Financial Services (Banking Reform) Act 2013
Section 2B of FSMA 2000 (the PRA's general objective) is amended as follows.
In subsection (3)—
at the end of paragraph (a), omit “and”, and
after paragraph (b) insert, and
In subsection (4), for “subsection (3)” substitute “ subsection (3)(a) and (b) ”.
After subsection (4) insert—
In section 2J of FSMA 2000 (interpretation of Chapter 2 of Part 1)—
in subsection (3), for “a PRA-authorised” substitute “ an authorised ”,
after that subsection insert—, and
in subsection (4), for “subsection (3)(a)” substitute “ subsections (3)(a) and (3A) ”.
After section 1I of FSMA 2000 insert—
In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (4)—
at the end of paragraph (a), omit “or”, and
at the end of paragraph (b), insert, or
After Part 9A of FSMA 2000 insert—
In section 133 of FSMA 2000 (proceedings before Tribunal), in subsection (7A), after paragraph (i) insert—.
In section 391 of FSMA 2000 (publication), in subsection (1ZB), after paragraph (i) insert—.
In section 392 of FSMA 2000 (application of sections 393 and 394)—
in paragraph (a), after “131H(1),” insert “ 142T(1), ”, and
in paragraph (b), after “131H(4),” insert “ 142T(4), ”.
In section 417 of FSMA 2000 (definitions), in subsection (1)—
“core activities” has the meaning given in section 142B; “core services” has the meaning given in section 142C;
“excluded activities” has the meaning given in section 142D;
“ring-fenced body” has the meaning given in section 142A; “ring-fencing rules” has the meaning given in section 142H;
In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)(c)(i), after “138N,” insert “ 142V, ”.
In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), in paragraph 16(3)(c)(i), after “69,” insert “ 142V, ”.
In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), paragraph 19 (annual report) is amended as follows.
After sub-paragraph (1) insert—
In sub-paragraph (2), for “Sub-paragraph (1) does not” substitute “ Sub-paragraphs (1) and (1A) do not ”.
Schedule 1 (which contains amendments of Part 7 of FSMA 2000 relating to ring-fencing transfer schemes) has effect.
The Treasury may by regulations—
make provision in relation to building societies for purposes corresponding to those of any provision made, in relation to authorised persons other than building societies, by or under any provision of Part 9B of FSMA 2000 (ring-fencing) apart from sections 142W to 142Y, and
provide for the application of the relevant continuity provision in relation to the exercise by the FCA or the PRA of any function conferred on it by or under provision made pursuant to paragraph (a).
The regulations may, in particular—
amend the Building Societies Act 1986;
apply any of the provisions contained in, or made under, Part 9B of FSMA 2000, with such modifications as the Treasury consider appropriate;
authorise the making of rules or other instruments by the FCA or the PRA for the purposes of, or for purposes connected with, any provision made by the regulations;
confer functions on the FCA or the PRA;
make such consequential provision including amendments of any enactment as the Treasury consider appropriate.
This section does not affect the application of section 142Y of FSMA 2000 (power of Treasury in relation to loss-absorbency requirements) to building societies that are relevant bodies for the purposes of that section.
In this section—
“third party”, in relation to an FMI transfer scheme or a modification of such a scheme, means a person other than the old company or the new company.
“the relevant continuity provision” means—
“enactment” includes—
“the new company” and “the old company” are to be read in accordance with paragraph 1;
In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.
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In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert “ payment ”.
an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,
“digital settlement asset” means a digital representation of value or rights, whether or not cryptographically secured, that—
After section 12 insert—
In section 49 (orders)— In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified classes of creditor,” substitute “ persons of a specified description, ”. After section 52 insert— In section 53 (onward and reverse transfers), in subsection (1)— In section 54 (independent valuer)— In section 56 (independent valuer: money), in subsection (2)(b) for “or third party compensation order” substitute “ , third party compensation order or bail-in compensation order ”. In section 57 (valuation principles), in subsection (1), after “order” insert “ or bail-in compensation order ”. After section 60 insert— In section 61(1) (sources of compensation),— In section 62(1) (procedure), omit the “and” at the end of paragraph (b), and after that paragraph insert—.
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in subsection (1), before paragraph (a) insert—;
after subsection (1) insert—;
in subsection (2), in the substituted section 13(1), for “third” substitute “fourth”.
Section 1 (overview) is amended as follows. In subsection (2)(a), for “three” substitute “ four ”. For subsection (3) substitute— In subsection (4)—
After section 8 insert—
In section 13 (temporary public ownership), in subsection (1), for “third” substitute “ fourth ”.
In section 17 (share transfers: effect)—
in subsection (1), after “order” insert, “ or by a resolution instrument ”;
in subsection (5), after “order” insert “ or a resolution instrument ”;
in subsection (6), after “order” insert “ or a resolution instrument ”.
In section 18 (share transfers: continuity), after subsection (5) insert—
In section 44 (reverse property transfer)—
in subsection (2), after “more” insert “ bridge bank ”;
in subsection (3), after “more” insert “ bridge bank ”;
in subsection (4), for “A reverse” substitute “ A bridge bank reverse ”;
in subsection (4A)—
after “make a” insert “ bridge bank ”, and
in paragraph (b), for “the reverse” substitute “ the bridge bank reverse ”;
in subsection (5), for “a reverse” substitute “ a bridge bank reverse ”;
in subsection (6), for “a reverse” substitute “ a bridge bank reverse ”;
in subsection (7), for “a reverse” substitute “ a bridge bank reverse ”;
in the heading, for “Reverse” substitute “ Bridge bank: reverse ”.
In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute “ , 12(2) or 41A(2) ”.
In section 66 (general continuity obligation: share transfers)—
in subsection (1)(a), after “13(2)” insert “ , or which falls within subsection (1A) ”;
in subsection (1)(d)(i), after “11(2)(a)” insert “ , or in a case falling within subsection (1A) ”;
after subsection (1) insert—
In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert “ or resolution instrument ”.
In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert “ a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a ”.
In section 71 (pensions), in subsection (1)—
omit the “and” at the end of paragraph (b);
after paragraph (c) insert, and
In section 72 (enforcement), in subsection (1)—
omit the “or” at the end of paragraph (b);
after paragraph (c) insert, or
In section 73 (disputes), in subsection (1)—
omit the “and” at the end of paragraph (b);
after paragraph (c) insert, and
In section 74 (tax), in subsection (6), for “or 45” substitute “ , 45, 48U or 48V ”.
After section 80 insert—
In section 81A (accounting information to be included in reports under sections 80 and 81)—
in subsection (1), for “or 81” substitute “ , 80A(2)(b) or 81 ”;
in the heading, for “and 81” substitute “ , 80A(2)(b) and 81 ”.
In section 85 (temporary public ownership), in subsection (1), for “third” substitute “ fourth ”.
In section 136 (overview), in the Table in subsection (3), for “152” substitute “ 152A ”.
After section 152 insert—
In section 220 (insolvency etc), after subsection (4) insert—
In section 259 (statutory instruments)—
in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute “ Third party compensation: partial property transfers ”;
48F(1) and (2) Power to amend definition of “excluded liabilities” Draft affirmative resolution 48G Insolvency treatment principles Draft affirmative resolution 48P Safeguarding of certain financial arrangements Draft affirmative resolution 52A Bail-in compensation orders Draft affirmative resolution” “60A Third party compensation: instruments containing special bail-in provision Draft affirmative resolution
152A Property transfer from transferred institution Draft affirmative resolution
in subsection (5), after paragraph (d) insert—;
in subsection (5), after paragraph (k) insert—.
Bail-in compensation order 49” “Resolution instrument 12A” “Special bail-in provision 48B
“business”, “member”, “property” and “security” have the same meaning as in the 1986 Act;
The Treasury must, before the end of the initial period, appoint a panel of at least 5 persons (“the review panel”) to carry out a review of the operation of the legislation relating to ring-fencing.
“The legislation relating to ring-fencing” means—
Part 9B of FSMA 2000 (as inserted by section 4);
orders and regulations made by the Treasury under that Part;
ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;
section 192JA of FSMA 2000 (as inserted by section 133);
rules made by the FCA or the PRA under that section.
The initial period is the period of 2 years beginning with the first day on which section 142G of FSMA 2000 is fully in force.
The members of the review panel must be persons—
who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and
who do not appear to the Treasury to have any financial or other interests that could reasonably be regarded as affecting their suitability to serve as members of the review panel.
In appointing the members of the review panel, the Treasury—
must have regard to the need to ensure that the review panel (considered as a whole) has the necessary experience to undertake the review, and
must ensure that at least one of the members is a person appearing to the Treasury to have substantial experience in central banking or banking regulation at a senior level.
Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.
The reference in subsection (6) to the Treasury Committee of the House of Commons— and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.
if the name of that Committee is changed, is a reference to that Committee by its new name, and
if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, is to be treated as a reference to the Committee by which the functions are exercisable;
The Treasury must appoint one of the members of the review panel to be the chair of the panel.
The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—
setting out the results of the review, and
making such recommendations (if any) as the panel considers appropriate.
The Treasury must—
lay a copy of the report before Parliament, and
publish the report in such manner as they think fit.
Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.
The PRA must carry out a review of proprietary trading engaged in (whether or not as a regulated activity) by relevant authorised persons, for the purpose of considering whether further restrictions on any kind of proprietary trading ought to be imposed.
The review must begin before the end of the 12 months beginning with the first day on which section 142G of FSMA 2000 is fully in force.
On completion of the review, the PRA must make a written report to the Treasury on—
the extent to which relevant authorised persons engage in proprietary trading;
whether proprietary trading engaged in by relevant authorised persons gives rise to any risks to their safety and soundness;
whether any kinds of proprietary trading are particularly likely to give rise to such risks;
anything done by the PRA to minimise risks to the safety and soundness of relevant authorised persons arising from proprietary trading engaged in by them;
any difficulties encountered by the PRA in seeking to minimise such risks.
The report must include an assessment by the PRA of each of the following—
whether the PRA's powers under FSMA 2000 are, and might be expected to continue to be, sufficient to enable it to advance its objectives in relation to relevant authorised persons who engage in proprietary trading;
the effectiveness of restrictions imposed in countries or territories outside the United Kingdom on proprietary trading by banks (so far as experience in those countries or territories appears to the PRA to be of relevance to the United Kingdom).
The report must be made within 9 months of the beginning of the review.
The Treasury must lay a copy of the report before Parliament.
The PRA must publish the report in such manner as it thinks fit.
The functions of the PRA under this section are to be taken for the purposes of FSMA 2000 to be functions under that Act.
This section is to be read with the interpretative provisions in section 11.
The Treasury must, after receiving the report of the PRA under section 9 but before the end of the initial period, appoint one or more persons (“the review panel”) to carry out a review of proprietary trading engaged in (whether or not as a regulated activity) by relevant authorised persons.
The initial period is the period of 2 years beginning with the first day on which section 142G of FSMA 2000 is fully in force.
The members of the review panel must be persons—
who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and
who do not appear to the Treasury to have any financial or other interests that could reasonably be regarded as affecting their suitability to serve as members of the review panel.
In appointing the members of the review panel, the Treasury must have regard to the need to ensure that the review panel (considered as a whole) has the necessary experience to undertake the review.
Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.
The reference in subsection (5) to the Treasury Committee of the House of Commons— and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.
if the name of that Committee is changed, is a reference to that Committee by its new name, and
if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, is to be treated as a reference to the Committee by which the functions are exercisable;
If the review panel consists of two or more members, the Treasury must appoint one of them to be the chair of the panel.
The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—
stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,
stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and
making such other recommendations as the panel thinks fit.
The Treasury must—
lay a copy of the report before Parliament, and
publish the report in such manner as they think fit.
Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.
This section is to be read with the interpretative provisions in section 11.
This section has effect for the interpretation of sections 9 and 10.
A person engages in “proprietary trading” where the person trades in commodities or financial instruments as principal.
In subsection (2)—
“commodity” includes any produce of agriculture, forestry or fisheries, or any mineral, either in its natural state or having undergone only such processes as are necessary or customary to prepare the produce or mineral for the market;
“financial instrument” includes anything specified in Section C of Annex I to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.
“Relevant authorised person” means a PRA-authorised person which—
is a UK institution,
meets condition A or B, and
is not an insurer.
Condition A is that the UK institution has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.
Condition B is that—
the institution is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),
it has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and
when carried on by it, that activity is a PRA-regulated activity.
In subsections (4) to (6)—
“UK institution” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;
“insurer” means an institution which is authorised under FSMA 2000 to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;
“PRA-authorised person” and “PRA-regulated activity” have the same meaning as in FSMA 2000.
Subsections (5), (6)(b) and (7)(b) are to be read in accordance with section 22 of FSMA 2000, taken with Schedule 2 to that Act and any order under that section.
A review panel appointed under section 8 or 10—
has a right of access at any reasonable time to all such documents as the panel may reasonably require for the purposes of the review, and
may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.
An obligation imposed on a person as a result of the exercise of the powers conferred by subsection (1) is enforceable by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
In Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) after paragraph 15A insert—
In section 386 of the Insolvency Act 1986 (categories of preferential debt), in subsection (1), after “production” insert “ ; deposits covered by Financial Services Compensation Scheme ”.
In Part 1 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (list of preferred debts), after paragraph 6A insert—
In Part 2 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (interpretation of Part 1), after paragraph 9 insert—
After section 224 of FSMA 2000 insert—
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Section 212 of FSMA 2000 (the scheme manager of the Financial Services Compensation Scheme) is amended as follows.
In subsection (3)—
omit the “and” following paragraph (a),
after that paragraph insert—, and
in paragraph (b), after “chairman” insert “ and chief executive ”.
In subsection (4)—
after “chairman”, in the first place, insert “ , chief executive ”, and
after “chairman”, in the second place, insert “ and the chief executive ”.
Schedule 2 (which contains amendments relating to a new stabilisation option in Part 1 of the Banking Act 2009) has effect.
The Treasury may by order make any provision they consider appropriate in consequence of the application to building societies of the amendments made by this Part.
An order may, in particular—
enable the Bank of England, for the purpose of enabling it to exercise in relation to the business of a building society any of the powers exercisable as a result of the amendments made by this Part—
to convert the building society into a company, or
to transfer the business of the building society to a company which immediately before the transfer is owned by the Bank or by a person of a description specified in the order;
enable the Bank of England, in connection with the exercise of a power conferred by virtue of paragraph (a), to cancel membership rights or shares in the building society;
provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—
into which the building society is converted, or
to which the business of the building society is transferred;
enable the Bank of England, in a case where it has transferred the business of a building society by virtue of paragraph (a)(ii), to dissolve the building society at any time after the transfer;
confer functions on the Treasury, the Bank of England, the FCA, the PRA or a resolution administrator;
make further amendments of Part 1 of the Banking Act 2009;
amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.
Subsection (3) applies to any enactment (including a fiscal enactment) 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.
In this section—
“core services” has the same meaning as in FSMA 2000 (see section 142C of that Act), and
In this Schedule—
“the Regulator” means the Payment Systems Regulator;
references to the functions of the Regulator are to functions conferred on it by or under this Part.
The Regulator must adopt an annual budget which has been approved by the FCA. The budget must be adopted— The Regulator may, with the approval of the FCA, vary the budget for a financial year at any time after its adoption. Before adopting or varying a budget, the Regulator must consult— The Regulator must publish each budget, and each variation of a budget, in the way it considers appropriate.
At least once a year, the Regulator must make a report to the FCA in relation to the discharge of its functions. The report must— The Regulator must publish each report in the way it considers appropriate. Nothing in this paragraph requires the Regulator to make a report at any time in the period of 12 months beginning with its establishment. 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. The FCA's power to make rules under sub-paragraph (2)(d) is to be treated as if it were a power of the FCA to make rules under FSMA 2000 (and rules made under sub-paragraph (2)(d) are to be treated accordingly).
The Regulator must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs. The Regulator's “penalty receipts” in respect of a financial year are any amounts received by it during the year by way of penalties imposed under section 73. The Regulator's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with— For the purposes of sub-paragraph (3) the Regulator's enforcement powers are— In sub-paragraph (4) “relevant offences” means— The Treasury may give directions to the Regulator as to how it is to comply with its duty under sub-paragraph (1). The directions may in particular— The directions may also require the Regulator to provide the Treasury at specified times with specified information relating to— The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.
The Regulator must prepare and operate a scheme (“the financial penalty scheme”) for ensuring that the amounts that, as a result of the deduction for which paragraph 10(1) provides, are retained by the Regulator in respect of amounts paid to it by way of penalties imposed under section 73 are applied for the benefit of participants in regulated payment systems. The financial penalty scheme may, in particular, make different provision with respect to different classes of participant. The financial penalty scheme must ensure that those who have become liable to pay a penalty to the Regulator in any financial year do not receive any benefit under the scheme in the following financial year. Up-to-date details of the financial penalty scheme must be set out in a document (the “scheme details”).
The scheme details must be published by the Regulator in the way appearing to it to be best calculated to bring them to the attention of the public. Before making the financial penalty scheme, the Regulator must publish a draft of the proposed scheme in the way appearing to the Regulator to be best calculated to bring it to the attention of the public. The draft must be accompanied by notice that representations about the proposals may be made to the Regulator within a specified time. Before making the scheme, the Regulator must have regard to any representations made to it in accordance with sub-paragraph (3). If the Regulator makes the proposed scheme, it must publish an account, in general terms, of— If the scheme differs from the draft published under sub-paragraph (2) in a way which is, in the opinion of the Regulator, significant, the Regulator must (in addition to complying with sub-paragraph (5)) publish details of the difference. The Regulator must, without delay, give the Treasury a copy of any scheme details published by it. The Regulator may charge a reasonable fee for providing a person with a copy of— Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.
“digital settlement asset exchange provider” has the meaning given by section 182(5B) of the Banking Act 2009;
It is for the FMI administrator, while the FMI administration order is in force, to act on behalf of the old company in the doing of anything that it is authorised or required to do by or under this Schedule.
An FMI transfer scheme may make incidental, supplemental, consequential and transitional provision in connection with the other provisions of the scheme. An FMI transfer scheme may in particular make provision, in relation to a provision of the scheme— Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation. An FMI transfer scheme may make provision for disputes between the old company and the new company as to the effect of the scheme to be referred to such arbitration as may be specified in or determined under the scheme. Where a person is entitled, in consequence of an FMI transfer scheme, to possession of a document relating in part to the title to land or other property in England and Wales, or to the management of such land or other property— Where a person is entitled, in consequence of an FMI transfer scheme, to possession of a document relating in part to the title to land or other property in Scotland or to the management of such land or other property, subsections (1) and (2) of section 16 of the Land Registration (Scotland) Act 1979 (omission of certain clauses in deeds) is to have effect in relation to the transfer— Where a person is entitled, in consequence of an FMI transfer scheme, to possession of a document relating in part to the title to land or other property in Northern Ireland or to the management of such land or other property— In this paragraph references to a transfer in accordance with an FMI transfer scheme include references to the creation in accordance with such a scheme of an interest, right or liability.
