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Section 55M: Imposition of requirements by PRA

Financial Services and Markets Act 2000 · 2000 c. 8View on legislation.gov.uk

Part 4A: Permission to carry on regulated activities

Where—

a person has applied for a Part 4A permission in relation to activities which consist of or include a PRA-regulated activity,
a PRA-authorised person has applied for a Part 4A permission or the variation of a Part 4A permission, or
an authorised person other than a PRA-authorised person has applied for a Part 4A permission to be varied by adding to the regulated activities to which it relates one or more regulated activities which include a PRA-regulated activity,

the PRA may impose on that person such requirements, taking effect on or after the giving or variation of the permission, as the PRA considers appropriate.

The PRA may exercise its power under subsection (3) in relation to a PRA-authorised person with a Part 4A permission ("P") if it appears to the PRA that—

P is failing, or is likely to fail, to satisfy the threshold conditions for which the PRA is responsible,
P has failed, during a period of at least 12 months, to carry on a regulated activity to which the Part 4A permission relates, or
it is desirable to exercise the power in order to advance any of the PRA's objectives.

The PRA's power under this subsection is a power—

to impose a new requirement,
to vary a requirement imposed by the PRA under this section, or
to cancel such a requirement.

The PRA's power under subsection (3) is referred to in this Part as its own-initiative requirement power.

The PRA may, on the application of a PRA-authorised person with a Part 4A permission—

impose a new requirement,
vary a requirement imposed by the PRA under this section, or
cancel such a requirement.

The PRA may refuse an application under subsection (5) if it appears to it that it is desirable to do so in order to advance any of its objectives.

The PRA may not exercise its powers under this section to impose a requirement relating to the regulated activity specified in article 63S of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (administering a benchmark).

The PRA must consult the FCA before imposing or varying a requirement.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.