Financial Services Act 2012
In section 1 of the Bank of England Act 1998 (court of directors), for subsections (2) and (2A) substitute—
In section 13 of that Act (Monetary Policy Committee), in subsection (2), for paragraph (a) substitute—.
Section 2A of the Bank of England Act 1998 (Financial Stability Objective) is amended as follows.
In subsection (1)—
for “contribute to protecting and enhancing” substitute “ protect and enhance ”, and
for “systems” substitute “ system ”.
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Omit subsection (3) (which is superseded by the amendments made by section 4 of this Act).
The Bank of England Act 1998 is amended as follows.
For section 3 substitute—
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In section 16 (functions of court of directors)—
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in subsection (2)—
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for “the Committee” substitute “ the Monetary Policy Committee ”,
omit subsection (3), and
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After Part 1 of the Bank of England Act 1998 insert—
After Schedule 2 to the Bank of England Act 1998 insert as Schedule 2A the Schedule set out in Part 1 of Schedule 1 to this Act.
The further amendments relating to the Financial Policy Committee in Part 2 of Schedule 1 have effect.
Sections 2B and 2C of the Bank of England Act 1998 (which relate to the establishment and procedure of the Financial Stability Committee) are repealed.
Schedule 2 contains further amendments relating to the Bank of England.
For sections 1 to 18 of the Financial Services and Markets Act 2000 (in this Act referred to as “FSMA 2000”) substitute—
For Schedule 1 to FSMA 2000 substitute the Schedules 1ZA and 1ZB set out in Schedule 3 to this Act.
In section 22 of FSMA 2000 (the classes of activity and categories of investment)—
after subsection (1) insert—,
in subsection (3), after “(1)” insert “ or (1A) ”,
after subsection (5) insert—
for the heading substitute “ Regulated activities ”.
Schedule 2 to FSMA 2000 (regulated activities) is amended as follows.
For paragraph 23 (and the italic heading before it) substitute—
After paragraph 23A insert—
After paragraph 24 insert—
Schedule 2 to FSMA 2000 (regulated activities) is amended as follows.
In paragraph 25(1)—
after “22(1)” insert “ or (1A) ”, and
for “the Authority”, in each place, substitute “ either regulator ”.
For paragraph 26 substitute—
After section 22 of FSMA 2000 insert—
Section 39 of FSMA 2000 (appointed representatives) is amended as follows.
After subsection (1B) insert—
For subsection (2) substitute—
In section 31 (authorised persons), in subsection (1)(a), for “Part IV permission” substitute “ Part 4A permission ”.
For sections 40 to 55 of FSMA 2000 substitute—
In Schedule 6 to FSMA 2000 (the threshold conditions), omit paragraph 9.
Schedule 4 contains amendments of the following provisions of FSMA 2000—
Schedule 3 (EEA passport rights),
Schedule 4 (Treaty rights),
sections 34 and 35 (EEA firms and Treaty firms), and
Part 13 (incoming firms: powers of intervention).
Section 56 of FSMA 2000 (performance of regulated activities: prohibition orders) is amended as follows.
For subsection (1) substitute—
In subsection (2), for “The Authority may make an order (“a prohibition order”)” substitute “ A “prohibition order” is an order ”.
In subsection (3), for paragraph (b) substitute—
After subsection (3) insert—
In subsection (6), for “An authorised person” substitute “ A person falling within subsection (3A) ”.
In subsection (7)—
for “The Authority” substitute “ The regulator that has made a prohibition order ”, and
for “a prohibition order” substitute “ the order ”.
After subsection (7) insert—
Omit subsection (8).
Section 57 of FSMA 2000 (prohibition orders: procedure and right to refer to Tribunal) is amended as follows.
In subsections (1) and (3), for “the Authority” substitute “ a regulator ”.
At the end insert—
In section 59 of FSMA 2000 (approval for particular arrangements)—
in subsections (1) and (2), for “the Authority” substitute “ the appropriate regulator ”, and
for subsections (3) to (7) substitute—
After section 59 of FSMA 2000 insert—
In section 63 of FSMA 2000 (withdrawal of approval), for subsection (1) substitute—
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Schedule 5 contains further amendments of Part 5 of FSMA 2000 (performance of regulated activities).
FSMA 2000 is amended as follows.
In each of the provisions of Part 6 (official listing etc) mentioned in subsection (3)—
for “competent authority” or “competent authority's”, in each place, substitute “ FCA ” or “FCA's”, and
for “the authority” or “the Authority”, in each place, substitute “ the FCA ”.
Those provisions are—
sections 73A to 84;
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sections 87B to 87D;
section 87G;
sections 87J to 87O (including the italic heading before section 87J);
sections 87Q to 88;
sections 89A to 97 (including the italic heading before section 89H and the heading to that section);
section 101(2);
section 103(1).
Before section 73A insert an italic heading “Rules”.
In section 77(3) (discontinuance and suspension of listing), for “sections 96 and 99” substitute “ section 96 and paragraph 23(6) of Schedule 1ZA ”.
In section 87A (criteria for approval of prospectus)—
in subsection (1), for “competent authority” substitute “ “FCA”,
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in the heading, for “competent authority” substitute “ FCA ”.
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in subsection (1), for “competent authority”, in the first place, substitute “FCA”,
in subsections (2) to (4), for “competent authority” substitute “FCA”, and
in the heading, for “competent authority” substitute “FCA”.
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in subsection (1)—
for “Where the competent authority” substitute “Where the FCA”, and
in paragraph (b), for “competent authority” substitute “FCA”,
in subsection (2), for “competent authority” substitute “FCA”, and
in the heading, for “competent authority” substitute “FCA”.
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in subsection (1), for “competent authority”, in the second and third places, substitute “FCA”, and
in subsection (3A), for “competent authority” substitute “FCA”.
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in subsection (1)—
for “competent authority”, in the first place, substitute “FCA”,
in paragraph (b), for “competent authority” substitute “FCA”, and
in paragraph (c), omit “other”,
in subsection (1A), for “competent authority”, in the first place, substitute “FCA”, and
in subsections (3) to (5), for “competent authority” substitute “FCA”.
In section 87P (exercise of powers at request of competent authority of another EEA State)—
in subsection (1)(c), for “competent authority”, in the second place, substitute “ FCA ”, and
in subsection (2), for “competent authority” substitute “ FCA ”.
In section 100A (exercise of powers where UK is host member State)—
in subsections (1) and (2), for “competent authority” substitute “ FCA ”,
in subsection (3), for “the authority”, in both places, substitute “ the FCA ”,
in subsection (4), for “The authority” substitute “ The FCA ”, and
in subsections (5) and (6), for “the authority” substitute “ the FCA ”.
In Schedule 10 (compensation: exemptions), for “competent authority”, in each place, substitute “ FCA ”.
Omit the following provisions—
section 72 (Financial Services Authority to exercise functions of the competent authority under Part 6) and the italic heading before it;
section 73 (general duty of the competent authority);
section 99 (fees);
section 100 (penalties);
in section 101 (general provisions), subsections (1) and (3) to (8);
section 102 (exemption from liability in damages);
in section 103 (interpretation), subsections (2) and (3);
in section 195 (exercise of power in support of overseas regulator), subsection (4)(b);
in section 410 (international obligations), subsection (4)(b);
in section 415 (jurisdiction in civil proceedings), subsection (1)(b);
Schedule 7 (modification of Act in its application to the Financial Services Authority when acting as competent authority for purposes of Part 6);
Schedule 8 (power to transfer functions under Part 6 to other persons).
FSMA 2000 is amended as follows.
In section 78A (discontinuance or suspension at the request of the issuer: procedure)—
in subsection (1), for paragraphs (a) and (b) substitute—,
in subsection (2), for “give him written notice” substitute “ notify the issuer (whether in writing or otherwise) ”, and
for subsection (3) substitute—
In section 395(13) (definition of “supervisory notice”), after “a notice” insert “ or notification ”.
FSMA 2000 is amended as follows.
In section 88 (provision that may be made by listing rules in relation to sponsors)—
in subsection (3), at the end insert—,
in subsection (4), in paragraph (a), for “for approval as a sponsor” substitute “ under sponsor rules ”,
after that paragraph (but before the “or” at the end) insert—,
in subsection (5), in paragraph (a), for “for approval” substitute “ under sponsor rules ”,
after that paragraph (but before the “or” at the end) insert—,
in subsection (6), in paragraph (a), for “for approval” substitute “ under sponsor rules ”,
after that paragraph (a) (but before the “or” at the end) insert—, and
after subsection (7) insert—
The power to make provision under section 88(3)(e) of FSMA 2000 (as inserted by subsection (2)(a) above) includes power to make provision in relation to persons who were approved as sponsors before the coming into force of subsection (2)(a) above.
For section 89 substitute—
In section 392 (warning and decisions notices: application of provisions relating to third party rights and access to evidence)—
for “section 89(2),” substitute “ section 88B(1), ”, and
for “section 89(3),” substitute “ section 88B(5), ”.
In section 395(13) (meaning of “supervisory notice”), after paragraph (bza) insert—.
In Part 6 of FSMA 2000 (official listing), after section 89O insert—
In section 395(13) (meaning of “supervisory notice”), after paragraph (bzb) (as inserted by section 18(6)) insert—.
In section 91(6) of FSMA 2000 (penalties for breach of Part 6 rules: limitation period), for “two years” substitute “ 3 years ”.
Section 95 of FSMA 2000 (competition scrutiny) is repealed.
In section 104 of FSMA 2000 (control of business transfers) omit “or banking business transfer scheme”.
Schedule 6 contains further amendments of Part 7 of FSMA 2000 (control of business transfers).
Part 9 of FSMA 2000 (hearings and appeals) is amended as follows.
In section 133 (proceedings before Tribunal: general provision)—
in subsection (1)(a), for “the Authority” substitute “ the FCA or the PRA ”,
for subsections (5) and (6) substitute—, and
after subsection (7) insert—
In section 133A (proceedings before Tribunal: decision and supervisory notices, etc)—
in subsection (1)—
after “determining” insert “ in accordance with section 133(5) ”, and
for the words from “given by the Authority” to “the Authority would” substitute “ given by a body, the Tribunal may not direct the body to take action which it would ”,
omit subsections (2) and (3),
in subsection (4), for the words from the beginning to “a decision notice—” substitute “ The action specified in a decision notice must not be taken— ”, and
in subsection (5)—
for “the Authority” substitute “ the FCA or the PRA ”, and
for “the Authority's” substitute “ its ”.
In section 133B (offences), in subsection (1)(a), for “the Authority” substitute “ the FCA or the PRA ”.
In section 136 (funding of the legal assistance scheme), in subsections (1), (2), (6)(a), (7) (in both places) and (8), for “Authority” substitute “ FCA ”.
For sections 138 to 164 of FSMA 2000 substitute—
In section 391 of FSMA 2000 (publication), after subsection (5) insert—
In section 395 of FSMA 2000 (procedures in relation to giving of supervisory notices etc), in subsection (13), after paragraph (bb) insert—.
Omit Schedule 14 to FSMA 2000 (role of the Competition Commission).
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In every provision of Part 8A of FSMA 2000 (short selling) for “Authority” or “Authority's” in each place substitute “FCA” or “FCA's”.
Subsection (1) does not affect references to “the competent authority”.
FSMA 2000 is amended as follows.
In every provision of Part 12 (control over authorised persons), for “Authority” or “Authority's”, in each place (where not expressly amended by the following provisions), substitute “ appropriate regulator ” or “appropriate regulator's”.
In section 178 (obligation to notify an acquisition of control), after subsection (2) insert—
In section 179 (requirements for section 178 notices) in subsection (2), for “The Authority” substitute “ Each regulator ”.
In section 187 (approval with conditions), for subsection (2) substitute—
After section 187 insert—
In section 191A (objection to control), after subsection (4) insert—
In section 191B (restriction notices), after subsection (2) insert—
In section 191C (orders for the sale of shares), after subsection (2) insert—
In section 191D (obligation to notify of disposition of control), after subsection (1) insert—
In section 191E (requirements for notices under section 191D), in subsection (2), for “The Authority” substitute “ Each regulator ”.
“the appropriate regulator” is to be read in accordance with section 178(2A);
After section 192 of FSMA 2000 insert—
Section 285 of FSMA 2000 (exemption from general prohibition for recognised investment exchanges and recognised clearing houses) is amended as follows.
In subsection (2), for paragraph (b) substitute—
In subsection (3) for the words from “activity which” to the end substituteactivity—
After that subsection insert—
After section 285 of FSMA 2000 insert—
After Schedule 17 of FSMA 2000 insert the Schedule 17A set out in Schedule 7 to this Act.
In section 286 of FSMA 2000 (qualification for recognition), after subsection (4E) insert—
After section 296 of FSMA 2000 insert—
Section 298 of FSMA 2000 (directions under section 296 and revocation orders under section 297(2) or (2A): procedure) is amended as follows.
In subsection (1), omit paragraphs (b) and (c) (requirements to bring notice to attention of members of the body and other persons).
In subsection (3), omit paragraphs (b) and (c) (members of the body and other persons may make representations).
For subsection (4) substitute—
In subsection (6), omit paragraph (b) (notice of decision to members of the body and others) and the “and” before it.
In subsection (7), for “considers it essential” substitute “ reasonably considers it necessary ”.
After section 312D of FSMA 2000 insert—
In Part 18 of FSMA 2000 (recognised investment exchanges and clearing houses)—
omit Chapter 2 (competition scrutiny), and
omit Chapter 3 (exclusion from the Competition Act 1998).
Schedule 8 contains—
minor amendments of FSMA 2000 in connection with provision made by sections 28 to 34, and
other amendments of that Act in consequence of that provision.
In every provision of Part 18A of FSMA 2000 (suspension and removal of financial instruments from trading)—
for “Authority”, in each place, substitute “ FCA ”, and
for “Authority's”, in each place, substitute “FCA's”.
Schedule 9 contains miscellaneous amendments of FSMA 2000 relating to discipline and enforcement.
If the Treasury consider that it is in the public interest to do so, the Treasury may by order—
amend section 391 of FSMA 2000 by substituting for subsections (1) to (1ZB) the following—, and
repeal section 395(1)(d) and (2)(b) and (c) of that Act.
Schedule 10 contains amendments of Part 15 of FSMA 2000 (the Financial Services Compensation Scheme).
In section 224F(1) of that Act (power to require FSCS manager to act in relation to other schemes: rules about the schemes), for “Authority” substitute “ regulators ”.
Schedule 11 contains amendments of FSMA 2000 relating to the financial ombudsman service.
Part 19 of FSMA 2000 (Lloyd's) is amended as follows.
In section 314 (Authority's general duty)—
for subsection (1) substitute—,
in subsection (2)—
for “The Authority” substitute “ Each regulator ”, and
in paragraph (b), for “section 315” substitute “ provision made by or under this Act ”, and
in the heading, for “Authority's” substitute “Regulators'”.
After that section insert—
For section 315 substitute—
In section 316 (direction by Authority)—
in subsection (1), for “the Authority” substitute “ a regulator ”,
after that subsection insert—,
in subsection (4)—
for “the Authority”, in both places, substitute “ the regulator concerned ”, and
in paragraph (c), for “section 315” substitute “ provision made by or under this Act ”,
in subsection (9)—
after “subsection (1)” insert “ given by a regulator ”, and
for “the Authority” substitute “ the regulator ”,
in subsection (10), for “The Authority” substitute “ A regulator who gives a direction under subsection (1) ”,
in subsection (11)—
for “The Authority” substitute “ A regulator who gives a direction under subsection (1) ”, and
for “any direction which it gives under this section” substitute “ the direction ”, and
in the heading, for “Authority” substitute “ a regulator ”.
In section 317 (the core provisions), in subsection (1), for “X” substitute “ 9A ”.
In section 318 (exercise of powers through Council)—
in subsection (1), for “The Authority” substitute “ A regulator ”,
after subsection (3) insert—,
in subsection (4)(b), for “the Authority” substitute “ the regulator concerned ”,
in subsection (6)(a), for “the Authority” substitute “ a regulator ”,
in subsection (7)—
after “subsection (1)” insert “ given by a regulator ”, and
for “the Authority” substitute “ the regulator ”,
in subsection (8), for “The Authority” substitute “ A regulator who gives a direction under subsection (1) ”, and
in subsection (9)—
for “The Authority” substitute “ A regulator who gives a direction under subsection (1) ”, and
for “any direction which it gives under this section” substitute “ the direction ”.
In section 319 (consultation)—
for subsection (1) substitute—,
in subsection (2)(b), for “the Authority” substitute “ the regulator ”,
for subsection (3) substitute—,
in subsections (4) and (5) (in both places), for “the Authority” substitute “ the regulator ”,
for subsection (6) substitute—,
in subsection (7), for “the Authority” substitute “ the regulator concerned ”,
in subsection (8)—
for “The Authority” substitute “ A regulator who publishes a draft under subsection (1) ”, and
for “a draft published under subsection (1)” substitute “ the draft ”,
in subsection (9), for “the Authority” substitute “ a regulator ”, and
for subsection (10) substitute—
In section 320 (former underwriting members)—
in subsection (2), for “Part IV permission” substitute “ Part 4A permission ”,
in subsection (3), for “The Authority” substitute “ The PRA ”, and
at the end insert—
In section 321 (requirements imposed under section 320)—
in subsection (2), for “the Authority” substitute “ the PRA ”,
in subsection (3)(b), for “the Authority's” substitute “the PRA's”,
in subsections (3)(c), (4) to (9) and (11), for “Authority” substitute “ PRA ”, and
after subsection (12) insert—
In section 322 (rules applicable to former underwriting members)—
in subsection (1), for “The Authority” substitute “ The PRA ”,
in subsection (4), for “Part X (except sections 152 to 154)” substitute “ Part 9A (except sections 137T, 138F, 138G and 138H) ”, and
at the end insert—
Schedule 12 contains miscellaneous amendments of FSMA 2000, including amendments relating to information gathering, investigations and disclosure.
Schedule 13 contains miscellaneous amendments of Part 22 of FSMA 2000 (auditors and actuaries).
After section 234B of FSMA 2000 insert—
Schedule 14 contains amendments of Part 24 of FSMA 2000 (insolvency).
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Schedule 16 contains miscellaneous amendments of FSMA 2000 relating to financial services provided by members of the professions.
In section 410 of FSMA 2000 (international obligations), in subsection (4), for paragraph (a) substitute—.
In section 417 of FSMA 2000 (definitions), in subsection (1)—
omit the definition of “the Authority”,
in the definition of “control of information rules” for “section 147(1)” substitute “ section 137P ”,
after that definition insert—,
“the FCA” means the Financial Conduct Authority;
in the definition of “financial promotion rules” for “section 145” substitute “ section 137R ”,
“general rules”—
omit the definition of “money laundering rules”,
omit the definition of “notice of control”,
“Part 4A permission” has the meaning given in section 55A(5);
“the PRA” means the Prudential Regulation Authority; “PRA-authorised person” has the meaning given in section 2B(5); “PRA-regulated activity” has the meaning given in section 22A;
in the definition of “price stabilising rules” for “section 144” substitute “ section 137Q ”,
after that definition insert—,
in the definition of “regulating provisions” for “section “159(1)” substitute “ section 140A ”,
after that definition insert—,
omit the definitions of “regulatory objectives” and “regulatory provisions”,
“rule” means a rule made by the FCA or the PRA under this Act;
in the definition of “rule-making instrument” for “section 153” substitute “ section 138G ”,
“threshold conditions”, in relation to a regulated activity, has the meaning given in section 55B(1);
in the definition of “UK authorised person” for “section 178(4)” substitute “ section 191G(1) ”, and
in the definition of “the UK financial system” for “section 3” substitute “ section 1I ”.
After section 421 of FSMA 2000 insert—
After section 425B of FSMA 2000 insert—
Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is amended as follows.
In subsection (1) (orders subject to the affirmative resolution procedure)—
in paragraph (a)—
after “section” insert “ 1J, 3B(4), 3F(6), 55C, ”,
after “or (e),” insert “ 138K(6)(c), 192B(6), 204A(7), 213(1A), ”, and
after “236(5),” insert “ 285(4), 380(12), 382(15), 384(13), ”, and
omit paragraph (b).
In subsection (8)—
after “under section” insert “ 3G(1), 137D(1)(b), ”,
after “165A(2)(d)” insert “ , 192A(4) ”, and
after “which” insert “ section 22B or 23A or ”.
The Treasury may by order amend the legislation relating to mutual societies for any of the relevant purposes.
“The legislation relating to mutual societies” means—
the Industrial and Provident Societies Act 1965;
the Industrial and Provident Societies Act 1967;
the Friendly and Industrial and Provident Societies Act 1968;
the Industrial and Provident Societies Act (Northern Ireland) 1969;
the Friendly Societies Act 1974;
the Credit Unions Act 1979;
the Credit Unions (Northern Ireland) Order 1985;
the Building Societies Act 1986;
the Friendly Societies Act 1992.
The relevant purposes are—
providing for any function of the FSA to be exercisable by that body corporate as the FCA;
providing for any function of the FSA to be transferred to the PRA;
providing for any function of the FSA to be exercisable by that body corporate as the FCA and also to be exercisable concurrently by the PRA;
providing for any function which is exercisable by the FCA or the PRA (whether by virtue of a previous order under this section or otherwise) to be transferred to, or to be exercisable concurrently by, the other regulator;
providing for any function which is exercisable by the FCA and the PRA (whether by virtue of a previous order under this section or otherwise) to be exercisable only by one of them;
making provision that appears to the Treasury to be necessary or expedient in consequence of the provisions of this Act.
In relation to the Industrial and Provident Societies Act (Northern Ireland) 1969 and the Credit Unions (Northern Ireland) Order 1985, the relevant purposes also include—
providing for any function of a Northern Ireland department or the Registrar of Credit Unions for Northern Ireland to be transferred to the FCA or the PRA, or to both the FCA and PRA to be exercised concurrently;
providing for any function of a Northern Ireland department or the Registrar of Credit Unions for Northern Ireland which relates to the determination of disputes to be exercisable instead by a court.
In this section a “transfer order” means an order under section 50 making provision for any of the purposes mentioned in subsection (3)(a) to (e) or (4) of that section.
The additional powers conferred by section 115(2) on a person making an order under this Act include power for the Treasury, when making a transfer order, to include—
such consequential provision as the Treasury consider appropriate;
provision for the transfer of any property, rights or liabilities held, enjoyed or incurred by any person in connection with transferred functions;
provision for the application of the Transfer of Undertakings (Protection of Employment) Regulations 2006 in connection with any transfer of staff;
provision for the carrying on and completion by or under the authority of the person to whom the functions are transferred of any proceedings, investigations or other matters commenced, before the order takes effect, by or under the authority of the person from whom the functions are transferred;
provision amending any enactment relating to transferred functions in connection with their exercise by, or under the authority of, the person to whom they are transferred;
provision requiring either regulator to consult the other, notify the other or obtain the consent of the other in connection with the exercise of transferred functions;
provision for the substitution of the person to whom functions are transferred for the person from whom they are transferred, in any instrument, contract or legal proceedings made or begun before the order takes effect.
For the purposes of subsection (2) a transfer order is to be taken to transfer functions to any person by whom any function becomes exercisable by virtue of the order.
On or after the making of a transfer order (“the original order”) the Treasury may by order make any incidental, supplemental, consequential or transitional provision or provision by virtue of subsection (2) which they had power to include in the original order.
The provisions of this section do not limit—
the powers conferred by section 118 or 119(3), or
the powers exercisable under Schedule 21 in connection with a transfer order that transfers functions to the PRA or to the FCA and the PRA.
