Djibouti - Economic situation and prospects
The Bank of England Act 1998 is amended as follows.
In section 1(2) (court of directors) after paragraph (b) insert—.
After section 1 insert—
Paragraph 2 of Schedule 1 to the Bank of England Act 1998 (term of office of non-executive directors) is amended as follows.
The existing text becomes sub-paragraph (1).
After that sub-paragraph insert—
The Bank of England Act 1998 is amended as follows.
In section 2(2) (functions of court of directors)—
the words from “determining the Bank's objectives” to the end become paragraph (a);
after that paragraph insert—
In section 3A (Oversight Committee)—
omit subsection (1);
in subsection (2), in the words before paragraph (a) for “functions of the Oversight Committee” substitute “ oversight functions of the court of directors ”;
in subsection (2)(d) for “Oversight Committee” substitute “ court of directors ”;
omit subsection (3);
in the heading for “Committee” substitute “ functions of court of directors ”.
Omit section 3B (Oversight Committee: procedure).
In section 3C (reviews) after subsection (1) insert—
Schedule 1 to the Bank of England Act 1998 (court of directors) is amended as follows.
In paragraph 14 (remuneration)—
at the beginning insert—;
in sub-paragraph (1) for “the Oversight Committee” substitute “ that sub-committee ”.
Paragraph 11 of Schedule 1 to the Bank of England Act 1998 (matters which may be delegated by court of directors) is amended as follows.
In sub-paragraph (2) after “paragraph” insert—.
After sub-paragraph (2) insert—
Section 9B(1) of the Bank of England Act 1998 (Financial Policy Committee) is amended as follows.
In the words before paragraph (a), for “sub-committee of the court of directors” substitute “ committee ”.
For paragraph (b) substitute—.
In paragraph (e) for “4” substitute “ 5 ”.
Section 13 of the Bank of England Act 1998 (Monetary Policy Committee) is amended as follows.
In subsection (2)—
after paragraph (aa) insert—;
in paragraph (b) for “2 members” substitute “ one member (to be known as the Chief Economist of the Bank) ”.
For subsection (3) substitute—
For subsection (4) substitute—
The Bank of England Act 1998 is amended as follows.
In section 15(1) (publication of Monetary Policy Committee minutes: usual rule)—
for “After” substitute “ As soon as reasonably practicable after ”;
omit the words from “before” to the end.
In section 15(3) (publication of Monetary Policy Committee minutes: special cases)—
for “before the end of the period of 6 weeks beginning with the day of” substitute “ as soon as reasonably practicable after ”;
for “before the end of the period of 6 weeks beginning with the day on which” substitute “ as soon as reasonably practicable after ”.
In paragraph 10 of Schedule 3 (meetings of Monetary Policy Committee)—
in sub-paragraph (1) for “once a month” substitute “ 8 times in each calendar year ”;
after sub-paragraph (1) insert—
In paragraph 11 of Schedule 3 (proceedings of Monetary Policy Committee: quorum)—
in sub-paragraph (2) for “whom” to the end substitutewhom— ;
in sub-paragraph (6) after “(5)” insert “ and paragraph 13B ”.
In Schedule 3, after paragraph 13A insert—
In the Bank of England Act 1998, after section 7 insert—
In the Bank of England Act 1998, after section 7A insert—
In the Bank of England Act 1998, after section 7C (inserted by section 10) insert—
In the Financial Services and Markets Act 2000, for section 2A substitute—
The Bank of England Act 1998 is amended as follows.
After Part 3 insert—
Before Schedule 7 insert the Schedule 6A set out in Schedule 1 to this Act.
Section 7 of the Bank of England Act 1998 (accounts) is amended as follows.
After subsection (2) insert—
After subsection (4) insert—
In subsection (5), after “subsection (2)” insert “ or (2A) ”.
After subsection (5) insert—
In subsection (6), after “subsection (2)” insert “ or (2A) ”.
After subsection (8) insert—
The property, rights and liabilities to which the company is entitled or subject immediately before this section comes into force transfer to and vest in the Bank of England, in its capacity as the Prudential Regulation Authority.
Subsection (1) has effect in spite of any provision (of whatever nature) that would otherwise prevent, penalise or restrict the transfer of the property, rights or liabilities.
In particular, it has effect regardless of a contravention, liability or interference with an interest or right that would otherwise exist by reason of such a provision having effect in relation to the terms on which the company is entitled to the property or right, or subject to the liability, in question.
A certificate by the Chancellor of the Exchequer that anything specified in the certificate has vested in the Bank of England under this section is conclusive evidence for all purposes of that fact.
