Financial Services (Banking Reform) Act 2013
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-1"><num><b>PART 1</b></num><heading>Ring-fencing</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-ringfencing"><heading><i>Ring-fencing</i></heading><section eId="section-1"><num>1</num><heading>Objectives of Prudential Regulation Authority</heading><subsection eId="section-1-1"><num>(1)</num><content><p>Section 2B of FSMA 2000 (the PRA's general objective) is amended as follows.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “and”, and</p></content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>discharging its general functions in relation to the matters mentioned in subsection (4A) in a way that seeks to—</p></intro><level class="para2"><num>(i)</num><content><p>ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para2"><num>(ii)</num><content><p>ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para2"><num>(iii)</num><content><p>minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could affect the continuity of the provision in the United Kingdom of core services.</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-1-3"><num>(3)</num><content><p><mod>In subsection (4), for “subsection (3)” substitute <quotedText>“
subsection (3)(a) and (b)
”</quotedText>.</mod></p></content></subsection><subsection eId="section-1-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The matters referred to in subsection (3)(c) are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-1-5"><num>(5)</num><intro><p>In section 2J of FSMA 2000 (interpretation of Chapter 2 of Part 1)—</p></intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content><p><mod>in subsection (3), for “a PRA-authorised” substitute <quotedText>“
an authorised
”</quotedText>,</mod></p></content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>For the purposes of this Chapter, the cases in which a person (“P”) other than an authorised person is to be regarded as failing include any case where P enters insolvency.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), for “subsection (3)(a)” substitute <quotedText>“
subsections (3)(a) and (3A)
”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-2"><num>2</num><heading>Modification of objectives of Financial Conduct Authority</heading><content><p><mod>After section 1I of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Modifications applying if core activity not regulated by </i>PRA</heading><section><num>1IA</num><heading>Modifications applying if core activity not regulated by PRA</heading><subsection><num>(1)</num><content><p>If and so long as any regulated activity is a core activity (see section 142B) without also being a PRA-regulated activity (see section 22A), the provisions of this Chapter are to have effect subject to the following modifications.</p></content></subsection><subsection><num>(2)</num><intro><p>Section 1B is to have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsection (3), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>in relation to the matters mentioned in section 1EA(2), the continuity objective (see section 1EA).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (4), for “or the integrity objective,” there were substituted <quotedText>“
, the integrity objective or (in relation to the matters mentioned in section 1EA(2)) the continuity objective,
”</quotedText>.</mod></p></content></level></subsection><subsection><num>(3)</num><content><p><mod>After section 1E there is to be taken to be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1EA</num><heading>Continuity objective</heading><subsection><num>(1)</num><content><p>In relation to the matters mentioned in subsection (2), the continuity objective is: protecting the continuity of the provision in the United Kingdom of core services (see section 142C).</p></content></subsection><subsection><num>(2)</num><intro><p>Those matters are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The FCA's continuity objective is to be advanced primarily by—</p></intro><level class="para1"><num>(a)</num><content><p>seeking to ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para1"><num>(b)</num><content><p>seeking to ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para1"><num>(c)</num><content><p>seeking to minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could adversely affect the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(c), “<term refersTo="#term-failure">failure</term>” is to be read in accordance with section 2J(3) to (4).</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></section><section eId="section-3"><num>3</num><heading>Amendment of PRA power of direction</heading><intro><p>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (4)—</p></intro><level class="para1" eId="section-3-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “or”, and</p></content></level><level class="para1" eId="section-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b), insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></level></section><section eId="section-4"><num>4</num><heading>Ring-fencing of certain activities</heading><subsection eId="section-4-1"><num>(1)</num><content><p><mod>After Part 9A of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><part><num><b>PART 9B</b></num><heading>Ring-fencing</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Introductory</i></heading><section><num>142A</num><heading>“Ring-fenced body”</heading><subsection><num>(1)</num><content><p>In this Act “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which carries on one or more core activities (see section 142B) in relation to which it has a Part 4A permission.</p></content></subsection><subsection><num>(2)</num><intro><p>But “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” does not include—</p></intro><level class="para1"><num>(a)</num><content><p>a building society within the meaning of the Building Societies Act 1986, or</p></content></level><level class="para1"><num>(b)</num><content><p>a <abbr class="acronym" title="United Kingdom">UK</abbr> institution of a class exempted by order made by the Treasury.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under subsection (2)(b) may be made in relation to a class of <abbr class="acronym" title="United Kingdom">UK</abbr> institution only if the Treasury are of the opinion that the exemption conferred by the order would not be likely to have a significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>Subject to that, in deciding whether and, if so, how to exercise their powers under subsection (2)(b), the Treasury must have regard to the desirability of minimising any adverse effect that the ring-fencing provisions might be expected to have on competition in the market for services provided in the course of carrying on core activities, including any adverse effect on the ease with which new entrants can enter the market.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4) “<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection><subsection><num>(6)</num><content><p>An order under subsection (2)(b) may provide for the exemption to be subject to conditions.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means a body corporate incorporated in the United Kingdom.</p></content></subsection></section><section><num>142B</num><heading>Core activities</heading><subsection><num>(1)</num><content><p>References in this Act to a “core activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of accepting deposits (whether carried on in the United Kingdom or elsewhere) is a core activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that it is not necessary for either of the following purposes that the regulated activity of accepting deposits should be a core activity when carried on in the specified circumstances.</p></content></subsection><subsection><num>(4)</num><intro><p>Those purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>to secure an appropriate degree of protection for the depositors concerned, or</p></content></level><level class="para1"><num>(b)</num><content><p>to protect the continuity of the provision in the United Kingdom of services provided in the course of carrying on the regulated activity of accepting deposits.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury may by order provide for a regulated activity other than that of accepting deposits to be a core activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(6)</num><intro><p>An order under subsection (5) may be made only if the Treasury are of the opinion—</p></intro><level class="para1"><num>(a)</num><content><p>that an interruption of the provision of services provided in the United Kingdom in the carrying on of the regulated activity concerned could adversely affect the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system or of a significant part of that system, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the continuity of the provision of those services can more effectively be protected by treating the activity as a core activity.</p></content></level></subsection></section><section><num>142C</num><heading>Core services</heading><subsection><num>(1)</num><content><p>References in this Act to “core services” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><intro><p>The following are core services—</p></intro><level class="para1"><num>(a)</num><content><p>facilities for the accepting of deposits or other payments into an account which is provided in the course of carrying on the core activity of accepting deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>facilities for withdrawing money or making payments from such an account;</p></content></level><level class="para1"><num>(c)</num><content><p>overdraft facilities in connection with such an account.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Treasury may by order provide that any other specified services provided in the course of carrying on the core activity of accepting deposits are also core services.</p></content></subsection><subsection><num>(4)</num><content><p>If an order under section 142B(5) provides for an activity other than that of accepting deposits to be a core activity, the Treasury must by order provide that specified services provided in the course of carrying on that activity are core services.</p></content></subsection><subsection><num>(5)</num><content><p>The services specified by order under subsection (4) must be services in relation to which the Treasury are of the opinion mentioned in section 142B(6)(a).</p></content></subsection></section><section><num>142D</num><heading>Excluded activities</heading><subsection><num>(1)</num><content><p>References in this Act to an “excluded activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of dealing in investments as principal (whether carried on in the United Kingdom or elsewhere) is an excluded activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that allowing ring-fenced bodies to deal in investments as principal in the specified circumstances would not be likely to result in any significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>The Treasury may by order provide for an activity other than the regulated activity of dealing in investments as principal to be an excluded activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(5)</num><intro><p>An activity to which an order under subsection (4) relates—</p></intro><level class="para1"><num>(a)</num><content><p>need not be a regulated activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>may be an activity carried on in the United Kingdom or elsewhere.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In deciding whether to make an order under subsection (4) in relation to any activity, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it carried on the activity concerned, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the carrying on of that activity by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(7)</num><content><p>An order under subsection (4) may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection></section><section><num>142E</num><heading>Power of Treasury to impose prohibitions</heading><subsection><num>(1)</num><intro><p>The Treasury may by order prohibit ring-fenced bodies from—</p></intro><level class="para1"><num>(a)</num><content><p>entering into transactions of a specified kind or with persons falling within a specified class;</p></content></level><level class="para1"><num>(b)</num><content><p>establishing or maintaining a branch in a specified country or territory;</p></content></level><level class="para1"><num>(c)</num><content><p>holding in specified circumstances shares or voting power in companies of a specified description.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In deciding whether to make an order under this section imposing a prohibition, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it did the thing to which the prohibition relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the doing of that thing by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under this section may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any prohibition to be subject to exemptions specified in the order;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for any exemption to be subject to conditions specified in the order.</p></content></level></subsection></section><section><num>142F</num><heading>Orders under section 142A, 142B, 142D or 142E</heading><subsection><num>(1)</num><intro><p>An order made under section 142A, 142B, 142D or 142E may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise or require the making of rules by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(b)</num><content><p>authorise the making of other instruments by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(c)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If the order confers powers on a regulator or authorises or requires the making of rules or other instruments by a regulator, the order may also—</p></intro><level class="para1"><num>(a)</num><content><p>impose conditions on the exercise of any power conferred on the regulator;</p></content></level><level class="para1"><num>(b)</num><content><p>impose consultation requirements on the regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>make the exercise of a power by the regulator subject to the consent of the Treasury.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</i></heading><section><num>142G</num><heading>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</heading><subsection><num>(1)</num><intro><p>A ring-fenced body which—</p></intro><level class="para1"><num>(a)</num><content><p>carries on an excluded activity or purports to do so, or</p></content></level><level class="para1"><num>(b)</num><content><p>contravenes any provision of an order under section 142E,</p></content></level><wrapUp><p>is to be taken to have contravened a requirement imposed on the body by the appropriate regulator under this Act.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>The contravention does not—</p></intro><level class="para1"><num>(a)</num><content><p>make a person guilty of an offence;</p></content></level><level class="para1"><num>(b)</num><content><p>make a transaction void or unenforceable;</p></content></level><level class="para1"><num>(c)</num><content><p>(subject to subsection (3)) give rise to any right of action for breach of statutory duty.</p></content></level></subsection><subsection><num>(3)</num><content><p>In such cases as the Treasury may specify by order, the contravention is actionable at the suit of a person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a ring-fenced body which is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other ring-fenced body, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fencing rules</i></heading><section><num>142H</num><heading>Ring-fencing rules</heading><subsection><num>(1)</num><intro><p>In the exercise of its power to make general rules, the appropriate regulator must in particular make rules—</p></intro><level class="para1"><num>(a)</num><content><p>requiring a ring-fenced body to make arrangements to ensure the effective provision to the ring-fenced body of services and facilities that it requires in relation to the carrying on of a core activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>making provision for the group ring-fencing purposes applying to ring-fenced bodies and to authorised persons who are members of a ring-fenced body's group.</p></content></level></subsection><subsection><num>(2)</num><content><p>Section 142E(1)(c) does not affect the power of the appropriate regulator to make general rules imposing restrictions on the extent of the shares or voting power that a ring-fenced body may hold in another company, except where a restriction on the extent of the shares or voting power that the ring-fenced body may hold in the company is imposed by order under section 142E(1)(c).</p></content></subsection><subsection><num>(3)</num><content><p>General rules that are required by this section or make provision falling within subsection (2) are in this Act referred to as “<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>”.</p></content></subsection><subsection><num>(4)</num><intro><p>The “group ring-fencing purposes” are—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring as far as reasonably practicable that the carrying on of core activities by a ring-fenced body is not adversely affected by the acts or omissions of other members of its group;</p></content></level><level class="para1"><num>(b)</num><intro><p>ensuring as far as reasonably practicable that in carrying on its business a ring-fenced body—</p></intro><level class="para2"><num>(i)</num><content><p>is able to take decisions independently of other members of its group, and</p></content></level><level class="para2"><num>(ii)</num><content><p>does not depend on resources which are provided by a member of its group and which would cease to be available to the ring-fenced body in the event of the insolvency of the other member;</p></content></level></level><level class="para1"><num>(c)</num><content><p>ensuring as far as reasonably practicable that the ring-fenced body would be able to continue to carry on core activities in the event of the insolvency of one or more other members of its group.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Ring-fencing rules made for the group ring-fencing purposes must include—</p></intro><level class="para1"><num>(a)</num><content><p>provision restricting the power of a ring-fenced body to enter into contracts with other members of its group otherwise than on arm's length terms;</p></content></level><level class="para1"><num>(b)</num><content><p>provision restricting the payments that a ring-fenced body may make (by way of dividend or otherwise) to other members of its group;</p></content></level><level class="para1"><num>(c)</num><content><p>provision requiring the disclosure to the appropriate regulator of information relating to transactions between a ring-fenced body and other members of its group;</p></content></level><level class="para1"><num>(d)</num><intro><p>provision requiring a ring-fenced body to ensure that its board of directors (or if there is no such board, the equivalent management body) includes to a specified extent—</p></intro><level class="para2"><num>(i)</num><content><p>members who are treated by the rules as being independent of other members of the ring-fenced body's group,</p></content></level><level class="para2"><num>(ii)</num><content><p>members who are treated by the rules as being independent of the ring-fenced body itself, and</p></content></level><level class="para2"><num>(iii)</num><content><p>non-executive members;</p></content></level></level><level class="para1"><num>(e)</num><content><p>provision requiring a ring-fenced body to act in accordance with a remuneration policy meeting specified requirements;</p></content></level><level class="para1"><num>(f)</num><content><p>provision requiring a ring-fenced body to act in accordance with a human resources policy meeting specified requirements;</p></content></level><level class="para1"><num>(g)</num><content><p>provision requiring arrangements made by the ring-fenced body for the identification, monitoring and management of risk to meet specified requirements;</p></content></level><level class="para1"><num>(h)</num><content><p>such other provision as the appropriate regulator considers necessary or expedient for any of the purposes in subsection (4).</p></content></level></subsection><subsection><num>(6)</num><content><p>The reference in subsection (5)(e) to a remuneration policy is a reference to a policy about the remuneration of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(7)</num><content><p>The reference in subsection (5)(f) to a human resources policy is a reference to a policy about the appointment and management of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other authorised person, the FCA;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-shares">shares</term>” has the meaning given in section 422;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified">specified</term>” means specified in the rules;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-voting-power">voting power</term>” has the meaning given in section 422.</p></content></hcontainer></subsection></section><section><num>142I</num><heading>Powers of Treasury in relation to ring-fencing rules</heading><subsection><num>(1)</num><intro><p>The Treasury may by order require the appropriate regulator, as defined in section 142H(8), to include (or not to include) in ring-fencing rules specified provision relating to—</p></intro><level class="para1"><num>(a)</num><content><p>any of the matters mentioned in section 142H(5)(a) to (g), or</p></content></level><level class="para1"><num>(b)</num><content><p>any other specified matter.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The power to make an order under this section is exercisable only if the Treasury consider it necessary or expedient to do so—</p></intro><level class="para1"><num>(a)</num><content><p>for any of the group ring-fencing purposes as defined in section 142H(4), or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise for securing the independence of ring-fenced bodies from other members of their groups.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section><section><num>142J</num><heading>Review of ring-fencing rules <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>The PRA must carry out reviews of its ring-fencing rules and of any rules made by it under section 192JA (rules applying to parent undertakings of ring-fenced bodies).</p></content></subsection><subsection><num>(2)</num><content><p>The first review must be completed before the end of the period of 5 years beginning with the day on which the first ring-fencing rules come into force.</p></content></subsection><subsection><num>(3)</num><content><p>Subsequent reviews must be completed before the end of the period of 5 years beginning with the day on which the previous review was completed.</p></content></subsection><subsection><num>(4)</num><content><p>The PRA must give the Treasury a report of each review.</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection><num>(6)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection><num>(7)</num><content><p>If (because any ring-fenced body is not a PRA-authorised person) section 142H has the effect of requiring the FCA to make ring-fencing rules, subsections (1) to (6) apply to the FCA as they apply to the PRA.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Group restructuring powers</i></heading><section><num>142K</num><heading>Cases in which group restructuring powers become exercisable</heading><subsection><num>(1)</num><content><p>The appropriate regulator may exercise the group restructuring powers only if it is satisfied that one or more of Conditions A to D is met in relation to a ring-fenced body that is a member of a group.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the carrying on of core activities by the ring-fenced body is being adversely affected by the acts or omissions of other members of its group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that in carrying on its business the ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>is unable to take decisions independently of other members of its group, or</p></content></level><level class="para1"><num>(b)</num><content><p>depends on resources which are provided by a member of its group and which would cease to be available in the event of the insolvency of the other member.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition C is that in the event of the insolvency of one or more other members of its group the ring-fenced body would be unable to continue to carry on the core activities carried on by it.</p></content></subsection><subsection><num>(5)</num><intro><p>Condition D is that the ring-fenced body or another member of its group has engaged, or is engaged, in conduct which is having, or would apart from this section be likely to have, an adverse effect on the advancement by the appropriate regulator—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the PRA, of the objective in section 2B(3)(c), or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the FCA, of the continuity objective.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The appropriate regulator may not exercise the group restructuring powers in relation to any person if—</p></intro><level class="para1"><num>(a)</num><content><p>either regulator has previously exercised the group restructuring powers in relation to that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the decision notice in relation to the current exercise is given before the second anniversary of the day on which the decision notice in relation to the previous exercise was given.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section and sections 142L to 142Q “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the ring-fenced body is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where it is not, the FCA.</p></content></level></subsection></section><section><num>142L</num><heading>Group restructuring powers</heading><subsection><num>(1)</num><content><p>In this Part “<term refersTo="#term-the-group-restructuring-powers">the group restructuring powers</term>” means one or more of the powers conferred by this section.</p></content></subsection><subsection><num>(2)</num><intro><p>Where the appropriate regulator is the PRA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to impose a requirement on the PRA-authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to direct the FCA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the appropriate regulator is the FCA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to direct the PRA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(4)</num><intro><p>A parent undertaking of a ring-fenced body by reference to which the group restructuring powers are exercisable is for the purposes of this Part a “qualifying parent undertaking” if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a body corporate which is incorporated in the United Kingdom and has a place of business in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The steps that the ring-fenced body may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of specified property or rights to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>otherwise to make arrangements discharging the ring-fenced body from specified liabilities.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The steps that another authorised person or a qualifying parent undertaking may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of any shares in, or securities of, the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to dispose of any interest in any other body corporate that is a member of the ring-fenced body's group to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>to dispose of other specified property or rights to an outside person;</p></content></level><level class="para1"><num>(d)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the authorised person or qualifying parent undertaking to an outside person.</p></content></level></subsection><subsection><num>(7)</num><content><p>In subsections (5) and (6) “<term refersTo="#term-outside-person">outside person</term>” means a person who, after the implementation of the disposal or scheme in question, will not be a member of the group of the ring-fenced body by reference to which the powers are exercised (whether or not that body is to remain a ring-fenced body after the implementation of the disposal or scheme in question).</p></content></subsection><subsection><num>(8)</num><content><p>It is immaterial whether a requirement to be imposed on an authorised person by the appropriate regulator, or by the other regulator at the direction of the appropriate regulator, is one that the regulator imposing it could impose under section 55L or 55M.</p></content></subsection></section><section><num>142M</num><heading>Procedure: preliminary notices</heading><subsection><num>(1)</num><content><p>If the appropriate regulator proposes to exercise the group restructuring powers in relation to any authorised person or qualifying parent undertaking (“<term refersTo="#term-the-person-concerned">the person concerned</term>”), the regulator must give each of the relevant persons a notice (a “preliminary notice”).</p></content></subsection><subsection><num>(2)</num><intro><p>The preliminary notice must—</p></intro><level class="para1"><num>(a)</num><content><p>state that it is a preliminary notice,</p></content></level><level class="para1"><num>(b)</num><content><p>state that the regulator proposes to exercise the group restructuring powers,</p></content></level><level class="para1"><num>(c)</num><content><p>state the action which the regulator proposes to take in the exercise of those powers,</p></content></level><level class="para1"><num>(d)</num><content><p>be in writing, and</p></content></level><level class="para1"><num>(e)</num><content><p>give reasons for the proposed action (which must include the regulator's reasons for being satisfied as to the matters mentioned in section 142K(1)).</p></content></level></subsection><subsection><num>(3)</num><content><p>The appropriate regulator must give a copy of the preliminary notice to the Treasury.</p></content></subsection><subsection><num>(4)</num><content><p>The preliminary notice must specify a reasonable period (which may not be less than 14 days) within which any of the relevant persons may make representations to the regulator.</p></content></subsection><subsection><num>(5)</num><intro><p>The relevant persons are—</p></intro><level class="para1"><num>(a)</num><content><p>the person concerned,</p></content></level><level class="para1"><num>(b)</num><content><p>the ring-fenced body, if not the person concerned, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other authorised person who will, in the opinion of the appropriate regulator, be significantly affected by the exercise of the group restructuring powers.</p></content></level></subsection></section><section><num>142N</num><heading>Procedure: warning notice and decision notice</heading><subsection><num>(1)</num><intro><p>If the appropriate regulator has given a preliminary notice under section 142M, it must either—</p></intro><level class="para1"><num>(a)</num><content><p>if, having considered any representations made by any of the relevant persons, it still proposes to exercise the group restructuring powers, give each of the relevant persons a warning notice during the warning notice period, or</p></content></level><level class="para1"><num>(b)</num><content><p>before the end of the warning notice period, give each of them a written notice stating that it has decided not to exercise the powers and give a copy of that notice to the Treasury.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The “warning notice period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning 3 months after the end of the period specified under section 142M(4) as that within which any representations must be made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending 6 months after the end of that period.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before giving a warning notice under subsection (1)(a), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>give the Treasury a draft of the notice,</p></content></level><level class="para1"><num>(b)</num><content><p>provide the Treasury with any information that the Treasury may require in order to decide whether to give their consent, and</p></content></level><level class="para1"><num>(c)</num><content><p>obtain the consent of the Treasury.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The action specified in the warning notice may be different from that specified in the preliminary notice if—</p></intro><level class="para1"><num>(a)</num><content><p>the appropriate regulator considers that different action is appropriate as a result of any change in circumstances since the preliminary notice was given, or</p></content></level><level class="para1"><num>(b)</num><content><p>the person concerned consents to the change.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulator must, in particular, have regard to anything that—</p></intro><level class="para1"><num>(a)</num><content><p>has been done by the person concerned since the giving of the preliminary notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>represents action that would have been required in pursuance of the proposals in that notice.</p></content></level></subsection><subsection><num>(6)</num><content><p>If the regulator decides to exercise the group restructuring powers it must give each of the relevant persons a decision notice.</p></content></subsection><subsection><num>(7)</num><intro><p>The decision notice must specify the date or dates by which each of the following must be completed—</p></intro><level class="para1"><num>(a)</num><content><p>any disposal of shares, securities or other property that is required by the notice;</p></content></level><level class="para1"><num>(b)</num><content><p>any transfer of liabilities for which the notice requires arrangements to be made.</p></content></level></subsection><subsection><num>(8)</num><content><p>The giving of consent for the purpose of subsection (4)(b) does not affect any right to refer to the Tribunal the matter to which any decision notice resulting from the warning notice relates.</p></content></subsection><subsection><num>(9)</num><content><p>“<term refersTo="#term-the-relevant-persons">The relevant persons</term>” has the same meaning as in section 142M.</p></content></subsection></section><section><num>142O</num><heading>References to Tribunal</heading><subsection><num>(1)</num><intro><p>A notified person who is aggrieved by—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition by either regulator of a requirement as a result of section 142L(2)(a) or (b) or (3)(a) or (b),</p></content></level><level class="para1"><num>(b)</num><content><p>a requirement to be imposed as a result of the giving by one regulator to the other of a direction under section 142L(2)(c) or (3)(c), or</p></content></level><level class="para1"><num>(c)</num><content><p>the giving by either regulator of a direction under section 142L(2)(d) or (3)(d),</p></content></level><wrapUp><p>may refer the matter to the Tribunal.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-notified-person">Notified person</term>” means a person to whom a decision notice under section 142N(6) was given or ought to have been given.</p></content></subsection></section><section><num>142P</num><heading>Subsequent variation of requirement or direction</heading><subsection><num>(1)</num><intro><p>A regulator may at any time with the consent of the person concerned vary—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The person concerned may at any time apply to the appropriate regulator for the variation of—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(3)</num><content><p>Sections 55U, 55V, 55X and 55Z3 apply to an application under subsection (2) as they apply to an application for the variation of a requirement imposed by the appropriate regulator under section 55L or 55M.</p></content></subsection></section><section><num>142Q</num><heading>Consultation <abbr title="et cetera" xml:lang="la">etc.</abbr> between regulators</heading><subsection><num>(1)</num><intro><p>Where a notice under section 142M or a warning notice or decision notice under section 142N relates to a requirement to be imposed in pursuance of a direction to be given as a result of section 142L(2)(c) or (3)(c), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator before giving the notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>give a copy of the notice to the other regulator.</p></content></level></subsection><subsection><num>(2)</num><content><p>The appropriate regulator must consult the other regulator before varying under section 142P a direction given as a result of section 142L(2)(c) or (3)(c).</p></content></subsection><subsection><num>(3)</num><content><p>Directions given by the FCA as a result of section 142L(3)(c) are subject to any directions given to the FCA under section 3I.</p></content></subsection></section><section><num>142R</num><heading>Relationship with regulators' powers under Parts 4A and 12A</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body which is a member of a mixed group, and</p></content></level><level class="para1"><num>(b)</num><content><p>a parent undertaking of such a ring-fenced body.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may not exercise its general powers in relation to the ring-fenced body or parent undertaking so as to achieve either of the results in subsection (3).</p></content></subsection><subsection><num>(3)</num><intro><p>Those results are—</p></intro><level class="para1"><num>(a)</num><content><p>that no existing group member is a parent undertaking of the ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>that the ring-fenced body is not a member of a mixed group.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(a) “<term refersTo="#term-existing-group-member">existing group member</term>” means a person who is a member of the ring-fenced body's group at the time when the requirement is imposed or the direction given.</p></content></subsection><subsection><num>(5)</num><content><p>Except as provided by subsections (1) to (4), the provisions of sections 142K to 142Q do not limit the general powers of either regulator.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section, a regulator's “general powers” are its powers under the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 55L or 55M (imposition of requirements in connection with Part 4A permission);</p></content></level><level class="para1"><num>(b)</num><content><p>section 192C (power to direct qualifying parent undertaking).</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of this section, a ring-fenced body is a member of a mixed group if a member of the ring-fenced body's group carries on an excluded activity.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Failure of parent undertaking to comply with direction</i></heading><section><num>142S</num><heading>Power to impose penalty or issue censure</heading><subsection><num>(1)</num><content><p>This section applies if a regulator is satisfied that a person who is or has been a qualifying parent undertaking (“P”) has contravened a requirement of a direction given to P by that regulator as a result of section 142L(2)(d) or (3)(d).</p></content></subsection><subsection><num>(2)</num><intro><p>The regulator may impose a penalty of such amount as it considers appropriate on—</p></intro><level class="para1"><num>(a)</num><content><p>P, or</p></content></level><level class="para1"><num>(b)</num><content><p>any person who was knowingly concerned in the contravention.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulator may, instead of imposing a penalty on a person, publish a statement censuring the person.</p></content></subsection><subsection><num>(4)</num><content><p>The regulator may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 142T.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-limitation-period">The limitation period</term>” means the period of 3 years beginning with the first day on which the regulator knew of the contravention.</p></content></subsection><subsection><num>(6)</num><content><p>For this purpose a regulator is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.</p></content></subsection><subsection><num>(7)</num><content><p>The requirements that a regulator may be required to impose as a result of a direction under section 142L(2)(c) or (3)(c) include requirements that the regulator would not but for the direction have power to impose.</p></content></subsection></section><section><num>142T</num><heading>Procedure and right to refer to Tribunal</heading><subsection><num>(1)</num><content><p>If a regulator proposes to take action against a person under section 142S, it must give the person a warning notice.</p></content></subsection><subsection><num>(2)</num><content><p>A warning notice about a proposal to impose a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(3)</num><content><p>A warning notice about a proposal to publish a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(4)</num><content><p>If the regulator decides to take action against a person under section 142S, it must give the person a decision notice.</p></content></subsection><subsection><num>(5)</num><content><p>A decision notice about the imposition of a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(6)</num><content><p>A decision notice about the publication of a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(7)</num><content><p>If the regulator decides to take action against a person under section 142S, the person may refer the matter to the Tribunal.</p></content></subsection></section><section><num>142U</num><heading>Duty on publication of statement</heading><intro><p>After a statement under section 142S(3) is published, the regulator must send a copy of the statement to—</p></intro><level class="para1"><num>(a)</num><content><p>the person in respect of whom it is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>any person to whom a copy of the decision notice was given under section 393(4).</p></content></level></section><section><num>142V</num><heading>Imposition of penalties under section 142S: statement of policy</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition of penalties under section 142S, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of penalties under that section.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A regulator's policy in determining what the amount of a penalty should be must include having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the seriousness of the contravention,</p></content></level><level class="para1"><num>(b)</num><content><p>the extent to which the contravention was deliberate or reckless, and</p></content></level><level class="para1"><num>(c)</num><content><p>whether the person on whom the penalty is to be imposed is an individual.</p></content></level></subsection><subsection><num>(3)</num><content><p>A regulator may at any time alter or replace a statement issued under this section.</p></content></subsection><subsection><num>(4)</num><content><p>If a statement issued under this section is altered or replaced, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(5)</num><content><p>In exercising, or deciding whether to exercise, a power under section 142S(2) in the case of any particular contravention, a regulator must have regard to any statement of policy published under this section and in force at a time when the contravention occurred.</p></content></subsection><subsection><num>(6)</num><content><p>A statement under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(7)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of the statement published under this section.</p></content></subsection><subsection><num>(8)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection><subsection><num>(9)</num><content><p>Section 192I applies in relation to a statement under this section as it applies in relation to a statement under section 192H.