An FMI transfer scheme may contain provision about— For this purpose property, or a right, interest or liability, is “foreign” if an issue relating to it arising in any proceedings would (in accordance with the rules of private international law) be determined under the law of a country or territory outside the United Kingdom.
Section 100 (regulated terms etc: distributions and share rights) is amended as follows. For subsection (8) substitute— who— and
“payment system” has the meaning given by section 41;
Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.
Omit subsection (5).
For subsection (6) substitute—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Omit subsections (7) to (7B) and (11).
After section 59 of FSMA 2000 insert—
Section 60 of FSMA 2000 (applications for approval) is amended as follows.
After subsection (2) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section 60 of FSMA 2000 insert—
In section 61 of FSMA 2000 (determination of applications), in subsection (2)—
omit the “or” at the end of paragraph (b), and
after paragraph (c) insertor .
Section 61 of FSMA 2000 (determination of applications) is amended as follows.
For subsection (1) substitute—
In subsection (2), for “deciding that question” substitute “ determining the application ”.
After subsection (2A) insert—
After subsection (3) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 62 of FSMA 2000 (applications for approval: procedure and right to refer to Tribunal)—
in subsection (2), after “the application” insert “ , or to grant the application subject to conditions or for a limited period (or both) ”;
in subsection (3), after “the application” insert “ , or to grant the application subject to conditions or for a limited period (or both) ”;
in subsection (4), after “the application” insert “ , or to grant the application subject to conditions or for a limited period (or both) ”.
After section 62 of FSMA 2000 insert—
In section 63 of FSMA 2000 (withdrawal of approval), after subsection (2) insert—
After section 63 of FSMA 2000 insert—
After section 63ZC of FSMA 2000 (inserted by section 26 above) insert—
Section 63A of FSMA 2000 (power to impose penalties) is amended as follows.
In subsection (4), for “period of three years” substitute “ relevant period ”.
After subsection (5A) insert—
Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.
In subsection (4), for “period of three years” substitute “ relevant period ”.
After subsection (5) insert—
After section 63D of FSMA 2000 insert—
Part 5 of FSMA 2000 (performance of regulated activities) is amended as follows.
Omit sections 64 and 65 (and the italic cross-heading preceding them).
Before section 66 insert—
After section 64B of FSMA 2000 (inserted by section 30 above) insert—
In section 66 of FSMA 2000 (disciplinary powers)—
after subsection (1) insert—;
omit subsections (2), (2A), (6) and (7).
After that section insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 347 of FSMA 2000 (the record of authorised persons etc.) is amended as follows.
In subsection (2)—
in paragraph (g), after sub-paragraph (iii) insert—;
after that paragraph insert—
After subsection (8) insert—
For subsection (9) substitute—
Schedule 3 (which contains further amendments relating to the provisions of this Part) has effect.
A person (“S”) commits an offence if—
at a time when S is a senior manager in relation to a financial institution (“F”), S—
takes, or agrees to the taking of, a decision by or on behalf of F as to the way in which the business of a group institution is to be carried on, or
fails to take steps that S could take to prevent such a decision being taken,
at the time of the decision, S is aware of a risk that the implementation of the decision may cause the failure of the group institution,
in all the circumstances, S's conduct in relation to the taking of the decision falls far below what could reasonably be expected of a person in S's position, and
the implementation of the decision causes the failure of the group institution.
A “group institution”, in relation to a financial institution (“F”), means F or any other financial institution that is a member of F's group for the purpose of FSMA 2000 (see section 421 of that Act).
Subsections (1) and (2) are to be read with the interpretative provisions in section 37.
A person guilty of an offence under this section is liable—
on summary conviction—
in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court (or 6 months, if the offence was committed before 2 May 2022) or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;
in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;
on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.
This section has effect for the interpretation of section 36.
“Financial institution” means a UK institution which—
meets condition A or B, and
is not an insurer or a credit union.
Condition A is that it has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.
Condition B is that—
it is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),
it has permission under Part 4A of that Act to carry on the regulated activity of dealing in investments as principal, and
when carried on by it, that activity is a PRA-regulated activity.
In subsection (2)—
“UK institution” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;
“insurer” means an institution which is authorised under FSMA 2000 to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;
“credit union” means a credit union as defined by section 31 of the Credit Unions Act 1979 or a credit union as defined by Article 2(2) of the Credit Unions (Northern Ireland) Order 1985.
Subsections (3), (4) and (5)(b) are to be read in accordance with sections 22 and 22A of FSMA 2000, taken with Schedule 2 to that Act and any order under section 22.
A person is a “senior manager” in relation to a financial institution if, under an arrangement entered into by the institution, or by a contractor of the institution, in relation to the carrying on by the institution of a regulated activity, the person performs a senior management function.
“Senior management function” means—
by the FCA under subsection (6A) of section 59 of FSMA 2000 (approval for particular arrangements), or
a function of a description specified in rules made by the FCA under section 59(3)(a) or (b) of FSMA 2000 which is designated as a senior management function by the FCA under section 59(6A) of that Act;
by the PRA under subsection (6B) of that section.
a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.
A financial institution (“F”) is to be regarded as failing where—
F enters insolvency,
any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to F, or
F is taken for the purposes of the Financial Services Compensation Scheme to be unable, or likely to be unable, to satisfy claims against F.
In subsection (9)(a) “insolvency” includes—
bankruptcy,
liquidation,
bank insolvency,
administration,
building society insolvency,
bank administration,
investment bank insolvency,
receivership,
a composition between F and F's creditors, and
a scheme of arrangement of F's affairs.
building society special administration,
For the purposes of subsection (10)—
“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 this section “an offence” means an offence under section 36.
Proceedings for an offence may be instituted in England and Wales only—
by the FCA, the PRA or the Secretary of State, or
by or with the consent of the Director of Public Prosecutions.
Proceedings for an offence may be instituted in Northern Ireland only—
by the FCA, the PRA or the Secretary of State, or
by or with the consent of the Director of Public Prosecutions for Northern Ireland.
In exercising its power to institute proceedings for an offence, the FCA or the PRA must comply with any conditions or restrictions imposed in writing by the Treasury.
Conditions or restrictions may be imposed under subsection (4) in relation to—
proceedings generally, or
such proceedings, or categories of proceedings, as the Treasury may direct.
This Part contains provision for the establishment of a new body (the “Payment Systems Regulator”) to exercise functions in relation to payment systems.
Section 40 provides for the establishment of the Payment Systems Regulator.
Sections 41 and 42 contain definitions of “payment system” and related terms.
Sections 43 to 48 make provision about designating a payment system as a regulated payment system.
Sections 49 to 53 contain provision about the general duties of the Payment Systems Regulator under this Part.
Sections 54 to 67 confer various regulatory and competition functions on the Payment Systems Regulator.
Sections 68 to 70 contain provision about the making of complaints to the Payment Systems Regulator.
Sections 71 to 80 contain provision about enforcement and appeals.
Sections 81 to 95 contain information and investigation powers and provision about the disclosure of information.
Sections 96 to 97D contain supplementary powers.
Sections 98 to 102 contain provision about the Payment Systems Regulator's relationship with other regulators.
Sections 103 to 107A contain provision about consultation, accountability and oversight.
Sections 102A and 102B contain provision about Treasury powers to make recommendations in connection with the Payment Systems Regulator’s general duties and to specify matters to which the Regulator must have regard when exercising certain functions.
Sections 108 to 110 contain miscellaneous and supplemental provision.
The FCA must establish a body corporate to exercise the functions conferred on the body by or under this Part.
The body established under subsection (1) is referred to in this Part as the Payment Systems Regulator.
The FCA must take such steps as are necessary to ensure that the Payment Systems Regulator is, at all times, capable of exercising the functions referred to in subsection (1).
In complying with the duty imposed by subsection (3) the FCA may, in particular—
provide staff to the Payment Systems Regulator, and
provide services to the Payment Systems Regulator which the FCA considers would facilitate the exercise of any of those functions.
Schedule 4 (which contains further provision about the Payment Systems Regulator) has effect.
In this Part “payment system” means a system which is operated by one or more persons in the course of business for the purpose of enabling persons to make transfers of funds, and includes a system which is designed to facilitate the transfer of funds using another payment system.
But “payment system” does not include—
any arrangements for the physical movement of cash;
a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;
a securities settlement system operated by a recognised CSD;
a system operated by a recognised clearing house or a recognised CSD;
any other system whose primary purpose is not that of enabling persons to transfer funds.
In this section—
“investigator” means a person appointed under section 83.
In this Part—
The Treasury may by order amend this section so as to—
add descriptions of systems or arrangements that are not to be regarded as payment systems, or
vary or remove any such description.
In this section, “digital settlement asset” includes a right to, or interest in, a digital settlement asset.
The Treasury may by regulations amend the definition of “digital settlement asset” in subsection (2A).
This section applies for the purposes of this Part.
The following persons are “participants” in a payment system— (But see also subsection (8).)
the operator of the payment system (see subsection (3));
any infrastructure provider (see subsection (4));
any payment service provider (see subsections (5) and (5A)).
“Operator”, in relation to a payment system, means any person with responsibility under the system for managing or operating it; and any reference to the operation of a payment system includes a reference to its management.
“Infrastructure provider”, in relation to a payment system, means any person who provides or controls any part of the infrastructure used for the purposes of operating the payment system.
“Payment service provider”, in relation to a payment system, means any person who provides services to persons who are not participants in the system for the purposes of enabling the transfer of funds using the payment system.
A payment service provider has “direct access” to a payment system if the payment service provider is able to provide services for the purposes of enabling the transfer of funds using the payment system as a result of arrangements made between the payment service provider and the operator of the payment system.
“Payment service provider” in relation to a payment system that includes arrangements using digital settlement assets means—
a person responsible for managing the issuance and redemption of digital settlement assets;
a person whose business or occupation is to safeguard, or to safeguard and administer digital settlement assets, including their private cryptographic keys (or means of access);
a digital settlement asset exchange provider;
a person who—
sets rules, standards, or conditions of access or participation in relation to the system, or
provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the system, including any infrastructure provider in relation to the system.
Any reference to participation in a payment system is to be read in accordance with this section, and in particular—
in the case of an operator of a payment system, includes a reference to developing the system, and
in the case of a payment service provider with direct access to a payment system, includes a reference to entering into an agreement with a person to enable the person to become a payment service provider in relation to the system.
The Bank of England is not to be regarded as a participant of any kind in any payment system.
The Treasury may by order (a “designation order”) designate a payment system as a regulated payment system for the purposes of this Part.
A designation order must specify in as much detail as is reasonably practicable the arrangements that constitute the payment system.
The Treasury may make a designation order in respect of a payment system only if they are satisfied that any deficiencies in the design of the system, or any disruption of its operation, would be likely to have serious consequences for those who use, or are likely to use, the services provided by the system.
In considering whether to make a designation order in respect of a payment system, the Treasury must have regard to—
the number and value of the transactions that the system presently processes or is likely to process in the future,
the nature of the transactions that the system presently processes or is likely to process in the future,
whether those transactions or their equivalent could be handled by other payment systems, and
the relationship between the system and other payment systems.
Before making a designation order in respect of a payment system the Treasury must—
consult the Payment Systems Regulator and, if the system is a recognised ... payment system, the Bank of England,
notify the operator of the system, and
consider any representations made.
In considering whether to make a designation order in respect of a payment system, the Treasury may rely on information provided by—
the Bank of England,
the FCA,
the PRA, or
the Payment Systems Regulator.
The Treasury may amend a designation order.
Before amending a designation order made in respect of a payment system, the Treasury must—
consult the Payment Systems Regulator and, if the payment system is a recognised ... payment system, the Bank of England,
notify the operator of the payment system, and
consider any representations made.
The Treasury must consider any request by the operator of a regulated payment system for the amendment of its designation order.
The Treasury may revoke a designation order.
The Treasury must revoke a designation order if they are not satisfied that the criteria in section 44 are met in respect of the payment system to which the order relates.
Before revoking a designation order made in respect of a payment system, the Treasury must—
consult the Payment Systems Regulator and, if the payment system is a recognised ... payment system, the Bank of England,
notify the operator of the payment system, and
consider any representations made.
The Treasury must consider any request by the operator of a regulated payment system for the revocation of its designation order.
The Treasury must publish any designation order.
If the Treasury amends a designation order, the Treasury must publish the amended order.
The Treasury must publish any revocation of a designation order.
In discharging its general functions relating to payment systems the Payment Systems Regulator must, so far as is reasonably possible, act in a way which advances one or more of its payment systems objectives.
The payment systems objectives of the Payment Systems Regulator are—
the competition objective (see section 50),
the innovation objective (see section 51), and
the service-user objective (see section 52).
In discharging its general functions relating to payment systems the Payment Systems Regulator must have regard to—
the importance of maintaining the stability of, and confidence in, the UK financial system,
the importance of payment systems in relation to the performance of functions by the Bank of England in its capacity as a monetary authority, and
the regulatory principles in section 53.
The general functions of the Payment Systems Regulator relating to payment systems are—
its function of giving general directions under section 54 (considered as a whole),
its functions in relation to the giving of general guidance under section 96 (considered as a whole), and
its function of determining the general policy and principles by reference to which it performs particular functions.
The competition objective is to promote effective competition in— in the interests of those who use, or are likely to use, services provided by payment systems.
the market for payment systems, and
the markets for services provided by payment systems,
The reference in subsection (1) to promoting effective competition includes, in particular, promoting effective competition—
between different operators of payment systems,
between different payment service providers, and
between different infrastructure providers.
The matters to which the Payment Systems Regulator may have regard in considering the effectiveness of competition in a market mentioned in subsection (1) include—
the needs of different persons who use, or may use, services provided by payment systems;
the ease with which persons who may wish to use those services can do so;
the ease with which persons who obtain those services can change the person from whom they obtain them;
the needs of different payment service providers or persons who wish to become payment service providers;
the ease with which payment service providers, or persons who wish to become payment service providers, can provide services using payment systems;
the ease with which payment service providers can change the payment system they use to provide their services;
the needs of different infrastructure providers or persons who wish to become infrastructure providers;
the ease with which infrastructure providers, or persons who wish to become infrastructure providers, can provide infrastructure for the purposes of operating payment systems;
the needs of different operators of payment systems;
the ease with which operators of payment systems can change the infrastructure used to operate the payment systems;
the level and structure of fees, charges or other costs associated with participation in payment systems;
the ease with which new entrants can enter the market;
how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems;
how far competition is encouraging innovation.
The innovation objective is to promote the development of, and innovation in, payment systems in the interests of those who use, or are likely to use, services provided by payment systems, with a view to improving the quality, efficiency and economy of payment systems.
The reference in subsection (1) to promoting the development of, and innovation in, payment systems includes, in particular, a reference to promoting the development of, and innovation in, infrastructure to be used for the purposes of operating payment systems.
The service-user objective is to ensure that payment systems are operated and developed in a way that takes account of, and promotes, the interests of those who use, or are likely to use, services provided by payment systems.
The regulatory principles referred to in section 49(3)(c) are as follows—
the need to use the resources of the Payment Systems Regulator in the most efficient and economic way;
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 desirability of sustainable growth in the economy of the United Kingdom in the medium or long term , including in a way consistent with contributing towards achieving compliance by the Secretary of State with section 1 of the Climate Change Act 2008 (UK net zero emissions target) and section 5 of the Environment Act 2021 (environmental targets) where the Payment Systems Regulator considers the exercise of its functions to be relevant to the making of such a contribution;
the general principle that those who use services provided by payment systems should take responsibility for their decisions;
the responsibilities of the senior management of persons subject to requirements imposed by or under this Part, including those affecting persons who use services provided by payment systems, in relation to compliance with those requirements;
the desirability where appropriate of the Payment Systems Regulator exercising its functions in a way that recognises differences in the nature of, and objectives of, businesses carried on by different persons subject to requirements imposed by or under this Part;
the desirability in appropriate cases of the Payment Systems Regulator publishing information relating to persons on whom requirements are imposed by or under this Part, or requiring such persons to publish information, as a means of contributing to the advancement by the Payment Systems Regulator of its payment systems objectives;
the principle that the Payment Systems Regulator should exercise its functions as transparently as possible.
The Payment Systems Regulator may give directions in writing to participants in regulated payment systems.
A direction given to a participant in a regulated payment system may—
require or prohibit the taking of specified action in relation to the system;
set standards to be met in relation to the system.
A direction under this section may apply—
generally,
in relation to—
all operators, or every operator of a regulated payment system of a specified description,
all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or
all payment service providers, or every person who is a payment service provider in relation to a regulated payment system of a specified description, or
in relation to specified persons or persons of a specified description.
The Payment Systems Regulator must publish any direction given under this section that applies as mentioned in subsection (3)(a) or (b).
A direction under this section that applies as mentioned in subsection (3)(a) or (b) is referred to in this Part as a “general direction”.
The Payment Systems Regulator may require the operator of a regulated payment system—
to establish rules for the operation of the system;
to change the rules in a specified way or so as to achieve a specified purpose;
to notify the Payment Systems Regulator of any proposed change to the rules;
not to change the rules without the approval of the Payment Systems Regulator.
A requirement under subsection (1)(c) or (d) may be general or specific.
A requirement under this section that is imposed on— is referred to in this Part as a “generally-imposed requirement”.
all operators of regulated payment systems, or
every operator of a regulated payment system of a specified description,
This section applies where a person (“the applicant”) applies for an order under this section.
The Payment Systems Regulator may by order require the operator of a regulated payment system to enable the applicant to become a payment service provider in relation to the system.
The Payment Systems Regulator may by order require any payment service provider with direct access to a regulated payment system to enter into an agreement with the applicant to enable the applicant to become a payment service provider in relation to the system.
An order under this section may provide for the applicant to become a payment service provider in relation to a payment system—
for a period specified in the order;
on terms and conditions specified in the order.
This section applies to the following agreements—
any agreement made between the operator of a regulated payment system and a payment service provider;
any agreement made between a payment service provider with direct access to a regulated payment system and another person for the purpose of enabling that other person to become a payment service provider in relation to the system;
any agreement concerning fees or charges payable in connection with—
participation in a regulated payment system, or
the use of services provided by a regulated payment system.
The Payment Systems Regulator may, on the application of a party to an agreement to which this section applies, vary the agreement by—
varying any of the fees or charges payable under the agreement, or
in the case of an agreement within subsection (1)(a) or (b), varying any other terms and conditions relating to the payment service provider's participation in the payment system.
In the case of an agreement within subsection (1)(b), the reference in subsection (2)(b) to the payment service provider is to the payment service provider which does not have direct access to the payment system.
The power under this section to vary any fee or charge includes power to specify a maximum fee or charge.
If the Payment Systems Regulator varies an agreement under this section, the agreement has effect subject to the variation.
The Payment Systems Regulator may require a person who has an interest in — to dispose of all or part of that interest.
the operator of a regulated payment system, or
an infrastructure provider in relation to such a system,
The power conferred by subsection (1) may be exercised only if the Payment Systems Regulator is satisfied that, if the power is not exercised, there is likely to be a restriction or distortion of competition in—
the market for payment systems, or
a market for services provided by payment systems.
