Blackstone's Guide to the Financial Services and Markets Act 2000

TheBlackstone's Guide Seriesdelivers concise and accessible books covering the latest legislative changes and amendments. Published soon after enactment, they offer expert commentary by leading names on the extent, scope, and effects of the legislation, plus a full copy of the Act itself. They offer a cost-effective solution to key information needs and are the perfect companion for any practitioner needing to get up to speed with the latest changes. The Financial Services and Markets Act 2000 was the most important piece of legislation in the financial services area for many years. It made a number of important changes, including overhauling and unifying the arrangement for oversight of banking, insurance and other investment services; introducing new sanctions to restrain abuse of financial markets; establishing the Financial Services Authority as regulator of the UK's financial services industry; creating a statutory Financial Ombudsman Service to enable financial disputes to be resolved quickly and informally; establishing the Financial Services and Markets Tribunal; and creating a Financial Services Compensation Scheme to unify the arrangements for depositor and policyholder protection and investor compensation. Since the publication of the first edition in 2001, statutory amendments have been required to implement a number of important EU directives, such as The Prospectus Directive, the Market Abuse Directive, the Transparency Directive and the Markets in Financial Instruments Directive. There has also been amendment for domestic purposes, e.g. in the field of consumer credit. The new edition will cover these updates and will also give an account of what has been happening in the policy fields beneath the level of the Act itself. The new edition of thisBlackstone's Guidecombines the full text of the Act with an expert narrative. It seeks to explain the scope and impact of the Act, and bring practitioners right up-to-date with this complex piece of drafting. Developments in UK financial services regulation are taken into account where relevant in response to the global financial upheaval of 2007-9. Presented in a straightforward layout, the book enables ease of use as a reference source.

Michael Blair QC is a specialist on financial services and financial services regulation. He joined commercial Chambers (3 Verulam Buildings, Gray's Inn) in 2000 after serving as General Counsel to the Board of the Financial Services Authority from 1998-2000, and as head of the legal function in its predecessor body, the Securities and Investments Board from 1987-97. Before that he had served from 1982 to 1987 as an Under Secretary in the home civil service, latterly taking responsibility for the criminal and civil legal aid schemes in England and Wales as well as for the higher courts and matters affecting the legal profession. His practice is largely advisory though he has appeared before the Chancery Division the Financial Services and Markets Tribunal and the Financial Services Authority's Regulatory Decisions Committee.. He sits judicially as a Member of the Competition Appeal Tribunal, and is the Chairman of SWX Europe, the Swiss equities exchange in London. He has been a Board member of the Dubai Financial Services Authority since 2004, and was Master Treasurer of the Middle Temple, his Inn of Court, in 2008.

He is the author or editor of a number of works mainly in the financial services field.

