The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017
PART 1Introductory provisions
1Citation and commencement
2Interpretation
3Designation of competent authorities
PART 2Exempt and third-country investment firms
CHAPTER 1Exempt investment firms
4Applications to be an exempt investment firm
5Limitation on exempt investment firms
6Requirements applying to exempt investment firms
7Transitional provision: exempt investment firms
8Meaning of “exempt investment firm” in Chapter 1
CHAPTER 2Third country investment firms
9Third country firms with an EEA branch: provision of services
10FCA power to intervene in relation to third country firms with an EEA branch
11Third country firms registered with ESMA: provision of services
12FCA power to intervene in relation to third country firms registered with ESMA
13Third country firms: provision of services to eligible counterparties or clients considered to be professionals
14Third country firms: financial promotions
15Interpretation of Chapter 2
PART 3Position limits and position management controls in commodity derivatives
16FCA duty to establish position limits
17Exemption for non-financial entities
18Content of position limits
19FCA duty to use ESMA methodology to establish position limits and to review if market changes
20ESMA opinions on position limits
21Position limits affecting multiple EEA jurisdictions
22Cooperation with other competent authorities regarding position limits affecting multiple EEA jurisdictions
23General requirements for position limits
24FCA duty to notify ESMA of established position limits and position management controls
25Procedure in exceptional cases
26Effect of position limits established by the FCA or other competent authorities in the EEA
27FCA power to require information
28FCA power to intervene
29Interpretation of Part 3
PART 4Algorithmic trading etc by members of trading venues covered by certain exemptions from the markets in financial instruments directive
30Algorithmic trading
31Provision of information to the FCA concerning algorithmic trading
32Direct electronic access
33Provision of information to the FCA concerning direct electronic access
34Acting as a general clearing member
35Synchronisation of business clocks
36FCA power to impose requirements
37Interpretation of Part 4
PART 5Removal of persons from the management board of an investment firm, credit institution, or recognised investment exchange
38FCA and PRA power to remove a person from a management board
39Right to refer matters to the Tribunal
40Removal of persons from management boards: procedure
PART 6Miscellaneous FCA functions in relation to the markets in financial instruments directive and markets in financial instruments regulation
41Provision of FCA record of recognised investment exchanges to ESMA and other competent authorities
42Provision of information to ESMA about multilateral trading facilities etc
43Provision to ESMA of reports by recognised investment exchanges of infringements of the exchange's rules, disorderly trading, suspected market abuse, and systems disruptions
44Authorisation of members of management bodies to hold additional non-executive directorship
45Provision of information to ESMA regarding sanctions and measures imposed for the purposes of the markets in financial instruments directive
46Provision of information to other competent authorities regarding persons engaged in algorithmic trading or providing direct electronic access
47Notifications, reports, and applications relating to the markets in financial instruments directive or the markets in financial instruments regulation
PART 7Miscellaneous
48Refund of fees by the Gambling Commission
49Administration and enforcement of the Regulations
50Amendments to legislation
51Review
SCHEDULE 1Administration and enforcement of Parts 3, 4, and 5
PART 1Interpretation
1Interpretation of Schedule 1
2Directly applicable EU regulations
PART 2The FCA and the PRA
Functions of the FCA and the PRA
3Functions of the FCA
4Functions of the PRA
Supervision
5Monitoring and enforcement
6Co-operation
7Guidance
8Reporting requirements
PART 3Administrative sanctions and offences
Administrative sanctions
9Interpretation of Part 3
10Public censure
11Financial penalties
12Warning notice
13Decision notice
14Statements of policy
15Statements of policy: procedure
Offences
16Misleading the FCA or PRA
17Restriction on penalties
PART 4Application of the Act for the purposes of the Regulations
18Application of Part 9 of the Act (hearings and appeals)
19Application of Part 11 of the Act (information gathering and investigations)
20Restrictions on disclosure of information
21Application of Part 25 of the Act (injunctions and restitution)
22Application of Part 26 of the Act (notices)
23Application of Part 27 of the Act (offences)
24Application of section 413 of the Act (protected items)
25FCA: penalties, fees and exemption from liability in damages
26PRA: penalties, fees and exemption from liability in damages
PART 5Application of secondary legislation for the purposes of the Regulations
27Service of notices
28Disclosure of confidential information
29Communications by auditors
SCHEDULE 2Amendments to the Financial Services and Markets Act 2000
1The Act is amended as follows.
2Amendments to Part 3 (authorisation and exemption)
3(1) Section 39A (certain tied agents operating outside the United...
4Amendments to Part 4A (permission to carry on regulated activities)
5(1) Section 55R (persons connected with an applicant) is amended...
6Amendments to Part 6 (official listing)
7(1) Section 102A (meaning of “securities” etc) is amended as...
8In section 103(1) (interpretation of Part 6) in the definition...
9Amendments to Part 8 (provisions relating to market abuse)
10(1) Section 122I (power to suspend trading in financial instruments)...
11After section 122I insert— Power to suspend auctioning of auctioned...
12In section 123(1)(c)(i) (power to impose penalties or issue censure)...
13(1) Section 123A (power to prohibit individuals from managing or...
14In section 123B(1)(c) (suspending permission to carry on regulated activities...
15In section 124(10) (statement of policy) in paragraph (c)(i) of...
16(1) Section 129 (power of the court to impose administrative...
17In section 131AB (interpretation)— (a) in the definition of “financial...