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Pension liabilities</i></heading><section><num>142W</num><heading>Pension liabilities</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations require a ring-fenced body to make arrangements for any one or more of the following purposes—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring that, except in prescribed cases, the ring-fenced body cannot become liable to meet, or contribute to the meeting of, pension liabilities which arise in connection with persons' service on or after a date specified in the regulations (“<term refersTo="#term-the-specified-date">the specified date</term>”) in any employment, other than service in an employment in respect of which the employer is a ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>ensuring that, except in prescribed cases, the default of a person other than another ring-fenced body would not result in the ring-fenced body becoming liable to meet, or contribute to the meeting of, pension liabilities arising in connection with persons' service in any employment before the specified date;</p></content></level><level class="para1"><num>(c)</num><content><p>to the extent that it is not possible to ensure the result mentioned in paragraph (a) or (b), minimising any potential liability falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The regulations may make provision enabling the trustees or managers of a relevant pension scheme in respect of which the employer or one of the employers is a ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>to transfer to another relevant pension scheme all or part of the pension liabilities arising in connection with persons' service before the specified date together with all or part of the assets of the scheme, or</p></content></level><level class="para1"><num>(b)</num><content><p>to divide the scheme into two or more sections in relation to which prescribed conditions are met.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The regulations may make provision—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a ring-fenced body to apply to the court in a case where the ring-fenced body has been unable to reach agreement with another person (“P”) about the making of arrangements with P on commercial terms for one or more of the purposes in subsection (1), and</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the court on such an application to order P to enter into arrangements with the ring-fenced body for those purposes on such terms as the court considers fair and reasonable in the circumstances.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The regulations must provide that any terms specified by the court by virtue of provision made under subsection (3)—</p></intro><level class="para1"><num>(a)</num><content><p>must be terms which, in the court's opinion, represent terms on which the arrangements might be entered into if they were being entered into for commercial reasons between willing parties dealing at arm's length, and</p></content></level><level class="para1"><num>(b)</num><content><p>may involve the payment of any sum by instalments.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulations may make other provision—</p></intro><level class="para1"><num>(a)</num><content><p>about the making by a ring-fenced body of arrangements for one or more of the purposes in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>about any transfer or division falling within subsection (2).</p></content></level></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require a ring-fenced body to cease to participate in a relevant pension scheme unless the scheme is divided into two or more sections in relation to which prescribed conditions are met;</p></content></level><level class="para1"><num>(b)</num><content><p>provide that assets or liabilities of a relevant pension scheme may not be transferred under the arrangements to another occupational pension scheme unless the other scheme meets prescribed conditions;</p></content></level><level class="para1"><num>(c)</num><content><p>require ring-fenced bodies to establish new occupational pension schemes in prescribed circumstances;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that any provision of a relevant pension scheme that might prevent the making of the arrangements, other than a provision requiring the consent of the trustees or managers of the scheme, is not to have effect in prescribed circumstances;</p></content></level><level class="para1"><num>(e)</num><content><p>make provision enabling the trustees or managers of a relevant pension scheme, with the consent of the employers in relation to the scheme, to modify the scheme by resolution for the purpose of enabling the arrangements to be made;</p></content></level><level class="para1"><num>(f)</num><content><p>require the trustees or managers of a relevant pension scheme or any employer in relation to a relevant pension scheme to give notice of prescribed matters to prescribed persons;</p></content></level><level class="para1"><num>(g)</num><content><p>make provision enabling the court, on an application made in accordance with the regulations by a ring-fenced body, if it appears to the court that the trustees or managers of a relevant pension scheme, or an employer in relation to such a scheme, have unreasonably refused their consent to any step that would enable the arrangements to be made, to order that the step may be taken without that consent;</p></content></level><level class="para1"><num>(h)</num><content><p>confer exemption from any provision of the regulations in prescribed cases;</p></content></level><level class="para1"><num>(i)</num><content><p>confer functions on the PRA;</p></content></level><level class="para1"><num>(j)</num><content><p>provide that a ring-fenced body which contravenes a prescribed requirement of the regulations is to be taken to have contravened a requirement imposed by the PRA under this Act;</p></content></level><level class="para1"><num>(k)</num><content><p>modify, exclude or apply (with or without modification) any primary or subordinate legislation.</p></content></level></subsection><subsection><num>(7)</num><intro><p>The Treasury may by regulations require an authorised person who will or may be a ring-fenced body or an authorised person who will or may be a member of a ring-fenced body's group to do all it can to obtain from the Pensions Regulator a clearance statement in relation to any arrangements to be made for the purpose of complying with—</p></intro><level class="para1"><num>(a)</num><content><p>regulations under this section, or</p></content></level><level class="para1"><num>(b)</num><content><p>any provision made by or under this Part (other than this section) when the provision comes into force.</p></content></level></subsection><subsection><num>(8)</num><intro><p>A “clearance statement” is a statement issued by the Pensions Regulator under any of the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 42 of the Pensions Act 2004 (clearance statements relating to contribution notice under section 38);</p></content></level><level class="para1"><num>(b)</num><content><p>section 46 of that Act (clearance statements relating to financial support directions);</p></content></level><level class="para1"><num>(c)</num><content><p>Article 38 of the Pensions (Northern Ireland) Order 2005 (clearance statements relating to contribution notices under article 34);</p></content></level><level class="para1"><num>(d)</num><content><p>Article 42 of that Order (clearance statements relating to financial support directions).</p></content></level></subsection><subsection><num>(9)</num><content><p>In relation to a ring-fenced body that is not a PRA-authorised person, references in subsection (6) to the PRA are to be read as references to the FCA.</p></content></subsection><subsection><num>(10)</num><content><p>Regulations under this section may not require ring-fenced bodies to achieve the results mentioned in subsection (1) before 1 January 2026, but this does not prevent the regulations requiring steps to be taken at any time after the regulations come into force.</p></content></subsection></section><section><num>142X</num><heading>Further interpretative provisions for section 142W</heading><subsection><num>(1)</num><content><p>The following provisions have effect for the interpretation of section 142W and this section.</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-relevant-pension-scheme">Relevant pension scheme</term>” means an occupational pension scheme that is not a money purchase scheme.</p></content></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-occupational-pension-scheme">Occupational pension scheme</term>” has the meaning given in section 1 of the Pension Schemes Act 1993 or section 1 of the Pension Schemes (Northern Ireland) Act 1993 and, in relation to such a scheme, “<term refersTo="#term-member">member</term>” and “<term refersTo="#term-trustees-or-managers">trustees or managers</term>” have the same meaning as in Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995.</p></content></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-money-purchase-scheme">Money purchase scheme</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(5)</num><intro><p>“<term refersTo="#term-employer">Employer</term>”, in relation to a relevant pension scheme, means—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is for the purposes of Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995 an employer in relation to the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other person who has or may have any liability under the scheme.</p></content></level></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-employment">Employment</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-pension-liabilities">Pension liabilities</term>” means liabilities attributable to or associated with the provision under a relevant pension scheme of pensions or other benefits.</p></content></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-the-court">The court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to England and Wales or Northern Ireland, the High Court, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to Scotland, the Court of Session.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Loss-absorbency requirements</i></heading><section><num>142Y</num><heading>Power of Treasury in relation to loss-absorbency requirements</heading><subsection><num>(1)</num><intro><p>The Treasury may by order make provision about the exercise by either regulator of its functions under this Act, so far as they are (apart from the order) capable of being exercised in relation to a relevant body so as to require the relevant body—</p></intro><level class="para1"><num>(a)</num><content><p>to issue any debt instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>to ensure that any part of the relevant body's debt consists of debt owed by it in respect of debt instruments, or debt instruments of a particular kind.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A “relevant body” is—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body,</p></content></level><level class="para1"><num>(b)</num><content><p>any other body corporate that has a Part 4A permission relating to the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(c)</num><content><p>a body corporate that is a member of the group of a body falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a bond,</p></content></level><level class="para1"><num>(b)</num><content><p>any other instrument creating or acknowledging a debt, or</p></content></level><level class="para1"><num>(c)</num><content><p>an instrument giving rights to acquire a debt instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require the regulator to exercise its functions so as to require relevant bodies to do either or both of the things mentioned in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>limit the extent to which the regulator may require a relevant body's debt to consist of debt owed in respect of debt instruments or of debt instruments of a kind specified in the order;</p></content></level><level class="para1"><num>(c)</num><intro><p>require the regulator—</p></intro><level class="para2"><num>(i)</num><content><p>to make, or not to make, provision by reference to specified matters, or</p></content></level><level class="para2"><num>(ii)</num><content><p>to have regard, or not to have regard, to specified matters;</p></content></level></level><level class="para1"><num>(d)</num><content><p>require the regulator to consult, or obtain the consent of, the Treasury before making rules of a specified description or exercising any other specified function;</p></content></level><level class="para1"><num>(e)</num><content><p>impose on the regulator in connection with the exercise of a specified function procedural requirements which would not otherwise apply to the exercise of the function;</p></content></level><level class="para1"><num>(f)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>General</i></heading><section><num>142Z</num><heading>Affirmative procedure in relation to certain orders under Part 9B</heading><subsection><num>(1)</num><intro><p>This section applies to an order containing provision made under any of the following provisions of this Part—</p></intro><level class="para1"><num>(a)</num><content><p>section 142A(2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>section 142B(2) or (5);</p></content></level><level class="para1"><num>(c)</num><content><p>section 142C;</p></content></level><level class="para1"><num>(d)</num><content><p>section 142D(2) or (4);</p></content></level><level class="para1"><num>(e)</num><content><p>section 142E;</p></content></level><level class="para1"><num>(f)</num><content><p>section 142I;</p></content></level><level class="para1"><num>(g)</num><content><p>section 142Y.</p></content></level></subsection><subsection><num>(2)</num><intro><p>No order to which this section applies may be made unless—</p></intro><level class="para1"><num>(a)</num><content><p>a draft of the order has been laid before Parliament and approved by a resolution of each House, or</p></content></level><level class="para1"><num>(b)</num><content><p>subsection (4) applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (4) applies if an order under 142D(4) or 142E contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.</p></content></subsection><subsection><num>(4)</num><intro><p>Where this subsection applies the order—</p></intro><level class="para1"><num>(a)</num><content><p>must be laid before Parliament after being made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).</p></content></level></subsection><subsection><num>(5)</num><content><p>The “relevant period” is a period of 28 days beginning with the day on which the order is made.</p></content></subsection><subsection><num>(6)</num><content><p>In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than 4 days.</p></content></subsection></section><section><num>142Z1</num><heading>Interpretation of Part 9B</heading><subsection><num>(1)</num><content><p>This section has effect for the interpretation of this Part.</p></content></subsection><subsection><num>(2)</num><intro><p>Any reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(b)</num><content><p>the regulated activity of dealing in investments as principal,</p></content></level><wrapUp><p>is to be read in accordance with Schedule 2, taken with any order under section 22.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>Any reference to the group restructuring powers is to be read in accordance with section 142L(1).</p></content></subsection><subsection><num>(4)</num><content><p>Any reference to a qualifying parent undertaking is to be read in accordance with section 142L(4).</p></content></subsection></section></hcontainer></part></quotedStructure></mod></p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p><mod>In section 133 of FSMA 2000 (proceedings before Tribunal), in subsection (7A), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>a decision to take action under section 142S;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p><mod>In section 391 of FSMA 2000 (publication), in subsection (1ZB), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>section 142N;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-4-4"><num>(4)</num><intro><p>In section 392 of FSMA 2000 (application of sections 393 and 394)—</p></intro><level class="para1" eId="section-4-4-a"><num>(a)</num><content><p><mod>in paragraph (a), after “131H(1),” insert <quotedText>“
142T(1),
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-4-4-b"><num>(b)</num><content><p><mod>in paragraph (b), after “131H(4),” insert <quotedText>“
142T(4),
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-4-5"><num>(5)</num><intro><p>In section 417 of FSMA 2000 (definitions), in subsection (1)—</p></intro><level class="para1" eId="section-4-5-a"><num>(a)</num><content><p><mod>after the definition of “control of information rules” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-core-activities">core activities</term>” has the meaning given in section 142B;</p><p>“<term refersTo="#term-core-services">core services</term>” has the meaning given in section 142C;</p></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-4-5-b"><num>(b)</num><content><p><mod>after the definition of “ESMA” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-excluded-activities">excluded activities</term>” has the meaning given in section 142D;</p></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-4-5-c"><num>(c)</num><content><p><mod>after the definition of “regulator” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” has the meaning given in section 142A;</p><p>“<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>” has the meaning given in section 142H;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-4-6"><num>(6)</num><content><p><mod>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)(c)(i), after “138N,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection><subsection eId="section-4-7"><num>(7)</num><content><p><mod>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), in paragraph 16(3)(c)(i), after “69,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection></section><section eId="section-5"><num>5</num><heading>PRA annual report</heading><subsection eId="section-5-1"><num>(1)</num><content><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), paragraph 19 (annual report) is amended as follows.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p><mod>After sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In the report the PRA must also report in general terms on—</p></intro><level class="para1"><num>(a)</num><content><p>the extent to which, in its opinion, ring-fenced bodies have complied with the ring-fencing provisions,</p></content></level><level class="para1"><num>(b)</num><content><p>steps taken by ring-fenced bodies in order to comply with the ring-fencing provisions,</p></content></level><level class="para1"><num>(c)</num><content><p>steps taken by it to enforce the ring-fencing provisions,</p></content></level><level class="para1"><num>(d)</num><content><p>the extent to which ring-fenced bodies are carrying on the regulated activity of dealing in investments as principal (whether in the United Kingdom or elsewhere) in circumstances where as a result of an order under section 142D(2) that activity is not an excluded activity,</p></content></level><level class="para1"><num>(e)</num><content><p>the extent to which ring-fenced bodies are carrying on activities that would be excluded activities by virtue of an order under section 142D(4) but for an exemption or exclusion made by such an order,</p></content></level><level class="para1"><num>(f)</num><content><p>the extent to which ring-fenced bodies are doing things that they would be prohibited from doing by an order under section 142E but for an exemption made by such an order, and</p></content></level><level class="para1"><num>(g)</num><content><p>the extent to which ring-fenced bodies appear to it to have acted in accordance with any guidance which it has given to ring-fenced bodies and which relates to the operation of the ring-fencing provisions.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>In sub-paragraph (1A)—</p></intro><level class="para1"><num>(a)</num><content><p>references to “ring-fenced bodies” relate only to ring-fenced bodies that are PRA-authorised persons, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p><mod>In sub-paragraph (2), for “Sub-paragraph (1) does not” substitute <quotedText>“
Sub-paragraphs (1) and (1A) do not
”</quotedText>.</mod></p></content></subsection></section><section eId="section-6"><num>6</num><heading>Ring-fencing transfer schemes</heading><content><p>Schedule 1 (which contains amendments of Part 7 of FSMA 2000 relating to ring-fencing transfer schemes) has effect.</p></content></section><section eId="section-7"><num>7</num><heading>Building societies: power to make provision about ring-fencing</heading><subsection eId="section-7-1"><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><content><p>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).</p></content></level></subsection><subsection eId="section-7-2"><num>(2)</num><intro><p>The regulations may, in particular—</p></intro><level class="para1" eId="section-7-2-a"><num>(a)</num><content><p>amend the Building Societies Act 1986;</p></content></level><level class="para1" eId="section-7-2-b"><num>(b)</num><content><p>apply any of the provisions contained in, or made under, Part 9B of FSMA 2000, with such modifications as the Treasury consider appropriate;</p></content></level><level class="para1" eId="section-7-2-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-7-2-d"><num>(d)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-7-2-e"><num>(e)</num><content><p>make such consequential provision including amendments of any enactment as the Treasury consider appropriate.</p></content></level></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-7-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in the Building Societies Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-continuity-provision" eId="term-the-relevant-continuity-provision">the relevant continuity provision</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of functions exercisable by the PRA, section 2B(3)(c) and (4A) of that Act.</p></content></level></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-reviews"><heading><i>Reviews</i></heading><section eId="section-8"><num>8</num><heading>Independent review of operation of legislation relating to ring-fencing</heading><subsection eId="section-8-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-8-2"><num>(2)</num><intro><p>“<term refersTo="#term-the-legislation-relating-to-ring-fencing" eId="term-the-legislation-relating-to-ring-fencing">The legislation relating to ring-fencing</term>” means—</p></intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content><p>Part 9B of FSMA 2000 (as inserted by section 4);</p></content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content><p>orders and regulations made by the Treasury under that Part;</p></content></level><level class="para1" eId="section-8-2-c"><num>(c)</num><content><p>ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;</p></content></level><level class="para1" eId="section-8-2-d"><num>(d)</num><content><p>section 192JA of FSMA 2000 (as inserted by section 133);</p></content></level><level class="para1" eId="section-8-2-e"><num>(e)</num><content><p>rules made by the FCA or the PRA under that section.</p></content></level></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-8-4-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level></subsection><level class="para1" eId="section-8-b"><num>(b)</num><content><p>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.</p></content></level><subsection eId="section-8-5"><num>(5)</num><intro><p>In appointing the members of the review panel, the Treasury—</p></intro><level class="para1" eId="section-8-5-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-8-5-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-8-6"><num>(6)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection><subsection eId="section-8-7"><num>(7)</num><intro><p>The reference in subsection (6) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-8-7-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-8-7-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection><subsection eId="section-8-8"><num>(8)</num><content><p>The Treasury must appoint one of the members of the review panel to be the chair of the panel.</p></content></subsection><subsection eId="section-8-9"><num>(9)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-8-9-a"><num>(a)</num><content><p>setting out the results of the review, and</p></content></level><level class="para1" eId="section-8-9-b"><num>(b)</num><content><p>making such recommendations (if any) as the panel considers appropriate.</p></content></level></subsection><subsection eId="section-8-10"><num>(10)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-8-10-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-8-10-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection><subsection eId="section-8-11"><num>(11)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection></section><section eId="section-9"><num>9</num><heading>PRA review of proprietary trading</heading><subsection eId="section-9-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-9-3"><num>(3)</num><intro><p>On completion of the review, the PRA must make a written report to the Treasury on—</p></intro><level class="para1" eId="section-9-3-a"><num>(a)</num><content><p>the extent to which relevant authorised persons engage in proprietary trading;</p></content></level><level class="para1" eId="section-9-3-b"><num>(b)</num><content><p>whether proprietary trading engaged in by relevant authorised persons gives rise to any risks to their safety and soundness;</p></content></level><level class="para1" eId="section-9-3-c"><num>(c)</num><content><p>whether any kinds of proprietary trading are particularly likely to give rise to such risks;</p></content></level><level class="para1" eId="section-9-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-3-e"><num>(e)</num><content><p>any difficulties encountered by the PRA in seeking to minimise such risks.</p></content></level></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>The report must include an assessment by the PRA of each of the following—</p></content></subsection><level class="para1" eId="section-9-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-b"><num>(b)</num><content><p>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).</p></content></level><subsection eId="section-9-5"><num>(5)</num><content><p>The report must be made within 9 months of the beginning of the review.</p></content></subsection><subsection eId="section-9-6"><num>(6)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection eId="section-9-7"><num>(7)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>The functions of the PRA under this section are to be taken for the purposes of FSMA 2000 to be functions under that Act.</p></content></subsection><subsection eId="section-9-9"><num>(9)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection></section><section eId="section-10"><num>10</num><heading>Independent review of proprietary trading</heading><subsection eId="section-10-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-10-3"><num>(3)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-10-3-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level><level class="para1" eId="section-10-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-10-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-10-5"><num>(5)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection><subsection eId="section-10-6"><num>(6)</num><intro><p>The reference in subsection (5) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-10-6-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-10-6-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection><subsection eId="section-10-7"><num>(7)</num><content><p>If the review panel consists of two or more members, the Treasury must appoint one of them to be the chair of the panel.</p></content></subsection><subsection eId="section-10-8"><num>(8)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-10-8-a"><num>(a)</num><content><p>stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,</p></content></level><level class="para1" eId="section-10-8-b"><num>(b)</num><content><p>stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and</p></content></level><level class="para1" eId="section-10-8-c"><num>(c)</num><content><p>making such other recommendations as the panel thinks fit.</p></content></level></subsection><subsection eId="section-10-9"><num>(9)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-10-9-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-10-9-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection><subsection eId="section-10-10"><num>(10)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection><subsection eId="section-10-11"><num>(11)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Reviews of proprietary trading: interpretation</heading><subsection eId="section-11-1"><num>(1)</num><content><p>This section has effect for the interpretation of sections 9 and 10.</p></content></subsection><subsection eId="section-11-2"><num>(2)</num><content><p>A person engages in “proprietary trading” where the person trades in commodities or financial instruments as principal.</p></content></subsection><subsection eId="section-11-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-11-3-a"><num>(a)</num><content><p>“<term refersTo="#term-commodity" eId="term-commodity">commodity</term>” 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;</p></content></level><level class="para1" eId="section-11-3-b"><num>(b)</num><content><p>“<term refersTo="#term-financial-instrument" eId="term-financial-instrument">financial instrument</term>” includes anything specified in Section C of Annex I to <ins class="first last" ukl:ChangeId="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2-1507033782715" ukl:CommentaryRef="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2"><noteRef uk:name="commentary" href="#M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2" class="commentary"/>Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments.</p></content></level></subsection><subsection eId="section-11-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-authorised-person" eId="term-relevant-authorised-person">Relevant authorised person</term>” means a PRA-authorised person which—</p></intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-11-4-c"><num>(c)</num><content><p>is not an insurer.</p></content></level></subsection><subsection eId="section-11-5"><num>(5)</num><content><p>Condition A is that the <abbr class="acronym" title="United Kingdom">UK</abbr> institution has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection eId="section-11-6"><num>(6)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-11-6-a"><num>(a)</num><content><p>the institution is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-11-6-b"><num>(b)</num><content><p>it has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-11-6-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection eId="section-11-7"><num>(7)</num><intro><p>In subsections (4) to (6)—</p></intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-11-7-c"><num>(c)</num><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” and “<term refersTo="#term-pra-regulated-activity" eId="term-pra-regulated-activity">PRA-regulated activity</term>” have the same meaning as in FSMA 2000.</p></content></level></subsection><subsection eId="section-11-8"><num>(8)</num><content><p>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.</p></content></subsection></section><section eId="section-12"><num>12</num><heading>Right to obtain documents and information</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>A review panel appointed under section 8 or 10—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p>may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.</p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>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.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-ringfencing"><heading><i>Ring-fencing</i></heading><section eId="section-1"><num>1</num><heading>Objectives of Prudential Regulation Authority</heading><subsection eId="section-1-1"><num>(1)</num><content><p>Section 2B of FSMA 2000 (the PRA's general objective) is amended as follows.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “and”, and</p></content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>discharging its general functions in relation to the matters mentioned in subsection (4A) in a way that seeks to—</p></intro><level class="para2"><num>(i)</num><content><p>ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para2"><num>(ii)</num><content><p>ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para2"><num>(iii)</num><content><p>minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could affect the continuity of the provision in the United Kingdom of core services.</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-1-3"><num>(3)</num><content><p><mod>In subsection (4), for “subsection (3)” substitute <quotedText>“
subsection (3)(a) and (b)
”</quotedText>.</mod></p></content></subsection><subsection eId="section-1-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The matters referred to in subsection (3)(c) are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-1-5"><num>(5)</num><intro><p>In section 2J of FSMA 2000 (interpretation of Chapter 2 of Part 1)—</p></intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content><p><mod>in subsection (3), for “a PRA-authorised” substitute <quotedText>“
an authorised
”</quotedText>,</mod></p></content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>For the purposes of this Chapter, the cases in which a person (“P”) other than an authorised person is to be regarded as failing include any case where P enters insolvency.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), for “subsection (3)(a)” substitute <quotedText>“
subsections (3)(a) and (3A)
”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-2"><num>2</num><heading>Modification of objectives of Financial Conduct Authority</heading><content><p><mod>After section 1I of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Modifications applying if core activity not regulated by </i>PRA</heading><section><num>1IA</num><heading>Modifications applying if core activity not regulated by PRA</heading><subsection><num>(1)</num><content><p>If and so long as any regulated activity is a core activity (see section 142B) without also being a PRA-regulated activity (see section 22A), the provisions of this Chapter are to have effect subject to the following modifications.</p></content></subsection><subsection><num>(2)</num><intro><p>Section 1B is to have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsection (3), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>in relation to the matters mentioned in section 1EA(2), the continuity objective (see section 1EA).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (4), for “or the integrity objective,” there were substituted <quotedText>“
, the integrity objective or (in relation to the matters mentioned in section 1EA(2)) the continuity objective,
”</quotedText>.</mod></p></content></level></subsection><subsection><num>(3)</num><content><p><mod>After section 1E there is to be taken to be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1EA</num><heading>Continuity objective</heading><subsection><num>(1)</num><content><p>In relation to the matters mentioned in subsection (2), the continuity objective is: protecting the continuity of the provision in the United Kingdom of core services (see section 142C).</p></content></subsection><subsection><num>(2)</num><intro><p>Those matters are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The FCA's continuity objective is to be advanced primarily by—</p></intro><level class="para1"><num>(a)</num><content><p>seeking to ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para1"><num>(b)</num><content><p>seeking to ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para1"><num>(c)</num><content><p>seeking to minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could adversely affect the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(c), “<term refersTo="#term-failure">failure</term>” is to be read in accordance with section 2J(3) to (4).</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></section><section eId="section-3"><num>3</num><heading>Amendment of PRA power of direction</heading><intro><p>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (4)—</p></intro><level class="para1" eId="section-3-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “or”, and</p></content></level><level class="para1" eId="section-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b), insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></level></section><section eId="section-4"><num>4</num><heading>Ring-fencing of certain activities</heading><subsection eId="section-4-1"><num>(1)</num><content><p><mod>After Part 9A of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><part><num><b>PART 9B</b></num><heading>Ring-fencing</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Introductory</i></heading><section><num>142A</num><heading>“Ring-fenced body”</heading><subsection><num>(1)</num><content><p>In this Act “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which carries on one or more core activities (see section 142B) in relation to which it has a Part 4A permission.</p></content></subsection><subsection><num>(2)</num><intro><p>But “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” does not include—</p></intro><level class="para1"><num>(a)</num><content><p>a building society within the meaning of the Building Societies Act 1986, or</p></content></level><level class="para1"><num>(b)</num><content><p>a <abbr class="acronym" title="United Kingdom">UK</abbr> institution of a class exempted by order made by the Treasury.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under subsection (2)(b) may be made in relation to a class of <abbr class="acronym" title="United Kingdom">UK</abbr> institution only if the Treasury are of the opinion that the exemption conferred by the order would not be likely to have a significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>Subject to that, in deciding whether and, if so, how to exercise their powers under subsection (2)(b), the Treasury must have regard to the desirability of minimising any adverse effect that the ring-fencing provisions might be expected to have on competition in the market for services provided in the course of carrying on core activities, including any adverse effect on the ease with which new entrants can enter the market.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4) “<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection><subsection><num>(6)</num><content><p>An order under subsection (2)(b) may provide for the exemption to be subject to conditions.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means a body corporate incorporated in the United Kingdom.</p></content></subsection></section><section><num>142B</num><heading>Core activities</heading><subsection><num>(1)</num><content><p>References in this Act to a “core activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of accepting deposits (whether carried on in the United Kingdom or elsewhere) is a core activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that it is not necessary for either of the following purposes that the regulated activity of accepting deposits should be a core activity when carried on in the specified circumstances.</p></content></subsection><subsection><num>(4)</num><intro><p>Those purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>to secure an appropriate degree of protection for the depositors concerned, or</p></content></level><level class="para1"><num>(b)</num><content><p>to protect the continuity of the provision in the United Kingdom of services provided in the course of carrying on the regulated activity of accepting deposits.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury may by order provide for a regulated activity other than that of accepting deposits to be a core activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(6)</num><intro><p>An order under subsection (5) may be made only if the Treasury are of the opinion—</p></intro><level class="para1"><num>(a)</num><content><p>that an interruption of the provision of services provided in the United Kingdom in the carrying on of the regulated activity concerned could adversely affect the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system or of a significant part of that system, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the continuity of the provision of those services can more effectively be protected by treating the activity as a core activity.</p></content></level></subsection></section><section><num>142C</num><heading>Core services</heading><subsection><num>(1)</num><content><p>References in this Act to “core services” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><intro><p>The following are core services—</p></intro><level class="para1"><num>(a)</num><content><p>facilities for the accepting of deposits or other payments into an account which is provided in the course of carrying on the core activity of accepting deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>facilities for withdrawing money or making payments from such an account;</p></content></level><level class="para1"><num>(c)</num><content><p>overdraft facilities in connection with such an account.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Treasury may by order provide that any other specified services provided in the course of carrying on the core activity of accepting deposits are also core services.</p></content></subsection><subsection><num>(4)</num><content><p>If an order under section 142B(5) provides for an activity other than that of accepting deposits to be a core activity, the Treasury must by order provide that specified services provided in the course of carrying on that activity are core services.</p></content></subsection><subsection><num>(5)</num><content><p>The services specified by order under subsection (4) must be services in relation to which the Treasury are of the opinion mentioned in section 142B(6)(a).</p></content></subsection></section><section><num>142D</num><heading>Excluded activities</heading><subsection><num>(1)</num><content><p>References in this Act to an “excluded activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of dealing in investments as principal (whether carried on in the United Kingdom or elsewhere) is an excluded activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that allowing ring-fenced bodies to deal in investments as principal in the specified circumstances would not be likely to result in any significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>The Treasury may by order provide for an activity other than the regulated activity of dealing in investments as principal to be an excluded activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(5)</num><intro><p>An activity to which an order under subsection (4) relates—</p></intro><level class="para1"><num>(a)</num><content><p>need not be a regulated activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>may be an activity carried on in the United Kingdom or elsewhere.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In deciding whether to make an order under subsection (4) in relation to any activity, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it carried on the activity concerned, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the carrying on of that activity by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(7)</num><content><p>An order under subsection (4) may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection></section><section><num>142E</num><heading>Power of Treasury to impose prohibitions</heading><subsection><num>(1)</num><intro><p>The Treasury may by order prohibit ring-fenced bodies from—</p></intro><level class="para1"><num>(a)</num><content><p>entering into transactions of a specified kind or with persons falling within a specified class;</p></content></level><level class="para1"><num>(b)</num><content><p>establishing or maintaining a branch in a specified country or territory;</p></content></level><level class="para1"><num>(c)</num><content><p>holding in specified circumstances shares or voting power in companies of a specified description.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In deciding whether to make an order under this section imposing a prohibition, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it did the thing to which the prohibition relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the doing of that thing by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under this section may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any prohibition to be subject to exemptions specified in the order;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for any exemption to be subject to conditions specified in the order.</p></content></level></subsection></section><section><num>142F</num><heading>Orders under section 142A, 142B, 142D or 142E</heading><subsection><num>(1)</num><intro><p>An order made under section 142A, 142B, 142D or 142E may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise or require the making of rules by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(b)</num><content><p>authorise the making of other instruments by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(c)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If the order confers powers on a regulator or authorises or requires the making of rules or other instruments by a regulator, the order may also—</p></intro><level class="para1"><num>(a)</num><content><p>impose conditions on the exercise of any power conferred on the regulator;</p></content></level><level class="para1"><num>(b)</num><content><p>impose consultation requirements on the regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>make the exercise of a power by the regulator subject to the consent of the Treasury.