The Treasury may by order provide—
for any relevant provision that would not otherwise apply in relation to transferred functions to apply in relation to those functions with such modifications as may be specified;
for any relevant provision that would otherwise apply in relation to transferred functions not to apply in relation to them or to apply with such modifications as may be specified.
“Relevant provision” means a provision of, or made under, FSMA 2000.
“Transferred function” means a function that has been or is being transferred by an order under section 50; and section 51(3) applies for the purpose of this subsection.
A certificate issued by the Treasury that property vested in a person immediately before a transfer order takes effect has been transferred as a result of the order is conclusive evidence of the transfer.
“Transfer order” means—
an order under section 50,
an order under section 51(4), or
an order under Part 21 of FSMA 2000 (mutual societies).
The following provisions of Part 21 of FSMA 2000 are repealed—
in section 334 (the Friendly Societies Commission), subsections (1) and (2);
section 335 (the Registry of Friendly Societies);
section 336 (the Building Societies Commission);
section 337 (the Building Societies Investor Protection Board);
section 338 (industrial and provident societies and credit unions);
section 339 (supplemental provisions).
The repeals in subsection (1) do not have the effect of revoking any order made under any provision of Part 21 of FSMA 2000 before the commencement of this section.
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Section 9B of the Building Societies Act 1986 (restriction on creation of floating charges) is amended as follows.
In subsection (1), at the end insert “unless it complies with the requirements in subsection (1A)”.
After that subsection insert—
After subsection (2) insert—
Section 42B of the Building Societies Act 1986 (power to direct transfers of engagements or business) is amended as follows.
In subsection (1)—
before the “or” at the end of paragraph (a) insert—, and
in paragraph (b), for “to an existing company under section 97” substitute “ under section 97 to an existing company that is not a subsidiary of another mutual society ”.
After subsection (1) insert—
In subsection (4)—
in paragraph (a), for “(1)(b)” substitute “ (1)(aa) or (b) ”, and
in paragraph (b), after “existing company” insert “ , or to a specially formed company that is a subsidiary of another mutual society, ”.
In Schedule 8A to that Act (directions under section 42B(4)), in paragraph 9(3), for “section 42B(1)(b)” substitute “ section 42B(1)(aa) or (b) ”.
In this Part “regulator” means the FCA or the PRA.
In this Part a reference to a person's functions under an enactment includes a reference to the person's functions under any other enactment as applied by that enactment.
Where it appears to the Bank of England that there is a material risk of circumstances within any of the following cases arising, the Bank must immediately notify the Treasury.
A notification under subsection (1) or section 59(2) is referred to in this Part as a “public funds notification”.
The first case is where the Treasury or the Secretary of State might reasonably be expected to regard it as appropriate to provide financial assistance to or in respect of a financial institution.
The second case is where—
the Treasury, the Bank of England, the PRA, the FCA or the Secretary of State might reasonably be expected to regard it as appropriate to exercise any of their respective powers under Parts 1 to 3 of the Banking Act 2009 or under Schedule 11 to the Financial Services and Markets Act 2023, and
the Treasury might reasonably be expected to regard it as appropriate to incur expenditure in connection with the exercise of any of those powers (whether by the Treasury, the Bank, the PRA, the FCA or the Secretary of State).
The third case is where the scheme manager of the Financial Services Compensation Scheme or any scheme established under paragraph 87 of Schedule 11 to the Financial Services and Markets Act 2023 might reasonably be expected to request— for the purpose of funding expenses incurred or expected to be incurred under the Financial Services Compensation Scheme or any scheme established under paragraph 87 of Schedule 11 to the Financial Services and Markets Act 2023.
a loan from the National Loans Fund under section 223B of FSMA 2000, or
financial assistance from the Treasury,
A public funds notification must give a general indication of the matters giving rise to the notification.
A public funds notification must be given or confirmed in writing.
The Treasury may by notice in writing require the Bank of England to provide it with information specified, or of a description specified, in the notice.
The information must be information which the Treasury consider is material to the Bank's assessment of the implications for public funds of a bank, building society, credit union , recognised central counterparty or investment firm failing.
The information must be provided before the end of such reasonable period as may be specified in the notice.
The Bank's duty to provide information under this section does not apply to information which the Bank does not have in its possession.
For the purposes of this section, the cases in which a bank, building society, credit union , recognised central counterparty or investment firm (“the institution”) is to be regarded as failing include those where—
the institution enters insolvency,
any of the stabilisation options in Part 1 of the Banking Act 2009 or in Schedule 11 to the Financial Services and Markets Act 2023 is achieved in relation to the institution, or
the institution falls to be taken for the purposes of the Financial Services Compensation Scheme (within the meaning given by section 213 of FSMA 2000) to be unable, or likely to be unable, to satisfy claims against the institution.
In subsection (5)(a) “insolvency” includes—
bankruptcy;
liquidation;
bank insolvency;
building society insolvency;
investment bank insolvency;
administration;
bank administration;
building society special administration;
receivership;
a composition between the institution and the institution's creditors;
a scheme of arrangement of the institution's affairs.
For the purposes of this section— and an event has implications for public funds if it would or might involve or lead to a need for the application of public funds.
“listed securities” means anything which has been admitted to the official list under Part 6 of FSMA 2000;
“collective investment scheme” has the same meaning as in FSMA 2000;
This section applies where a public funds notification has been given.
If the Bank of England is of the opinion that the risk to which the notification relates continues but that there is a substantial change in the matters which gave rise to the notification, the Bank must notify the Treasury.
If the Bank of England is of the opinion that the risk to which the notification relates has ceased, it must notify the Treasury.
Before giving a notification under subsection (3), the Bank must consult the Treasury.
A notification under subsection (3) must be given or confirmed in writing.
This section applies in relation to—
a resolution plan which includes one or more options for the exercise of a stabilisation power by the Bank of England in relation to an institution (“the institution”), and
a group resolution plan which includes one or more options for the exercise of a stabilisation power by the Bank of England in relation to a group entity (“the entity”).
Unless otherwise directed under subsection (5), before adopting the plan the Bank must provide the Treasury with—
a copy of the plan,
the Bank's assessment of the risk that the failing of the institution or entity would pose to the stability of the financial system in the United Kingdom,
the Bank's assessment of the implications for public funds—
of the exercise by the Bank of a stabilisation power in relation to the institution or the entity in accordance with the option (or each of the options) for the exercise of such a power included in the plan, and
if the plan includes one or more options for the use of an insolvency or administration procedure in relation to the institution or the entity, of the use of such a procedure in accordance with that option (or each of those options), and
any analysis considered by the Bank (whether or not prepared by the Bank) to be material in making the assessments mentioned in paragraph (c).
Unless otherwise directed under subsection (5), the Bank must provide the Treasury with details of—
any material changes to the plan, before those changes are adopted,
any material changes to the Bank's assessments of the matters mentioned in subsection (2)(b) or (c), and
any further analysis considered by the Bank (whether or not prepared by the Bank) to be material to revising the assessments mentioned in subsection (2)(c).
Where reasonably practicable the Bank must comply with subsections (2) and (3) before the Bank exercises any of its powers under section 3A of the Banking Act 2009 in relation to the institution or the entity.
The Treasury may by notice in writing—
direct the Bank not to provide it under this section with information in relation to institutions or entities specified, or of a description specified, in the notice;
revoke a direction given under paragraph (a).
Where a direction given under subsection (5)(a) is revoked— but this is subject to any further direction under subsection (5)(a).
the Bank must provide the Treasury with the matters listed in subsection (2)(a) to (d) in relation to the institutions or entities to which the direction related as soon as reasonably practicable after the date of the revocation, and
subsection (3) applies in relation to those institutions or entities,
For the purposes of this section— and action has implications for public funds if it would or might involve or lead to a need for the application of public funds.
This section makes provision about the circumstances in which the Treasury's power of direction under section 61 is exercisable, subject to the provisions of that section.
Where a public funds notification has been given, the power of direction is exercisable by reference to the notification unless the notification has been superseded by a notification under section 59(3).
Where qualifying financial assistance has been provided, the power of direction is exercisable by reference to the provision of the assistance unless it appears to the Treasury that the assistance has been recovered.
It is immaterial for the purposes of subsection (3)—
whether the qualifying financial assistance was provided before or after the commencement of this section, and
whether or not a public funds notification had been given in connection with it.
For the purposes of this Part qualifying financial assistance is provided if, and only if—
the Treasury or the Secretary of State provide financial assistance to or in respect of a financial institution,
the Treasury incur expenditure in connection with the exercise by the Treasury, the Bank, the PRA, the FCA or the Secretary of State of any of their powers under Parts 1 to 3 of the Banking Act 2009 or under Schedule 11 to the Financial Services and Markets Act 2023,
the Treasury arrange a loan from the National Loans Fund in pursuance of a request by the scheme manager of the Financial Services Compensation Scheme under section 223B of FSMA 2000, or
the Treasury provide financial assistance to the scheme manager of that scheme for the purpose of funding expenses incurred or expected to be incurred under it.
For the purposes of this section the circumstances in which qualifying financial assistance is to be taken to have been recovered include the following—
where, in the case of a loan, the principal of the loan has been repaid and all interest due under the terms of the loan has been paid,
where, in the case of a guarantee or indemnity, the Treasury or the Secretary of State will not become liable under the guarantee or indemnity,
where, in a case involving the issue or transfer of shares to the Treasury in connection with the provision of qualifying financial assistance, the shares are no longer held by the Treasury.
Subsection (2) applies where—
the power of direction is exercisable by virtue of section 60(2) by reference to a public funds notification and the Treasury are satisfied that Condition A is met, or
the power of direction is exercisable by virtue of section 60(3) by reference to the provision of qualifying financial assistance and the Treasury are satisfied that Condition A or Condition B is met.
The Treasury may give a direction to the Bank of England relating to one or more of the following—
the provision by the Bank to one or more financial institutions of financial assistance other than ordinary market assistance offered by the Bank on its usual terms,
the exercise by the Bank of any of the stabilisation powers, as defined by section 1(4) of the Banking Act 2009 or paragraph 1(4) of Schedule 11 to the Financial Services and Markets Act 2023 or the making by the Bank of a mandatory reduction instrument within the meaning of section 6B of the Banking Act 2009, or
the exercise by the Bank of its powers under Part 3 of that Act (bank administration).
Condition A is that the giving of the direction is necessary to resolve or reduce a serious threat to the stability of the financial system of the United Kingdom which is connected—
in case within subsection (1)(a), with the matters to which the public funds notification relates;
in a case within subsection (1)(b), with the matters that gave rise to the provision of the qualifying financial assistance.
Condition B is that—
the qualifying financial assistance was provided for the purpose of resolving or reducing a serious threat to the stability of the financial system of the United Kingdom, and
the giving of the direction is necessary to protect the public interest in connection with the provision of that assistance.
References to the provision of qualifying financial assistance are to be read in accordance with section 60(5).
This section is subject to section 62.
Nothing in this section limits the powers conferred by section 4(1) of the Bank of England Act 1946 (Treasury directions to the Bank).
References in this section to a direction are to a direction under section 61.
Before giving a direction, the Treasury must consult the Bank of England.
On being given a direction, the Bank must give the Treasury one or more reports on how it is complying or intends to comply with the direction, and on such other matters relating to the direction as it considers appropriate.
The Treasury may at any time by notice to the Bank revoke a direction.
The revocation of a direction does not affect the validity of anything previously done in accordance with it.
Where the Treasury's power of direction is exercised by virtue of section 60(2) by reference to a public funds notification, the direction remains in force (unless revoked under subsection (4)) even if the public funds notification is subsequently superseded by a notification under section 59(3).
Where the Treasury's power of direction is exercised by virtue of section 60(3) by reference to the provision of qualifying financial assistance, the direction remains in force (unless revoked under subsection (4)) even if it appears to the Treasury that the qualifying financial assistance has subsequently been recovered.
Each of the following must be in writing—
a direction,
a report under subsection (3), and
a notice revoking a direction.
As soon as practicable after giving or revoking a direction under section 61 or receiving a report under section 62(3), the Treasury must lay before Parliament a copy of the direction, notice of revocation or report.
But subsection (1) does not apply in a case where the Treasury consider that the publication of the direction, notice of revocation or report would be against the public interest.
Where the Treasury decide that publication of a direction, notice of revocation or report would be against the public interest, they must from time to time review that decision and if they subsequently decide that publication is no longer against the public interest they must comply with subsection (1).
The Treasury (on the one hand) and the Bank of England and the PRA (on the other) must arrange to co-ordinate the discharge of their respective functions so far as they—
relate to the stability of the UK financial system, and
affect the public interest.
In complying with subsection (1), the Treasury, the Bank and the PRA must have regard in particular to the importance of co-ordination in circumstances where the Bank has given, or is considering the giving of, a public funds notification.
The Treasury (on the one hand) and the Bank of England and the PRA (on the other) must prepare and maintain a memorandum describing in general terms how they intend to comply with section 64 in relation to
the sharing of information by the Bank about any proposals to include in a resolution plan or a group resolution plan an option for the exercise of a stabilisation power by the Bank in relation to an institution or group entity;
the circumstances mentioned in subsection (2) of that section.
For the purposes of subsection (1)(b), The memorandum must, in particular, make provision about—
what the Treasury and the Bank regard as a material risk for the purposes of section 58(1);
steps to be taken when the Bank has given a public funds notification;
the respective roles of the Treasury, the Bank and the PRA, in cases where the Bank has given a public funds notification, in relation to the consideration and assessment of, and taking of, steps to resolve or reduce, threats to the stability of the UK financial system;
how the Treasury, the Bank and the PRA will co-operate in fulfilling those roles;
the use by the Treasury of their power under section 61;
matters connected with the Bank's compliance with a direction under that section;
the obtaining and sharing of information.
The memorandum may make provision about such other matters as may be agreed between the Treasury, the Bank and the PRA, which must be matters that—
relate to the stability of the UK financial system or the regulation of financial services, and
affect the public interest.
The memorandum need not make provision about the relationship between the Bank and the PRA.
The Treasury, the Bank of England and the PRA may, with the agreement of a body falling within subsection (6), include in the memorandum provisions relating to co-operation between any of them and that body in relation to matters falling within subsection (3)(a) and (b).
The bodies falling within this subsection are—
the FCA;
the scheme manager of the Financial Services Compensation Scheme;
any other body exercising functions that relate to the stability of the UK financial system or the regulation of financial services.
The Treasury must—
lay before Parliament a copy of the memorandum and any revised memorandum, and
publish the memorandum as currently in force in such manner as they think fit.
The Treasury, the Bank of England, the FCA and the PRA (“the UK authorities”) must prepare and maintain a memorandum describing how they intend to co-ordinate the exercise of their relevant functions so far as they relate to membership of, or relations with, ... international organisations.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“Relevant function”—
in relation to the FCA or the PRA, means any of its functions;
in relation to the Bank of England, means any of its functions relating to the stability of the UK financial system or the regulation of financial services;
in relation to the Treasury, means any of their functions relating to the matters mentioned in paragraph (b).
The memorandum is to be made with a view to ensuring—
that, to the extent that it is appropriate to do so, the UK authorities agree consistent objectives in relation to matters of common interest;
that, to the extent that it is appropriate to do so, they exercise their relevant functions in a way that is likely to advance those objectives;
that they exercise their relevant functions in a way that is consistent and effective.
The memorandum must, in particular, make provision—
stating, in relation to each of the UK authorities, those international organisations of which it is a member or with which it has relations and which are concerned with matters that are related to its relevant functions;
for there to be a committee for the purposes of the co-ordination mentioned in subsection (1);
for that committee to include representatives of the UK authorities and to be chaired by a representative of the Treasury;
about the procedures to be followed by the UK authorities in agreeing consistent objectives in relation to matters that materially affect 2 or more of them;
about how the UK authorities will consult each other about the discharge of their relevant functions relating to international organisations.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The UK authorities may, with the agreement of a body exercising functions relating to the stability of the UK financial system or the regulation of financial services, include in the memorandum provisions relating to co-operation between any of them and that body in relation to membership of, or relations with, ... international organisations.
The Treasury must—
lay before Parliament a copy of the memorandum and any revised memorandum, and
publish the memorandum as currently in force in such manner as they think fit.
This section has effect for the interpretation of this Part.
“Public funds notification” is to be read in accordance with section 58(2).
“Financial assistance” includes giving guarantees or indemnities and any other kind of financial assistance (actual or contingent).
The Treasury may by order provide that a specified activity or transaction, or class of activity or transaction, is to be or not to be treated as financial assistance for the purposes of this Part; and subsection (3) is subject to this subsection.
“Qualifying financial assistance” is to be read in accordance with section 60(5).
Group entity” has the same meaning as in the Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348).
“Group resolution plan” means a group resolution plan drawn up by the Bank under Part 5 of that Order.
“Resolution plan” means a resolution plan drawn up by the Bank under Part 5 of that Order.
“Stabilisation power” has the same meaning as in section 1(4) of the Banking Act 2009.
This section applies in three cases.
The first case is where it appears to the Treasury that—
events have occurred in relation to— which posed or could have posed a serious threat to the stability of the UK financial system or caused or risked causing significant damage to the interests of consumers, and
a collective investment scheme,
a person who is, or was at the time of the events, carrying on a regulated activity (whether or not as an authorised person), or
listed securities or an issuer of listed securities,
those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—
the system established by FSMA 2000, or by any previous statutory provision, for the regulation of such schemes, or of such persons and their activities, or the listing of securities, or
the operation of that system.
The second case is where it appears to the Treasury that—
events have occurred in relation to a recognised clearing house or , a recognised payment system or a recognised CSD which—
posed or could have posed a serious threat to the stability of or confidence in the UK financial system, or
caused or risked causing significant damage to business or other interests throughout the United Kingdom, and
those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—
the system established by Part 18 of FSMA 2000, or by any previous statutory provision, for the regulation of clearing houses or central securities depositories ,
the system established by Part 5 of the Banking Act 2009 for the regulation of ... payment systems, or
the operation of either of those systems.
If the Treasury consider that it is in the public interest that there should be an independent inquiry into the events and the circumstances surrounding them, they may arrange for an inquiry to be held under section 69.
The third case is where it appears to the Treasury that—
events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and
those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—
the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or
the operation of that system.
In this section—
“public funds” means the Consolidated Fund and any other account or source of money which cannot be drawn or spent other than by, or with the authority of, the Treasury,
In section 9 of the Agricultural Credits (Scotland) Act 1929 (interpretation), in subsection (2), in the definition of “Bank”, for “Part 4” substitute “ Part 4A ”.
In section 622 of the Housing Act 1985 (minor definitions: general), in subsection (1), in the definitions of “authorised deposit taker”, “authorised insurer” and “authorised mortgage lender”, for “Part 4” substitute “Part 4A”.
In section 338 of the Housing (Scotland) Act 1987 (interpretation), in subsection (1)—
in the definition of “bank”, for “Part 4” substitute “Part 4A”, and
in the definition of “insurance company” for “Part 4” substitute “Part 4A”.
In section 95 of the Road Traffic Act 1988 (notification of refusal of insurance on grounds of health), in subsection (3)(a), for “Part 4” substitute “Part 4A”.
The Legal Services Act 2007 is amended as follows. In section 64 (modification of functions of the Legal Services Board), in subsection (5), in the definition of “authorised insurer”, for “Part 4” substitute “Part 4A”. In section 169 (disclosure of information to the Legal Services Board), for subsection (5)(f) substitute— In section 195 (application of the Legal Profession and Legal Aid (Scotland) Act 2007), in subsection (2)(e), for “Financial Services Authority” substitute “Financial Conduct Authority”.
In section 7 of the Dormant Bank and Building Society Accounts Act 2008 (meaning of “bank”), in subsection (2)(a), for “Part 4” substitute “Part 4A”.
In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities subject to the public sector equality duty), under the italic heading “Industry, business, finance etc”—
for “The Financial Services Authority” substitute “The Financial Conduct Authority”, and
The Prudential Regulation Authority
Part 4 of Schedule 19 to the Finance Act 2011 (the bank levy) is amended as follows. In paragraph 37(2), in both places, for “section 213(2)(b)” substitute “section 213(3)(b)”. In paragraph 38(3)(a), for “section 139(1)” substitute “section 137B(1)”.
In section 145 of the Health and Social Care Act 2012 (borrowing), in subsection (3)(a), for “Part 4” substitute “Part 4A”.
In section 75 of the Housing (Scotland) Act 2006 (determination by local authorities about applications for a grant or loan), in subsection (5)(a), in the definition of “commercial lender”, for “Part 4” substitute “Part 4A”.
“the UK financial system” means the financial system of the United Kingdom.
Schedule 3 to the Bank of England Act 1998 (Monetary Policy Committee) is amended as follows. In paragraph 1, for the words from “except that” to the end substitute “ but this is subject to paragraph 2B ”. Omit paragraph 2. After paragraph 2A insert— In paragraph 3— In paragraph 4— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In paragraph 9— In paragraphs 10(2) and 11(3), leave out “with executive responsibility”. After paragraph 13 insert— Sub-paragraph (3) does not affect the term of any appointment made before the commencement of that sub-paragraph, and sub-paragraph (6) does not affect the status of a person appointed before the commencement of that sub-paragraph during the remainder of the term for which the person had been appointed.
If the Treasury decide to arrange for an inquiry to be held under this section, they may appoint such person as they consider appropriate to hold the inquiry.
The Treasury may, by a direction to the appointed person, control—
the scope of the inquiry;
the period during which the inquiry is to be held;
the conduct of the inquiry;
the making of reports.
A direction may, in particular—
confine the inquiry to particular matters;
extend the inquiry to additional matters;
require the appointed person to postpone the start of, or suspend, an inquiry until a specified time or until a further direction;
require the appointed person to discontinue the inquiry or to take only such steps as are specified in the direction;
require the appointed person to make such interim reports as are so specified.
The person appointed to hold an inquiry under section 69 (“A”) may—
obtain such information from such persons and in such manner as A thinks fit,
make such inquiries as A thinks fit, and
determine the procedure to be followed in connection with the inquiry.
A may require any person who, in A's opinion, is able to provide any information, or produce any document, which is relevant to the inquiry to provide any such information or produce any such document.
For the purposes of an inquiry, A has the same powers as the court in respect of the attendance and examination of witnesses (including the examination of witnesses abroad) and in respect of the production of documents.
“The court” means—
the High Court, or
in Scotland, the Court of Session.
On completion of an inquiry under section 69, the person holding the inquiry must make a written report to the Treasury—
setting out the result of the inquiry, and
making such recommendations (if any) as the person considers appropriate.
Any expenses reasonably incurred in holding an inquiry under section 69 are to be met by the Treasury out of money provided by Parliament.
If a person (“P”)— the person holding the inquiry may certify the matter to the High Court (or, in Scotland, the Court of Session).
fails to comply with a requirement imposed on P by a person holding an inquiry under section 69, or
otherwise obstructs such an inquiry,
The court may enquire into the matter.