In this section “the company” means the body corporate originally incorporated as the Prudential Regulation Authority Limited and renamed as the Prudential Regulation Authority by section 2A of the Financial Services and Markets Act 2000 (as it had effect before section 12 came into force).
Schedule 2 makes amendments relating to this Part.
Schedule 3 makes saving and transitional provision relating to this Part.
In Schedule 1ZA to the Financial Services and Markets Act 2000 (the Financial Conduct Authority), after paragraph 2 insert—
In Chapter 1 of Part 1A of the Financial Services and Markets Act 2000 (the Financial Conduct Authority), after section 1J insert—
Section 3B of the Financial Services and Markets Act 2000 (regulatory principles to be applied by both regulators) is amended as follows.
In subsection (1)(f) after “persons” insert “(including different kinds of person such as mutual societies and other kinds of business organisation)”.
After subsection (3) insert—
Schedule 4 makes provision extending to authorised persons provisions of Part 5 of the Financial Services and Markets Act 2000 (performance of regulated activities) which now apply only to relevant authorised persons.
The Financial Services and Markets Act 2000 is amended as follows.
After section 59A insert—
In section 429(2B) (regulations subject to affirmative procedure) for “contain” substitutecontain— .
The Financial Services and Markets Act 2000 is amended as follows.
In section 62A(4) (changes in responsibilities of senior managers), at the end of the definition of “the appropriate regulator” insert “, except that the reference in section 60(9)(b) to subsection (3) is to be treated as a reference to subsection (2) of this section”.
In section 63ZA (variation of senior manager's approval at request of authorised person)—
in subsection (1), for “application for approval under section 59 is granted” substitute “approval under section 59 has effect”;
after subsection (1) insert—;
in subsection (2)(a) the words from “whichever” to the end become sub-paragraph (i), and at the end of that sub-paragraph insert, or ;
after subsection (2)(b) insert—;
in subsection (3) for “which was imposed” substitute “, or a limit on the period for which an approval has effect, which was imposed (or last varied)”;
after subsection (7) insert—;
in subsection (8), after “section 62” insert “, but as if in subsections (2), (3) and (4) the words “, or to grant the application subject to conditions or for a limited period (or both)” were omitted”.
In section 63ZB (variation of senior manager's approval on initiative of regulator)—
omit the “or” at the end of subsection (3)(c);
at the beginning of subsection (3)(d) insert “where the approval has effect for an unlimited period,”;
at the end of subsection (3)(d) insert, or ;
after subsection (4) insert—
In section 204A (meaning of appropriate regulator)—
in subsection (3)(d) for the words from “the authorised person” to the end substitute “the revised statement of responsibilities is to be provided to the PRA only;”;
in subsection (3A), after paragraph (b) insert—.
The Financial Services and Markets Act 2000 is amended as follows.
In section 64A (power of FCA and PRA to make rules of conduct)—
in subsection (1) after paragraph (b) insert—;
in subsection (2) after paragraph (c) insert—;
omit the “and” at the end of subsection (5)(a);
after subsection (5)(a) insert—;
after subsection (6) insert—
In section 64B (responsibilities of authorised persons in relation to rules of conduct)—
omit the “and” at the end of subsection (4)(a);
at the end of subsection (4)(b) insert, and ;
omit subsection (5);
after subsection (6) insert—
The Financial Services and Markets Act 2000 is amended as follows.
In section 66A (misconduct: action by FCA)—
omit the “or” at the end of subsection (2)(b)(i);
at the end of subsection (2)(b)(ii) insert, or ;
omit the “or” at the end of subsection (3)(b)(i);
at the end of subsection (3)(b)(ii) insert, or ;
omit the “and” at the end of subsection (5)(b);
at the end of subsection (5)(c) insert, and ;
omit subsection (6);
“director”, in relation to an authorised person, has the same meaning as in section 64A;
In section 66B (misconduct: action by PRA)—
omit the “or” at the end of subsection (2)(b)(i);
at the end of subsection (2)(b)(ii) insert, or ;
omit the “or” at the end of subsection (3)(b)(i);
at the end of subsection (3)(b)(ii) insert, or ;
omit the “and” at the end of subsection (5)(b);
at the end of subsection (5)(c) insert, and ;
omit subsection (6);
“director”, in relation to an authorised person, has the same meaning as in section 64A;
Section 37 of the Financial Services (Banking Reform) Act 2013 (interpretation of section 36) is amended as follows.
In subsection (10)—
after paragraph (c) insert—;
after paragraph (e) insert—.