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</i></heading><section><num>142G</num><heading>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</heading><subsection><num>(1)</num><intro><p>A ring-fenced body which—</p></intro><level class="para1"><num>(a)</num><content><p>carries on an excluded activity or purports to do so, or</p></content></level><level class="para1"><num>(b)</num><content><p>contravenes any provision of an order under section 142E,</p></content></level><wrapUp><p>is to be taken to have contravened a requirement imposed on the body by the appropriate regulator under this Act.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>The contravention does not—</p></intro><level class="para1"><num>(a)</num><content><p>make a person guilty of an offence;</p></content></level><level class="para1"><num>(b)</num><content><p>make a transaction void or unenforceable;</p></content></level><level class="para1"><num>(c)</num><content><p>(subject to subsection (3)) give rise to any right of action for breach of statutory duty.</p></content></level></subsection><subsection><num>(3)</num><content><p>In such cases as the Treasury may specify by order, the contravention is actionable at the suit of a person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a ring-fenced body which is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other ring-fenced body, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fencing rules</i></heading><section><num>142H</num><heading>Ring-fencing rules</heading><subsection><num>(1)</num><intro><p>In the exercise of its power to make general rules, the appropriate regulator must in particular make rules—</p></intro><level class="para1"><num>(a)</num><content><p>requiring a ring-fenced body to make arrangements to ensure the effective provision to the ring-fenced body of services and facilities that it requires in relation to the carrying on of a core activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>making provision for the group ring-fencing purposes applying to ring-fenced bodies and to authorised persons who are members of a ring-fenced body's group.</p></content></level></subsection><subsection><num>(2)</num><content><p>Section 142E(1)(c) does not affect the power of the appropriate regulator to make general rules imposing restrictions on the extent of the shares or voting power that a ring-fenced body may hold in another company, except where a restriction on the extent of the shares or voting power that the ring-fenced body may hold in the company is imposed by order under section 142E(1)(c).</p></content></subsection><subsection><num>(3)</num><content><p>General rules that are required by this section or make provision falling within subsection (2) are in this Act referred to as “<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>”.</p></content></subsection><subsection><num>(4)</num><intro><p>The “group ring-fencing purposes” are—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring as far as reasonably practicable that the carrying on of core activities by a ring-fenced body is not adversely affected by the acts or omissions of other members of its group;</p></content></level><level class="para1"><num>(b)</num><intro><p>ensuring as far as reasonably practicable that in carrying on its business a ring-fenced body—</p></intro><level class="para2"><num>(i)</num><content><p>is able to take decisions independently of other members of its group, and</p></content></level><level class="para2"><num>(ii)</num><content><p>does not depend on resources which are provided by a member of its group and which would cease to be available to the ring-fenced body in the event of the insolvency of the other member;</p></content></level></level><level class="para1"><num>(c)</num><content><p>ensuring as far as reasonably practicable that the ring-fenced body would be able to continue to carry on core activities in the event of the insolvency of one or more other members of its group.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Ring-fencing rules made for the group ring-fencing purposes must include—</p></intro><level class="para1"><num>(a)</num><content><p>provision restricting the power of a ring-fenced body to enter into contracts with other members of its group otherwise than on arm's length terms;</p></content></level><level class="para1"><num>(b)</num><content><p>provision restricting the payments that a ring-fenced body may make (by way of dividend or otherwise) to other members of its group;</p></content></level><level class="para1"><num>(c)</num><content><p>provision requiring the disclosure to the appropriate regulator of information relating to transactions between a ring-fenced body and other members of its group;</p></content></level><level class="para1"><num>(d)</num><intro><p>provision requiring a ring-fenced body to ensure that its board of directors (or if there is no such board, the equivalent management body) includes to a specified extent—</p></intro><level class="para2"><num>(i)</num><content><p>members who are treated by the rules as being independent of other members of the ring-fenced body's group,</p></content></level><level class="para2"><num>(ii)</num><content><p>members who are treated by the rules as being independent of the ring-fenced body itself, and</p></content></level><level class="para2"><num>(iii)</num><content><p>non-executive members;</p></content></level></level><level class="para1"><num>(e)</num><content><p>provision requiring a ring-fenced body to act in accordance with a remuneration policy meeting specified requirements;</p></content></level><level class="para1"><num>(f)</num><content><p>provision requiring a ring-fenced body to act in accordance with a human resources policy meeting specified requirements;</p></content></level><level class="para1"><num>(g)</num><content><p>provision requiring arrangements made by the ring-fenced body for the identification, monitoring and management of risk to meet specified requirements;</p></content></level><level class="para1"><num>(h)</num><content><p>such other provision as the appropriate regulator considers necessary or expedient for any of the purposes in subsection (4).</p></content></level></subsection><subsection><num>(6)</num><content><p>The reference in subsection (5)(e) to a remuneration policy is a reference to a policy about the remuneration of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(7)</num><content><p>The reference in subsection (5)(f) to a human resources policy is a reference to a policy about the appointment and management of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other authorised person, the FCA;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-shares">shares</term>” has the meaning given in section 422;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified">specified</term>” means specified in the rules;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-voting-power">voting power</term>” has the meaning given in section 422.</p></content></hcontainer></subsection></section><section><num>142I</num><heading>Powers of Treasury in relation to ring-fencing rules</heading><subsection><num>(1)</num><intro><p>The Treasury may by order require the appropriate regulator, as defined in section 142H(8), to include (or not to include) in ring-fencing rules specified provision relating to—</p></intro><level class="para1"><num>(a)</num><content><p>any of the matters mentioned in section 142H(5)(a) to (g), or</p></content></level><level class="para1"><num>(b)</num><content><p>any other specified matter.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The power to make an order under this section is exercisable only if the Treasury consider it necessary or expedient to do so—</p></intro><level class="para1"><num>(a)</num><content><p>for any of the group ring-fencing purposes as defined in section 142H(4), or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise for securing the independence of ring-fenced bodies from other members of their groups.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section><section><num>142J</num><heading>Review of ring-fencing rules <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>The PRA must carry out reviews of its ring-fencing rules and of any rules made by it under section 192JA (rules applying to parent undertakings of ring-fenced bodies).</p></content></subsection><subsection><num>(2)</num><content><p>The first review must be completed before the end of the period of 5 years beginning with the day on which the first ring-fencing rules come into force.</p></content></subsection><subsection><num>(3)</num><content><p>Subsequent reviews must be completed before the end of the period of 5 years beginning with the day on which the previous review was completed.</p></content></subsection><subsection><num>(4)</num><content><p>The PRA must give the Treasury a report of each review.</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection><num>(6)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection><num>(7)</num><content><p>If (because any ring-fenced body is not a PRA-authorised person) section 142H has the effect of requiring the FCA to make ring-fencing rules, subsections (1) to (6) apply to the FCA as they apply to the PRA.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Group restructuring powers</i></heading><section><num>142K</num><heading>Cases in which group restructuring powers become exercisable</heading><subsection><num>(1)</num><content><p>The appropriate regulator may exercise the group restructuring powers only if it is satisfied that one or more of Conditions A to D is met in relation to a ring-fenced body that is a member of a group.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the carrying on of core activities by the ring-fenced body is being adversely affected by the acts or omissions of other members of its group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that in carrying on its business the ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>is unable to take decisions independently of other members of its group, or</p></content></level><level class="para1"><num>(b)</num><content><p>depends on resources which are provided by a member of its group and which would cease to be available in the event of the insolvency of the other member.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition C is that in the event of the insolvency of one or more other members of its group the ring-fenced body would be unable to continue to carry on the core activities carried on by it.</p></content></subsection><subsection><num>(5)</num><intro><p>Condition D is that the ring-fenced body or another member of its group has engaged, or is engaged, in conduct which is having, or would apart from this section be likely to have, an adverse effect on the advancement by the appropriate regulator—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the PRA, of the objective in section 2B(3)(c), or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the FCA, of the continuity objective.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The appropriate regulator may not exercise the group restructuring powers in relation to any person if—</p></intro><level class="para1"><num>(a)</num><content><p>either regulator has previously exercised the group restructuring powers in relation to that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the decision notice in relation to the current exercise is given before the second anniversary of the day on which the decision notice in relation to the previous exercise was given.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section and sections 142L to 142Q “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the ring-fenced body is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where it is not, the FCA.</p></content></level></subsection></section><section><num>142L</num><heading>Group restructuring powers</heading><subsection><num>(1)</num><content><p>In this Part “<term refersTo="#term-the-group-restructuring-powers">the group restructuring powers</term>” means one or more of the powers conferred by this section.</p></content></subsection><subsection><num>(2)</num><intro><p>Where the appropriate regulator is the PRA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to impose a requirement on the PRA-authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to direct the FCA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the appropriate regulator is the FCA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to direct the PRA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(4)</num><intro><p>A parent undertaking of a ring-fenced body by reference to which the group restructuring powers are exercisable is for the purposes of this Part a “qualifying parent undertaking” if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a body corporate which is incorporated in the United Kingdom and has a place of business in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The steps that the ring-fenced body may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of specified property or rights to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>otherwise to make arrangements discharging the ring-fenced body from specified liabilities.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The steps that another authorised person or a qualifying parent undertaking may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of any shares in, or securities of, the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to dispose of any interest in any other body corporate that is a member of the ring-fenced body's group to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>to dispose of other specified property or rights to an outside person;</p></content></level><level class="para1"><num>(d)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the authorised person or qualifying parent undertaking to an outside person.</p></content></level></subsection><subsection><num>(7)</num><content><p>In subsections (5) and (6) “<term refersTo="#term-outside-person">outside person</term>” means a person who, after the implementation of the disposal or scheme in question, will not be a member of the group of the ring-fenced body by reference to which the powers are exercised (whether or not that body is to remain a ring-fenced body after the implementation of the disposal or scheme in question).</p></content></subsection><subsection><num>(8)</num><content><p>It is immaterial whether a requirement to be imposed on an authorised person by the appropriate regulator, or by the other regulator at the direction of the appropriate regulator, is one that the regulator imposing it could impose under section 55L or 55M.</p></content></subsection></section><section><num>142M</num><heading>Procedure: preliminary notices</heading><subsection><num>(1)</num><content><p>If the appropriate regulator proposes to exercise the group restructuring powers in relation to any authorised person or qualifying parent undertaking (“<term refersTo="#term-the-person-concerned">the person concerned</term>”), the regulator must give each of the relevant persons a notice (a “preliminary notice”).</p></content></subsection><subsection><num>(2)</num><intro><p>The preliminary notice must—</p></intro><level class="para1"><num>(a)</num><content><p>state that it is a preliminary notice,</p></content></level><level class="para1"><num>(b)</num><content><p>state that the regulator proposes to exercise the group restructuring powers,</p></content></level><level class="para1"><num>(c)</num><content><p>state the action which the regulator proposes to take in the exercise of those powers,</p></content></level><level class="para1"><num>(d)</num><content><p>be in writing, and</p></content></level><level class="para1"><num>(e)</num><content><p>give reasons for the proposed action (which must include the regulator's reasons for being satisfied as to the matters mentioned in section 142K(1)).</p></content></level></subsection><subsection><num>(3)</num><content><p>The appropriate regulator must give a copy of the preliminary notice to the Treasury.</p></content></subsection><subsection><num>(4)</num><content><p>The preliminary notice must specify a reasonable period (which may not be less than 14 days) within which any of the relevant persons may make representations to the regulator.</p></content></subsection><subsection><num>(5)</num><intro><p>The relevant persons are—</p></intro><level class="para1"><num>(a)</num><content><p>the person concerned,</p></content></level><level class="para1"><num>(b)</num><content><p>the ring-fenced body, if not the person concerned, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other authorised person who will, in the opinion of the appropriate regulator, be significantly affected by the exercise of the group restructuring powers.</p></content></level></subsection></section><section><num>142N</num><heading>Procedure: warning notice and decision notice</heading><subsection><num>(1)</num><intro><p>If the appropriate regulator has given a preliminary notice under section 142M, it must either—</p></intro><level class="para1"><num>(a)</num><content><p>if, having considered any representations made by any of the relevant persons, it still proposes to exercise the group restructuring powers, give each of the relevant persons a warning notice during the warning notice period, or</p></content></level><level class="para1"><num>(b)</num><content><p>before the end of the warning notice period, give each of them a written notice stating that it has decided not to exercise the powers and give a copy of that notice to the Treasury.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The “warning notice period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning 3 months after the end of the period specified under section 142M(4) as that within which any representations must be made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending 6 months after the end of that period.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before giving a warning notice under subsection (1)(a), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>give the Treasury a draft of the notice,</p></content></level><level class="para1"><num>(b)</num><content><p>provide the Treasury with any information that the Treasury may require in order to decide whether to give their consent, and</p></content></level><level class="para1"><num>(c)</num><content><p>obtain the consent of the Treasury.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The action specified in the warning notice may be different from that specified in the preliminary notice if—</p></intro><level class="para1"><num>(a)</num><content><p>the appropriate regulator considers that different action is appropriate as a result of any change in circumstances since the preliminary notice was given, or</p></content></level><level class="para1"><num>(b)</num><content><p>the person concerned consents to the change.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulator must, in particular, have regard to anything that—</p></intro><level class="para1"><num>(a)</num><content><p>has been done by the person concerned since the giving of the preliminary notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>represents action that would have been required in pursuance of the proposals in that notice.</p></content></level></subsection><subsection><num>(6)</num><content><p>If the regulator decides to exercise the group restructuring powers it must give each of the relevant persons a decision notice.</p></content></subsection><subsection><num>(7)</num><intro><p>The decision notice must specify the date or dates by which each of the following must be completed—</p></intro><level class="para1"><num>(a)</num><content><p>any disposal of shares, securities or other property that is required by the notice;</p></content></level><level class="para1"><num>(b)</num><content><p>any transfer of liabilities for which the notice requires arrangements to be made.</p></content></level></subsection><subsection><num>(8)</num><content><p>The giving of consent for the purpose of subsection (4)(b) does not affect any right to refer to the Tribunal the matter to which any decision notice resulting from the warning notice relates.</p></content></subsection><subsection><num>(9)</num><content><p>“<term refersTo="#term-the-relevant-persons">The relevant persons</term>” has the same meaning as in section 142M.</p></content></subsection></section><section><num>142O</num><heading>References to Tribunal</heading><subsection><num>(1)</num><intro><p>A notified person who is aggrieved by—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition by either regulator of a requirement as a result of section 142L(2)(a) or (b) or (3)(a) or (b),</p></content></level><level class="para1"><num>(b)</num><content><p>a requirement to be imposed as a result of the giving by one regulator to the other of a direction under section 142L(2)(c) or (3)(c), or</p></content></level><level class="para1"><num>(c)</num><content><p>the giving by either regulator of a direction under section 142L(2)(d) or (3)(d),</p></content></level><wrapUp><p>may refer the matter to the Tribunal.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-notified-person">Notified person</term>” means a person to whom a decision notice under section 142N(6) was given or ought to have been given.</p></content></subsection></section><section><num>142P</num><heading>Subsequent variation of requirement or direction</heading><subsection><num>(1)</num><intro><p>A regulator may at any time with the consent of the person concerned vary—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The person concerned may at any time apply to the appropriate regulator for the variation of—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(3)</num><content><p>Sections 55U, 55V, 55X and 55Z3 apply to an application under subsection (2) as they apply to an application for the variation of a requirement imposed by the appropriate regulator under section 55L or 55M.</p></content></subsection></section><section><num>142Q</num><heading>Consultation <abbr title="et cetera" xml:lang="la">etc.</abbr> between regulators</heading><subsection><num>(1)</num><intro><p>Where a notice under section 142M or a warning notice or decision notice under section 142N relates to a requirement to be imposed in pursuance of a direction to be given as a result of section 142L(2)(c) or (3)(c), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator before giving the notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>give a copy of the notice to the other regulator.</p></content></level></subsection><subsection><num>(2)</num><content><p>The appropriate regulator must consult the other regulator before varying under section 142P a direction given as a result of section 142L(2)(c) or (3)(c).</p></content></subsection><subsection><num>(3)</num><content><p>Directions given by the FCA as a result of section 142L(3)(c) are subject to any directions given to the FCA under section 3I.</p></content></subsection></section><section><num>142R</num><heading>Relationship with regulators' powers under Parts 4A and 12A</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body which is a member of a mixed group, and</p></content></level><level class="para1"><num>(b)</num><content><p>a parent undertaking of such a ring-fenced body.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may not exercise its general powers in relation to the ring-fenced body or parent undertaking so as to achieve either of the results in subsection (3).</p></content></subsection><subsection><num>(3)</num><intro><p>Those results are—</p></intro><level class="para1"><num>(a)</num><content><p>that no existing group member is a parent undertaking of the ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>that the ring-fenced body is not a member of a mixed group.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(a) “<term refersTo="#term-existing-group-member">existing group member</term>” means a person who is a member of the ring-fenced body's group at the time when the requirement is imposed or the direction given.</p></content></subsection><subsection><num>(5)</num><content><p>Except as provided by subsections (1) to (4), the provisions of sections 142K to 142Q do not limit the general powers of either regulator.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section, a regulator's “general powers” are its powers under the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 55L or 55M (imposition of requirements in connection with Part 4A permission);</p></content></level><level class="para1"><num>(b)</num><content><p>section 192C (power to direct qualifying parent undertaking).</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of this section, a ring-fenced body is a member of a mixed group if a member of the ring-fenced body's group carries on an excluded activity.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Failure of parent undertaking to comply with direction</i></heading><section><num>142S</num><heading>Power to impose penalty or issue censure</heading><subsection><num>(1)</num><content><p>This section applies if a regulator is satisfied that a person who is or has been a qualifying parent undertaking (“P”) has contravened a requirement of a direction given to P by that regulator as a result of section 142L(2)(d) or (3)(d).</p></content></subsection><subsection><num>(2)</num><intro><p>The regulator may impose a penalty of such amount as it considers appropriate on—</p></intro><level class="para1"><num>(a)</num><content><p>P, or</p></content></level><level class="para1"><num>(b)</num><content><p>any person who was knowingly concerned in the contravention.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulator may, instead of imposing a penalty on a person, publish a statement censuring the person.</p></content></subsection><subsection><num>(4)</num><content><p>The regulator may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 142T.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-limitation-period">The limitation period</term>” means the period of 3 years beginning with the first day on which the regulator knew of the contravention.</p></content></subsection><subsection><num>(6)</num><content><p>For this purpose a regulator is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.</p></content></subsection><subsection><num>(7)</num><content><p>The requirements that a regulator may be required to impose as a result of a direction under section 142L(2)(c) or (3)(c) include requirements that the regulator would not but for the direction have power to impose.</p></content></subsection></section><section><num>142T</num><heading>Procedure and right to refer to Tribunal</heading><subsection><num>(1)</num><content><p>If a regulator proposes to take action against a person under section 142S, it must give the person a warning notice.</p></content></subsection><subsection><num>(2)</num><content><p>A warning notice about a proposal to impose a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(3)</num><content><p>A warning notice about a proposal to publish a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(4)</num><content><p>If the regulator decides to take action against a person under section 142S, it must give the person a decision notice.</p></content></subsection><subsection><num>(5)</num><content><p>A decision notice about the imposition of a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(6)</num><content><p>A decision notice about the publication of a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(7)</num><content><p>If the regulator decides to take action against a person under section 142S, the person may refer the matter to the Tribunal.</p></content></subsection></section><section><num>142U</num><heading>Duty on publication of statement</heading><intro><p>After a statement under section 142S(3) is published, the regulator must send a copy of the statement to—</p></intro><level class="para1"><num>(a)</num><content><p>the person in respect of whom it is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>any person to whom a copy of the decision notice was given under section 393(4).</p></content></level></section><section><num>142V</num><heading>Imposition of penalties under section 142S: statement of policy</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition of penalties under section 142S, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of penalties under that section.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A regulator's policy in determining what the amount of a penalty should be must include having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the seriousness of the contravention,</p></content></level><level class="para1"><num>(b)</num><content><p>the extent to which the contravention was deliberate or reckless, and</p></content></level><level class="para1"><num>(c)</num><content><p>whether the person on whom the penalty is to be imposed is an individual.</p></content></level></subsection><subsection><num>(3)</num><content><p>A regulator may at any time alter or replace a statement issued under this section.</p></content></subsection><subsection><num>(4)</num><content><p>If a statement issued under this section is altered or replaced, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(5)</num><content><p>In exercising, or deciding whether to exercise, a power under section 142S(2) in the case of any particular contravention, a regulator must have regard to any statement of policy published under this section and in force at a time when the contravention occurred.</p></content></subsection><subsection><num>(6)</num><content><p>A statement under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(7)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of the statement published under this section.</p></content></subsection><subsection><num>(8)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection><subsection><num>(9)</num><content><p>Section 192I applies in relation to a statement under this section as it applies in relation to a statement under section 192H.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Pension liabilities</i></heading><section><num>142W</num><heading>Pension liabilities</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations require a ring-fenced body to make arrangements for any one or more of the following purposes—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring that, except in prescribed cases, the ring-fenced body cannot become liable to meet, or contribute to the meeting of, pension liabilities which arise in connection with persons' service on or after a date specified in the regulations (“<term refersTo="#term-the-specified-date">the specified date</term>”) in any employment, other than service in an employment in respect of which the employer is a ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>ensuring that, except in prescribed cases, the default of a person other than another ring-fenced body would not result in the ring-fenced body becoming liable to meet, or contribute to the meeting of, pension liabilities arising in connection with persons' service in any employment before the specified date;</p></content></level><level class="para1"><num>(c)</num><content><p>to the extent that it is not possible to ensure the result mentioned in paragraph (a) or (b), minimising any potential liability falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The regulations may make provision enabling the trustees or managers of a relevant pension scheme in respect of which the employer or one of the employers is a ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>to transfer to another relevant pension scheme all or part of the pension liabilities arising in connection with persons' service before the specified date together with all or part of the assets of the scheme, or</p></content></level><level class="para1"><num>(b)</num><content><p>to divide the scheme into two or more sections in relation to which prescribed conditions are met.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The regulations may make provision—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a ring-fenced body to apply to the court in a case where the ring-fenced body has been unable to reach agreement with another person (“P”) about the making of arrangements with P on commercial terms for one or more of the purposes in subsection (1), and</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the court on such an application to order P to enter into arrangements with the ring-fenced body for those purposes on such terms as the court considers fair and reasonable in the circumstances.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The regulations must provide that any terms specified by the court by virtue of provision made under subsection (3)—</p></intro><level class="para1"><num>(a)</num><content><p>must be terms which, in the court's opinion, represent terms on which the arrangements might be entered into if they were being entered into for commercial reasons between willing parties dealing at arm's length, and</p></content></level><level class="para1"><num>(b)</num><content><p>may involve the payment of any sum by instalments.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulations may make other provision—</p></intro><level class="para1"><num>(a)</num><content><p>about the making by a ring-fenced body of arrangements for one or more of the purposes in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>about any transfer or division falling within subsection (2).</p></content></level></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require a ring-fenced body to cease to participate in a relevant pension scheme unless the scheme is divided into two or more sections in relation to which prescribed conditions are met;</p></content></level><level class="para1"><num>(b)</num><content><p>provide that assets or liabilities of a relevant pension scheme may not be transferred under the arrangements to another occupational pension scheme unless the other scheme meets prescribed conditions;</p></content></level><level class="para1"><num>(c)</num><content><p>require ring-fenced bodies to establish new occupational pension schemes in prescribed circumstances;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that any provision of a relevant pension scheme that might prevent the making of the arrangements, other than a provision requiring the consent of the trustees or managers of the scheme, is not to have effect in prescribed circumstances;</p></content></level><level class="para1"><num>(e)</num><content><p>make provision enabling the trustees or managers of a relevant pension scheme, with the consent of the employers in relation to the scheme, to modify the scheme by resolution for the purpose of enabling the arrangements to be made;</p></content></level><level class="para1"><num>(f)</num><content><p>require the trustees or managers of a relevant pension scheme or any employer in relation to a relevant pension scheme to give notice of prescribed matters to prescribed persons;</p></content></level><level class="para1"><num>(g)</num><content><p>make provision enabling the court, on an application made in accordance with the regulations by a ring-fenced body, if it appears to the court that the trustees or managers of a relevant pension scheme, or an employer in relation to such a scheme, have unreasonably refused their consent to any step that would enable the arrangements to be made, to order that the step may be taken without that consent;</p></content></level><level class="para1"><num>(h)</num><content><p>confer exemption from any provision of the regulations in prescribed cases;</p></content></level><level class="para1"><num>(i)</num><content><p>confer functions on the PRA;</p></content></level><level class="para1"><num>(j)</num><content><p>provide that a ring-fenced body which contravenes a prescribed requirement of the regulations is to be taken to have contravened a requirement imposed by the PRA under this Act;</p></content></level><level class="para1"><num>(k)</num><content><p>modify, exclude or apply (with or without modification) any primary or subordinate legislation.</p></content></level></subsection><subsection><num>(7)</num><intro><p>The Treasury may by regulations require an authorised person who will or may be a ring-fenced body or an authorised person who will or may be a member of a ring-fenced body's group to do all it can to obtain from the Pensions Regulator a clearance statement in relation to any arrangements to be made for the purpose of complying with—</p></intro><level class="para1"><num>(a)</num><content><p>regulations under this section, or</p></content></level><level class="para1"><num>(b)</num><content><p>any provision made by or under this Part (other than this section) when the provision comes into force.</p></content></level></subsection><subsection><num>(8)</num><intro><p>A “clearance statement” is a statement issued by the Pensions Regulator under any of the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 42 of the Pensions Act 2004 (clearance statements relating to contribution notice under section 38);</p></content></level><level class="para1"><num>(b)</num><content><p>section 46 of that Act (clearance statements relating to financial support directions);</p></content></level><level class="para1"><num>(c)</num><content><p>Article 38 of the Pensions (Northern Ireland) Order 2005 (clearance statements relating to contribution notices under article 34);</p></content></level><level class="para1"><num>(d)</num><content><p>Article 42 of that Order (clearance statements relating to financial support directions).</p></content></level></subsection><subsection><num>(9)</num><content><p>In relation to a ring-fenced body that is not a PRA-authorised person, references in subsection (6) to the PRA are to be read as references to the FCA.</p></content></subsection><subsection><num>(10)</num><content><p>Regulations under this section may not require ring-fenced bodies to achieve the results mentioned in subsection (1) before 1 January 2026, but this does not prevent the regulations requiring steps to be taken at any time after the regulations come into force.</p></content></subsection></section><section><num>142X</num><heading>Further interpretative provisions for section 142W</heading><subsection><num>(1)</num><content><p>The following provisions have effect for the interpretation of section 142W and this section.</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-relevant-pension-scheme">Relevant pension scheme</term>” means an occupational pension scheme that is not a money purchase scheme.</p></content></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-occupational-pension-scheme">Occupational pension scheme</term>” has the meaning given in section 1 of the Pension Schemes Act 1993 or section 1 of the Pension Schemes (Northern Ireland) Act 1993 and, in relation to such a scheme, “<term refersTo="#term-member">member</term>” and “<term refersTo="#term-trustees-or-managers">trustees or managers</term>” have the same meaning as in Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995.</p></content></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-money-purchase-scheme">Money purchase scheme</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(5)</num><intro><p>“<term refersTo="#term-employer">Employer</term>”, in relation to a relevant pension scheme, means—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is for the purposes of Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995 an employer in relation to the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other person who has or may have any liability under the scheme.</p></content></level></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-employment">Employment</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-pension-liabilities">Pension liabilities</term>” means liabilities attributable to or associated with the provision under a relevant pension scheme of pensions or other benefits.</p></content></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-the-court">The court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to England and Wales or Northern Ireland, the High Court, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to Scotland, the Court of Session.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Loss-absorbency requirements</i></heading><section><num>142Y</num><heading>Power of Treasury in relation to loss-absorbency requirements</heading><subsection><num>(1)</num><intro><p>The Treasury may by order make provision about the exercise by either regulator of its functions under this Act, so far as they are (apart from the order) capable of being exercised in relation to a relevant body so as to require the relevant body—</p></intro><level class="para1"><num>(a)</num><content><p>to issue any debt instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>to ensure that any part of the relevant body's debt consists of debt owed by it in respect of debt instruments, or debt instruments of a particular kind.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A “relevant body” is—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body,</p></content></level><level class="para1"><num>(b)</num><content><p>any other body corporate that has a Part 4A permission relating to the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(c)</num><content><p>a body corporate that is a member of the group of a body falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a bond,</p></content></level><level class="para1"><num>(b)</num><content><p>any other instrument creating or acknowledging a debt, or</p></content></level><level class="para1"><num>(c)</num><content><p>an instrument giving rights to acquire a debt instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require the regulator to exercise its functions so as to require relevant bodies to do either or both of the things mentioned in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>limit the extent to which the regulator may require a relevant body's debt to consist of debt owed in respect of debt instruments or of debt instruments of a kind specified in the order;</p></content></level><level class="para1"><num>(c)</num><intro><p>require the regulator—</p></intro><level class="para2"><num>(i)</num><content><p>to make, or not to make, provision by reference to specified matters, or</p></content></level><level class="para2"><num>(ii)</num><content><p>to have regard, or not to have regard, to specified matters;</p></content></level></level><level class="para1"><num>(d)</num><content><p>require the regulator to consult, or obtain the consent of, the Treasury before making rules of a specified description or exercising any other specified function;</p></content></level><level class="para1"><num>(e)</num><content><p>impose on the regulator in connection with the exercise of a specified function procedural requirements which would not otherwise apply to the exercise of the function;</p></content></level><level class="para1"><num>(f)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>General</i></heading><section><num>142Z</num><heading>Affirmative procedure in relation to certain orders under Part 9B</heading><subsection><num>(1)</num><intro><p>This section applies to an order containing provision made under any of the following provisions of this Part—</p></intro><level class="para1"><num>(a)</num><content><p>section 142A(2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>section 142B(2) or (5);</p></content></level><level class="para1"><num>(c)</num><content><p>section 142C;</p></content></level><level class="para1"><num>(d)</num><content><p>section 142D(2) or (4);</p></content></level><level class="para1"><num>(e)</num><content><p>section 142E;</p></content></level><level class="para1"><num>(f)</num><content><p>section 142I;</p></content></level><level class="para1"><num>(g)</num><content><p>section 142Y.</p></content></level></subsection><subsection><num>(2)</num><intro><p>No order to which this section applies may be made unless—</p></intro><level class="para1"><num>(a)</num><content><p>a draft of the order has been laid before Parliament and approved by a resolution of each House, or</p></content></level><level class="para1"><num>(b)</num><content><p>subsection (4) applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (4) applies if an order under 142D(4) or 142E contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.</p></content></subsection><subsection><num>(4)</num><intro><p>Where this subsection applies the order—</p></intro><level class="para1"><num>(a)</num><content><p>must be laid before Parliament after being made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).</p></content></level></subsection><subsection><num>(5)</num><content><p>The “relevant period” is a period of 28 days beginning with the day on which the order is made.</p></content></subsection><subsection><num>(6)</num><content><p>In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than 4 days.</p></content></subsection></section><section><num>142Z1</num><heading>Interpretation of Part 9B</heading><subsection><num>(1)</num><content><p>This section has effect for the interpretation of this Part.</p></content></subsection><subsection><num>(2)</num><intro><p>Any reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(b)</num><content><p>the regulated activity of dealing in investments as principal,</p></content></level><wrapUp><p>is to be read in accordance with Schedule 2, taken with any order under section 22.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>Any reference to the group restructuring powers is to be read in accordance with section 142L(1).</p></content></subsection><subsection><num>(4)</num><content><p>Any reference to a qualifying parent undertaking is to be read in accordance with section 142L(4).</p></content></subsection></section></hcontainer></part></quotedStructure></mod></p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p><mod>In section 133 of FSMA 2000 (proceedings before Tribunal), in subsection (7A), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>a decision to take action under section 142S;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p><mod>In section 391 of FSMA 2000 (publication), in subsection (1ZB), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>section 142N;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-4-4"><num>(4)</num><intro><p>In section 392 of FSMA 2000 (application of sections 393 and 394)—</p></intro><level class="para1" eId="section-4-4-a"><num>(a)</num><content><p><mod>in paragraph (a), after “131H(1),” insert <quotedText>“
