Content Options

Content Options

View Options

Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2012-12-13.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

FINMAR 1.2 Financial stability information powers

Introduction

FINMAR 1.2.1G

The FSA has a regulatory objective of contributing to the protection and enhancement of UK financial stability. Section 250 of the Banking Act 2009 imposes a duty on the FSA to collect information that it thinks is, or may be, relevant to the stability of individual financial institutions or to one or more aspects of the UK financial system.

FINMAR 1.2.2G

Some information relevant to UK financial stability will be accessible to the FSA:

  1. (1)

    through authorised persons' regular reports to the FSA; or

  2. (2)

    from other UK or international authorities;

  3. (3)

    through information gathered by the FSA under other information gathering powers, such as section 165 of the Act or section 250(2) of the Banking Act 2009.

FINMAR 1.2.3G

The FSA may use the financial stability information power to gather additional information relevant to UK financial stability. The information may relate to the exercise of the FSA's functions, or the FSA may collect the information in order to disclose it to another person or authority, for example the Bank of England or the Treasury. Information relevant to financial stability may be held by an authorised person or by an unauthorised person.

FINMAR 1.2.4G

When the FSA seeks additional information from an authorised person or an unauthorised person it may not in all cases be necessary to exercise statutory information-gathering powers. However, the FSA will use its statutory powers if it believes it is appropriate to do so and, in urgent cases, it may be appropriate for the FSA to exercise these powers without delay.

Financial stability information power

FINMAR 1.2.5G

The FSA may use the financial stability information power to require a person to provide:

  1. (1)

    specified information or documents; or

  2. (2)

    information or documents of a specified description;

that the FSA considers are or may be relevant to the stability of the UK financial system.

[Note: Section 165A of the Act]

Overseas financial stability information power

FINMAR 1.2.6G

The FSA may exercise the overseas financial stability information power at the request of an overseas regulator to require a person to provide:

  1. (1)

    specified information or documents; or

  2. (2)

    information or documents of a specified description;

that the FSA considers are or may be relevant to the stability of a relevant financial system operating in the country or territory of the overseas regulator.

[Note: Section 169A of the Act]

FINMAR 1.2.7G

If the overseas regulator is a competent authority and the request relates to an obligation of the FSA under EU law, the FSA will take into account whether it is necessary to exercise the overseas financial stability information power to comply with that obligation.

FINMAR 1.2.8G

In deciding whether to exercise the overseas financial stability information power, the FSA may take into account in particular:

  1. (1)

    whether corresponding assistance would be given to a UK regulatory authority in the country or territory of the overseas regulator; and

  2. (2)

    whether it is otherwise appropriate in the public interest to give the assistance sought.

FINMAR 1.2.9G

The FSA may decide not to exercise the overseas financial stability information power unless the overseas regulator undertakes to make such contribution towards the cost to the FSA of its exercise as the FSA considers appropriate.

FINMAR 1.2.10G

FINMAR 1.2.8 G and FINMAR 1.2.9 G do not apply if the FSA considers that it must use the overseas financial stability information power to comply with an obligation upon the FSA under EU law.