Financial Services and Markets Act 2000, section 380

Injunctions

Part XXV Injunctions and Restitution

(1)If, on the application of the [F2828appropriate regulatorF2828] or the Secretary of State, the court is satisfied—

(a)that there is a reasonable likelihood that any person will contravene a relevant requirement, or

(b)that any person has contravened a relevant requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,

the court may make an order restraining (or in Scotland an interdict prohibiting) the contravention.

(2)If on the application of the [F2828appropriate regulatorF2828] or the Secretary of State the court is satisfied—

(a)that any person has contravened a relevant requirement, and

(b)that there are steps which could be taken for remedying the contravention,

the court may make an order requiring that person, and any other person who appears to have been knowingly concerned in the contravention, to take such steps as the court may direct to remedy it.

(3)If, on the application of the [F2828appropriate regulatorF2828] or the Secretary of State, the court is satisfied that any person may have—

(a)contravened a relevant requirement, or

(b)been knowingly concerned in the contravention of such a requirement,

it may make an order restraining (or in Scotland an interdict prohibiting) him from disposing of, or otherwise dealing with, any assets of his which it is satisfied he is reasonably likely to dispose of or otherwise deal with.

(4)The jurisdiction conferred by this section is exercisable by the High Court and the Court of Session.

(5)In subsection (2), references to remedying a contravention include references to mitigating its effect.

(6) “Relevant requirement”—

(a)in relation to an application by the [F2829appropriate regulatorF2829] , means a requirement—

(i)F2832[F2830 which is imposed by or under this Act or by a [F2831 qualifying provisionF2831] specified, or of a description specified, for the purposes of this subsection by the Treasury by orderF2830] ...

(ii)which is imposed by or under any other Act and whose contravention constitutes an offence [F2833mentioned in section 402(1)F2833] ; F2834[F2835...

(iii)which is imposed by the Alternative Investment Fund Managers Regulations 2013;F2835]F2836[F2837 ...

(iv)which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;F2837][F2838 orF2838]

[F2839 (v)which is imposed by a provision made in accordance with the transparency obligations directive (within the meaning of section 103(1));F2839][F2840 , or

(vi)which is imposed by the Undertakings for Collective Investment in Transferable Securities Regulations 2011.F2840]

(b)in relation to an application by the Secretary of State, means a requirement which is imposed by or under this Act and whose contravention constitutes an offence which the Secretary of State has power to prosecute under this Act.

(7)In the application of subsection (6) to Scotland—

F2841 (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in paragraph (b) omit “which the Secretary of State has power to prosecute under this Act”.

[F2842 (8) The PRA is the “appropriate regulator” in the case of a contravention of—

(a)a requirement that is imposed by the PRA under any provision of this Act,

(b)a requirement under section 56(6) where the authorised person concerned is a PRA-authorised person and the prohibition order concerned is made by the PRA, or

(c)a requirement under section 59(1) or (2) where the authorised person concerned is a PRA-authorised person and the approval concerned falls to be given by the PRA.

(9) In the case of a contravention of a requirement that is imposed by a [F2843 qualifying provision F2843] , “the appropriate regulator” is whichever of the PRA or the FCA (or both) is specified by the Treasury by order in relation to the [F2843 qualifying provision F2843] for the purposes of this section.

(10) In the case of a contravention of a requirement where the contravention constitutes an offence under this Act, the “appropriate regulator” is whichever of the PRA or the FCA has power to prosecute the offence (see section 401).

(11) The FCA is the “appropriate regulator” in the case of a contravention of any other requirement [F2844 , other than a case falling within paragraph 26 of Schedule 17A F2844] .

(12) The Treasury may by order amend the definition of “appropriate regulator”. F2842]

Read section 380 in the full Act → Definitions (8) Cases (17)

Definitions used in section 380

relevant requirement

(3) For the purposes of that power, “relevant requirement” is to be read in accordance with paragraph 26(2) of this Schedule (subject to sub-paragraph (3A)) .

Defined in Sch.17A para.28(3) · see it in the full Act
qualifying provision

(1) In this Act “qualifying provision” means a provision of any of the following—

(a) assimilated direct legislation;

(b)technical standards made in accordance with Chapter 2A of Part 9A;

(ba)other subordinate legislation made under assimilated direct legislation;

(c)subordinate legislation ... made by virtue of regulations made under section 8 of the European Union (Withdrawal) Act 2018.

Defined in s.425C(1) · see it in the full Act
Specified

(5) “Specified” means specified in an order made by the Treasury.

Defined in s.22(5) · see it in the full Act
the PRA

“the PRA” means the Prudential Regulation Authority;

Defined in s.417(1) · see it in the full Act
authorised person

“authorised person” has the meaning given in section 31(2);

Defined in s.417(1) · see it in the full Act

(2) In this Act “authorised person” means a person who is authorised for the purposes of this Act.