142T(1),
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-4-4-b"><num>(b)</num><content><p><mod>in paragraph (b), after “131H(4),” insert <quotedText>“
142T(4),
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-4-5"><num>(5)</num><intro><p>In section 417 of FSMA 2000 (definitions), in subsection (1)—</p></intro><level class="para1" eId="section-4-5-a"><num>(a)</num><content><p><mod>after the definition of “control of information rules” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-core-activities">core activities</term>” has the meaning given in section 142B;</p><p>“<term refersTo="#term-core-services">core services</term>” has the meaning given in section 142C;</p></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-4-5-b"><num>(b)</num><content><p><mod>after the definition of “ESMA” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-excluded-activities">excluded activities</term>” has the meaning given in section 142D;</p></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-4-5-c"><num>(c)</num><content><p><mod>after the definition of “regulator” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” has the meaning given in section 142A;</p><p>“<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>” has the meaning given in section 142H;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-4-6"><num>(6)</num><content><p><mod>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)(c)(i), after “138N,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection><subsection eId="section-4-7"><num>(7)</num><content><p><mod>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), in paragraph 16(3)(c)(i), after “69,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection></section><section eId="section-5"><num>5</num><heading>PRA annual report</heading><subsection eId="section-5-1"><num>(1)</num><content><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), paragraph 19 (annual report) is amended as follows.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p><mod>After sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In the report the PRA must also report in general terms on—</p></intro><level class="para1"><num>(a)</num><content><p>the extent to which, in its opinion, ring-fenced bodies have complied with the ring-fencing provisions,</p></content></level><level class="para1"><num>(b)</num><content><p>steps taken by ring-fenced bodies in order to comply with the ring-fencing provisions,</p></content></level><level class="para1"><num>(c)</num><content><p>steps taken by it to enforce the ring-fencing provisions,</p></content></level><level class="para1"><num>(d)</num><content><p>the extent to which ring-fenced bodies are carrying on the regulated activity of dealing in investments as principal (whether in the United Kingdom or elsewhere) in circumstances where as a result of an order under section 142D(2) that activity is not an excluded activity,</p></content></level><level class="para1"><num>(e)</num><content><p>the extent to which ring-fenced bodies are carrying on activities that would be excluded activities by virtue of an order under section 142D(4) but for an exemption or exclusion made by such an order,</p></content></level><level class="para1"><num>(f)</num><content><p>the extent to which ring-fenced bodies are doing things that they would be prohibited from doing by an order under section 142E but for an exemption made by such an order, and</p></content></level><level class="para1"><num>(g)</num><content><p>the extent to which ring-fenced bodies appear to it to have acted in accordance with any guidance which it has given to ring-fenced bodies and which relates to the operation of the ring-fencing provisions.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>In sub-paragraph (1A)—</p></intro><level class="para1"><num>(a)</num><content><p>references to “ring-fenced bodies” relate only to ring-fenced bodies that are PRA-authorised persons, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p><mod>In sub-paragraph (2), for “Sub-paragraph (1) does not” substitute <quotedText>“
Sub-paragraphs (1) and (1A) do not
”</quotedText>.</mod></p></content></subsection></section><section eId="section-6"><num>6</num><heading>Ring-fencing transfer schemes</heading><content><p>Schedule 1 (which contains amendments of Part 7 of FSMA 2000 relating to ring-fencing transfer schemes) has effect.</p></content></section><section eId="section-7"><num>7</num><heading>Building societies: power to make provision about ring-fencing</heading><subsection eId="section-7-1"><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><content><p>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).</p></content></level></subsection><subsection eId="section-7-2"><num>(2)</num><intro><p>The regulations may, in particular—</p></intro><level class="para1" eId="section-7-2-a"><num>(a)</num><content><p>amend the Building Societies Act 1986;</p></content></level><level class="para1" eId="section-7-2-b"><num>(b)</num><content><p>apply any of the provisions contained in, or made under, Part 9B of FSMA 2000, with such modifications as the Treasury consider appropriate;</p></content></level><level class="para1" eId="section-7-2-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-7-2-d"><num>(d)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-7-2-e"><num>(e)</num><content><p>make such consequential provision including amendments of any enactment as the Treasury consider appropriate.</p></content></level></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-7-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in the Building Societies Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-continuity-provision" eId="term-the-relevant-continuity-provision">the relevant continuity provision</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of functions exercisable by the PRA, section 2B(3)(c) and (4A) of that Act.</p></content></level></hcontainer></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-1"><num>1</num><heading>Objectives of Prudential Regulation Authority</heading><subsection eId="section-1-1"><num>(1)</num><content><p>Section 2B of FSMA 2000 (the PRA's general objective) is amended as follows.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “and”, and</p></content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>discharging its general functions in relation to the matters mentioned in subsection (4A) in a way that seeks to—</p></intro><level class="para2"><num>(i)</num><content><p>ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para2"><num>(ii)</num><content><p>ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para2"><num>(iii)</num><content><p>minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could affect the continuity of the provision in the United Kingdom of core services.</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-1-3"><num>(3)</num><content><p><mod>In subsection (4), for “subsection (3)” substitute <quotedText>“
subsection (3)(a) and (b)
”</quotedText>.</mod></p></content></subsection><subsection eId="section-1-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The matters referred to in subsection (3)(c) are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-1-5"><num>(5)</num><intro><p>In section 2J of FSMA 2000 (interpretation of Chapter 2 of Part 1)—</p></intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content><p><mod>in subsection (3), for “a PRA-authorised” substitute <quotedText>“
an authorised
”</quotedText>,</mod></p></content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>For the purposes of this Chapter, the cases in which a person (“P”) other than an authorised person is to be regarded as failing include any case where P enters insolvency.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), for “subsection (3)(a)” substitute <quotedText>“
subsections (3)(a) and (3A)
”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-1"><num>(1)</num><content><p>Section 2B of FSMA 2000 (the PRA's general objective) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-1-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “and”, and</p></content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>discharging its general functions in relation to the matters mentioned in subsection (4A) in a way that seeks to—</p></intro><level class="para2"><num>(i)</num><content><p>ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para2"><num>(ii)</num><content><p>ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para2"><num>(iii)</num><content><p>minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could affect the continuity of the provision in the United Kingdom of core services.</p></content></level></level></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “and”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-1-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><intro><p>discharging its general functions in relation to the matters mentioned in subsection (4A) in a way that seeks to—</p></intro><level class="para2"><num>(i)</num><content><p>ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para2"><num>(ii)</num><content><p>ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para2"><num>(iii)</num><content><p>minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could affect the continuity of the provision in the United Kingdom of core services.</p></content></level></level></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-3"><num>(3)</num><content><p><mod>In subsection (4), for “subsection (3)” substitute <quotedText>“
subsection (3)(a) and (b)
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-1-4"><num>(4)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The matters referred to in subsection (3)(c) are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-1-5"><num>(5)</num><intro><p>In section 2J of FSMA 2000 (interpretation of Chapter 2 of Part 1)—</p></intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content><p><mod>in subsection (3), for “a PRA-authorised” substitute <quotedText>“
an authorised
”</quotedText>,</mod></p></content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>For the purposes of this Chapter, the cases in which a person (“P”) other than an authorised person is to be regarded as failing include any case where P enters insolvency.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), for “subsection (3)(a)” substitute <quotedText>“
subsections (3)(a) and (3A)
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-5-a"><num>(a)</num><content><p><mod>in subsection (3), for “a PRA-authorised” substitute <quotedText>“
an authorised
”</quotedText>,</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-1-5-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>For the purposes of this Chapter, the cases in which a person (“P”) other than an authorised person is to be regarded as failing include any case where P enters insolvency.</p></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-5-c"><num>(c)</num><content><p><mod>in subsection (4), for “subsection (3)(a)” substitute <quotedText>“
subsections (3)(a) and (3A)
”</quotedText>.</mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-2"><num>2</num><heading>Modification of objectives of Financial Conduct Authority</heading><content><p><mod>After section 1I of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Modifications applying if core activity not regulated by </i>PRA</heading><section><num>1IA</num><heading>Modifications applying if core activity not regulated by PRA</heading><subsection><num>(1)</num><content><p>If and so long as any regulated activity is a core activity (see section 142B) without also being a PRA-regulated activity (see section 22A), the provisions of this Chapter are to have effect subject to the following modifications.</p></content></subsection><subsection><num>(2)</num><intro><p>Section 1B is to have effect as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsection (3), after paragraph (c) there were inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>in relation to the matters mentioned in section 1EA(2), the continuity objective (see section 1EA).</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (4), for “or the integrity objective,” there were substituted <quotedText>“
, the integrity objective or (in relation to the matters mentioned in section 1EA(2)) the continuity objective,
”</quotedText>.</mod></p></content></level></subsection><subsection><num>(3)</num><content><p><mod>After section 1E there is to be taken to be inserted—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>1EA</num><heading>Continuity objective</heading><subsection><num>(1)</num><content><p>In relation to the matters mentioned in subsection (2), the continuity objective is: protecting the continuity of the provision in the United Kingdom of core services (see section 142C).</p></content></subsection><subsection><num>(2)</num><intro><p>Those matters are—</p></intro><level class="para1"><num>(a)</num><content><p>Part 9B (ring-fencing);</p></content></level><level class="para1"><num>(b)</num><content><p>ring-fenced bodies (see section 142A);</p></content></level><level class="para1"><num>(c)</num><content><p>any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;</p></content></level><level class="para1"><num>(d)</num><content><p>applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The FCA's continuity objective is to be advanced primarily by—</p></intro><level class="para1"><num>(a)</num><content><p>seeking to ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,</p></content></level><level class="para1"><num>(b)</num><content><p>seeking to ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and</p></content></level><level class="para1"><num>(c)</num><content><p>seeking to minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could adversely affect the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(c), “<term refersTo="#term-failure">failure</term>” is to be read in accordance with section 2J(3) to (4).</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-3"><num>3</num><heading>Amendment of PRA power of direction</heading><intro><p>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (4)—</p></intro><level class="para1" eId="section-3-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “or”, and</p></content></level><level class="para1" eId="section-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b), insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-a"><num>(a)</num><content><p>at the end of paragraph (a), omit “or”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-3-b"><num>(b)</num><content><p><mod>at the end of paragraph (b), insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom.</p></content></level></quotedStructure></mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4"><num>4</num><heading>Ring-fencing of certain activities</heading><subsection eId="section-4-1"><num>(1)</num><content><p><mod>After Part 9A of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><part><num><b>PART 9B</b></num><heading>Ring-fencing</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Introductory</i></heading><section><num>142A</num><heading>“Ring-fenced body”</heading><subsection><num>(1)</num><content><p>In this Act “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which carries on one or more core activities (see section 142B) in relation to which it has a Part 4A permission.</p></content></subsection><subsection><num>(2)</num><intro><p>But “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” does not include—</p></intro><level class="para1"><num>(a)</num><content><p>a building society within the meaning of the Building Societies Act 1986, or</p></content></level><level class="para1"><num>(b)</num><content><p>a <abbr class="acronym" title="United Kingdom">UK</abbr> institution of a class exempted by order made by the Treasury.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under subsection (2)(b) may be made in relation to a class of <abbr class="acronym" title="United Kingdom">UK</abbr> institution only if the Treasury are of the opinion that the exemption conferred by the order would not be likely to have a significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>Subject to that, in deciding whether and, if so, how to exercise their powers under subsection (2)(b), the Treasury must have regard to the desirability of minimising any adverse effect that the ring-fencing provisions might be expected to have on competition in the market for services provided in the course of carrying on core activities, including any adverse effect on the ease with which new entrants can enter the market.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4) “<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection><subsection><num>(6)</num><content><p>An order under subsection (2)(b) may provide for the exemption to be subject to conditions.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means a body corporate incorporated in the United Kingdom.</p></content></subsection></section><section><num>142B</num><heading>Core activities</heading><subsection><num>(1)</num><content><p>References in this Act to a “core activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of accepting deposits (whether carried on in the United Kingdom or elsewhere) is a core activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that it is not necessary for either of the following purposes that the regulated activity of accepting deposits should be a core activity when carried on in the specified circumstances.</p></content></subsection><subsection><num>(4)</num><intro><p>Those purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>to secure an appropriate degree of protection for the depositors concerned, or</p></content></level><level class="para1"><num>(b)</num><content><p>to protect the continuity of the provision in the United Kingdom of services provided in the course of carrying on the regulated activity of accepting deposits.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury may by order provide for a regulated activity other than that of accepting deposits to be a core activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(6)</num><intro><p>An order under subsection (5) may be made only if the Treasury are of the opinion—</p></intro><level class="para1"><num>(a)</num><content><p>that an interruption of the provision of services provided in the United Kingdom in the carrying on of the regulated activity concerned could adversely affect the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system or of a significant part of that system, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the continuity of the provision of those services can more effectively be protected by treating the activity as a core activity.</p></content></level></subsection></section><section><num>142C</num><heading>Core services</heading><subsection><num>(1)</num><content><p>References in this Act to “core services” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><intro><p>The following are core services—</p></intro><level class="para1"><num>(a)</num><content><p>facilities for the accepting of deposits or other payments into an account which is provided in the course of carrying on the core activity of accepting deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>facilities for withdrawing money or making payments from such an account;</p></content></level><level class="para1"><num>(c)</num><content><p>overdraft facilities in connection with such an account.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Treasury may by order provide that any other specified services provided in the course of carrying on the core activity of accepting deposits are also core services.</p></content></subsection><subsection><num>(4)</num><content><p>If an order under section 142B(5) provides for an activity other than that of accepting deposits to be a core activity, the Treasury must by order provide that specified services provided in the course of carrying on that activity are core services.</p></content></subsection><subsection><num>(5)</num><content><p>The services specified by order under subsection (4) must be services in relation to which the Treasury are of the opinion mentioned in section 142B(6)(a).</p></content></subsection></section><section><num>142D</num><heading>Excluded activities</heading><subsection><num>(1)</num><content><p>References in this Act to an “excluded activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of dealing in investments as principal (whether carried on in the United Kingdom or elsewhere) is an excluded activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that allowing ring-fenced bodies to deal in investments as principal in the specified circumstances would not be likely to result in any significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>The Treasury may by order provide for an activity other than the regulated activity of dealing in investments as principal to be an excluded activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(5)</num><intro><p>An activity to which an order under subsection (4) relates—</p></intro><level class="para1"><num>(a)</num><content><p>need not be a regulated activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>may be an activity carried on in the United Kingdom or elsewhere.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In deciding whether to make an order under subsection (4) in relation to any activity, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it carried on the activity concerned, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the carrying on of that activity by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(7)</num><content><p>An order under subsection (4) may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection></section><section><num>142E</num><heading>Power of Treasury to impose prohibitions</heading><subsection><num>(1)</num><intro><p>The Treasury may by order prohibit ring-fenced bodies from—</p></intro><level class="para1"><num>(a)</num><content><p>entering into transactions of a specified kind or with persons falling within a specified class;</p></content></level><level class="para1"><num>(b)</num><content><p>establishing or maintaining a branch in a specified country or territory;</p></content></level><level class="para1"><num>(c)</num><content><p>holding in specified circumstances shares or voting power in companies of a specified description.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In deciding whether to make an order under this section imposing a prohibition, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it did the thing to which the prohibition relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the doing of that thing by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under this section may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any prohibition to be subject to exemptions specified in the order;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for any exemption to be subject to conditions specified in the order.</p></content></level></subsection></section><section><num>142F</num><heading>Orders under section 142A, 142B, 142D or 142E</heading><subsection><num>(1)</num><intro><p>An order made under section 142A, 142B, 142D or 142E may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise or require the making of rules by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(b)</num><content><p>authorise the making of other instruments by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(c)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If the order confers powers on a regulator or authorises or requires the making of rules or other instruments by a regulator, the order may also—</p></intro><level class="para1"><num>(a)</num><content><p>impose conditions on the exercise of any power conferred on the regulator;</p></content></level><level class="para1"><num>(b)</num><content><p>impose consultation requirements on the regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>make the exercise of a power by the regulator subject to the consent of the Treasury.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</i></heading><section><num>142G</num><heading>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</heading><subsection><num>(1)</num><intro><p>A ring-fenced body which—</p></intro><level class="para1"><num>(a)</num><content><p>carries on an excluded activity or purports to do so, or</p></content></level><level class="para1"><num>(b)</num><content><p>contravenes any provision of an order under section 142E,</p></content></level><wrapUp><p>is to be taken to have contravened a requirement imposed on the body by the appropriate regulator under this Act.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>The contravention does not—</p></intro><level class="para1"><num>(a)</num><content><p>make a person guilty of an offence;</p></content></level><level class="para1"><num>(b)</num><content><p>make a transaction void or unenforceable;</p></content></level><level class="para1"><num>(c)</num><content><p>(subject to subsection (3)) give rise to any right of action for breach of statutory duty.</p></content></level></subsection><subsection><num>(3)</num><content><p>In such cases as the Treasury may specify by order, the contravention is actionable at the suit of a person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a ring-fenced body which is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other ring-fenced body, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fencing rules</i></heading><section><num>142H</num><heading>Ring-fencing rules</heading><subsection><num>(1)</num><intro><p>In the exercise of its power to make general rules, the appropriate regulator must in particular make rules—</p></intro><level class="para1"><num>(a)</num><content><p>requiring a ring-fenced body to make arrangements to ensure the effective provision to the ring-fenced body of services and facilities that it requires in relation to the carrying on of a core activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>making provision for the group ring-fencing purposes applying to ring-fenced bodies and to authorised persons who are members of a ring-fenced body's group.</p></content></level></subsection><subsection><num>(2)</num><content><p>Section 142E(1)(c) does not affect the power of the appropriate regulator to make general rules imposing restrictions on the extent of the shares or voting power that a ring-fenced body may hold in another company, except where a restriction on the extent of the shares or voting power that the ring-fenced body may hold in the company is imposed by order under section 142E(1)(c).</p></content></subsection><subsection><num>(3)</num><content><p>General rules that are required by this section or make provision falling within subsection (2) are in this Act referred to as “<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>”.</p></content></subsection><subsection><num>(4)</num><intro><p>The “group ring-fencing purposes” are—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring as far as reasonably practicable that the carrying on of core activities by a ring-fenced body is not adversely affected by the acts or omissions of other members of its group;</p></content></level><level class="para1"><num>(b)</num><intro><p>ensuring as far as reasonably practicable that in carrying on its business a ring-fenced body—</p></intro><level class="para2"><num>(i)</num><content><p>is able to take decisions independently of other members of its group, and</p></content></level><level class="para2"><num>(ii)</num><content><p>does not depend on resources which are provided by a member of its group and which would cease to be available to the ring-fenced body in the event of the insolvency of the other member;</p></content></level></level><level class="para1"><num>(c)</num><content><p>ensuring as far as reasonably practicable that the ring-fenced body would be able to continue to carry on core activities in the event of the insolvency of one or more other members of its group.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Ring-fencing rules made for the group ring-fencing purposes must include—</p></intro><level class="para1"><num>(a)</num><content><p>provision restricting the power of a ring-fenced body to enter into contracts with other members of its group otherwise than on arm's length terms;</p></content></level><level class="para1"><num>(b)</num><content><p>provision restricting the payments that a ring-fenced body may make (by way of dividend or otherwise) to other members of its group;</p></content></level><level class="para1"><num>(c)</num><content><p>provision requiring the disclosure to the appropriate regulator of information relating to transactions between a ring-fenced body and other members of its group;</p></content></level><level class="para1"><num>(d)</num><intro><p>provision requiring a ring-fenced body to ensure that its board of directors (or if there is no such board, the equivalent management body) includes to a specified extent—</p></intro><level class="para2"><num>(i)</num><content><p>members who are treated by the rules as being independent of other members of the ring-fenced body's group,</p></content></level><level class="para2"><num>(ii)</num><content><p>members who are treated by the rules as being independent of the ring-fenced body itself, and</p></content></level><level class="para2"><num>(iii)</num><content><p>non-executive members;</p></content></level></level><level class="para1"><num>(e)</num><content><p>provision requiring a ring-fenced body to act in accordance with a remuneration policy meeting specified requirements;</p></content></level><level class="para1"><num>(f)</num><content><p>provision requiring a ring-fenced body to act in accordance with a human resources policy meeting specified requirements;</p></content></level><level class="para1"><num>(g)</num><content><p>provision requiring arrangements made by the ring-fenced body for the identification, monitoring and management of risk to meet specified requirements;</p></content></level><level class="para1"><num>(h)</num><content><p>such other provision as the appropriate regulator considers necessary or expedient for any of the purposes in subsection (4).</p></content></level></subsection><subsection><num>(6)</num><content><p>The reference in subsection (5)(e) to a remuneration policy is a reference to a policy about the remuneration of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(7)</num><content><p>The reference in subsection (5)(f) to a human resources policy is a reference to a policy about the appointment and management of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other authorised person, the FCA;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-shares">shares</term>” has the meaning given in section 422;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified">specified</term>” means specified in the rules;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-voting-power">voting power</term>” has the meaning given in section 422.</p></content></hcontainer></subsection></section><section><num>142I</num><heading>Powers of Treasury in relation to ring-fencing rules</heading><subsection><num>(1)</num><intro><p>The Treasury may by order require the appropriate regulator, as defined in section 142H(8), to include (or not to include) in ring-fencing rules specified provision relating to—</p></intro><level class="para1"><num>(a)</num><content><p>any of the matters mentioned in section 142H(5)(a) to (g), or</p></content></level><level class="para1"><num>(b)</num><content><p>any other specified matter.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The power to make an order under this section is exercisable only if the Treasury consider it necessary or expedient to do so—</p></intro><level class="para1"><num>(a)</num><content><p>for any of the group ring-fencing purposes as defined in section 142H(4), or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise for securing the independence of ring-fenced bodies from other members of their groups.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section><section><num>142J</num><heading>Review of ring-fencing rules <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>The PRA must carry out reviews of its ring-fencing rules and of any rules made by it under section 192JA (rules applying to parent undertakings of ring-fenced bodies).</p></content></subsection><subsection><num>(2)</num><content><p>The first review must be completed before the end of the period of 5 years beginning with the day on which the first ring-fencing rules come into force.</p></content></subsection><subsection><num>(3)</num><content><p>Subsequent reviews must be completed before the end of the period of 5 years beginning with the day on which the previous review was completed.</p></content></subsection><subsection><num>(4)</num><content><p>The PRA must give the Treasury a report of each review.</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection><num>(6)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection><num>(7)</num><content><p>If (because any ring-fenced body is not a PRA-authorised person) section 142H has the effect of requiring the FCA to make ring-fencing rules, subsections (1) to (6) apply to the FCA as they apply to the PRA.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Group restructuring powers</i></heading><section><num>142K</num><heading>Cases in which group restructuring powers become exercisable</heading><subsection><num>(1)</num><content><p>The appropriate regulator may exercise the group restructuring powers only if it is satisfied that one or more of Conditions A to D is met in relation to a ring-fenced body that is a member of a group.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the carrying on of core activities by the ring-fenced body is being adversely affected by the acts or omissions of other members of its group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that in carrying on its business the ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>is unable to take decisions independently of other members of its group, or</p></content></level><level class="para1"><num>(b)</num><content><p>depends on resources which are provided by a member of its group and which would cease to be available in the event of the insolvency of the other member.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition C is that in the event of the insolvency of one or more other members of its group the ring-fenced body would be unable to continue to carry on the core activities carried on by it.</p></content></subsection><subsection><num>(5)</num><intro><p>Condition D is that the ring-fenced body or another member of its group has engaged, or is engaged, in conduct which is having, or would apart from this section be likely to have, an adverse effect on the advancement by the appropriate regulator—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the PRA, of the objective in section 2B(3)(c), or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the FCA, of the continuity objective.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The appropriate regulator may not exercise the group restructuring powers in relation to any person if—</p></intro><level class="para1"><num>(a)</num><content><p>either regulator has previously exercised the group restructuring powers in relation to that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the decision notice in relation to the current exercise is given before the second anniversary of the day on which the decision notice in relation to the previous exercise was given.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section and sections 142L to 142Q “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the ring-fenced body is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where it is not, the FCA.</p></content></level></subsection></section><section><num>142L</num><heading>Group restructuring powers</heading><subsection><num>(1)</num><content><p>In this Part “<term refersTo="#term-the-group-restructuring-powers">the group restructuring powers</term>” means one or more of the powers conferred by this section.</p></content></subsection><subsection><num>(2)</num><intro><p>Where the appropriate regulator is the PRA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to impose a requirement on the PRA-authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to direct the FCA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the appropriate regulator is the FCA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to direct the PRA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(4)</num><intro><p>A parent undertaking of a ring-fenced body by reference to which the group restructuring powers are exercisable is for the purposes of this Part a “qualifying parent undertaking” if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a body corporate which is incorporated in the United Kingdom and has a place of business in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The steps that the ring-fenced body may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of specified property or rights to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>otherwise to make arrangements discharging the ring-fenced body from specified liabilities.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The steps that another authorised person or a qualifying parent undertaking may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of any shares in, or securities of, the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to dispose of any interest in any other body corporate that is a member of the ring-fenced body's group to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>to dispose of other specified property or rights to an outside person;</p></content></level><level class="para1"><num>(d)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the authorised person or qualifying parent undertaking to an outside person.</p></content></level></subsection><subsection><num>(7)</num><content><p>In subsections (5) and (6) “<term refersTo="#term-outside-person">outside person</term>” means a person who, after the implementation of the disposal or scheme in question, will not be a member of the group of the ring-fenced body by reference to which the powers are exercised (whether or not that body is to remain a ring-fenced body after the implementation of the disposal or scheme in question).</p></content></subsection><subsection><num>(8)</num><content><p>It is immaterial whether a requirement to be imposed on an authorised person by the appropriate regulator, or by the other regulator at the direction of the appropriate regulator, is one that the regulator imposing it could impose under section 55L or 55M.</p></content></subsection></section><section><num>142M</num><heading>Procedure: preliminary notices</heading><subsection><num>(1)</num><content><p>If the appropriate regulator proposes to exercise the group restructuring powers in relation to any authorised person or qualifying parent undertaking (“<term refersTo="#term-the-person-concerned">the person concerned</term>”), the regulator must give each of the relevant persons a notice (a “preliminary notice”).</p></content></subsection><subsection><num>(2)</num><intro><p>The preliminary notice must—</p></intro><level class="para1"><num>(a)</num><content><p>state that it is a preliminary notice,</p></content></level><level class="para1"><num>(b)</num><content><p>state that the regulator proposes to exercise the group restructuring powers,</p></content></level><level class="para1"><num>(c)</num><content><p>state the action which the regulator proposes to take in the exercise of those powers,</p></content></level><level class="para1"><num>(d)</num><content><p>be in writing, and</p></content></level><level class="para1"><num>(e)</num><content><p>give reasons for the proposed action (which must include the regulator's reasons for being satisfied as to the matters mentioned in section 142K(1)).</p></content></level></subsection><subsection><num>(3)</num><content><p>The appropriate regulator must give a copy of the preliminary notice to the Treasury.</p></content></subsection><subsection><num>(4)</num><content><p>The preliminary notice must specify a reasonable period (which may not be less than 14 days) within which any of the relevant persons may make representations to the regulator.</p></content></subsection><subsection><num>(5)</num><intro><p>The relevant persons are—</p></intro><level class="para1"><num>(a)</num><content><p>the person concerned,</p></content></level><level class="para1"><num>(b)</num><content><p>the ring-fenced body, if not the person concerned, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other authorised person who will, in the opinion of the appropriate regulator, be significantly affected by the exercise of the group restructuring powers.</p></content></level></subsection></section><section><num>142N</num><heading>Procedure: warning notice and decision notice</heading><subsection><num>(1)</num><intro><p>If the appropriate regulator has given a preliminary notice under section 142M, it must either—</p></intro><level class="para1"><num>(a)</num><content><p>if, having considered any representations made by any of the relevant persons, it still proposes to exercise the group restructuring powers, give each of the relevant persons a warning notice during the warning notice period, or</p></content></level><level class="para1"><num>(b)</num><content><p>before the end of the warning notice period, give each of them a written notice stating that it has decided not to exercise the powers and give a copy of that notice to the Treasury.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The “warning notice period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning 3 months after the end of the period specified under section 142M(4) as that within which any representations must be made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending 6 months after the end of that period.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before giving a warning notice under subsection (1)(a), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>give the Treasury a draft of the notice,</p></content></level><level class="para1"><num>(b)</num><content><p>provide the Treasury with any information that the Treasury may require in order to decide whether to give their consent, and</p></content></level><level class="para1"><num>(c)</num><content><p>obtain the consent of the Treasury.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The action specified in the warning notice may be different from that specified in the preliminary notice if—</p></intro><level class="para1"><num>(a)</num><content><p>the appropriate regulator considers that different action is appropriate as a result of any change in circumstances since the preliminary notice was given, or</p></content></level><level class="para1"><num>(b)</num><content><p>the person concerned consents to the change.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulator must, in particular, have regard to anything that—</p></intro><level class="para1"><num>(a)</num><content><p>has been done by the person concerned since the giving of the preliminary notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>represents action that would have been required in pursuance of the proposals in that notice.</p></content></level></subsection><subsection><num>(6)</num><content><p>If the regulator decides to exercise the group restructuring powers it must give each of the relevant persons a decision notice.