The Payment Systems Regulator may not exercise the power conferred by subsection (1) without the consent of the Treasury.
The reference in subsection (2) to a restriction or distortion of competition includes, in particular, a restriction or distortion of competition—
between different operators of payment systems,
between different payment services providers, or
between different infrastructure providers.
If the Payment Systems Regulator decides to exercise the power conferred by subsection (1) in relation to a person who has an interest in the operator of a regulated payment system—
the Payment Systems Regulator must notify the relevant competition authorities (see subsection (5)), and
the relevant competition authorities may not take any action in relation to the person that would require the person to dispose of all or part of that interest.
The relevant competition authorities are—
the Secretary of State,
the Competition and Markets Authority, and
the FCA.
The functions to which this subsection applies are to be concurrent functions of the Payment Systems Regulator and the Competition and Markets Authority (“the CMA”).
Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—
are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and
relate to participation in payment systems.
But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002— section 166 (duty to maintain register of undertakings and orders); section 167C (statement of policy in relation to functions under sections 167 and 167A); section 171 (duty to publish guidance). section 174E (statement of policy on penalties).
So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—
references in Part 4 of the Enterprise Act 2002 to the CMA (including references in provisions of that Act applied by that Part) are to be read as including references to the Payment Systems Regulator,
references in that Part to section 5 of that Act are to be read as including references to section 64 of this Act, and
references in that Part to consumers are to be read as including references to any person who uses, or is likely to use, services provided by payment systems in the course of a business carried on by the person.
But subsection (4) does not apply—
in relation to section 166 , 167C, 171 or 174E of that Act, or
where the context otherwise requires.
Section 130A of the Enterprise Act 2002 is to have effect in relation to the Payment Systems Regulator by virtue of subsections (1) and (2) as if—
in subsection (2)(a) of that section, the reference to the acquisition or supply of goods or services of one or more than one description in the United Kingdom were a reference to the participation in payment systems used to provide services in the United Kingdom, and
in subsection (2)(b) of that section, the reference to the extent to which steps can and should be taken were a reference to the extent to which steps that might include steps under Part 4 of that Act can and should be taken.
In making any decision, or otherwise taking action, for the purposes of any of its functions that, by virtue of this section, are functions exercisable concurrently with the CMA, the Payment Systems Regulator must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.
Before the CMA or the Payment Systems Regulator first exercises any of the concurrent functions in relation to any matter, it must consult the other.
Neither the CMA nor the Payment Systems Regulator may exercise any of the concurrent functions in relation to any matter if any of those functions have been exercised in relation to that matter by the other.
In subsections (1) and (2) “the concurrent functions” means the functions which by virtue of section 59 are concurrent functions of the Payment Systems Regulator and the CMA.
Before the FCA or the Payment Systems Regulator first exercises any of the concurrent functions in relation to any matter, it must consult the other.
Neither the FCA nor the Payment Systems Regulator may exercise any of the concurrent functions in relation to any matter if any of those functions have been exercised in relation to that matter by the other.
In subsections (4) and (5) “the concurrent functions”—
in relation to the Payment Systems Regulator, means the functions which by virtue of section 59 are concurrent functions of the Payment Systems Regulator and the CMA, and
in relation to the FCA, means the functions which by virtue of section 234I of FSMA 2000 are concurrent functions of the FCA and the CMA.
In this section “the CMA” means the Competition and Markets Authority.
The functions to which this subsection applies are to be concurrent functions of the Payment Systems Regulator and the Competition and Markets Authority (“the CMA”).
Subsection (1) applies to the functions of the CMA under the provisions of Part 1 of the Competition Act 1998, so far as relating to any of the following that relate to participation in payment systems—
agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,
conduct of the kind mentioned in section 18(1) of that Act, and
transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act).
conduct which amounts to abuse of the kind mentioned in Article 102 of the Treaty on the Functioning of the European Union.
But subsection (1) does not apply to functions under the following sections of that Act— section 31D(1) to (6) (duty to publish guidance); section 35C (statement of policy in relation to functions under sections 31E, 34 and 35A); section 38(1) to (6) (duty to publish guidance about penalties); section 40B(1) to (4) (duty to publish statement of policy on penalties); section 51 (rules).
So far as necessary for the purposes of, or in connection with, the provisions of subsections (1) and (2), references to the CMA in Part 1 of the Competition Act 1998 (including references in provisions of the Enterprise Act 2002 applied by that Part) are to be read as including references to the Payment Systems Regulator.
But subsection (4) does not apply—
in relation to sections 31D(1) to (6) , 35C, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or
where the context otherwise requires.
In making any decision, or otherwise taking action, for the purposes of any of its functions that— the Payment Systems Regulator must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.
by virtue of this section, are functions exercisable concurrently with the CMA, and
are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,
Before exercising any power within subsection (2), the Payment Systems Regulator must consider whether it would be more appropriate to proceed under the Competition Act 1998.
The powers referred to in subsection (1) are—
its power to give a direction under section 54 (apart from the power to give a general direction);
its power to impose a requirement under section 55 (apart from the power to impose a generally-imposed requirement);
its powers under sections 56, 57 and 58.
The Payment Systems Regulator must not exercise the power if it considers that it would be more appropriate to proceed under the Competition Act 1998.
For the purpose of assisting a CMA group in carrying out a relevant investigation, the Payment Systems Regulator must give the CMA group—
any relevant information which it has in its possession, and
any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.
A “relevant investigation” is an investigation carried out on a reference made by the Payment Systems Regulator under section 131 of the Enterprise Act 2002 by virtue of section 59.
“Relevant information”, in relation to a relevant investigation, is information—
which relates to matters falling within the scope of the investigation, and
which—
is requested by the CMA group for the purpose of the investigation, or
in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.
A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.
In this section “CMA group” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.
For the purpose of the functions conferred on it by sections 58 to 63 the Payment Systems Regulator is to have the function of keeping under review—
the market for payment systems, and
the markets for services provided by payment systems.
The function conferred by subsection (1) is to be carried out with a view to (among other things) ensuring that the Payment Systems Regulator has sufficient information to take informed decisions and to carry out its other functions effectively.
Section 49 (the Payment Systems Regulator's general duties) does not apply in relation to anything done by the Payment Systems Regulator in the carrying out of its functions by virtue of sections 59 to 63.
But in the carrying out of any functions by virtue of sections 59 to 63, the Payment Systems Regulator may have regard to any of the matters in respect of which a duty is imposed by section 49 if it is a matter to which the Competition and Markets Authority is entitled to have regard in the carrying out of those functions.
If any question arises as to whether, by virtue of section 59 or 61, any functions fall to be, or are capable of being, carried out by the Payment Systems Regulator in relation to any particular case, that question is to be referred to, and determined by, the Treasury.
No objection is to be taken to anything done under the Competition Act 1998 or Part 4 of the Enterprise Act 2002 by or in relation to the Payment Systems Regulator on the ground that it should have been done by or in relation to the Competition and Markets Authority.
In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (f) insert—
In section 54 of the Competition Act 1998 (regulators), in subsection (1), omit the “and” at the end of paragraph (g) and after paragraph (h) insert—
In section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references)—
in subsection (7), at the end insert—;
in subsection (8), for “or Monitor” substitute “ , Monitor or the Payment Systems Regulator. ”;
at the end insert—
In section 52(4) of the Enterprise and Regulatory Reform Act 2013 (power to remove concurrent competition functions of sectoral regulators), after paragraph (f) insert—
In Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (the Competition and Markets Authority), in paragraph 16 (concurrency report), at the end of sub-paragraph (7) insert—
A designated representative body may make a complaint to the Payment Systems Regulator that a feature, or combination of features, of a market in the United Kingdom for services provided by payment systems is, or appears to be, significantly damaging the interests of those who use, or are likely to use, those services (“service-users”).
“Designated representative body” means a body designated by the Treasury by order.
The Treasury—
may designate a body only if it appears to them to represent the interests of service-users of any description, and
must publish in such manner as they think fit (and may from time to time vary) criteria to be applied by them in determining whether to make or revoke a designation.
The reference in subsection (1) to a feature of a market in the United Kingdom for services provided by payment systems is a reference to— and “conduct” includes any failure to act (whether or not intentional) and any other unintentional conduct.
the structure of the market concerned or any aspect of that structure,
any conduct (whether or not in the market concerned) of one or more than one person who supplies or acquires services in the market concerned, or
any conduct relating to the market concerned of customers of any person who supplies or acquires services,
In this section “market in the United Kingdom” includes a market which operates only in a part of the United Kingdom.
In section 234C of FSMA 2000 (complaints by consumer bodies), after subsection (1) insert—
The Payment Systems Regulator must within 90 days after the day on which it receives a complaint under section 68 publish a response stating how it proposes to deal with the complaint, and in particular—
whether it has decided to take any action, or to take no action, and
if it has decided to take action, what action it proposes to take.
The response must—
include a copy of the complaint, and
state the Payment Systems Regulator's reasons for its proposals.
The Treasury may by order amend subsection (1) by substituting any period for the period for the time being specified there.
The guidance given by the Payment Systems Regulator under section 96—
must include guidance about the presentation of a reasoned case for a complaint under section 68, and
may include guidance about any other matters that appear to the Payment Systems Regulator to be appropriate for the purposes of that section.
Guidance given in accordance with subsection (1) is to be treated as general guidance for the purposes of this Part.
In this Part “compliance failure” means a failure by a participant in a regulated payment system to—
comply with a direction given under section 54, ...
comply with a requirement imposed under section 55 or 56 ; or
comply with rules made by the Regulator under paragraph 9A of Schedule 4.
The Payment Systems Regulator may publish details of a compliance failure by a participant in a regulated payment system.
The Payment Systems Regulator may publish details of a sanction imposed under section 73.
The Payment Systems Regulator may require a participant in a regulated payment system to pay a penalty in respect of a compliance failure.
A penalty—
must be paid to the Payment Systems Regulator, and
may be enforced by the Payment Systems Regulator as a debt.
The Payment Systems Regulator must prepare a statement of the principles which it will apply in determining—
whether to impose a penalty, and
the amount of a penalty.
The Payment Systems Regulator must—
publish the statement on its website,
send a copy to the Treasury,
review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and
in applying the statement to a compliance failure, apply the version in force when the compliance failure occurred.
Before imposing a sanction on any person the Payment Systems Regulator must—
give the person a notice in writing (a “warning notice”),
give the person at least 21 days to make representations,
consider any representations made, and
as soon as is reasonably practicable, give the person a notice in writing stating whether or not it intends to impose the sanction.
In subsection (1) any reference to imposing a sanction is a reference to—
publishing details under section 72(1), or
requiring the payment of a penalty under section 73.
If, on the application of the Payment Systems Regulator, the court is satisfied— the court may make an order restraining the conduct constituting the failure.
that there is a reasonable likelihood that there will be a compliance failure, or
that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,
If, on the application of the Payment Systems Regulator, the court is satisfied— the court may make an order requiring the participant, and anyone else who appears to have been knowingly concerned in the failure, to take such steps as the court may direct to remedy it.
that there has been a compliance failure by a participant in a regulated payment system, and
that there are steps which could be taken for remedying the failure,
If, on the application of the Payment Systems Regulator, the court is satisfied— the court may make an order restraining the participant or the person (as the case may be) from dealing with any assets which it is satisfied the participant or person is reasonably likely to deal with.
that there may have been a compliance failure by a participant in a regulated payment system, or
that a person may have been knowingly concerned in a compliance failure,
The jurisdiction conferred by this section is exercisable—
in England and Wales and Northern Ireland, by the High Court, and
in Scotland, by the Court of Session.
In this section—
references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,
references to remedying a failure include mitigating its effect, and
references to dealing with assets include disposing of them.
A person who is affected by any of the following decisions of the Payment Systems Regulator may appeal against the decision—
a decision to give a direction under section 54 (other than a general direction),
a decision to impose a requirement under section 55 (other than a generally-imposed requirement),
a decision to exercise its power under section 56, 57 or 58,
a decision to impose a sanction.
In subsection (1) the reference to imposing a sanction is a reference to—
publishing details under section 72(1), or
requiring the payment of a penalty under section 73.
If the decision is a CAT-appealable decision, the appeal must be made to the Competition Appeal Tribunal in accordance with section 77.
A “CAT-appealable decision” means—
a decision to give a direction under section 54,
a decision to impose a requirement under section 55, or
a decision to publish details under section 72(1).
If the decision is a decision to impose a penalty on the person under section 73, the appeal must be made to the Competition Appeal Tribunal in accordance with section 78.
If the decision is a CMA-appealable decision, the appeal must be made to the Competition and Markets Authority (“the CMA”) in accordance with section 79.
A “CMA-appealable decision” means—
a decision to impose a requirement under section 56,
a decision to vary an agreement under section 57, or
a decision to impose a requirement under section 58.
The permission of the CMA is required for an appeal to be made in accordance with section 79.
The CMA may refuse permission for an appeal only if—
the appeal is made for reasons that are trivial or vexatious, or
the appeal has no reasonable prospect of success.
This section applies where a person is appealing to the Competition Appeal Tribunal (“the Tribunal”) against a CAT-appealable decision.
The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.
The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.
In determining an appeal made in accordance with this section, the Tribunal must apply the same principles as would be applied by a court on an application for judicial review.
The Tribunal must either—
dismiss the appeal, or
quash the whole or part of the decision to which the appeal relates.
If the Tribunal quashes the whole or part of a decision, it may refer the matter back to the Payment Systems Regulator with a direction to reconsider and make a new decision in accordance with its ruling.
The Tribunal may not direct the Payment Systems Regulator to take any action which it would not otherwise have the power to take in relation to the decision.
The effect of a decision to publish details under section 72(1) is suspended by the making of an appeal against the decision (and the details may not be published until the appeal has been determined).
The effect of any other CAT-appealable decision is not suspended by the making of an appeal against the decision.
In this section and section 78 “Tribunal rules” means rules under section 15 of the Enterprise Act 2002.
This section applies where a person is appealing to the Competition Appeal Tribunal (“the Tribunal”) against a decision to impose a penalty under section 73.
The person may appeal against—
the imposition of the penalty,
the amount of the penalty, or
any date by which the penalty, or any part of it, is required to be paid.
The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.
The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.
The Tribunal may do any of the following—
uphold the penalty;
set aside the penalty;
substitute for the penalty a penalty of an amount decided by the Tribunal;
vary any date by which the penalty, or any part of it, is required to be paid.
If an appeal is made in accordance with this section, the penalty is not required to be paid until the appeal has been determined.
Subsections (2), (5) and (6) do not restrict the power to make Tribunal rules; and those subsections are subject to Tribunal rules.
Except as provided by this section, the validity of the penalty may not be questioned by any legal proceedings whatever.
In the case of an appeal made in accordance with this section, a decision of the Tribunal has the same effect as, and may be enforced in the same manner as, a decision of the Payment Systems Regulator.
This section applies where a person is appealing to the Competition and Markets Authority (“the CMA”) against a CMA-appealable decision.
In determining the appeal the CMA must have regard, to the same extent as is required of the Payment Systems Regulator, to the matters to which the Payment Systems Regulator must have regard in discharging its functions under this Part.
In determining the appeal the CMA—
may have regard to any matter to which the Payment Systems Regulator was not able to have regard in relation to the decision, but
must not, in the exercise of that power, have regard to any matter to which the Payment Systems Regulator would not have been entitled to have regard in reaching its decision had it had the opportunity of doing so.
The CMA must either—
dismiss the appeal, or
quash the whole or part of the decision to which the appeal relates.
The CMA may act as mentioned in subsection (4)(b) only to the extent that it is satisfied that the decision was wrong on one or more of the following grounds—
that the Payment Systems Regulator failed properly to have regard to any matter mentioned in subsection (2);
that the Payment Systems Regulator failed to give the appropriate weight to any matter mentioned in subsection (2);
that the decision was based, wholly or partly, on an error of fact;
that the decision was wrong in law.
If the CMA quashes the whole or part of a decision, it may either—
refer the matter back to the Payment Systems Regulator with a direction to reconsider and make a new decision in accordance with its ruling, or
substitute its own decision for that of the Payment Systems Regulator.
The CMA may not direct the Payment Systems Regulator to take any action which it would not otherwise have the power to take in relation to the decision.
Schedule 5 contains further provision about the making of appeals in accordance with this section.
A requirement imposed under section 58 is enforceable by civil proceedings brought by the Payment Systems Regulator for an injunction or for interdict or for any other appropriate relief or remedy.
Civil proceedings may not be brought to enforce a requirement imposed under that section unless—
the time for bringing an appeal against the decision to impose the requirement has expired and no appeal has been brought within that time, or
the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.
The Payment Systems Regulator may by notice in writing require a person to provide information or documents—
which the Payment Systems Regulator thinks will help the Treasury in determining whether to make a designation order, or
which the Payment Systems Regulator otherwise requires in connection with its functions under this Part.
In particular, a notice under subsection (1) may require a participant in a regulated payment system to notify the Payment Systems Regulator if events of a specified kind occur.
A notice under subsection (1) may require information or documents to be provided—
in a specified form or manner;
at a specified time;
in respect of a specified period.
The Payment Systems Regulator may— The person whose participation in the payment system is to be the subject of the report is referred to in this section as “the relevant participant”.
require a person who is a participant in a regulated payment system to provide the Payment Systems Regulator with a report on any matter relating to the person's participation in the system (“the matter concerned”), or
appoint a person to provide the Payment Systems Regulator with a report on the matter concerned.
The power conferred by subsection (1)(a) is exercisable by giving the relevant participant a notice in writing.
When acting under subsection (1)(a), the Payment Systems Regulator may require the report to be in a form specified in the notice.
The Payment Systems Regulator must give written notice of an appointment under subsection (1)(b) to the relevant participant.
A person appointed to make a report under this section—
must be a person appearing to the Payment Systems Regulator to have the skills necessary to make a report on the matter concerned, and
where the appointment is to be made by the relevant participant, must be a person nominated or approved by the Payment Systems Regulator.
It is the duty of— to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.
the relevant participant, and
any person who is providing (or who has at any time provided) services to the relevant participant in relation to the matter concerned,
The obligation imposed by subsection (6) is enforceable, on the application of the Payment Systems Regulator, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
The Payment Systems Regulator may direct the relevant participant to pay any expenses incurred by the Payment Systems Regulator in relation to an appointment under subsection (1)(b).
If it considers that it is desirable to do so in order to advance any of its payment systems objectives, the Payment Systems Regulator may appoint one or more competent persons to conduct an investigation on its behalf into the nature, conduct or state of the business of any participant in a regulated payment system.
If it appears to the Payment Systems Regulator that there are circumstances suggesting that there may have been a compliance failure, the Payment Systems Regulator may appoint one or more competent persons to conduct an investigation on its behalf.
This section applies if the Payment Systems Regulator appoints one or more competent persons (“investigators”) under section 83 to conduct an investigation on its behalf.
The Payment Systems Regulator must give written notice of the appointment of an investigator to the person who is the subject of the investigation.
Subsections (2) and (9) do not apply if—
the Payment Systems Regulator believes that the notice required by subsection (2) or (9) would be likely to result in the investigation being frustrated, or
the investigator is appointed under subsection (2) of section 83.