Defined in s.31(2) · see it in the full Act
PRA-authorised person

(5) In this Act “PRA-authorised person” means an authorised person who has permission—

(a)given under Part 4A, or

(b)resulting from any other provision of this Act,

Defined in s.2B(5) · see it in the full Act

“PRA-authorised person” has the meaning given in section 2B(5);

Defined in s.417(1) · see it in the full Act
prohibition order

“prohibition order” (except in the expression “Part 9C prohibition order” or “Part 18C prohibition order” ) has the meaning given in section 56(2);

Defined in s.417(1) · see it in the full Act
the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act

Cases considering section 380 (17)

The Financial Services Authority (a company limited by guarantee) v Sinaloa Gold plc and others and Barclays Bank plc

[2013] UKSC 11 · 27 February 2013Defines

The provision empowers the court, on the Authority's application, to restrain dealings with assets reasonably likely to be disposed of where a person may have contravened, or knowingly participated in contravention of, a relevant requirement. The Authority used this statutory enforcement route, and no cross-undertaking was required on the facts. (see paras [10]; [36]; [41]) A relevant requirement for the freezing power includes a requirement imposed by or under the Act, including the general prohibition in section 19. (see para [10])

The Commissioners For HMRC v Payroll & Pension Services (PPS Umbrella Company) Ltd

[2024] EWCA Civ 995 · 23 August 2024

The provision gave the Financial Services Authority an express power to seek injunctive relief. The court used that special statutory power to distinguish genuine public-law enforcement from HMRC’s ordinary creditor proceedings. (see paras [19]; [29]; [47]-[52])

Financial Services Authority v Martin & Anor

[2005] EWCA Civ 1422 · 25 November 2005Interprets

The court treated this as the injunctive aspect of the later regulatory scheme when construing the related remedial jurisdiction. (see [13]; [56]) Section 380(2) permits an order against a contravener or a person knowingly concerned if there is a relevant contravention and the directed steps are intended and reasonably capable of remedying it. It can overlap with section 382 and can support payments that reimburse loss or mitigate the effect of a contravention. (see [19]-[23]) The court applied the express inclusion of mitigating a contravention's effect. Repayment of the excess paid for shares was therefore a permitted remedial step. (see [13]; [23]) The court identified the definition of a relevant requirement to explain how an earlier statutory requirement could be brought within section 380(2) through the transitional order. (see [13]; [41]-[43])

What each judgment says about section 380 is in the case-law panel in the full Act.

Explanatory note

659.This section sets out the powers of the court to make injunctive orders on the application of the Authority or Secretary of State and the grounds on which they may exercise those powers.  The court may make three types of order: an order restraining the contravention of certain requirements (subsection (1)), an order directing remedial action to be taken when there has been such a contravention (subsection (2)) and an order freezing the assets of someone who has contravened certain requirements or been knowingly involved in a contravention (subsection (3)).

660.The first of these is a preventative measure.  Undersubsection (1)(a) an order can be made restraining a person from contravening a requirement where the court believes they are reasonably likely to do so. Where a contravention has already occurred, under subsection (1)(b) the courts can restrain a person from doing so again.

661.Where there are clear steps that can be taken either by the person who has contravened a requirement or by a person knowingly concerned in the contravention, under subsection (2) the court may order a person to take those steps.  This is a corrective power.  For example, an order may simply require a person to meet commitments they have entered into but so far failed to discharge.  Subsection (5) provides that the remedial action that the court may order under subsection (2) may include orders to mitigate the impact of a contravention even if it is not, strictly speaking, possible to remedy it.  For example where a person has published a misleading advertisement, the Authority could apply to the court for an order requiring the person to publish a correction.  This would not be of use to anyone who had taken action on the basis of  the original advertisement but would prevent others doing so in the future.

662.An order made undersubsection (3) to freeze a person’s assets is similar to a Mareva injunction apart from its timing: a Mareva injunction may only be applied for where court proceedings have been commenced or are imminent whereas this section gives the Authority or Secretary of State an independent power to apply to the court for an asset-freezing order on the grounds that they believe a breach may have occurred.  The power does not prevent separate applications for Mareva injunctions.

663.Subsection (6) sets out the range of requirements the contravention or likely contravention of which may be grounds for an order under this section.  These are requirements imposed by or under the Act, including the Authority’s rules made under Part X, plus the various requirements a breach of which constitutes an offence under the Act, such as the general prohibition under Part II.  In addition, the powers may be exercised for breaches of requirements imposed by other Acts which constitute offences which the Authority has power to prosecute.  The Authority’s power in that respect is set out in section 402.