If, after hearing— the court is satisfied that P would have been in contempt of court if the inquiry had been proceedings before the court, it may deal with P as if P were in contempt.
any witnesses who may be produced against or on behalf of P, and
any statement made by or on behalf of P,
Subsection (3) applies where it appears to the FCA that—
events have occurred in relation to a regulated person or collective investment scheme which—
indicated a significant failure to secure an appropriate degree of protection for consumers,
had or could have had a significant adverse effect on the integrity of the UK financial system, as defined by section 1D of FSMA 2000 (the integrity objective), or
had or could have had a significant adverse effect on effective competition in the interests of consumers in the markets for the services described in paragraphs (a) and (b) of section 1E(1) of FSMA 2000 (the competition objective), and
those events might not have occurred, or the failure or adverse effect might have been reduced, but for a serious failure in—
the system established by FSMA 2000 for the regulation of authorised persons and of the carrying on of regulated activities, for the listing of securities , for the regulation of collective investment schemes or for the regulation of recognised investment exchanges,, so far as it relates to the functions of the FCA, or
the operation of that system, so far as it relates to those functions.
Subsection (3) also applies where the Treasury direct the FCA that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.
The FCA must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.
Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the FCA that it is not required to carry out an investigation into the events concerned.
“Regulated person” means—
an authorised person,
a recognised investment exchange,
any other person lawfully carrying on a regulated activity,
a person carrying on business in contravention of the general prohibition in section 19 of FSMA 2000, or
an issuer of listed securities.
Subsection (4) applies where it appears to the PRA that—
relevant public expenditure has been incurred in respect of a PRA-authorised person, and
that expenditure might not have been incurred but for a serious failure in—
the system established by FSMA 2000 for the regulation of PRA-authorised persons and their activities, so far as it relates to the functions of the PRA, or
the operation of that system, so far as it relates to those functions.
Subsection (4) also applies where it appears to the PRA that—
events have occurred which—
had or could have had a significant adverse effect on the safety or soundness of one or more PRA-authorised persons, or
if the effecting and carrying out of contracts of insurance is a PRA-regulated activity for the purposes of FSMA 2000, related to a PRA-authorised person carrying on that activity and indicated a significant failure to secure an appropriate degree of protection for policyholders, and
those events might not have occurred, or the adverse effect or failure might have been reduced, but for a serious failure in—
the system established by FSMA 2000 for the regulation of PRA-authorised persons and their activities, so far as it relates to the functions of the PRA, or
the operation of that system, so far as it relates to those functions.
Subsection (4) also applies where the Treasury direct the PRA that it appears to the Treasury—
that the conditions in subsection (1)(a) and (b) are met in relation to a specified person, or
that the conditions in subsection (2)(a) and (b) are met in relation to specified events.
The PRA must—
carry out an investigation into—
the events that gave rise to the incurring of the public expenditure mentioned in subsection (1)(a) and the circumstances surrounding them, or
the events mentioned in subsection (2)(a) and the circumstances surrounding them, and
report to the Treasury on the result of the investigation.
Subsection (4) does not apply by virtue of subsection (1) if the Treasury direct the PRA that it is not required to carry out an investigation into the events concerned.
This section has effect for the interpretation of section 74.
“Policyholder” has the same meaning as in FSMA 2000.
Relevant public expenditure has been incurred in respect of a PRA-authorised person (“P”) in each of the following cases (but no others)—
where the Treasury or the Secretary of State have provided financial assistance to or in respect of P for the purposes of resolving or reducing a threat to the stability of the UK financial system;
where the Treasury have incurred expenditure in connection with the exercise by the Treasury, the Secretary of State or the Bank of England of any power under Parts 1 to 3 of the Banking Act 2009 in relation to P;
where the scheme manager of the Financial Services Compensation Scheme has received a loan from the National Loans Fund, or financial assistance from the Treasury, for the purpose of funding expenses incurred or expected to be incurred under the Financial Services Compensation Scheme by reason of events relating to P.
In subsection (3)(a) and (c) “financial assistance” includes giving guarantees or indemnities and any other kind of financial assistance (actual or contingent), but does not include the giving by the Treasury of an indemnity or guarantee in respect of the provision of financial assistance by the Bank of England.
The Treasury may by order made by statutory instrument provide that a specified activity or transaction, or class of activity or transaction, is to be or is not to be treated as financial assistance for the purposes of subsection (3)(a), and subsection (4) is subject to this subsection.
This section applies only if PRA-authorised persons include—
the Society, or
other persons who carry on regulated activities in relation to anything done at Lloyd's.
Section 74 has effect as if—
in subsection (1)(a) (and section 75(3)), the reference to a PRA-authorised person included a reference to a member of the Society,
in subsection (2)(a)(i), the reference to one or more PRA-authorised persons included a reference to the Society, and the members of the Society, taken together, and
in subsection (2)(a)(ii), the reference to a PRA-authorised person carrying on the activity of effecting and carrying out contracts of insurance included a reference to—
the Society, or
any other person who carries on PRA-regulated activities in relation to anything done at Lloyd's.
In this section—
“PRA-regulated activity” is to be read in accordance with section 22A of FSMA 2000, and
terms which are defined in Lloyd's Act 1982 have the same meaning as in that Act.
This section applies where—
the Treasury consider that it is in the public interest that a regulator should undertake an investigation into any relevant events, and
it does not appear to the Treasury that the regulator has undertaken or is undertaking an investigation (under this Part or otherwise) into those events.
The Treasury must give the regulator a direction specifying the relevant events and requiring the regulator to undertake an investigation into those events and the circumstances surrounding them and to report to the Treasury on the result of the investigation.
“Relevant events” means events that have occurred in relation to—
a collective investment scheme,
a person who is, or was at the time of the events, carrying on a regulated activity (whether or not as an authorised person), ...
listed securities or an issuer of listed securities, or
a regulated payment system.
“Relevant events” do not include any events occurring before 1 December 2001 (but no such limitation applies to the reference in subsection (2) to surrounding circumstances).
Subsection (3) applies where it appears to the Payment Systems Regulator that—
events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—
participants in the payment system, or
those who use, or are likely to use, the services provided by the payment system, and
those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—
the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or
the operation of that system.
Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.
The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.
Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.
In this section “participant”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).
Where a regulator is required by section 73 , 74 or 76A or under section 77 to carry out an investigation, it is for the regulator to decide how it is to be carried out, but this is subject to the following provisions.
In carrying out such an investigation, the regulator must have regard to the desirability of minimising any adverse effect that the carrying out of the investigation may have on the exercise by the regulator of any of its other functions.
The regulator may postpone the start of, or suspend, an investigation if it considers it necessary to do so to avoid a material adverse effect on the exercise by it of any of its other functions.
The regulator must notify the Treasury if it postpones the start of, or suspends, an investigation under subsection (3), and the notification must specify when the investigation will begin or resume.
The Treasury may, by a direction to the regulator, control—
the scope of the investigation;
the period during which the investigation is to be carried out;
the conduct of the investigation;
the making of reports.
A direction may, in particular—
confine the investigation to particular matters;
extend the investigation to additional matters;
require the regulator to postpone the start of, or suspend, an investigation until a specified time or until a further direction;
where a notification has been received under subsection (3), require the regulator to begin or resume the investigation immediately or at a specified time;
require the regulator to discontinue the investigation or to take only such steps as are specified in the direction;
require the regulator to make such interim reports as are so specified.
In exercising the power conferred on them by this section, the Treasury must have regard to the desirability of minimising any adverse effect that the carrying out of the investigation may have on the exercise by the regulator of any of its other functions.
On completion of an investigation required by section 73 , 74 or 76A or under section 77, the regulator must make a written report to the Treasury—
setting out the result of the investigation,
setting out the lessons (if any) that the regulator considers that it should learn from the investigation, and
making such recommendations (if any) as the regulator considers appropriate.
Each regulator must prepare and issue a statement of its policy with respect to the exercise of its functions under sections 73 to 79 (“the relevant sections”) and, in particular—
the matters it will take into account in determining whether the conditions which give rise to its duty to carry out an investigation under section 73 , 74 or 76A (as the case may be) are met, and
how it will carry out investigations under the relevant sections.
A regulator may at any time alter or replace a statement issued by it under this section.
If a statement issued under this section is altered or replaced by a regulator, the regulator must issue the altered or replacement statement.
A regulator must obtain the consent of the Treasury before issuing a statement under this section.
A statement issued under this section by a regulator must be published by the regulator in the way appearing to the regulator to be best calculated to bring it to the attention of the public.
A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.
In exercising, or deciding whether to exercise, its functions under the relevant sections a regulator must have regard to any statement published by it under this section and for the time being in force.
A regulator may charge a reasonable fee for providing a person with a copy of a statement issued by it.
This section applies to a direction given by the Treasury under any of the following provisions—
section 73(4);
section 74(5);
section 78(5).
section 76A(4);
As soon as practicable after giving the direction, the Treasury must—
lay before Parliament a copy of the direction, and
publish the direction in such manner as the Treasury think fit.
Subsection (2) does not apply where the Treasury consider that publication of the direction would be against the public interest.
This section applies where a report is made to the Treasury under section 71 or 79.
Subject to subsection (3), the Treasury must publish the report in full.
The Treasury may withhold material in the report from publication to such extent—
as is required by any statutory provision (including any provision of assimilated direct legislation) or rule of law, or
as the Treasury consider to be necessary in the public interest, having regard in particular to the matters mentioned in subsection (4).
Those matters are—
the extent to which withholding material might inhibit the allaying of public concern;
the risk of harm or damage that could be avoided or reduced by withholding any material;
any conditions of confidentiality subject to which any person acquired information that was given to the inquiry or used in the investigation.
In subsection (4)(b) “harm or damage” includes in particular—
damage to national security or international relations;
damage to the economic interests of the United Kingdom or a part of the United Kingdom;
damage caused by disclosure of commercially sensitive information.
The Treasury must lay before Parliament whatever is published under subsection (2).
If the Treasury receive a report under section 71 or 79, but withhold all or part of the material in the report from publication, they must publish and lay before Parliament a statement of their reasons for not publishing the report in full.
Publication under subsection (2) or (7) is to be in such manner as the Treasury think fit.
References to a report under section 71 or 79 include references to an interim report required under section 69 or 78.
In this Part—
“CCA 1974” means the Consumer Credit Act 1974;
In section 9 of the Bankers' Books Evidence Act 1879 (interpretation), in subsection (1A)(a), for “Part 4” substitute “ Part 4A ”.
In section 24A of the Theft Act 1968 (dishonestly retaining a wrongful credit), in subsection (9), for paragraph (c) substitute—
In section 1 of the Superannuation Act 1972 (superannuation schemes: civil servants), in subsection (9), in the definition of “authorised provider”, for “Part 4” substitute “Part 4A”.
In section 87 of the Solicitors Act 1974 (interpretation), in the definition of “bank” in subsection (1) and in subsection (1A)(a), for “Part 4” substitute “Part 4A”.
In section 8A of the Police Pensions Act 1976 (information in connection with police pensions etc.), in subsection (2)(a), for “section 150” substitute “section 138D”.
In section 59 of the Inheritance Tax Act 1984 (qualifying interest in possession), in subsection (3)(b)(i), for “Part 4” substitute “Part 4A”.
In section 21 of the Administration of Justice Act 1985 (professional indemnity and compensation), in subsection (5)(a), for “Part 4” substitute “Part 4A”.
building society special administration,
“recognised CSD” has the same meaning as in FSMA 2000;
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices), at the appropriate place insert— “ Member of the Financial Policy Committee of the Bank of England appointed under section 9B(1)(d) or (e) of the Bank of England Act 1998. ”
Section 244 of the Banking Act 2009 (immunity) is amended as follows. In subsection (2)— After subsection (2) insert—
Schedule 3 to FSMA 2000 (EEA passport rights) is amended as follows.
In section 127A of the County Courts Act (Northern Ireland) 1959 (voluntary contributions to judicial pension scheme), in subsection (7), in the definition of “authorised provider”, for “Part 4” substitute “Part 4A”.
In this Schedule “the relevant commencement” means the time when section 6 comes into force in relation to section 1A(1) of FSMA 2000, (which renames the Financial Services Authority as the Financial Conduct Authority).
On the relevant commencement, the registrar of companies for England and Wales must give effect to section 1A(1) of FSMA 2000 by— On the coming into force of section 6 so far as it relates to section 2A(1) of FSMA 2000, (which renames the Prudential Regulation Authority Limited as the Prudential Regulation Authority), the registrar of companies for England and Wales must give effect to that provision by—
“building society”, “building society insolvency” and “building society special administration” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act),
In Part 3 (exercise of passport rights by UK firms), before the italic heading before paragraph 19 insert—
Paragraph 19 (establishment) is amended as follows. For “Authority”, in each place, substitute “ appropriate UK regulator ”. After sub-paragraph (7B) insert—
Paragraph 20 (services) is amended as follows. For “Authority”, in each place, substitute “ appropriate UK regulator ”. After sub-paragraph (3A) insert—
In paragraph 20ZA (information for host state regulator), for “Authority”, in each place, substitute “ appropriate UK regulator ”.
In paragraph 20B (notice of intention to market), for “Authority”, in each place, substitute “ appropriate UK regulator ”.
In paragraph 22 (continuing regulation of UK firms), in sub-paragraph (3)—
for “the Authority's consent” substitute “ the consent of the FCA or the PRA ”, and
in paragraph (b), for “the Authority” substitute “ the FCA or the PRA ”.
Paragraph 23 (power to impose requirements) is amended as follows. For “the Authority”, in each place, substitute “ the FCA ”. In sub-paragraph (1)(a), for “Part IV permission” substitute “ Part 4A permission ”. In sub-paragraphs (2) and (2A), for “section 45” substitute “ section 55L or 55M ”. After sub-paragraph (2A) insert—
Paragraph 24 (which relates to UK firms exercising rights under the banking consolidation directive) is amended as follows. In sub-paragraph (1)(a), for “Part IV permission” substitute “ Part 4A permission ”. In sub-paragraph (2)—
After paragraph 24 insert—
In paragraph 25 (information to be included in the public record) for “Authority” substitute “ FCA ”.
In paragraph 26 (UK management companies: delegation of functions), for “Authority”, in each place, substitute “ appropriate UK regulator ”.
In paragraph 27 (UK management companies: withdrawal of authorisation), for “Authority”, in each place, substitute “ appropriate UK regulator ”.
In paragraph 28 (management companies: request for information), for “Authority”, in each place, substitute “ appropriate UK regulator ”.
“recognised clearing house” has the same meaning as in FSMA 2000;
A direction by the Treasury under this Part must be given in writing.
The regulators must—
make arrangements (“the complaints scheme”) for the investigation of complaints arising in connection with the exercise of, or failure to exercise, any of their relevant functions (see section 85). ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the purposes of this Part “the regulators” are the FCA, the PRA and the Bank of England, and references to a regulator are to be read accordingly.
The Treasury must appoint an independent person (“the investigator”) to be responsible for the conduct of investigations in accordance with the complaints scheme.
The complaints scheme must be designed so that, as far as reasonably practicable, complaints are investigated quickly.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The terms and conditions on which the investigator is appointed must be such as, in the opinion of the Treasury, are reasonably designed to secure—
that the investigator will be free at all times to act independently of the regulators, and
that complaints will be investigated under the complaints scheme without favouring the regulators.
This section has effect for the interpretation of the reference in section 84(1)(a) to the relevant functions of the regulators.
The relevant functions of the FCA or the PRA are—
its functions conferred by or under FSMA 2000, other than its legislative functions and its standards review functions, and
such other functions as the Treasury may by order provide.
The relevant functions of the Bank of England are—
its functions under Part 18 of FSMA 2000 (recognised clearing houses and CSDs ) or under Part 5 of the Banking Act 2009 (... payment systems) or Part 5A of that Act (wholesale cash distribution), other than its legislative functions, and
such other functions as the Treasury may by order provide.
For the purposes of subsection (2)(a), the following are the FCA's legislative functions—
making rules under FSMA 2000;
issuing codes under section ... 119 of FSMA 2000;
issuing statements under—
section 63ZD, 63C, ... 69, 88C, 89S, 93, 124, ... 138N, 192H, 192N, 210 or 312J of FSMA 2000,
section 345D of FSMA 2000 (whether as a result of section 345(2) or 345A(3) or section 249(1) or 261K(1) of that Act), or
section 80 of the Financial Services Act 2012;
giving directions under section 316, 318 or 328 of FSMA 2000;
issuing general guidance, as defined in section 139B(5) ... of FSMA 2000.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
making technical standards in accordance with Chapter 2A of Part 9A of FSMA 2000;
making EU Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment etc.) (EU Exit) Regulations 2018.
For the purposes of subsection (2)(a), the following are the PRA's legislative functions—
making rules under FSMA 2000;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
issuing statements under—
section 63ZD, 63C, ... 69, 192H, 192N, 210 or 345D of FSMA 2000, or
section 80 of the Financial Services Act 2012;
giving directions under section 316 or 318 of FSMA 2000;
issuing guidance under section 2I of FSMA 2000.
making technical standards in accordance with Chapter 2A of Part 9A of FSMA 2000;
making EU Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment etc.) (EU Exit) Regulations 2018.
For the purposes of subsection (2)(a), the FCA's standards review functions are the FCA's functions under sections 9(2) and 10 of the Financial Guidance and Claims Act 2018 (approving and reviewing standards set by Money and Pensions Service).
For the purposes of subsection (3)(a), the following functions of the Bank of England under Part 18 of FSMA 2000 are legislative functions—
making rules;
issuing statements—
under section 312J, or
by virtue of the application by Schedule 17A of a provision mentioned in subsection (5)(c)(i) of this section.
For the purposes of subsection (3)(a), the following functions of the Bank of England under Parts 5 and 5A of the Banking Act 2009 are legislative functions—
publishing principles or codes of practice under sections 188 ,189, 206K and 206L;
preparing statements under section 198(3) and 206T(3).
For the purposes of subsection (2), sections 1A(6) and 2AB(3) of FSMA 2000 do not apply.
Before making the complaints scheme, the regulators must publish a draft of the proposed scheme in the way appearing to them to be best calculated to bring it to the attention of the public.
The draft must be accompanied by notice that representations about it may be made to any of the regulators within a specified time.
Before making the proposed complaints scheme, the regulators must have regard to any representations made to any of them in accordance with subsection (2).
If the regulators make the proposed complaints scheme, they must publish an account, in general terms, of—
the representations made to any of them in accordance with subsection (2), and
their response to the representations.
If the complaints scheme differs from the draft published under subsection (1) in a way which is, in the opinion of the regulators, significant the regulators must (in addition to complying with subsection (4)) publish details of the difference.
The regulators must publish up-to-date details of the complaints scheme including, in particular, details of—
the provision made under section 87(5), and
the powers which the investigator has to investigate a complaint.
Those details must be published in the way appearing to the regulators to be best calculated to bring them to the attention of the public.
The regulators must notify the Treasury of the publication of details under subsection (6).
A regulator may charge a reasonable fee for providing a person with a copy of—
a draft published under subsection (1), or
details published under subsection (6).
Subsections (1) to (5) and (9)(a) also apply to a proposal to alter or replace the complaints scheme.
A regulator is not obliged to investigate in accordance with the complaints scheme a complaint which it reasonably considers would be more appropriately dealt with in another way (for example by referring the matter to the Upper Tribunal or by the institution of other legal proceedings).
The complaints scheme must provide—
for reference to the investigator of any complaint which a regulator is investigating,
for the investigator—
to have the means to conduct a full investigation of the complaint,
to report to the regulator to which the complaint relates and the complainant on the result of the investigator's investigation, and
to be able to publish the investigator's report (or part of it) if the investigator considers that it (or the part) ought to be brought to the attention of the public, and
for the meeting by the regulators of the expenses of the scheme.
If a regulator has decided not to investigate a complaint, it must notify the investigator.
If the investigator considers that a complaint of which the investigator has been notified under subsection (3) ought to be investigated, the investigator may proceed as if the complaint had been referred to the investigator under the complaints scheme.
The complaints scheme must confer on the investigator the power to recommend, if the investigator thinks it appropriate, that the regulator to which a complaint relates takes either or both of the following steps—
makes a compensatory payment to the complainant, or
remedies the matter complained of.
The complaints scheme must require the regulator to which a complaint relates, in a case where the investigator— to inform the investigator and the complainant of the steps which it proposes to take in response to the report.
has reported that the complaint is well-founded, or
has criticised the regulator in a report,
The investigator may require the regulator to which a complaint relates to publish the whole or a specified part of the response.
The investigator may appoint a person to conduct the investigation on the investigator's behalf but subject to the investigator's direction.
An officer or employee of any of the regulators may not be appointed under subsection (8).
Subsection (2) is not to be taken as preventing a regulator from making arrangements for the initial investigation of a complaint to be conducted by the regulator.
The complaints scheme must provide—
for the investigator to prepare an annual report on its investigations under the scheme, to publish it and send a copy of it to each regulator and to the Treasury;
for each regulator to respond to any recommendations or criticisms relating to it in the report, to publish the response and send a copy of it to the investigator and the Treasury;
for the regulator’s response under paragraph (b) to include a summary of—
the cases in which the regulator decided not to follow any relevant recommendations, and
the reasons for not following those recommendations;
for the Treasury to lay the annual report and any response before Parliament.
The complaints scheme may make provision about the period to which each annual report must relate (“the reporting period”) and the contents of the report and must in particular provide for it to include—
information concerning any general trends emerging from the investigations undertaken during the reporting period;
any recommendations which the investigator considers appropriate as to the steps a regulator should take in response to such trends;
a review of the effectiveness during the reporting period of the procedures (both formal and informal) of each regulator for handling and resolving complaints which have been investigated by the investigator during the reporting period;
an assessment of the extent to which those procedures were accessible and fair, including where appropriate an assessment in relation to different categories of complainant;
any recommendations about how those procedures, or the way in which they are operated, could be improved.
such other matters as the Treasury may from time to time direct.
In subsection (9A)(ba) the reference to “relevant recommendations”, in relation to the regulator’s response in respect of an annual report, is a reference to—
any recommendations to the regulator contained in that annual report, and
any recommendations to the regulator contained in final reports relating to individual complaints given during the period to which that annual report relates.
Neither the investigator appointed under section 84 nor a person appointed to conduct an investigation on the investigator's behalf under section 87(8) is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of functions in relation to the investigation of a complaint.
Subsection (1) does not apply—
if the act or omission is shown to have been in bad faith, or
so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.
Subsection (2) applies to a person (“P”) who—
makes a statement which P knows to be false or misleading in a material respect,
makes a statement which is false or misleading in a material respect, being reckless as to whether it is, or
dishonestly conceals any material facts whether in connection with a statement made by P or otherwise.
P commits an offence if P makes the statement or conceals the facts with the intention of inducing, or is reckless as to whether making it or concealing them may induce, another person (whether or not the person to whom the statement is made)—
to enter into or offer to enter into, or to refrain from entering or offering to enter into, a relevant agreement, or
to exercise, or refrain from exercising, any rights conferred by a relevant investment.
In proceedings for an offence under subsection (2) brought against a person to whom that subsection applies as a result of paragraph (a) of subsection (1), it is a defence for the person charged (“D”) to show that the statement was made in conformity with—
price stabilising rules,
control of information rules, or
the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.
Subsections (1) and (2) do not apply unless—
the statement is made in or from, or the facts are concealed in or from, the United Kingdom or arrangements are made in or from the United Kingdom for the statement to be made or the facts to be concealed,
the person on whom the inducement is intended to or may have effect is in the United Kingdom, or
the agreement is or would be entered into or the rights are or would be exercised in the United Kingdom.
A person (“P”) who does any act or engages in any course of conduct which creates a false or misleading impression as to the market in or the price or value of any relevant investments commits an offence if—
P intends to create the impression, and
the case falls within subsection (2) or (3) (or both).
The case falls within this subsection if P intends, by creating the impression, to induce another person to acquire, dispose of, subscribe for or underwrite the investments or to refrain from doing so or to exercise or refrain from exercising any rights conferred by the investments.