A notice under subsection (2) must—
specify the provision under which the investigator was appointed, and
state the reason for the appointment.
Nothing prevents the Payment Systems Regulator from appointing as an investigator—
a member of its staff, or
a member of staff of the FCA.
An investigator who conducts an investigation must make a report of the investigation to the Payment Systems Regulator.
The Payment Systems Regulator may, by a direction to an investigator, control—
the scope of the investigation,
the period during which the investigation is to be conducted,
the conduct of the investigation, and
the reporting of the investigation.
A direction may, in particular—
confine the investigation to particular matters;
extend the investigation to additional matters;
require the investigator to discontinue the investigation or to take only those steps that are specified in the direction;
require the investigator to make such interim reports as are so specified.
If there is a change in the scope or conduct of the investigation and, in the opinion of the Payment Systems Regulator, the person who is the subject of the investigation is likely to be significantly prejudiced by not being made aware of it, that person must be given written notice of the change.
An investigator may require any person within subsection (2)—
to attend before the investigator at a specified time and place and answer questions, or
otherwise to provide any information which the investigator requires.
The persons referred to in subsection (1) are—
the person who is the subject of the investigation (“the person under investigation”);
any person connected with the person under investigation;
in the case of an investigation into whether there has been a compliance failure, any person who in the investigator's opinion is or may be able to give information which is or may be relevant to the investigation.
An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.
A requirement under subsection (1) or (3) may be imposed only so far as the investigator concerned reasonably considers the question, provision of information or production of the document to be relevant to the purposes of the investigation.
In the case of an investigation into whether there has been a compliance failure, the investigator may also require any person falling within subsection (2)(c) to give the investigator all assistance in connection with the investigation which the person is reasonably able to give.
For the purposes of this section, a person is connected with the person under investigation (“A”) if the person is or has at any relevant time been—
a member of A's group,
a controller of A, or
a partnership of which A is a member.
In this section—
“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.
This Schedule applies where—
the court has made an FMI administration order in relation to a company (“the old company”), and
it is proposed that a transfer within section 115(5) be made to another company (“the new company”).
in Scotland, the Court of Session;
In this section “relevant document” means a document produced in response to a requirement imposed under section 81 or 85.
In a case where— the power may be exercised in relation to that other person.
the Payment Systems Regulator has power under section 81, or an investigator has power under section 85, to require a person to produce a document, but
it appears that the document is in the possession of another person,
Any person to whom a relevant document is produced may—
take copies or extracts from the document, or
require the person producing the document, or any relevant person (see subsection (4)), to provide an explanation of the document.
“Relevant person”, in relation to a person who is required to produce a document, means a person who—
has been or is or is proposed to be a director or controller of that person,
has been or is an auditor of that person,
has been or is an actuary, accountant or lawyer appointed or instructed by that person, or
has been or is an employee of that person.
A relevant document may be retained for so long as the person to whom it is produced considers that it is necessary to retain it (rather than copies of it) for the purposes for which the document was requested.
If the person to whom a relevant document is produced has reasonable grounds for believing— it may be retained until the proceedings are concluded.
that the document may have to be produced for the purposes of any legal proceedings, and
that it might otherwise be unavailable for those purposes,
If a person who is required under section 81 or 85 to produce a document fails to do so, the Payment Systems Regulator or an investigator may require the person to state, to the best of the person's knowledge and belief, where the document is.
A lawyer may be required under section 81 or 85 or this section to provide the name and address of a client.
A person may not be required under section 81 or 85 or this section to disclose information or produce a document in respect of which the person owes an obligation of confidence as a result of carrying on the business of banking unless—
the person is the person under investigation or a member of that person's group,
the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group,
the person to whom the obligation of confidence is owed consents to the disclosure or production, or
the imposing on the person of a requirement with respect to such information or document has been specifically authorised by the Payment Systems Regulator.
If a person claims a lien on a document, its production under section 81 or 85 does not affect the lien.
In this section—
“the FCA” means the Financial Conduct Authority;
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), at the appropriate place insert— “ The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013. ”
An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission. An application for permission to appeal must be accompanied by all such information as may be required by appeal rules. Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth. A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant. The appellant must send the Payment Systems Regulator— The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA. Before the authorised member decides whether to grant permission under this paragraph, the Payment Systems Regulator must be given an opportunity of making representations or observations, in accordance with paragraph 5(2). The CMA's decision on an application for permission must be made— The grant of permission may be made subject to conditions, which may include— Where a decision is made to grant or to refuse an application for permission, an authorised member of the CMA must notify the decision, giving reasons, to the following persons— A decision of the CMA under this paragraph must be published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is made. The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is—
A group constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 for the purpose of carrying out functions of the CMA with respect to an appeal must consist of three members of the CMA panel. A decision of the group is effective if, and only if—
For the purposes of this Schedule, the CMA may by notice— The power to require the production of a document, or the supply of any estimate, forecast, return or other information, is a power to require its production or, as the case may be, supply— No person is to be compelled under this paragraph to produce a document or supply an estimate, forecast, return or other information which the person could not be compelled to produce in civil proceedings in the High Court or Court of Session. An authorised member of the CMA may, for the purpose of the exercise of the functions of the CMA, make arrangements for copies to be taken of a document produced or an estimate, forecast, return or other information supplied to it under this paragraph. A notice for the purposes of this paragraph—
Where permission to bring an appeal is granted under paragraph 3, the CMA may commission expert advice with respect to any matter raised by a party to the appeal.
The CMA Board may make rules of procedure regulating the conduct and disposal of appeals. Those rules may include provision supplementing the provisions of this Schedule in relation to any application, notice, hearing, power or requirement for which this Schedule provides; and that provision may, in particular, impose time limits or other restrictions on— The CMA Board must publish rules made under this paragraph in such manner as it considers appropriate for the purpose of bringing them to the attention of those likely to be affected by them. Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate. Rules under this paragraph may make different provision for different cases.
an enactment contained in, or in an instrument made under, Northern Ireland legislation;
The Regulator is not to be regarded as exercising functions on behalf of the Crown. The officers and staff of the Regulator are not to be regarded as Crown servants.
The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA. The plan must be prepared— The Regulator may, with the approval of the FCA, vary the plan in respect of a financial year at any time after its preparation. An annual plan in respect of a financial year must set out— In sub-paragraph (4) references to aims for a financial year include aims for a longer period that includes that year. Before preparing or varying an annual plan, the Regulator must consult— The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.
For the purposes mentioned in sub-paragraph (2) the FCA may make rules requiring participants in regulated payment systems to pay to the FCA specified amounts or amounts calculated in a specified way. The purposes are— In this paragraph “the relevant costs” means— For the purposes of paragraph (b) it does not matter when the expenses were incurred. Before making any rules under sub-paragraph (1) the FCA must consult the Treasury. The amounts to be paid under the rules may include a component to cover the expenses of the FCA in collecting the payments (“collection costs”). The FCA must pay to the Regulator the amounts that it receives under the rules, apart from the following amounts (which it may keep)— In this paragraph “specified” means specified in the rules. The FCA's power to make rules under this paragraph is to be treated as if it were a power of the FCA to make rules under FSMA 2000 (and rules made under this paragraph are to be treated accordingly). But the requirements to carry out a cost benefit analysis under section 138I of FSMA 2000 do not apply in relation to rules made under this paragraph.
A statement made to an investigator by a person in compliance with an information requirement is admissible in evidence in any proceedings, so long as it also complies with any requirements governing the admissibility of evidence in the circumstances in question.
But in criminal proceedings in which that person is charged with an offence to which this subsection applies— unless evidence relating to the statement is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person.
no evidence relating to the statement may be adduced by or on behalf of the prosecution, and
no question relating to the statement may be asked by or on behalf of the prosecution,
Subsection (2) applies to any offence other than—
an offence under section 90(6);
an offence under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);
an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath);
an offence under Article 10 of the Perjury (Northern Ireland) Order 1979.
In this section—
“FMI administration order” and “FMI administrator” are to be read in accordance with section 114;
can be used for the settlement of payment obligations,
After section 41 insert— In section 42 (supplemental property transfer instruments)— After section 44 insert— In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert “ , 44A(3)(b) ”.
Section 8A Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.” “Section 41A Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.” “Section 44A Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.” “Section 48H Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person. Section 48U Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person. Section 48V Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person. Section 48W Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.” “Section 81BA Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 14 of the Financial Services Act 2012, omit subsection (4).
The CMA may direct that, pending the determination of an appeal against a decision of the Payment Systems Regulator— The power to give a direction under this paragraph is exercisable only where— The CMA's decision on an application for a direction under this paragraph must be made— The appellant must send the Payment Systems Regulator a copy of the application for a direction under this paragraph at the same time as it is sent to the CMA. The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA. A direction under this paragraph must be— Sub-paragraph (12) of paragraph 3 applies to the publication of a direction under sub-paragraph (6) of this paragraph as it applies to the publication of a decision under sub-paragraph (11) of that paragraph.
The CMA must determine an appeal within the period of 6 months beginning with the permission date. If— the CMA must determine the appeal within the period specified by it, which must not be longer than the period of 7 months beginning with the permission date. In a case where sub-paragraph (2) applies, the CMA must also— In this paragraph the “permission date” is the date on which the CMA gave permission to bring the appeal in accordance with section 76(8).
For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath— and, for that purpose, such a person or group may administer oaths. The CMA may by notice require a person— At any oral hearing the person or group conducting the hearing may— A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal. If the appellant, the Payment Systems Regulator, or the appellant's or Payment Systems Regulator's representative is not present at a hearing— No person is to be compelled under this paragraph to give evidence which the person could not be compelled to give in civil proceedings in the High Court or Court of Session. Where a person is required under this paragraph to attend at a place more than 10 miles from the person's place of residence, an authorised member of the CMA must arrange for the person to be paid the necessary expenses of attendance. A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.
If a person (“the defaulter”)— an authorised member of the CMA may certify that fact to the court. If the court is satisfied that the defaulter failed without reasonable excuse to comply with the notice or other requirement, or made the false statement, or provided the false information, it may deal with the defaulter (and in the case of a body corporate, any director or other officer of the body) as if that person were in contempt. In sub-paragraph (2) “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership. In this paragraph “court” means—
A group that determines an appeal must make an order requiring the payment to the CMA of the costs incurred by the CMA in connection with the appeal. An order under sub-paragraph (1) must require those costs to be paid— The group that determines an appeal may also make such order as it thinks fit for requiring a party to the appeal to make payments to another party in respect of costs reasonably incurred by that other party in connection with the appeal. A person who is required by an order under this paragraph to pay a sum to another person must comply with the order before the end of the period of 28 days beginning with the day after the making of the order. Sums required to be paid by an order under this paragraph but not paid within the period mentioned in sub-paragraph (4) are to bear interest at such rate as may be determined in accordance with provision contained in the order. Any costs payable by virtue of an order under this paragraph and any interest that has not been paid may be recovered as a civil debt by the person in whose favour the order is made.
Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows. In subsection (4)— In subsection (5)—
A person who wilfully alters, suppresses or destroys a document which the person has been required to produce under paragraph 9 is guilty of an offence. A person guilty of an offence under this paragraph is liable—
“FSMA 2000” means the Financial Services and Markets Act 2000;
Except where specified otherwise in this Schedule, the functions of the CMA with respect to an appeal are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.
Sub-paragraph (2) applies where the Payment Systems Regulator wishes to make representations or observations to the CMA in relation to— The Payment Systems Regulator must make the representations or observations in writing before the end of 10 working days beginning with the first working day after the day on which it received a copy of the application under paragraph 3(5) or 4(4) (as the case may be). Sub-paragraph (4) applies where an application for permission to bring an appeal has been granted and the Payment Systems Regulator wishes to make representations or observations to the CMA in relation to— The Payment Systems Regulator must make the representations or observations in writing before the end of 15 working days beginning with the first working day after the day on which permission to bring the appeal was granted. The Payment Systems Regulator must send a copy of the representations and observations it makes under this paragraph to the appellant.
The CMA, if it thinks it necessary to do so for the purpose of securing the determination of an appeal within the period provided for by paragraph 7, may disregard— In this paragraph “relevant application” means an application under paragraph 3 or 4.
The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to— The power to require the production of a written statement includes power— and a statement required to be so verified must be disregarded unless it is so verified. No person is to be compelled under this paragraph to produce a written statement with respect to any matter about which the person could not be compelled to give evidence in civil proceedings in the High Court or Court of Session. A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.
Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows. In paragraph 35(1) (membership of CMA panel), after paragraph (c) insert—. In paragraph 38 (membership of CMA groups), after sub-paragraph (5) insert— In paragraph 48 (performance of functions of chair with respect to constitution etc of CMA group), in sub-paragraph (4)(c), at the end insert—
A justice of the peace may issue a warrant under this section if satisfied on information on oath given by or on behalf of the Payment Systems Regulator or an investigator that there are reasonable grounds for believing that the first or second set of conditions is satisfied.
The first set of conditions is—
that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and
that on the premises specified in the warrant—
there are documents which have been required, or
there is information which has been required.
In this section “information requirement” means—
a requirement imposed by the Payment Systems Regulator under section 81 or 86, or
a requirement imposed by an investigator under section 85 or 86.
The second set of conditions is—
that the premises specified in the warrant are premises of a participant in a regulated payment system,
that there are on the premises documents or information in relation to which an information requirement could be imposed, and
that if such a requirement were to be imposed—
it would not be complied with, or
the documents or information to which it related would be removed, tampered with or destroyed.
A warrant under this section authorises a constable—
to enter the premises specified in the warrant,
to search the premises and take possession of any documents or information appearing to be documents or information of a kind in respect of which a warrant under this section was issued (“the relevant kind”) or to take, in relation to any such documents or information, any other steps which may appear to be necessary for preserving them or preventing interference with them,
to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,
to require any person on the premises to provide an explanation of any document or information appearing to be of the relevant kind or to state where it may be found, and
to use such force as may be reasonably necessary.
A warrant under this section may be executed by any constable.
The warrant may authorise persons to accompany any constable who is executing it.
The powers in subsection (5) may be exercised by a person who—
is authorised by the warrant to accompany a constable, and
exercises those powers in the company of, and under the supervision of, a constable.
In England and Wales, sections 15(5) to (8) and 16(3) to (12) of the Police and Criminal Evidence Act 1984 (execution of search warrants and safeguards) apply to warrants issued under this section.
In Northern Ireland, Articles 17(5) to (8) and 18(3) to (12) of the Police and Criminal Evidence (Northern Ireland) Order 1989 apply to warrants issued under this section.
This section has effect in relation to Scotland as if—
for any reference to a justice of the peace there were substituted a reference to a justice of the peace or a sheriff, and
for any reference to information on oath there were substituted a reference to evidence on oath.
In this section “investigator” means a person appointed under section 83.
Any document of which possession is taken under section 88 (“a seized document”) may be retained so long as it is necessary to retain it (rather than copies of it) in the circumstances.
A person claiming to be the owner of a seized document may apply to a magistrates' court or (in Scotland) the sheriff for an order for the delivery of the document to the person appearing to the court or sheriff to be the owner.
If on an application under subsection (2) the court or (in Scotland) the sheriff cannot ascertain who is the owner of the seized document the court or sheriff (as the case may be) may make such order as the court or sheriff thinks fit.
An order under subsection (2) or (3) does not affect the right of any person to take legal proceedings against any person in possession of a seized document for the recovery of the document.
Any right to bring proceedings (as described in subsection (4)) may only be exercised within 6 months of the date of the order made under subsection (2) or (3).
If a person other than an investigator (“the defaulter”) fails to comply with a requirement imposed under any of sections 81 to 88, the person imposing the requirement may certify that fact in writing to the court.
If the court is satisfied that the defaulter failed without reasonable excuse to comply with the requirement, it may deal with the defaulter (and in the case of a body corporate, any director or other officer of the body) as if that person were in contempt.
In subsection (2) “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership.
A person who knows or suspects that an investigation is being or is likely to be conducted under section 83 is guilty of an offence if the person—
falsifies, conceals, destroys or otherwise disposes of a document which the person knows or suspects is or would be relevant to such an investigation, or
causes or permits the falsification, concealment, destruction or disposal of such a document.
It is a defence for a person charged with an offence under subsection (4) to show that the person had no intention of concealing facts disclosed by the documents from the investigator.
A person is guilty of an offence if the person, in purported compliance with a requirement imposed under any of sections 81 to 88—
provides information which the person knows to be false or misleading in a material particular, or
recklessly provides information which is false or misleading in a material particular.
A person guilty of an offence under subsection (4) or (6) is liable—
on summary conviction—
in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court (or 6 months, if the offence was committed before 2 May 2022) or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;
in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;
on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.
Any person who intentionally obstructs the exercise of any rights conferred by a warrant under section 88 is guilty of an offence and liable on summary conviction—
in England and Wales, to imprisonment for a term not exceeding 51 weeks (or 3 months, if the offence was committed before the commencement of section 280(2) of the Criminal Justice Act 2003) or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;
in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both.
In this section—
“compliance failure” has the meaning given by section 71;
The old company may— make a scheme under this Schedule for the transfer of property, rights and liabilities from the old company to the new company (an “FMI transfer scheme”). Such a scheme may be made only at a time when the FMI administration order is in force in relation to the old company. An FMI transfer scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways— An FMI transfer scheme is to take effect in accordance with paragraph 7 at the time appointed by the court. But the court must not appoint a time for a scheme to take effect unless that scheme has been approved by the Bank of England. The Bank of England may modify an FMI transfer scheme before approving it, but only modifications to which both the old company and the new company have consented may be made. In deciding whether to approve an FMI transfer scheme, the Bank of England must have regard, in particular, to— Before approving an FMI transfer scheme, the Bank of England must consult the Treasury. The old company and the new company each have a duty to provide the Bank of England with all information and other assistance that the Bank may reasonably require for the purposes of, or in connection with, the exercise of the powers conferred on it by this paragraph.
In relation to each provision of an FMI transfer scheme for the transfer of property, rights or liabilities, or for the creation of interests, rights or liabilities— In this paragraph “the transferee” means—
Where a proposed transfer falling within subsection (5) of section 115 is a transfer of the kind mentioned in subsection (6)(a) of that section, this Schedule has effect in relation to the transfer as if—
paragraph 4(1)(a) were omitted, and
in paragraph 4(6), for the words from “both” onwards there were substituted “ the old company has consented may be made ”.
In section 73 of the Financial Services Act 2012 (duty of FCA to investigate and report on possible regulatory failure), in subsection (1)(b)(i)—
for “their activities,” substitute “ of the carrying on of regulated activities, ”, and
for “or for the regulation of collective investment schemes” substitute “ , for the regulation of collective investment schemes or for the regulation of recognised investment exchanges, ”.
Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows. For subsection (2) substitute— For subsection (3) substitute— In subsections (4) and (5), for “subsection (2)” substitute “ subsection (2)(a) ”. In subsections (6) and (7), for “subsection (3)” substitute “ subsection (3)(a) ”. After subsection (7) insert—
Confidential information must not be disclosed by a primary recipient, or by any person obtaining the information directly or indirectly from a primary recipient, without the consent of—
the person from whom the primary recipient obtained the information, and
if different, the person to whom it relates.