</p></content></subsection><subsection><num>(7)</num><intro><p>The decision notice must specify the date or dates by which each of the following must be completed—</p></intro><level class="para1"><num>(a)</num><content><p>any disposal of shares, securities or other property that is required by the notice;</p></content></level><level class="para1"><num>(b)</num><content><p>any transfer of liabilities for which the notice requires arrangements to be made.</p></content></level></subsection><subsection><num>(8)</num><content><p>The giving of consent for the purpose of subsection (4)(b) does not affect any right to refer to the Tribunal the matter to which any decision notice resulting from the warning notice relates.</p></content></subsection><subsection><num>(9)</num><content><p>“<term refersTo="#term-the-relevant-persons">The relevant persons</term>” has the same meaning as in section 142M.</p></content></subsection></section><section><num>142O</num><heading>References to Tribunal</heading><subsection><num>(1)</num><intro><p>A notified person who is aggrieved by—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition by either regulator of a requirement as a result of section 142L(2)(a) or (b) or (3)(a) or (b),</p></content></level><level class="para1"><num>(b)</num><content><p>a requirement to be imposed as a result of the giving by one regulator to the other of a direction under section 142L(2)(c) or (3)(c), or</p></content></level><level class="para1"><num>(c)</num><content><p>the giving by either regulator of a direction under section 142L(2)(d) or (3)(d),</p></content></level><wrapUp><p>may refer the matter to the Tribunal.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-notified-person">Notified person</term>” means a person to whom a decision notice under section 142N(6) was given or ought to have been given.</p></content></subsection></section><section><num>142P</num><heading>Subsequent variation of requirement or direction</heading><subsection><num>(1)</num><intro><p>A regulator may at any time with the consent of the person concerned vary—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The person concerned may at any time apply to the appropriate regulator for the variation of—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(3)</num><content><p>Sections 55U, 55V, 55X and 55Z3 apply to an application under subsection (2) as they apply to an application for the variation of a requirement imposed by the appropriate regulator under section 55L or 55M.</p></content></subsection></section><section><num>142Q</num><heading>Consultation <abbr title="et cetera" xml:lang="la">etc.</abbr> between regulators</heading><subsection><num>(1)</num><intro><p>Where a notice under section 142M or a warning notice or decision notice under section 142N relates to a requirement to be imposed in pursuance of a direction to be given as a result of section 142L(2)(c) or (3)(c), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator before giving the notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>give a copy of the notice to the other regulator.</p></content></level></subsection><subsection><num>(2)</num><content><p>The appropriate regulator must consult the other regulator before varying under section 142P a direction given as a result of section 142L(2)(c) or (3)(c).</p></content></subsection><subsection><num>(3)</num><content><p>Directions given by the FCA as a result of section 142L(3)(c) are subject to any directions given to the FCA under section 3I.</p></content></subsection></section><section><num>142R</num><heading>Relationship with regulators' powers under Parts 4A and 12A</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body which is a member of a mixed group, and</p></content></level><level class="para1"><num>(b)</num><content><p>a parent undertaking of such a ring-fenced body.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may not exercise its general powers in relation to the ring-fenced body or parent undertaking so as to achieve either of the results in subsection (3).</p></content></subsection><subsection><num>(3)</num><intro><p>Those results are—</p></intro><level class="para1"><num>(a)</num><content><p>that no existing group member is a parent undertaking of the ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>that the ring-fenced body is not a member of a mixed group.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(a) “<term refersTo="#term-existing-group-member">existing group member</term>” means a person who is a member of the ring-fenced body's group at the time when the requirement is imposed or the direction given.</p></content></subsection><subsection><num>(5)</num><content><p>Except as provided by subsections (1) to (4), the provisions of sections 142K to 142Q do not limit the general powers of either regulator.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section, a regulator's “general powers” are its powers under the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 55L or 55M (imposition of requirements in connection with Part 4A permission);</p></content></level><level class="para1"><num>(b)</num><content><p>section 192C (power to direct qualifying parent undertaking).</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of this section, a ring-fenced body is a member of a mixed group if a member of the ring-fenced body's group carries on an excluded activity.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Failure of parent undertaking to comply with direction</i></heading><section><num>142S</num><heading>Power to impose penalty or issue censure</heading><subsection><num>(1)</num><content><p>This section applies if a regulator is satisfied that a person who is or has been a qualifying parent undertaking (“P”) has contravened a requirement of a direction given to P by that regulator as a result of section 142L(2)(d) or (3)(d).</p></content></subsection><subsection><num>(2)</num><intro><p>The regulator may impose a penalty of such amount as it considers appropriate on—</p></intro><level class="para1"><num>(a)</num><content><p>P, or</p></content></level><level class="para1"><num>(b)</num><content><p>any person who was knowingly concerned in the contravention.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulator may, instead of imposing a penalty on a person, publish a statement censuring the person.</p></content></subsection><subsection><num>(4)</num><content><p>The regulator may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 142T.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-limitation-period">The limitation period</term>” means the period of 3 years beginning with the first day on which the regulator knew of the contravention.</p></content></subsection><subsection><num>(6)</num><content><p>For this purpose a regulator is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.</p></content></subsection><subsection><num>(7)</num><content><p>The requirements that a regulator may be required to impose as a result of a direction under section 142L(2)(c) or (3)(c) include requirements that the regulator would not but for the direction have power to impose.</p></content></subsection></section><section><num>142T</num><heading>Procedure and right to refer to Tribunal</heading><subsection><num>(1)</num><content><p>If a regulator proposes to take action against a person under section 142S, it must give the person a warning notice.</p></content></subsection><subsection><num>(2)</num><content><p>A warning notice about a proposal to impose a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(3)</num><content><p>A warning notice about a proposal to publish a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(4)</num><content><p>If the regulator decides to take action against a person under section 142S, it must give the person a decision notice.</p></content></subsection><subsection><num>(5)</num><content><p>A decision notice about the imposition of a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(6)</num><content><p>A decision notice about the publication of a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(7)</num><content><p>If the regulator decides to take action against a person under section 142S, the person may refer the matter to the Tribunal.</p></content></subsection></section><section><num>142U</num><heading>Duty on publication of statement</heading><intro><p>After a statement under section 142S(3) is published, the regulator must send a copy of the statement to—</p></intro><level class="para1"><num>(a)</num><content><p>the person in respect of whom it is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>any person to whom a copy of the decision notice was given under section 393(4).</p></content></level></section><section><num>142V</num><heading>Imposition of penalties under section 142S: statement of policy</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition of penalties under section 142S, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of penalties under that section.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A regulator's policy in determining what the amount of a penalty should be must include having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the seriousness of the contravention,</p></content></level><level class="para1"><num>(b)</num><content><p>the extent to which the contravention was deliberate or reckless, and</p></content></level><level class="para1"><num>(c)</num><content><p>whether the person on whom the penalty is to be imposed is an individual.</p></content></level></subsection><subsection><num>(3)</num><content><p>A regulator may at any time alter or replace a statement issued under this section.</p></content></subsection><subsection><num>(4)</num><content><p>If a statement issued under this section is altered or replaced, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(5)</num><content><p>In exercising, or deciding whether to exercise, a power under section 142S(2) in the case of any particular contravention, a regulator must have regard to any statement of policy published under this section and in force at a time when the contravention occurred.</p></content></subsection><subsection><num>(6)</num><content><p>A statement under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(7)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of the statement published under this section.</p></content></subsection><subsection><num>(8)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection><subsection><num>(9)</num><content><p>Section 192I applies in relation to a statement under this section as it applies in relation to a statement under section 192H.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Pension liabilities</i></heading><section><num>142W</num><heading>Pension liabilities</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations require a ring-fenced body to make arrangements for any one or more of the following purposes—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring that, except in prescribed cases, the ring-fenced body cannot become liable to meet, or contribute to the meeting of, pension liabilities which arise in connection with persons' service on or after a date specified in the regulations (“<term refersTo="#term-the-specified-date">the specified date</term>”) in any employment, other than service in an employment in respect of which the employer is a ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>ensuring that, except in prescribed cases, the default of a person other than another ring-fenced body would not result in the ring-fenced body becoming liable to meet, or contribute to the meeting of, pension liabilities arising in connection with persons' service in any employment before the specified date;</p></content></level><level class="para1"><num>(c)</num><content><p>to the extent that it is not possible to ensure the result mentioned in paragraph (a) or (b), minimising any potential liability falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The regulations may make provision enabling the trustees or managers of a relevant pension scheme in respect of which the employer or one of the employers is a ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>to transfer to another relevant pension scheme all or part of the pension liabilities arising in connection with persons' service before the specified date together with all or part of the assets of the scheme, or</p></content></level><level class="para1"><num>(b)</num><content><p>to divide the scheme into two or more sections in relation to which prescribed conditions are met.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The regulations may make provision—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a ring-fenced body to apply to the court in a case where the ring-fenced body has been unable to reach agreement with another person (“P”) about the making of arrangements with P on commercial terms for one or more of the purposes in subsection (1), and</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the court on such an application to order P to enter into arrangements with the ring-fenced body for those purposes on such terms as the court considers fair and reasonable in the circumstances.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The regulations must provide that any terms specified by the court by virtue of provision made under subsection (3)—</p></intro><level class="para1"><num>(a)</num><content><p>must be terms which, in the court's opinion, represent terms on which the arrangements might be entered into if they were being entered into for commercial reasons between willing parties dealing at arm's length, and</p></content></level><level class="para1"><num>(b)</num><content><p>may involve the payment of any sum by instalments.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulations may make other provision—</p></intro><level class="para1"><num>(a)</num><content><p>about the making by a ring-fenced body of arrangements for one or more of the purposes in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>about any transfer or division falling within subsection (2).</p></content></level></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require a ring-fenced body to cease to participate in a relevant pension scheme unless the scheme is divided into two or more sections in relation to which prescribed conditions are met;</p></content></level><level class="para1"><num>(b)</num><content><p>provide that assets or liabilities of a relevant pension scheme may not be transferred under the arrangements to another occupational pension scheme unless the other scheme meets prescribed conditions;</p></content></level><level class="para1"><num>(c)</num><content><p>require ring-fenced bodies to establish new occupational pension schemes in prescribed circumstances;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that any provision of a relevant pension scheme that might prevent the making of the arrangements, other than a provision requiring the consent of the trustees or managers of the scheme, is not to have effect in prescribed circumstances;</p></content></level><level class="para1"><num>(e)</num><content><p>make provision enabling the trustees or managers of a relevant pension scheme, with the consent of the employers in relation to the scheme, to modify the scheme by resolution for the purpose of enabling the arrangements to be made;</p></content></level><level class="para1"><num>(f)</num><content><p>require the trustees or managers of a relevant pension scheme or any employer in relation to a relevant pension scheme to give notice of prescribed matters to prescribed persons;</p></content></level><level class="para1"><num>(g)</num><content><p>make provision enabling the court, on an application made in accordance with the regulations by a ring-fenced body, if it appears to the court that the trustees or managers of a relevant pension scheme, or an employer in relation to such a scheme, have unreasonably refused their consent to any step that would enable the arrangements to be made, to order that the step may be taken without that consent;</p></content></level><level class="para1"><num>(h)</num><content><p>confer exemption from any provision of the regulations in prescribed cases;</p></content></level><level class="para1"><num>(i)</num><content><p>confer functions on the PRA;</p></content></level><level class="para1"><num>(j)</num><content><p>provide that a ring-fenced body which contravenes a prescribed requirement of the regulations is to be taken to have contravened a requirement imposed by the PRA under this Act;</p></content></level><level class="para1"><num>(k)</num><content><p>modify, exclude or apply (with or without modification) any primary or subordinate legislation.</p></content></level></subsection><subsection><num>(7)</num><intro><p>The Treasury may by regulations require an authorised person who will or may be a ring-fenced body or an authorised person who will or may be a member of a ring-fenced body's group to do all it can to obtain from the Pensions Regulator a clearance statement in relation to any arrangements to be made for the purpose of complying with—</p></intro><level class="para1"><num>(a)</num><content><p>regulations under this section, or</p></content></level><level class="para1"><num>(b)</num><content><p>any provision made by or under this Part (other than this section) when the provision comes into force.</p></content></level></subsection><subsection><num>(8)</num><intro><p>A “clearance statement” is a statement issued by the Pensions Regulator under any of the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 42 of the Pensions Act 2004 (clearance statements relating to contribution notice under section 38);</p></content></level><level class="para1"><num>(b)</num><content><p>section 46 of that Act (clearance statements relating to financial support directions);</p></content></level><level class="para1"><num>(c)</num><content><p>Article 38 of the Pensions (Northern Ireland) Order 2005 (clearance statements relating to contribution notices under article 34);</p></content></level><level class="para1"><num>(d)</num><content><p>Article 42 of that Order (clearance statements relating to financial support directions).</p></content></level></subsection><subsection><num>(9)</num><content><p>In relation to a ring-fenced body that is not a PRA-authorised person, references in subsection (6) to the PRA are to be read as references to the FCA.</p></content></subsection><subsection><num>(10)</num><content><p>Regulations under this section may not require ring-fenced bodies to achieve the results mentioned in subsection (1) before 1 January 2026, but this does not prevent the regulations requiring steps to be taken at any time after the regulations come into force.</p></content></subsection></section><section><num>142X</num><heading>Further interpretative provisions for section 142W</heading><subsection><num>(1)</num><content><p>The following provisions have effect for the interpretation of section 142W and this section.</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-relevant-pension-scheme">Relevant pension scheme</term>” means an occupational pension scheme that is not a money purchase scheme.</p></content></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-occupational-pension-scheme">Occupational pension scheme</term>” has the meaning given in section 1 of the Pension Schemes Act 1993 or section 1 of the Pension Schemes (Northern Ireland) Act 1993 and, in relation to such a scheme, “<term refersTo="#term-member">member</term>” and “<term refersTo="#term-trustees-or-managers">trustees or managers</term>” have the same meaning as in Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995.</p></content></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-money-purchase-scheme">Money purchase scheme</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(5)</num><intro><p>“<term refersTo="#term-employer">Employer</term>”, in relation to a relevant pension scheme, means—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is for the purposes of Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995 an employer in relation to the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other person who has or may have any liability under the scheme.</p></content></level></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-employment">Employment</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-pension-liabilities">Pension liabilities</term>” means liabilities attributable to or associated with the provision under a relevant pension scheme of pensions or other benefits.</p></content></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-the-court">The court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to England and Wales or Northern Ireland, the High Court, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to Scotland, the Court of Session.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Loss-absorbency requirements</i></heading><section><num>142Y</num><heading>Power of Treasury in relation to loss-absorbency requirements</heading><subsection><num>(1)</num><intro><p>The Treasury may by order make provision about the exercise by either regulator of its functions under this Act, so far as they are (apart from the order) capable of being exercised in relation to a relevant body so as to require the relevant body—</p></intro><level class="para1"><num>(a)</num><content><p>to issue any debt instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>to ensure that any part of the relevant body's debt consists of debt owed by it in respect of debt instruments, or debt instruments of a particular kind.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A “relevant body” is—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body,</p></content></level><level class="para1"><num>(b)</num><content><p>any other body corporate that has a Part 4A permission relating to the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(c)</num><content><p>a body corporate that is a member of the group of a body falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a bond,</p></content></level><level class="para1"><num>(b)</num><content><p>any other instrument creating or acknowledging a debt, or</p></content></level><level class="para1"><num>(c)</num><content><p>an instrument giving rights to acquire a debt instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require the regulator to exercise its functions so as to require relevant bodies to do either or both of the things mentioned in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>limit the extent to which the regulator may require a relevant body's debt to consist of debt owed in respect of debt instruments or of debt instruments of a kind specified in the order;</p></content></level><level class="para1"><num>(c)</num><intro><p>require the regulator—</p></intro><level class="para2"><num>(i)</num><content><p>to make, or not to make, provision by reference to specified matters, or</p></content></level><level class="para2"><num>(ii)</num><content><p>to have regard, or not to have regard, to specified matters;</p></content></level></level><level class="para1"><num>(d)</num><content><p>require the regulator to consult, or obtain the consent of, the Treasury before making rules of a specified description or exercising any other specified function;</p></content></level><level class="para1"><num>(e)</num><content><p>impose on the regulator in connection with the exercise of a specified function procedural requirements which would not otherwise apply to the exercise of the function;</p></content></level><level class="para1"><num>(f)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>General</i></heading><section><num>142Z</num><heading>Affirmative procedure in relation to certain orders under Part 9B</heading><subsection><num>(1)</num><intro><p>This section applies to an order containing provision made under any of the following provisions of this Part—</p></intro><level class="para1"><num>(a)</num><content><p>section 142A(2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>section 142B(2) or (5);</p></content></level><level class="para1"><num>(c)</num><content><p>section 142C;</p></content></level><level class="para1"><num>(d)</num><content><p>section 142D(2) or (4);</p></content></level><level class="para1"><num>(e)</num><content><p>section 142E;</p></content></level><level class="para1"><num>(f)</num><content><p>section 142I;</p></content></level><level class="para1"><num>(g)</num><content><p>section 142Y.</p></content></level></subsection><subsection><num>(2)</num><intro><p>No order to which this section applies may be made unless—</p></intro><level class="para1"><num>(a)</num><content><p>a draft of the order has been laid before Parliament and approved by a resolution of each House, or</p></content></level><level class="para1"><num>(b)</num><content><p>subsection (4) applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (4) applies if an order under 142D(4) or 142E contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.</p></content></subsection><subsection><num>(4)</num><intro><p>Where this subsection applies the order—</p></intro><level class="para1"><num>(a)</num><content><p>must be laid before Parliament after being made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).</p></content></level></subsection><subsection><num>(5)</num><content><p>The “relevant period” is a period of 28 days beginning with the day on which the order is made.</p></content></subsection><subsection><num>(6)</num><content><p>In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than 4 days.</p></content></subsection></section><section><num>142Z1</num><heading>Interpretation of Part 9B</heading><subsection><num>(1)</num><content><p>This section has effect for the interpretation of this Part.</p></content></subsection><subsection><num>(2)</num><intro><p>Any reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(b)</num><content><p>the regulated activity of dealing in investments as principal,</p></content></level><wrapUp><p>is to be read in accordance with Schedule 2, taken with any order under section 22.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>Any reference to the group restructuring powers is to be read in accordance with section 142L(1).</p></content></subsection><subsection><num>(4)</num><content><p>Any reference to a qualifying parent undertaking is to be read in accordance with section 142L(4).</p></content></subsection></section></hcontainer></part></quotedStructure></mod></p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p><mod>In section 133 of FSMA 2000 (proceedings before Tribunal), in subsection (7A), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>a decision to take action under section 142S;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-4-3"><num>(3)</num><content><p><mod>In section 391 of FSMA 2000 (publication), in subsection (1ZB), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>section 142N;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-4-4"><num>(4)</num><intro><p>In section 392 of FSMA 2000 (application of sections 393 and 394)—</p></intro><level class="para1" eId="section-4-4-a"><num>(a)</num><content><p><mod>in paragraph (a), after “131H(1),” insert <quotedText>“
142T(1),
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-4-4-b"><num>(b)</num><content><p><mod>in paragraph (b), after “131H(4),” insert <quotedText>“
142T(4),
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-4-5"><num>(5)</num><intro><p>In section 417 of FSMA 2000 (definitions), in subsection (1)—</p></intro><level class="para1" eId="section-4-5-a"><num>(a)</num><content><p><mod>after the definition of “control of information rules” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-core-activities">core activities</term>” has the meaning given in section 142B;</p><p>“<term refersTo="#term-core-services">core services</term>” has the meaning given in section 142C;</p></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-4-5-b"><num>(b)</num><content><p><mod>after the definition of “ESMA” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-excluded-activities">excluded activities</term>” has the meaning given in section 142D;</p></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-4-5-c"><num>(c)</num><content><p><mod>after the definition of “regulator” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” has the meaning given in section 142A;</p><p>“<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>” has the meaning given in section 142H;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection><subsection eId="section-4-6"><num>(6)</num><content><p><mod>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)(c)(i), after “138N,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection><subsection eId="section-4-7"><num>(7)</num><content><p><mod>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), in paragraph 16(3)(c)(i), after “69,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4-1"><num>(1)</num><content><p><mod>After Part 9A of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><part><num><b>PART 9B</b></num><heading>Ring-fencing</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Introductory</i></heading><section><num>142A</num><heading>“Ring-fenced body”</heading><subsection><num>(1)</num><content><p>In this Act “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which carries on one or more core activities (see section 142B) in relation to which it has a Part 4A permission.</p></content></subsection><subsection><num>(2)</num><intro><p>But “<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” does not include—</p></intro><level class="para1"><num>(a)</num><content><p>a building society within the meaning of the Building Societies Act 1986, or</p></content></level><level class="para1"><num>(b)</num><content><p>a <abbr class="acronym" title="United Kingdom">UK</abbr> institution of a class exempted by order made by the Treasury.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under subsection (2)(b) may be made in relation to a class of <abbr class="acronym" title="United Kingdom">UK</abbr> institution only if the Treasury are of the opinion that the exemption conferred by the order would not be likely to have a significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>Subject to that, in deciding whether and, if so, how to exercise their powers under subsection (2)(b), the Treasury must have regard to the desirability of minimising any adverse effect that the ring-fencing provisions might be expected to have on competition in the market for services provided in the course of carrying on core activities, including any adverse effect on the ease with which new entrants can enter the market.</p></content></subsection><subsection><num>(5)</num><content><p>In subsection (4) “<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection><subsection><num>(6)</num><content><p>An order under subsection (2)(b) may provide for the exemption to be subject to conditions.</p></content></subsection><subsection><num>(7)</num><content><p>In this section “<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means a body corporate incorporated in the United Kingdom.</p></content></subsection></section><section><num>142B</num><heading>Core activities</heading><subsection><num>(1)</num><content><p>References in this Act to a “core activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of accepting deposits (whether carried on in the United Kingdom or elsewhere) is a core activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that it is not necessary for either of the following purposes that the regulated activity of accepting deposits should be a core activity when carried on in the specified circumstances.</p></content></subsection><subsection><num>(4)</num><intro><p>Those purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>to secure an appropriate degree of protection for the depositors concerned, or</p></content></level><level class="para1"><num>(b)</num><content><p>to protect the continuity of the provision in the United Kingdom of services provided in the course of carrying on the regulated activity of accepting deposits.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury may by order provide for a regulated activity other than that of accepting deposits to be a core activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(6)</num><intro><p>An order under subsection (5) may be made only if the Treasury are of the opinion—</p></intro><level class="para1"><num>(a)</num><content><p>that an interruption of the provision of services provided in the United Kingdom in the carrying on of the regulated activity concerned could adversely affect the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system or of a significant part of that system, and</p></content></level><level class="para1"><num>(b)</num><content><p>that the continuity of the provision of those services can more effectively be protected by treating the activity as a core activity.</p></content></level></subsection></section><section><num>142C</num><heading>Core services</heading><subsection><num>(1)</num><content><p>References in this Act to “core services” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><intro><p>The following are core services—</p></intro><level class="para1"><num>(a)</num><content><p>facilities for the accepting of deposits or other payments into an account which is provided in the course of carrying on the core activity of accepting deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>facilities for withdrawing money or making payments from such an account;</p></content></level><level class="para1"><num>(c)</num><content><p>overdraft facilities in connection with such an account.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Treasury may by order provide that any other specified services provided in the course of carrying on the core activity of accepting deposits are also core services.</p></content></subsection><subsection><num>(4)</num><content><p>If an order under section 142B(5) provides for an activity other than that of accepting deposits to be a core activity, the Treasury must by order provide that specified services provided in the course of carrying on that activity are core services.</p></content></subsection><subsection><num>(5)</num><content><p>The services specified by order under subsection (4) must be services in relation to which the Treasury are of the opinion mentioned in section 142B(6)(a).</p></content></subsection></section><section><num>142D</num><heading>Excluded activities</heading><subsection><num>(1)</num><content><p>References in this Act to an “excluded activity” are to be read in accordance with this section.</p></content></subsection><subsection><num>(2)</num><content><p>The regulated activity of dealing in investments as principal (whether carried on in the United Kingdom or elsewhere) is an excluded activity unless it is carried on in circumstances specified by the Treasury by order.</p></content></subsection><subsection><num>(3)</num><content><p>An order under subsection (2) may be made only if the Treasury are of the opinion that allowing ring-fenced bodies to deal in investments as principal in the specified circumstances would not be likely to result in any significant adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><content><p>The Treasury may by order provide for an activity other than the regulated activity of dealing in investments as principal to be an excluded activity, either generally or when carried on in circumstances specified in the order.</p></content></subsection><subsection><num>(5)</num><intro><p>An activity to which an order under subsection (4) relates—</p></intro><level class="para1"><num>(a)</num><content><p>need not be a regulated activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>may be an activity carried on in the United Kingdom or elsewhere.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In deciding whether to make an order under subsection (4) in relation to any activity, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it carried on the activity concerned, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the carrying on of that activity by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(7)</num><content><p>An order under subsection (4) may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection></section><section><num>142E</num><heading>Power of Treasury to impose prohibitions</heading><subsection><num>(1)</num><intro><p>The Treasury may by order prohibit ring-fenced bodies from—</p></intro><level class="para1"><num>(a)</num><content><p>entering into transactions of a specified kind or with persons falling within a specified class;</p></content></level><level class="para1"><num>(b)</num><content><p>establishing or maintaining a branch in a specified country or territory;</p></content></level><level class="para1"><num>(c)</num><content><p>holding in specified circumstances shares or voting power in companies of a specified description.</p></content></level></subsection><subsection><num>(2)</num><intro><p>In deciding whether to make an order under this section imposing a prohibition, the Treasury must—</p></intro><level class="para1"><num>(a)</num><content><p>have regard to the risks to which a ring-fenced body would be exposed if it did the thing to which the prohibition relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>consider whether the doing of that thing by a ring-fenced body would make it more likely that the failure of the body would have an adverse effect on the continuity of the provision in the United Kingdom of core services.</p></content></level></subsection><subsection><num>(3)</num><content><p>An order under this section may be made only if the Treasury are of the opinion that the making of the order is necessary or expedient for the purpose of protecting the continuity of the provision in the United Kingdom of core services.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>provide for any prohibition to be subject to exemptions specified in the order;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for any exemption to be subject to conditions specified in the order.</p></content></level></subsection></section><section><num>142F</num><heading>Orders under section 142A, 142B, 142D or 142E</heading><subsection><num>(1)</num><intro><p>An order made under section 142A, 142B, 142D or 142E may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise or require the making of rules by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(b)</num><content><p>authorise the making of other instruments by a regulator for the purposes of, or for purposes connected with, any provision of the order;</p></content></level><level class="para1"><num>(c)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(2)</num><intro><p>If the order confers powers on a regulator or authorises or requires the making of rules or other instruments by a regulator, the order may also—</p></intro><level class="para1"><num>(a)</num><content><p>impose conditions on the exercise of any power conferred on the regulator;</p></content></level><level class="para1"><num>(b)</num><content><p>impose consultation requirements on the regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>make the exercise of a power by the regulator subject to the consent of the Treasury.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</i></heading><section><num>142G</num><heading>Ring-fenced bodies not to carry on excluded activities or contravene prohibitions</heading><subsection><num>(1)</num><intro><p>A ring-fenced body which—</p></intro><level class="para1"><num>(a)</num><content><p>carries on an excluded activity or purports to do so, or</p></content></level><level class="para1"><num>(b)</num><content><p>contravenes any provision of an order under section 142E,</p></content></level><wrapUp><p>is to be taken to have contravened a requirement imposed on the body by the appropriate regulator under this Act.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>The contravention does not—</p></intro><level class="para1"><num>(a)</num><content><p>make a person guilty of an offence;</p></content></level><level class="para1"><num>(b)</num><content><p>make a transaction void or unenforceable;</p></content></level><level class="para1"><num>(c)</num><content><p>(subject to subsection (3)) give rise to any right of action for breach of statutory duty.</p></content></level></subsection><subsection><num>(3)</num><content><p>In such cases as the Treasury may specify by order, the contravention is actionable at the suit of a person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a ring-fenced body which is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other ring-fenced body, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Ring-fencing rules</i></heading><section><num>142H</num><heading>Ring-fencing rules</heading><subsection><num>(1)</num><intro><p>In the exercise of its power to make general rules, the appropriate regulator must in particular make rules—</p></intro><level class="para1"><num>(a)</num><content><p>requiring a ring-fenced body to make arrangements to ensure the effective provision to the ring-fenced body of services and facilities that it requires in relation to the carrying on of a core activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>making provision for the group ring-fencing purposes applying to ring-fenced bodies and to authorised persons who are members of a ring-fenced body's group.</p></content></level></subsection><subsection><num>(2)</num><content><p>Section 142E(1)(c) does not affect the power of the appropriate regulator to make general rules imposing restrictions on the extent of the shares or voting power that a ring-fenced body may hold in another company, except where a restriction on the extent of the shares or voting power that the ring-fenced body may hold in the company is imposed by order under section 142E(1)(c).</p></content></subsection><subsection><num>(3)</num><content><p>General rules that are required by this section or make provision falling within subsection (2) are in this Act referred to as “<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>”.</p></content></subsection><subsection><num>(4)</num><intro><p>The “group ring-fencing purposes” are—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring as far as reasonably practicable that the carrying on of core activities by a ring-fenced body is not adversely affected by the acts or omissions of other members of its group;</p></content></level><level class="para1"><num>(b)</num><intro><p>ensuring as far as reasonably practicable that in carrying on its business a ring-fenced body—</p></intro><level class="para2"><num>(i)</num><content><p>is able to take decisions independently of other members of its group, and</p></content></level><level class="para2"><num>(ii)</num><content><p>does not depend on resources which are provided by a member of its group and which would cease to be available to the ring-fenced body in the event of the insolvency of the other member;</p></content></level></level><level class="para1"><num>(c)</num><content><p>ensuring as far as reasonably practicable that the ring-fenced body would be able to continue to carry on core activities in the event of the insolvency of one or more other members of its group.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Ring-fencing rules made for the group ring-fencing purposes must include—</p></intro><level class="para1"><num>(a)</num><content><p>provision restricting the power of a ring-fenced body to enter into contracts with other members of its group otherwise than on arm's length terms;</p></content></level><level class="para1"><num>(b)</num><content><p>provision restricting the payments that a ring-fenced body may make (by way of dividend or otherwise) to other members of its group;</p></content></level><level class="para1"><num>(c)</num><content><p>provision requiring the disclosure to the appropriate regulator of information relating to transactions between a ring-fenced body and other members of its group;</p></content></level><level class="para1"><num>(d)</num><intro><p>provision requiring a ring-fenced body to ensure that its board of directors (or if there is no such board, the equivalent management body) includes to a specified extent—</p></intro><level class="para2"><num>(i)</num><content><p>members who are treated by the rules as being independent of other members of the ring-fenced body's group,</p></content></level><level class="para2"><num>(ii)</num><content><p>members who are treated by the rules as being independent of the ring-fenced body itself, and</p></content></level><level class="para2"><num>(iii)</num><content><p>non-executive members;</p></content></level></level><level class="para1"><num>(e)</num><content><p>provision requiring a ring-fenced body to act in accordance with a remuneration policy meeting specified requirements;</p></content></level><level class="para1"><num>(f)</num><content><p>provision requiring a ring-fenced body to act in accordance with a human resources policy meeting specified requirements;</p></content></level><level class="para1"><num>(g)</num><content><p>provision requiring arrangements made by the ring-fenced body for the identification, monitoring and management of risk to meet specified requirements;</p></content></level><level class="para1"><num>(h)</num><content><p>such other provision as the appropriate regulator considers necessary or expedient for any of the purposes in subsection (4).