SCHEDULE 2Amendments to the Financial Services and Markets Act 2000
Amendments to Part 15 (the financial services compensation scheme)23
1
Section 213 (the compensation scheme) is amended as follows.
2
In subsection (1) M1—
a
at the end of paragraph (a) omit “or”;
b
after paragraph (a) insert—
aa
relevant exchanges are unable, or likely to be unable, to satisfy claims made against them in connection with a regulated activity relating to a trading facility carried on by the exchange, or
c
in paragraph (b) after “relevant persons” insert “
or relevant exchanges
”
.
3
In subsection (3)—
a
for paragraphs (a) and (b) substitute—
a
to assess and pay compensation, in accordance with the scheme, to claimants in respect of claims made in connection with—
i
a regulated activity carried on (whether or not with permission) by relevant persons; and
ii
a regulated activity relating to a trading facility carried on (whether or not in accordance with any requirements relating to that activity resulting from section 286) by relevant exchanges; and
b
to have power to impose levies for the purpose of meeting its expenses (including in particular expenses incurred, or expected to be incurred, in paying compensation, borrowing or insuring risks)—
i
on authorised persons, or any class of authorised person;
ii
on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or any class of such exchanges; or
iii
on authorised persons and on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or on any class of such persons and exchanges.
4
For subsection (4) substitute—
4
The compensation scheme may provide for the scheme manager to have power to impose levies—
a
on authorised persons, or any class of authorised person;
b
on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or any class of such exchanges; or
c
on authorised persons and on recognised investment exchanges carrying on a regulated activity relating to a trading facility, or on any class of such persons and exchanges,
for the purpose of recovering the cost (whenever incurred) of establishing the scheme.
5
For subsection (5) M2 substitute—
5
In making any provision of the scheme by virtue of subsection (3)(b), the regulators must take account of the desirability of ensuring that the amount of the levies imposed on a particular —
a
class of authorised person;
b
class of recognised investment exchange carrying on a regulated activity relating to a trading facility; or
c
class of authorised person and of recognised investment exchanges carrying on a regulated activity relating to a trading facility;
reflects, so far as is practicable, the amount of claims made, or likely to be made in respect of that class of person, exchange, or persons and exchanges.
6
After subsection (11) M3 insert—
12
In this Part (except in sections 220 and 224) “relevant exchange” means a body corporate or unincorporated association which was a recognised investment exchange carrying on a regulated activity relating to a trading facility at the time the act or omission giving rise to the claim against it, or against a successor falling within subsection (1)(b), took place.
13
In this Part “regulated activity relating to a trading facility” means—
a
the regulated activity of operating a multilateral trading facility; or
b
the regulated activity of operating an organised trading facility.