After subsection (10) insert—
Section 26A of the Financial Services and Markets Act 2000 (agreements relating to credit) is amended as follows.
In subsection (4)—
the words from “has” to the end become paragraph (a);
after that paragraph insert—
In subsection (5)—
the words from “the agreement” (in the third place they occur) to the end become paragraph (a) (and the existing paragraphs (a) and (b) become sub-paragraphs (i) and (ii) of that paragraph);
after that paragraph insert—
Section 27 of the Financial Services and Markets Act 2000 (agreements made through unauthorised persons) is amended as follows.
After subsection (1) insert—
In subsection (1A) for “The agreement” substitute “An agreement to which this section applies”.
After subsection (4) insert—
The Financial Services and Markets Act 2000 is amended as follows.
After Part 20A insert—
In section 138F (notification of rules), for “or 333R” substitute “, 333R or 333T”.
In section 138I (consultation by FCA)—
in subsection (6), after paragraph (cb) insert—;
in subsection (10)(a), for “or 333R” substitute “, 333R or 333T”.
In section 429(2) (regulations subject to affirmative procedure), for “or 333R” substitute “, 333R or 333T”.
In paragraph 23 of Schedule 1ZA (FCA fees rules)—
in sub-paragraph (1) for “and 333R” substitute “, 333R and 333T”;
in sub-paragraph (2ZA)(b) for “section 333R” substitute “sections 333R and 333T”.
In any regulations or orders transposing money laundering measures contained within Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 (or in relation to any subsequent EU amending or successor measure) the Treasury shall have a duty to ensure, insofar as such regulations or orders relate to institutions regulated by the Financial Conduct Authority—
reasonable regard and due prominence is given to—
recital 33,
Article 13(2),
Article 15, and
Article 16 and Annex II;
clarity is achieved with respect to the meaning and interpretation of “prominent public function” in the context of money laundering;
reasonable regard and due prominence is given to Article 22 which recognises that a politically exposed person may have no prominent public function; and
any interpretation of “adequate” in Article 20(b)(ii), and “enhanced” in Article 20(b)(iii) takes account of, and gives due prominence to, the provisions in Article 13 on risk sensitivity.
The Financial Services and Markets Act 2000 is amended as follows.
After Part 20B insert—
The Financial Services and Markets Act 2000 is amended as follows.
After Part 17 insert—
In section 429(2) (regulations subject to the affirmative procedure), after “262,” insert “284A,”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 333A of the Financial Services and Markets Act 2000 (meaning of “pensions guidance” in Part 20A of that Act) is amended as follows.
In subsection (2)—
the words from “guidance”, in the second place it occurs, to the end become paragraph (a);
at the end of that paragraph insert , and
After subsection (2) insert—
In subsection (3) after the definition of “pension scheme” insert—.
The Financial Services and Markets Act 2000 is amended as follows.
After section 137FB insert—
In section 138F(2) (notification of rules) after “137FB,” insert “137FBA,”.
In section 138I (consultation by the FCA)—
in subsection (6), after paragraph (aa) insert—;
in subsection (10)(a) after “137FB,” insert “137FBA,”.
In section 429(2B) (regulations subject to affirmative procedure)—
after paragraph (a) (inserted by section 22) insert—;
the words from “provision made under section 410A,” to the end become paragraph (c).
The Pension Schemes Act 2015 is amended as follows.
In section 48(8) (independent advice in respect of conversions and transfers: Great Britain), in paragraph (a) of the definition of “authorised independent adviser”, after “Secretary of State,” insert “or is acting as an appointed representative (within the meaning given by section 39(2) of that Act) in relation to a regulated activity so specified,”.
In section 51(8) (independent advice in respect of conversions and transfers: Northern Ireland), in paragraph (a) of the definition of “authorised independent adviser”, after “Northern Ireland,” insert “or is acting as an appointed representative (within the meaning given by section 39(2) of that Act) in relation to a regulated activity so specified,”.
The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (S.I. 2001/1217) are amended as follows.
In regulation 2(1) (descriptions of business for which appointed representatives are exempt) after sub-paragraph (cca) insert—.
In regulation 3 (requirements applying to contracts between authorised persons and appointed representatives) after paragraph (3G) insert—
The amendments made by subsections (4) to (6) do not affect the power to make further subordinate legislation amending or revoking the amended regulations.
The Financial Services and Markets Act 2000 is amended as follows.
After section 137FBA (as inserted by section 33) insert—
In section 138E(3) (contravention of rules which may make transaction void or unenforceable)—
omit the “or” at the end of paragraph (a);
at the end of paragraph (b) insertor
The Financial Services Act 2012 is amended as follows.