All the explanatory notes for the Act

Amendments and notes

31 notes from legislation.gov.uk

Amendments

  1. F2828Words in s. 380(1)-(3) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 19(2) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  2. F2829Words in s. 380(6)(a) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 19(3)(a) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  3. F2832Word in s. 380(6)(a) omitted (22.7.2013) by virtue of The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 1 para. 27(a)
  4. F2830S. 380(6)(i) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 19(3)(b) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  5. F2831Words in s. 380(6)(a)(i) substituted (31.12.2020) by The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 70(2); 2020 c. 1, Sch. 5 para. 1(1)
  6. F2833Words in s. 380(6)(ii) substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 19(3)(c) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  7. F2834Word in s. 380(6)(a)(ii) omitted (1.4.2014) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 10 para. 3(2); S.I. 2014/377, art. 2(2)(c)
  8. F2835S. 380(6)(a)(iii) and word inserted (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 1 para. 27(b)
  9. F2836Word in s. 380(6)(a)(iii) omitted (26.11.2015) by virtue of The Transparency Regulations 2015 (S.I. 2015/1755), regs. 1(3), 4(4)(a)
  10. F2837S. 380(6)(a)(iv) and word inserted (1.4.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 10 para. 3(2); S.I. 2014/377, art. 2(2)(c)
  11. F2838Word in s. 380(6)(a)(iv) inserted (26.11.2015) by The Transparency Regulations 2015 (S.I. 2015/1755), regs. 1(3), 4(4)(b)
  12. F2839S. 380(6)(a)(v) inserted (26.11.2015) by The Transparency Regulations 2015 (S.I. 2015/1755), regs. 1(3), 4(4)(c)
  13. F2840S. 380(6)(a)(vi) and word inserted (18.3.2016) by The Undertakings for Collective Investment in Transferable Securities Regulations 2016 (S.I. 2016/225), regs. 1, 2(6)(d)
  14. F2841S. 380(7)(a) omitted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 19(4) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  15. F2842S. 380(8)-(12) inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 19(5) (with Sch. 20); S.I. 2013/113, art. 2(1)(b), Sch. Pt. 2; S.I. 2013/423, art. 3, Sch.
  16. F2843Words in s. 380(9) substituted (31.12.2020) by The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 70(3); 2020 c. 1, Sch. 5 para. 1(1)
  17. F2844Words in s. 380(11) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 19(3), 86(3); S.I. 2023/779, reg. 4(n)

Modifications

  1. C1262S. 380 modified (18.7.2002 for certain purposes and 21.8.2002 otherwise) by The Electronic Commerce Directive (Financial Services and Markets) Regulations 2002 (S.I. 2002/1775), regs. 1, 12(2) (as amended (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 77(7)(a)(ii))
  2. C1263S. 380 applied (with modifications) (1.4.2013) by The Financial Services Act 2012 (Transitional Provisions) (Enforcement) Order 2013 (S.I. 2013/441), arts. 1(1), 15(2)
  3. C1264S. 380 applied (with modifications) (1.4.2013) by The Financial Services Act 2012 (Transitional Provisions) (Enforcement) Order 2013 (S.I. 2013/441), arts. 1(1), 18(3)
  4. C1265S. 380 applied (with modifications) (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services Act 2012 (Consumer Credit) Order 2013 (S.I. 2013/1882), arts. 1(1), 3(8)
  5. C1266S. 380 modified (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), arts. 1(5), 23(1)(b) (with Pt. 4)
  6. C1267S. 380 applied (with modifications) (31.5.2021) by The Civil Liability Act 2018 (Financial Conduct Authority) (Whiplash) Regulations 2021 (S.I. 2021/594), regs. 1, 2(7)(a)
  7. C1268applied (8.6.2023 for specified purposes, 7.10.2023 in so far as not already in force) by The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (S.I. 2023/612), art. 1(2), Sch. para. 1(p) (with art. 11)
  8. C1269S. 380 applied (1.1.2026) by The Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 (S.I. 2025/1145), regs. 1(2), 14(9)
  9. C1270S. 380 applied (with modifications) (1.1.2026) by The Financial Services and Markets Act 2023 (Mutual Recognition Agreement) (Switzerland) Regulations 2025 (S.I. 2025/1145), regs. 1(2), 13(4), 36(3)
  10. C1271S. 380 applied (with modifications) (14.1.2025 for specified purposes, 13.7.2026 in so far as not already in force) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 24, 25, Sch. 1 Pts. 1, 2; S.I. 2026/587, reg. 2(b)
  11. C1272S. 380(1)(2) modified (1.12.2001) by S.I. 2001/2657, arts. 1(1), 20(3) (which was revoked (8.10.2001) by S.I. 2001/3083, arts. 1(2), 23); S.I. 2001/3538, art. 2(1)
  12. C1273S. 380(2) extended (with modifications) (1.12.2001) by S.I. 2001/2657, arts. 1(1), 2 (which was revoked (8.10.2001) by S.I. 2001/3083, arts. 1(2), 23); S.I. 2001/3538, art. 2(1)
  13. C1274S. 380(3)(a) extended (with modifications) (1.12.2001) by S.I. 2001/2657, arts. 1(1), 4 (which was revoked (8.10.2001) by S.I. 2001/3083, arts. 1(2), 23); S.I. 2001/3538, art. 2(1)
  14. C1275S. 380(6)(a)(iii) modified (30.1.2024 for specified purposes, 1.11.2024 in so far as not already in force) by The Securitisation Regulations 2024 (S.I. 2024/102), regs. 2(1)(e)(2), 34(7)(8)(d) (with Sch. 3); as amended by S.I. 2024/705, regs. 1(2), 2(2)