In this section “confidential information” means information which—
relates to the business or other affairs of any person,
was received by the primary recipient for the purposes of, or in the discharge of, any functions of the Payment Systems Regulator under this Part, and
is not prevented from being confidential information by subsection (4).
It is immaterial for the purposes of subsection (2) whether or not the information was received—
as a result of a requirement to provide it imposed by or under any enactment;
for other purposes as well as purposes mentioned in that subsection.
Information is not confidential information if—
it has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purposes for which, disclosure is not precluded by this section, or
it is in the form of a summary or a collection of information that is framed in such a way that it is not possible to ascertain from it information relating to any particular person.
Each of the following is a primary recipient for the purposes of this section—
the Payment Systems Regulator;
the FCA;
a person who is or has been employed by the Payment Systems Regulator or the FCA;
a person who is or has been engaged to provide services to the Payment Systems Regulator or the FCA;
any auditor or expert instructed by the Payment Systems Regulator or the FCA;
a person appointed to make a report under section 82;
a person appointed under section 83.
Nothing in this section applies to information received by a primary recipient for the purposes of, or in the discharge of, any functions of the Payment Systems Regulator under the Competition Act 1998 or the Enterprise Act 2002 by virtue of section 59 or 61. (For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)
Section 91 does not prevent a disclosure of confidential information which—
is made for the purpose of facilitating the carrying out of a public function, and
is permitted by regulations made by the Treasury under this section.
For the purposes of this section “public functions” includes—
functions conferred by or in accordance with any provision contained in any enactment;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
similar functions to those in paragraph (a) conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;
functions exercisable in relation to specified disciplinary proceedings.
Regulations under this section may, in particular, make provision permitting the disclosure of confidential information or of confidential information of a specified kind—
by specified recipients, or recipients of a specified description, to any person for the purpose of enabling or assisting the recipient to discharge specified public functions;
by specified recipients, or recipients of a specified description, to specified persons, or persons of specified descriptions, for the purpose of enabling or assisting those persons to discharge specified public functions;
by the Payment Systems Regulator to the Treasury for any purpose;
by any recipient if the disclosure is with a view to or in connection with specified proceedings.
Regulations under this section may also include provision—
making any permission to disclose confidential information subject to conditions (which may relate to the obtaining of consents or any other matter);
restricting the uses to which confidential information disclosed under the regulations may be put.
In relation to confidential information, each of the following is a “recipient”—
a primary recipient;
a person obtaining the information directly or indirectly from a primary recipient.
In this section—
“confidential information” and “primary recipient” have the same meaning as in section 91;
Section 6
Part 7 of FSMA 2000 (control of business transfer schemes) is amended as follows.
For “the authorised person concerned”, wherever occurring in Part 7 (including Schedule 12), substitute “ the transferor concerned ”.
Section 103A (meaning of “the appropriate regulator”) is amended as follows. In subsection (1), in paragraph (a), for “a scheme” substitute “ a ring-fencing transfer scheme or a scheme (other than a ring-fencing transfer scheme) ”. At the end of subsection (2) insert—
In section 106 (banking business transfer schemes), at the end of subsection (1)(c) insert “ or a ring-fencing transfer scheme ”.
After section 106A insert—
Section 107 (application for order sanctioning transfer scheme) is amended as follows. In subsection (1), for “or a reclaim fund business transfer scheme” substitute “ , a reclaim fund business transfer scheme or a ring-fencing transfer scheme ”. After subsection (2) insert—
For the heading to section 109 substitute “ Scheme reports: insurance business transfer schemes ”.
After section 109 insert—
Section 110 (right to participate in proceedings) is amended as follows. In subsection (1), after “section 107” insert “ relating to an insurance business transfer scheme, a banking business transfer scheme or a reclaim fund business transfer scheme ”. After subsection (2) insert—
Section 111 (sanction of court for business transfer schemes) is amended as follows. In subsection (1), for “or a reclaim fund business transfer scheme” substitute “ , a reclaim fund business transfer scheme or a ring-fencing transfer scheme ”. In subsection (2), after paragraph (aa) insert—
In section 112 (effect of order sanctioning business transfer scheme), in subsection (10), after “transfer scheme” insert “ or ring-fencing transfer scheme ”.
In section 112A (rights to terminate etc.), in subsection (1), for “or a banking business transfer scheme” substitute “ , a banking business transfer scheme or a ring-fencing transfer scheme ”.
In Schedule 12 (transfer schemes: certificates) after Part 2A insert—
Section 17
The Banking Act 2009 is amended as follows.
This paragraph modifies the application of the Investment Bank Special Administration Regulations 2011 (S.I. 2011/245) (“the regulations”) in cases where a resolution instrument has been made under section 12A of the Banking Act 2009 with respect to the investment bank in the relevant 3-month period. In sub-paragraph (1) “the relevant 3-month period” means the 3 months ending with the date on which the FCA receives the notification under Condition 1 in regulation 8 of the regulations. In their application to those cases, the regulations have effect with the modifications in sub-paragraph (4); and any enactment that refers to the regulations is to be read accordingly. In regulation 8 (in its application to those cases)—
Section 35
“investigator” means a person appointed under section 83.
Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows. In subsection (1), for the words from “the appropriate regulator” to the end substitute “ that person is acting in accordance with an approval given by the appropriate regulator under this section. ” In subsection (2), for the words from “the appropriate regulator” to the end substitute “ that person is acting in accordance with an approval given by the appropriate regulator under this section. ”
None of the following is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of the Regulator's functions— If the Regulator has made arrangements under paragraph 5 for any of its functions to be discharged by an officer or member of staff of the FCA, references in sub-paragraph (1) to a person who is an officer or member of staff of the Regulator include references to the officer or member of staff of the FCA. Anything done or omitted by a person mentioned in sub-paragraph (1)(b) or (c) while acting, or purporting to act, as a result of an appointment under section 82 or 83 is to be taken for the purposes of sub-paragraph (1) to have been done or omitted in the discharge or (as the case may be) purported discharge of the Regulator's functions. Sub-paragraph (1) does not apply—
A determination by the CMA on an appeal— The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is— The Payment Systems Regulator must take such steps as it considers necessary for it to comply with an order of the CMA made by virtue of sub-paragraph (1)(a). The steps must be taken—
In this Schedule— References in this Schedule to a party to an appeal are references to—
The Building Societies Act 1986 is amended as follows.
Section 74 (duty of directors to prepare annual business statement) is amended as follows. In subsection (4), omit the words from “and other officers” to “them”. In subsection (8), omit “or other officer”.
After section 115 insert—
In section 376 of FSMA 2000 (continuation of contracts of long-term insurance where insurer in liquidation), in subsection (11B), for “PRA-authorised” substitute “ PRA-regulated ”.
Section 59A of FSMA 2000 (specifying functions as controlled functions: supplementary) is amended as follows. In subsection (1)(a) and (b), for “significant-influence” substitute “ senior management ”. After subsection (3) insert—
In the following provisions, omit “, in a manner agreed between him and the society,”— section 60(7B)(c), section 61(7D)(c), section 68(6B)(c), section 69(15B)(c), section 76(8C)(c).
Part 25 of FSMA 2000 (injunctions and restitution) is amended as follows. In section 380 (injunctions), in subsection (6)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insertor . In section 382 (restitution orders), in subsection (9)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insertor . In section 384 (power of FCA or PRA to require restitution), in subsection (7), omit the “and” at the end of paragraph (b) and after paragraph (c) insertor
Section 63 of FSMA 2000 (withdrawal of approval) is amended as follows. In subsection (1A)(a), for “significant-influence function” substitute “ relevant senior management function ”. For subsection (1B) substitute—
In section 81(3B)(c), omit “, in a manner agreed for the purpose between him and the society,”.
In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows. In sub-paragraph (3)(b), after “this Act” insert “ or under a provision mentioned in sub-paragraph (4A) ”. In sub-paragraph (4), after paragraph (c) insert—. After sub-paragraph (4) insert— In sub-paragraph (5)—
In section 63A of FSMA 2000 (power to impose penalties), in subsection (2), for paragraph (b) substitute—
Schedule 2 is amended as follows. In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the society,”. In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between him and the society for that purpose,”. In paragraph 24(1B)(b), omit “in a manner agreed between the society and that member,”. In paragraph 32(2D)(c), omit “, in a manner agreed between the society and the member,”. In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between him and the society”.
In Schedule 17A to FSMA 2000 (further provision in relation to exercise of Part 18 functions by Bank of England), in paragraph 10(1)(j), for “subsections (1) and (3)” substitute “ subsection (1) ”.
Section 66 of FSMA 2000 (disciplinary powers) is amended as follows. In subsection (3), for paragraph (ab) (and the “or” following it) substitute—. In subsection (3A), for “restriction” substitute “ condition ”. In subsection (3B), for “or restriction” substitute “ , condition or limitation ”. In subsection (3C), for “restriction” substitute “ condition ”. In subsection (3D)— In subsection (9), for “restriction” substitute “ condition ”.
In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner agreed between the society and that person,”.
Section 67 of FSMA 2000 (disciplinary measures: procedure and right to refer to Tribunal) is amended as follows. In subsection (1), for “or (ab)” substitute “ , (ab) or (ac) ”. In subsection (2A), for “restriction” (in both places) substitute “ condition ”. After subsection (2A) insert— In subsection (4), for “or (ab)” substitute “ , (ab) or (ac) ”. In subsection (5A), for “restriction” (in both places) substitute “ condition ”. After subsection (5A) insert— In subsection (7), for “or (ab)” substitute “ , (ab) or (ac) ”.
Schedule 11 is amended as follows. In paragraph 4(9C)(c), omit “, in a manner agreed between him and the society,”. In paragraph 7(7C)(c), for “in a manner agreed between the society and that person, he” substitute “ the person ”. In paragraph 8(3B)(c), omit “, in a manner agreed between him and the society for the purpose,”.
In section 69 of FSMA 2000 (statement of policy), in subsection (1)—
in paragraph (a), for “or restrictions” substitute “ , conditions or limitations ”;
omit the “and” at the end of paragraph (b);
in paragraph (c), for “restrictions” substitute “ conditions ”;
at the end of paragraph (c) insert; and
In section 138A of FSMA 2000 (modification or waiver of rules), in subsection (2), before paragraph (a) insert—.
In section 138D of FSMA 2000 (actions for damages), in subsection (5), before paragraph (a) insert—.
In section 140A of FSMA 2000 (interpretation), in the definition of “regulating provisions”—
in paragraph (a)—
omit sub-paragraph (iii), and
in sub-paragraph (iv), omit “64 or”;
in paragraph (b), omit sub-paragraphs (ii) and (iii).
In section 347 of FSMA 2000 (the record of authorised persons etc.), in subsection (2)(g), in sub-paragraphs (ii) and (iii), for “relevant authorised person” substitute “ authorised person concerned ”.
In section 387 of FSMA 2000 (warning notices), in subsection (1A), for “or 55I(8)” substitute “ , 55I(8) or 61(2D) ”.
In section 388 of FSMA 2000 (decision notices), in subsection (1A), for “or 55I(8)” substitute “ , 55I(8) or 61(2D) ”.
In section 395 of FSMA 2000 (supervisory notices), in subsection (13), after paragraph (a) insert—.
Section 415B of FSMA 2000 (consultation in relation to taking certain enforcement action) is amended as follows. In subsection (4)— After subsection (4) insert—
In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)—
in paragraph (b), omit “64 or”;
in paragraph (c)(i)—
after “section” insert “ 63ZD, ”, and
omit “64,”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
omit paragraph (b);
in paragraph (c)(i)—
after “section” insert “63ZD,”, and
omit “64,”.
Section 40
The Treasury may (subject to this paragraph) at any time by direction require the Regulator to publish a report containing information about such matters as are specified in the direction. The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that— Subject to sub-paragraph (4), the Regulator must publish a report prepared under a direction given under this paragraph in such manner, and within such period, as the direction may require. Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest. A direction under this paragraph may not— The Treasury must consult the Regulator before giving a direction under this paragraph. In exercising the power under this paragraph, the Treasury must have regard to the desirability of minimising any adverse effect that the preparation of the report required in accordance with the direction may have on the exercise by the Regulator of any of its other functions. The Treasury must— A direction under this paragraph may be varied or revoked by the giving of a further direction.
“payment service provider”, in relation to a payment system, has the meaning given by section 42(5);
The Regulator must maintain satisfactory arrangements for—
recording decisions made in the exercise of its functions, and
the safe-keeping of those records which it considers ought to be preserved.
In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “Industry, business, finance etc.”, at the appropriate place insert— “ The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013. ”
Section 7 (the funding limit) is amended as follows. In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—. After subsection (3) insert— After subsection (6) insert— After subsection (9) insert—
Section 76 (summary financial statement for members and depositors) is amended as follows. After subsection (8A) insert— After subsection (8D) insert— Omit subsections (9) to (9E). In subsection (11), for “subsection (9)” substitute “ subsection (8AA) or (8E) ”.
Section 117 (financial year of building societies) is amended as follows. For subsection (1) substitute— Omit subsections (2) and (3).
In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (S.I. 2007/860), in paragraph 3, for “the modification required by this article” substitute “ the modifications required by this article and by section 7(3)(aa) ”. The amendment by this paragraph of a provision contained in subordinate legislation is without prejudice to any power to amend that provision by subordinate legislation.
In consequence of the amendments made by paragraph 6—
in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute “ subsection (8) of section 76 extends ”;
in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.
After section 117 insert—
In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).
The amendments made by paragraphs 15 to 17 have effect in relation to financial years beginning on or after the day on which those amendments come into force.
For the purposes mentioned in sub-paragraph (2), the Regulator may make rules requiring regulated persons within the meaning of regulation 2(1) of the Payment Card Interchange Fee Regulations 2015 to pay to the Regulator specified amounts or amounts calculated in a specified way. The purpose is to meet the expenses incurred, or expected to be incurred, by the Regulator in connection with any functions conferred on it by virtue of regulations made under the European Union (Withdrawal) Act 2018. Before making any rules under this paragraph, the Regulator must consult the FCA and the Treasury. In this paragraph “specified” means specified in the rules. The sections listed in sub-paragraph (6) apply, subject to the modifications specified in that sub-paragraph, to rules made by the Regulator under this paragraph as they apply to rules made by the FCA. The sections referred to in sub-paragraph (5) are—
This paragraph applies where the Regulator issues a relevant consultation. For the purposes of this paragraph the Regulator issues a relevant consultation if it— The Regulator must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued. The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation— The notification must also specify any other part of the consultation which the Regulator considers should be drawn to the attention of the relevant Parliamentary Committees. References in this paragraph to the relevant Parliamentary Committees are references to— References in this paragraph to the Treasury Committee of the House of Commons— Any question arising under sub-paragraph (7) is to be determined by the Speaker of the House of Commons.
This paragraph applies where— For the purposes of this paragraph, the Regulator issues a public consultation if it publishes the draft of any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment). The Regulator must give to the chair of the Committee concerned a written response to the representations. The duty to respond imposed by sub-paragraph (3) applies only so far as the Regulator would not be under a corresponding duty to do so imposed by another enactment. The Regulator is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the Regulator be against the public interest.
Section 79
Section 121
The following provisions of this Schedule provide for—
the general powers and duties of FMI administrators (by application of provisions about administrators), and
the general process and effects of FMI administration (by application of provisions about administration).
The provisions set out in the Tables apply in relation to FMI administration as in relation to administration, with—
the modifications set out in paragraph 3,
any other modification specified in the Tables, and
any other necessary modification.
The modifications are that—
a reference to the administrator is a reference to the FMI administrator,
a reference to administration is a reference to FMI administration,
a reference to an administration application is a reference to an FMI administration application,
a reference to an administration order is a reference to an FMI administration order,
except where otherwise specified in Table 2, a reference to a company is a reference to the infrastructure company, and
a reference to the purpose of administration (other than the reference in paragraph 111(1) of Schedule B1) is a reference to the objective in section 115.
Powers conferred by this Part of this Act and by the 1986 Act (as applied) are in addition to, and not in restriction of, any existing powers of instituting proceedings against any contributory or debtor of an infrastructure company, or the estate of any contributory or debtor, for the recovery of any call or other sum.
A reference in an enactment or other document to anything done under a provision applied by this Part of this Act includes a reference to the provision as applied. Provision of Schedule B1 Subject Modification Para. 40(1)(a) Dismissal of pending winding-up petition Para. 41 Dismissal of administrative or other receiver Para. 42 Moratorium on insolvency proceedings Ignore sub-paras. (4) and (5). Para. 43 Moratorium on other legal process Para. 44(1)(a) and (5) Interim moratorium Para. 46 Announcement of appointment Ignore sub-para. (6)(b) and (c). Paras. 47 and 48 Statement of affairs Para. 49 Administrator's proposals Para. 59 General powers Para. 60 and Schedule 1 General powers The exercise of powers under Schedule 1 is subject to section 115 of this Act. Para. 61 Directors Para. 62 Power to call meetings of creditors Para. 63 Application to court for directions Para. 64 Management powers Para. 65 Distribution to creditors Para. 66 Payments Para. 67 Taking custody of property Para. 68 Management Para. 69 Agency Para. 70 Floating charges Para. 71 Fixed charges Para. 72 Hire-purchase property Para. 73 Protection for secured and preferential creditors Para. 74 Challenge to administrator's conduct For sub-para. (2) there is to be taken to be substituted— Para. 75 Misfeasance In addition to applications that may anyway be made under para. 75, an application may be made by the FMI administrator or the Bank of England. Para. 79 Court ending administration on application of administrator For sub-paras. (1) to (3) there are to be taken to be substituted— Para. 84 Termination: no more assets for distribution Para. 85 Discharge of administration order Para. 86 Notice to Companies Registrar of end of administration Para. 87 Resignation An FMI administrator may not resign under para. 87 without giving 28 days' notice of the intention to do so to the Bank of England. Para. 88 Removal An application for an order removing an FMI administrator from office may be made only by or with the consent of the Bank of England. Para. 89 Disqualification The notice under sub-para. (2) must be given to the Bank of England. Paras. 90 and 91 Replacement Para. 98 Discharge Ignore sub-paras. (2)(b) and (ba), (3) and (3A) . Para. 99 Vacation of office: charges and liabilities In the application of sub-para. (3), payments may be made only— in accordance with directions of the Bank of England, and if the Bank is satisfied that they will not prejudice the objective in section 115 of this Act. Paras. 100 to 103 Joint administrators An application under para. 103 may be made only by the Bank of England. Para. 104 Validity Para. 106 (and section 430 and Schedule 10) Fines Paras. 107 to 109 Extension of time limits Para. 110 Amendment of provisions about time An order under para. 110 may amend a provision of the Schedule as it applies by virtue of this Act (whether or not in the same way as it amends the provision as it applies otherwise). Para. 111 Interpretation Paras. 112 to 116 Scotland Section Subject Modification or comment Section 176ZB Application of proceeds of office-holder claims Section 233 Utilities Section 234 Getting in company's property Section 235 Duty to co-operate with office-holder Section 236 Inquiry into company's dealings Section 237 Section 236: enforcement by court Section 238 Transactions at an undervalue (England and Wales) Section 239 Preferences (England and Wales) Section 240 Ss. 238 and 239: relevant time Section 241 Orders under ss. 238 and 239 Section 242 Gratuitous alienations (Scotland) Section 243 Unfair preferences (Scotland) In considering the grant of a decree under subsection (5) the court must have regard to the objective in section 115 of this Act. Section 244 Extortionate credit transactions Section 245 Avoidance of floating charges Section 246 Unenforceability of liens Sections 246ZA to 246ZC Administration: penalisation of directors etc Section 246ZD Power to assign certain causes of action Sections 246ZE and 246ZF Decisions by creditors (company insolvency) Section 246C Creditors’ ability to opt out of receiving certain notices Section 248A Meaning of “opted-out creditor” Sections 386 and 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993) Preferential debts Section 389 Offence of acting without being qualified Treat references to acting as an insolvency practitioner as references to acting as an FMI administrator. Sections 390 to 391T Authorisation and regulation of insolvency practitioners (a) In section 390 treat references to acting as an insolvency practitioner as references to acting as an FMI administrator. (b) For subsection (2) of that section there is to be taken to be substituted— “(2) A person is not qualified to act as an FMI administrator at any time unless at that time the person is fully authorised to act as an insolvency practitioner or partially authorised to act as an insolvency practitioner only in relation to companies.”. (c) An order under section 391 has effect in relation to any provision applied for the purposes of FMI administration. (d) In sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), in a reference to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies the reference to companies has effect without the modification in paragraph 3(e) of this Schedule. (e) In sections 391Q(2)(b) and 391S(3)(e) the reference to a company has effect without the modification in paragraph 3(e) of this Schedule. Sections 423 to 425 Transactions defrauding creditors In considering granting leave under section 424(1) or making an order in reliance on section 425, the court must have regard to the objective in section 115 of this Act. Sections 430 to 432 and Schedule 10 Offences
The Treasury may by order amend this Schedule so as to make further modifications. The further modifications that may be made are confined to such modifications of— as the Treasury consider appropriate in relation to any provision made by or under this Part of this Act. An order under this paragraph may also make modifications of the provisions of this Schedule.