Before section 58 insert—
In section 65 (memorandum of understanding)—
in subsection (1), after “in relation to” insert—;
in subsection (2), at the beginning insert “For the purposes of subsection (1)(b),”;
in the heading, after “understanding:” insert “resolution planning and”.
In section 67 (interpretation), after subsection (5) insert—
The revocation of the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649) by the National Savings Regulations 2015 (S.I. 2015/623) is to be treated as never having had effect.
Accordingly, in the Schedule to those regulations, omit the entry for that order.
The Banking Act 2009 is amended as follows.
In section 207(b) (overview of Part 6) for the words from “banks” to the end substitute “ authorised banks (see section 210). ”
In section 210 (authorised bank)—
the words from “a bank” to the end become paragraph (a);
at the end of that paragraph insert “ (unless by virtue of regulations under section 214A it is no longer an authorised bank for the purposes of this Part), or ”;
after that paragraph insert—
In section 213 (saving for existing issuers)—
the existing text becomes subsection (1);
in that subsection, after “bank” insert “ within section 210(a) ”;
after that subsection insert—;
for the heading substitute “ Authorisation to issue banknotes ”.
After section 214 insert—
214A Issuers of banknotes: Scotland and Northern Ireland Draft affirmative resolution
The Treasury or the Secretary of State may by regulations make the provision in subsection (2) in consequence of any provision made by or under this Act.
The provision referred to in subsection (1) is provision amending, repealing, revoking or applying with modifications any provision of primary or secondary legislation to which this section applies.
This section applies to primary and secondary legislation passed or made—
before the passing of this Act, or
on or before the last day of the session in which this Act is passed.
Regulations under this section—
may make saving, transitory or transitional provision;
may make different provision for different purposes.
The power to make regulations under this section is exercisable by statutory instrument.
A statutory instrument containing regulations under this section—
if it contains (whether alone or with other provision) provision which amends or repeals any provision of primary legislation, may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament, and
otherwise, is subject to annulment in pursuance of a resolution of either House of Parliament.
In this section—
“enactment” has the same meaning as in Part 1A of that Act (see section 3T);
In section 98(5)(d) of the Financial Services (Banking Reform) Act 2013 (definition of relevant functions), for “2A(6)” substitute “ 2AB(3) ”.
“primary legislation” means an Act, an Act of the Scottish Parliament, a Measure or Act of the National Assembly for Wales, or Northern Ireland legislation;
“transferred function” means a function transferred from the company to the Bank by virtue of section 12;
The Banking Act 2009 is amended as follows.
Sub-paragraph (2) applies to the strategy determined by the company under section 2E of the Financial Services and Markets Act 2000 which is in effect immediately before section 12 comes into force. After section 12 comes into force the strategy is to continue to have effect, and is to be treated as having been determined under section 2E of that Act by the Bank in its capacity as the Prudential Regulation Authority.
In section 83ZZ (co-operation)—
at the end of paragraph (a) insert “ , and ”;
omit paragraph (b).
Section 83Z1 (delegation of enforcement functions) is amended as follows. In subsection (1)— Omit subsection (2)(b). In subsection (3), for “appropriate regulator” substitute “ FCA ”.
In section 89L(2)(c)(i) (application of section 348 of Financial Services and Markets Act 2000) omit inserted paragraph (ca).
Section 96 (ground for applying for bank insolvency order) is amended as follows. In subsection (2)(a) omit “the PRA has informed the Bank of England that”. In subsection (3)(a), for the words from “has”, in the first place it occurs, to the end substitute “ is satisfied that Condition 2 in section 7 is met, and ”.
Section 108 (removal of bank liquidator by court) is amended as follows. In subsection (2) omit “the Bank of England and”. In subsection (3) omit “the PRA and”.
In section 117(2)(a) (consents required for making of bank insolvency order) omit “the Bank of England and”.
In section 129A (modifications for banks not regulated by PRA), the table in subsection (2) is amended as follows. In the entry for section 96, in column 2, for paragraphs (a) and (b) substitute— In the entry for section 108, in column 2— In the entry for section 117, in column 2, for paragraph (b) substitute—
Omit section 204(4)(ba) (Bank may disclose information to PRA).
Omit section 246(2)(b) (Bank may disclose information to PRA).
Before section 257 insert—
Bank of England 256B Prudential Regulation Authority 256B
Subject to subsection (2) this Act extends to England and Wales, Scotland and Northern Ireland.
