Financial Services and Markets Act 2000, section 55B

The threshold conditions

PART 4A Permission to carry on regulated activities

(1) “The threshold conditions”, in relation to a regulated activity, means the conditions set out in or specified under Schedule 6, as read with any threshold condition code made by either regulator under section 137O.

(2)Any reference in this Part to the threshold conditions for which either regulator is responsible is to be read as a reference to the conditions set out in or specified under Schedule 6 that are expressed to be relevant to the discharge by that regulator of its functions, as read with any threshold condition code made by that regulator under section 137O.

(3)In giving or varying permission, imposing or varying a requirement, or giving consent, under any provision of this Part, each regulator must ensure that the person concerned will satisfy, and continue to satisfy, in relation to all of the regulated activities for which the person has or will have permission, the threshold conditions for which that regulator is responsible.

(4)But the duty imposed by subsection (3) does not prevent a regulator, having due regard to that duty, from taking such steps as it considers are necessary, in relation to a particular person, in order to advance—

(a)in the case of the FCA, any of its operational objectives;

(b)in the case of the PRA, any of its objectives.

[F227 (5)The duty imposed by subsection (3) does not apply in relation to the regulated activity specified in article 63S of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (administering a benchmark).F227]

Read section 55B in the full Act → Definitions (6) Cases (4)

Definitions used in section 55B

regulated activity

“regulated activity” has the meaning given in section 22;

Defined in s.417(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
regulator

“regulator” has the meaning given in section 3A(2);

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

(4) Neither section 2AB(3)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZB para.31(4) · see it in the full Act

(2A) The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act ; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.

Defined in Sch.1ZA para.23(2A) · see it in the full Act

(4) Neither section 1A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).

Defined in Sch.1ZA para.23(4) · 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
the PRA

“the PRA” means the Prudential Regulation Authority;

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

Cases considering section 55B (4)

EAK Group Ltd v The Financial Conduct Authority

[2025] UKUT 82 (TCC) · 10 March 2025Interprets

Confirms that the threshold conditions relevant to authorisation are those set out in Schedule 6. The Tribunal applied the relevant conditions concerning effective supervision, resources and suitability (see paras [6]-[9], [57]-[59]). Interprets the authorisation requirement as requiring the FCA to be satisfied that the applicant will satisfy and continue to satisfy the threshold conditions. The refusal was upheld because the FCA’s conclusions that the conditions were not met were reasonably open to it (see paras [6], [57], [96]-[98]).

Ashraf Wealth Management Limited v The Financial Conduct Authority

[2024] UKUT 265 (TCC) · 2 September 2024Defines

The Tribunal identifies section 55B(1) as defining the threshold conditions by reference to Schedule 6. (see para [7]) The Tribunal applies section 55B(3) as requiring the Authority, before granting permission, to ensure that the applicant will satisfy and continue to satisfy the threshold conditions for the relevant regulated activities. (see paras [2],[6],[98])

Przemyslaw Soszynski t/a Phenix Consultancy v The Financial Conduct Authority

[2022] UKUT 247 (TCC) · 13 September 2022

The Tribunal applied the requirement that, when granting Part 4A permission, the Authority must ensure that the applicant will satisfy and continue to satisfy the Threshold Conditions for all proposed regulated activities. The applicant had not met that standard (see paras [19]-[23]; [154]-[186]).

What each judgment says about section 55B is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F227S. 55B(5) inserted (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 40(3)

Modifications

  1. C148S. 55B(3) modified (26.7.2013 for specified purposes, 2.9.2013 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(5), 59(6)
  2. C149S. 55B(3) excluded (15.7.2025 for specified purposes, 15.7.2026 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025 (S.I. 2025/859), arts. 1(2)(3), 11(6)