Section 121
in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or
In this Schedule—
An FMI transfer scheme may contain provision— The property, rights and liabilities of the old company that may be transferred in accordance with an FMI transfer scheme include— The transfers to which effect may be given by an FMI transfer scheme include transfers of interests and rights that are to take effect in accordance with the scheme as if there were— as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (4). A provision falls within this sub-paragraph to the extent that it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the old company is entitled, or subject, to anything to which the transfer relates. Sub-paragraph (6) applies where (apart from that sub-paragraph) a person would be entitled, in consequence of anything done or likely to be done by or under this Act in connection with an FMI transfer scheme— That entitlement— Sub-paragraphs (3) to (6) have effect where shares in a subsidiary of the old company are transferred— Sub-paragraphs (3) and (4) apply to the creation of an interest or right by an FMI transfer scheme as they apply to the transfer of an interest or right.
The Bank of England may by notice to the old company and the new company modify an FMI transfer scheme after it has taken effect, but only modifications to which both the old company and the new company have consented may be made. The notice must specify the time at which it is to take effect (the “modification time”). Where a notice is issued under this paragraph in relation to an FMI transfer scheme, as from the modification time, the scheme is for all purposes to be treated as having taken effect, at the time appointed for the purposes of paragraph 4(4), with the modifications made by the notice. Those modifications may make— In deciding whether to modify an FMI transfer scheme, the Bank of England must have regard, in particular, to— Before modifying an FMI transfer scheme that has taken effect, the Bank of England must consult the Treasury. The old company and the new company each have a duty to provide the Bank of England with all information and other assistance that the Bank may reasonably require for the purposes of, or in connection with, the exercise of the powers conferred on it by this paragraph.
In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—
In section 52(4) of the Enterprise and Regulatory Reform Act 2013 (power to remove concurrent competition functions of sectoral regulators), after paragraph (g) insert—
Omit section 9B (restriction on creation of floating charges). In Schedule 15A (application of other companies insolvency legislation to building societies), omit the following paragraphs— In consequence of the amendment made by sub-paragraph (1)—
In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute “ Part 4A ”.
In Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (the Competition and Markets Authority), in paragraph 16 (concurrency report), at the end of sub-paragraph (7) insert—
Section 129
Part 16A of FSMA 2000 (consumer protection and competition) is amended as follows.
Omit section 234H (power of FCA to make request to Office of Fair Trading).
After section 234H insert—
In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (3)(a), after “55I” insert “ , a power conferred on it by sections 234I to 234M ”.
In section 348 of FSMA 2000 (restrictions on disclosure of confidential information by FCA, PRA etc), after subsection (6) insert—
In section 354A of FSMA 2000 (FCA's duty to co-operate with others), after subsection (2) insert—
Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended as follows. In paragraph 8 (arrangements for discharging functions), after sub-paragraph (4) insert— In paragraph 23 (fees), after sub-paragraph (2) insert—
Section 138
Section 141
A person who discloses information in contravention of section 91 is guilty of an offence.
A person guilty of an offence under subsection (1) is liable—
on summary conviction—
in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;
in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;
on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.
A person is guilty of an offence if—
information has been disclosed to the person in accordance with regulations made under section 92, and
the person uses the information in contravention of any provision of those regulations.
A person guilty of an offence under subsection (3) is liable on summary conviction—
in England and Wales, to imprisonment for a term not exceeding 51 weeks (or 3 months, if the offence was committed before the commencement of section 280(2) of the Criminal Justice Act 2003) or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;
in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both.
In proceedings against a person (“P”) for an offence under this section it is a defence for P to prove—
that P did not know and had no reason to suspect that the information was confidential information;
that P took all reasonable precautions and exercised all due diligence to avoid committing the offence.
In this section “confidential information” has the same meaning as in section 91.
The following are regulators for the purposes of this section—
the Payment Systems Regulator;
the FCA.
A regulator must not disclose to any person specially protected information.
“Specially protected information” is information in relation to which the first and second conditions are met.
The first condition is that the regulator received the information from—
the Bank of England (“the Bank”), or
the other regulator where that regulator had received the information from the Bank.
The second condition is that the Bank notified the regulator to which it disclosed the information that the Bank held the information for the purpose of its functions with respect to any of the following—
monetary policy;
financial operations intended to support financial institutions for the purposes of maintaining stability;
the provision of private banking services and related services.
The notification referred to in subsection (5) must be—
in writing, and
given before, or at the same time as, the Bank discloses the information.
The prohibition in subsection (2) does not apply—
to disclosure by one regulator to the other regulator where the regulator making the disclosure informs the other regulator that the information is specially protected information by virtue of this section;
where the Bank has consented to disclosure of the information;
to information which has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purposes for which, disclosure is not precluded by this section;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In this section references to disclosure by or to a regulator or by the Bank include references to disclosure by or to any of the following—
persons who are, or are acting as, officers of, or members of the staff of, the regulator;
persons who are, or are acting as, officers, employees or agents of the Bank;
auditors, experts, contractors or investigators appointed by the regulator or the Bank under powers conferred by this Part or otherwise.
References to disclosure by a regulator do not include references to disclosure between persons who fall within subsection (8)(a) or (b) in relation to that regulator.
Each regulator must take such steps as are reasonable in the circumstances to prevent the disclosure of specially protected information, in cases not excluded by subsection (7), by those who are or have been—
its officers or members of staff (including persons acting as its officers or members of staff);
auditors, experts, contractors or investigators appointed by the regulator under powers conferred by this Part or otherwise;
persons to whom the regulator has delegated any of its functions.
In section 246 of the Banking Act 2009 (information), in subsection (2), after paragraph (c) insert—.
The Payment Systems Regulator may give guidance consisting of such information and advice as it considers appropriate—
with respect to the operation of specified provisions of this Part;
with respect to any other matter relating to its functions under this Part;
with respect to any other matters about which it appears to the Payment Systems Regulator to be desirable to give information or advice.
Guidance given by the Payment Systems Regulator under this section must include guidance about how it intends to advance its payment systems objectives in discharging its functions under this Part in relation to different categories of payment system or participants in payment systems.
In this Part “general guidance” means guidance given by the Payment Systems Regulator under this section which—
is given—
to persons generally,
to participants in payment systems, or regulated payment systems, generally, or
to a class of participant in a payment system or regulated payment system,
is intended to have continuing effect, and
is given in writing or other legible form.
The Payment Systems Regulator may give financial or other assistance to persons giving information or advice of a kind which the Payment Systems Regulator could give under this section.
The Payment Systems Regulator may—
publish its guidance,
offer copies of its published guidance for sale at a reasonable price, and
if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.
If it considers that it is desirable to do so in order to advance any of its payment systems objectives, the Payment Systems Regulator may prepare and publish a report into any matter which it considers relevant to the exercise of its functions under this Part.
The following are regulators for the purposes of this section—
the Payment Systems Regulator;
the Bank of England;
the FCA;
the PRA.
The regulators must co-ordinate the exercise of their relevant functions (see subsection (5)) with a view to ensuring—
that each regulator consults every other regulator (where not otherwise required to do so) in connection with any proposed exercise of a relevant function in a way that may have a material adverse effect on the advancement by that other regulator of any of its objectives;
that where appropriate each regulator obtains information and advice from every other regulator in connection with the exercise of its relevant functions in relation to matters of common regulatory interest in cases where the other regulator may be expected to have relevant information or relevant expertise.
The duty in subsection (2) applies only to the extent that compliance with the duty—
is compatible with the advancement by each regulator of any of its objectives, and
does not impose a burden on the regulators that is disproportionate to the benefits of compliance.
A function conferred on a regulator relates to matters of common regulatory interest if—
another regulator exercises similar or related functions in relation to the same persons,
another regulator exercises functions which relate to different persons but relate to similar subject-matter, or
its exercise could affect the advancement by another regulator of any of its objectives.
“Relevant functions” means—
in relation to the Payment Systems Regulator, its functions under this Part or Part 2 of the Payment Card Interchange Fee Regulations 2015 ;
in relation to the Bank of England, its functions under Part 5 of the Banking Act 2009 (...payment systems) or Part 5A of that Act (wholesale cash distribution);
in relation to the FCA—
the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);
the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911);
the functions conferred on it by or under the Electronic Money Regulations 2011 (S.I. 2011/99);
its functions in regulating—
credit institutions where authorised under Part 4A of FSMA 2000, or
authorised payment institutions under the Payment Services Regulations 2017 (S.I. 2017/752).
in relation to the PRA, the functions conferred on it by or under FSMA 2000 (see section 2AB(3) of that Act).
“Objectives” means—
in relation to the Payment Systems Regulator, its payment systems objectives and ensuring compliance with the interchange fee regulation (see Part 2 of the Payment Card Interchange Fee Regulations 2015) ;
in relation to the Bank of England, its Financial Stability Objective under section 2A of the Bank of England Act 1998;
in relation to the FCA, its strategic objective and operational objectives under section 1B of FSMA 2000 and ensuring compliance with Articles 8(2), (5) and (6), 9, 10(1) and (5), 11 and 12 of the interchange fee regulation (see Part 3 of the Payment Card Interchange Fee Regulations 2015) ;
in relation to the PRA, its general objective under section 2B of that Act.
In subsection (6) “the interchange fee regulation” means Regulation (EU) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions.
The following are regulators for the purposes of this section—
the Payment Systems Regulator;
the Bank of England;
the FCA;
the PRA.
The regulators must prepare and maintain a memorandum which describes in general terms—
the role of each regulator in relation to the exercise of relevant functions which relate to matters of common regulatory interest, and
how the regulators intend to comply with section 98 in relation to the exercise of such functions.
The regulators must review the memorandum at least once in each calendar year.
The regulators must give the Treasury a copy of the memorandum and any revised memorandum.
The Treasury must lay before Parliament a copy of any document received by them under this section.
The regulators must ensure that the memorandum as currently in force is published in the way appearing to them to be best calculated to bring it to the attention of the public.
The memorandum need not relate to any aspect of compliance with section 98 if the regulators consider—
that publication of information about that aspect would be against the public interest, or
that that aspect is a technical or operational matter not affecting the public.
In this section—
the reference in subsection (2)(a) to matters of common regulatory interest is to be read in accordance with section 98(4), and
references to relevant functions are to be read in accordance with section 98(5).
Where the first, second and third conditions are met, the Bank of England may give a direction under this section to the Payment Systems Regulator.
The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to a participant in a regulated payment system.
The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—
threaten the stability of the UK financial system,
have serious consequences for business or other interests in the United Kingdom, or
have an adverse effect on the Bank's ability to act in its capacity as a monetary authority.
The third condition is that the Bank of England is of the opinion that the giving of the direction is necessary in order to avoid the possible consequence falling within subsection (3).
A direction under this section is a direction requiring the Payment Systems Regulator not to exercise the power or not to exercise it in a specified manner.
The direction may be expressed to have effect during a specified period or until revoked.
The Payment Systems Regulator is not required to comply with a direction under this section if or to the extent that in the opinion of the Payment Systems Regulator compliance would be incompatible with any ... international obligation of the United Kingdom.
Where the first, second and third conditions are met, the FCA may give a direction under this section to the Payment Systems Regulator.
The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to a participant in a regulated payment system.
The second condition is that the FCA is of the opinion that the exercise of the power in the manner proposed may have an adverse effect on the ability of the FCA to comply with its duty under section 1B(1) of FSMA 2000 (FCA's general duties).
The third condition is that the FCA is of the opinion that the giving of the direction is necessary in order to avoid the possible consequence falling within subsection (3).
A direction under this section is a direction requiring the Payment Systems Regulator not to exercise the power or not to exercise it in a specified manner.
The direction may be expressed to have effect during a specified period or until revoked.
The Payment Systems Regulator is not required to comply with a direction under this section if or to the extent that in the opinion of the Payment Systems Regulator compliance would be incompatible with any ... international obligation of the United Kingdom.
Where the first, second and third conditions are met, the PRA may give a direction under this section to the Payment Systems Regulator.
The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to—
a class of PRA-authorised persons, or
a particular PRA-authorised person.
The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—
threaten the stability of the UK financial system,
result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the UK financial system,
threaten the continuity of core services provided in the United Kingdom, or
have an adverse effect on the ability of the PRA to comply with its duty under section 2B(1) of FSMA 2000 (the PRA's general objective).
The third condition is that the PRA is of the opinion that the giving of the direction is necessary in order to avoid the possible consequence falling within subsection (3).
A direction under this section is a direction requiring the Payment Systems Regulator not to exercise the power or not to exercise it in a specified manner.
The direction may be expressed to have effect during a specified period or until revoked.
The Payment Systems Regulator is not required to comply with a direction under this section if or to the extent that in the opinion of the Payment Systems Regulator compliance would be incompatible with any ... international obligation of the United Kingdom.
The reference in subsection (3)(b) to the “failure” of a PRA-authorised person is to be read in accordance with section 2J(3) and (4) of FSMA 2000.
In this section—
“operator”, in relation to a recognised ... payment system, is to be read in accordance with section 183 of the Banking Act 2009;
“investment bank insolvency” means any procedure established by regulations under section 233 of the Banking Act 2009.
The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator. The board is to consist of the following members— The persons who may be appointed under sub-paragraph (2) include persons who are members of the FCA's governing body. A person may be appointed under sub-paragraph (2) only if the person has knowledge or experience which is likely to be relevant to the exercise by the Regulator of its functions. A person appointed under sub-paragraph (2)(a) or (b) is liable to removal from office by the FCA (acting with the approval of the Treasury). A person appointed under sub-paragraph (2)(c) is liable to removal from office by the FCA.
The Regulator may make arrangements for any of its functions to be discharged by— This is subject to sub-paragraphs (2) to (4). In exercising any functions within sub-paragraph (3), the Regulator must act through its board. The functions referred to in sub-paragraph (2) are— The function of issuing general guidance may not be discharged by an officer or member of staff of the Regulator or of the FCA.
The Regulator must send a copy of its annual accounts to the Comptroller and Auditor General and the Treasury as soon as is reasonably practicable. The Comptroller and Auditor General must— The Treasury must lay the copy of the certified accounts and the report before Parliament. The Regulator must send a copy of the certified accounts and the report to the FCA. Except as provided for by paragraph 7(5), the Regulator is exempt from the requirements of Part 16 of the Companies Act 2006 (audit) and its balance sheet must contain a statement to that effect. In this paragraph “annual accounts” has the meaning given by section 471 of the Companies Act 2006.
Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows. In subsection (7), after paragraph (e) insert—. In subsection (8), after “the Office of Rail Regulation,” insert “ the Financial Conduct Authority, ”.
“recognised ... payment system” means a payment system, as defined by section 182 of the Banking Act 2009, in respect of which a recognition order under section 184 of that Act is in force;
This section, section 97B, section 97C and section 97D apply where a power for the Payment Systems Regulator to make technical standards is substituted for the power of an EU entity to make EU tertiary legislation (the “original EU power”) by regulations made under section 8 of the European Union (Withdrawal) Act 2018.
The power to make technical standards includes power to modify, amend or revoke—
any technical standards made by the Payment Systems Regulator under that power;
any EU tertiary legislation made by an EU entity under the original EU power which forms part of assimilated law.
Before making any technical standards in which the FCA, the PRA or the Bank of England has an interest (within the meaning of section 138P(5) of the Financial Services and Markets Act 2000), the Payment Systems Regulator must consult the regulator concerned.
For the purposes of this section, “EU tertiary legislation” has the meaning given in section 14 of the European Union (Withdrawal) Act 2018.
The power to make technical standards is to be exercised by the Payment Systems Regulator by making an instrument under this section (a “standards instrument”).
A standards instrument must specify the provision under which the instrument is being made.
To the extent that a standards instrument does not comply with subsection (2), it is void.
A standards instrument must be published by the Payment Systems Regulator in the way appearing to the regulator to be best calculated to bring it to the attention of the public.
The Treasury must lay before Parliament a copy of each standards instrument made under this section.
The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a standards instrument.
A standards instrument may be made only if it has been approved by the Treasury.
The Treasury may refuse to approve a standards instrument if subsection (3) applies.
This subsection applies if it appears to the Treasury that the instrument would—
have implications for public funds (within the meaning of section 78(2) of the Banking Act 2009); or
prejudice any current or proposed negotiations for an international agreement between the United Kingdom and one or more other countries, international organisations or institutions.
For the purposes of subsection (3), “international organisations” includes the European Union.
The Treasury must notify the Payment Systems Regulator in writing whether or not they approve a standards instrument within four weeks after the day on which that instrument is submitted to the Treasury for approval (“the relevant period”).
Provision of a draft standards instrument to the Treasury for consultation does not amount to submission of the instrument for approval.
If the Treasury do not approve the instrument, they must—
set out in the notice given under subsection (5) the Treasury’s reasons for not approving the instrument;
lay before Parliament—
a copy of that notice;
a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.