An amendment or repeal made by this Act has the same extent as the provision amended or repealed.
The following provisions come into force on the day on which this Act is passed—
section 31;
section 37;
sections 39 to 42.
Section 32 comes into force on such day as the Secretary of State may by regulations appoint.
The other provisions of this Act come into force on such day as the Treasury may by regulations appoint.
The Treasury or the Secretary of State may by regulations make saving, transitory or transitional provision in connection with the coming into force of any provision made by or under this Act.
Regulations under this section may make different provision for different purposes.
The power to make regulations under this section is exercisable by statutory instrument.
This Act may be cited as the Bank of England and Financial Services Act 2016.
Section 13
Section 16
The Bank of England Act 1998 is amended as follows.
In section 2 (functions of court of directors), for subsection (5) substitute—
In section 2A(2) (financial stability objective) for “, the Financial Conduct Authority and the Prudential Regulation Authority)” substitute “ and the Financial Conduct Authority) ”.
Section 3A (oversight functions) is amended as follows. In subsection (2)(a)— In subsection (4) omit paragraphs (c) to (h).
Section 3C (reviews) is amended as follows. In subsection (1)— In subsection (3)(a) for “by the Committee in the discharge of any of its” substitute “in relation to the discharge of any of the court's”. Omit subsection (4). In subsection (5) for “the Committee must have regard” substitute “ regard must be had ”.
In section 3D(1) (publication of reports of performance reviews) for “Oversight Committee” substitute “ court of directors ”.
In section 3E(2) (recommendations resulting from review) for “Oversight Committee” substitute “ court of directors ”.
Section 3F (oversight: further provisions) is amended as follows. In subsection (1)— In subsection (2)— After subsection (2) insert— In subsection (3)— In the heading, for “Committee” substitute “ functions ”.
Section 4 (annual report by the Bank) is amended as follows. For subsection (2)(a) substitute—. In subsection (2)(b)— Omit subsection (3). After subsection (6) insert—
Omit section 7A(9)(a) (definition of “qualifying company”).
In section 9B(4) (Financial Policy Committee) for “Oversight Committee” substitute “ court of directors of the Bank ”.
In section 9O (FPC recommendations within the Bank), after subsection (4) insert—
Section 9Y (directions requiring information or documents) is amended as follows. In subsection (2) for “or the PRA (“the regulator”) requiring the regulator” substitute “ requiring it ”. In subsection (3) for “regulator”, in each place it occurs, substitute “ FCA ”. In subsection (4) omit— In the italic heading before section 9Y, omit “or PRA”.
Section 9Z (further provisions about directions under section 9Y) is amended as follows. In subsection (2)— In subsection (4), for “regulator to which it is given” substitute “ FCA ”.
In section 14 (publications of statements about decisions)—
in subsection (1) after “As soon as” insert “ reasonably ”;
in subsection (5) after “As soon as” insert “ reasonably ”.
Section 16 (functions of Oversight Committee) is amended as follows. In subsection (1) for “Oversight Committee” substitute “ court of directors of the Bank ”. In subsection (2) for “the function of the Oversight Committee” substitute “ the court's function ”. In the heading, for “Oversight Committee” substitute “ court of directors ”.
In section 18(6) (reports) after “as soon as” insert “ reasonably ”.
In section 40(2) (orders) after “under—” insert— “ section 1A(1), ”.
Schedule 1 (court of directors) is amended as follows. In paragraph 8(2) for “Chief Executive of the Prudential Regulation Authority” substitute “ chief executive for prudential regulation (see Schedule 6A) ”. In paragraph 11(1), after paragraph (c) insert—
Schedule 2A (Financial Policy Committee) is amended as follows. In paragraph 5 for “Oversight Committee” substitute “ court of directors of the Bank ”. In paragraph 6 for sub-paragraph (2) substitute— In paragraph 9— In paragraph 11— In paragraph 14— After paragraph 14 insert—
Schedule 3 (Monetary Policy Committee) is amended as follows. In paragraph 4(2) for “Oversight Committee” substitute “ court of directors of the Bank ”. For paragraph 5A substitute— In paragraph 8— In paragraph 9(1)— After paragraph 9(1) insert— In paragraph 14 for “submit a monthly” substitute “ , at least 8 times in each calendar year, submit a ”.
Schedule 7 (restriction on disclosure of information) is amended as follows. In paragraph 2(1)— In paragraph 3(1), in column 1 of the table, in the entry for the Financial Conduct Authority or the Prudential Regulation Authority omit “or the Prudential Regulation Authority”.
