Financial Services and Markets Act 2000 (c. 8)

Part XIII U.K. Incoming Firms: Intervention by [F1 FCA or PRA]

Textual Amendments

F1 Words in Pt. 13 heading substituted (27.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 4 para. 30 (with Sch. 20); S.I. 2013/423, arts. 2, 3, Sch.

Modifications etc. (not altering text)

C1 Pt. 13 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a) (with art. 23(2))

Pt. 13 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 32; S.I. 2001/3538, art. 2(1)

Pt. 13 extended (5.10.2001 for specified purposes otherwise 1.12.2001) by S.I. 2001/3084, art. 2(7); S.I. 2001/3538, art. 2(1)

Pt 13 excluded (1.12.2001) by S.I. 2001/3592, art. 107(2) (with art. 23(2))

Powers of [F2 Office of Fair Trading] U.K.

Textual Amendments

F2 S. 203: words in cross-heading substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(7)(c); S.I. 2003/766, art. 2, Sch. (with art. 3)

203 Power to prohibit the carrying on of Consumer Credit Act business. U.K.

(1) If it appears to [F3 the Office of Fair Trading (“the OFT”)]) that subsection (4) has been, or is likely to be, contravened as respects a consumer credit EEA firm, [F4 it] may by written notice given to the firm impose on the firm a consumer credit prohibition.

(2) If it appears to the [F5 OFT] that a restriction imposed under section 204 on an EEA consumer credit firm has not been complied with, [F6 it] may by written notice given to the firm impose a consumer credit prohibition.

(3) “Consumer credit prohibition” means a prohibition on carrying on, or purporting to carry on, in the United Kingdom any Consumer Credit Act business which consists of or includes carrying on one or more listed activities.

(4) This subsection is contravened as respects a firm if—

(a) the firm or any of its employees, agents or associates (whether past or present), or

(b) if the firm is a body corporate, any controller of the firm or an associate of any such controller,

does any of the things specified in paragraphs [F7 (a) to (e) of section 25(2A)] of the M1 Consumer Credit Act 1974.

(5) A consumer credit prohibition may be absolute or may be imposed—

(a) for such period,

(b) until the occurrence of such event, or

(c) until such conditions are complied with,

as may be specified in the notice given under subsection (1) or (2).

(6) Any period, event or condition so specified may be varied by the [F8 OFT] on the application of the firm concerned.

(7) A consumer credit prohibition may be withdrawn by written notice served by the [F8 OFT] on the firm concerned, and any such notice takes effect on such date as is specified in the notice.

(8) Schedule 16 has effect as respects consumer credit prohibitions and restrictions under section 204.

(9) A firm contravening a prohibition under this section is guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(10) In this section and section 204—

• “a consumer credit EEA firm” means an EEA firm falling within any of paragraphs (a) to (c) of paragraph 5 of Schedule 3 whose EEA authorisation covers any Consumer Credit Act business;

• “Consumer Credit Act business” means consumer credit business, consumer hire business or ancillary credit business;

• “consumer credit business”, “consumer hire business” and “ancillary credit business” have the same meaning as in the M2 Consumer Credit Act 1974;

• “listed activity” means an activity listed in [F9 Annex 1 to the banking consolidation directive] or the Annex to the investment services directive;

• “associate” has the same meaning as in section [F10 25(2A)] of the M3 Consumer Credit Act 1974;

• “controller” has the meaning given by section 189(1) of that Act.

Textual Amendments

F3 Words in s. 203(1) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(7)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

F4 Word in s. 203(1) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(7)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

F5 Words in s. 203(2) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(7)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F6 Word in s. 203(2) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(7)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F7 Words in s. 203(4) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. 33(7), 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F8 Words in s. 203(6)(7) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(7)(c); S.I. 2003/766, art. 2, Sch. (with art. 3)

F9 S. 203(10): words in definition of "listed activity" substituted (22.11.2000) by S.I. 2000/2952, reg. 8(2)

F10 S. 203(10): words in definition of "associate" substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. 33(8), 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Modifications etc. (not altering text)

C2 S. 203 applied (with modifications) (1.5.2009 for certain purposes and 1.11.2009 otherwise) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2), 26(1) (with reg. 3)

C3 S. 203 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 31(1) (with reg. 3)

C4 S. 203(5) modified (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 53(2); S.I. 2001/3538, art. 2(1)

Marginal Citations

M1 1974 c. 39.

M2 1974 c. 39.

M3 1974 c. 39.

204 Power to restrict the carrying on of Consumer Credit Act business. U.K.

(1) In this section “restriction” means a direction that a consumer credit EEA firm may not carry on in the United Kingdom, otherwise than in accordance with such condition or conditions as may be specified in the direction, any Consumer Credit Act business which—

(a) consists of or includes carrying on any listed activity; and

(b) is specified in the direction.

(2) If it appears to the [F11 OFT] that the situation as respects a consumer credit EEA firm is such that the powers conferred by section 203(1) are exercisable, the [F11 OFT] may, instead of imposing a prohibition, impose such restriction as appears to [F12 it] desirable.

(3) A restriction—

(a) may be withdrawn, or

(b) may be varied with the agreement of the firm concerned,

by written notice served by the [F11 OFT] on the firm, and any such notice takes effect on such date as is specified in the notice.

(4) A firm contravening a restriction is guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

Textual Amendments

F11 Words in s. 204 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(8); S.I. 2003/766, art. 2, Sch. (with art. 3)

F12 Word in s. 204 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 40(8); S.I. 2003/766, art. 2, Sch. (with art. 3)

Modifications etc. (not altering text)

C5 S. 204 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 53(3); S.I. 2001/3538, art. 2(1)

C6 S. 204 applied (with modifications) (1.5.2009 for certain purposes and 1.11.2009 otherwise) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2), 26(1) (with reg. 3)

C7 S. 204 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 31(1) (with reg. 3)