The case falls within this subsection if—
P knows that the impression is false or misleading or is reckless as to whether it is, and
P intends by creating the impression to produce any of the results in subsection (4) or is aware that creating the impression is likely to produce any of the results in that subsection.
Those results are—
the making of a gain for P or another, or
the causing of loss to another person or the exposing of another person to the risk of loss.
References in subsection (4) to gain or loss are to be read in accordance with subsections (6) to (8).
“Gain” and “loss”—
extend only to gain or loss in money or other property of any kind;
include such gain or loss whether temporary or permanent.
“Gain” includes a gain by keeping what one has, as well as a gain by getting what one does not have.
“Loss” includes a loss by not getting what one might get, as well as a loss by parting with what one has.
In proceedings brought against any person (“D”) for an offence under subsection (1) it is a defence for D to show—
to the extent that the offence results from subsection (2), that D reasonably believed that D's conduct would not create an impression that was false or misleading as to the matters mentioned in subsection (1),
that D acted or engaged in the conduct—
for the purpose of stabilising the price of investments, and
in conformity with price stabilising rules,
that D acted or engaged in the conduct in conformity with control of information rules, or
that D acted or engaged in the conduct in conformity with the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.
This section does not apply unless—
the act is done, or the course of conduct is engaged in, in the United Kingdom, or
the false or misleading impression is created there.
See section 137Q(3) of FSMA 2000 regarding the power of the FCA to make rules for the purposes of subsection (9)(d).
A person (“A”) who makes to another person (“B”) a false or misleading statement commits an offence if—
A makes the statement in the course of arrangements for the setting of a relevant benchmark,
A intends that the statement should be used by B for the purpose of the setting of a relevant benchmark, and
A knows that the statement is false or misleading or is reckless as to whether it is.
A person (“C”) who does any act or engages in any course of conduct which creates a false or misleading impression as to the price or value of any investment or as to the interest rate appropriate to any transaction commits an offence if—
C intends to create the impression,
the impression may affect the setting of a relevant benchmark,
C knows that the impression is false or misleading or is reckless as to whether it is, and
C knows that the impression may affect the setting of a relevant benchmark.
In proceedings for an offence under subsection (1), it is a defence for the person charged (“D”) to show that the statement was made in conformity with—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
control of information rules, or
the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.
In proceedings brought against any person (“D”) for an offence under subsection (2) it is a defence for D to show—
that D acted or engaged in the conduct—
for the purpose of stabilising the price of investments, and
in conformity with price stabilising rules,
that D acted or engaged in the conduct in conformity with control of information rules, or
that D acted or engaged in the conduct in conformity with the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.
Subsection (1) does not apply unless the statement is made in or from the United Kingdom or to a person in the United Kingdom.
Subsection (2) does not apply unless—
the act is done, or the course of conduct is engaged in, in the United Kingdom, or
the false or misleading impression is created there.
See section 137Q(3) of FSMA 2000 regarding the power of the FCA to make rules for the purposes of subsection (4)(c).
A person guilty of an offence under this Part is liable—
on summary conviction, to imprisonment for a term not exceeding the applicable maximum term or a fine not exceeding the statutory maximum, or both;
on conviction on indictment, to imprisonment for a term not exceeding 10 years or a fine, or both.
For the purpose of subsection (1)(a) “the applicable maximum term” is—
in England and Wales, the general limit in a magistrates’ court (or 6 months, if the offence was committed before 2 May 2022);
in Scotland, 12 months;
in Northern Ireland, 6 months.
This section has effect for the interpretation of this Part.
“Investment” includes any asset, right or interest.
“Relevant agreement” means an agreement—
the entering into or performance of which by either party constitutes an activity of a kind specified in an order made by the Treasury, and
which relates to a relevant investment.
“Relevant benchmark” means a benchmark of a kind specified in an order made by the Treasury.
“Relevant investment” means an investment of a kind specified in an order made by the Treasury.
Schedule 2 to FSMA 2000 (except paragraphs 25 and 26) applies for the purposes of subsections (3) and (5) with references to section 22 of that Act being read as references to each of those subsections.
Nothing in Schedule 2 to FSMA 2000, as applied by subsection (6), limits the power conferred by subsection (3) or (5).
“Price stabilising rules” and “control of information rules” have the same meaning as in FSMA 2000.
In this section “benchmark” has the meaning given in section 22(6) of FSMA 2000.
“Market abuse regulation” means Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.
References to Article 5 of the market abuse regulation include—
any EU regulation, originally made under that Article, which is assimilated direct legislation, and
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under that Article on or after IP completion day.
This section applies to the first order made under section 93.
This section also applies to any subsequent order made under that section which contains a statement by the Treasury that the effect of the proposed order would include one or more of the following—
that an activity which is not specified for the purposes of subsection (3)(a) of that section would become one so specified,
that an investment which is not a relevant investment would become a relevant investment;
that a benchmark which is not a relevant benchmark would become a relevant benchmark.
A statutory instrument containing (alone or with other provisions) an order to which this section applies may not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.
Section 397 of FSMA 2000 (which relates to misleading statements and practices and is superseded by the provisions of this Part) is repealed.
The Banking Act 2009 is amended as follows.
“client assets” means assets which an institution has undertaken to hold for a client (whether or not on trust, and whether or not the undertaking has been complied with),
In section 4 (special resolution objectives), after subsection (8) insert—
In section 8(2) (Condition A: private sector purchaser and bridge bank)—
in paragraph (b) for “the banking systems of the United Kingdom, or” substitute “ those systems, ”, and
after paragraph (c) insert, or
In section 47 (restriction of partial transfers), for subsection (3) substitute—
Client assets (Part 1) 3
The Banking Act 2009 is amended as follows.
After section 26 insert—
In section 29 (reverse share transfer)—
in subsection (3) for the words from “securities”, in the second place, to the end substitute “ securities issued by the bank and held by a transferee under the onward share transfer order (“the onward transferee”). ”, and
after subsection (4) insert—
In section 31 (bridge bank: reverse share transfer)—
in subsection (1) omit the words from “providing for” to the end,
in subsection (2) for “person within subsection (1)(a) to (c)” substitute “ transferee under the original instrument ”,
after subsection (3) insert—
After section 42 insert—
In section 44 (reverse property transfer)—
in subsection (3) for “of a transferee” to the end substitute “ of a transferee under the onward property transfer instrument (“the onward transferee”). ”,
after subsection (4) insert—
In section 46 (temporary public ownership: reverse property transfer)—
in subsection (1) omit from “providing for” to the end, and
after subsection (3) insert—
In section 48A (creation of liabilities), in subsection (1) after “42(3)(b),” insert “ 42A(3)(b), ”.
In section 53 (onward and reverse transfers: compensation), in subsection (1)—
before paragraph (a) insert—, and
after paragraph (d) insert—.
In section 83 (supplemental), in subsection (2)(d)—
at the end of sub-paragraph (iii) insert “ and ”, and
for sub-paragraphs (iv) and (v) substitute—
Private sector reverse property transfer instrument 42A Private sector reverse share transfer instrument 26A
The Banking Act 2009 is amended as follows.
In section 34(7) (effect of property transfer instruments: provision in respect of property held on trust), in paragraph (a) omit “(which provision may remove or alter the terms of the trust)”.
At the end of section 34 insert—
In section 45 (temporary public ownership: property transfer orders) after subsection (5) insert—
In section 46 (temporary public ownership: reverse property transfer orders) after subsection (5) insert—
After section 79 of the Banking Act 2009 insert—
After section 81 of that Act insert—
In section 1(6) of that Act (table describing provisions of Part 1), in the entry relating to sections 76 to 81, for “81” substitute “ 81A ”.
The Banking Act 2009 is amended as follows.
Sections 81B to 83 Groups
In section 20 (directors), after subsection (1) insert—
After section 36 insert—
For the italic heading before section 82 substitute “ Groups ”, and after that heading insert—
81D Meaning of “banking group company” Draft affirmative resolution (except for urgent cases)
Banking group company 81D
The Banking Act 2009 is amended as follows.
Section 89A Investment firms
In section 2 (interpretation: “bank”), at the end insert—
In section 75(5) (power to change law: application to other institutions), omit the “or” following paragraph (c) and after that paragraph insert—.
After section 89 (and in Part 1) insert—
After section 159 insert—
After section 258 insert—
258A Meaning of “investment firm” Draft affirmative resolution (except for urgent cases)
Investment firm 258A
In section 214B(1)(a) of FSMA 2000 (contribution to costs of special resolution regime) for “or credit union” substitute “ , credit union or investment firm ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Banking Act 2009 is amended as follows.
Sections 89B to 89G UK clearing houses
In section 2 (interpretation: “bank”), after subsection (8) insert—
After section 39 insert—
In section 75(5) (power to change law: application to other institutions), after paragraph (ca) insert—.
After section 89A (and in Part 1) insert—
89F Clearing house compensation orders Draft affirmative resolution
In the Table in section 261 (index of defined terms)—
central counterparty clearing services 89G
PRA-authorised person 89G
UK clearing house 89G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part 5 of the Banking Act 2009 (inter-bank payment systems) is amended as follows.
After section 186 insert—
For section 191 substitute—
In section 186 (procedure)—
for subsection (2) substitute—, and
in subsection (3), for “or the FSA” substitute “ , the FCA or the PRA ”.
In section 187 (de-recognition), for subsection (4) substitute—
In section 192 (role of FSA)—
in subsection (1), for “the FSA” substitute “ the FCA or the PRA ”,
for subsection (2) substitute—,
in subsection (3)—
for “the FSA”, in the first place, substitute “ the FCA or the PRA ”,
for “the FSA”, in the second place, substitute “ it ”,
for “section 186(2)” substitute “ section 186(2)(a) or (b) ”, and
in paragraph (a), for “the FSA” substitute “ the FCA or (as the case may be) the PRA ”, and
in the heading, for “FSA” substitute “ FCA and PRA ”.
After section 202 insert—
After section 203 insert—
In section 204 (information)—
after subsection (1), insert—,
in subsections (2) and (3), after “notice” insert “ under subsection (1) or (1A) ”,
in subsection (4), for paragraph (b) substitute—, and
in paragraph (c) of that subsection, for “or the FSA” substitute “ , the FCA or the PRA ”.
In section 206A (services forming part of recognised inter-bank payment systems)—
in subsection (4)(a), for “and the FSA” substitute “ , the FCA and the PRA ”, and
in subsection (6), for paragraph (b) (and the “and” at the end of it) substitute—.
In Part 5 of the Banking Act 2009, after section 206A insert—
Schedule 17 contains amendments of the Banking Act 2009 related to the provisions of Part 2 of this Act.
Subsection (2) applies on or at any time after the making, after the passing of this Act, of an order under section 22 of FSMA 2000 which has the effect that an activity (a “transferred activity”)—
ceases to be an activity in respect of which a licence under section 21 of CCA 1974 is required or would be required but for the exemption conferred by subsection (2), (3) or (4) of that section or paragraph 15(3) of Schedule 3 to FSMA 2000, and
becomes a regulated activity for the purposes of FSMA 2000.
The Treasury may by order do any one or more of the following—
transfer to the FCA functions of the OFT under any provision of CCA 1974 that remains in force;
provide that any specified provision of FSMA 2000 which relates to the powers or duties of the FCA in connection with the failure of any person to comply with a requirement imposed by or under FSMA 2000 is to apply, subject to any specified modifications, in connection with the failure of any person to comply with a requirement imposed by or under a specified provision of CCA 1974;
require the FCA to issue a statement of policy in relation to the exercise of powers conferred on it by virtue of paragraph (b);
in connection with provision made by virtue of paragraph (b), provide that failure to comply with a specified provision of CCA 1974 no longer constitutes an offence or that a person may not be convicted of an offence under a specified provision of CCA 1974 in respect of an act or omission in a case where the FCA has exercised specified powers in relation to that person in respect of that act or omission;
provide for the transfer to the Treasury of any functions under CCA 1974 previously exercisable by the Secretary of State;
provide that functions of the Secretary of State under CCA 1974 are exercisable concurrently with the Treasury;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the powers of a local weights and measures authority in Great Britain or the Department of Enterprise, Trade and Investment in Northern Ireland in relation to compliance with any provision made by or under CCA 1974,
the powers of such an authority or that Department in relation to the commission or suspected commission of offences under any provision made by or under CCA 1974,
the powers that may be conferred by warrant on an officer of such an authority or that Department, or
things done in the exercise of any of those powers,
enable local weights and measures authorities to institute proceedings in England and Wales for a relevant offence;
enable the Department of Enterprise, Trade and Investment in Northern Ireland to institute proceedings in Northern Ireland for a relevant offence;
provide that references in a specified enactment to the FCA's functions under FSMA 2000 include references to its functions resulting from any order under this section.
If an order under this section makes provision by virtue of subsection (2)(b) enabling the FCA to exercise any of its powers under sections 205 to 206A of FSMA 2000 (disciplinary measures) by reference to an act or omission that constitutes an offence under CCA 1974, the order must also make provision by virtue of subsection (2)(d) ensuring that a person in respect of whom the power has been exercised cannot subsequently be convicted of the offence by reference to the same act or omission.
In subsection (2)(h) and (i)—
“relevant regulated activity” means an activity that is a regulated activity for the purposes of FSMA 2000 by virtue of—
an order made under section 22(1) of that Act in relation to an investment of a kind falling within paragraph 23 or 23B of Schedule 2 to that Act, or
an order made under section 22(1A)(a) of that Act;
“relevant offence” means an offence under FSMA 2000 committed in relation to such an activity.
The Treasury may make provision by virtue of subsection (2)(i) only with the consent of the Department of Enterprise, Trade and Investment in Northern Ireland.
On or at any time after the making of an order under section 22 of FSMA 2000 of the kind mentioned in subsection (1), the Treasury may by order—
exclude the application of any provision of CCA 1974 in relation to a transferred activity, or
repeal any provision of CCA 1974 which relates to a transferred activity.
In exercising their powers under this section, the Treasury must have regard to—
the importance of securing an appropriate degree of protection for consumers, and
the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction.
The additional powers conferred by section 115(2) on a person making an order under this Act include power for the Treasury, when making an order under this section—
to make such consequential provision as the Treasury consider appropriate;
to amend any enactment, including any provision of, or made under, this Act.
The provisions of this section do not limit—
the powers conferred by section 118 or by section 22 of FSMA 2000, or
the powers exercisable under Schedule 21 in connection with the transfer of functions from the OFT.
In this section—
“the OFT” means the Office of Fair Trading.
“public funds” has the same meaning as in section 57A,
In section 73F of the Debtors (Scotland) Act 1987 (protection of minimum balance in bank accounts), in subsection (5)(b), for “Part 4” substitute “Part 4A”.
In section 2 of the Access to Medical Reports Act 1988 (interpretation), in subsection (1), in the definition of “insurer”, for “Part 4” substitute “Part 4A”.
The Companies Act 1989 is amended as follows.
The Social Security Administration Act 1992 is amended as follows. In section 15A (payment out of benefit of sums in respect of mortgage interest), in subsection (4), in the definitions of “deposit taker” and “insurer”, for “Part 4” substitute “Part 4A”. In section 109B (power to require information), in subsection (7), in the definitions of “bank” and “insurer”, for “Part IV” substitute “Part 4A”.
The Railways Act 1993 is amended as follows. In section 145 (restrictions on disclosure of information), in subsection (2)(c), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority or the Prudential Regulation Authority”. In section 151 (general interpretation), in subsection (1), in the definition of “securities”, for “section 74(5)” substitute “section 102A(2)”.
In section 59 of the Coal Industry Act 1994 (information to be kept confidential), in subsection (3)(b), for “and the Financial Services Authority” substitute “, the Financial Conduct Authority and the Prudential Regulation Authority”.
In section 96 of the Finance Act 1997 (demutualisation of insurance companies), in subsection (8), in the definition of “general insurance company”, for “Part 4” substitute “Part 4A”.
In Schedule 7 to the Data Protection Act 1998 (miscellaneous exemptions), in paragraph 6(3), in the definition of “relevant person”, in paragraph (a), for “Part IV” substitute “Part 4A”.
In section 105 of the Utilities Act 2000 (general restriction on disclosure of information), in subsection (4)(da), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England”.
In section 57 of the Criminal Justice and Police Act 2001 (retention of seized items), in subsection (1)(o), for “section 176(8)” substitute “section 176A”.
The Enterprise Act 2002 is amended as follows. In section 213 (enforcers), in subsection (5A)(c), for “Financial Services Authority” substitute “Financial Conduct Authority”. In Schedule 14 (specified functions), in the entry relating to the Financial Services and Markets Act 2000, for “Chapter 3 of Part 10 and Chapter 2 of Part 18” substitute “Chapter 4 of Part 9A”.
In section 63 of the Finance Act 2003 (demutualisation of insurance company), in subsection (7), in the definition of “general insurance company”, for “Part 4” substitute “Part 4A”.
In Part 4 of Schedule 20 to the Energy Act 2004 (modifications of Insolvency Act 1986), in paragraph 42(3), for “administration applications by Financial Services Authority” substitute “administration order”.
The Pensions Act 2004 is amended as follows. In section 115 (borrowing), in subsection (3), in the definition of “deposit- taker”, for “Part 4” substitute “Part 4A”. In Schedule 3 (disclosure of restricted information by the Pensions Regulator), in the Table— In Schedule 8 (disclosure of restricted information by the Board of the Pension Protection Fund), in the Table—
In Part 2 of Schedule 6 to the Gambling Act 2005 (exchange of information: enforcement and regulatory bodies)—
omit the entry “The Financial Services Authority”, and
The Financial Conduct Authority The Prudential Regulation Authority
The Companies Act 2006 is amended as follows.
Schedule 7 to the Counter-Terrorism Act 2008 (terrorist financing and money laundering) is amended as follows. In Part 5 (enforcement: information powers)— In Part 6 (enforcement: civil penalties)— In Part 7 (enforcement: offences), in paragraph 33— In Part 8 (supplemental)—
in paragraph 18(2), in both places, for “FSA” substitute “FCA”, and
in paragraph 21(7), for “FSA” substitute “FCA”.
In Part 3 of Schedule 1 to the Finance Act 2010 (bank payroll tax: definitions), in paragraph 45(14)—
for paragraph (a) and the “or” following it, substitute—, and
in paragraph (b), for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority”.
In Part 3 of Schedule 10 to the Postal Services Act 2011 (conduct of postal administration: modification of enactments), in paragraph 41(3), for “administration applications by FSA” substitute “administration order”.
In section 109 of the Charities Act 2011 (dormant bank account: supplementary), in subsection (3), for “Part 4” substitute “Part 4A”.
The Charities Act (Northern Ireland) 2008 is amended as follows. In section 48 (power to give directions about dormant bank accounts of charities), in subsection (8)(b)(i), for “Part 4” substitute “Part 4A”. In section 56 (powers in relation to English, Welsh and Scottish charities), in subsection (7)(a), for “Part 4” substitute “Part 4A”.
The FSA may disclose to the PRA any information which the FSA considers that it is necessary or expedient to disclose to the PRA in preparation for the commencement of any provision of this Act conferring functions on the PRA. The FSA may disclose to the Bank of England any information which the FSA considers that it is necessary or expedient to disclose to the Bank in preparation for the commencement of any provision of this Act conferring functions on the Bank. Section 348 of FSMA 2000 (restrictions on disclosure of confidential information) has effect subject to sub-paragraphs (1) and (2).
In this Part of this Schedule “the OFT” means the Office of Fair Trading.
Section 82 (request for assistance by overseas regulatory authority) is amended as follows. In subsection (2)(a)— In subsection (3), for “Financial Services Authority” substitute “corresponding UK regulator (if any)”. After that subsection insert— In subsection (5)—
In section 384 (companies excluded from small companies regime), in subsection (2)(c), for “Part 4” substitute “Part 4A”.
Section 87 (exceptions from restrictions on disclosure) is amended as follows. In subsection (2)(b), for sub-paragraph (i) substitute—. In subsection (4), in the Table, in the entry relating to the Financial Services Authority, for “The Financial Services Authority” substitute “The FCA or the PRA”.
Section 461 (permitted disclosure of information obtained under compulsory powers) is amended as follows. In subsection (3), for paragraph (e) and the “or” following it, substitute— . In subsection (4)(g), for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority”.
Section 157 (change in default rules) is amended as follows. In subsection (1)— At the end insert—
In section 467 (companies excluded from being treated as medium-sized), in subsection (1)(b)(i) and (2)(c), for “Part 4” substitute “Part 4A”.
Section 162 (duty to report on completion of default proceedings) is amended as follows. In subsections (1) and (1A), for “Authority” substitute “appropriate regulator”. In subsection (4), for “Authority” substitute “appropriate regulator”. At the end insert—
In section 470 (power to apply provisions to banking partnerships), in subsection (2), for “Part 4” substitute “Part 4A”.
Section 167 (application to determine whether default proceedings to be taken) is amended as follows. In subsections (1B), (3) (in both places), (4) and (5) (in both places), for “Authority” substitute “appropriate regulator”. At the end insert—
In section 474 (definitions), in subsection (1), in the definition of “e-money issuer”, for “Part 4” substitute “Part 4A”.
Section 169 (supplementary provisions) is amended as follows. In subsection (3A), for paragraph (b) and the “and” before it, substitute— In subsection (5), for “or the Authority” substitute “, the FCA or the Bank of England”.
In section 539 (definitions), in subsection (1), in the definition of “e-money issuer”, for “Part 4” substitute “Part 4A”.
Section 176 (power to make provision about certain charges) is amended as follows. In subsection (2)— In subsection (6)—
Section 843 (realised profits and losses of long-term insurance business) is amended as follows. In subsection (2)(b), for “section 142(2)” substitute “Part 9A”. In subsection (6)(a), for “Part 10” substitute “Part 9A”.
Section 190 (minor definitions) is amended as follows. Omit the definition of “the Authority”. After the definition of “charge” insert—. After the definition of “overseas” insert—.
In section 948 (restrictions on disclosure), in subsection (7)—
for paragraph (a) substitute—, and
in paragraph (c), for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority or similar to the regulatory functions of the Bank of England”.
Section 191 (index of defined expressions) is amended as follows. Omit the entry relating to “the Authority”. the FCA Section 190(1) the PRA Section 190(1)
In section 950 (Panel on Takeovers and Mergers: duty of co-operation), in subsection (1)—
for paragraph (a) substitute—, and
in paragraph (c), for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority or similar to the regulatory functions of the Bank of England”.
In section 995 (petition by Secretary of State), in subsection (1)—
in paragraph (c), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England”, and
in paragraph (d), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England”.
In section 1164 (meaning of “banking company” and “banking group”), in subsection (2), for “Part 4” substitute “Part 4A”.
In section 1165 (meaning of “insurance company” etc.), in subsection (2), for “Part 4” substitute “Part 4A”.
Schedule 2 (specified persons and descriptions of disclosure for the purposes of section 948) is amended as follows. In Part 1, in section (A) (United Kingdom), for paragraph 5 substitute— In Part 2, in section (A) (United Kingdom)— In Part 3, in paragraph 1(2), for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority or similar to the regulatory functions of the Bank of England”.
Schedule 11A (specified persons, description, disclosures etc. for the purposes of section 1224A) is amended as follows. In Part 1, for paragraph 5 substitute— In Part 2—
The Consumer Credit Act 1974 is amended as follows.