“transferred property” means any property, right or liability transferred from the company to the Bank by virtue of section 15.
In section 4(1) of the Bank of England Act 1946 (power of Treasury to give directions to the Bank)—
the words “monetary policy” become paragraph (a);
after that paragraph insert—
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices)—
omit “Member of the governing body of the Prudential Regulation Authority;”;
at the appropriate place insert— “ Member of the Prudential Regulation Committee of the Bank of England appointed under section 30A(2)(f) or (g) of the Bank of England Act 1998 ”.
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (other disqualifying offices)—
omit “Member of the governing body of the Prudential Regulation Authority;”;
at the appropriate place insert— “ Member of the Prudential Regulation Committee of the Bank of England appointed under section 30A(2)(f) or (g) of the Bank of England Act 1998 ”.
The following provisions are repealed. Short title and chapter Extent of repeal Banking Act 2009 (c. 1) Section 238(2). Financial Services Act 2012 (c. 21) Section 2(3). Section 3(3), (4)(a), (4)(b)(i) and (4)(d). In Schedule 2, paragraphs 1(13) and 2(7). Financial Services (Banking Reform) Act 2013 (c. 33) In Schedule 3, paragraph 17.
The Financial Services and Markets Act 2000 is amended as follows.
The Financial Services (Banking Reform) Act 2013 is amended as follows. Omit section 18(4) (which inserts the subsections substituted or omitted by paragraph 2). Omit section 20(3) (which inserts the subsection omitted by paragraph 4(4)). Omit section 23(6) (which inserts the subsections omitted by paragraph 6(4)). Omit section 33 (which inserts the section omitted by paragraph 18). For section 37(8) (interpretation) substitute— Omit section 136(2)(a) (which inserts the words omitted by paragraph 21).
Omit section 2O (independent reviews of PRA).
Omit section 2P (right to obtain documents etc for purposes of section 2O).
In section 3C (duty to follow principles of good governance), for “each regulator” substitute “ the FCA ”.
Section 3Q (co-operation by FCA and PRA with Bank of England) is amended as follows. In the heading, omit “and PRA”. In subsection (1), for “Each regulator” substitute “ The FCA ”. In subsection (2), for “regulator” substitute “ FCA ”.
In section 3R(2) (arrangements for provision of services by and to Bank of England)—
for “Either regulator” substitute “ The FCA ”;
in paragraphs (a) and (b), for “regulator” substitute “ FCA ”.
After section 3S insert—
Section 137J (rules about recovery plans) is amended as follows. In subsection (1), for paragraphs (a) and (b) substitute “ the Treasury ”. After subsection (1) insert—
Section 137K (rules about resolution packs) is amended as follows. In subsection (1), for paragraphs (a) and (b) substitute “ the Treasury ”. After subsection (1) insert—
Section 138F (notification of rules) is amended as follows. In subsection (1), for paragraphs (a) and (b) substitute “ to the Treasury ”. After subsection (1) insert— In subsection (2) for “(1)(b)” substitute “ (1A) ”.
Section 165 (regulators' power to require information: authorised persons etc) is amended as follows. In subsection (4)— After subsection (8) insert—
Section 165A (PRA's power to require information: financial stability) is amended as follows. In subsection (3)— After subsection (7) insert—
In section 187A(5A) (assessment: consultation by PRA with FCA) for “has been directed by the Bank of England under section 189(1A)” substitute “ is required by section 189(1ZB) ”.
Section 189 (assessment procedure) is amended as follows. In subsection (1A), for “But where” substitute “ Where the appropriate regulator is the FCA and ”. After subsection (1A) insert— In subsection (1B)—
In section 190(1A) (requests for further information), after “189(1A)” insert “ or section 189(1ZB) applies ”.
In section 192F(3) (consultation between regulators)—
for “either regulator” substitute “ the FCA ”;
for “the regulator” substitute “ it ”.
In section 192I(1)(a) (statement of policy relating to directions) after “regulator and” insert “ , where the issuing regulator is the FCA, ”.
In section 285A(3)(a) (which introduces Part 1 of Schedule 17A) for “and the PRA” substitute “ , and between the FCA and the PRA, ”.
In section 345A (PRA disciplinary measures) omit subsection (6).
Section 348 (restrictions on disclosure of confidential information) is amended as follows. In subsection (5)(aa) for “PRA” substitute “ Bank of England ”. At the end insert—
Section 353A (restriction on disclosing information received from Bank) is amended as follows. In subsection (1) for “A regulator” substitute “ The FCA ”. In subsection (3) for the words from “the regulator” to the end substitute “ the FCA received the information from the Bank of England. ” In subsection (4) for “regulator to which it disclosed the information” substitute “ FCA ”. In subsection (6)— In subsection (7)— In subsection (8)— In subsection (9)— After subsection (9) insert—
In section 354B(2) (PRA's duty to co-operate) for the words from “Bank” to the end substitute “ FCA (but see section 3D) ”.
