The Short Selling Regulations 2025

Regulation 30

Schedule 2 Consequential amendments

Part 1 Amendment of primary legislation

Amendment of FSMA 2000

1.—(1) FSMA 2000 is amended as follows.

(2) Omit Part 8A (short selling)(1).

(3) In section 133 (proceedings before Tribunal: general provision)(2), in subsection (7A), omit paragraph (i).

(4) In section 139A (power of the FCA to give guidance)(3), in subsection (4), for “short selling regulation” substitute “Short Selling Regulations 2025.

(5) In section 391 (publication of notices)(4), in subsection (1ZB), omit paragraph (i).

(6) In section 392 (application of sections 393 and 392)(5)—

(a) in paragraph (a), omit “131H(1),”;

(b) in paragraph (b), omit “131H(4),”.

(7) In section 398 (misleading the FCA or PRA: residual cases)(6), in subsection (1A)(c), for “short selling regulation” substitute “Short Selling Regulations 2025”.

(8) In section 415B (consultation in relation to taking certain enforcement action)(7), in subsection (3), omit paragraph (d).

(9) In section 417 (definitions)(8), in subsection (1), omit the definition of “short selling regulation”.

(10) In Schedule 1ZA (the FCA: arrangements for discharging functions)(9), in paragraph 8(3)(c)(i), omit “131J,”.

Amendment of the Financial Services Act 2010

2.—(1) The Financial Services Act 2010(10) is amended as follows.

(2) Omit section 8 (power of the FSA to prohibit, or require disclosure of, short selling).

(3) In Schedule 2 (amendments of FSMA 2000), in paragraph 29, omit paragraphs (2)(b) and (3)(b).

Amendment of the Financial Services Act 2012

3.—(1) The Financial Services Act 2012(11) is amended as follows.

(2) Omit section 25 (functions related to short selling).

(3) In section 85(4)(c)(i) (relevant functions in relation to complaints scheme)(12), omit “131J,”.

(4) In section 109(5) (payments to Treasury of penalties received by Financial Services Authority), omit paragraph (i).

Part 2 Amendment of secondary legislation

Amendment of the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001

4.—(1) The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001(13) are amended as follows.

(2) In regulation 2 (Interpretation)(14) in the definition of “short selling information”, for “as a competent authority under the short selling regulation” substitute “under or by virtue of the Short Selling Regulations 2025”.

(3) In regulation 12 (disclosure by and to a Schedule 1 or 2 person or disciplinary proceedings authority)(15)—

(a) after paragraph (3), insert—

“(3A) This regulation does not permit disclosure of short selling information to a person specified in the first column in Part 3 of Schedule 1 unless the disclosure is in accordance with paragraph (3B) or a cooperation arrangement on the exchange of data and information with that person.

(3B) The FCA may disclose short selling information to a person specified in the first column in Part 3 of Schedule 1 where—

(a) the disclosure does not contravene Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data(16) or the Data Protection Act 2018(17),

(b) the FCA is satisfied that the disclosure is necessary for the purposes of the Short Selling Regulations 2025, and

(c) any such disclosure is made under agreement that the person shall not disclose the data to the supervisory authority of another country without the express written authorisation of the FCA.

(3C) Where the short selling information has been received from the supervisory authority of another country, the FCA may disclose the information to another person specified in the first column in Part 3 of Schedule 1 only where—

(a) the FCA has obtained the express agreement of the person which transmitted the information, and

(b) where applicable, the information is disclosed solely for the purposes for which that person gave its agreement.”;

(b) omit paragraph (4).

Amendment of the Financial Services and Markets Act (Qualifying Provisions) Order 2013

5.—(1) The Financial Services and Markets Act (Qualifying Provisions) Order 2013(18) is amended as follows.

(2) In article 2 (qualifying provisions: general) in paragraph (4), omit sub-paragraphs (a) and (b).

(3) In article 5 (qualifying provisions: injunctions and restitution), omit—

(a) paragraph (3);

(b) paragraph (4);

(c) paragraph (5)(e).

