Financial Services Act 2012

Financial Services Act 2012

2012 CHAPTER 21

Commentary

Part 2 - Amendments of Financial Services and Markets Act 2000

Miscellaneous amendments of FSMA 2000

Section 46 and Schedule 16: Members of the professions

493. Section 46 introduces Schedule 16 which makes amendments to Part 20 of FSMA (provision of financial services by members of the professions). Part 20 provides that members of a profession may, subject to certain conditions, carry on regulated activities without authorisation where the activity is incidental to the provision of professional services which are supervised and regulated by a professional body which has been designated by the Treasury (see section 327, which disapplies the general prohibition in section 19, that is, the prohibition from carrying on regulated activities unless the person in question is authorised or exempt).

494. Paragraph 1 of Schedule 16 amends section 325 of FSMA to require the FCA to keep itself informed about the way in which designated professional bodies supervise and regulate the carrying on of exempt regulated activities by their members and the way in which such members are carrying on exempt regulated activities.

495. Paragraph 2 amends section 328 (directions in relation to the general prohibition) to enable the FCA to direct that the exemption under section 327 is not to apply; a direction under section 328 may be given in relation to different classes of person or different descriptions of regulated activity; and where a direction is in force, any class of person specified in the direction would need authorisation under Part 4A of FSMA to carry on any activities specified in the direction. Paragraph 4 makes related amendments to section 330 (consultation on directions under section 328). Paragraph 4 also amends the definition of “cost benefit analysis” in section 330(10).

496. Paragraph 3 amends section 329 (orders in relation to the general prohibition) to enable the FCA to make an order disapplying section 327 (disapplication of the general prohibition) in relation to a person whom the FCA considers is not fit and proper to carry on regulated activities in accordance with section 327. Paragraph 5 makes related amendments to section 331 (procedure on making or varying orders under section 329).

497. Paragraph 6 amends section 332 (rules relating to persons to whom the general prohibition does not apply) to enable the FCA to make rules applicable to persons to whom, as a result of section 327, the general prohibition does not apply.