Omit section 354C (PRA's general duty to provide information to Bank).
“Bank of England” is to be read in accordance with section 2A(4) to (6);
Schedule 1ZB (Prudential Regulation Authority) is amended as follows. In the shoulder note, for “2A” substitute “ 2AB. ” In paragraph 1— Omit paragraphs 2 to 16 and 18. In paragraph 19 (annual report)— Omit paragraphs 22 to 26. In paragraph 31—
Schedule 17A (exercise of Part 18 functions by Bank of England) is amended as follows. In paragraph 2(1) for “appropriate regulators” substitute “ FCA ”. In paragraph 17— In paragraph 23— In paragraph 35(3)—
The Financial Services Act 2012 is amended as follows.
In section 85(8) (definition of relevant functions) for “2A(6)” substitute “ 2AB(3) ”.
Section 117 (interpretation) is amended as follows. In subsection (2), in the definition of “the PRA”, at the end insert “ (and see section 2A of the Financial Services and Markets Act 2000 for the interpretation of references to the Prudential Regulation Authority) ”. After subsection (2) insert—
Section 17
In this Schedule—
“the company” means the body corporate originally incorporated as the Prudential Regulation Authority Limited and renamed as the Prudential Regulation Authority by section 2A of the Financial Services and Markets Act 2000 (as it had effect before section 12 came into force);
“the company” means the body corporate originally incorporated as the Prudential Regulation Authority Limited and renamed as the Prudential Regulation Authority by section 2A of the Financial Services and Markets Act 2000 (as it had effect before section 12 came into force);
“enactment” has the same meaning as in Part 1A of that Act (see section 3T);
The company may disclose to the Bank any information which the company considers that it is necessary or expedient to disclose to the Bank in preparation for the commencement of section 12. Section 348 of the Financial Services and Markets Act 2000 (restrictions on disclosure of confidential information) has effect subject to sub-paragraph (1).
Sub-paragraph (2) applies to any provision in a document other than an enactment that— After the function or the property is transferred, any references in the provision (however expressed)— are to be read, so far as is appropriate in consequence of the transfer, as to or including the Bank in its capacity as the Prudential Regulation Authority.
An order made under section 2A(6)(d) of the Financial Services and Markets Act 2000 before section 12 of this Act comes into force—
is not revoked by virtue of section 12 coming into force, and
may be amended or revoked as if made under section 2AB(3)(d) of the Financial Services and Markets Act 2000 (inserted by section 12).
Sub-paragraphs (2) and (3) apply to the first report under paragraph 19 of Schedule 1ZB to the Financial Services and Markets Act 2000 made by the Bank in its capacity as the Prudential Regulation Authority. The report must be made not later than a year after the last report made under that paragraph by the company. If section 12 came into force during the period to which the report relates (“the reporting period”), the report must deal with things done by the company during the reporting period before that section came into force (as well as things done by the Bank in its capacity as the Prudential Regulation Authority after that section came into force).
Section 2A(1) and (3) of the Financial Services and Markets Act 2000 (meaning of “Prudential Regulation Authority”) does not apply to an enactment if and to the extent that the enactment makes provision about a time before section 12 came into force. In relation to such a time references to the Prudential Regulation Authority are to the company.
Sub-paragraph (2) applies to the budget adopted by the company under paragraph 18 of Schedule 1ZB to the Financial Services and Markets Act 2000 for the financial year in which section 12 comes into force. After section 12 comes into force the budget is to be treated as the budget for the Bank’s functions as the Prudential Regulation Authority for the financial year to which it relates, adopted by the Prudential Regulation Committee of the Bank under paragraph 18 of Schedule 6A to the Bank of England Act 1998.
This paragraph applies for the purposes of Part 8 of the Corporation Tax Act 2009. Expressions used in this paragraph have the same meaning as in that Part. The transfer of a chargeable intangible asset is a tax-neutral transfer. An intangible fixed asset which is a pre-FA 2002 asset of the company at the time of the transfer is to be treated, on and after the transfer, as a pre-FA 2002 asset of the Bank. “Transfer” means a transfer from the company to the Bank by virtue of section 15.