If the Treasury do not give notice under subsection (5) before the end of the relevant period, the Treasury is deemed to have approved the standards instrument.
Section 104 (consultation in relation to generally applicable requirements) applies to making technical standards as it applies to imposing a generally applicable requirement within the meaning of section 104(1), as if—
in subsection (3)(c) the reference to the Payment Systems Regulator’s duties under section 49 were a reference to the Payment Systems Regulator’s duties under regulation 3(2) and (4) of the Payment Card Interchange Fee Regulations 2015 (“the 2015 Regulations”);
in subsection (10), the reference to regulated payment systems were a reference to regulated persons within the meaning of regulation 2(1) of the 2015 Regulations.
The provisions of the Financial Services and Markets Act 2000 listed in subsection (3) apply to technical standards made by the Payment Systems Regulator as they apply to rules made by the FCA subject to the modifications specified in subsection (3).
The provisions referred to in subsection (2) are—
section 137T (general supplementary powers) (ignoring paragraph (b));
section 138E (limit on effect of contravening rules) (ignoring subsection (3));
section 138F (notification of rules) (ignoring subsection (2));
section 138H (verification of rules) (treating the reference in subsection (2)(c) to section 138G(4) of the Act as a reference to section 97B(4)).
The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—
the extent to which its general policies and practices are consistent with its general duties under section 49, and
how its payment systems objectives may best be achieved.
The following are “relevant persons” for the purposes of this section—
participants in regulated payment systems, and
those who use, or are likely to use, services provided by regulated payment systems.
Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.
Where the Payment Systems Regulator establishes a panel under subsection (3), it must appoint one of the members of the panel to be its chair.
The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).
The Payment Systems Regulator must—
consider representations that are made to it in accordance with arrangements made under this section, and
from time to time publish, in such manner as it thinks fit, responses to the representations.
A person who receives remuneration from the FCA, the PRA, the Payment Systems Regulator, the Bank of England or the Treasury is disqualified from being appointed as a member of a panel established under subsection (3).
Subsection (5A) does not apply in respect of a panel mentioned in that subsection if regulations made by the Treasury provide for it not to apply to that panel.
Regulations under subsection (5B) may make provision in respect of a panel—
generally, or
only in relation to such descriptions of persons or cases as the regulations may specify (but the power to make such regulations may not be exercised so as to specify persons by name).
This section applies where the Payment Systems Regulator proposes to impose a generally applicable requirement (as defined by section 104(1)).
The Regulator must have regard to any specified matters that are relevant to the imposition of the requirement in question.
“Specified” means specified in regulations made by the Treasury for the purposes of this section.
The specification of a matter for the purposes of this section may apply generally to the exercise of a function or be limited in whatever way the Treasury consider appropriate, including by reference to—
the power under which the function is carried out;
the persons to whom the carrying out of the function apply;
the activities or subject-matter to which the function relates.
The duty under subsection (2) is in addition to any other requirements to have regard to matters when exercising relevant functions imposed by another provision of this Act or by any other enactment.
In this Part references to imposing a generally applicable requirement are to— and references to the requirement are to be read accordingly.
giving a general direction under section 54, or
imposing a generally-imposed requirement under section 55,
Before imposing a generally applicable requirement, the Payment Systems Regulator must—
consult the Bank of England, the FCA and the PRA, and
after doing so, publish a draft of the proposed requirement in the way appearing to the Payment Systems Regulator to be best calculated to bring it to the attention of the public.
The draft must be accompanied by—
a cost benefit analysis,
an explanation of the purpose of the proposed requirement,
an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and
an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the proposed requirement,
notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.
Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).
If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—
the representations made to it in accordance with subsection (3)(d), and
its response to them.
If the requirement differs from the draft published under subsection (2)(b) in a way which is, in the opinion of the Payment Systems Regulator, significant the Payment Systems Regulator must (in addition to complying with subsection (5)) publish details of the difference together with a cost benefit analysis.
The Payment Systems Regulator must include, in the account mentioned in subsection (5), a list of the respondents who made the representations, where those respondents have consented to the publication of their names.
For the purposes of this section a “cost benefit analysis” is—
an analysis of the costs together with an analysis of the benefits that will arise—
if the proposed requirement is imposed, or
if subsection (6) applies, from the requirement imposed, and
subject to subsection (8), an estimate of those costs and of those benefits.
The duty in subsection (5A) is not to be read as authorising or requiring such processing of personal data as would contravene the data protection legislation (but the duty is to be taken into account in determining whether particular processing of data would contravene that legislation).
If, in the opinion of the Payment Systems Regulator— the cost benefit analysis need not estimate them, but must include a statement of the Payment Systems Regulator's opinion and an explanation of it.
the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or
it is not reasonably practicable to produce an estimate,
In this section “data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).
The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).
Where representations are made to the Payment Systems Regulator by a Committee of the House of Commons or the House of Lords or a Joint Committee of both Houses in accordance with subsection (3)(d), the Payment Systems Regulator’s account mentioned in subsection (5) must also describe how the Payment Systems Regulator has considered the representations made by that Committee in making the proposed requirement.
Subsections (2)(b) and (3) to (6) do not apply if the Payment Systems Regulator considers that the delay involved in complying with them would be prejudicial to the interests of those who use, or are likely to use, services provided by regulated payment systems.
Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—
there will be no increase in costs, or
there will be an increase in costs but the increase will be of minimal significance.
In subsection (11) the “appropriate comparison” means—
in relation to subsection (3)(a), a comparison between the overall position if the requirement is imposed and the overall position if it is not imposed;
in relation to subsection (6), a comparison between the overall position after the imposing of the requirement and the overall position before it was imposed.
The duty to provide the explanation referred to in subsection (3)(ba) does not apply in relation to any proposed requirement which changes an existing requirement and the changes consist of, or include, changes which, in the Payment Systems Regulator’s opinion, are not material.
Where an explanation is not provided by virtue of subsection (12A), the draft of the proposed requirement must be accompanied by a statement of the Payment Systems Regulator’s opinion.
Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.
In subsection (1), for “two” substitute “ three ”.
After subsection (3) insert—
“regulated payment system” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);
Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.
After section 76 insert—
In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—
in subsection (1)(a), for “either regulator” substitute “a regulator”;
in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert , or;
the heading of that section becomes “Power of Treasury to require regulator to undertake investigation”.
In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute “, 74 or 76A”.
In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—
in subsection (1)(a), for “either regulator” substitute “ a regulator ”;
in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert, or ;
the heading of that section becomes “ Power of Treasury to require regulator to undertake investigation ”.
In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute “ , 74 or 76A ”.
In section 79 (conclusion of investigation), for “or 74” substitute “ , 74 or 76A ”.
In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—.
In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute “ , 74 or 76A ”.
after the definition of “listed securities” insert—;
in the definition of “regulator”, for “or the PRA” substitute “, the PRA or the Payment Systems Regulator”.
In section 83(1) (interpretation)—
“the Payment Systems Regulator” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;
in the definition of “regulator”, for “or the PRA” substitute “ , the PRA or the Payment Systems Regulator ”.
This section applies where the Payment Systems Regulator issues a public consultation.
The Payment Systems Regulator must include information in the consultation about any engagement by the Payment Systems Regulator with the statutory panels of the Payment Systems Regulator, the FCA and the PRA in relation to the matters being consulted on.
The Payment Systems Regulator is not required under subsection (2) to include any information whose publication would in the opinion of the Payment Systems Regulator be against the public interest.
For the purposes of this section, the Payment Systems Regulator issues a public consultation if it publishes any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment).
In this section a “statutory panel”—
in relation to the Payment Systems Regulator, means a panel established under section 103(3),
in relation to the FCA, has the meaning given by section 1RA(8) of FSMA 2000, and
in relation to the PRA, has the meaning given by section 2NA(8) of FSMA 2000.
Chapter 4 of Part 9A of FSMA 2000 (competition scrutiny) applies to the Payment Systems Regulator's practices and regulating provisions in relation to payment systems as it applies to the FCA's practices and regulating provisions within the meaning of that Chapter.
In subsection (1)—
the reference to the Payment Systems Regulator's practices in relation to payment systems is a reference to practices adopted by it in the exercise of functions under this Part, and
the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—
any general directions given under section 54;
any generally-imposed requirements under section 55;
any guidance given under section 96.
The Payment Systems Regulator must keep under review generally any generally applicable requirements.
The Payment Systems Regulator must prepare and publish a statement of its policy with respect to its review of requirements under section 104B.
The statement must provide information about—
how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under section 104B, and
the arrangements to ensure that those representations are considered.
In this section “relevant panel” means—
a panel of the Payment Systems Regulator established under section 103(3),
a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and
a panel of the PRA mentioned in section 2NA(8) of FSMA 2000.
If a statement published under this section is altered or replaced by the Payment Systems Regulator, the Regulator must publish the altered or replaced statement.
A statement prepared under this section must be published by the Payment Systems Regulator in the way appearing to the Regulator to be best designed to bring it to the attention of the public.
The Treasury may by direction require the Payment Systems Regulator to carry out a review of any generally applicable requirement specified in the direction if—
the requirement has been in force for at least 12 months,
the Treasury consider that it is in the public interest that the requirement is reviewed, and
it does not appear to the Treasury that—
the regulator is carrying out, or proposes to carry out, a review of that requirement, or
if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.
The Treasury must consult the Payment Systems Regulator before giving a direction under subsection (1).
In exercising the power under this section, the Treasury must have regard to the desirability of minimising any adverse effect that the carrying out of the review may have on the exercise by the Payment Systems Regulator of any of its other functions.
A direction under subsection (1) may—
specify the period within which a review must be carried out;
determine the scope and conduct of a review;
require the provision of interim reports during the carrying out of a review.
Provision made in a direction under subsection (4)(b) may include a requirement—
for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator;
for any such appointment to be made only with the approval of the Treasury.
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 (6) does not apply where the Treasury consider that publication of the direction would be against the public interest.
A direction under this section may be varied or revoked by the giving of a further direction.
This section applies where the Treasury have given a direction to the Payment Systems Regulator under section 104D(1) to carry out a review.
The Payment Systems Regulator must provide a written report to the Treasury as to the opinion of the Regulator in relation to the following matters—
whether the requirements under review advance one or more of the payment systems objectives;
whether and to what extent the requirements are functioning effectively and achieving their intended purpose;
whether any amendments need to be made to the requirements and, if so, what those amendments should be;
whether any requirements should be withdrawn (with or without replacement);
whether any other action should be taken and, if so, what that action should be.
As soon as practicable after receiving the report the Treasury must—
lay before Parliament a copy of the report, and
publish the report in such manner as the Treasury think fit.
When complying with subsection (3) the Treasury may withhold material from the report if the Treasury consider that publication of the material would be against the public interest.
The Treasury may by regulations require the Payment Systems Regulator to exercise a power under this Part to impose a generally applicable requirement in relation to a specified activity or a specified description of person.
Regulations under this section may—
specify matters that the requirement must cover;
specify a period within which the requirement must be made.
But except so far as permitted by subsection (2), regulations under this section may not require the requirement to be imposed—
in a specified form or with specified content, or
to achieve or advance a specified outcome.
If no period is specified under subsection (2)(b) the requirement must be imposed as soon as reasonably practicable after the coming into force of the regulations.
Except as provided by subsection (2), the Payment Systems Regulator must consult the FCA Cost Benefit Analysis Panel, and that Panel must provide advice, about the following matters—
the preparation of a cost benefit analysis under section 104(3)(a) or (6);
the preparation of its statement of policy under section 104H.
The requirement to consult under subsection (1)(a) does not apply in such cases as may be set out in the statement of policy maintained under section 104H.
The FCA Cost Benefit Analysis Panel must—
keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3)(a) and (6), and
provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such review.
The Payment Systems Regulator must consider representations that are made to it by the FCA Cost Benefit Analysis Panel.
The Payment Systems Regulator must from time to time publish in such manner as it thinks fit responses to the representations.
In this section references to the “FCA Cost Benefit Analysis Panel” are to the panel established under section 138IA of FSMA 2000.
The Payment Systems Regulator must prepare and publish a statement of policy in relation to the preparation of cost benefit analyses for the purposes of section 104.
The statement must provide information about—
the methodology adopted in preparing cost benefit analyses;
matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies;
matters to which the Payment Systems Regulator has regard in determining whether section 104(10) or (11) applies in relation to the preparation of a cost benefit analysis;
arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) are considered;
cases in which the requirement to consult the FCA Cost Benefit Analysis Panel in relation to the preparation of a cost benefit analysis does not apply.
The statement may include whatever other information in relation to cost benefit analyses that the Payment Systems Regulator considers appropriate.
The Payment Systems Regulator may alter or replace a statement published under this section.
The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).
Publication under this section is to be made in such manner as the Payment Systems Regulator considers best designed to bring the statement to the attention of the public.
The Payment Systems Regulator must prepare and publish a statement of policy in relation to the appointment of members to any panel established under section 103(3).
The statement must provide information about—
the process adopted for making appointments;
matters considered in determining who is appointed.
The statement may provide whatever other information in relation to the making of appointments that the Payment Systems Regulator considers appropriate.
The Payment Systems Regulator may alter or replace a statement published under this section.
The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).
Before publishing a statement under this section the Payment Systems Regulator must—
consult the Treasury about the proposed statement, and
have regard to any representations the Treasury make in response to the consultation.
Publication under this section is to be made in such manner as the Payment Systems Regulator considers best designed to bring the statement to the attention of the public.
This section applies where it appears to the Payment Systems Regulator that there is a material risk that a relevant action it proposes to take would be incompatible with an international trade obligation.
The Payment Systems Regulator must give written notice to the Treasury of the proposed action before proceeding to take it.
Subsection (2) applies only if a duty to consult applies in respect of the taking of the relevant action.
For the purposes of subsection (1) the Payment Systems Regulator proposes to take a “relevant action” if it—
proposes to impose a generally applicable requirement, or
proposes to make changes to its general policies and practices.
For the purposes of subsection (3) a duty to consult applies in respect of a relevant action if—
the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or
any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies.
The requirement imposed by subsection (2) must be carried out before the duty to consult in respect of the relevant action is carried out.
Subsection (8) applies in a case where a notice under subsection (2) is not given because of subsection (3).
The Payment Systems Regulator must give written notice to the Treasury of the relevant action it has taken as soon as reasonably practicable after taking it if it appears to the Regulator that there is a material risk that the action is incompatible with an international trade obligation.
In this section “international trade obligation” means an obligation of the United Kingdom that relates to financial services or markets under—
a free trade agreement, as defined by section 5(1) of the Trade Act 2021, or
the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.
The Payment Systems Regulator may not exercise any power under sections 54 to 58 for the purposes of enabling a person to obtain or maintain access to, or participation in, a payment system in circumstances in which regulation 103 (prohibition on restrictive rules on access to payment systems) or 104 (indirect access to designated payment systems) of the Payment Services Regulations 2017 applies in relation to access to, or participation in, the payment system by the person.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In sub-paragraph (1) the reference to the FCA's functions includes its functions under Part 5 of the Financial Services (Banking Reform) Act 2013 (regulation of payment systems).
In sub-paragraph (1) the reference to the PRA's functions includes its functions under Part 5 of the Financial Services (Banking Reform) Act 2013 (regulation of payment systems).
For provision conferring immunity from liability in damages on the Bank of England in respect of its functions, see section 244 of the Banking Act 2009.
In this Part—
References in this Part to the Payment Systems Regulator's payment systems objectives are to be read in accordance with section 49(2).
References in this Part to the Bank of England's capacity as a monetary authority are to be read in accordance with section 244 of the Banking Act 2009.
The Treasury may at any time by notice in writing to the Payment Systems Regulator make recommendations to the Regulator about aspects of the economic policy of His Majesty’s Government to which the Regulator should have regard when considering—
how to advance one or more of its payment systems objectives,
the application of the regulatory principles in section 53, and
its exercise of functions under—
Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,
the Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911), or
the Payment Services Regulations 2017 (S.I. 2017/752).
The Treasury must make recommendations under subsection (1) at least once in each Parliament.
The Payment Systems Regulator must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—
action that the Regulator has taken or intends to take in accordance with the recommendation, or
the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation.
The notice under subsection (3) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given under subsection (1).
Where the Payment Systems Regulator has given notice under subsection (3) in relation to a recommendation, the Regulator must by notice in writing update the Treasury on the matters mentioned in subsection (3)(a) and (b) before the end of each subsequent period of 12 months.
Subsection (5) does not apply if the Treasury have notified the Payment Systems Regulator in writing that no update (or further update) is required.
The Payment Systems Regulator is not required under subsection (3) or (5) to provide any information whose publication would in the opinion of the Regulator be against the public interest.
The Treasury must—
publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and
lay a copy of it before Parliament.
This Part—
provides for a procedure to be known as FMI administration, ...
restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, and
confers power on the Bank of England to participate in proceedings under Part 26A of the Companies Act 2006 (arrangements and reconstructions: companies in financial difficulty).
In this Part “infrastructure company” has the meaning given by this section.
“Infrastructure company” means a company which is—
the operator of a recognised ... payment system, other than an operator excluded by subsection (3),
a recognised CSD ..., ...
a recognised DSA service provider,
a company designated by the Treasury under subsection (4).
a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or
But a company is not an infrastructure company if it is a recognised central counterparty, as defined by section 285 of FSMA 2000.
The Treasury may by order designate a company for the purposes of subsection (2)(c) if—
the company provides services to a person falling within subsection (2)(a), (b) or (ba), and
the Treasury are satisfied that an interruption in the provision of those services would have a serious adverse effect on the effective operation of the recognised ... payment system or securities settlement system in question or, in the case of a person falling within subsection (2)(ba), a relevant function.
An order under subsection (4) must specify the recognised ... payment system or securities settlement system in connection with which the company is designated.
Before designating a company under subsection (4), the Treasury must consult—
the company to be designated,
the person within subsection (2)(a), (b) or (ba) to whom the company provides services,
the Bank of England,
if the company is a PRA-authorised person, the PRA and the FCA, and
if the company is an authorised person other than a PRA-authorised person, the FCA.
In subsection (4)(b), “relevant function” means a function performed by the person in relation to wholesale cash distribution.
In this Part—
Expressions used in the definition of “securities settlement system” in subsection (1) are to be read in accordance with section 783 of the Companies Act 2006.
In this Part “FMI administration order” means an order which—
is made by the court in relation to an infrastructure company, and
directs that, while the order is in force, the affairs, business and property of the company are to be managed by a person appointed by the court.
A person appointed as mentioned in subsection (1)(b) is referred to in this Part as an FMI administrator.
The FMI administrator of a company must manage its affairs, business and property, and exercise and perform the FMI administrator's functions, so as to achieve the objective in section 115.
Where an FMI administrator is appointed in relation to the operator of a recognised ... payment system , or a recognised DSA service provider, ..., the objective of the FMI administration is—
to ensure that the system or provider is and continues to be maintained and operated as an efficient and effective system or provider,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , and
to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose ....
Where an FMI administrator is appointed in relation to a company designated under subsection (4) of section 112, the objective of the FMI administration is—
to ensure that services falling within that subsection continue to be provided, and
to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose.