In section 32 (suspension or revocation)—
in subsection (1), omit “or suspended”,
in subsection (2)—
in paragraph (a), omit “, as the case may be,” and “, or suspend it until a specified date or indefinitely,”, and
in paragraph (b), omit “or suspension” and “or suspend”,
in subsection (3)—
in paragraph (a), omit “, as the case may be,” and “, or suspend it until a specified date or indefinitely,”, and
in paragraph (b), omit “or suspension”,
in subsection (4)—
in paragraph (a), omit “, as the case may be,” and “, or suspend it until a specified date or indefinitely,”, and
in paragraph (b), omit “or suspension”,
in subsections (6) and (7), omit “or suspension”,
omit subsection (8),
in subsection (9), omit “or to suspend”, and
in the heading, omit “Suspension and”.
After section 32 insert—
In section 33 (application to end suspension), for subsection (1) substitute—
In section 33A (power of OFT to impose requirements on licensees) after subsection (6) insert—
After section 34 insert—
In section 34A (winding-up of standard licensee's business), in subsection (2)—
in paragraph (c), omit “suspend or”, and
after paragraph (c) insert—.
In section 41 (appeals) after subsection (1) insert—
Nothing in this section affects the powers conferred by section 22 of FSMA 2000 or section 107 of this Act.
The Financial Services Authority (“the FSA”) must in respect of its financial year beginning with 1 April 2012 and each subsequent financial year pay to the Treasury its penalty receipts after deducting its enforcement costs.
The FSA's “penalty receipts” in respect of a financial year are any amounts received by it during the year by way of penalties imposed under FSMA 2000.
The FSA's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—
the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or
the recovery of penalties imposed under FSMA 2000.
For this purpose the FSA's enforcement powers are—
its powers under any of the provisions mentioned in subsection (5),
its powers under any other enactment specified by the Treasury by order,
its powers in relation to the investigation of relevant offences, and
its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.
The provisions referred to in subsection (4)(a) are the following provisions of FSMA 2000—
section 56 (prohibition orders),
section 63A (penalties relating to performance of controlled functions without approval),
section 66 (disciplinary powers in relation to approved persons),
section 87M (public censure of issuer),
section 89 (public censure of sponsor),
section 89K (public censure of issuer),
section 91 (penalties for breach of Part 6 rules),
section 123 (penalties in case of market abuse),
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
sections 205, 206 and 206A (disciplinary measures),
section 249 (disqualification of auditor for breach of trust scheme rules),
section 345 (disqualification of auditor or actuary), and
Part 25 (injunctions and restitution).
“Relevant offences” are—
offences under FSMA 2000,
offences under subordinate legislation made under that Act,
offences falling within section 402(1) of that Act, and
any other offences specified by the Treasury by order.
The Treasury may give directions to the FSA as to how the FSA is to comply with its duty under subsection (1).
The directions may in particular—
specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in subsection (3),
relate to the calculation and timing of the deduction in respect of the FSA's enforcement costs, and
specify the time when any payment is required to be made to the Treasury.
The directions may also require the FSA to provide the Treasury at specified times with information relating to—
penalties that the FSA has imposed under FSMA 2000, or
the FSA's enforcement costs.
The Treasury must pay into the Consolidated Fund any sums received by them under this section.
The scheme operated by the FSA under paragraph 16 of Schedule 1 to FSMA 2000 is, in the case of penalties received by the FSA on or after 1 April 2012, to apply only in relation to sums retained by the FSA as a result of the deduction for which subsection (1) provides.
When section 6(2) is fully in force, the Treasury may by order repeal this section.
The Bank of England (“the Bank”) must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.
The Bank's “penalty receipts” in respect of a financial year are any amounts received by the Bank during the year by way of penalties imposed under any of the following provisions—
sections 192K , 309U, 309Z2 and 312F of FSMA 2000, and
sections 198 and 206T of the Banking Act 2009.
The Bank's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—
the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or
the recovery of penalties imposed under any of the provisions mentioned in subsection (2).
For this purpose the Bank's enforcement powers are—
its powers under any of the provisions mentioned in subsection (5),
its powers under any other enactment specified by the Treasury by order,
its powers in relation to the investigation of offences under FSMA 2000 or of any other offences specified by the Treasury by order, and
its powers in England and Wales or Northern Ireland in relation to the prosecution of offences under FSMA 2000 or of any other offences specified by the Treasury by order.
The provisions referred to in subsection (4)(a) are as follows—
sections 192K to 192N of FSMA 2000 (parent undertakings), as applied to the Bank by Schedule 17A to that Act,
sections 312E , 312F and 312FA of that Act (disciplinary measures in relation to clearing houses and central securities depositories ),
sections 309B, 309U and 309Z2 of that Act (Part 18 prohibition orders),
sections 380, 382 and 384 of that Act (injunctions and restitution), as applied to the Bank by Schedule 17A to that Act, ...
sections 197 to 200 and 202A of the Banking Act 2009 (... payment systems) , and
sections 206S to 206V and 206Y of that Act (wholesale cash distribution).
The Treasury may give directions to the Bank as to how the Bank is to comply with its duty under subsection (1).
The directions may in particular—
specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in subsection (3),
relate to the calculation and timing of the deduction in respect of the Bank's enforcement costs, and
specify the time when any payment is required to be made to the Treasury.
The directions may also require the Bank to provide the Treasury at specified times with specified information relating to—
penalties that the Bank has imposed under the provisions mentioned in subsection (2), or
the Bank's enforcement costs.
The Treasury must pay into the Consolidated Fund any sums received by them under this section.
Section 166 of the Companies Act 1989 (power of Secretary of State to give directions to recognised investment exchange or recognised clearing house) is amended as follows.
In subsection (2)(a)—
for “Authority”, in the first place, substitute “ appropriate regulator ”, and
for “Authority”, in the second place, substitute “ regulator ”.
In subsection (2)(b)—
for “Authority”, in the first place, substitute “ appropriate regulator ”, and
for “Authority”, in the second place, substitute “ regulator ”.
In subsection (3)—
for “Authority” substitute “ appropriate regulator ”,
omit the “or” following paragraph (a), and
at the end insert—
In subsection (7)—
for “Authority”, in the first place, substitute “ appropriate regulator ”, and,
omit the words from “The Authority shall not” to the end.
After that subsection insert—
In subsection (8), for “Authority” substitute “ regulator which gave the direction ”.
At the end insert—
In the heading, omit “of Secretary of State”.
In section 785 of the Companies Act 2006 (provision enabling procedures for evidencing and transferring title), at the end insert—
The Director of Savings (“the Director”) may enter into arrangements with a public body for the provision by the Director, or persons authorised by the Director, of services to the body.
Arrangements are to be on such terms, including terms as to payment, as may be agreed.
“Public body” means a person or body whose functions are of a public nature.
Schedule 18 contains further amendments of FSMA 2000 and other enactments.
Schedule 19 contains further consequential repeals.
Any power of the Treasury or the Secretary of State to make an order under this Act is exercisable by statutory instrument.
Any order made by the Treasury or the Secretary of State under this Act may—
contain such incidental or transitional provision as the Treasury consider appropriate, and
make different provision for different cases.
A statutory instrument containing (alone or with other provision) an order to which subsection (2) applies may not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.
This subsection applies to—
an order under section 37(2) (power to amend sections 391 and 395 of FSMA 2000);
an order under Part 3 (mutual societies);
an order under section 107 (power to make further provision about regulation of consumer credit);
an order under section 118 (power to make further consequential amendments) that amends or repeals primary legislation.
A statutory instrument containing an order under this Act, other than an instrument to which section 94 or subsection (1) applies or an instrument containing only provision made under section 122 (commencement), is subject to annulment in pursuance of a resolution of either House of Parliament.
In this section “primary legislation” means—
an Act of Parliament,
an Act of the Scottish Parliament,
a Measure or Act of the National Assembly for Wales, or
Northern Ireland legislation.
In this Act “FSMA 2000” means the Financial Services and Markets Act 2000.
In this Act—
“the FCA” means the Financial Conduct Authority;
“the PRA” means the Prudential Regulation Authority;
“the PRA” means the Prudential Regulation Authority (and see section 2A of the Financial Services and Markets Act 2000 for the interpretation of references to the Prudential Regulation Authority) ;
In this Act “enactment” includes—
an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978;
an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament;
an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales;
an enactment contained in, or in an instrument made under, Northern Ireland legislation.
In this Act references to the Bank of England do not include the Bank acting in its capacity as the PRA.
The Treasury or the Secretary of State may by order make such provision amending, repealing, revoking or applying with modifications any enactment to which this section applies as they consider necessary or expedient in consequence of any provision made by or under this Act.
This section applies to—
any enactment passed or made before the passing of this Act, and
any enactment passed or made on or before the last day of the Session in which this Act is passed.
Amendments and repeals made under this section are additional to those made by or under any other provision of this Act.
Schedule 20 contains transitional provisions.
Schedule 21 contains provision about the transfer of property, rights and liabilities.
The Treasury may by order make such provision as they consider necessary or expedient for transitory, transitional or saving purposes in connection with the commencement of any provision made by or under this Act.
An order under subsection (3) may, in particular—
make provision enabling any person by whom any powers will become exercisable, on a date set by or under this Act, by virtue of any provision made by or under this Act to take before that date any steps which are necessary as a preliminary to the exercise of those powers;
make provision treating any relevant instrument which was made, issued or given by the Financial Services Authority under any enactment before section 6 is fully in force and is designated by the FCA, the PRA or the Bank of England (or any two or more of them) in accordance with the order—
as having been made, issued or given by the designating body or bodies;
as having been made, issued or given (or also made, issued or given) under a corresponding provision of this Act or of an enactment as amended by or under this Act;
make provision enabling a body which makes a designation by virtue of paragraph (b) to modify the instrument being designated;
make provision treating anything done before section 6 is fully in force by persons appointed by the Financial Services Authority with the approval of the Treasury as having been done by the FCA;
make provision treating anything done before section 6 is fully in force by persons appointed by the Prudential Regulation Authority Limited with the approval of the Treasury and the Bank of England as having been done by the PRA;
make provision treating any permission given or other thing done by the Financial Services Authority before commencement under an enactment amended by this Act—
as having been made, given or done under a corresponding provision of the enactment as so amended;
as having been made, given or done (or also made, given or done) by the PRA or the Bank of England;
make provision for the continuation of proceedings begun before commencement, including provision about the decisions available to bodies before which such proceedings take place and the effect of their decisions;
make provision for making savings, or additional savings, from the effect of any repeal or revocation made by or under this Act.
An order under subsection (3) may—
confer functions on the Treasury, the FCA or the PRA, or on the Bank of England or its Financial Policy Committee;
modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).
In subsection (4)—
“commencement” means the commencement of such provisions of this Act as may be specified by the order;
“relevant instrument” means rules, guidance, requirements or a code, scheme, statement or direction.
There is to be paid out of money provided by Parliament—
any expenditure incurred under or by virtue of this Act by a Minister of the Crown or government department (apart from any expenditure to be met from the National Loans Fund), and
any increase attributable to this Act in the sums payable under any other Act out of money so provided.
There is to be paid out of the National Loans Fund any increase attributable to this Act in the sums payable under any other Act out of that Fund.
This Act extends to England and Wales, Scotland and Northern Ireland.
The following provisions come into force on the day on which this Act is passed— section 109; sections 115 to 118; section 119(3) to (6); sections 120 and 121; this section; section 123.
Sections 108 and 113 come into force at the end of the period of 2 months beginning with day on which this Act is passed.
The remaining provisions of this Act come into force on such day as the Treasury may by order appoint.
Different days may be appointed for different purposes.
This Act may be cited as the Financial Services Act 2012.
Section 4
This is the Schedule to be inserted in the Bank of England Act 1998 after Schedule 2—
“recognised ... payment system” means a payment system, as defined by section 182 of the Banking Act 2009, that is a recognised system for the purposes of Part 5 of that Act.
In section 4 of the Bank of England Act 1998 (annual report by Bank), in subsection (2), for the “and” at the end of paragraph (a) substitute—.
Paragraph 13 (establishment) is amended as follows. In sub-paragraphs (1) and (1A), for “Authority”, in each place, substitute “ appropriate UK regulator ”. After sub-paragraph (1A) insert— In sub-paragraph (2)— In sub-paragraph (3), for “Authority” substitute “ appropriate UK regulator ”. “the appropriate UK regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the relevant single market directive;
In section 206 of the Water Industry Act 1991 (restriction on disclosure of information), in subsection (3)(e), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England”.
The Judicial Pensions and Retirement Act 1993 is amended as follows. In section 10 (additional benefits from voluntary contributions), in subsection (8), in the definitions of “authorised provider” and “insurer”, for “Part 4” substitute “Part 4A”. In Part 1 of Schedule 2 (transfer of accrued benefits: interpretation), in paragraph 1, in the definition of “authorised insurer”, for “Part 4” substitute “Part 4A”.
The Pension Schemes Act 1993 is amended as follows. In section 149 (procedure on an investigation by the Pensions Ombudsman), in subsection (6)— The Financial Conduct Authority Any of its functions. The Prudential Regulation Authority Any of its functions. In section 180A (insurer and long-term insurance business), in subsection (1)(a), for “Part 4” substitute “Part 4A”. In section 185 (duty to consult before making regulations)—
In Part 2 of Schedule 9 to the Value Added Tax Act 1994 (exemptions: groups), in Group 5 (finance), in Note (6), in the definitions of “closed-ended collective investment undertaking” and “individually recognised overseas scheme”, for “Financial Services Authority” substitute “Financial Conduct Authority”.
In Part 1 of Schedule 1 to the Social Security (Recovery of Benefits) Act 1997 (compensation payments: exempted payments), in paragraph 5(2)(a), for “Part 4” substitute “Part 4A”.
The Terrorism Act 2000 is amended as follows. In Part 2 of Schedule 3A (supervisory authorities), in paragraph 4(1)— In Schedule 6 (financial information), in paragraph 6(1)(a), for “Part 4” substitute “Part 4A”.
Section 29 of the Trustee Act 2000 (remuneration of certain trustees) is amended as follows. In subsection (3)— After that subsection insert—.
In Part 5 of Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (property earmarked as terrorist property), in paragraph 16(6)—
for “Financial Services Authority under” substitute “Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England under or by virtue of”, and
omit “of authority”.
In section 135 of the Nationality, Immigration and Asylum Act 2002 (financial institution to provide information), in subsection (2)(a), for “Part 4” substitute “Part 4A”.
In Schedule 10 to the Health and Social Care (Community Health and Standards) Act 2003 (recovery of NHS charges (exempted payments)), in paragraph 4(2)(a), for “Part 4” substitute “Part 4A”.
In section 35 of the Fire and Rescue Services Act 2004 (provision of information in connection with pensions), in subsection (2)(a), for “section 150” substitute “section 138D”.
In section 23 of the Inquiries Act 2005 (risk of damage to the economy), in subsection (1), for “Financial Services Authority” substitute “Financial Conduct Authority, the Prudential Regulation Authority”.
In section 18 of the Finance (No. 2) Act 2005 (regulations under section 17), in subsection (3)(a), for “Financial Services Authority” substitute “Financial Conduct Authority”.
In section 15 of the Bank of England Act 1998 (publication of minutes of meetings of Monetary Policy Committee) after subsection (4) insert—
Paragraph 14 (services) is amended as follows. In sub-paragraph (1), for “Authority”, in each place, substitute “ appropriate UK regulator ”. After sub-paragraph (1) insert— For sub-paragraph (2) substitute— Omit sub-paragraph (2A). In sub-paragraph (3)— “the appropriate UK regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the relevant single market directive;
In section 40 of the Bank of England Act 1998 (orders), after subsection (4) insert—
Paragraph 15A (application for approval to manage UCITS) is amended as follows. For “Authority” or “Authority's”, in each place, substitute “ appropriate UK regulator ” or “appropriate UK regulator's”. After sub-paragraph (6) insert— “the appropriate UK regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the UCITS directive;
Paragraph 15B (representations and references to the Tribunal) is amended as follows. For “Authority”, in both places, substitute “ appropriate UK regulator ”. After sub-paragraph (3) insert—
In paragraph 15C (information to home state regulator), in sub-paragraph (1), for “Authority” substitute “ appropriate UK regulator, as defined in paragraph 15A(7), ”.
In paragraph 17 (continuing regulation of EEA firms)—
before paragraph (a) insert—, and
in paragraph (c), for “the Authority” substitute “ the FCA or the PRA ”.
In paragraph 18 (giving up right to authorisation), in paragraph (b), for “Part IV permission” substitute “ Part 4A permission ”.
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (other disqualifying offices), at the appropriate place insert— “ Member of the Financial Policy Committee of the Bank of England appointed under section 9B(1)(d) or (e) of the Bank of England Act 1998. ”
Section 5
“PRA-authorised person” has the same meaning as in FSMA 2000;
Schedule 1 to the Bank of England Act 1998 (which makes further provision about the court of directors) is amended as follows. For paragraph 1 substitute— In paragraph 2— Omit paragraph 3. In paragraph 4, for “director” substitute “ non-executive director ”. In paragraph 5— For paragraph 6 substitute— In paragraph 7(2), for “director” substitute “ non-executive director ”. In paragraph 8— In paragraph 11— After paragraph 12 insert— In paragraph 13, after sub-paragraph (3), insert— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In paragraph 15, for “director” substitute “ non-executive director ”. Nothing in sub-paragraphs (2) to (7) affects the term of any appointment made before the commencement of that provision.
In section 4 of the Bank of England Act 1998 (Bank's annual report), in subsection (4)(a), for “directors” substitute “ non-executive directors ”.
In a relevant provision, a reference (however expressed) to the Financial Services Authority is, in relation to any time after the relevant commencement, to be read as a reference to the Financial Conduct Authority, but subject to sub-paragraph (2). If the relevant provision is predicated on the continuing exercise by the Financial Services Authority of a function which has by virtue of this Act become exercisable by the Prudential Regulation Authority or the Bank of England, the reference is to be read as being or as the case requires including a reference to the Prudential Regulation Authority or the Bank. Sub-paragraphs (1) and (2) have effect subject to the provisions of any scheme under paragraph 2 of Schedule 21. In this paragraph “relevant provision” means a provision which—
In relation to the first order under section 9L of the Bank of England Act 1998, subsection (2) of that section (which relates to consultation) does not apply.
In Schedule 7 to the Bank of England Act 1998 (restriction on disclosure of information), in paragraph 1(3)(a), for “servant” substitute “ employee ”.
This paragraph applies where a provision of Part 5 or 6 of this Act, or an amendment of FSMA 2000 made by any provision of this Act, imposes on the FCA, the PRA or the Bank of England, in connection with the making or issuing of any rules or other instrument or document— The requirement may be satisfied— “Public consultation requirement” means a requirement (however expressed) to publish a draft of the instrument or other document with or without other material and to invite representations about it.
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices), in the entry relating to the Bank of England, for “Director” substitute “ non-executive director ”.
The first order under section 22A of FSMA 2000 may, if it imposes on the PRA a public consultation requirement in relation to any statement of policy required by the order to be prepared by the PRA, provide that in relation to the first statement of policy the requirement may be satisfied— “Public consultation requirement” has the same meaning as in paragraph 7.
by things done (wholly or in part) before the commencement of the order or the passing of this Act, and
by things done by the Financial Services Authority or the Bank of England or by both of them.
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (other disqualifying offices), in the entry relating to the Bank of England, for “Director” substitute “ non-executive director ”.
Section 6
These are the Schedules 1ZA and 1ZB to be substituted for Schedule 1 to FSMA 2000—
Section 12
Schedule 4 to FSMA 2000 (Treaty rights) is amended as follows.
Paragraph 3 (exercise of Treaty rights) is amended as follows. In sub-paragraph (2), for “Authority” substitute “ appropriate UK regulator ”. After that sub-paragraph insert—
After paragraph 3 insert—
Paragraph 4 (permission) is amended as follows. In sub-paragraph (3)— In sub-paragraph (4), for “Authority” substitute “ appropriate UK regulator ”. After that sub-paragraph insert—
Paragraph 5 (notice to Authority) is amended as follows. In sub-paragraph (2), for “the Authority” substitute “ the appropriate UK regulator ”. After sub-paragraph (2) insert— For sub-paragraph (4) substitute— In the italic heading immediately before paragraph 5, for “Authority” substitute “ UK regulator ”.
Section 34 of FSMA 2000 (EEA firms) is amended as follows. In subsection (2), for “the Authority” substitute “ the appropriate regulator ”. After that subsection insert— In subsection (3), for “Part IV permission” substitute “ Part 4A permission ”.
Section 35 of FSMA 2000 (Treaty firms) is amended as follows. In subsection (2), for “the Authority” substitute “ the appropriate regulator ”. After that subsection insert— In subsection (3), for “Part IV permission” substitute “ Part 4A permission ”.
Part 13 of FSMA 2000 (incoming firms: intervention by Authority) is amended as follows.
In the heading to Part 13, for “Authority” substitute “ FCA or PRA ”.
In section 193 (interpretation of Part 13), in subsection (1), in the definition of “power of intervention”, for “the Authority” substitute “ the FCA or the PRA ”.
Section 194 (general grounds on which power of intervention is exercisable) is amended as follows. In subsection (1)— After subsection (1A) insert— In subsection (3), for “Authority”, in each place, substitute “ FCA ”.
Section 194A (contravention by relevant EEA firm with UK branch of requirement under markets in financial instruments directive) is amended as follows. For “the Authority” or “the Authority's”, in each place, substitute “ the appropriate regulator ” or “the appropriate regulator's”. After subsection (8) insert— In the heading, for “Authority” substitute “ appropriate regulator ”.
Section 195 (exercise of power in support of overseas regulator) is amended as follows. In subsection (1), for “Authority” substitute “ appropriate regulator ”. In subsection (2), for “Authority's” substitute “appropriate regulator's”. After subsection (2) insert— In subsection (4)— In subsections (5) to (8), for “Authority”, in each place, substitute “ appropriate regulator ”.
Section 195A (contravention by relevant EEA firm or EEA UCITS of directive requirement: home state regulator primarily responsible for securing compliance) is amended as follows. For “the Authority” or “the Authority's”, in each place, substitute “ the appropriate regulator ” or “the appropriate regulator's”. After subsection (11A) insert— “the appropriate regulator” means—
For section 196 substitute—
Section 197 (procedure on exercise of power of intervention) is amended as follows. In subsection (2), for “Authority” substitute “ regulator ”. In subsection (3), for “the Authority” substitute “ a regulator ”. In subsection (4)— In subsections (5) to (7), for “Authority”, in each place, substitute “ regulator ”.
Section 198 (power to apply to court for injunction in respect of certain overseas insurance companies) is amended as follows. In subsections (1) to (3), for “Authority”, in each place, substitute “ appropriate regulator ”. After subsection (3) insert—
Section 199 (additional procedure for EEA firms in certain cases) is amended as follows. In subsection (1), for “the Authority” substitute “ a regulator ”. In subsection (2)(a)(i), for “the Authority” substitute “ that regulator ”. In subsections (3) to (11), for “the Authority” substitute “ the regulator ”. After subsection (11) insert—
Section 199A (management companies: loss of authorisation) is amended as follows. In subsection (2), for “Authority”, in both places, substitute “ appropriate regulator ”. For subsection (4) substitute—
Section 200 (rescission and variation of requirements) is amended as follows. In subsection (1), for “The Authority” substitute “ Either regulator ”. In subsection (2)— In subsections (3) and (4), for “Authority” substitute “ regulator ”. In subsection (5)—
For section 201 substitute—
In section 202 (contravention of requirement imposed under Part 13), in subsection (1), for “the Authority” substitute “ a regulator ”.