(4) In article 6 (qualifying provisions: fees) in paragraph (2), omit sub-paragraphs (f) and (g).

Amendment of the Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013

6.  In Schedule 2 to the Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013(19), omit paragraph 239.

Amendment of the Financial Regulator’s Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018

7.  In the Schedule to the Financial Regulator’s Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018(20), omit paragraphs 70, 71 and 72.

Amendment of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc.) (EU Exit) Regulations 2019

8.  In Schedule 1 to the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc.) (EU Exit) Regulations 2019(21), omit paragraph 11.

Amendment of the Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019

9.  In regulation 11(5) of the Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019(22), omit sub-paragraph (d).

Amendment of the Equivalence Determinations for Financial Services (Amendment etc.) (EU Exit) Regulations 2020

10.—(1) The Equivalence Determinations for Financial Services (Amendment etc.) (EU Exit) Regulations 2020(23) are amended as follows.

(2) In regulation 2(1) (interpretation), omit the definition of “SSR”.

(3) In Table 2 in Schedule 4 (effect of equivalence directions on or after IP completion day), omit the entry relating to paragraph 11 of Schedule 1 to the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 which concerns Article 17(2) of the short selling regulation.

(1)

Part 8A was inserted by section 8 of the Financial Services Act 2010 (c. 28) and amended by S.I. 2012/2554 and S.I. 2018/1321.

(2)

Section 133 was substituted by S.I. 2010/22 and subsection (7A) inserted by section 23(2)(c) of the Financial Services Act 2012 (c. 21).

(3)

Section 139A was substituted by section 24(1) of the Financial Services Act 2012 (c. 21). Subsection (4) was amended by S.I. 2016/680, S.I. 2019/632 (as amended by S.I. 2020/1301) and S.I. 2023/1424.

(4)

Subsection (1ZB) was substituted by section 37 of and Schedule 9 to the Financial Services Act 2012 (c. 21). There have been amendments to subsection (1ZB) but none is relevant.

(5)

The references to section 131H(1) and (4) in section 392(a) and (b) were inserted by section 24 of and Schedule 2 to the Financial Services Act 2010 (c. 28). There are other amendments to section 392 but none is relevant.

(6)

Subsection (1A) was inserted by S.I. 2013/1773. There are amendments to subsection (1A) but none is relevant.

(7)

Section 415B was inserted by section 37 of and Schedule 9 to the Financial Services Act 2012 (c. 21). There are amendments to section 415B but none is relevant.

(8)

Definition inserted by S.I. 2012/2554 and amended by S.I. 2019/632, S.I. 2020/1385 and S.I. 2023/1424.

(9)

Schedule 1ZA was substituted by section 6 of and Schedule 3 to the Financial Services Act 2012 (c. 21). Paragraph 8(3)(c)(i) was amended by section 4(6) and 35 of and Schedule 3 paragraph 16(b)(1) to the Financial Services (Banking Reform) Act 2013 (c. 33) and by section 25 of and Schedule 3 to the Financial Guidance and Claims Act 2018 (c. 10).

(10)

2010 c. 28.

(11)

2012 c. 21.

(12)

Section 85(4)(c)(i) was amended by section 35 of and Schedule 3 to the Financial Services (Banking Reform) Act 2013 (c. 33) and by section 25 of and Schedule 3 to the Financial Guidance and Claims Act 2018 (c. 10).

(13)

S.I. 2001/2188.

(14)

Definition inserted by S.I. 2016/715 and amended by S.I. 2019/681.

(15)

Regulation 12(4) was inserted by S.I. 2012/2554.

(16)

EUR 2016/679.

(17)

2018 c. 12.

(18)

S.I. 2013/419. Article 5(3) was amended by S.I. 2019/632. There are other amending instruments but none are relevant.

(19)

S.I. 2013/472.

(20)

S.I. 2018/1115.

(21)

S.I. 2019/541.

(22)

S.I. 2019/680. Regulation 11(5)(d) was amended by S.I. 2022/1223.

(23)

S.I. 2020/1055.