</p></content></level></subsection><subsection><num>(6)</num><content><p>The reference in subsection (5)(e) to a remuneration policy is a reference to a policy about the remuneration of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(7)</num><content><p>The reference in subsection (5)(f) to a human resources policy is a reference to a policy about the appointment and management of officers, employees and other persons who (in each case) are of a specified description.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other authorised person, the FCA;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-shares">shares</term>” has the meaning given in section 422;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified">specified</term>” means specified in the rules;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-voting-power">voting power</term>” has the meaning given in section 422.</p></content></hcontainer></subsection></section><section><num>142I</num><heading>Powers of Treasury in relation to ring-fencing rules</heading><subsection><num>(1)</num><intro><p>The Treasury may by order require the appropriate regulator, as defined in section 142H(8), to include (or not to include) in ring-fencing rules specified provision relating to—</p></intro><level class="para1"><num>(a)</num><content><p>any of the matters mentioned in section 142H(5)(a) to (g), or</p></content></level><level class="para1"><num>(b)</num><content><p>any other specified matter.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The power to make an order under this section is exercisable only if the Treasury consider it necessary or expedient to do so—</p></intro><level class="para1"><num>(a)</num><content><p>for any of the group ring-fencing purposes as defined in section 142H(4), or</p></content></level><level class="para1"><num>(b)</num><content><p>otherwise for securing the independence of ring-fenced bodies from other members of their groups.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section><section><num>142J</num><heading>Review of ring-fencing rules <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>The PRA must carry out reviews of its ring-fencing rules and of any rules made by it under section 192JA (rules applying to parent undertakings of ring-fenced bodies).</p></content></subsection><subsection><num>(2)</num><content><p>The first review must be completed before the end of the period of 5 years beginning with the day on which the first ring-fencing rules come into force.</p></content></subsection><subsection><num>(3)</num><content><p>Subsequent reviews must be completed before the end of the period of 5 years beginning with the day on which the previous review was completed.</p></content></subsection><subsection><num>(4)</num><content><p>The PRA must give the Treasury a report of each review.</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection><num>(6)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection><num>(7)</num><content><p>If (because any ring-fenced body is not a PRA-authorised person) section 142H has the effect of requiring the FCA to make ring-fencing rules, subsections (1) to (6) apply to the FCA as they apply to the PRA.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Group restructuring powers</i></heading><section><num>142K</num><heading>Cases in which group restructuring powers become exercisable</heading><subsection><num>(1)</num><content><p>The appropriate regulator may exercise the group restructuring powers only if it is satisfied that one or more of Conditions A to D is met in relation to a ring-fenced body that is a member of a group.</p></content></subsection><subsection><num>(2)</num><content><p>Condition A is that the carrying on of core activities by the ring-fenced body is being adversely affected by the acts or omissions of other members of its group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that in carrying on its business the ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>is unable to take decisions independently of other members of its group, or</p></content></level><level class="para1"><num>(b)</num><content><p>depends on resources which are provided by a member of its group and which would cease to be available in the event of the insolvency of the other member.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition C is that in the event of the insolvency of one or more other members of its group the ring-fenced body would be unable to continue to carry on the core activities carried on by it.</p></content></subsection><subsection><num>(5)</num><intro><p>Condition D is that the ring-fenced body or another member of its group has engaged, or is engaged, in conduct which is having, or would apart from this section be likely to have, an adverse effect on the advancement by the appropriate regulator—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the PRA, of the objective in section 2B(3)(c), or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the FCA, of the continuity objective.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The appropriate regulator may not exercise the group restructuring powers in relation to any person if—</p></intro><level class="para1"><num>(a)</num><content><p>either regulator has previously exercised the group restructuring powers in relation to that person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the decision notice in relation to the current exercise is given before the second anniversary of the day on which the decision notice in relation to the previous exercise was given.</p></content></level></subsection><subsection><num>(7)</num><intro><p>In this section and sections 142L to 142Q “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the ring-fenced body is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where it is not, the FCA.</p></content></level></subsection></section><section><num>142L</num><heading>Group restructuring powers</heading><subsection><num>(1)</num><content><p>In this Part “<term refersTo="#term-the-group-restructuring-powers">the group restructuring powers</term>” means one or more of the powers conferred by this section.</p></content></subsection><subsection><num>(2)</num><intro><p>Where the appropriate regulator is the PRA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to impose a requirement on the PRA-authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to direct the FCA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where the appropriate regulator is the FCA, the powers conferred by this section are as follows—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the ring-fenced body, power to impose a requirement on the ring-fenced body requiring it to take any of the steps mentioned in subsection (5),</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any member of the ring-fenced body's group which is an authorised person but not a PRA-authorised person, power to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6),</p></content></level><level class="para1"><num>(c)</num><content><p>in relation to any member of the ring-fenced body's group which is a PRA-authorised person, power to direct the PRA to impose a requirement on the authorised person requiring it to take any of the steps mentioned in subsection (6), and</p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a qualifying parent undertaking, power to give a direction under this paragraph to the parent undertaking requiring it to take any of the steps mentioned in subsection (6).</p></content></level></subsection><subsection><num>(4)</num><intro><p>A parent undertaking of a ring-fenced body by reference to which the group restructuring powers are exercisable is for the purposes of this Part a “qualifying parent undertaking” if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a body corporate which is incorporated in the United Kingdom and has a place of business in the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The steps that the ring-fenced body may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of specified property or rights to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>otherwise to make arrangements discharging the ring-fenced body from specified liabilities.</p></content></level></subsection><subsection><num>(6)</num><intro><p>The steps that another authorised person or a qualifying parent undertaking may be required to take are—</p></intro><level class="para1"><num>(a)</num><content><p>to dispose of any shares in, or securities of, the ring-fenced body to an outside person;</p></content></level><level class="para1"><num>(b)</num><content><p>to dispose of any interest in any other body corporate that is a member of the ring-fenced body's group to an outside person;</p></content></level><level class="para1"><num>(c)</num><content><p>to dispose of other specified property or rights to an outside person;</p></content></level><level class="para1"><num>(d)</num><content><p>to apply to the court under Part 7 for an order sanctioning a ring-fencing transfer scheme relating to the transfer of the whole or part of the business of the authorised person or qualifying parent undertaking to an outside person.</p></content></level></subsection><subsection><num>(7)</num><content><p>In subsections (5) and (6) “<term refersTo="#term-outside-person">outside person</term>” means a person who, after the implementation of the disposal or scheme in question, will not be a member of the group of the ring-fenced body by reference to which the powers are exercised (whether or not that body is to remain a ring-fenced body after the implementation of the disposal or scheme in question).</p></content></subsection><subsection><num>(8)</num><content><p>It is immaterial whether a requirement to be imposed on an authorised person by the appropriate regulator, or by the other regulator at the direction of the appropriate regulator, is one that the regulator imposing it could impose under section 55L or 55M.</p></content></subsection></section><section><num>142M</num><heading>Procedure: preliminary notices</heading><subsection><num>(1)</num><content><p>If the appropriate regulator proposes to exercise the group restructuring powers in relation to any authorised person or qualifying parent undertaking (“<term refersTo="#term-the-person-concerned">the person concerned</term>”), the regulator must give each of the relevant persons a notice (a “preliminary notice”).</p></content></subsection><subsection><num>(2)</num><intro><p>The preliminary notice must—</p></intro><level class="para1"><num>(a)</num><content><p>state that it is a preliminary notice,</p></content></level><level class="para1"><num>(b)</num><content><p>state that the regulator proposes to exercise the group restructuring powers,</p></content></level><level class="para1"><num>(c)</num><content><p>state the action which the regulator proposes to take in the exercise of those powers,</p></content></level><level class="para1"><num>(d)</num><content><p>be in writing, and</p></content></level><level class="para1"><num>(e)</num><content><p>give reasons for the proposed action (which must include the regulator's reasons for being satisfied as to the matters mentioned in section 142K(1)).</p></content></level></subsection><subsection><num>(3)</num><content><p>The appropriate regulator must give a copy of the preliminary notice to the Treasury.</p></content></subsection><subsection><num>(4)</num><content><p>The preliminary notice must specify a reasonable period (which may not be less than 14 days) within which any of the relevant persons may make representations to the regulator.</p></content></subsection><subsection><num>(5)</num><intro><p>The relevant persons are—</p></intro><level class="para1"><num>(a)</num><content><p>the person concerned,</p></content></level><level class="para1"><num>(b)</num><content><p>the ring-fenced body, if not the person concerned, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other authorised person who will, in the opinion of the appropriate regulator, be significantly affected by the exercise of the group restructuring powers.</p></content></level></subsection></section><section><num>142N</num><heading>Procedure: warning notice and decision notice</heading><subsection><num>(1)</num><intro><p>If the appropriate regulator has given a preliminary notice under section 142M, it must either—</p></intro><level class="para1"><num>(a)</num><content><p>if, having considered any representations made by any of the relevant persons, it still proposes to exercise the group restructuring powers, give each of the relevant persons a warning notice during the warning notice period, or</p></content></level><level class="para1"><num>(b)</num><content><p>before the end of the warning notice period, give each of them a written notice stating that it has decided not to exercise the powers and give a copy of that notice to the Treasury.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The “warning notice period” is the period—</p></intro><level class="para1"><num>(a)</num><content><p>beginning 3 months after the end of the period specified under section 142M(4) as that within which any representations must be made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ending 6 months after the end of that period.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before giving a warning notice under subsection (1)(a), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>give the Treasury a draft of the notice,</p></content></level><level class="para1"><num>(b)</num><content><p>provide the Treasury with any information that the Treasury may require in order to decide whether to give their consent, and</p></content></level><level class="para1"><num>(c)</num><content><p>obtain the consent of the Treasury.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The action specified in the warning notice may be different from that specified in the preliminary notice if—</p></intro><level class="para1"><num>(a)</num><content><p>the appropriate regulator considers that different action is appropriate as a result of any change in circumstances since the preliminary notice was given, or</p></content></level><level class="para1"><num>(b)</num><content><p>the person concerned consents to the change.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulator must, in particular, have regard to anything that—</p></intro><level class="para1"><num>(a)</num><content><p>has been done by the person concerned since the giving of the preliminary notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>represents action that would have been required in pursuance of the proposals in that notice.</p></content></level></subsection><subsection><num>(6)</num><content><p>If the regulator decides to exercise the group restructuring powers it must give each of the relevant persons a decision notice.</p></content></subsection><subsection><num>(7)</num><intro><p>The decision notice must specify the date or dates by which each of the following must be completed—</p></intro><level class="para1"><num>(a)</num><content><p>any disposal of shares, securities or other property that is required by the notice;</p></content></level><level class="para1"><num>(b)</num><content><p>any transfer of liabilities for which the notice requires arrangements to be made.</p></content></level></subsection><subsection><num>(8)</num><content><p>The giving of consent for the purpose of subsection (4)(b) does not affect any right to refer to the Tribunal the matter to which any decision notice resulting from the warning notice relates.</p></content></subsection><subsection><num>(9)</num><content><p>“<term refersTo="#term-the-relevant-persons">The relevant persons</term>” has the same meaning as in section 142M.</p></content></subsection></section><section><num>142O</num><heading>References to Tribunal</heading><subsection><num>(1)</num><intro><p>A notified person who is aggrieved by—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition by either regulator of a requirement as a result of section 142L(2)(a) or (b) or (3)(a) or (b),</p></content></level><level class="para1"><num>(b)</num><content><p>a requirement to be imposed as a result of the giving by one regulator to the other of a direction under section 142L(2)(c) or (3)(c), or</p></content></level><level class="para1"><num>(c)</num><content><p>the giving by either regulator of a direction under section 142L(2)(d) or (3)(d),</p></content></level><wrapUp><p>may refer the matter to the Tribunal.</p></wrapUp></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-notified-person">Notified person</term>” means a person to whom a decision notice under section 142N(6) was given or ought to have been given.</p></content></subsection></section><section><num>142P</num><heading>Subsequent variation of requirement or direction</heading><subsection><num>(1)</num><intro><p>A regulator may at any time with the consent of the person concerned vary—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The person concerned may at any time apply to the appropriate regulator for the variation of—</p></intro><level class="para1"><num>(a)</num><content><p>a requirement imposed by it as a result of section 142L(2)(a) or (b) or (3)(a) or (b), or</p></content></level><level class="para1"><num>(b)</num><content><p>a direction given by it as a result of section 142L(2)(c) or (d) or (3)(c) or (d).</p></content></level></subsection><subsection><num>(3)</num><content><p>Sections 55U, 55V, 55X and 55Z3 apply to an application under subsection (2) as they apply to an application for the variation of a requirement imposed by the appropriate regulator under section 55L or 55M.</p></content></subsection></section><section><num>142Q</num><heading>Consultation <abbr title="et cetera" xml:lang="la">etc.</abbr> between regulators</heading><subsection><num>(1)</num><intro><p>Where a notice under section 142M or a warning notice or decision notice under section 142N relates to a requirement to be imposed in pursuance of a direction to be given as a result of section 142L(2)(c) or (3)(c), the appropriate regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator before giving the notice, and</p></content></level><level class="para1"><num>(b)</num><content><p>give a copy of the notice to the other regulator.</p></content></level></subsection><subsection><num>(2)</num><content><p>The appropriate regulator must consult the other regulator before varying under section 142P a direction given as a result of section 142L(2)(c) or (3)(c).</p></content></subsection><subsection><num>(3)</num><content><p>Directions given by the FCA as a result of section 142L(3)(c) are subject to any directions given to the FCA under section 3I.</p></content></subsection></section><section><num>142R</num><heading>Relationship with regulators' powers under Parts 4A and 12A</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body which is a member of a mixed group, and</p></content></level><level class="para1"><num>(b)</num><content><p>a parent undertaking of such a ring-fenced body.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may not exercise its general powers in relation to the ring-fenced body or parent undertaking so as to achieve either of the results in subsection (3).</p></content></subsection><subsection><num>(3)</num><intro><p>Those results are—</p></intro><level class="para1"><num>(a)</num><content><p>that no existing group member is a parent undertaking of the ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>that the ring-fenced body is not a member of a mixed group.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(a) “<term refersTo="#term-existing-group-member">existing group member</term>” means a person who is a member of the ring-fenced body's group at the time when the requirement is imposed or the direction given.</p></content></subsection><subsection><num>(5)</num><content><p>Except as provided by subsections (1) to (4), the provisions of sections 142K to 142Q do not limit the general powers of either regulator.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section, a regulator's “general powers” are its powers under the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 55L or 55M (imposition of requirements in connection with Part 4A permission);</p></content></level><level class="para1"><num>(b)</num><content><p>section 192C (power to direct qualifying parent undertaking).</p></content></level></subsection><subsection><num>(7)</num><content><p>For the purposes of this section, a ring-fenced body is a member of a mixed group if a member of the ring-fenced body's group carries on an excluded activity.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Failure of parent undertaking to comply with direction</i></heading><section><num>142S</num><heading>Power to impose penalty or issue censure</heading><subsection><num>(1)</num><content><p>This section applies if a regulator is satisfied that a person who is or has been a qualifying parent undertaking (“P”) has contravened a requirement of a direction given to P by that regulator as a result of section 142L(2)(d) or (3)(d).</p></content></subsection><subsection><num>(2)</num><intro><p>The regulator may impose a penalty of such amount as it considers appropriate on—</p></intro><level class="para1"><num>(a)</num><content><p>P, or</p></content></level><level class="para1"><num>(b)</num><content><p>any person who was knowingly concerned in the contravention.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulator may, instead of imposing a penalty on a person, publish a statement censuring the person.</p></content></subsection><subsection><num>(4)</num><content><p>The regulator may not take action against a person under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person under section 142T.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-limitation-period">The limitation period</term>” means the period of 3 years beginning with the first day on which the regulator knew of the contravention.</p></content></subsection><subsection><num>(6)</num><content><p>For this purpose a regulator is to be treated as knowing of a contravention if it has information from which the contravention can reasonably be inferred.</p></content></subsection><subsection><num>(7)</num><content><p>The requirements that a regulator may be required to impose as a result of a direction under section 142L(2)(c) or (3)(c) include requirements that the regulator would not but for the direction have power to impose.</p></content></subsection></section><section><num>142T</num><heading>Procedure and right to refer to Tribunal</heading><subsection><num>(1)</num><content><p>If a regulator proposes to take action against a person under section 142S, it must give the person a warning notice.</p></content></subsection><subsection><num>(2)</num><content><p>A warning notice about a proposal to impose a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(3)</num><content><p>A warning notice about a proposal to publish a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(4)</num><content><p>If the regulator decides to take action against a person under section 142S, it must give the person a decision notice.</p></content></subsection><subsection><num>(5)</num><content><p>A decision notice about the imposition of a penalty must state the amount of the penalty.</p></content></subsection><subsection><num>(6)</num><content><p>A decision notice about the publication of a statement must set out the terms of the statement.</p></content></subsection><subsection><num>(7)</num><content><p>If the regulator decides to take action against a person under section 142S, the person may refer the matter to the Tribunal.</p></content></subsection></section><section><num>142U</num><heading>Duty on publication of statement</heading><intro><p>After a statement under section 142S(3) is published, the regulator must send a copy of the statement to—</p></intro><level class="para1"><num>(a)</num><content><p>the person in respect of whom it is made, and</p></content></level><level class="para1"><num>(b)</num><content><p>any person to whom a copy of the decision notice was given under section 393(4).</p></content></level></section><section><num>142V</num><heading>Imposition of penalties under section 142S: statement of policy</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition of penalties under section 142S, and</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of penalties under that section.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A regulator's policy in determining what the amount of a penalty should be must include having regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the seriousness of the contravention,</p></content></level><level class="para1"><num>(b)</num><content><p>the extent to which the contravention was deliberate or reckless, and</p></content></level><level class="para1"><num>(c)</num><content><p>whether the person on whom the penalty is to be imposed is an individual.</p></content></level></subsection><subsection><num>(3)</num><content><p>A regulator may at any time alter or replace a statement issued under this section.</p></content></subsection><subsection><num>(4)</num><content><p>If a statement issued under this section is altered or replaced, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(5)</num><content><p>In exercising, or deciding whether to exercise, a power under section 142S(2) in the case of any particular contravention, a regulator must have regard to any statement of policy published under this section and in force at a time when the contravention occurred.</p></content></subsection><subsection><num>(6)</num><content><p>A statement under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(7)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of the statement published under this section.</p></content></subsection><subsection><num>(8)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection><subsection><num>(9)</num><content><p>Section 192I applies in relation to a statement under this section as it applies in relation to a statement under section 192H.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Pension liabilities</i></heading><section><num>142W</num><heading>Pension liabilities</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations require a ring-fenced body to make arrangements for any one or more of the following purposes—</p></intro><level class="para1"><num>(a)</num><content><p>ensuring that, except in prescribed cases, the ring-fenced body cannot become liable to meet, or contribute to the meeting of, pension liabilities which arise in connection with persons' service on or after a date specified in the regulations (“<term refersTo="#term-the-specified-date">the specified date</term>”) in any employment, other than service in an employment in respect of which the employer is a ring-fenced body;</p></content></level><level class="para1"><num>(b)</num><content><p>ensuring that, except in prescribed cases, the default of a person other than another ring-fenced body would not result in the ring-fenced body becoming liable to meet, or contribute to the meeting of, pension liabilities arising in connection with persons' service in any employment before the specified date;</p></content></level><level class="para1"><num>(c)</num><content><p>to the extent that it is not possible to ensure the result mentioned in paragraph (a) or (b), minimising any potential liability falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(2)</num><intro><p>The regulations may make provision enabling the trustees or managers of a relevant pension scheme in respect of which the employer or one of the employers is a ring-fenced body—</p></intro><level class="para1"><num>(a)</num><content><p>to transfer to another relevant pension scheme all or part of the pension liabilities arising in connection with persons' service before the specified date together with all or part of the assets of the scheme, or</p></content></level><level class="para1"><num>(b)</num><content><p>to divide the scheme into two or more sections in relation to which prescribed conditions are met.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The regulations may make provision—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a ring-fenced body to apply to the court in a case where the ring-fenced body has been unable to reach agreement with another person (“P”) about the making of arrangements with P on commercial terms for one or more of the purposes in subsection (1), and</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the court on such an application to order P to enter into arrangements with the ring-fenced body for those purposes on such terms as the court considers fair and reasonable in the circumstances.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The regulations must provide that any terms specified by the court by virtue of provision made under subsection (3)—</p></intro><level class="para1"><num>(a)</num><content><p>must be terms which, in the court's opinion, represent terms on which the arrangements might be entered into if they were being entered into for commercial reasons between willing parties dealing at arm's length, and</p></content></level><level class="para1"><num>(b)</num><content><p>may involve the payment of any sum by instalments.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The regulations may make other provision—</p></intro><level class="para1"><num>(a)</num><content><p>about the making by a ring-fenced body of arrangements for one or more of the purposes in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>about any transfer or division falling within subsection (2).</p></content></level></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require a ring-fenced body to cease to participate in a relevant pension scheme unless the scheme is divided into two or more sections in relation to which prescribed conditions are met;</p></content></level><level class="para1"><num>(b)</num><content><p>provide that assets or liabilities of a relevant pension scheme may not be transferred under the arrangements to another occupational pension scheme unless the other scheme meets prescribed conditions;</p></content></level><level class="para1"><num>(c)</num><content><p>require ring-fenced bodies to establish new occupational pension schemes in prescribed circumstances;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that any provision of a relevant pension scheme that might prevent the making of the arrangements, other than a provision requiring the consent of the trustees or managers of the scheme, is not to have effect in prescribed circumstances;</p></content></level><level class="para1"><num>(e)</num><content><p>make provision enabling the trustees or managers of a relevant pension scheme, with the consent of the employers in relation to the scheme, to modify the scheme by resolution for the purpose of enabling the arrangements to be made;</p></content></level><level class="para1"><num>(f)</num><content><p>require the trustees or managers of a relevant pension scheme or any employer in relation to a relevant pension scheme to give notice of prescribed matters to prescribed persons;</p></content></level><level class="para1"><num>(g)</num><content><p>make provision enabling the court, on an application made in accordance with the regulations by a ring-fenced body, if it appears to the court that the trustees or managers of a relevant pension scheme, or an employer in relation to such a scheme, have unreasonably refused their consent to any step that would enable the arrangements to be made, to order that the step may be taken without that consent;</p></content></level><level class="para1"><num>(h)</num><content><p>confer exemption from any provision of the regulations in prescribed cases;</p></content></level><level class="para1"><num>(i)</num><content><p>confer functions on the PRA;</p></content></level><level class="para1"><num>(j)</num><content><p>provide that a ring-fenced body which contravenes a prescribed requirement of the regulations is to be taken to have contravened a requirement imposed by the PRA under this Act;</p></content></level><level class="para1"><num>(k)</num><content><p>modify, exclude or apply (with or without modification) any primary or subordinate legislation.</p></content></level></subsection><subsection><num>(7)</num><intro><p>The Treasury may by regulations require an authorised person who will or may be a ring-fenced body or an authorised person who will or may be a member of a ring-fenced body's group to do all it can to obtain from the Pensions Regulator a clearance statement in relation to any arrangements to be made for the purpose of complying with—</p></intro><level class="para1"><num>(a)</num><content><p>regulations under this section, or</p></content></level><level class="para1"><num>(b)</num><content><p>any provision made by or under this Part (other than this section) when the provision comes into force.</p></content></level></subsection><subsection><num>(8)</num><intro><p>A “clearance statement” is a statement issued by the Pensions Regulator under any of the following provisions—</p></intro><level class="para1"><num>(a)</num><content><p>section 42 of the Pensions Act 2004 (clearance statements relating to contribution notice under section 38);</p></content></level><level class="para1"><num>(b)</num><content><p>section 46 of that Act (clearance statements relating to financial support directions);</p></content></level><level class="para1"><num>(c)</num><content><p>Article 38 of the Pensions (Northern Ireland) Order 2005 (clearance statements relating to contribution notices under article 34);</p></content></level><level class="para1"><num>(d)</num><content><p>Article 42 of that Order (clearance statements relating to financial support directions).</p></content></level></subsection><subsection><num>(9)</num><content><p>In relation to a ring-fenced body that is not a PRA-authorised person, references in subsection (6) to the PRA are to be read as references to the FCA.</p></content></subsection><subsection><num>(10)</num><content><p>Regulations under this section may not require ring-fenced bodies to achieve the results mentioned in subsection (1) before 1 January 2026, but this does not prevent the regulations requiring steps to be taken at any time after the regulations come into force.</p></content></subsection></section><section><num>142X</num><heading>Further interpretative provisions for section 142W</heading><subsection><num>(1)</num><content><p>The following provisions have effect for the interpretation of section 142W and this section.</p></content></subsection><subsection><num>(2)</num><content><p>“<term refersTo="#term-relevant-pension-scheme">Relevant pension scheme</term>” means an occupational pension scheme that is not a money purchase scheme.</p></content></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-occupational-pension-scheme">Occupational pension scheme</term>” has the meaning given in section 1 of the Pension Schemes Act 1993 or section 1 of the Pension Schemes (Northern Ireland) Act 1993 and, in relation to such a scheme, “<term refersTo="#term-member">member</term>” and “<term refersTo="#term-trustees-or-managers">trustees or managers</term>” have the same meaning as in Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995.</p></content></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-money-purchase-scheme">Money purchase scheme</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(5)</num><intro><p>“<term refersTo="#term-employer">Employer</term>”, in relation to a relevant pension scheme, means—</p></intro><level class="para1"><num>(a)</num><content><p>a person who is for the purposes of Part 1 of the Pensions Act 1995 or Part 2 of the Pensions (Northern Ireland) Order 1995 an employer in relation to the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other person who has or may have any liability under the scheme.</p></content></level></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-employment">Employment</term>” has the meaning given in section 181(1) of the Pension Schemes Act 1993 or section 176(1) of the Pension Schemes (Northern Ireland) Act 1993.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-pension-liabilities">Pension liabilities</term>” means liabilities attributable to or associated with the provision under a relevant pension scheme of pensions or other benefits.</p></content></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-the-court">The court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to England and Wales or Northern Ireland, the High Court, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to Scotland, the Court of Session.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Loss-absorbency requirements</i></heading><section><num>142Y</num><heading>Power of Treasury in relation to loss-absorbency requirements</heading><subsection><num>(1)</num><intro><p>The Treasury may by order make provision about the exercise by either regulator of its functions under this Act, so far as they are (apart from the order) capable of being exercised in relation to a relevant body so as to require the relevant body—</p></intro><level class="para1"><num>(a)</num><content><p>to issue any debt instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>to ensure that any part of the relevant body's debt consists of debt owed by it in respect of debt instruments, or debt instruments of a particular kind.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A “relevant body” is—</p></intro><level class="para1"><num>(a)</num><content><p>a ring-fenced body,</p></content></level><level class="para1"><num>(b)</num><content><p>any other body corporate that has a Part 4A permission relating to the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(c)</num><content><p>a body corporate that is a member of the group of a body falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a bond,</p></content></level><level class="para1"><num>(b)</num><content><p>any other instrument creating or acknowledging a debt, or</p></content></level><level class="para1"><num>(c)</num><content><p>an instrument giving rights to acquire a debt instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>An order under this section may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>require the regulator to exercise its functions so as to require relevant bodies to do either or both of the things mentioned in subsection (1);</p></content></level><level class="para1"><num>(b)</num><content><p>limit the extent to which the regulator may require a relevant body's debt to consist of debt owed in respect of debt instruments or of debt instruments of a kind specified in the order;</p></content></level><level class="para1"><num>(c)</num><intro><p>require the regulator—</p></intro><level class="para2"><num>(i)</num><content><p>to make, or not to make, provision by reference to specified matters, or</p></content></level><level class="para2"><num>(ii)</num><content><p>to have regard, or not to have regard, to specified matters;</p></content></level></level><level class="para1"><num>(d)</num><content><p>require the regulator to consult, or obtain the consent of, the Treasury before making rules of a specified description or exercising any other specified function;</p></content></level><level class="para1"><num>(e)</num><content><p>impose on the regulator in connection with the exercise of a specified function procedural requirements which would not otherwise apply to the exercise of the function;</p></content></level><level class="para1"><num>(f)</num><content><p>refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-specified">Specified</term>” means specified in the order.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>General</i></heading><section><num>142Z</num><heading>Affirmative procedure in relation to certain orders under Part 9B</heading><subsection><num>(1)</num><intro><p>This section applies to an order containing provision made under any of the following provisions of this Part—</p></intro><level class="para1"><num>(a)</num><content><p>section 142A(2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>section 142B(2) or (5);</p></content></level><level class="para1"><num>(c)</num><content><p>section 142C;</p></content></level><level class="para1"><num>(d)</num><content><p>section 142D(2) or (4);</p></content></level><level class="para1"><num>(e)</num><content><p>section 142E;</p></content></level><level class="para1"><num>(f)</num><content><p>section 142I;</p></content></level><level class="para1"><num>(g)</num><content><p>section 142Y.</p></content></level></subsection><subsection><num>(2)</num><intro><p>No order to which this section applies may be made unless—</p></intro><level class="para1"><num>(a)</num><content><p>a draft of the order has been laid before Parliament and approved by a resolution of each House, or</p></content></level><level class="para1"><num>(b)</num><content><p>subsection (4) applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>Subsection (4) applies if an order under 142D(4) or 142E contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.</p></content></subsection><subsection><num>(4)</num><intro><p>Where this subsection applies the order—</p></intro><level class="para1"><num>(a)</num><content><p>must be laid before Parliament after being made, and</p></content></level><level class="para1"><num>(b)</num><content><p>ceases to have effect at the end of the relevant period unless before the end of that period the order is approved by a resolution of each House of Parliament (but without that affecting anything done under the order or the power to make a new order).</p></content></level></subsection><subsection><num>(5)</num><content><p>The “relevant period” is a period of 28 days beginning with the day on which the order is made.</p></content></subsection><subsection><num>(6)</num><content><p>In calculating the relevant period no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than 4 days.</p></content></subsection></section><section><num>142Z1</num><heading>Interpretation of Part 9B</heading><subsection><num>(1)</num><content><p>This section has effect for the interpretation of this Part.</p></content></subsection><subsection><num>(2)</num><intro><p>Any reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the regulated activity of accepting deposits, or</p></content></level><level class="para1"><num>(b)</num><content><p>the regulated activity of dealing in investments as principal,</p></content></level><wrapUp><p>is to be read in accordance with Schedule 2, taken with any order under section 22.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>Any reference to the group restructuring powers is to be read in accordance with section 142L(1).</p></content></subsection><subsection><num>(4)</num><content><p>Any reference to a qualifying parent undertaking is to be read in accordance with section 142L(4).</p></content></subsection></section></hcontainer></part></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4-2"><num>(2)</num><content><p><mod>In section 133 of FSMA 2000 (proceedings before Tribunal), in subsection (7A), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>a decision to take action under section 142S;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4-3"><num>(3)</num><content><p><mod>In section 391 of FSMA 2000 (publication), in subsection (1ZB), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ia)</num><content><p>section 142N;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-4"><num>(4)</num><intro><p>In section 392 of FSMA 2000 (application of sections 393 and 394)—</p></intro><level class="para1" eId="section-4-4-a"><num>(a)</num><content><p><mod>in paragraph (a), after “131H(1),” insert <quotedText>“
142T(1),
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-4-4-b"><num>(b)</num><content><p><mod>in paragraph (b), after “131H(4),” insert <quotedText>“
142T(4),
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-4-4-a"><num>(a)</num><content><p><mod>in paragraph (a), after “131H(1),” insert <quotedText>“
142T(1),
”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-4-4-b"><num>(b)</num><content><p><mod>in paragraph (b), after “131H(4),” insert <quotedText>“
142T(4),