Section 15
Part 5 of FSMA 2000 is amended as follows.
Section 58 (applications relating to prohibition orders: procedure and right to refer to Tribunal) is amended as follows. In subsections (2) to (5), for “Authority” substitute “ appropriate regulator ”. After subsection (5) insert—
In section 59 (approval for particular arrangements), omit subsection (9).
Section 60 (applications for approval), for “Authority” or “Authority's”, in each place, substitute “ appropriate regulator ” or “appropriate regulator's”. For subsection (3) substitute— In subsection (6), for “Part IV” substitute “ Part 4A ”. After subsection (6) insert—
Section 61 (determination of applications) is amended as follows. In subsection (1), for “The Authority may grant an application made under section 60” substitute “ The regulator to which an application is made under section 60 may grant the application ”. In subsection (2)— After subsection (2) insert— In subsection (3), for the words from the beginning to “determine” substitute “ The regulator to which an application is made under section 60 must, before the end of the period for consideration, determine ”. After subsection (3) insert— In subsection (4), for “the Authority”, in each place, substitute “ a regulator ”. In subsection (5)—
Section 62 (applications for approval: procedure and right to refer to Tribunal) is amended as follows. In subsection (1), for the words from “If” to “, it” substitute “ If the regulator to which an application is made under section 60 (“an application”) decides to grant the application, it ”. In subsections (2) to (4)—
Section 63 (withdrawal of approval) is amended as follows. In subsection (2)— In subsections (3) to (5)—
In section 63A (performance of controlled functions without approval: power to impose penalties)—
for “Authority”, in each place, substitute “ appropriate regulator ”,
after subsection (5) insert—, and
in subsection (6), after “Any” insert “ other ”.
In section 63B (procedure and right to refer to Tribunal), for “the Authority”, in each place, substitute “ a regulator ”.
Section 63C (statement of policy) is amended as follows. In subsection (1), for “The Authority” substitute “ Each regulator ”. In subsections (2) and (3), for “The Authority's” substitute “Each regulator's”. In subsection (4), for “the Authority” substitute “ the regulator that has issued the statement ”. In subsection (5)— In subsection (6), for “replaced, the Authority” substitute “ replaced by a regulator, the regulator ”. In subsection (7), for “The Authority” substitute “ A regulator ”. In subsection (8)— In subsection (9), for “Authority” substitute “ regulator ”. In subsection (10)—
Section 63D (statement of policy: procedure) is amended as follows. In subsection (1)— In subsections (2), (3), (4) and (5) (in both places), for “Authority” substitute “ regulator ”. In subsection (6)—
Section 64 (conduct of approved persons: statement and codes) is amended as follows. In subsection (2)— In subsection (3)(a) to (c), for “Authority” substitute “ regulator issuing the code ”. In subsection (4)— In subsection (5)— In subsection (6)— In subsection (10), for “The Authority” substitute “ A regulator ”. In subsection (11), for paragraph (b) substitute— In subsection (12)— For subsection (13) substitute—
Section 65 (statements and codes: procedure) is amended as follows. For subsection (1) substitute— In subsection (2)(b), for “the Authority” substitute “ the regulator publishing the draft ”. In subsection (3)— In subsection (4), for “the Authority” substitute “ a regulator ”. In subsection (5)— In subsection (6), for “the Authority” substitute “ the regulator concerned ”. For subsection (7) substitute— In subsection (9)— For subsection (11) substitute—
Section 66 (disciplinary powers) is amended as follows. In subsection (1)— For subsection (2) substitute— In subsection (3), for “Authority” substitute “ regulator ”. In subsection (3D), for “The Authority” substitute “ The regulator taking action under this section ”. In subsection (4)— In subsection (5)(a), for “the Authority” substitute “ a regulator ”. For subsection (6) substitute—
Section 67 (disciplinary measures: procedure and right to refer to Tribunal) is amended as follows. In subsections (1) and (4), for “the Authority” substitute “ a regulator ”. In subsection (7)— In subsection (9)—
In section 68 (publication), for “the Authority” substitute “ the regulator publishing it ”.
Section 69 (statement of policy) is amended as follows. In subsection (1), for “The Authority must” substitute “ Each regulator must ”. In subsection (2), for “The Authority's” substitute “A regulator's”. In subsection (3)— In subsection (4), for “replaced, the Authority” substitute “ replaced by a regulator, the regulator ”. In subsection (5), for “The Authority” substitute “ A regulator ”. In subsection (6)— In subsection (7), for “Authority” substitute “ regulator ”. In subsection (8)—
Section 70 (statements of policy: procedure) is amended as follows. In subsection (1)— In subsections (2), (3), (4) and (5) (in both places), for “Authority” substitute “ regulator ”. In subsection (6)—
Section 22
Part 7 of FSMA 2000 is amended as follows.
Before section 104 insert—
Section 109 (scheme reports) is amended as follows. For “Authority”, in each place, substitute “ appropriate regulator ”. After subsection (3) insert—
Section 110 (right to participate in proceedings) is amended as follows. The existing provision becomes subsection (1). For paragraph (a) of that subsection substitute—. After that subsection insert—
In section 112 (effect of order sanctioning business transfer scheme), in subsections (10) and (11), for “Authority” substitute “ appropriate regulator ”.
After section 112 insert—
Section 113 (appointment of actuary) is amended as follows. In subsection (2)— After that subsection insert—
In section 115 (certificates for purposes of insurance business transfers overseas), for “Authority” substitute “ appropriate regulator ”.
Schedule 12 to FSMA (transfer schemes: certificates) is amended as follows.
In paragraph 1, for “the Authority”, in each place, substitute “ the appropriate regulator ”.
Paragraph 2 is amended as follows. In the following places, for “Authority” substitute “ appropriate regulator ” In sub-paragraph (3), after “transferred” insert “ certification ”. In sub-paragraph (6)(c), for “, the Authority” substitute—
In paragraph 3, for “Authority” substitute “ appropriate regulator ”.
In paragraph 4, for “Authority”, in the first place, substitute “ appropriate regulator ”.
In paragraph 5, for “Authority”, in the first place, substitute “ appropriate regulator ”.
In paragraph 5A, for “the Authority” substitute “ the appropriate regulator ”.
In paragraph 8(2)—
for paragraph (a) substitute—, and
in paragraph (c), after “(a)” insert “ , (aa) ”.
In paragraph 9, for “Authority” substitute “ appropriate regulator ”.
Paragraph 9A is amended as follows. The existing provision becomes sub-paragraph (1). In that sub-paragraph, for “Authority” substitute “ relevant regulator ”. After that sub-paragraph insert—
Paragraph 10 is amended as follows. In sub-paragraph (2), for “Authority” substitute “ FCA or the PRA ”. In sub-paragraph (5), for “Authority” substitute “ regulator which supervises the transferee's margin of solvency ”. In sub-paragraph (6), for “Authority” substitute “ FCA or the PRA ”.
Section 29
This is the Schedule 17A to be inserted in FSMA 2000 after Schedule 17—
Section 35
FSMA 2000 is amended as follows.
Section 286 (qualification for recognition) is amended as follows. In subsection (1)(a), for “the Authority” substitute “ the appropriate regulator ”. In subsections (4A), (4C) and (6), for “the Authority” substitute “ the FCA ”.
Section 287 (application by an investment exchange) is amended as follows. In subsections (1) and (2) for “the Authority”, in each place, substitute “ the FCA ”. In subsection (3)—
Section 288 (application by a clearing house) is amended as follows. In subsection (1), for “the Authority” substitute “ the Bank of England ”. In subsection (2)— In subsection (3)(b), after “clearing services” insert “ or services falling within section 285(3)(b) ”.
In section 289 (applications: supplementary), in subsections (1), (2) (in both places) and (3), for “the Authority” substitute “ the appropriate regulator ”.
Section 290 (recognition orders) is amended as follows. In subsection (1)— In subsection (1B), for “the Authority” substitute “ the FCA ”. Omit subsection (2). In subsection (3), for “the Authority” substitute “ the appropriate regulator ”. Omit subsection (6).
Section 290A (refusal of recognition on ground of excessive regulatory provision) is amended as follows. In subsection (1)— In subsection (3), for “Authority” substitute “ appropriate regulator ”.
In section 292 (overseas investment exchanges and overseas clearing house), in subsections (2), (3)(c) and (d), (4) and (5)(c), for “the Authority” substitute “ the appropriate regulator ”.
In section 292A (publication of information by recognised investment exchange), in subsections (1), (3), (5) and (6), for “Authority” substitute “ FCA ”.
Section 293 (notification requirements) is amended as follows. In subsections (1) to (3) and (5), for “Authority” substitute “ appropriate regulator ”. In subsection (6)— In subsection (7)— In subsection (9), for “the Authority's” substitute “the appropriate regulator's”.
For section 293A substitute—
In section 294 (modification or waiver of rules), in subsections (1), (2), (4) and (6), for “Authority” substitute “ appropriate regulator ”.
Section 295 (notification: overseas investment exchanges and overseas clearing houses) is amended as follows. In subsection (1), for “the Authority” substitute “ the appropriate regulator ”. In subsection (2), for the words from “likely” to the end substitute “ likely to affect the appropriate regulator's assessment of whether it is satisfied as to the requirements set out in section 292(3) ”. In subsection (3), for “the Authority” substitute “ the appropriate regulator ”. Omit subsection (4).
Section 296 (power to give directions) is amended as follows. In subsection (1), for “the Authority” substitute “ the appropriate regulator ”. In subsection (1A)— In subsection (2), for “The Authority” substitute “ The regulator concerned ”. In subsection (2A)— In subsection (3), for “the Authority” substitute “ the regulator concerned ”. In subsection (4), for “the Authority” substitute “ an appropriate regulator ”. In the heading, for “Authority's” substitute “Appropriate regulator's”.
Section 297 (revoking recognition) is amended as follows. In subsections (1) and (2), for “the Authority” substitute “ the appropriate regulator ”. In subsection (2A)— In subsection (2C), at the end insert “ or overseas clearing house ”. In subsections (5) and (6), for “the Authority” substitute “ the appropriate regulator ”.
In section 298 (directions and revocation: procedure)—
in subsections (1), (6) and (7), after “section 296” insert “ or 296A ”, and
in subsections (1), (2)(a), (3), (5), (6), (7) (in both places) and (8), for “the Authority” substitute “ the appropriate regulator ”.
In section 299 (complaints about recognised bodies), in subsections (1) and (2), for “Authority” substitute “ appropriate regulator ”.
In section 300A (power to disallow excessive regulatory provision)—
in subsection (1), for the words from “with” to the end substitutewith— , and
in subsections (2) (in both places) and (4), and in the heading, for “Authority” substitute “ appropriate regulator ”.
In section 300B (duty to notify proposal to make regulatory provision) for “Authority” (in each place) substitute “ appropriate regulator ”.
In section 300C (restriction on making provision before Authority decides whether to act), in subsections (1), (2)(a), (3) (in both places), (4)(a) and (b), and in the heading, for “Authority” substitute “ appropriate regulator ”.
Section 300D (consideration by Authority whether to disallow proposed provision) is amended as follows. In subsections (1) to (4) and (5)(a) and (b), for “Authority” substitute “ appropriate regulator ”. In subsection (6)— In the heading, for “Authority” substitute “ appropriate regulator ”.
Section 301 (supervision of certain contracts) is amended as follows. In subsection (2), for “the Authority” substitute “ the Bank of England ”. In subsection (3)— In subsections (4)(a), (6)(a), (7) and (9), for “Authority” substitute “ Bank of England ”.
In section 301A (obligation to notify the Authority: acquisitions of control), in subsections (1) and (2), and in the heading, for “the Authority” substitute “ the FCA ”.
In section 301B (requirements for s.301A notices), in subsections (1) to (3), for “Authority” substitute “ FCA ”.
In section 301C (acknowledgement of receipt), in subsections (1) and (2), for “Authority” substitute “ FCA ”.
In section 301F (assessment: general), in subsections (1) to (3), for “Authority” substitute “ FCA ”.
Section 301G (assessment: procedure) is amended as follows. In subsections (1) (in both places) and (2) to (5), for “Authority” substitute “ FCA ”. In subsection (6), for “the Authority's” substitute “the FCA's”.
In section 301H (duration of approval), in subsections (1), (2) and (3) (in both places), for “the Authority” substitute “ the FCA ”.
In section 301I (objections by the Authority), in subsections (1) to (5), and in the heading, for “Authority” substitute “ FCA ”.
In section 301J (restriction notices), in subsections (1), (2)(b), (3) and (7), for “Authority” substitute “ FCA ”.
In section 301K (order for sale of shares), in subsection (1), for “the Authority” substitute “ the FCA ”.
Section 301L (offences under Chapter) is amended as follows. In subsections (1) and (2) (in both places), for “the Authority” substitute “ the FCA ”. In subsection (4), for “the Authority's” substitute “the FCA's”. In subsections (5) and (9), for “the Authority” substitute “ the FCA ”.
In section 312A (exercise of passport rights by EEA market operator), in subsection (1)(b), for “the Authority” substitute “ the FCA ”.
In section 312B (removal of passport rights from EEA market operator), in subsections (1) (in each place), (3), (4)(b), (5), (6), (7)(a) and (b), (8)(b), (9) to (11), (12) (in both places) and (13) (in the first place), for “Authority” substitute “ FCA ”.
In section 312C (exercise of passport rights by recognised investment exchange), in subsections (2) to (6), for “Authority” substitute “ FCA ”.
Section 313 (interpretation) is amended as follows. In subsection (1)— In subsection (4), after “clearing services” insert “ or services falling within section 285(3)(b) ”.
In section 392 (warning and decisions notices: application of provisions relating to third party rights and access to evidence)—
in paragraph (a), after “section 280(1),” insert “ section 312G(1), ”, and
in paragraph (b), after “section 280(2),” insert “ section 312H(1), ”.
In section 412A (approval and monitoring of trade-matching and reporting systems), in subsections (1), (2), (4), (5) (in both places), (6) (in both places) and (7), for “Authority” substitute “ FCA ”.
In section 412B (procedure for approval and suspension or withdrawal of approval), in subsections (1) to (6), (7) (in both places), (8) and (9), for “Authority” substitute “ FCA ”.
Section 37
FSMA 2000 is amended as follows.
Section 20 (authorised persons acting without permission) is amended as follows. In subsection (1)— After that subsection insert— For subsection (2) substitute— In subsection (3), for “the contravention”, in the first place, substitute “ a contravention within subsection (1) or (1A) ”. After subsection (3) insert—
Section 23 (contravention of the general prohibition) is amended as follows. After subsection (1) insert— After subsection (3) insert— In the heading to the section, at the end insert “ or section 20(1) or (1A) ”.
After section 23 insert—
After section 26 insert—
In section 27 (agreements made through unauthorised persons) for subsection (1) substitute—
In section 28 (agreements made unenforceable by section 26 or 27)—
at the end of subsection (1) insert “ , other than an agreement entered into in the course of carrying on a credit-related regulated activity ”, and
in the heading to the section, at the end insert “ : general cases ”.
After section 28 insert—
In the provisions of Part 8 (market abuse) mentioned in sub-paragraph (2), for “Authority” or “Authority's”, in each place, substitute “ FCA ” or “FCA's”. The provisions are: sections 119, 120 (including the heading), 121 to 130A and 131A. In section 121 (codes: procedure), for subsection (10) substitute— In section 130 (guidance), in subsection (1)(b), for “section 397 of this Act” substitute “ Part 7 of the Financial Services Act 2012 ”.
In Part 14 (disciplinary measures), before section 205 insert—
In section 205 (public censure)—
for “Authority”, in the first place, substitute “ appropriate regulator ”, and
for the words from “a requirement” to “may” substitute “ a relevant requirement imposed on the person, it may ”.
Section 206 (financial penalties) is amended as follows. In subsection (1)— In subsection (3), for “Authority” substitute “ regulator that imposed the penalty ”.
Section 206A (suspending permission to carry on regulated activities etc.) is amended as follows. In subsection (1), for “Authority” substitute “ appropriate regulator ”. After that subsection insert— In subsection (2)— In subsection (6), for “Authority” substitute “ appropriate regulator ”.
In section 207(1) (proposal to take disciplinary measures), for “the Authority” substitute “ a regulator ”.
In section 208(1) and (4) (decision notice), for “the Authority”, in each place, substitute “ a regulator ”.
In section 209 (publication), for “the Authority” substitute “ the regulator concerned ”.
Section 210 (statements of policy) is amended as follows. In subsection (1), for “The Authority” substitute “ Each regulator ”. After subsection (1) insert— In subsection (2), for “The Authority's” substitute “A regulator's”. In subsection (3)— In subsection (4), for “replaced, the Authority” substitute “ replaced by a regulator, the regulator ”. In subsection (5), for “The Authority” substitute “ A regulator ”. In subsection (6)— In subsection (7)— In subsection (8), for “Authority” substitute “ regulator ”.
Section 211 (statements of policy: procedure) is amended as follows. In subsection (1)— In subsections (2) to (4) and (5) (in both places), for “Authority” substitute “ regulator ”. In subsection (6), for “The Authority” substitute “ A regulator ”.
Section 380 (injunctions) is amended as follows. In subsections (1) to (3), for “Authority” substitute “ appropriate regulator ”. In subsection (6)(a)— In subsection (7), omit paragraph (a) (and the “and” at the end of it). After subsection (7) insert—
Section 381 (injunctions in case of market abuse) is amended as follows. In subsections (1) to (3), for “Authority” substitute “ FCA ”. In subsection (4), after “The court” insert “ may ”.
Section 382 (restitution orders) is amended as follows. In subsection (1), for “Authority” substitute “ appropriate regulator ”. In subsections (2) and (3), for “Authority” substitute “ regulator concerned ”. In subsection (7), for “Authority” substitute “ appropriate regulator ”. In subsection (9)(a)— In subsection (10), omit paragraph (a) (and the “and” at the end of it). After subsection (10) insert—
In section 383(1), (4), (5) and (9) (restitution orders in case of market abuse), for “ Authority” substitute “ FCA ”.
Section 384 (power of Authority to require restitution) is amended as follows. In subsection (1)— In subsections (2) and (4), for “Authority” substitute “ FCA ”. In subsection (5)— In subsection (6), for “Authority” substitute “ regulator concerned ”. In subsection (7)— Omit subsection (8). After subsection (8) insert— In the heading, for “Authority” substitute “ FCA or PRA ”. In the italic heading before section 384, for “Authority” substitute “ FCA or PRA ”.
Section 385 (warning notices) is amended as follows. In subsection (1), for “the Authority” substitute “ a regulator ”. In subsection (2), for “the Authority” substitute “ the regulator ”.
In section 386(1) and (3) (decision notices), for “Authority” substitute “ regulator ”.
Section 387 (warning notices) is amended as follows. In subsection (1)(a), for “Authority” substitute “ regulator giving the notice (“the regulator concerned”) ”. After subsection (1) insert— In subsection (2)— In subsection (3), for “The Authority” substitute “ The regulator concerned ”. After subsection (3) insert— In subsection (4), for “The Authority” substitute “ The regulator concerned ”.
Section 388 (decision notices) is amended as follows. In subsection (1)(b), for “the Authority's reasons” substitute “ the reasons of the regulator giving the notice (“the regulator concerned”) ”. After subsection (1) insert— In subsections (3) and (4), for “The Authority” substitute “ The regulator concerned ”.
In section 389(1) (notices of discontinuance)—
for “the Authority” substitute “ a regulator ”, and
in paragraphs (a) and (b), after “notice” insert “ given by it ”.
Section 390 (final notices) is amended as follows. In subsection (1)— In subsection (2)— After that subsection insert—. In subsections (9) and (10), for “the Authority” substitute “ the regulator giving the notice ”.
Section 391 (publication) is amended as follows. For subsection (1) substitute— In subsections (1A), (2) and (3), for “Authority” substitute “ regulator giving the notice ”. In subsection (4)— In subsection (5), for “Authority” substitute “ regulator giving the notice ”. For subsection (6) substitute— In subsection (7), for “Authority” substitute “ regulator ”. In subsection (7A), for “the Authority” substitute “ a regulator ”.
Section 392 (application of sections 393 and 394) is amended as follows. In paragraph (a)— In paragraph (b)—
Section 393 (third party rights) is amended as follows. In subsections (1)(b) and (2), for “Authority” substitute “ regulator giving the notice ”. In subsection (3)— In subsections (4)(b), (6), (7), (9)(b) and (11)(b), for “the Authority” substitute “ the regulator giving the notice ”. In subsection (12), for “which the Authority must disclose” substitute “ to which access must be given ”.
Section 394 (access to Authority material) is amended as follows. In subsection (1)— In subsection (2), for “the Authority”, in both places, substitute “ the regulator giving the notice ”. In subsection (3), for “The Authority” substitute “ The regulator giving the notice ”. In subsection (4)— In subsection (5), for “the Authority” substitute “ the regulator giving the notice ”. In subsection (6)— In the heading, for “Authority” substitute “ FCA or PRA ”.
Section 395 (the Authority's procedures) is amended as follows. For subsection (1) substitute— In subsection (2), omit the words from “, that the decision” to the end and insertthat— In subsection (3), for the words from “taken” to the end substitutetaken otherwise than as mentioned in subsection (2) if the person taking the decision is of a level of seniority laid down by the procedure and— In subsection (5)— In subsection (6)— In subsection (7), for “The Authority” substitute “ The regulator issuing the statement ”. In subsection (8)— In subsection (9)— After subsection (9) insert— In subsection (10)— In subsection (11), for “The Authority's” substitute “A regulator's”. In subsection (13), for paragraph (a) substitute—. In the heading, for “Authority's” substitute “FCA's and PRA's”. In the italic heading before that section, for “Authority's” substitute “FCA's and PRA's”.
Section 396 (statements under s.395: consultation) is amended as follows. In subsection (1)— In subsection (2), for “Authority” substitute “ regulator publishing the draft ”. In subsection (3), for “Before issuing the proposed statement of procedure, the Authority” substitute “ Before a regulator issues the proposed statement of its procedure, it ”. In subsection (4), for “Authority issues the proposed statement of procedure” substitute “ regulator issues the proposed statement of its procedure, ”. In subsection (5)— In subsection (6)—
Section 398 (misleading the Authority: residual cases) is amended as follows. In subsection (1), for “the Authority” substitute “ a regulator ”. In the heading, for “the Authority” substitute “ FCA or PRA ”.
In section 400 (offences by a body corporate etc) after subsection (6) insert—
Section 401 (proceedings for offences) is amended as follows. For subsection (1) substitute— In subsections (2)(a) and (3)(a), for “Authority” substitute “ appropriate regulator ”. After subsection (3) insert— In subsection (5), for “Authority” substitute “ appropriate regulator ”.
Section 402 (power of the Authority to institute proceedings for certain other offences) is amended as follows. In subsections (1) and (2), for “Authority” substitute “ FCA ”. In the heading, for “the Authority” substitute “ FCA ”.
In section 403 (jurisdiction and procedure in respect of offences), in subsection (7), at the end insert “ or an offence under Part 7 of the Financial Services Act 2012 (offences relating to financial services) ”.
After section 415A insert—
Section 38
Part 15 of FSMA 2000 (the Financial Services Compensation Scheme) is amended as follows.
Section 212 (the scheme manager) is amended as follows. For subsections (1) and (2) substitute— In subsections (4) and (5) for “Authority” substitute “ regulators ”. In subsection (7), omit “board members,”.
