Financial Services and Markets Act 2000

[F1 Transition on cancellation of Gibraltar permission U.K.

Textual Amendments

F1 Sch. 2A inserted (1.9.2023 for specified purposes) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 6 (as amended (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 100(3)(b)); S.I. 2023/934, reg. 2(a)

65 (1) Sub-paragraphs (2) and (4) apply where the Gibraltar regulator— U.K.

(a) cancels a Gibraltar-based person's permission to carry on in Gibraltar an activity in relation to which the person has a Schedule 2A permission, or

(b) varies such a permission so as to remove permission to carry on such an activity (including by adding or varying a restriction).

(2) For the purposes of this Schedule, the person is to be treated as continuing to have the permission from the Gibraltar regulator but—

(a) only so far as is necessary for one or more of the purposes described in sub-paragraph (3), and

(b) subject to the time limit in paragraph 68.

(3) The purposes are—

(a) for the performance of a protected contract;

(b) to reduce the financial risk of a party to a protected contract or a third party affected by the performance of a protected contract;

(c) to transfer the property, rights or liabilities under a protected contract to a person authorised to carry on a regulated activity by virtue of section 31(1)(a);

(d) to comply with a requirement imposed by or under an enactment.

(4) A UK regulator may exercise the powers under paragraph 49(1) (UK regulator's initiative: imposing, varying and cancelling requirements) in relation to the person if it appears to the UK regulator that it is desirable to do so in order to advance—

(a) in the case of the FCA, one or more of its operational objectives, or

(b) in the case of the PRA, one of its objectives.

(5) In this paragraph—

• “enactment” has the same meaning as in paragraph 60;

• “protected contract” means—

  (a)

  an existing contract, or

  (b)

  a contract specified or described in a direction by the appropriate UK regulator under paragraph 67(1).

(6) In sub-paragraph (5), “existing contract”, in relation to a person referred to in sub-paragraph (1), means a contract entered into before the person's permission is cancelled or varied as described in that sub-paragraph, but—

(a) does not include a contract specified or described in a direction under paragraph 67(2), and

(b) except as otherwise provided in such a direction, does not include—

(i) a variation of a contract agreed on or after that day, or

(ii) a contract renewed on or after that day.

(7) In this paragraph, references to the performance of a protected contract include the performance of an obligation under the contract which is contingent or conditional.]