”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-4-5"><num>(5)</num><intro><p>In section 417 of FSMA 2000 (definitions), in subsection (1)—</p></intro><level class="para1" eId="section-4-5-a"><num>(a)</num><content><p><mod>after the definition of “control of information rules” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-core-activities">core activities</term>” has the meaning given in section 142B;</p><p>“<term refersTo="#term-core-services">core services</term>” has the meaning given in section 142C;</p></quotedStructure><inline name="appendText">,</inline></mod></p></content></level><level class="para1" eId="section-4-5-b"><num>(b)</num><content><p><mod>after the definition of “ESMA” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-excluded-activities">excluded activities</term>” has the meaning given in section 142D;</p></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-4-5-c"><num>(c)</num><content><p><mod>after the definition of “regulator” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” has the meaning given in section 142A;</p><p>“<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>” has the meaning given in section 142H;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-4-5-a"><num>(a)</num><content><p><mod>after the definition of “control of information rules” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-core-activities">core activities</term>” has the meaning given in section 142B;</p><p>“<term refersTo="#term-core-services">core services</term>” has the meaning given in section 142C;</p></quotedStructure><inline name="appendText">,</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-4-5-b"><num>(b)</num><content><p><mod>after the definition of “ESMA” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-excluded-activities">excluded activities</term>” has the meaning given in section 142D;</p></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-4-5-c"><num>(c)</num><content><p><mod>after the definition of “regulator” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-ring-fenced-body">ring-fenced body</term>” has the meaning given in section 142A;</p><p>“<term refersTo="#term-ring-fencing-rules">ring-fencing rules</term>” has the meaning given in section 142H;</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-6"><num>(6)</num><content><p><mod>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)(c)(i), after “138N,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-7"><num>(7)</num><content><p><mod>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), in paragraph 16(3)(c)(i), after “69,” insert <quotedText>“
142V,
”</quotedText>.</mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-5"><num>5</num><heading>PRA annual report</heading><subsection eId="section-5-1"><num>(1)</num><content><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), paragraph 19 (annual report) is amended as follows.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p><mod>After sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In the report the PRA must also report in general terms on—</p></intro><level class="para1"><num>(a)</num><content><p>the extent to which, in its opinion, ring-fenced bodies have complied with the ring-fencing provisions,</p></content></level><level class="para1"><num>(b)</num><content><p>steps taken by ring-fenced bodies in order to comply with the ring-fencing provisions,</p></content></level><level class="para1"><num>(c)</num><content><p>steps taken by it to enforce the ring-fencing provisions,</p></content></level><level class="para1"><num>(d)</num><content><p>the extent to which ring-fenced bodies are carrying on the regulated activity of dealing in investments as principal (whether in the United Kingdom or elsewhere) in circumstances where as a result of an order under section 142D(2) that activity is not an excluded activity,</p></content></level><level class="para1"><num>(e)</num><content><p>the extent to which ring-fenced bodies are carrying on activities that would be excluded activities by virtue of an order under section 142D(4) but for an exemption or exclusion made by such an order,</p></content></level><level class="para1"><num>(f)</num><content><p>the extent to which ring-fenced bodies are doing things that they would be prohibited from doing by an order under section 142E but for an exemption made by such an order, and</p></content></level><level class="para1"><num>(g)</num><content><p>the extent to which ring-fenced bodies appear to it to have acted in accordance with any guidance which it has given to ring-fenced bodies and which relates to the operation of the ring-fencing provisions.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>In sub-paragraph (1A)—</p></intro><level class="para1"><num>(a)</num><content><p>references to “ring-fenced bodies” relate only to ring-fenced bodies that are PRA-authorised persons, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p><mod>In sub-paragraph (2), for “Sub-paragraph (1) does not” substitute <quotedText>“
Sub-paragraphs (1) and (1A) do not
”</quotedText>.</mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-1"><num>(1)</num><content><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), paragraph 19 (annual report) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-5-2"><num>(2)</num><content><p><mod>After sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1A)</num><intro><p>In the report the PRA must also report in general terms on—</p></intro><level class="para1"><num>(a)</num><content><p>the extent to which, in its opinion, ring-fenced bodies have complied with the ring-fencing provisions,</p></content></level><level class="para1"><num>(b)</num><content><p>steps taken by ring-fenced bodies in order to comply with the ring-fencing provisions,</p></content></level><level class="para1"><num>(c)</num><content><p>steps taken by it to enforce the ring-fencing provisions,</p></content></level><level class="para1"><num>(d)</num><content><p>the extent to which ring-fenced bodies are carrying on the regulated activity of dealing in investments as principal (whether in the United Kingdom or elsewhere) in circumstances where as a result of an order under section 142D(2) that activity is not an excluded activity,</p></content></level><level class="para1"><num>(e)</num><content><p>the extent to which ring-fenced bodies are carrying on activities that would be excluded activities by virtue of an order under section 142D(4) but for an exemption or exclusion made by such an order,</p></content></level><level class="para1"><num>(f)</num><content><p>the extent to which ring-fenced bodies are doing things that they would be prohibited from doing by an order under section 142E but for an exemption made by such an order, and</p></content></level><level class="para1"><num>(g)</num><content><p>the extent to which ring-fenced bodies appear to it to have acted in accordance with any guidance which it has given to ring-fenced bodies and which relates to the operation of the ring-fencing provisions.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>In sub-paragraph (1A)—</p></intro><level class="para1"><num>(a)</num><content><p>references to “ring-fenced bodies” relate only to ring-fenced bodies that are PRA-authorised persons, and</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">the ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-3"><num>(3)</num><content><p><mod>In sub-paragraph (2), for “Sub-paragraph (1) does not” substitute <quotedText>“
Sub-paragraphs (1) and (1A) do not
”</quotedText>.</mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6"><num>6</num><heading>Ring-fencing transfer schemes</heading><content><p>Schedule 1 (which contains amendments of Part 7 of FSMA 2000 relating to ring-fencing transfer schemes) has effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7"><num>7</num><heading>Building societies: power to make provision about ring-fencing</heading><subsection eId="section-7-1"><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><content><p>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).</p></content></level></subsection><subsection eId="section-7-2"><num>(2)</num><intro><p>The regulations may, in particular—</p></intro><level class="para1" eId="section-7-2-a"><num>(a)</num><content><p>amend the Building Societies Act 1986;</p></content></level><level class="para1" eId="section-7-2-b"><num>(b)</num><content><p>apply any of the provisions contained in, or made under, Part 9B of FSMA 2000, with such modifications as the Treasury consider appropriate;</p></content></level><level class="para1" eId="section-7-2-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-7-2-d"><num>(d)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-7-2-e"><num>(e)</num><content><p>make such consequential provision including amendments of any enactment as the Treasury consider appropriate.</p></content></level></subsection><subsection eId="section-7-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-7-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in the Building Societies Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-continuity-provision" eId="term-the-relevant-continuity-provision">the relevant continuity provision</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of functions exercisable by the PRA, section 2B(3)(c) and (4A) of that Act.</p></content></level></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-1"><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1" eId="section-7-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-7-1-b"><num>(b)</num><content><p>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).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-1-b"><num>(b)</num><content><p>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).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-2"><num>(2)</num><intro><p>The regulations may, in particular—</p></intro><level class="para1" eId="section-7-2-a"><num>(a)</num><content><p>amend the Building Societies Act 1986;</p></content></level><level class="para1" eId="section-7-2-b"><num>(b)</num><content><p>apply any of the provisions contained in, or made under, Part 9B of FSMA 2000, with such modifications as the Treasury consider appropriate;</p></content></level><level class="para1" eId="section-7-2-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-7-2-d"><num>(d)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-7-2-e"><num>(e)</num><content><p>make such consequential provision including amendments of any enactment as the Treasury consider appropriate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-2-a"><num>(a)</num><content><p>amend the Building Societies Act 1986;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-2-b"><num>(b)</num><content><p>apply any of the provisions contained in, or made under, Part 9B of FSMA 2000, with such modifications as the Treasury consider appropriate;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-2-c"><num>(c)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-2-d"><num>(d)</num><content><p>confer functions on the FCA or the PRA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-7-2-e"><num>(e)</num><content><p>make such consequential provision including amendments of any enactment as the Treasury consider appropriate.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in the Building Societies Act 1986;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-continuity-provision" eId="term-the-relevant-continuity-provision">the relevant continuity provision</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of functions exercisable by the PRA, section 2B(3)(c) and (4A) of that Act.</p></content></level></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>”, 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.</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><intro><p>“the relevant continuity provision” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of functions exercisable by the PRA, section 2B(3)(c) and (4A) of that Act.</p></content></level></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><intro><p>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>an enactment contained in subordinate legislation,</p></content></level><level class="para1"><num>(b)</num><content><p>an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,</p></content></level><level class="para1"><num>(c)</num><content><p>an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales, and</p></content></level><level class="para1"><num>(d)</num><content><p>an enactment contained in, or in an instrument made under, Northern Ireland legislation;</p></content></level></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“the new company” and “the old company” are to be read in accordance with paragraph 1;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content><p>In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-7" class="schProv1"><num><noteRef href="#key-ec72f71c25d573ecd57141a3c29d6a78" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>7</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert <quotedText>“
payment
”</quotedText>.</mod></p></content></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content><p>an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” means a digital representation of value or rights, whether or not cryptographically secured, that—</ins></p></intro><level class="para1"><num>(a)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be used for the settlement of payment obligations,</ins></p></content></level><level class="para1"><num>(b)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be transferred, stored or traded electronically, and</ins></p></content></level><level class="para1"><num>(c)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">uses technology supporting the recording or storage of data (which may include distributed ledger technology).</ins></p></content></level></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>12A</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The third stabilisation option is exercised by the use of the power in subsection (2).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more resolution instruments (which may contain provision or proposals of any kind mentioned in subsections (3) to (6)).</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make special bail-in provision with respect to a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, any special bail-in provision made by that or another instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>provide for securities issued by a specified bank to be transferred to a bail-in administrator (see section 12B) or another person;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, the transfer of securities issued by a specified bank (whether or not the transfer has been or is to be effected by that instrument, by another resolution instrument or otherwise).</p></content></level></subsection><subsection><num>(5)</num><content><p>A resolution instrument may set out proposals with regard to the future ownership of a specified bank or of the business of a specified bank, and any other proposals (for example, proposals about making special bail-in provision) that the Bank of England may think appropriate.</p></content></subsection><subsection><num>(6)</num><content><p>A resolution instrument may make any other provision the Bank of England may think it appropriate to make in exercise of specific powers under this Part.</p></content></subsection><subsection><num>(7)</num><intro><p>Provision made in accordance with subsection (4) may relate to—</p></intro><level class="para1"><num>(a)</num><content><p>specified securities, or</p></content></level><level class="para1"><num>(b)</num><content><p>securities of a specified description.</p></content></level></subsection><subsection><num>(8)</num><content><p>Where the Bank of England has exercised the power in subsection (4) to transfer securities to a bail-in administrator, the Bank of England must exercise its functions under this Part (see, in particular, section 48V) with a view to ensuring that any securities held by a person in the capacity of a bail-in administrator are so held only for so long as is, in the Bank of England's opinion, appropriate having regard to the special resolution objectives.</p></content></subsection><subsection><num>(9)</num><content><p>References in this Part to “special bail-in provision” are to provision made in reliance on section 48B.</p></content></subsection></section><section><num>12B</num><heading>Bail-in administrators</heading><subsection><num>(1)</num><content><p>The Bank of England may, in a resolution instrument, appoint an individual or body corporate as a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>A bail-in administrator is appointed—</p></intro><level class="para1"><num>(a)</num><content><p>to hold any securities that may be transferred or issued to that person in the capacity of bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>to perform any other functions that may be conferred under any provision of this Part.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Bank of England may appoint more than one bail-in administrator to perform functions in relation to a bank (but no more than one of them may at any one time be authorised to hold securities as mentioned in subsection (2)(a)).</p></content></subsection><subsection><num>(4)</num><content><p>Securities held by a bail-in administrator (in that capacity, and whether as a result of a resolution instrument or otherwise) are to be held in accordance with the terms of a resolution instrument that transfers those, or other, securities to the bail-in administrator.</p></content></subsection><subsection><num>(5)</num><intro><p>For example, the following provision may be made by virtue of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights of a bail-in administrator with respect to all or any of the securities are to be exercisable only as directed by the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>provision specifying rights or obligations that the bail-in administrator is, or is not, to have in relation to some or all of the securities.</p></content></level></subsection><subsection><num>(6)</num><content><p>A bail-in administrator must have regard, in performing any functions of the office, to any objectives that may be specified in a resolution instrument.</p></content></subsection><subsection><num>(7)</num><content><p>Where one or more objectives are specified in accordance with subsection (6), the objectives are to be taken to have equal status with each other, unless the contrary is stated in the resolution instrument.</p></content></subsection><subsection><num>(8)</num><content><p>See sections 48I to 48K for further provision about bail-in administrators.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-2-paragraph-6-1"><num>(1)</num><intro><p>In section 49 (orders)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-1-a"><num>(a)</num><content><p><mod>in subsection (1), for “three” substitute <quotedText>“
four
”</quotedText> and for “and property transfer instruments” substitute <quotedText>“
, property transfer instruments and orders and resolution instruments
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-1-b"><num>(b)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>A “bail-in compensation order” is an order establishing a scheme for determining, in accordance with section 52A, whether any transferors or others should be paid compensation.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-2"><num>(2)</num><content><p><mod>In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified classes of creditor,” substitute <quotedText>“
persons of a specified description,
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-3"><num>(3)</num><content><p><mod>After section 52 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>52A</num><heading>Bail-in option</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies if the Bank of England makes—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument under section 12A(2), or</p></content></level><level class="para1"><num>(b)</num><content><p>a property transfer instrument under section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury must make a bail-in compensation order (see section 49(2A)).</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in compensation order may include provision for—</p></intro><level class="para1"><num>(a)</num><content><p>an independent valuer (in which case sections 54 to 56 are to apply);</p></content></level><level class="para1"><num>(b)</num><content><p>valuation principles (in which case section 57(2) to (5) is to apply).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-4"><num>(4)</num><intro><p>In section 53 (onward and reverse transfers), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-4-a"><num>(a)</num><content><p><mod>before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zza)</num><content><p>the Bank of England makes a supplemental share transfer instrument under section 26,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-b"><num>(b)</num><content><p><mod>after paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zb)</num><content><p>the Treasury makes a supplemental share transfer order under section 27,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-c"><num>(c)</num><content><p><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(dza)</num><content><p>the Bank of England makes a supplemental property transfer instrument under section 42,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-d"><num>(d)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(fa)</num><content><p>the Bank of England makes a reverse property transfer instrument under section 44A(2),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-e"><num>(e)</num><content><p>omit the “or” after paragraph (g);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-f"><num>(f)</num><content><p><mod>after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Bank of England makes a supplemental resolution instrument under section 48U,</p></content></level><level class="para1"><num>(j)</num><content><p>the Bank of England makes an onward transfer resolution instrument under section 48V(2), or</p></content></level><level class="para1"><num>(k)</num><content><p>the Bank of England makes a reverse transfer resolution instrument under section 48W(2) or (3).</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-g"><num>(g)</num><content><p><mod>in the heading, after “<b>transfers</b>” insert <quotedText>“
<b><abbr title="Et cetera" xml:lang="la">etc</abbr></b>
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-5"><num>(5)</num><intro><p>In section 54 (independent valuer)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-5-a"><num>(a)</num><content><p><mod>in subsection (1), after “compensation scheme order” insert <quotedText>“
or bail-in compensation order
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-5-b"><num>(b)</num><content><p><mod>in subsection (4)(b), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-6"><num>(6)</num><content><p><mod>In section 56 (independent valuer: money), in subsection (2)(b) for “or third party compensation order” substitute <quotedText>“
, third party compensation order or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-7"><num>(7)</num><content><p><mod>In section 57 (valuation principles), in subsection (1), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-8"><num>(8)</num><content><p><mod>After section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Further mandatory provision: bail-in provision</heading><subsection><num>(1)</num><intro><p>The Treasury may make regulations about compensation arrangements in the case of—</p></intro><level class="para1"><num>(a)</num><content><p>resolution instruments under section 12A(2) and supplemental resolution instruments under section 48U(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>instruments (made under any provision) that include special bail-in provision.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Regulations may—</p></intro><level class="para1"><num>(a)</num><content><p>require a resolution fund order, a compensation scheme order, a third party compensation order or a bail-in compensation order to include provision of a specified kind or to specified effect;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision that is to be treated as forming part of any such order (whether (i) generally, (ii) only if applied, (iii) unless disapplied, or (iv) subject to express modification).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Regulations may provide for whether compensation is to be paid, and if so what amount is to be paid, to be determined by reference to any factors or combination of factors; in particular, the regulations may provide for entitlement—</p></intro><level class="para1"><num>(a)</num><content><p>to depend in part upon the amounts which are or may be payable under a resolution fund order;</p></content></level><level class="para1"><num>(b)</num><content><p>to be contingent upon the occurrence or non-occurrence of specified events;</p></content></level><level class="para1"><num>(c)</num><content><p>to be determined wholly or partly by an independent valuer (within the meaning of sections 54 to 56) appointed in accordance with a compensation scheme order or bail-in compensation order.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Regulations may make provision about payment including, in particular, provision for payments—</p></intro><level class="para1"><num>(a)</num><content><p>on account subject to terms and conditions;</p></content></level><level class="para1"><num>(b)</num><content><p>by instalment.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>60B</num><heading>Principle of no less favourable treatment</heading><subsection><num>(1)</num><content><p>In making regulations under section 60A the Treasury must, in particular, have regard to the desirability of ensuring that pre-resolution shareholders and creditors of a bank do not receive less favourable treatment than they would have received had the bank entered insolvency immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>References in this section to the initial instrument are—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to compensation arrangements in the case of property transfer instruments under section 12(2), to the first instrument to be made under that provision with respect to the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to compensation arrangements in other cases, to the first resolution instrument to be made under section 12A with respect to the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “pre-resolution shareholders and creditors” of a bank are the persons who held securities issued by the bank, or were creditors of the bank, immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to insolvency include a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) receivership, (vi) composition with creditors, and (vii) a scheme of arrangement.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-9"><num>(9)</num><intro><p>In section 61(1) (sources of compensation),—</p></intro><level class="para1" eId="schedule-2-paragraph-6-9-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (c);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-b"><num>(b)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>bail-in compensation orders,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-c"><num>(c)</num><content><p><mod>after paragraph (d) insert, “, and<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(e)</num><content><p>regulations under section 60A.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-10"><num>(10)</num><content><p><mod>In section 62(1) (procedure), omit the “and” at the end of paragraph (b), and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>bail-in compensation orders, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-9" class="schProv1"><num><noteRef href="#key-1ae2b182a6b3fff3e2dd051310b09bab" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>9</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-9-a"><num>(a)</num><content><p><mod>in subsection (1), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content><p>subsection (1A),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-9-b"><num>(b)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><content><p>The provisions relating to the third stabilisation option (bail-in) are to be disregarded in the application of this Part to recognised central counterparties.</p></content></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-9-c"><num>(c)</num><content><p>in subsection (2), in the substituted section 13(1), for “third” substitute “fourth”.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-2-paragraph-12-1"><num>(1)</num><content><p>Section 1 (overview) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-2"><num>(2)</num><content><p><mod>In subsection (2)(a), for “three” substitute <quotedText>“
four
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The four “stabilisation options” are—</p></intro><level class="para1"><num>(a)</num><content><p>transfer to a private sector purchaser (section 11),</p></content></level><level class="para1"><num>(b)</num><content><p>transfer to a bridge bank (section 12),</p></content></level><level class="para1"><num>(c)</num><content><p>the bail-in option (section 12A), and</p></content></level><level class="para1"><num>(d)</num><content><p>transfer to temporary public ownership (section 13).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-2-paragraph-12-4-a"><num>(a)</num><content><p><mod>for “three” substitute <quotedText>“
four
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-b"><num>(b)</num><content><p><mod>before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>the resolution instrument powers (sections 12A(2) and 48U to 48W),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-c"><num>(c)</num><content><p><mod>in paragraph (b), after “33” insert <quotedText>“
, 41A
”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>8A</num><heading>Specific condition: bail-in</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a bank in accordance with section 12A(2) only if satisfied that the condition in subsection (2) is met.</p></content></subsection><subsection><num>(2)</num><intro><p>The condition is that the exercise of the power is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before determining whether that condition is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(4)</num><content><p>The condition in this section is in addition to the conditions in section 7.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 13 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 17 (share transfers: effect)—</p></intro><level class="para1" eId="schedule-2-paragraph-14-a"><num>(a)</num><content><p><mod>in subsection (1), after “order” insert, <quotedText>“
or by a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-b"><num>(b)</num><content><p><mod>in subsection (5), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-c"><num>(c)</num><content><p><mod>in subsection (6), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-14-a"><num>(a)</num><content><p><mod>in subsection (1), after “order” insert, <quotedText>“
or by a resolution instrument
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-14-b"><num>(b)</num><content><p><mod>in subsection (5), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-14-c"><num>(c)</num><content><p><mod>in subsection (6), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 18 (share transfers: continuity), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>This section applies to a resolution instrument as it applies to a share transfer instrument; and in relation to a resolution instrument references in this section to a “transfer” are to a transfer of securities (whether made by that or another resolution instrument) and “<term refersTo="#term-transferor">transferor</term>” and “<term refersTo="#term-transferee">transferee</term>” are to be read accordingly.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><intro><p>In section 44 (reverse property transfer)—</p></intro><level class="para1" eId="schedule-2-paragraph-16-a"><num>(a)</num><content><p><mod>in subsection (2), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-b"><num>(b)</num><content><p><mod>in subsection (3), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-c"><num>(c)</num><content><p><mod>in subsection (4), for “A reverse” substitute <quotedText>“
A bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-d"><num>(d)</num><intro><p>in subsection (4A)—</p></intro><level class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-2-paragraph-16-e"><num>(e)</num><content><p><mod>in subsection (5), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-f"><num>(f)</num><content><p><mod>in subsection (6), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-g"><num>(g)</num><content><p><mod>in subsection (7), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-h"><num>(h)</num><content><p><mod>in the heading, for “<b>Reverse</b>” substitute <quotedText>“
<b>Bridge bank: reverse</b>
”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-a"><num>(a)</num><content><p><mod>in subsection (2), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-b"><num>(b)</num><content><p><mod>in subsection (3), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-c"><num>(c)</num><content><p><mod>in subsection (4), for “A reverse” substitute <quotedText>“
A bridge bank reverse
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-d"><num>(d)</num><intro><p>in subsection (4A)—</p></intro><level class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-e"><num>(e)</num><content><p><mod>in subsection (5), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-f"><num>(f)</num><content><p><mod>in subsection (6), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-g"><num>(g)</num><content><p><mod>in subsection (7), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-16-h"><num>(h)</num><content><p><mod>in the heading, for “<b>Reverse</b>” substitute <quotedText>“
<b>Bridge bank: reverse</b>
”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><intro><p>In section 66 (general continuity obligation: share transfers)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-a"><num>(a)</num><content><p><mod>in subsection (1)(a), after “13(2)” insert <quotedText>“
, or which falls within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-b"><num>(b)</num><content><p><mod>in subsection (1)(d)(i), after “11(2)(a)” insert <quotedText>“
, or in a case falling within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another of securities issued by the bank (and the reference in subsection (1)(b) to “<term refersTo="#term-the-transfer">the transfer</term>” includes such a cancellation or conversion).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-18-a"><num>(a)</num><content><p><mod>in subsection (1)(a), after “13(2)” insert <quotedText>“
, or which falls within subsection (1A)
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-18-b"><num>(b)</num><content><p><mod>in subsection (1)(d)(i), after “11(2)(a)” insert <quotedText>“
, or in a case falling within subsection (1A)
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-18-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another of securities issued by the bank (and the reference in subsection (1)(b) to “<term refersTo="#term-the-transfer">the transfer</term>” includes such a cancellation or conversion).</p></content></subsection></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert <quotedText>“
or resolution instrument
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert <quotedText>“
a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><intro><p>In section 71 (pensions), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-21-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-21-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-21-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-21-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-22" class="schProv1"><num>22</num><intro><p>In section 72 (enforcement), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a resolution instrument.</p></content></level></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a resolution instrument.</p></content></level></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 73 (disputes), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-23-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-23-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-23-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-23-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-24" class="schProv1"><num>24</num><content><p><mod>In section 74 (tax), in subsection (6), for “or 45” substitute <quotedText>“
, 45, 48U or 48V
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-25" class="schProv1"><num>25</num><content><p><mod>After section 80 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>80A</num><heading>Transfer for bail-in purposes: report</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes one or more resolution instruments under section 12A(2) in respect of a bank.</p></content></subsection><subsection><num>(2)</num><intro><p>The Bank of England must, on request by the Treasury, report to the Chancellor of the Exchequer about—</p></intro><level class="para1"><num>(a)</num><content><p>the exercise of the power to make a resolution instrument under section 12A(2),</p></content></level><level class="para1"><num>(b)</num><content><p>the activities of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other matters in relation to the bank that the Treasury may specify.</p></content></level></subsection><subsection><num>(3)</num><content><p>In relation to the matters in subsection (2)(a) and (b), the report must comply with any requirements that the Treasury may specify.</p></content></subsection><subsection><num>(4)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-26" class="schProv1"><num>26</num><intro><p>In section 81A (accounting information to be included in reports under sections 80 and 81)—</p></intro><level class="para1" eId="schedule-2-paragraph-26-a"><num>(a)</num><content><p><mod>in subsection (1), for “or 81” substitute <quotedText>“
, 80A(2)(b) or 81
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-26-b"><num>(b)</num><content><p><mod>in the heading, for “<b>and 81</b>” substitute <quotedText>“
<b>, 80A(2)(b) and 81</b>
”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-26-a"><num>(a)</num><content><p><mod>in subsection (1), for “or 81” substitute <quotedText>“
, 80A(2)(b) or 81
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-26-b"><num>(b)</num><content><p><mod>in the heading, for “<b>and 81</b>” substitute <quotedText>“
<b>, 80A(2)(b) and 81</b>
”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-27" class="schProv1"><num>27</num><content><p><mod>In section 85 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-28" class="schProv1"><num>28</num><content><p><mod>In section 136 (overview), in the Table in subsection (3), for “152” substitute <quotedText>“
152A
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-29" class="schProv1"><num>29</num><content><p><mod>After section 152 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>152A</num><heading>Property transfer from transferred institution</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>makes a resolution instrument that transfers securities issued by a bank (or a bank's parent undertaking), in accordance with section 12A(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>later makes a property transfer instrument from the bank or from another bank which is or was in the same group as the bank, in accordance with section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>This Part applies to the transferor under the property transfer instrument made in accordance with section 41A(2) as to the transferor under a property transfer instrument made in accordance with section 12(2).</p></content></subsection><subsection><num>(3)</num><intro><p>For that purpose this Part applies with any modifications specified by the Treasury in regulations; and any regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 220 (insolvency <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>The fact that ownership of an authorised bank is transferred or otherwise changed as a result of a resolution instrument (or an instrument treated as a resolution instrument) does not itself prevent the bank from relying on section 213.</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-2-paragraph-31" class="schProv1"><num>31</num><intro><p>In section 259 (statutory instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-31-a"><num>(a)</num><content><p><mod>in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute <quotedText>“
Third party compensation: partial property transfers
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-b"><num>(b)</num><content><p><mod>in the Table in subsection (3), in Part 1, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48F(1) and (2)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to amend definition of “excluded liabilities”</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48G</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Insolvency treatment principles</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48P</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Safeguarding of certain financial arrangements</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">52A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation orders</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“60A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Third party compensation: instruments containing special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-c"><num>(c)</num><content><p><mod>in the Table in subsection (3), in Part 3, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">152A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Property transfer from transferred institution</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-d"><num>(d)</num><content><p><mod>in subsection (5), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><content><p>section 60A (special resolution regime: instruments containing special bail-in provision),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-e"><num>(e)</num><content><p><mod>in subsection (5), after paragraph (k) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ka)</num><content><p>section 152A (bank administration: property transfer from transferred institution),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-31-a"><num>(a)</num><content><p><mod>in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute <quotedText>“
Third party compensation: partial property transfers
