FINMAR 1.1 Application, purpose and scope
Application
1FINMAR 1 is relevant to authorised persons and unauthorised persons, in particular persons whose activities are or may be relevant to the stability of one or more aspects of a relevant financial system.
Purpose
- (1)
Section 165B(6) (Statement of policy) of the Act requires the FSA to prepare and publish a statement of policy on the financial stability information power. The purpose of FINMAR 1.1 is to set out the FSA's statement of policy on the exercise of the financial stability information power and the overseas financial stability information power contained in sections 165A and 169A of the Act.
- (2)
The Treasury has approved this statement of policy in accordance with section 165B(7) of the Act.
Determining whether to impose a financial stability information requirement involves different considerations from the exercise of other FSA powers. The guidance in this chapter relates only to the imposition of financial stability information requirements.
Scope of the powers
The financial stability information power and the overseas financial stability information power are exercisable in relation to the categories of person set out in section 165A(2) of the Act (interpreted in accordance with the rest of that section).
Table: section 165A(2) of the Act
Section 165A of the Act applies to: |
|
(a) |
a person who has a legal or beneficial interest in any of the assets of a relevant investment fund; |
(b) |
a person who is responsible for the management of a relevant investment fund; |
(c) |
a person (a "service provider") who provides any service to an authorised person; |
(d) |
a person prescribed by an order made by the Treasury or any person of a description prescribed by such an order (and see also section 165C); |
(e) |
a person who is connected with a person to whom this section applies as a result of any of the above paragraphs. |
The FSA may impose a financial stability information requirement on a person within the categories set out in FINMAR 1.1.5 UK only to the extent that it considers that the information or document is or might be relevant to the stability of one or more aspects of the UK financial system. The persons within these categories may include:
- (1)
a vehicle for collective investment, whether or not it is regulated, (including vehicles often referred to as "hedge funds" and "structured investment vehicles" or off-balance sheet vehicles used for investment) and its managers;
- (2)
a provider of a service to an authorised person, such as a software supplier or the provider of a liquidity facility, where the risk to the stability of one or more aspects of the UK financial system relates to the provision of the service;
- (3)
a large scale proprietary trader or investor who trades large volumes of financial instruments that are traded on UK regulated markets or UK MTFs, for example overseas corporate entities; and
- (4)
a person who manages investments for a single family (whether or not the investments are held within a trust), for example a family office.