schedule 3 M4 (as amended by these Regulations) in exercise of an EEA right deriving from the markets in financial instruments directive,

(ii) the Authority to send a copy of such a notice to the host state regulator under paragraph 20(3) of that Schedule and notify the UK firm under paragraph 20(4) of that Schedule that it has done so,

and for all other purposes on 1st November 2007.

(3) For the purposes of paragraph (2)(e) to (h)—

“EEA right” has the meaning given in paragraph 7 of Schedule 3; an “EEA right deriving from the markets in financial instruments directive” means an EEA right to carry on an activity—

(a)

which is an investment service or activity listed in Section A of Annex I to the markets in financial instruments directive;

(b)

which is an ancillary service listed in Section B of Annex I to the markets in financial instruments directive; or

(c)

in relation to an investment which is a financial instrument listed in Section C of Annex I to the markets in financial instruments directive;

“Schedule 3” means Schedule 3 to the Act.

(4) Nothing in paragraph (2)(e) to (h) gives an EEA firm or a UK firm an EEA right to carry on, before 1st November 2007, an activity—

(a) which is an ancillary service listed in Section B of Annex I to the markets in financial instruments directive but which is not a non-core service listed in Section C of the Annex to the investment services directive;

(b) in relation to an investment which is a financial instrument listed in Section C of Annex I to the markets in financial instruments directive but which is not an instrument listed in Section B of the Annex to the investment services directive; or

(c) referred to in paragraph 5 of Section A of Annex I to the markets in financial instruments directive unless the firm has an EEA right to carry on one or more core services listed in Section A of the Annex to the investment services directive.

Marginal Citations

M1 Paragraph 13(1) was amended by S.I. 2003/1473 and 2066.

M2 Relevant amendments to paragraph 14 were made by S.I. 2003/1473 and 2066.

M3 Relevant amendments to paragraph 19 were made by S.I. 2003/1473 and 2066.

M4 Relevant amendments to paragraph 20 were made by S.I. 2001/ 1376 and 2003/ 2066.

Interpretation U.K.

2.  In these Regulations—

“the Act” means the Financial Services and Markets Act 2000 M5 ;

[F1 “the appropriate regulator” means—

(a)

in relation to a person who is, or who is applying to become, a PRA-authorised person, the Prudential Regulatory Authority;

(b)

in any other case, the Financial Conduct Authority;]

“authorised person” has the meaning given in section 31(2) of the Act;

F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“investment services directive” means Council Directive 93/22/EEC of 10 May 1993 on investment services in the securities field M6 ;

“markets in financial instruments directive” means Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments M7 ;

[F3 “Part 4A permission” has the meaning given in section 55A(5) of the Act;]

[F4 “regulated activity” has the meaning given in section 22 of the Act;]

“Schedule 3” means Schedule 3 to the Act;

Textual Amendments

F1 Words in reg. 2 inserted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 125(2)(a)

F2 Words in reg. 2 omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 125(2)(b)

F3 Words in reg. 2 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 125(2)(c)

F4 Words in reg. 2 inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) (Amendment) Regulations 2007 (S.I. 2007/763), regs. 1(2), 2(1)

Marginal Citations

M5 2000 c. 8.

M6 OJ No L 141, 11.6.1993, p. 27.

M7 OJ No L 145, 30.4.2004, p.1.

Amendments of primary and secondary legislation U.K.

3.—(1) Schedule 1, which contains amendments of Part 13 of the Act (incoming firms: intervention by authority), has effect.

(2) Schedule 2, which contains amendments of Part 18 of the Act (recognised investment exchanges and clearing houses), has effect.

(3) Schedule 3, which inserts Part 18A of the Act, has effect.

(4) Schedule 4, which contains amendments of Schedule 3 to the Act (EEA passport rights), has effect.

(5) Schedule 5, which contains other amendments of the Act, has effect.

(6) Schedule 6, which contains consequential amendments of other enactments, has effect.