The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017
2017 No. 701
Financial Services And Markets
The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017
Made 21th June 2017
Laid before Parliament 22th June 2017
Coming into force in accordance with regulation 1
The Treasury are a government department designated1for the purposes of section 2(2) of the European Communities Act 19722in 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)3and (4F)4, and 428(3) of the Financial Services and Markets Act 2000 make the following Regulations.
PART 1
Introductory provisions
Citation and commencement
1.—(1) These Regulations may be cited as the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017.
(2) These Regulations come into force on 29th June 2017 —
(a)
(a) to enable the following to be done under the Act, as amended and applied by these Regulations—
(i) rules to be made under section 137R5(financial promotion rules) of the Act;
(ii) rules to be made under sections 2136(the compensation scheme) or 2147(general) of the Act;
(iii) rules to be made under paragraph 23 of Schedule 1ZA8(the Financial Conduct Authority) to the Act, including rules that may be made as a result of amendments by these Regulations to the Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 20139;
(iv) fees to be charged under any rules that are made by virtue of paragraph (iii); and
(v) rules to be made under paragraph 19(10) or 20(4C)10of Schedule 3 (EEA Passport Rights) to the Act; and
(b)
(b) to enable rules to be made under regulation 11 (FCA rules) of the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 200111.
(3) These Regulations come into force on 3rd July 2017—
(a)
(a) to enable—
(i) applications to be made under regulation 4;
(ii) directions to be given under regulation 16(1) to establish position limits applying on or after 3rd January 2018;
(iii) applications to be made, directions to be given, and requirements to be imposed, under regulation 17;
(iv) requirements to be imposed and directions to be given under regulation 27;
(v) requirements to be imposed under regulations 31 and 33; and
(vi) the FCA and the PRA to prepare and issue a statement of policy under paragraph 14 of Schedule 1; and
(b)
(b) to enable notifications to be given, reports or applications to be made, directions to be given, and requirements to be imposed under regulation 47 for the purposes of—
(i) the markets in financial instruments directive, including any directly applicable EU regulation made under the directive, as it has effect on or after 3rd January 2018; and
(ii) the markets in financial instruments regulation, including any directly applicable EU regulation made under that regulation, as it applies under Article 5512of that regulation; and
(c)
(c) for the purposes of—
(i) paragraphs 6, 7, 16, 19, 20, 22, 23 and 28 of Schedule 1; and
(ii) paragraphs 25 and 26 of that Schedule in so far as they relate to a matter referred to in sub-paragraph (a) or (b) or in paragraph (i) of this sub-paragraph.
(4) These Regulations come into force on 31st July 2017 —
(a)
(a) to enable the following to be done under the Act, as amended and applied by these Regulations—
(i) notices to be given or sent under section 312A(1)(b)13(exercise of passport rights by EEA market operator) or 312C14(exercise of passport rights by recognised investment exchange) of the Act;
(ii) entries to be added, removed, or altered in the record the FCA maintains under section 347(1)15of the Act;
(iii) notices relating to any relevant regulated activity to be given or received under paragraph 13(1)16, (1B)17, or (1C)18of Schedule 3 to the Act ;
(iv) the PRA to give consent under paragraph 13(1D)19of that Schedule;
(v) preparations to be made under paragraph 13(1E)20or (1F)21of that Schedule;
(vi) notices relating to any relevant regulated activity to be given or received under paragraph 14(1)(ba)22, (1B)23, or (1C)24of that Schedule ;
(vii) preparations to be made under paragraph 14(1D)25or 14(1E)26of that Schedule; and
(viii) notices relating to any relevant regulated activity to be given or received under paragraph 19(2)27, (4)28, (7B)29, (8)30, (11)31, or (12)32, or paragraph 20(1)33, (3)34, or (4)35of that Schedule; and
(b)
(b) to enable notices to be given under the following provisions of the Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 200136for the purposes of Schedule 3 to the Act, as amended and applied by these Regulations—
(i) regulation 437(management companies, credit institutions and financial institutions: changes);
(ii) regulation 4A38(investment firms: changes to branch details);
(iii) regulation 5A39(investment firms: changes to services);
(iv) regulation 1140(UK management companies, credit institutions and financial institutions);
(v) regulation 11A41(UK investment firms: changes to branch details); and
(vi) regulation 12A42(UK investment firms: changes to services).
(5) In paragraph (4) “relevant regulated activity” means a regulated activity which relates to any specified activity or specified investment in Part 2 or 3 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 200143that was amended or inserted by the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 201744.
(6) These Regulations come into force for all other purposes on 3rd January 2018.
Interpretation
2.—(1) In these Regulations—
“the Act” means the Financial Services and Markets Act 200045;
“algorithmic trading” has the meaning given by Article 4.1.39 (definitions) of the markets in financial instruments directive;
“ancillary services” has the meaning given by Article 4.1.3 (definitions) of the markets in financial instruments directive;
“authorised person” has the same meaning as in section 31(2) (authorised persons) of the Act;
“branch” has the meaning given by Article 4.1.30 (definitions) of the markets in financial instruments directive;
“client” has the meaning given by Article 4.1.9 of the markets in financial instruments directive;
“the Commission” means the Commission of the European Union;
“commodity derivative” has the meaning given by Article 4.1.50 of the markets in financial instruments directive;
“competent authority” has the meaning given by Article 4.1.26 of the markets in financial instruments directive;
“credit institution” has the meaning given by Article 4.1.27 of the markets in financial instruments directive;
“derivative” means a financial instrument listed in points (4) to (10) of Section C of Annex 1 of the markets in financial instruments directive;
“direct electronic access” has the meaning given by Article 4.1.41 of the markets in financial instruments directive;
“EEA” means the European Economic Area created by the EEA agreement;
“emission allowance” means an emission allowance as described in point (11) of Section C of Annex 1 of the markets in financial instruments directive;
“ESMA” means the European Securities and Markets Authority established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority)46;
“the FCA” means the Financial Conduct Authority;
“financial instrument” has the meaning given by Article 4.1.15 of the markets in financial instruments directive, read with Articles 5 to 8 of Commission Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EUof the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive47;
“investment activity” means an activity listed in Section A of Annex I of the markets in financial instruments directive relating to a financial instrument;
“investment firm” has the meaning given by Article 4.1.1 of the markets in financial instruments directive;
“investment service” means any service listed in Section A of Annex 1 of the markets in financial instruments directive relating to a financial instrument;
“investment services and activities” means any of the services and activities listed in Section A of Annex 1 of the markets in financial instruments directive relating to a financial instrument;
“market abuse” means a contravention of Article 14 (prohibition of insider dealing and of unlawful disclosure of inside information) or 15 (prohibition of market manipulation) of the market abuse regulation;
“market abuse regulation” means Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation)48;
“markets in financial instruments directive” means Directive 2014/65/EUof the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (recast)49;
“markets in financial instruments regulation” means Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments50;
“multilateral trading facility” has the meaning given by Article 4.1.22 (definitions) of the markets in financial instruments directive;
“the PRA” means the Prudential Regulation Authority;
“Part 4A permission” has the meaning given by section 55A(5)51(application for permission) of the Act;
“recognised investment exchange” has the meaning given by section 285(1)(a)52(exemption for recognised investment exchanges and clearing houses) of the Act;
“regulated activity” has the meaning given by section 2253(regulated activities) of the Act;
“trading venue” has the meaning given by Article 4.1.24 of the markets in financial instruments directive; and
“the...
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