18Amendments to Part 9A (rules and guidance)
19Amendments to Part 12 (control over authorised persons)
20Amendments to Part 13 (incoming firms: intervention by FCA or PRA)
21(1) Section 195A (contravention by relevant EEA firm etc of...
22Amendments to Part 14 (disciplinary measures)
23Amendments to Part 15 (the financial services compensation scheme)
24In section 214(1) (general)— (a) in paragraph (a)—
25(1) Section 215 (rights of the scheme in insolvency) is...
26(1) Section 218A (regulators power to require information) is amended...
27(1) Section 220 (scheme manager's power to inspect information held...
28(1) Section 224 (scheme manager's power to inspect documents held...
29Amendments to Part 18 (recognised investment exchanges and clearing houses)
30After section 287 (application by an investment exchange) insert— Application...
31In section 290(1A) (recognition orders)— (a) for “Community” substitute “...
32In section 292(3) (overseas investment exchanges and overseas clearing houses),...
33In section 301E(4)(a) (disregarded holdings) for “4.1(8)” substitute “ 4.1.7...
34(1) Section 312A (exercise of passport rights by EEA market...
35(1) Section 312B (removal of passport rights from EEA market...
36(1) Section 312C (exercise of passport rights by recognised investment...
37In section 312D (interpretation of Chapter 3A of Part 18)—...
38In section 313(1) (interpretation of Part 18)—
39Amendments to Part 18A (suspension and removal of financial instruments from trading)
40Omit section 313C (notification in relation to suspension or removal...
41After section 313C insert— Suspension or removal of financial instruments...
42(1) Section 313D (interpretation of Part 18A) is amended as...
43Amendments to Part 20 (provision of financial services by members of the professions)
44Amendments to Part 23 (public record, disclosure of information and co-operation)
45Amendments to Part 26 (notices)
46After section 391C (publication: special provisions relating to the UCITs...
47After section 395(13)(bbza) (the FCA's and PRA's procedures) insert—
48Amendments to Part 27 (offences)
49Amendments to Part 28 (miscellaneous)
50Omit sections 412A (approval and monitoring of trade-matching and reporting...
51Amendments to Part 29 (interpretation)
52In section 422A(4)(a) (disregarded holdings) for “4.1(8)” substitute “ 4.1.7...
53In section 424A(5)(b) (investment firm) for “4.1.20” substitute “ 4.1.55...
54Amendments to Schedule 3 (EEA passport rights)
55Amendments to Schedule 10A (liability of issuers)
SCHEDULE 3Amendments to secondary legislation made under the Financial Services and Markets Act 2000
1The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001
2Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
3Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001
4Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
5Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001
6Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013
7Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013
8Financial Services and Markets Act 2000 (PRA-Regulated Activities) Order 2013
9Financial Services and Markets Act 2000 (Ring-Fenced Bodies and Core Activities) Order 2014
SCHEDULE 4Amendments to other primary legislation
1Building Societies Act 1986
2Finance Act 1991
3Friendly Societies Act 1992
4Data Protection Act 1998
5Competition Act 1998
6Terrorism Act 2000
7Proceeds of Crime Act 2002
8Income Tax (Trading and Other Income) Act 2005
9Companies Act 2006
10Income Tax Act 2007
11Counter-Terrorism Act 2008
12Corporation Tax Act 2010
13Finance Act 2010
14Finance Act 2011
15Financial Services (Banking Reform) Act 2013
SCHEDULE 5Amendments to other secondary legislation
1Income Tax (Manufactured Overseas Dividends) Regulations 1993
2Financial Markets and Insolvency (Settlement Finality) Regulations 1999
3Uncertificated Securities Regulations 2001
4Insurers (Reorganisation and Winding Up) Regulations 2004
5Credit Institutions (Reorganisation and Winding Up) Regulations 2004
6Occupational Pension Schemes (Investment) Regulations 2005
7Authorised Investment Funds (Tax) Regulations 2006
8Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007
9Payment Services Regulations 2009
10Banking Act 2009 (Restriction of Partial Property Transfers) Order 2009
11Offshore Funds (Tax) Regulations 2009
12Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010
13Electronic Money Regulations 2011
14Recognised Auction Platforms Regulations 2011
15Investment Trust (Approved Company) (Tax) Regulations 2011
16Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Directors' Reports) (Authorised Person) Order 2012
17Unauthorised Unit Trusts (Tax) Regulations 2013
18Capital Requirements Regulations 2013
19Stamp Duty and Stamp Duty Reserve Tax (Exchange Traded Funds) (Exemption) Regulations 2014
20Financial Services Act 2012 (Relevant Functions in Relation to Complaints Scheme) Order 2014
21Public Interest Disclosure (Prescribed Persons) Order 2014
22Reports on Payments to Governments Regulations 2014
23Public Contracts Regulations 2015

2017 No. 701

Financial Services And Markets

The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

Made

Laid before Parliament

Coming into force in accordance with regulation 1

The Treasury are a government department designated M1 for the purposes of section 2(2) of the European Communities Act 1972 M2 in relation to financial services.

The Treasury, in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and sections 286(1) M3 and (4F) M4, and 428(3) of the Financial Services and Markets Act 2000 make the following Regulations.

Annotations:
Marginal Citations
M2

1972 c.68. Section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c. 51) and by section 3 of, and the Schedule to, the European Union (Amendment) Act 2008 (c. 7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c.51) regulations may be made under section 2(2) of the European Communities Act to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting the Agreement signed at Brussels on 17th March 1993 (Cm 2183).

M3

Subsection (1) was amended by paragraph 2(2) of Schedule 8 to the Financial Services Act 2012 (c.21).

M4

Subsection (4F) was inserted by section 30 of the Financial Services Act 2012.