(1) In this Part—
“authorised person” has the meaning given in section 31 of FSMA 2000;
“regulatory action” means one or more measures described in regulation 41(4);
“relevant client” has the meaning given in regulation 7.
(2) In this Part—
(a) references to “registered Swiss suppliers” include any person who was a registered Swiss supplier immediately before—
(i) the FCA has, under regulation 9, removed the entry of that person from the register or modified that entry,
(ii) Recognition of a Covered Sector or Sectors or part thereof has been withdrawn under Article 21 of the Agreement, or
(iii) the Agreement has ceased to be in force,
(b) references to “registered services”, in relation to a registered Swiss supplier, include any service which was included in the entry on the register for the registered Swiss supplier before that entry was removed or modified.
(1) This regulation applies where a UK regulator reasonably considers that—
(a) the circumstances described in paragraph 1 of Article 20 of the Agreement have arisen,
(b) those circumstances cannot adequately be addressed under any other provision of these Regulations, and
(c) paragraph (2) applies.
(2) This paragraph applies where—
(a) the FCA reasonably considers that it is appropriate to take regulatory action which advances one or more of its operational objectives, or
(b) the PRA reasonably considers that it is appropriate to take regulatory action which—
(i) advances its general objective, or
(ii) so far as relating to the activities of effecting contracts of insurance, or of carrying out contracts of insurance, is compatible with its insurance objective.
(3) The objectives of the FCA and the PRA referred to in paragraph (2) are their objectives as specified in Part 1A of FSMA 2000.
(4) Where this regulation applies, a UK regulator may, for the Agreement purposes, take one or more of the following measures—
(a) impose specified restrictions on the provision of a relevant service to a specified category of relevant clients, or in relation to a specified category of financial instruments by—
(i) a registered Swiss supplier,
(ii) a specified class of registered Swiss suppliers, or
(iii) all registered Swiss suppliers,
(b) make the continued provision of a registered service (“the relevant registered service”) by—
(i) a registered Swiss supplier,
(ii) a specified class of registered Swiss suppliers, or
(iii) all registered Swiss suppliers,
subject to specified conditions,
(c) prohibit—
(i) a registered Swiss supplier,
(ii) a specified class of registered Swiss suppliers, or
(iii) all registered Swiss suppliers,
from continuing to provide from Switzerland one or more registered services in the United Kingdom.
(5) The conditions which a UK regulator may impose under paragraph (4)(b) may include any requirement which the UK regulator could impose under section 55L (imposition of requirements by FCA) or 55M (imposition of requirements by PRA) of FSMA 2000 on an authorised person with permission under Part 4A of FSMA 2000 to carry on a regulated activity which is the same as or equivalent to the relevant registered service.
(6) Before taking any action under paragraph (4) in relation to any person (“P”)—
(a) the PRA must consult the FCA,
(b) the FCA must consult the PRA if, were P to be an authorised person (within the meaning of section 31 of FSMA 2000), P would be carrying on one or more PRA-regulated activities (within the meaning of section 22A of FSMA 2000),
(c) the UK regulator must notify the Treasury of their proposals in accordance with paragraph (7).
(7) A notification under paragraph (6) must—
(a) identify—
(i) the circumstances which have arisen, and
(ii) why those circumstances cannot be addressed adequately under the other provisions of these Regulations, and
(b) specify the measure the UK regulator wishes to take, identifying—
(i) each registered Swiss supplier in relation to which the measure will be taken, and
(ii) any restrictions, conditions or prohibitions the UK regulator wishes to impose, and
(c) state the UK regulator’s reasons for proposing to take the measures specified under sub-paragraph (b).
(8) The UK regulator is not required to include any information in a notification under paragraph (7) if that information is a protected item under section 413 of FSMA 2000 (protected items).
(9) Once the Treasury have been notified in accordance with paragraph (7), the UK regulator concerned may take the proposed regulatory action by giving notice in accordance with regulation 42.
(10) In this regulation—
(a) a UK regulator is acting for the “Agreement purposes” when it is taking a measure for one or more of the purposes set out in paragraph 1 of Article 20 of the Agreement,
(b) “specified”, except in paragraph (3), means specified in the notice given by the UK regulator under regulation 42.
(1) When the UK regulator proposes to impose a measure under regulation 41(4), the UK regulator must give notice to each registered Swiss supplier (“A”) to which the measure will apply.
(2) The measure takes effect—
(a) immediately, if the notice given under paragraph (1) states that this is the case, or
(b) on such date as may be specified in the notice.
(3) The imposition of a measure may be expressed to take effect immediately only if the UK regulator concerned, having regard to the ground on which it is taking the measure, reasonably considers that it is necessary for the measure to take effect immediately.
(4) A notice given under paragraph (1) must—
(a) give details of the measure being imposed,
(b) state the UK regulator’s reasons for taking the measure,
(c) inform A that A may make representations to the UK regulator within such period as may be specified in the notice,
(d) state the date on which the measure comes into effect,
(e) if A’s entry on the register will be removed or modified because of the measure, specify—
(i) details of the removal or modification of the entry on the register, and
(ii) the date on which the removal or modification takes effect,
(f) state the consequences of A failing to comply with the measure, and
(g) inform A of A’s right to refer the matter to the Tribunal.
(5) The UK regulator may extend the period allowed under the notice for making representations.
(6) If, having considered any representations made in response to the notice given under paragraph (1), the UK regulator decides—
(a) to take the proposed measure,
(b) to vary the proposed measure, or
(c) if the measure has been imposed, not to rescind the proposed measure,
the UK regulator must give a notice of its decision to A, informing A of A’s right to refer the matter to the Tribunal.
(7) A notice given under paragraph (6) must—
(a) contain the information referred to in paragraph (4)(a), (b), (d) and (f), and
(b) inform A of A’s right to refer the matter to the Tribunal.
(8) If, having considered any representations made in response to the notice given under paragraph (1), the UK regulator decides—
(a) not to impose the proposed measure, or
(b) to rescind the proposed measure,
the UK regulator must give notice of its decision to A.
(9) If a notice given under this regulation informs A of A’s right to refer a matter to the Tribunal, it must also inform A of the procedure on such a reference.
(10) The UK regulator must inform FINMA of any measure imposed under regulation 41 as soon as possible.
(1) A registered Swiss supplier who is aggrieved by the exercise by the UK regulator of their powers under regulation 41 may refer the matter to the Tribunal.
(2) A reference by a registered Swiss supplier under paragraph (1) is to be treated as being made under FSMA 2023 for the purposes of section 133 of FSMA 2000 (proceedings before Tribunal: general provision).
44 Consequences of breach of prohibition, condition or restriction
(1) Sections 205 (public censure), 207 (proposal to take disciplinary measures) and 208 (decision notice) of FSMA 2000 apply in relation to a prohibition, condition or restriction imposed by a UK regulator under regulation 41(4), as if—
(a) the prohibition, condition or restriction were a relevant requirement (within the meaning of section 204A of FSMA 2000), and
(b) the references in sections 205, 207 and 208 to an authorised person include a person who is a registered Swiss supplier with the following modifications.
(2) Section 207 of FSMA 2000 applies as if subsections (1)(b) and (c), (1A), (3) and (4) were omitted.
(3) Section 208 of FSMA 2000 applies as if subsections (1)(b) and (c), (1A), (3), (3A), (4)(b) and (c), and (5) were omitted.