Section 213 (the compensation scheme) is amended as follows. In each place, for “Authority” substitute “ regulators ”. In subsection (1)— After subsection (1) insert— In subsection (2), after “rules” insert “ (taken together) ”. In subsection (9)(a), after “against him” insert “ , or against a successor falling within subsection (1)(b), ”.
In section 214 (general provisions of the scheme), in subsection (1), after paragraph (a) insert—.
In section 215 (rights of the scheme in insolvency), for “Authority”, in each place, substitute “ regulators ”.
In section 217 (insurers in financial difficulties), in subsection (5), for “Authority” substitute “ either regulator or both regulators ”.
After section 217 insert—
For the italic heading before section 218 substitute “ Annual plan and report ”.
Before section 218 insert—
Section 218 (annual report) is amended as follows. In subsections (1) and (2)(b), for “Authority” substitute “ regulators ”. At the end insert—
After section 218 insert—
Section 218A (power to require information) is amended as follows. In subsection (1)— In subsections (2) and (4), for “Authority” substitute “ regulator ”. In subsection (5), for “Authority's” substitute “regulator's”. In the heading, for “Authority's” substitute “Regulators'”.
In section 221 (powers of court), in subsection (2), after “director or” insert “ other ”.
In section 222 (statutory immunity), in subsection (1), omit “board member,”.
In section 224 (scheme manager's power to inspect documents), in subsection (1), after “relevant person,” insert “ or a successor falling within section 213(1)(b), ”.
Section 39
In section 226 (compulsory jurisdiction), in subsection (3)(a), for “Authority” substitute “ FCA ”.
In section 226A (consumer credit jurisdiction), in subsection (7), for “Authority” substitute “ FCA ”.
In section 227 (voluntary jurisdiction), in subsection (6), for “Authority's” substitute “FCA's”.
Section 228 (determination under the compulsory and consumer credit jurisdiction) is amended as follows. In subsection (4), in paragraph (c), omit “in writing”. After subsection (6) insert— After subsection (7) insert—
In section 229 (awards), in subsection (4), for “Authority” substitute “ FCA ”.
In section 230 (costs), in subsection (2), for “Authority” substitute “ FCA ”.
After section 230 insert—
In section 232 (powers of court), in subsection (2), after “director or” insert “ other ”.
After section 232 insert—
In section 234 (industry funding), in subsection (1), for “Authority” substitute “ FCA ”.
In section 234A (funding by consumer credit licensees), in subsection (1), for “Authority” substitute “ FCA ”.
After section 234A insert—
Schedule 17 (the ombudsman scheme) is amended as follows.
For paragraph 2 (and the italic heading before it) substitute—
In paragraph 3 (constitution)—
for “Authority”, in each place, substitute “ FCA ”, and
in sub-paragraph (4), after “9” insert “ , 9A ”.
After paragraph 3 insert—
In paragraph 6 (status), in sub-paragraph (2), omit “board members,”.
In paragraph 7 (annual reports)—
for “Authority”, in each place, substitute “ FCA ”, and
at the end insert—
After paragraph 7 insert—
For the italic heading before paragraph 8 substitute “ Information, advice and guidance ”.
In paragraph 8 (guidance), for “guidance consisting of such information and advice” substitute “ such information, guidance or advice ”.
In paragraph 9 (budget), for “Authority”, in each place, substitute “ FCA ”.
After paragraph 9 insert—
In paragraph 13 (procedural rules)—
for “Authority”, in each place, substitute “ FCA ”,
for “Authority's”, in each place, (including the italic heading), substitute “FCA's”, and
in sub-paragraph (4)(b), for “Part X” substitute “ Part 9A ”.
In paragraph 14 (scheme operator's rules)—
in sub-paragraph (2), after paragraph (f) insert—
in sub-paragraph (7), for “Authority” substitute “ FCA ”.
In paragraph 16B (procedure for complaints etc), in sub-paragraph (1), after paragraph (d) insert—
In paragraph 16E (consumer credit rules), for “Authority”, in each place, substitute “ FCA ”.
In paragraph 18 (terms of reference), for “Authority”, in each place, substitute “ FCA ”.
In paragraph 19 (delegation), in sub-paragraph (3), for “Authority” substitute “ FCA ”.
In paragraph 20 (voluntary jurisdiction rules: procedure), for “Authority”, in each place, substitute “ FCA ”.
Section 41
Section 165 (power to require information) is amended as follows. In subsection (1), for “The Authority” substitute “ Either regulator ”. In subsection (3), for “Authority” substitute “ regulator ”. In subsection (4), for “the Authority” substitute “ either regulator ”. In subsections (5) and (6) for “The Authority”, in each place, substitute “ The regulator in question ”. In subsection (7), for the words from “exercised” to the end substituteexercised— . In subsection (9)— In subsection (11)— In the heading, for “Authority's” substitute “Regulators'”.
In section 165A (power to require information relevant to financial stability)—
for “Authority”, in each place, substitute “ PRA ”, and
in the heading, for “Authority's” substitute “PRA's”.
In section 165B (safeguards relating to section 165A)—
for “Authority”, in each place, substitute “ PRA ”, and
for “Authority's”, in each place, substitute “PRA's”.
In section 165C (orders under section 165A(2)(d)) for subsection (1) substitute—
For section 166 (reports by skilled persons) substitute—
After section 166 insert—
Section 167 (appointment of investigator in general cases) is amended as follows. In subsection (1), for “the Authority or the Secretary of State (“the investigating authority”)” substitute “ an investigating authority ”. After subsection (5) insert—
Section 168 (appointment of investigator in specific cases) is amended as follows. In subsection (1)— In subsection (2)— In subsection (4)— In subsection (5), for “Authority” substitute “ investigating authority ”. For subsection (6) substitute—
Section 169 (investigations at the request of an overseas regulator) is amended as follows. In subsection (1), for “the Authority” substitute “ a regulator ”. In subsections (3) and (4), in each place, for “Authority” substitute “ regulator ”. In subsection (5), in each place, for “Authority” substitute “ regulator ”. In subsection (6), for “Authority” substitute “ regulator ”. In subsection (7), for “the Authority” substitute “ a regulator ”. In subsection (8), for “Authority” substitute “ regulator ”. In subsection (9), for “The Authority” substitute “ Each regulator ”. In subsection (11), for “Authority” substitute “ regulator ”.
In section 169A (supporting an overseas regulator regarding financial stability), in subsection (1), for “Authority” substitute “ PRA ”.
In section 170 (investigations: general), in subsection (10), for paragraphs (a) and (b) substitute—
In section 174 (admissibility of statements to investigators), in subsection (2), for “the Authority” substitute “ a regulator ”.
Section 175 (information and documents: supplemental) is amended as follows. In subsection (1), for “the Authority” substitute “ either regulator ”. After subsection (2) insert— In subsection (3), for “Authority” substitute “ regulator ”.
Section 176 (entry of premises under warrant) is amended as follows. In subsection (1), for “the Authority” substitute “ either regulator ”. After subsection (5) insert— In subsection (6), for “16” substitute “ 16(3) to (12) ”. In subsection (7), for “18” substitute “ 18(3) to (12) ”. Omit subsection (8). In subsection (11), in paragraph (a), for “the Authority” substitute “ a regulator ”.
After section 176 insert—
Section 347 (record of authorised persons) is amended as follows. In subsections (1) to (6), for “Authority”, in each place, substitute “ FCA ”. Omit subsection (1)(f). In subsection (2), in paragraph (e)— In subsection (8), for “Authority” substitute “ FCA or the PRA ”.
After section 347 insert—
Section 348 (restrictions on disclosure of information) is amended as follows. In subsection (2)(b)— In subsection (5)— In subsection (6)— In the heading for “Authority” substitute “ FCA, PRA ”.
Section 349 (exceptions from section 348) is amended as follows. In subsection (2)(c), for “Authority” substitute “ FCA or the PRA ”. In subsection (3A)(a), for “Authority” substitute “ FCA or the PRA ”. In subsection (3B)(c), for “Authority's functions” substitute “ functions of the FCA or the PRA ”.
Section 350 (disclosure of information by HMRC) is amended as follows. For subsection (1) substitute— In subsection (4), for “subsection (1)” substitute “ subsection (1)(b) ”.
Omit section 351 (competition information).
In section 351A (disclosure under the UCITS directive), in subsection (1), for “the Authority” substitute “ the FCA or the PRA ”.
In section 353 (removal of other restrictions on disclosure), in subsection (1)(b)—
for “Authority”, in the first place, substitute “ FCA or the PRA ”, and
for “Authority”, in the second place, substitute “ either of them ”.
After section 353 insert—
For section 354 substitute—
Section 42
FSMA 2000 is amended as follows.
In Part 22 (auditors and actuaries), before section 340 (and the italic heading immediately before it) insert—
Section 340 (appointment) is amended as follows. In subsection (1), for “Rules may require” substitute “ The appropriate regulator may make rules requiring ”. In subsection (2), for “Rules may require” substitute “ The appropriate regulator may make rules requiring ”. For subsection (3) substitute— In subsection (4), for “Authority”, in each place, substitute “ regulator making the rules ”. In subsection (5), for “(3)” substitute “ (3A) or (3B) ”. After subsection (5) insert— In subsection (6), for “(3)” substitute “ (3B) ”. After subsection (7) insert—
Section 342 (information given by auditor or actuary) is amended as follows. In subsection (1), after “authorised person” insert “ or recognised investment exchange, ”. In subsection (3)— In subsection (4), for “Authority” substitute “ regulator ”. In subsection (7), after “authorised person” insert “ or recognised investment exchange ”. For “the Authority”, in each other place (including the heading), substitute “ a regulator ”.
Section 343 (information given by auditor or actuary: persons with close links) is amended as follows. In subsection (1)— In subsection (3)— In subsection (4), for “Authority” substitute “ regulator ”. in subsection (7), after “authorised person” insert “ or recognised investment exchange ”. In subsection (8), after “authorised person” insert “ or recognised investment exchange ”. For “the Authority”, in each other place (including the heading), substitute “ a regulator ”.
Section 344 (duty of auditor or actuary resigning to give notice) is amended as follows. In each place for “Authority” substitute “ appropriate regulator ”. In subsection (2)(a), after “authorised person” insert “ or recognised investment exchange ”. In subsection (3)(a), for “Authority's” substitute “regulator's”. After subsection (3) insert—
For section 345 (disqualification of auditor or actuary) and the italic heading before it substitute—
Section 392 (application of sections 393 and 394) is amended as follows. In paragraph (a), for “345(2) (whether as a result of subsection (1) of that section” substitute “ 345B(1) (whether as a result of section 345(2), 345A(3) ”. In paragraph (b), for “345(3) (whether as a result of subsection (1) of that section” substitute “ 345B(4) (whether as a result of section 345(2), 345A(3) ”.
Section 44
Part 24 of FSMA 2000 is amended as follows.
“PRA-regulated person” means a person who—
Section 356 (powers to participate in proceedings: company voluntary arrangements) is amended as follows. In subsections (1) and (2), for “the Authority” substitute “ or recognised investment exchange, the appropriate regulator ”. In subsection (3)— After subsection (3) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
Section 357 (powers to participate in proceedings: individual voluntary arrangements) is amended as follows. In subsections (1) to (5), for “Authority” substitute “ appropriate regulator ”. In subsection (6)— After subsection (6) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
Section 358 (powers to participate in proceedings: trust deeds for creditors in Scotland) is amended as follows. In subsections (1), (2) and (6), after “authorised person” insert “ or recognised investment exchange ”. In subsections (2) to (4), for “Authority” substitute “ appropriate regulator ”. In subsection (5)— In subsection (6), for “the Authority” substitute “ a regulator ”. After subsection (6) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
Section 359 (administration order) is amended as follows. In subsection (1)— After subsection (1) insert— In subsection (2), for “the Authority” substitute “ a regulator ”. In subsection (4), in the definition of “authorised deposit taker”, for “Part IV”, in both places, substitute “ Part 4A ”.
Section 361 (administrator's duty to report) is amended as follows. For subsection (2) substitute— After subsection (2) insert— For subsection (3) substitute— In the heading, for “Authority” substitute “ FCA and PRA ”.
Section 362 (powers to participate in proceedings: administration orders) is amended as follows. In subsection (1)— After subsection (1A) insert— In subsections (2) to (6), for “Authority” substitute “ appropriate regulator ”. After subsection (6) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
Section 362A (administrator appointed by company or directors) is amended as follows. In subsection (1), after “company” insert “ or partnership ”. For subsection (2) substitute—
Section 363 (powers to participate in proceedings: receivership) is amended as follows. In subsection (1)(a), after “authorised person” insert “ or recognised investment exchange ”. In subsections (2) to (5), for “Authority” substitute “ appropriate regulator ”. After subsection (5) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
In section 364 (receiver's duty to report to Authority)—
in paragraph (b), after “prohibition” insert “ or a credit-related regulated activity in contravention of section 20 ”,
for “to the Authority without delay” substitute “ without delay to the FCA and, if the regulated activity concerned is a PRA-regulated activity, to the PRA ”, and
in the heading, for “Authority” substitute “ FCA and PRA ”.
Section 365 (powers to participate in proceedings: voluntary winding up) is amended as follows. In subsection (1)(b), after “authorised person” insert “ or recognised investment exchange ”. In subsections (2) to (7), for “Authority” substitute “ appropriate regulator ”. After subsection (7) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
Section 366 (insurers effecting or carrying out long-term contracts of insurance) is amended as follows. In subsections (1), (2) and (5), for “Authority” substitute “ PRA ”. At the end insert—
Section 367 (winding-up petitions) is amended as follows. In subsection (1)— After that subsection insert— In subsection (2), for “subsection (1)” substitute “ subsections (1) and (1A) ”. In subsection (6), after “(1)” insert “ or (1A) ”.
Section 368 (winding-up petitions: EEA and Treaty firms) is amended as follows. The existing provision becomes subsection (1). In that subsection— After that subsection insert—
Section 369 (insurers: service of petition etc. on Authority) is amended as follows. In subsection (1)— In subsection (2)— After that subsection insert— In the heading, for “Authority” substitute “ FCA and PRA ”.
Section 369A (reclaim funds: service of petition etc. on Authority) is amended as follows. In subsection (1)— In subsection (2)— After subsection (3) insert— In the heading, for “Authority” substitute “ FCA and PRA ”.
For section 370 substitute—
Section 371 (power to participate in proceedings: winding up by the court) is amended as follows. In subsection (1)— In subsections (2) to (5), for “Authority” substitute “ appropriate regulator ”. After subsection (5) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA and PRA ”.
Section 372 (bankruptcy petitions) is amended as follows. In subsection (1), for “Authority” substitute “ FCA ”. After that subsection insert— In subsection (2), for “such a petition may be presented” substitute “ a petition may be presented by virtue of subsection (1) or (1A) ”. In subsection (4)(a)— In subsection (6)—
Section 373 (insolvency practitioner's duty to report to Authority) is amended as follows. In subsection (1)— After that subsection insert— In the heading, for “to Authority” substitute “ to FCA and PRA ”.
Section 374 (Authority's powers to participate in proceedings: bankruptcy) is amended as follows. In subsection (1), omit “other than the Authority”. In subsections (2) to (4), for “Authority” substitute “ appropriate regulator ”. After subsection (6) insert— In the heading, for “Authority's powers” substitute “ Powers of FCA or PRA ”.
Section 375 (Authority's right to apply for an order relating to debt avoidance) is amended as follows. In subsection (1), for “Authority” substitute “ FCA ”. After subsection (1) insert— In subsection (2), after “subsection (1)(b)” insert “ or subsection (1A)(b) (as the case may be) ”. In the heading, for “Authority's right” substitute “ Right of FCA and PRA ”.
Section 376 (continuation of contracts of long-term insurance where insurer in liquidation) is amended as follows. In subsection (11)(c), for “Authority” substitute “ PRA ”. After subsection (11) insert—
Section 45
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for “Authority”, in each place, substitute “FCA”, and
in sub-paragraph (6), after paragraph (d) insert—.
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for “Authority”, in each place, substitute “FCA”, and
The Treasury may— Compliance with any requirement under sub-paragraph (5)(a) or (b) is enforceable by injunction or, in Scotland, an order for specific performance under section 45 of the Court of Session Act 1988. Proceedings under sub-paragraph (6) may be brought only by the Treasury.
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Section 46
In section 325 (general duty)—
for “Authority”, in each place, substitute “ FCA ”, and
in the heading, for “Authority's” substitute “FCA's”.
In section 328 (directions relating to the general prohibition), for “Authority”, in each place, substitute “ FCA ”.
In section 329 (orders relating to the general prohibition), for “Authority”, in each place, substitute “ FCA ”.
In section 330 (consultation)—
for “Authority”, in each place, substitute “ FCA ”, and
for subsection (10) substitute—
In section 331 (procedure for making orders), for “Authority”, in each place, substitute “ FCA ”.
In section 332 (rules relating to persons to whom the general prohibition does not apply), for “Authority”, in each place, substitute “ FCA ”.
Section 106
Part 1 of the Banking Act 2009 is amended as follows.
Section 1 (overview) is amended as follows. In subsection (5), for paragraph (c) and the “and” before it, substitute— Section 83A Banks not regulated by the PRA
In section 2 (interpretation: “bank”), for “Part 4” substitute “ Part 4A ”.
“the PRA” means the Prudential Regulation Authority, “the FCA” means the Financial Conduct Authority, and
In section 4 (special resolution objectives), in subsection (3), for paragraph (b) and the “and” following it, substitute—.
In section 5 (code of practice), in subsection (5), for paragraph (b) and the “and” following it, substitute—.
Section 6 (code of practice: procedure) is amended as follows. Omit subsections (1) and (2). For subsection (4) substitute—
Section 7 (general conditions) is amended as follows. In subsection (1), for “FSA” substitute “ PRA ”. In subsection (2), omit the words from “(within” to the end. In subsection (4), for “FSA” substitute “ PRA ”. After that subsection insert— In subsection (5)—
In section 8 (specific conditions: private sector purchaser and bridge bank), in subsection (3), for paragraph (a) and the “and” following it, substitute—.
In section 9 (specific conditions: temporary public ownership), in subsection (4), for paragraph (a) and the “and” following it, substitute—.
In section 10 (Banking Liaison Panel), in subsection (3), for paragraph (c) substitute—.
In section 24 (procedure: instruments), in subsection (1), for paragraph (c) and the “and” following it, substitute—.
In section 25 (procedure: orders), in subsection (2), for paragraph (c) and the “and” following it, substitute—.
In section 26 (supplemental instruments), in subsection (5), for paragraph (a) and the “and” following it, substitute—.
In section 27 (supplemental orders), in subsection (5), for paragraph (a) and the “and” following it, substitute—.
In section 28 (onward transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—.
In section 29 (reverse share transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—.
In section 30 (bridge bank: share transfers), in subsection (5), for paragraph (a) and the “and” following it, substitute—.
In section 31 (bridge bank: reverse share transfer), in subsection (5), for paragraph (a) and the “and” following it, substitute—.
In section 41 (procedure), in subsection (1), for paragraph (c) and the “and” following it, substitute—.
In section 42 (supplemental instruments), in subsection (5), for paragraph (a) and the “and” following it, substitute—.
In section 43 (onward transfer), in subsection (7), for paragraph (a) and the “and” following it, substitute—.
In section 44 (reverse property transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—.
In section 45 (temporary public ownership: property transfer), in subsection (8), for paragraph (a) and the “and” following it, substitute—.
In section 46 (temporary public ownership: reverse property transfer), in subsection (7), for paragraph (a) and the “and” following it, substitute—.
In section 57 (valuation principles), in subsection (4)(a), for “Part 4” substitute “ Part 4A ”.
Section 82 (temporary public ownership) is amended as follows. In subsection (2), for “the FSA are” substitute “ the PRA is ”. In subsection (5), for paragraph (a) and the “and” following it, substitute—.
After section 83 insert—
Part 2 of the Banking Act 2009 is amended as follows.
In section 91 (interpretation: “bank”), for “Part 4” substitute “ Part 4A ”.
In section 93 (interpretation: other expressions), for subsection (1) substitute—
In section 95 (application), in subsection (1)(b), for “FSA” substitute “ PRA ”.
In section 96 (grounds for applying), for “FSA”, in each place, substitute “ PRA ”.
In section 97 (grounds for making), in subsection (1), for “FSA” substitute “ PRA ”.
In section 98 (commencement), in subsection (2), for “FSA”, in both places, substitute “ PRA ”.
Section 100 (liquidation committee) is amended as follows. For subsection (2) substitute— In subsection (6)(c), for “and the FSA” substitute “ , the PRA and the FCA ”.
In section 101 (liquidation committee: supplemental), in subsection (7), for “FSA” substitute “ PRA, the FCA ”.
In section 103 (general powers, duties and effect), in the Table—
in the entry relating to section 147 of the Insolvency Act 1986, for “FSA” substitute “ PRA ”, and
in the entry relating to section 241 of that Act, for “FSA” substitute “ PRA ”.
Section 108 (removal by court) is amended as follows. In subsection (1)(b), for “FSA” substitute “ PRA ”. In subsection (2)— In subsection (3), for “FSA” substitute “ PRA and the FCA ”.
In section 109 (removal by creditors), in subsection (4) for “and the FSA” substitute “ , the PRA and the FCA ”.
In section 113 (company voluntary arrangement), in subsection (2)(b), for sub-paragraph (i) substitute—.
In section 115 (dissolution), in subsection (2)(b), for sub-paragraph (i) substitute—.
In section 117 (bank insolvency as alternative order), in subsection (2)(a)—
for “FSA” substitute “ PRA ”, and
after “England” insert “ and the FCA ”.
Section 120 (notice of preliminary steps) is amended as follows. For “FSA”, in each place (including the heading), substitute “ PRA ”. In subsection (6), after “filed” insert “ (in Scotland, lodged) ”. In subsection (10), in paragraph (a), after “England” insert “ and the FCA ”.
After section 129 insert—
Part 3 of the Banking Act 2009 is amended as follows.
In section 147 (administrator's proposals), in subsection (6), for “FSA” substitute “ PRA and a copy of it to the FCA ”.
In section 153 (successful rescue), in subsection (3), for “FSA” substitute “ PRA and the FCA ”.
In section 157 (other processes), in subsection (1), for “Before exercising an insolvency power in respect of a residual bank the FSA” substitute “ Before the PRA or the FCA exercises an insolvency power in respect of a residual bank, whichever of them is exercising the power ”.
After section 157 insert—
In section 166 (interpretation: general), for subsection (2) substitute—
Parts 4 to 6 of the Banking Act 2009 are amended as follows.
Section 183 (interpretation of Part 5) is amended as follows. In paragraph (c)— For paragraph (e), and the “and” before it, substitute—
In section 223 (termination of right to issue), in subsections (5) and (6), for “Part 4” substitute “ Part 4A ”.
Section 232 (definition) is amended as follows. In subsections (2) and (6)(a), for “Part 4” substitute “ Part 4A ”. In subsection (5B), in the definition of “rules”, for “section 139(1)” substitute “ section 137B(1) ”. After subsection (6) insert—
In section 234 (regulations: details), for subsection (8)(b) substitute—.
In section 235 (regulations: procedure), at the end insert—
In section 246 (information), in subsection (2)—
for paragraph (b) substitute—, and
in paragraph (d), for “or the Financial Services Authority” substitute, “the Prudential Regulation Authority or the Financial Conduct Authority”.
