Financial Services and Markets Act 2000
From Wikipedia, the free encyclopedia
The Financial Services and Markets Act 2000 (FSMA 2000) is an act of the United Kingdom parliament which created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking.
Some of the key sections of this act are:
- Section 2 outlines the regulatory objectives of the FSA: (a) market confidence; (b) public awareness; (c) the protection of consumers; and (d) the reduction of financial crime.
- Section 19 requires firms to be authorised to conduct regulated activities.
- Section 21 makes it a criminal offence to issue a financial promotion in the United Kingdom unless it is issued or approved by an authorised firm or exempt via the Financial Promotions Order.
- Section 59 states that a person can not carry out certain controlling functions in a firm without approval by the FSA.
- Section 71 allows private persons to sue a firm for damages if a person performing a controlled function is not approved.
- Section 118 concerns market abuse.
- Section 132 establishes the Financial Services and Markets Tribunal.
- Section 138 grants the FSA rule-making power.
- Section 150 allows private persons to sue for damages if an authorised firm has breached certain rules.
- Section 165 gives the FSA power to require certain information.
- Section 397 makes it a criminal offence to mislead a market or investors.