The transfer of functions from the company to the Bank by virtue of section 12 does not affect the validity of anything done (or having effect as if done) by or in relation to the company before that section comes into force. The transfer of property, rights and liabilities from the company to the Bank by virtue of section 15 does not affect the validity of anything done (or having effect as if done) by or in relation to the company before that section comes into force.
Sub-paragraph (2) applies to anything that— Anything to which this sub-paragraph applies is to be treated, so far as is appropriate in consequence of the transfer, as done by or in relation to the Bank, in its capacity as the Prudential Regulation Authority.
There may be continued by or in relation to the Bank, in its capacity as the Prudential Regulation Authority, anything (including legal proceedings) that—
relates to a transferred function or transferred property, and
is in the process of being done by or in relation to the company immediately before the function or property is transferred.
Section 21
“secondary legislation” means an instrument made under primary legislation.
The Financial Services and Markets Act 2000 is amended as follows.
Section 59 (approval for particular arrangements) is amended as follows. For subsection (6A) substitute— Omit subsections (6B) and (6C).
After section 59ZA insert—
Section 60 (applications for approval) is amended as follows. In subsection (2A), omit— Omit subsection (2C). Omit subsection (6A).
Section 60A (vetting of candidates by relevant authorised persons) is amended as follows. In the heading omit “relevant”. In subsection (1) for “a relevant” substitute “an”. Omit subsection (3).
Section 61 (determination of applications) is amended as follows. In subsection (1)(b), omit from “in relation” to ““relevant senior” and insert “(a “senior”. In subsections (2B) and (3ZA) omit “relevant”. Omit subsections (6) and (7).
In section 62A(4) (changes in responsibilities of senior managers - definitions) omit the definition of “designated senior management function”.
In section 63(2A) (authorised person’s duty to review approvals)—
omit “relevant” in the first place it occurs;
omit the words after paragraph (b).
In the heading of section 63ZA (variation of senior manager’s approval at request of relevant authorised person) omit “relevant”.
Section 63ZB (variation of senior manager’s approval on initiative of regulator) is amended as follows. In subsection (1), for “a relevant” substitute “an”. In subsection (2)— Omit subsections (5) and (6).
Section 63E (certification of employees by relevant authorised persons) is amended as follows. In the heading omit “relevant”. In subsection (1), for “A relevant” substitute “An”. In subsection (3) for “a relevant”, in each place it occurs, substitute “an”. In subsection (4) omit “relevant” in each place it occurs. In subsection (6)(b) omit “relevant”. In subsection (8) omit the definition of “relevant PRA-authorised person”. Omit subsection (10).
Section 63F (issuing of certificates) is amended as follows. In subsection (1) for “A relevant” substitute “An”. In subsection (2) omit “relevant”. In subsection (4) for “a relevant” substitute “an”. In subsection (6) for “a relevant” substitute “an”. In subsection (7) for “A relevant” substitute “An”.
Section 64A (rules of conduct) is amended as follows. In subsection (1)(b), for the words from “relevant” to the end substitute “authorised persons”. In subsection (2)(c) omit “relevant”. In subsection (3) omit the definition of “relevant PRA-authorised person”.
Section 64B (conduct rules) is amended as follows. In the heading omit “relevant”. In subsection (2) omit “relevant” in the first place it occurs. In subsection (3) for “a relevant” substitute “an”. Omit subsection (7).
Section 64C (requirement to notify regulator of disciplinary action) is amended as follows. In the heading omit “relevant”. In subsection (1)— In subsection (3)— Omit subsection (5).
Section 66A (misconduct: action by FCA) is amended as follows. In subsection (2)(b)(ii) for “a relevant” substitute “an”. In subsection (3)(b)(ii) omit “in the case of a relevant authorised person,”. In subsection (5)(a) for “a relevant” substitute “an”. In subsection (7)— Omit subsection (9).
Section 66B (misconduct: action by PRA) is amended as follows. In subsection (2)(b)(ii) omit “relevant”. In subsection (3)(b), for sub-paragraph (ii) substitute—. In subsection (5)(a) omit “relevant”. In subsection (7)— In subsection (8) omit the definition of “relevant PRA-authorised person”. Omit subsection (9).
Omit section 71A (meaning of “relevant authorised person”).
Section 347 (record of authorised persons etc) is amended as follows. In subsection (2)— In subsection (8A)—
In section 415B(5) (consultation in relation to enforcement action), in the definition of “relevant senior management function”, for the words from “has been” to the end substitute “is a designated senior management function as defined by section 59ZB).”
In section 429(1)(a) (orders subject to affirmative resolution procedure) omit “71A(4),”.