Where an FMI administrator is appointed in relation to a recognised CSD ..., the objective of the FMI administration is—
to ensure that the system is and continues to be maintained and operated as an efficient and effective system,
to ensure that the protected activities continue to be carried on, and
to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose or those purposes.
The protected activities referred to in subsection (1A)(b) are such activities as the Bank of England may from time to time direct, which must be—
regulated activities falling within section 285(3D) of FSMA 2000, or
related activities which are necessary for the efficient carrying on of any of those regulated activities.
Where an FMI administrator is appointed in relation to a company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, the objective of the FMI administration is—
to ensure that the functions performed by the person in relation to wholesale cash distribution are and continue to be performed efficiently and effectively, and
to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose or those purposes.
The specified means are—
the rescue as a going concern of the company subject to the FMI administration order, and
transfers falling within subsection (5).
A transfer falls within this subsection if it is a transfer as a going concern— of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the FMI administration.
to another company, or
as respects different parts of the undertaking of the company subject to the FMI administration order, to two or more different companies,
The means by which transfers falling within subsection (5) may be effected include, in particular—
a transfer of the undertaking of the company subject to the FMI administration order, or of part of its undertaking, to a wholly-owned subsidiary of that company, and
the transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).
The objective of the FMI administration may be achieved by transfers falling within subsection (5) only to the extent that—
the rescue as a going concern of the company subject to the FMI administration order is not reasonably practicable or is not reasonably practicable without such transfers,
the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers, or
such transfers would produce a result for the company's creditors as a whole that is better than the result that would be produced without them.
An application for an FMI administration order may be made to the court by the Bank of England.
An application must nominate a person to be appointed as the FMI administrator.
The infrastructure company must be given notice of an application, in accordance with rules under section 411 of the 1986 Act (as applied in relation to FMI administration).
The court may make an FMI administration order in relation to an infrastructure company if satisfied—
that the company is unable to pay its debts,
that the company is likely to be unable to pay its debts, or
that, on a petition presented by the Secretary of State under section 124A of the 1986 Act (petition for winding up on grounds of public interest), it would be just and equitable (disregarding the objective of the FMI administration) to wind up the company.
The court may not make an FMI administration order on the ground set out in subsection (1)(c) unless the Secretary of State has certified to the court that the case is one in which the Secretary of State considers (disregarding the objective of the FMI administration) that it would be appropriate to petition under section 124A of the 1986 Act.
On an application for an FMI administration order, the court may—
grant the application;
dismiss the application;
adjourn the application (generally or to a specified date);
make an interim order;
treat the application as a winding-up petition and make any order which the court could make under section 125 of the 1986 Act;
make any other order which the court thinks appropriate.
An interim order under subsection (3)(d) may, in particular—
restrict the exercise of a power of the company or of its directors;
make provision conferring a discretion on the court or on a person qualified to act as an insolvency practitioner in relation to the company.
For the purposes of this section a company is unable to pay its debts if it is treated as being so unable under section 123 of the 1986 Act (definition of inability to pay debts).
The FMI administrator of a company—
is an officer of the court, and
in exercising and performing powers and duties in relation to the company, is the company's agent.
The management by the FMI administrator of a company of any of its affairs, business or property must be carried out for the purpose of achieving the objective of the FMI administration as quickly and efficiently as is reasonably practicable.
The FMI administrator of a company must exercise and perform powers and duties in the way which, so far as it is consistent with the objective of the FMI administration to do so, best protects—
the interests of the company's creditors as a whole, and
subject to those interests, the interests of the company's members as a whole.
This section applies where, before the commencement of FMI administration, the infrastructure company had entered into arrangements with a supplier for the provision of a supply to the infrastructure company.
After the commencement of FMI administration, the supplier—
must not terminate a supply unless—
any charges in respect of the supply which relate to a supply given after the commencement of FMI administration remain unpaid for more than 28 days,
the FMI administrator consents to the termination, or
the supplier has the permission of the court, which may be given if the supplier can show that the continued provision of the supply would cause the supplier to suffer hardship,
must not make it a condition of a supply that any charges in respect of the supply which relate to a supply given before the commencement of FMI administration are paid, and
must not do anything which has the effect of making it a condition of the giving of a supply that any charges within paragraph (b) are paid.
Where, before the commencement of FMI administration, a contractual right to terminate a supply has arisen but has not been exercised, then, for the purposes of this section, the commencement of FMI administration causes that right to lapse and the supply is only to be terminated if a ground in subsection (2)(a) applies.
Any provision in a contract between the infrastructure company and the supplier that purports to terminate the agreement if any action is taken to put the infrastructure company in FMI administration is void.
Any expenses incurred by the infrastructure company on the provision of a supply after the commencement of FMI administration are to be treated as necessary disbursements in the course of the FMI administration.
In this section—
“payment system” has the meaning given by section 41;
After section 48A insert—
After section 81B insert— After section 81C insert— In section 81D (interpretation: “banking group company” etc)—
In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—
in subsection (7)(b)(ii), after “Part 1” insert “ (and Condition 5 has been met, if applicable) ”;
after subsection (8) insert—;
in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert, and ;
after subsection (10) insert—
If the Bank of England considers it necessary to do so for the purpose of achieving the objective of an FMI administration, the Bank may direct the FMI administrator to take, or refrain from taking, specified action.
In deciding whether to give a direction under this section, the Bank of England must have regard to the public interest in—
the protection and enhancement of the stability of the financial system of the United Kingdom, and
the maintenance of public confidence in that system.
A direction under this section must not be incompatible with a direction of the court that is in force under Schedule B1 to the 1986 Act.
The Bank of England must, within a reasonable time of giving the direction, give the FMI administrator a statement of its reasons for giving the direction.
A person listed in subsection (6) has immunity from liability in damages in respect of action or inaction in accordance with a direction under this section.
Those persons are—
the FMI administrator;
the company in FMI administration;
the officers or staff of the company.
Immunity conferred by this section does not extend to action or inaction—
in bad faith, or
in contravention of section 6(1) of the Human Rights Act 1998.
This section does not limit the powers conferred on the Bank of England by section 191 of the Banking Act 2009 (directions) in relation to a recognised ...payment system or section 206M of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act.
Schedule 6 (which applies the provisions of Schedule B1 to the 1986 Act about ordinary administration orders and certain other enactments to FMI administration orders) has effect.
Schedule 7 (which makes provision for transfer schemes to achieve the objective of an FMI administration) has effect.
The power to make rules conferred by section 411(1B) of the 1986 Act (rules relating to bank administration) is to apply for the purpose of giving effect to this Part as it applies for the purposes of giving effect to Part 3 of the Banking Act 2009 (and, accordingly, as if the reference in section 411(1B) to that Part included a reference to this Part).
A petition by a person other than the Bank of England for a winding up order in respect of an infrastructure company may not be determined unless—
the petitioner has notified the Bank of England that the petition has been presented, and
the period of 14 days beginning with the day on which the notice is received by the Bank has ended.
A resolution for the voluntary winding up of an infrastructure company may not be made unless—
the infrastructure company has applied to the court under this section,
the company has notified the Bank of England that the application has been made, and
after the end of the period of 14 days beginning with the day on which the notice is received by the Bank, the court gives permission for the resolution to be made.
This section applies where an ordinary administration application is made in relation to an infrastructure company by a person other than the Bank of England.
The court must dismiss the application if—
an FMI administration order is in force in relation to the company, or
an FMI administration order has been made in relation to the company but is not yet in force.
Where subsection (2) does not apply, the court, on hearing the application, must not exercise its powers under paragraph 13 of Schedule B1 to the 1986 Act (other than its power of adjournment) unless—
the applicant has notified the Bank of England that the application has been made, and
the period of 14 days beginning with the day on which the notice is received by the Bank has ended.
On the making of an FMI administration order in relation to an infrastructure company, the court must dismiss any ordinary administration application made in relation to the company which is outstanding.
“Ordinary administration application” means an application under paragraph 12 of Schedule B1 to the 1986 Act.
A person may not take any step to enforce a security over property of an infrastructure company unless—
notice of the intention to do so has been given to the Bank of England, and
the period of 14 days beginning with the day on which the notice was received by the Bank has ended.
This section applies where an FMI administration order has been made in relation to an infrastructure company.
The Treasury may, out of money provided by Parliament, make loans to the company for achieving the objective in section 115.
A loan under this section may be made on such terms as the Treasury think fit.
The Treasury must pay into the Consolidated Fund sums received by them as a result of this section.
This section applies where an FMI administration order has been made in relation to an infrastructure company.
The Treasury may agree to indemnify persons in respect of one or both of the following—
liabilities incurred in connection with the exercise of powers and duties by the FMI administrator;
loss or damage sustained in that connection.
The agreement may be made in whatever manner, and on whatever terms, the Treasury think fit.
As soon as practicable after agreeing to indemnify persons under this section, the Treasury must lay before Parliament a statement of the agreement.
If sums are paid by the Treasury in consequence of an indemnity agreed to under this section, the infrastructure company must pay the Treasury—
such amounts in or towards the repayment to them of those sums as the Treasury may direct, and
interest, at such rates as they may direct, on amounts outstanding under this subsection.
Subsection (5) does not apply in the case of a sum paid by the Treasury for indemnifying a person in respect of a liability to the infrastructure company.
Where a sum has been paid out by the Treasury in consequence of an indemnity agreed to under this section, the Treasury must lay a statement relating to that sum before Parliament—
as soon as practicable after the end of the financial year in which that sum is paid out, and
(except where subsection (5) does not apply in the case of the sum) as soon as practicable after the end of each subsequent relevant financial year.
In relation to a sum paid out in consequence of an indemnity, a financial year is a relevant financial year for the purposes of subsection (7) unless—
before the beginning of that year, the whole of that sum has been repaid to the Treasury under subsection (5), and
the infrastructure company is not at any time during that year subject to liability to pay interest on amounts that became due under that subsection in respect of that sum.
The power of the Treasury to agree to indemnify persons—
is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons, but
includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.
For the purposes of this section each of the following is a relevant person—
the FMI administrator;
an employee of the FMI administrator;
a member or employee of a firm of which the FMI administrator is a member;
a member or employee of a firm of which the FMI administrator is an employee;
a member or employee of a firm of which the FMI administrator was an employee or member at a time when the order was in force;
a body corporate which is the employer of the FMI administrator;
an officer, employee or member of such a body corporate.
For the purposes of subsection (10)—
the references to the FMI administrator are to be read, where two or more persons are appointed to act as the FMI administrator, as references to any one or more of them, and
the references to a firm of which a person was a member or employee at a particular time include references to a firm which holds itself out to be the successor of a firm of which the person was a member or employee at that time.
The Treasury must pay into the Consolidated Fund sums received by them as a result of subsection (5).
This section applies where Part 26A of the Companies Act 2006 (“the 2006 Act”) (arrangements and reconstructions: companies in financial difficulty) applies in relation to an infrastructure company.
A relevant applicant must give notice to the Bank of England of—
any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and
any application which the relevant applicant believes a creditor or member of the company has made, or intends to make, under section 901C(1) of that Act in relation to the company.
A relevant applicant may not make an application under section 901C(1) of the 2006 Act in relation to the company without the consent of the Bank of England.
In this section “relevant applicant”, in relation to a company, means—
the company;
if the company is being wound up, the liquidator;
if the company is in administration, the administrator.
The Bank of England is entitled to be heard at any hearing of an application made under section 901C or 901F of the 2006 Act in relation to the company.
Any notice or other document required to be sent to a creditor of the company must also be sent to the Bank of England.
A person appointed for the purpose by the Bank of England is entitled—
to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;
to make representations as to any matter for decision at such a meeting.
Sections 197, 198 and 202A of the Banking Act 2009, and sections 201 and 202 of that Act, so far as relating to those sections, apply in relation to a failure by an infrastructure company to comply with subsection (2) or (3) above as they apply in relation to a compliance failure within the meaning of Part 5 of that Act.
In this Part—
In this Part references to the FMI administrator of a company include a person appointed under paragraph 91 or 103 of Schedule B1 to the 1986 Act, as applied by Schedule 6 to this Act, to be the FMI administrator of a company.
In this Part references to a person qualified to act as an insolvency practitioner in relation to a company are to be read in accordance with Part 13 of the 1986 Act, but as if references in that Part to a company included a company registered under the Companies Act 2006 in Northern Ireland.
This section makes provision about this Part in its application to Northern Ireland.
Any reference to any provision of the 1986 Act is to have effect as a reference to the corresponding provision of the Insolvency (Northern Ireland) Order 1989.
Section 127(3) is to have effect as if the reference to Northern Ireland were a reference to England and Wales or Scotland.
Schedule 8 (which contains provision conferring on the FCA functions under competition legislation) has effect.
For section 2H of FSMA 2000 substitute—
In section 3B (regulatory principles to be applied by both regulators), in subsection (1), for “2H(1)(a)” substitute “ 2H(2) ”.
In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority)—
in paragraph 19 (annual report), in sub-paragraph (1)—
after paragraph (b) insert—, and
in paragraph (c), omit the words from “and of” onwards, and
in paragraph 20 (consultation about annual report), in sub-paragraph (1)(c), for the words from “and the PRA” onwards substitute “ and the PRA has facilitated effective competition in accordance with section 2H and has considered the regulatory principles in section 3B ”.
In section 137C of FSMA 2000 (FCA general rules: cost of credit and duration of credit agreements), after subsection (1) insert—
In Schedule 1ZA to FSMA 2000, in paragraph 11 (FCA's annual report), in sub-paragraph (1), after paragraph (h) insert—.
The FCA must ensure any rules that it is required to make as a result of the amendment made by subsection (1) are made not later than 2 January 2015 and apply (at least) to agreements entered into on or after that date.
In section 1Q of FSMA 2000 (the Consumer Panel), after subsection (5) insert—
After section 192J of FSMA 2000 insert—
In section 192K of FSMA 2000 (power to impose penalty or issue censure)—
in subsection (1), after “section 192J” insert “ or 192JB ”, and
after that subsection insert—
Part 22 of FSMA 2000 (auditors and actuaries) is amended as follows.
After section 339A insert—
The italic cross-heading before section 339A becomes “ General duties of regulator ”.
After section 410 of FSMA 2000 insert—
In section 3A of FSMA 2000 (meaning of “regulator”), in subsection (3)—
omit the “or” at the end of paragraph (a), and
after paragraph (b) insertor
Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is amended as follows.
In subsection (1)(a) (orders subject to affirmative procedure)—
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for “144(4), 192(b) or (e), 138K(6)(c)” substitute “ 138K(6)(c), 144(4), 192(b) or (e) ”.
In subsection (2) (regulations subject to affirmative procedure), after “90B,” insert “ 142W, ”.
After subsection (2) insert—
In subsection (8), for “or 23A” substitute “ , 23A or 142Z ”.
The Bank of England Act 1998 is amended as follows.
In section 7 (accounts), in subsection (4), for the words from “appropriate” to the end substitute “ necessary to do so having regard to the Financial Stability Objective ”.
After section 7 insert—
Schedule 9 (which contains provision about building societies) has effect.
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The Schedule to the Compensation Act 2006 (claims management regulations) is amended as follows.
In paragraph 8 (rules about conduct of authorised persons), in sub-paragraph (2)(b), after sub-paragraph (i) insert—.
In paragraph 9 (codes of practice about conduct of authorised persons), in sub-paragraph (2)(b), after sub-paragraph (i) insert—.
Regulations under sub-paragraph (1) may enable the Regulator to require an authorised person to pay a penalty.
In paragraph 11 (requirement to have indemnity insurance), in sub-paragraph (2)(b), after “Regulator” insert “to require the payment of a penalty by an authorised person or”.
In paragraph 14 (enforcement), in sub-paragraph (4), for the words from “impose” to “authorisation” substitute “require an authorised person to pay a penalty, or to impose conditions on, suspend or cancel a person’s authorisation,”.
After paragraph 15 insert—
In section 13 of the Compensation Act 2006 (appeals and references to Tribunal)—
in subsection (1), omit the “or” at the end of paragraph (d) and after paragraph (e) insert , or;
after subsection (1) insert—;
in subsection (3), after paragraph (d) insert—.
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The Schedule to the Compensation Act 2006 (claims management regulations) is amended as set out in subsections (2) and (3).
The provision in paragraph 7 becomes sub-paragraph (1) of that paragraph.
The fees that may be charged by the Regulator by virtue of sub-paragraph (1) include fees in respect of costs incurred by the Regulator for the purposes of meeting any leviable OLC expenditure.
The Legal Services Act 2007 is amended as set out in subsections (5) and (6).
After section 174 insert—
In section 206 (Parliamentary control of orders and regulations), in subsection (4), after paragraph (o) insert—.
Schedule 10 (which contains amendments of, or connected with, the Financial Services Act 2012 and amendments of provisions amended by that Act) has effect.
Any power of the Treasury, the Secretary of State or the Lord Chancellor to make an order or regulations under this Act is exercisable by statutory instrument.
Subsection (1) does not apply to an order under section 43 (payment systems: designation orders).
An order or regulations made by the Treasury, the Secretary of State or the Lord Chancellor under this Act may—
make different provision for different cases, and
contain such incidental or transitional provision as the person making the order or regulations considers appropriate.
A statutory instrument containing an order or regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament, unless—
the instrument contains only provision made under section 148 (commencement), or
the instrument is required by subsection (3) or any other enactment to be laid in draft before, and approved by a resolution of, each House.
Subsection (3) applies to a statutory instrument that contains (with or without other provisions)—
regulations under section 7 (building societies: power to make provision about ring-fencing);
an order under section 41(4) (meaning of “payment system”);
regulations under section 41(2C) (meaning of “digital settlement asset”);
an order under section 145 (power to make further consequential amendments) that amends or repeals primary legislation;
an order under paragraph 6 of Schedule 6 (conduct of FMI administration).
regulations under section 102B (matters to consider when imposing generally applicable requirements);
regulations under section 104F (power to require imposition of generally applicable requirements);
A statutory instrument to which this subsection applies may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
In subsection (2)(c) “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 section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—
The Treasury, the Secretary of State or the Lord Chancellor may by order make such provision amending, repealing, revoking or applying with modifications any enactment to which this section applies as the person making the order considers 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.
The Treasury, the Secretary of State or the Lord Chancellor may by order make such provision as the person making the order considers 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 this section may—
confer functions on the FCA or the PRA;
modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).
The provisions of this Act extend to England and Wales, Scotland and Northern Ireland. This is subject to subsection (2).
The amendments made by the following sections have the same extent as the enactments amended—
section 13 (preferential debts: Great Britain),
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This Part comes into force on the day on which this Act is passed.
The following provisions— section 131, and section 138 and Schedule 9, apart from paragraph 4 of that Schedule, come into force at the end of the period of 2 months beginning with the day on which this Act is passed.
Sections 139 and 140(1) to (3) come into force on such day as the Secretary of State may by order appoint.
Section 140(4) to (6) comes into force on such day as the Lord Chancellor may by order appoint.
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 (Banking Reform) Act 2013.