Introduction, Michael Blair QC
1. The Policy Background, Paul Kennedy
Background to the Establishment of the FSA
Delivering the Policy Objectives
International Influences
Early Challenges
The Banking Crisis of 2007-8
Proposals for Reform
2. Accountability and Objectives of the FSA, Paul Kennedy
A Private Company Discharging a Public Function
Institutional Mechanisms for Accountability
Objectives and Principles
Principles of Regulation
The Accountability Mechanisms in Practice
3. Regulated and Prohibited Activities, Paul Kennedy
The General Prohibition
Regulated Activities
Activities Carried on 'By Way Of Business'
Territorial Scope of the General Prohibition
False Claims to be Authorised or Exempt
Sanctions for Breach of the General Prohibition
4. Financial Promotion, Paul Kennedy
Other UK Legislation Relevant to Financial Promotion
Other Parts of FSMA Relevant to Financial Promotion
Why is a Financial Promotion Regime Needed at all?
Restriction on Financial Promotion
Territorial Scope
Introduction to the Financial Promotion Order
Sanctions
Financial Promotion by Authorised Persons
5. Authorisation and Exemption, David Simpson
Authorisation
Passport Rights
Treaty Rights
Ending of Authorisation
Exemption Orders
Exemption of Appointed Representatives
6. Permission to Carry on Regulated Activities, David Simpson
What Is Permission?
Conditions, Limitations and Requirements
The Threshold Conditions
Variation and Cancellation of Permission
Assets Requirements
Overseas Regulators
7. Performance of Regulated Activities, David Simpson
Prohibition Orders
Positive Power of Approval
Statements of Principle on the Conduct of Approved Persons
Disciplinary Powers
Statement of Policy
8. Official Listing, Andrew Henderson
Background to Part 6
Part 6 and the FSA
Listing
Offers to the Public
Sponsors
Continuing Obligations
Compensation, Penalties and Investigations
9. Control of Business Transfers, David Simpson
10. Penalties for Market Abuse, Helen Marshall
Market Offences
Drafting and Revision
Framework for Market Abuse Regime
Behaviours Constituting Market Abuse
Procedure
Penalties
11. Hearings and Appeals, Helen Marshall
Composition of the Tribunal
References to the Tribunal
Proceedings before the Tribunal
Decisions of the Tribunal
Appeals
12. Rules and Guidance, Andrew Henderson
Rules
Guidance
Competition Scrutiny
13. Information Gathering and Investigations, Helen Marshall
Powers to Gather Information
Reports by Skilled Persons
General Investigations
Particular Investigations
Investigation into Collective Investment Schemes
Investigations in Support of Overseas Regulators
Investigation Powers: General Provisions
Powers of Investigators
Admissibility of Statements made to Investigators
Entry of Premises under Warrant
Consequences of Failure to Cooperate
14. Control over Authorised Persons, Andrew Henderson
Introduction
EC Legislation: The Acquisitions Directive
Notices of Acquisition
Assessment by the FSA
Enforcement Powers
Offences
15. Incoming Firms: Intervention by the FSA, Helen Marshall
Domestic Ground for Intervention
Scope of the Power of Intervention
Exercise of Powers in Support of Overseas Regulators
Consumer Credit
16. Disciplinary Measures, Helen Marshall
What Contraventions may be Disciplined?
FSA Approach to Discipline
FSA Approach to Public Censure
FSA Approach to Financial Penalties
Early Settlement Scheme
Disciplinary Procedure
Financial Penalties: What Happens to the Money?
Article 6 of the European Convention on Human Rights
17. Compensation, Alex Kuczynski
Introduction
The Scheme Manager
European Directives
The Scheme
Funding
Claims Experience
18. The Ombudsman Scheme, Alex Kuczynski
Introduction
The Scheme Operator
Jurisdiction - Compulsory and Voluntary
Dispute Resolution
Funding
FOS'S Experience
19. Collective Investment Schemes, Andrew Henderson
General Provisions
Restrictions on Promotion
Authorised Unit Trust Schemes
Open-Ended Investment Companies
Overseas Recognised Schemes
Investigations
20. Recognised Investment Exchanges and Clearing Houses, Emma Vick
The Investment Exchanges
The Clearing Houses Today
The Recognition Regime
Applications for Recognition as an RIE or RCH
Overseas Investment Exchanges and Clearing Houses
The Recognition Requirements
Default Rules
The RIE and RCH Sourcebook
Complaints against a Recognised Body
Competition Scrutiny
The FSA's Rule-Making Powers
Investment Exchanges and Clearing Houses Act 2006
MiFID
Revocation of a Recognition Order
21. Lloyd's of London, David Simpson
Regulation of Lloyd's under FSMA
Powers Exercised by the FSA
Other Lloyd's Participants Regulated under FSMA 2000
22. Provision of Financial Services by Members of the Professions, Andrew Henderson
Introduction
Exemption from the General Prohibition
Professional Designated Bodies
Role of the FSA
Disclosure of Exempt Status
Authorised Professional Firms
23. Mutual Societies, Paul Kennedy
24. Auditors and Actuaries, Andrew Henderson
Introduction
Appointment
Information
Disclosure and Immunity
Notification on Leaving Office
Disqualification
25. Public Record, Disclosure of Information and Cooperation, Helen Marshall
The Public Record to be Maintained by the FSA
Restrictions on Disclosure of Confidential Information
Duty of the FSA to Cooperate with other Authorities
26. Insolvency, Helen Marshall
Voluntary Arrangements
Administration Orders
Receiverships
Voluntary Winding Up
Winding Up by the Court
Winding Up Petitions for EEA and Treaty Firms
Bankruptcy
Provisions against Debt Avoidance
Supplemental Provisions in Insurance Cases
27. Injunctions and Restitution, Helen Marshall
Contravention of Relevant Requirements
Market Abuse
Restitution Required by the FSA
28. Notices, Helen Marshall
Statutory Notices
Warning Notices
Decision Notices
Notices of Discontinuance
Final Notices
Publication
Third-Party Rights
Access to FSA Material
Supervisory Notices
29. Criminal Offences and their Prosecution, Helen Marshall
Prosecution of Offences
Specific Offences
30. Miscellaneous, Interpretation and Supplemental, Paul Kennedy
Reviews of Compliance Failures
Third Countries: Community Measures
International Obligations
Gaming
Interpretation
Supplemental Provisions
Appendix 1: Financial Services and Markets Act 2000 (as amended)