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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.

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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 2.6 Procedures relating to the market maker exemption and the authorised primary dealer exemption

Decision on use of the market maker exemption or the authorised primary dealer exemption

[Note: The FSA has powers under the short selling regulation to prohibit a natural or legal person from using the market maker exemption and the authorised primary dealer exemption if the FSA considers that that person does not satisfy the conditions of the exemption that that person has notified the FSA it intends to use.]
FINMAR 2.6.1GRP

Pursuant to the Financial Services and Markets Act 2000 (Short Selling) Regulations 2012 (SI 2012/2554), the FSA will direct how notifications to use the market maker exemption or the authorised primary dealer exemption shall be made. Such directions will be published on the FSA website and listed in FINMAR 2 Annex 1 G.

FINMAR 2.6.2GRP
  1. (1)

    If the FSA considers that a natural or legal person ('P') who has notified the FSA of his intention to use either the market maker exemption or the authorised primary dealer exemption does not satisfy the criteria to use the market maker exemption or the authorised primary dealer exemption, the FSA will send a letter to P setting out the reasons why it is minded to prohibit P from using the market maker exemption or the authorised primary dealer exemption.

  2. (2)

    P will be given the opportunity to make written representations to the FSA concerning P's use of the market maker exemption or the authorised primary dealer exemption.

  3. (3)

    The FSA will decide whether to prohibit P's use of either the market maker exemption or the authorised primary dealer exemption having regard to P's notification and any written representations made by P. The decision whether or not to prohibit the use by P of either the market maker exemption or the authorised primary dealer exemption will be made by senior staff members of the FSA who were not involved in the initial consideration of P's notification.

Review of a decision to prohibit the market maker exemption or the authorised primary dealer exemption

FINMAR 2.6.3GRP

If P is not satisfied with the FSA's decision to prohibit P's use of the market maker exemption or the authorised primary dealer exemption, P may seek a review of the decision. This will be conducted by a group of at least three senior FSA staff. None of the group conducting the review will have been connected with the earlier decision taken in respect of P's use of the market maker exemption or the authorised primary dealer exemption. The review may take place after the expiry of the 30 day period in which the notification should be made under the short selling regulation, but within 3 months of the decision referred to in FINMAR 2.6.2 G (3).