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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 FCA 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 FCA considers that that person does not satisfy the conditions of the exemption that that person has notified the FCA 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 FCA 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 FCA website and listed in FINMAR 2 Annex 1 G.

FINMAR 2.6.2GRP
  1. (1)

    If the FCA considers that a natural or legal person ('P') who has notified the FCA 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 FCA 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 FCA concerning P's use of the market maker exemption or the authorised primary dealer exemption.

  3. (3)

    The FCA 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 FCA 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 FCA'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 FCA 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).