Section 249 (functions) is amended as follows. In subsection (1)— In subsection (2), for “Financial Services Authority” substitute “ Prudential Regulation Authority or the Financial Conduct Authority ”. Omit subsection (3).
In section 250 (information), for “Financial Services Authority” substitute “ Prudential Regulation Authority. ”
Section 259 (statutory instruments) is amended as follows. In the entry in the Table relating to section 232, for “232” substitute “ 232(6) ”. 232(7) Investment banks: definition of investment activity Negative resolution In the entry in the Table relating to section 249, for “FSA—” substitute “ PRA or FCA— ”.
In the Table in section 261 (index of defined terms)—
FCA 3, 93, 166 & 183
omit the entry relating to the FSA, and
PRA 3, 93, 166 & 183
Section 114(1)
FSMA 2000 is amended as follows.
Section 33 (withdrawal of authorisation) is amended as follows. In subsection (1)(a), for “Part IV permission” substitute “ Part 4A permission ”. In subsection (2), for “Authority” substitute “ appropriate regulator ”. After that subsection insert— In the heading, omit “by the Authority”.
Section 36 (persons authorised as a result of being concerned in collective investment schemes) is amended as follows. In subsection (1), for “Authority” substitute “ FCA ”. In subsection (2), for “Part IV permission” substitute “ Part 4A permission ”.
In section 38 (exemption orders), in subsection (2), for “Part IV permission” substitute “ Part 4A permission ”.
Section 39 (exemption of appointed representatives) is amended as follows. In subsection (1B), for “Authority”, in each place, substitute “ FCA ”. For subsection (4) substitute—
In section 39A (tied agents operating outside the United Kingdom), for “Authority”, in each place, substitute “ FCA ”.
In section 97(1)(d) (contravention of Part 6 rules: appointment of persons to carry out investigations), for “83, 85, 87G or 98” substitute “ 85 or 87G ”.
In section 177 (offences), in subsection (2), after “director or” insert “ other ”.
In each of the provisions of Part 17 (collective investment schemes) mentioned in sub-paragraph (2), for “Authority”, or “Authority's”, in each place, substitute “ FCA ” or “FCA's”. Those provisions are—
Section 249 (disqualification of auditor for breach of trust scheme rules) is amended as follows. In subsection (1) for the words from “it may” to the end substituteit may do one or more of the following— For subsection (2) substitute— For the heading substitute “ Disciplinary measures ”.
Section 250 (modification or waiver of rules) is amended as follows. In subsection (4)— In subsection (5)—
In section 257 (directions), in subsection (5), for “section 150” substitute “ section 138D ”.
In section 267 (power to suspend promotion of scheme)—
in subsections (1), (2), (4) (in both places) and (5) (in both places), for “Authority” substitute “ FCA ”, and
in the heading for “Authority” substitute “ FCA ”.
In section 268 (section 267: procedure)—
in subsection (2), for “Authority” substitute “ FCA ”,
in subsection (3), for “the Authority” substitute “ the FCA ”,
in subsection (4)(c), for “Authority's” substitute “FCA's”,
in subsections (4)(d), (5) and (6) for “Authority” substitute “ FCA ”,
in subsection (7), for “The Authority” substitute “ The FCA ”,
in subsection (8), for “Authority” substitute “ FCA ”,
in subsection (9), for “The Authority” substitute “ The FCA ”,
in subsection (13), for “Authority's” substitute “FCA's”, and
in the heading, for “Authority's” substitute “FCA's”.
In section 269 (procedure: application for variation or revocation of direction)—
in subsections (1), (2), (4) and (5), for “Authority” substitute “ FCA ”, and
in subsection (6), for “The Authority” substitute “ The FCA ”.
In section 270 (schemes authorised in designated countries or territories)—
in subsection (1), in each place, for “Authority” substitute “ FCA ”,
in subsections (2)(b) and (5) (in both places), for “the Authority” substitute “ the FCA ”, and
in subsection (6), for “Authority” substitute “ FCA ”.
In section 284 (power to investigate), in subsection (11), for “the Authority” substitute “ the FCA ”.
In section 404 (consumer redress scheme), for “Authority”, in each place, substitute “ FCA ”.
In section 404A (supplementary provision relating to rules under section 404), for “Authority” or “Authority's”, in each place, substitute “ FCA ” or “FCA's”.
Section 404F (definitions etc.) is amended as follows. For “Authority”, in each place, substitute “ FCA ”. In subsection (8), for paragraph (a) substitute—.
Section 405 (directions) is amended as follows. In subsection (1)— In subsection (2)(b), for “notices of control” substitute “ section 178 notices ”. After subsection (4) insert—
Section 407 (consequences of a direction under section 405) is amended as follows. In subsection (1)— In subsection (2)— In subsection (3)—
for “the Authority”, in the first place, substitute “ a regulator ”, and
in paragraph (b), for “Authority” substitute “ regulator ”.
In section 409 (Gibraltar), in subsection (2), for “Part IV permission” substitute “ Part 4A permission ”.
In section 415 (jurisdiction in civil proceedings), in subsection (1), for paragraph (a) substitute—.
Section 415A (interpretation of powers under the Act) is amended as follows. For “Authority” substitute “ FCA, the PRA or the Bank of England ”. In the heading to the section and the italic heading before it, for “of the Authority” substitute “ under the Act ”.
In paragraph 8 of Schedule 6 (additional threshold conditions), in sub-paragraph (2)(b), for “the Authority” substitute “ such of the FCA or the PRA as may be specified, ”.
In section 5 of the Agricultural Credits Act 1928 (agricultural charges on farming stock and assets), in subsection (7), in the definition of “Bank”, for “Part 4” substitute “ Part 4A ”.
In section 57 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (life policies: supplementary provisions), in subsection (5A), for “section 150” substitute “section 138D”.
In section 1 of the Employers' Liability (Compulsory Insurance) Act 1969 (insurance against liability for employees), in subsection (3)(b)(i), for “Part 4” substitute “Part 4A”.
The Consumer Credit Act 1974 is amended as follows. In section 16 (exempt agreements)— In section 25 (licensee to be a fit person), in subsection (1B)— In section 35 (the register), in subsection (1A), for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority”.
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (other disqualifying offices)—
omit the entry “Member of the governing body of the Financial Services Authority”, and
Member of the governing body of the Financial Conduct Authority; Member of the governing body of the Prudential Regulation Authority;
In section 7 of the Lloyd's Act 1982 (the Disciplinary Committee and the Appeal Tribunal), in subsection (1A)(c), for “Financial Services Authority” substitute “Prudential Regulation Authority or the Financial Conduct Authority”.
In section 27A of the Fire Services Act 1947 (information in connection with firemen's pensions etc.) (as that section continues to have effect by virtue of the Firefighters' Pension Scheme (England and Scotland) Order 2004 and the Fire and Rescue Services Act 2004 (Firefighters' Pension Scheme) (Wales) Order 2004), in subsection (2)(a), for “section 150” substitute “ section 138D ”.
In section 7 of the Decimal Currency Act 1969 (payments under friendly society and industrial assurance contracts: supplemental), in subsection (5), for “section 138” substitute “sections 137A and 137G”.
In section 9 of the Employment Agencies Act 1973 (inspection), in subsection (1AC), for “Part 4” substitute “Part 4A”.
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices)—
omit the entry “Member of the governing body of the Financial Services Authority”, and
Member of the governing body of the Financial Conduct Authority; Member of the governing body of the Prudential Regulation Authority;
In section 33A of the Judicial Pensions Act 1981 (voluntary contributions), in subsection (9), in paragraph (a) of the definition of “authorised provider”, for “Part 4” substitute “Part 4A”.
The Companies Act 1985 is amended as follows.
In this Part of this Schedule—
This paragraph applies if after the passing of this Act the Treasury make an order under section 22 of FSMA 2000 which has the effect that an activity— The OFT must make one or more schemes under this paragraph for the transfer of property, rights and liabilities of the OFT to the FCA. A scheme under this paragraph made by the OFT is not to be capable of coming into force unless it is approved by the Treasury and the Secretary of State. The OFT may not submit a scheme under this paragraph to the Treasury or the Secretary of State for their approval without the consent of the FCA. Sub-paragraph (6) applies if — Where this sub-paragraph applies, the Treasury may, with the approval of the Secretary of State, make a scheme under this paragraph for the transfer to the FCA of such of the OFT's property, rights and liabilities as appear to the Treasury appropriate to be transferred to the FCA in consequence of the order falling within sub-paragraph (1). The property, rights and liabilities which are the subject of a scheme under this paragraph are transferred in accordance with the provisions of the scheme on such day as the scheme may specify. The OFT must provide the Treasury or the Secretary of State with all such information and other assistance as either of them may reasonably require for the purposes of, or otherwise in connection with, the exercise of any power conferred on the Treasury or the Secretary of State by this paragraph. In the following provisions of this Part of this Schedule a scheme under this paragraph is referred to as a “transfer scheme”.
In Schedule 15C (specified persons), for paragraph 7 substitute—
The property, rights and liabilities that may be the subject of a transfer scheme include—
any that would not otherwise be capable of being transferred or assigned, and
rights and liabilities under a contract of employment.
Schedule 15D (disclosures) is amended as follows. In paragraph 28 for “Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority”. In paragraph 29 for the words from “competent authority” to the end substitute ““Financial Conduct Authority to exercise its functions under Part 6 of the Financial Services and Markets Act 2000.” In paragraph 43, for paragraph (a) substitute—.
A transfer scheme may—
apportion, or provide for the apportionment of, property, rights and liabilities,
define the property, rights and liabilities to be transferred by specifying them or by describing them (including describing them by reference to functions that are transferred by the order falling within paragraph 7(1));
contain provision for the payment of compensation by the FCA to the OFT;
contain provision for the payment of compensation by the OFT or the FCA to any person whose interests are adversely affected by the scheme;
contain supplemental, incidental, transitional and consequential provision.
A transfer scheme which relates to rights and liabilities under a contract of employment must provide for the transfer to which the scheme relates to be treated as if it were a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006.
“the UK financial system” means the financial system of the United Kingdom.
In Part 3 of Schedule 1 to the Trustee Savings Banks Act 1985 (supplementary transfer provisions), in paragraph 11(4A)(a), for “Part 4” substitute “Part 4A”.
The Insolvency Act 1986 is amended as follows.
The Income and Corporation Taxes Act 1988 is amended as follows. In section 266 (life assurance premiums), in subsection (2)(a)(i), for “Part 4” substitute “Part 4A”. In section 376 (qualifying borrowers and qualifying lenders), in subsection (4)(e), for “Part 4” substitute “Part 4A”. In section 376A (the register of qualifying lenders), in subsection (1A)(a), for “Part 4” substitute “Part 4A”. In section 431 (interpretation: insurance companies), in subsection (2), in the definition of “insurance company”, for “Part 4” substitute “Part 4A”. In section 444AB (transfer schemes)—
In section 174 of the Water Act 1989 (restriction on disclosure of information), in subsection (2)(e), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England”.
In section 204 of the Water Resources Act 1991 (restriction on disclosure of information), in subsection (2)(e), for “or the Financial Services Authority” substitute “, the Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England”.
In Schedule 1 to the Criminal Justice Act 1993 (special defences), in paragraph 5(2), for “section 144(1)” substitute “section 137Q”.
The Finance Act 1994 is amended as follows. In Schedule 7 (insurance premium tax), in paragraph 28B— In Schedule 24 (provisions relating to the Railways Act 1993), in paragraph 19(7), in the definition of “securities”, for “section 74(5)” substitute “section 102A(2)”.
The Pensions Act 1995 is amended as follows. In section 49 (responsibilities of trustees etc.), in subsection (8A)(a), for “Part 4” substitute “Part 4A”. In section 172 (information about public service schemes), in subsection (1)(a), for “section 150” substitute “section 138D”.
The Bank of England Act 1998 is amended as follows. In section 17 (power to obtain information), in subsections (3D) and (7)(a), for “Part 4” substitute “Part 4A”. Omit— In Schedule 2 (cash ratio deposits), in paragraph 1(1A)(c), for “Part 4” substitute “Part 4A”. In Schedule 7 (restriction on disclosure of information), in paragraph 3, in the Table—
In Part 1 of Schedule 1 to the Regulation of Investigatory Powers Act 2000 (relevant authorities), for paragraph 19 substitute—
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public bodies and offices: general)—
omit the entry relating to the Financial Services Authority, and
The Financial Conduct Authority. The Prudential Regulation Authority.
The Proceeds of Crime Act 2002 is amended as follows. In section 282 (exemptions), in subsection (3)— In section 308 (general exceptions), in subsection (7)(a)— In Part 2 of Schedule 9 (supervisory authorities), in paragraph 4(1)—
The Income Tax (Earnings and Pensions) Act 2003 is amended as follows. In Part 4 of Schedule 2 (approved share incentive plans: types of shares that may be awarded), in paragraph 30(3)— In Part 4 of Schedule 3 (approved SAYE option schemes: applicable shares), in paragraph 21(5)— In Part 4 of Schedule 4 (approved CSOP schemes: applicable shares), in paragraph 19(5)—
In Part 1 of Schedule 28 to the Finance Act 2004 (pension rules), in paragraph 14(3)(a), for Financial Services Authority” substitute “Financial Conduct Authority or the Prudential Regulation Authority”.
In section 14 of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (supervision of accounts and reports of issuers of listed securities), in subsections (2)(b) and (7)(b), for “Financial Services Authority” substitute “Financial Conduct Authority”.
Section 71 of the Serious Organised Crime and Police Act 2005 (immunity from prosecution) is amended as follows. In subsection (4), for paragraph (da) substitute—. In subsection (6A), for “Financial Services Authority” substitute “Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England”. For subsection (6B) substitute— In subsection (6C)—
Section 3 of the Compensation Act 2006 (mesothelioma: damages) is amended as follows. In subsection (8)— Omit subsection (9).
In Schedule 5 to the Regulatory Enforcement and Sanctions Act 2008 (Designated Regulators)—
for “Financial Services Authority” substitute “Financial Conduct Authority”, and
Prudential Regulation Authority
The Corporation Tax Act 2010 is amended as follows. In section 161 (restricted right to dividends), in subsection (8), for paragraph (a), and the “and” following it, substitute—. In section 635 (application of Chapter 6 of Part 13: banks etc. in compulsory liquidation), in subsection (2)(a), for “Part 4” substitute “Part 4A”. In section 1120 (meaning of “bank”), in subsection (3), for “Part 4” substitute “Part 4A”.
The Terrorist Asset-Freezing etc Act 2010 is amended as follows. In section 23 (general power to disclose information), in subsection (1)— In section 41 (meaning of “relevant institution”), in subsection (1)(a), for “Part 4” substitute “Part 4A”.
In Part 1 of Schedule 1 to the Terrorism Prevention and Investigation Measures Act 2011 (measures), in paragraph 5(4), for “Part 4” substitute “Part 4A”.
The Legal Aid, Sentencing and Punishment of Offenders Act 2012 is amended as follows. In section 57 (effect of rules against referral fees), in subsection (4), for “Financial Services Authority” substitute “Financial Conduct Authority”. In section 58 (regulation by FSA)— In section 59 (regulators and regulated persons)—
Section 4A (approval of proposed voluntary arrangement) is amended as follows. In subsection (5), for “Financial Services Authority” substitute “appropriate regulator”. After that subsection insert—
In section 422 (order relating to formerly authorised banks), in subsection (1)—
for “Financial Services Authority” substitute “Financial Conduct Authority and the Prudential Regulation Authority”, and
in paragraph (b), for “Part IV” substitute “Part 4A”.
Paragraph 44 of Schedule A1 (moratorium where directors propose voluntary arrangement; modifications relating to regulated companies) is amended as follows. In sub-paragraphs (2) to (4), for “Authority” substitute “appropriate regulator”. In sub-paragraph (5)— In sub-paragraph (6), for “Authority” substitute “appropriate regulator”. In sub-paragraph (7)— In sub-paragraphs (8) to (11), for “Authority” substitute “appropriate regulator”. In sub-paragraph (12)— In sub-paragraph (13), for “Authority” substitute “appropriate regulator”. In sub-paragraph (14)— In sub-paragraph (15), for “Authority” substitute “appropriate regulator”. In sub-paragraph (16)— If either regulator makes an application to the court under any of the provisions mentioned in sub-paragraphs (5), (7), (12), (14) or (16) in relation to a PRA-regulated company, the other regulator is entitled to be heard on the application. In sub-paragraph (17), for “Authority” substitute “appropriate regulator”. The appropriate regulator” means— In sub-paragraph (18)— In the italic heading, for “Financial Services Authority” substitute “Financial Conduct Authority and Prudential Regulation Authority”.
Schedule B1 (administration) is amended as follows. In paragraph 40 (dismissal of pending winding-up petition), in sub-paragraph (2)(b), for “Financial Services Authority” substitute “Financial Conduct Authority or Prudential Regulation Authority”. In paragraph 42 (moratorium on insolvency proceedings), in sub-paragraph (4)(b), for “Financial Services Authority” substitute “Financial Conduct Authority or Prudential Regulation Authority”. In paragraph 82 (public interest winding-up), in sub-paragraph (1)(b), for “Financial Services Authority” substitute “Financial Conduct Authority or Prudential Regulation Authority”.
“consumers” has the meaning given in section 1G of FSMA 2000;
In section 106 of the Charities and Trustee Investment (Scotland) Act 2005 (general interpretation), in the definition of “relevant financial institution”, for “Part 4” substitute “Part 4A”.
investment bank insolvency,
In section 9A of the District Judges (Magistrates' Courts) Pensions Act (Northern Ireland) 1960 (voluntary contributions under the judicial pension scheme), in subsection (7), in the definition of “insurer”, for “Part 4” substitute “Part 4A”.
The FSA must make one or more schemes under this paragraph for the transfer of property, rights and liabilities of the FSA— A scheme under this paragraph made by the FSA is not to be capable of coming into force unless it is approved by the Treasury. The FSA may not submit a scheme under this paragraph to the Treasury for their approval without the consent of the Bank. Sub-paragraph (5) applies if— Where this sub-paragraph applies, the Treasury may, after consultation with the FSA and the Bank, make a scheme under this paragraph for the transfer of such of the FSA's property, rights and liabilities as appear to them appropriate to be transferred as mentioned in sub-paragraph (1) in consequence of the transfer of functions by or under this Act. The property, rights and liabilities which are the subject of a scheme under this paragraph are transferred in accordance with the provisions of the scheme on such day as the scheme may specify. The FSA must provide the Treasury with all such information and other assistance as they may reasonably require for the purposes of, or otherwise in connection with, the exercise of any power conferred on the Treasury by this paragraph. In the following provisions of this Part of this Schedule a scheme under this paragraph is referred to as a “transfer scheme”.
The property, rights and liabilities that may be the subject of a transfer scheme include—
any that would otherwise be incapable of being transferred or assigned, and
rights and liabilities under a contract of employment.
A transfer scheme may—
apportion, or provide for the apportionment of, property, rights and liabilities,
define the property, rights and liabilities to be transferred by specifying them or by describing them (including describing them by reference to functions that are transferred by or under this Act);
contain provision for the payment of compensation by the PRA or the Bank to the FSA;
contain provision for the payment of compensation by the FSA, the PRA or the Bank to any person whose interests are adversely affected by the scheme;
contain supplemental, incidental, transitional and consequential provision.
A transfer scheme which relates to rights and liabilities under a contract of employment—
must provide for the transfer to which the scheme relates to be treated as if it were a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”), but
may, in connection with functions becoming exercisable (alone or jointly) by the PRA—
provide for the transfer of rights and liabilities under a contract of employment to the Bank, and
provide for TUPE to have effect as if the relevant transfer were a transfer to the Bank.
“investment bank insolvency” means any procedure established by regulations under section 233 of the Banking Act 2009,
In Schedule 6 to the Welsh Language (Wales) Measure 2011 (public bodies etc: standards)—
Awdurdod Ymddygiad Ariannol (“Financial Conduct Authority”) Safonau cyflenwi gwasanaethau Safonau llunio polisi Safonau gweithredu Safonau cadw cofnodion.
Financial Conduct Authority (“Awdurdod Ymddygiad Ariannol”) Record keeping standards Service delivery standards Policy making standards Operational standards.
Awdurdod Rheoleiddio Darbodus (“Prudential Regulation Authority”) Safonau cyflenwi gwasanaethau Safonau llunio polisi Safonau gweithredu Safonau cadw cofnodion.
Prudential Regulation Authority (“Awdurdod Rheoleiddio Darbodus”) Record keeping standards Service delivery standards Policy making standards Operational standards.
In this Act, unless the context otherwise requires, a reference (however expressed) to the Financial Services Authority is to be read, in relation to any time after the relevant commencement, as a reference to the Financial Conduct Authority. In this Act, unless the context otherwise requires, a reference (however expressed) to the Financial Conduct Authority is to be read, in relation to any time before the relevant commencement, as a reference to the Financial Services Authority.
Before section 11 comes into force in relation to section 55B of FSMA 2000 (the threshold conditions), the Treasury must make an order under section 55C of that Act which—
amends or replaces Parts 1 and 2 of Schedule 6 to that Act, and
makes provision as to which of the conditions set out in those Parts of that Schedule are to relate to the discharge by each regulator of its functions.
The following amendments of the Postal Services Act 2000 have effect until the repeal by the Postal Services Act 2011 of the provisions amended has been brought into force for all purposes. In section 7 of the Postal Services Act 2000 (exceptions), in subsection (5), in the definition of “deposit taker”, for “Part 4” substitute “Part 4A”. In Schedule 7 of that Act (disclosure of information), for paragraph 3(2)(s) substitute—.
Section 114(2) Short title Extent of repeal Bank of England Act 1998 Section 1(3). Competition Act 1998 In Schedule 2, paragraph 1 and the italic heading before it. In Schedule 7, in paragraph 19A(9)— “or (in the case of the Financial Services and Markets Act 2000 (c 8)) an investigation”, and paragraph (m). In Schedule 12, paragraph 8 and the italic heading before it. In Schedule 13, in paragraph 26— sub-paragraph (1)(a), sub-paragraph (2), in sub-paragraph (3) the words “and (2)”, and sub-paragraph (3)(a). Insolvency Act 2000 Section 15(2). Proceeds of Crime Act 2002 In Schedule 11, paragraph 38 and the italic heading before it. Enterprise Act 2002 Sections 241A(2)(b) and 243(3)(c). In Schedule 25, sub-paragraphs (2) to (5) and (10) to (15) of paragraph 40. Communications Act 2003 In Schedule 16, paragraph 5 and the italic heading before it. Constitutional Reform Act 2005 In Schedule 7, the entry relating to the Financial Services and Markets Act 2000. In Schedule 9, paragraph 70 and the italic heading before it. Inquiries Act 2005 Section 46. Companies Act 2006 Section 964(3) and (5). In Part 2 of Schedule 2, paragraph 38. In Schedule 11A, paragraph 53. In Schedule 15, paragraphs 2 and 9. Tribunals, Courts and Enforcement Act 2007 In Schedule 6, in the Table in Part 3, the entry relating to the Financial Services and Markets Tribunal. Consumers, Estate Agents and Redress Act 2007 In section 20— in subsection (2), in the definition of “designated body”, paragraph (b), and subsection (3)(a). Section 39. In Schedule 1, paragraph 1(4)(a). Banking Act 2009 Section 249(4). Financial Services Act 2010 Section 1. Section 2(2) to (5). Section 3(2) to (4). Section 6. Section 7. In Schedule 2, paragraphs 2 to 6, 11 to 14, 27 and 34.
Section 119(1)
Section 119(2)