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" class="para1" eId="schedule-2-paragraph-31-b"><num>(b)</num><content><p><mod>in the Table in subsection (3), in Part 1, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48F(1) and (2)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to amend definition of “excluded liabilities”</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48G</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Insolvency treatment principles</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48P</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Safeguarding of certain financial arrangements</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">52A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation orders</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“60A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Third party compensation: instruments containing special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" class="para1" eId="schedule-2-paragraph-31-c"><num>(c)</num><content><p><mod>in the Table in subsection (3), in Part 3, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">152A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Property transfer from transferred institution</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-31-d"><num>(d)</num><content><p><mod>in subsection (5), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><content><p>section 60A (special resolution regime: instruments containing special bail-in provision),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-31-e"><num>(e)</num><content><p><mod>in subsection (5), after paragraph (k) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ka)</num><content><p>section 152A (bank administration: property transfer from transferred institution),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-2-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 261 (index of defined terms), in the Table, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation order</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">49”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Resolution instrument</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12A”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48B</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-business" eId="term-business">business</term>”, “<term refersTo="#term-member" eId="term-member">member</term>”, “<term refersTo="#term-property" eId="term-property">property</term>” and “<term refersTo="#term-security" eId="term-security">security</term>” have the same meaning as in the 1986 Act;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-reviews"><heading><i>Reviews</i></heading><section eId="section-8"><num>8</num><heading>Independent review of operation of legislation relating to ring-fencing</heading><subsection eId="section-8-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-8-2"><num>(2)</num><intro><p>“<term refersTo="#term-the-legislation-relating-to-ring-fencing" eId="term-the-legislation-relating-to-ring-fencing">The legislation relating to ring-fencing</term>” means—</p></intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content><p>Part 9B of FSMA 2000 (as inserted by section 4);</p></content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content><p>orders and regulations made by the Treasury under that Part;</p></content></level><level class="para1" eId="section-8-2-c"><num>(c)</num><content><p>ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;</p></content></level><level class="para1" eId="section-8-2-d"><num>(d)</num><content><p>section 192JA of FSMA 2000 (as inserted by section 133);</p></content></level><level class="para1" eId="section-8-2-e"><num>(e)</num><content><p>rules made by the FCA or the PRA under that section.</p></content></level></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-8-4-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level></subsection><level class="para1" eId="section-8-b"><num>(b)</num><content><p>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.</p></content></level><subsection eId="section-8-5"><num>(5)</num><intro><p>In appointing the members of the review panel, the Treasury—</p></intro><level class="para1" eId="section-8-5-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-8-5-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-8-6"><num>(6)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection><subsection eId="section-8-7"><num>(7)</num><intro><p>The reference in subsection (6) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-8-7-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-8-7-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection><subsection eId="section-8-8"><num>(8)</num><content><p>The Treasury must appoint one of the members of the review panel to be the chair of the panel.</p></content></subsection><subsection eId="section-8-9"><num>(9)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-8-9-a"><num>(a)</num><content><p>setting out the results of the review, and</p></content></level><level class="para1" eId="section-8-9-b"><num>(b)</num><content><p>making such recommendations (if any) as the panel considers appropriate.</p></content></level></subsection><subsection eId="section-8-10"><num>(10)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-8-10-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-8-10-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection><subsection eId="section-8-11"><num>(11)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection></section><section eId="section-9"><num>9</num><heading>PRA review of proprietary trading</heading><subsection eId="section-9-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-9-3"><num>(3)</num><intro><p>On completion of the review, the PRA must make a written report to the Treasury on—</p></intro><level class="para1" eId="section-9-3-a"><num>(a)</num><content><p>the extent to which relevant authorised persons engage in proprietary trading;</p></content></level><level class="para1" eId="section-9-3-b"><num>(b)</num><content><p>whether proprietary trading engaged in by relevant authorised persons gives rise to any risks to their safety and soundness;</p></content></level><level class="para1" eId="section-9-3-c"><num>(c)</num><content><p>whether any kinds of proprietary trading are particularly likely to give rise to such risks;</p></content></level><level class="para1" eId="section-9-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-3-e"><num>(e)</num><content><p>any difficulties encountered by the PRA in seeking to minimise such risks.</p></content></level></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>The report must include an assessment by the PRA of each of the following—</p></content></subsection><level class="para1" eId="section-9-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-b"><num>(b)</num><content><p>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).</p></content></level><subsection eId="section-9-5"><num>(5)</num><content><p>The report must be made within 9 months of the beginning of the review.</p></content></subsection><subsection eId="section-9-6"><num>(6)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection eId="section-9-7"><num>(7)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>The functions of the PRA under this section are to be taken for the purposes of FSMA 2000 to be functions under that Act.</p></content></subsection><subsection eId="section-9-9"><num>(9)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection></section><section eId="section-10"><num>10</num><heading>Independent review of proprietary trading</heading><subsection eId="section-10-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-10-3"><num>(3)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-10-3-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level><level class="para1" eId="section-10-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-10-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-10-5"><num>(5)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection><subsection eId="section-10-6"><num>(6)</num><intro><p>The reference in subsection (5) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-10-6-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-10-6-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection><subsection eId="section-10-7"><num>(7)</num><content><p>If the review panel consists of two or more members, the Treasury must appoint one of them to be the chair of the panel.</p></content></subsection><subsection eId="section-10-8"><num>(8)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-10-8-a"><num>(a)</num><content><p>stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,</p></content></level><level class="para1" eId="section-10-8-b"><num>(b)</num><content><p>stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and</p></content></level><level class="para1" eId="section-10-8-c"><num>(c)</num><content><p>making such other recommendations as the panel thinks fit.</p></content></level></subsection><subsection eId="section-10-9"><num>(9)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-10-9-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-10-9-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection><subsection eId="section-10-10"><num>(10)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection><subsection eId="section-10-11"><num>(11)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection></section><section eId="section-11"><num>11</num><heading>Reviews of proprietary trading: interpretation</heading><subsection eId="section-11-1"><num>(1)</num><content><p>This section has effect for the interpretation of sections 9 and 10.</p></content></subsection><subsection eId="section-11-2"><num>(2)</num><content><p>A person engages in “proprietary trading” where the person trades in commodities or financial instruments as principal.</p></content></subsection><subsection eId="section-11-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-11-3-a"><num>(a)</num><content><p>“<term refersTo="#term-commodity" eId="term-commodity">commodity</term>” 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;</p></content></level><level class="para1" eId="section-11-3-b"><num>(b)</num><content><p>“<term refersTo="#term-financial-instrument" eId="term-financial-instrument">financial instrument</term>” includes anything specified in Section C of Annex I to <ins class="first last" ukl:ChangeId="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2-1507033782715" ukl:CommentaryRef="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2"><noteRef uk:name="commentary" href="#M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2" class="commentary"/>Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments.</p></content></level></subsection><subsection eId="section-11-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-authorised-person" eId="term-relevant-authorised-person">Relevant authorised person</term>” means a PRA-authorised person which—</p></intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-11-4-c"><num>(c)</num><content><p>is not an insurer.</p></content></level></subsection><subsection eId="section-11-5"><num>(5)</num><content><p>Condition A is that the <abbr class="acronym" title="United Kingdom">UK</abbr> institution has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection eId="section-11-6"><num>(6)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-11-6-a"><num>(a)</num><content><p>the institution is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-11-6-b"><num>(b)</num><content><p>it has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-11-6-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection eId="section-11-7"><num>(7)</num><intro><p>In subsections (4) to (6)—</p></intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-11-7-c"><num>(c)</num><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” and “<term refersTo="#term-pra-regulated-activity" eId="term-pra-regulated-activity">PRA-regulated activity</term>” have the same meaning as in FSMA 2000.</p></content></level></subsection><subsection eId="section-11-8"><num>(8)</num><content><p>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.</p></content></subsection></section><section eId="section-12"><num>12</num><heading>Right to obtain documents and information</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>A review panel appointed under section 8 or 10—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p>may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.</p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>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.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8"><num>8</num><heading>Independent review of operation of legislation relating to ring-fencing</heading><subsection eId="section-8-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-8-2"><num>(2)</num><intro><p>“<term refersTo="#term-the-legislation-relating-to-ring-fencing" eId="term-the-legislation-relating-to-ring-fencing">The legislation relating to ring-fencing</term>” means—</p></intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content><p>Part 9B of FSMA 2000 (as inserted by section 4);</p></content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content><p>orders and regulations made by the Treasury under that Part;</p></content></level><level class="para1" eId="section-8-2-c"><num>(c)</num><content><p>ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;</p></content></level><level class="para1" eId="section-8-2-d"><num>(d)</num><content><p>section 192JA of FSMA 2000 (as inserted by section 133);</p></content></level><level class="para1" eId="section-8-2-e"><num>(e)</num><content><p>rules made by the FCA or the PRA under that section.</p></content></level></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-8-4-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level></subsection><level class="para1" eId="section-8-b"><num>(b)</num><content><p>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.</p></content></level><subsection eId="section-8-5"><num>(5)</num><intro><p>In appointing the members of the review panel, the Treasury—</p></intro><level class="para1" eId="section-8-5-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-8-5-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-8-6"><num>(6)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection><subsection eId="section-8-7"><num>(7)</num><intro><p>The reference in subsection (6) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-8-7-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-8-7-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection><subsection eId="section-8-8"><num>(8)</num><content><p>The Treasury must appoint one of the members of the review panel to be the chair of the panel.</p></content></subsection><subsection eId="section-8-9"><num>(9)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-8-9-a"><num>(a)</num><content><p>setting out the results of the review, and</p></content></level><level class="para1" eId="section-8-9-b"><num>(b)</num><content><p>making such recommendations (if any) as the panel considers appropriate.</p></content></level></subsection><subsection eId="section-8-10"><num>(10)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-8-10-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-8-10-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection><subsection eId="section-8-11"><num>(11)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-2"><num>(2)</num><intro><p>“<term refersTo="#term-the-legislation-relating-to-ring-fencing" eId="term-the-legislation-relating-to-ring-fencing">The legislation relating to ring-fencing</term>” means—</p></intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content><p>Part 9B of FSMA 2000 (as inserted by section 4);</p></content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content><p>orders and regulations made by the Treasury under that Part;</p></content></level><level class="para1" eId="section-8-2-c"><num>(c)</num><content><p>ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;</p></content></level><level class="para1" eId="section-8-2-d"><num>(d)</num><content><p>section 192JA of FSMA 2000 (as inserted by section 133);</p></content></level><level class="para1" eId="section-8-2-e"><num>(e)</num><content><p>rules made by the FCA or the PRA under that section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-a"><num>(a)</num><content><p>Part 9B of FSMA 2000 (as inserted by section 4);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-b"><num>(b)</num><content><p>orders and regulations made by the Treasury under that Part;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-c"><num>(c)</num><content><p>ring-fencing rules, as defined by section 142H(3) of FSMA 2000, made by the FCA or the PRA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-d"><num>(d)</num><content><p>section 192JA of FSMA 2000 (as inserted by section 133);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-e"><num>(e)</num><content><p>rules made by the FCA or the PRA under that section.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-4"><num>(4)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-8-4-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-4-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-5"><num>(5)</num><intro><p>In appointing the members of the review panel, the Treasury—</p></intro><level class="para1" eId="section-8-5-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-8-5-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-5-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-5-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-6"><num>(6)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-7"><num>(7)</num><intro><p>The reference in subsection (6) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-8-7-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-8-7-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-7-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-7-b"><num>(b)</num><content><p>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;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-8"><num>(8)</num><content><p>The Treasury must appoint one of the members of the review panel to be the chair of the panel.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-9"><num>(9)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-8-9-a"><num>(a)</num><content><p>setting out the results of the review, and</p></content></level><level class="para1" eId="section-8-9-b"><num>(b)</num><content><p>making such recommendations (if any) as the panel considers appropriate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-9-a"><num>(a)</num><content><p>setting out the results of the review, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-9-b"><num>(b)</num><content><p>making such recommendations (if any) as the panel considers appropriate.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-10"><num>(10)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-8-10-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-8-10-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-10-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-10-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-11"><num>(11)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9"><num>9</num><heading>PRA review of proprietary trading</heading><subsection eId="section-9-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-9-3"><num>(3)</num><intro><p>On completion of the review, the PRA must make a written report to the Treasury on—</p></intro><level class="para1" eId="section-9-3-a"><num>(a)</num><content><p>the extent to which relevant authorised persons engage in proprietary trading;</p></content></level><level class="para1" eId="section-9-3-b"><num>(b)</num><content><p>whether proprietary trading engaged in by relevant authorised persons gives rise to any risks to their safety and soundness;</p></content></level><level class="para1" eId="section-9-3-c"><num>(c)</num><content><p>whether any kinds of proprietary trading are particularly likely to give rise to such risks;</p></content></level><level class="para1" eId="section-9-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-3-e"><num>(e)</num><content><p>any difficulties encountered by the PRA in seeking to minimise such risks.</p></content></level></subsection><subsection eId="section-9-4"><num>(4)</num><content><p>The report must include an assessment by the PRA of each of the following—</p></content></subsection><level class="para1" eId="section-9-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-b"><num>(b)</num><content><p>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).</p></content></level><subsection eId="section-9-5"><num>(5)</num><content><p>The report must be made within 9 months of the beginning of the review.</p></content></subsection><subsection eId="section-9-6"><num>(6)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection><subsection eId="section-9-7"><num>(7)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection><subsection eId="section-9-8"><num>(8)</num><content><p>The functions of the PRA under this section are to be taken for the purposes of FSMA 2000 to be functions under that Act.</p></content></subsection><subsection eId="section-9-9"><num>(9)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-3"><num>(3)</num><intro><p>On completion of the review, the PRA must make a written report to the Treasury on—</p></intro><level class="para1" eId="section-9-3-a"><num>(a)</num><content><p>the extent to which relevant authorised persons engage in proprietary trading;</p></content></level><level class="para1" eId="section-9-3-b"><num>(b)</num><content><p>whether proprietary trading engaged in by relevant authorised persons gives rise to any risks to their safety and soundness;</p></content></level><level class="para1" eId="section-9-3-c"><num>(c)</num><content><p>whether any kinds of proprietary trading are particularly likely to give rise to such risks;</p></content></level><level class="para1" eId="section-9-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-9-3-e"><num>(e)</num><content><p>any difficulties encountered by the PRA in seeking to minimise such risks.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-3-a"><num>(a)</num><content><p>the extent to which relevant authorised persons engage in proprietary trading;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-3-b"><num>(b)</num><content><p>whether proprietary trading engaged in by relevant authorised persons gives rise to any risks to their safety and soundness;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-3-c"><num>(c)</num><content><p>whether any kinds of proprietary trading are particularly likely to give rise to such risks;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-3-d"><num>(d)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-3-e"><num>(e)</num><content><p>any difficulties encountered by the PRA in seeking to minimise such risks.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-4"><num>(4)</num><content><p>The report must include an assessment by the PRA of each of the following—</p></content></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-9-b"><num>(b)</num><content><p>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).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-5"><num>(5)</num><content><p>The report must be made within 9 months of the beginning of the review.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-6"><num>(6)</num><content><p>The Treasury must lay a copy of the report before Parliament.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-7"><num>(7)</num><content><p>The PRA must publish the report in such manner as it thinks fit.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-8"><num>(8)</num><content><p>The functions of the PRA under this section are to be taken for the purposes of FSMA 2000 to be functions under that Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-9"><num>(9)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10"><num>10</num><heading>Independent review of proprietary trading</heading><subsection eId="section-10-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-10-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-10-3"><num>(3)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-10-3-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level><level class="para1" eId="section-10-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-10-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-10-5"><num>(5)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection><subsection eId="section-10-6"><num>(6)</num><intro><p>The reference in subsection (5) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-10-6-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-10-6-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection><subsection eId="section-10-7"><num>(7)</num><content><p>If the review panel consists of two or more members, the Treasury must appoint one of them to be the chair of the panel.</p></content></subsection><subsection eId="section-10-8"><num>(8)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-10-8-a"><num>(a)</num><content><p>stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,</p></content></level><level class="para1" eId="section-10-8-b"><num>(b)</num><content><p>stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and</p></content></level><level class="para1" eId="section-10-8-c"><num>(c)</num><content><p>making such other recommendations as the panel thinks fit.</p></content></level></subsection><subsection eId="section-10-9"><num>(9)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-10-9-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-10-9-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection><subsection eId="section-10-10"><num>(10)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection><subsection eId="section-10-11"><num>(11)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-3"><num>(3)</num><intro><p>The members of the review panel must be persons—</p></intro><level class="para1" eId="section-10-3-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level><level class="para1" eId="section-10-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-3-a"><num>(a)</num><content><p>who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-3-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-5"><num>(5)</num><content><p>Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-6"><num>(6)</num><intro><p>The reference in subsection (5) to the Treasury Committee of the House of Commons—</p></intro><level class="para1" eId="section-10-6-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level><level class="para1" eId="section-10-6-b"><num>(b)</num><content><p>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;</p></content></level><wrapUp><p>and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-6-a"><num>(a)</num><content><p>if the name of that Committee is changed, is a reference to that Committee by its new name, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-6-b"><num>(b)</num><content><p>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;</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-7"><num>(7)</num><content><p>If the review panel consists of two or more members, the Treasury must appoint one of them to be the chair of the panel.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-8"><num>(8)</num><intro><p>The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—</p></intro><level class="para1" eId="section-10-8-a"><num>(a)</num><content><p>stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,</p></content></level><level class="para1" eId="section-10-8-b"><num>(b)</num><content><p>stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and</p></content></level><level class="para1" eId="section-10-8-c"><num>(c)</num><content><p>making such other recommendations as the panel thinks fit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-8-a"><num>(a)</num><content><p>stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-8-b"><num>(b)</num><content><p>stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-8-c"><num>(c)</num><content><p>making such other recommendations as the panel thinks fit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-9"><num>(9)</num><intro><p>The Treasury must—</p></intro><level class="para1" eId="section-10-9-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level><level class="para1" eId="section-10-9-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-9-a"><num>(a)</num><content><p>lay a copy of the report before Parliament, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-9-b"><num>(b)</num><content><p>publish the report in such manner as they think fit.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-10"><num>(10)</num><content><p>Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-11"><num>(11)</num><content><p>This section is to be read with the interpretative provisions in section 11.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-11"><num>11</num><heading>Reviews of proprietary trading: interpretation</heading><subsection eId="section-11-1"><num>(1)</num><content><p>This section has effect for the interpretation of sections 9 and 10.</p></content></subsection><subsection eId="section-11-2"><num>(2)</num><content><p>A person engages in “proprietary trading” where the person trades in commodities or financial instruments as principal.</p></content></subsection><subsection eId="section-11-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-11-3-a"><num>(a)</num><content><p>“<term refersTo="#term-commodity" eId="term-commodity">commodity</term>” 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;</p></content></level><level class="para1" eId="section-11-3-b"><num>(b)</num><content><p>“<term refersTo="#term-financial-instrument" eId="term-financial-instrument">financial instrument</term>” includes anything specified in Section C of Annex I to <ins class="first last" ukl:ChangeId="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2-1507033782715" ukl:CommentaryRef="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2"><noteRef uk:name="commentary" href="#M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2" class="commentary"/>Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments.</p></content></level></subsection><subsection eId="section-11-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-authorised-person" eId="term-relevant-authorised-person">Relevant authorised person</term>” means a PRA-authorised person which—</p></intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-11-4-c"><num>(c)</num><content><p>is not an insurer.</p></content></level></subsection><subsection eId="section-11-5"><num>(5)</num><content><p>Condition A is that the <abbr class="acronym" title="United Kingdom">UK</abbr> institution has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection eId="section-11-6"><num>(6)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-11-6-a"><num>(a)</num><content><p>the institution is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-11-6-b"><num>(b)</num><content><p>it has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-11-6-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection eId="section-11-7"><num>(7)</num><intro><p>In subsections (4) to (6)—</p></intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-11-7-c"><num>(c)</num><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” and “<term refersTo="#term-pra-regulated-activity" eId="term-pra-regulated-activity">PRA-regulated activity</term>” have the same meaning as in FSMA 2000.</p></content></level></subsection><subsection eId="section-11-8"><num>(8)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-1"><num>(1)</num><content><p>This section has effect for the interpretation of sections 9 and 10.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-2"><num>(2)</num><content><p>A person engages in “proprietary trading” where the person trades in commodities or financial instruments as principal.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-11-3"><num>(3)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-11-3-a"><num>(a)</num><content><p>“<term refersTo="#term-commodity" eId="term-commodity">commodity</term>” 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;</p></content></level><level class="para1" eId="section-11-3-b"><num>(b)</num><content><p>“<term refersTo="#term-financial-instrument" eId="term-financial-instrument">financial instrument</term>” includes anything specified in Section C of Annex I to <ins class="first last" ukl:ChangeId="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2-1507033782715" ukl:CommentaryRef="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2"><noteRef uk:name="commentary" href="#M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2" class="commentary"/>Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-3-a"><num>(a)</num><content><p>“<term refersTo="#term-commodity" eId="term-commodity">commodity</term>” 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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-11-3-b"><num>(b)</num><content><p>“<term refersTo="#term-financial-instrument" eId="term-financial-instrument">financial instrument</term>” includes anything specified in Section C of Annex I to <ins class="first last" ukl:ChangeId="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2-1507033782715" ukl:CommentaryRef="M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2"><noteRef uk:name="commentary" href="#M_F_b2acb4e2-a70b-484b-d395-672eab6f4cf2" class="commentary"/>Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-authorised-person" eId="term-relevant-authorised-person">Relevant authorised person</term>” means a PRA-authorised person which—</p></intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-11-4-c"><num>(c)</num><content><p>is not an insurer.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-4-a"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-4-b"><num>(b)</num><content><p>meets condition A or B, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-4-c"><num>(c)</num><content><p>is not an insurer.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-5"><num>(5)</num><content><p>Condition A is that the <abbr class="acronym" title="United Kingdom">UK</abbr> institution has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-6"><num>(6)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-11-6-a"><num>(a)</num><content><p>the institution is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-11-6-b"><num>(b)</num><content><p>it has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-11-6-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-6-a"><num>(a)</num><content><p>the institution is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-6-b"><num>(b)</num><content><p>it has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-6-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-7"><num>(7)</num><intro><p>In subsections (4) to (6)—</p></intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-11-7-c"><num>(c)</num><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” and “<term refersTo="#term-pra-regulated-activity" eId="term-pra-regulated-activity">PRA-regulated activity</term>” have the same meaning as in FSMA 2000.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-7-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-7-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-7-c"><num>(c)</num><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” and “<term refersTo="#term-pra-regulated-activity" eId="term-pra-regulated-activity">PRA-regulated activity</term>” have the same meaning as in FSMA 2000.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-8"><num>(8)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12"><num>12</num><heading>Right to obtain documents and information</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>A review panel appointed under section 8 or 10—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p>may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.</p></content></level></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-1"><num>(1)</num><intro><p>A review panel appointed under section 8 or 10—</p></intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content><p>may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-1-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-1-b"><num>(b)</num><content><p>may require any person holding or accountable for any such document to provide such information and explanation as are reasonably necessary for that purpose.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-2"><num>(2)</num><content><p>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.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-2"><num><b>PART 2</b></num><heading>Depositor preference and the Financial Services Compensation Scheme</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-depositor-preference"><heading><i>Depositor preference</i></heading><section eId="section-13"><num>13</num><heading>Preferential debts: Great Britain</heading><subsection eId="section-13-1"><num>(1)</num><content><p><mod>In Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) after paragraph 15A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Category 7: Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>15B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><i>Interpretation for Category 7</i></heading><paragraph class="schProv1"><num>15C</num><subparagraph><num>(1)</num><content><p>In paragraph 15B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 1(2)(b) of the Dormant Bank and Building Society Accounts Act 2008 (balances transferred under that Act to authorised reclaim fund).</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p><mod>In section 386 of the Insolvency Act 1986 (categories of preferential debt), in subsection (1), after “production” insert <quotedText>“
; deposits covered by Financial Services Compensation Scheme
”</quotedText>.</mod></p></content></subsection><subsection eId="section-13-3"><num>(3)</num><content><p><mod>In Part 1 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (list of preferred debts), after paragraph 6A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>6B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-13-4"><num>(4)</num><content><p><mod>In Part 2 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (interpretation of Part 1), after paragraph 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Meaning of eligible deposit</i></heading><paragraph class="schProv1"><num>9A</num><subparagraph><num>(1)</num><content><p>In paragraph 6B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits).</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-financial-services-compensation-scheme"><heading><i>Financial Services Compensation Scheme</i></heading><section eId="section-14"><num>14</num><heading>Discharge of functions by the scheme manager</heading><content><p><mod>After section 224 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>224ZA</num><heading>Discharge of functions</heading><subsection><num>(1)</num><intro><p>In discharging its functions the scheme manager must have regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the need to ensure efficiency and effectiveness in the discharge of those functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>the need to minimise public expenditure attributable to loans made or other financial assistance given to the scheme manager for the purposes of the scheme.</p></content></level></subsection><subsection><num>(2)</num><content><p>In subsection (1)(b) “<term refersTo="#term-financial-assistance">financial assistance</term>” includes the giving of guarantees and indemnities and any other kind of financial assistance (actual or contingent).</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-15"><num><noteRef href="#key-7098bd526065db70f165a0375226c1dc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>15</num><heading>Power to require information from scheme manager</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section><section eId="section-16"><num>16</num><heading>Scheme manager: appointment of accounting officer</heading><subsection eId="section-16-1"><num>(1)</num><content><p>Section 212 of FSMA 2000 (the scheme manager of the Financial Services Compensation Scheme) is amended as follows.</p></content></subsection><subsection eId="section-16-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content><p>omit the “and” following paragraph (a),</p></content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>a chief executive (who is to be the accounting officer); and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content><p><mod>in paragraph (b), after “chairman” insert <quotedText>“
and chief executive
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-16-3"><num>(3)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content><p><mod>after “chairman”, in the first place, insert <quotedText>“
, chief executive
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content><p><mod>after “chairman”, in the second place, insert <quotedText>“
and the chief executive
”</quotedText>.</mod></p></content></level></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-depositor-preference"><heading><i>Depositor preference</i></heading><section eId="section-13"><num>13</num><heading>Preferential debts: Great Britain</heading><subsection eId="section-13-1"><num>(1)</num><content><p><mod>In Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) after paragraph 15A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Category 7: Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>15B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><i>Interpretation for Category 7</i></heading><paragraph class="schProv1"><num>15C</num><subparagraph><num>(1)</num><content><p>In paragraph 15B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 1(2)(b) of the Dormant Bank and Building Society Accounts Act 2008 (balances transferred under that Act to authorised reclaim fund).</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p><mod>In section 386 of the Insolvency Act 1986 (categories of preferential debt), in subsection (1), after “production” insert <quotedText>“
; deposits covered by Financial Services Compensation Scheme
”</quotedText>.</mod></p></content></subsection><subsection eId="section-13-3"><num>(3)</num><content><p><mod>In Part 1 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (list of preferred debts), after paragraph 6A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>6B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-13-4"><num>(4)</num><content><p><mod>In Part 2 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (interpretation of Part 1), after paragraph 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Meaning of eligible deposit</i></heading><paragraph class="schProv1"><num>9A</num><subparagraph><num>(1)</num><content><p>In paragraph 6B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits).</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13"><num>13</num><heading>Preferential debts: Great Britain</heading><subsection eId="section-13-1"><num>(1)</num><content><p><mod>In Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) after paragraph 15A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Category 7: Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>15B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><i>Interpretation for Category 7</i></heading><paragraph class="schProv1"><num>15C</num><subparagraph><num>(1)</num><content><p>In paragraph 15B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 1(2)(b) of the Dormant Bank and Building Society Accounts Act 2008 (balances transferred under that Act to authorised reclaim fund).</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p><mod>In section 386 of the Insolvency Act 1986 (categories of preferential debt), in subsection (1), after “production” insert <quotedText>“
; deposits covered by Financial Services Compensation Scheme
”</quotedText>.</mod></p></content></subsection><subsection eId="section-13-3"><num>(3)</num><content><p><mod>In Part 1 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (list of preferred debts), after paragraph 6A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>6B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-13-4"><num>(4)</num><content><p><mod>In Part 2 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (interpretation of Part 1), after paragraph 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Meaning of eligible deposit</i></heading><paragraph class="schProv1"><num>9A</num><subparagraph><num>(1)</num><content><p>In paragraph 6B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits).</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13-1"><num>(1)</num><content><p><mod>In Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) after paragraph 15A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Category 7: Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>15B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading><i>Interpretation for Category 7</i></heading><paragraph class="schProv1"><num>15C</num><subparagraph><num>(1)</num><content><p>In paragraph 15B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in—</p></intro><level class="para1"><num>(a)</num><content><p>paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits), or</p></content></level><level class="para1"><num>(b)</num><content><p>section 1(2)(b) of the Dormant Bank and Building Society Accounts Act 2008 (balances transferred under that Act to authorised reclaim fund).</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-2"><num>(2)</num><content><p><mod>In section 386 of the Insolvency Act 1986 (categories of preferential debt), in subsection (1), after “production” insert <quotedText>“
; deposits covered by Financial Services Compensation Scheme
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13-3"><num>(3)</num><content><p><mod>In Part 1 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (list of preferred debts), after paragraph 6A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Deposits covered by Financial Services Compensation Scheme</i></heading><paragraph class="schProv1"><num>6B</num><content><p>So much of any amount owed at the relevant date by the debtor in respect of an eligible deposit as does not exceed the compensation that would be payable in respect of the deposit under the Financial Services Compensation Scheme to the person or persons to whom the amount is owed.</p></content></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-13-4"><num>(4)</num><content><p><mod>In Part 2 of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (interpretation of Part 1), after paragraph 9 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><hcontainer name="crossheading" class="schGroup7"><heading><i>Meaning of eligible deposit</i></heading><paragraph class="schProv1"><num>9A</num><subparagraph><num>(1)</num><content><p>In paragraph 6B “<term refersTo="#term-eligible-deposit">eligible deposit</term>” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.</p></content></subparagraph><subparagraph><num>(2)</num><content><p>For this purpose a “<term refersTo="#term-deposit">deposit</term>” means rights of the kind described in paragraph 22 of Schedule 2 to the Financial Services and Markets Act 2000 (deposits).</p></content></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-financial-services-compensation-scheme"><heading><i>Financial Services Compensation Scheme</i></heading><section eId="section-14"><num>14</num><heading>Discharge of functions by the scheme manager</heading><content><p><mod>After section 224 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>224ZA</num><heading>Discharge of functions</heading><subsection><num>(1)</num><intro><p>In discharging its functions the scheme manager must have regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the need to ensure efficiency and effectiveness in the discharge of those functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>the need to minimise public expenditure attributable to loans made or other financial assistance given to the scheme manager for the purposes of the scheme.</p></content></level></subsection><subsection><num>(2)</num><content><p>In subsection (1)(b) “<term refersTo="#term-financial-assistance">financial assistance</term>” includes the giving of guarantees and indemnities and any other kind of financial assistance (actual or contingent).</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-15"><num><noteRef href="#key-7098bd526065db70f165a0375226c1dc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>15</num><heading>Power to require information from scheme manager</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section><section eId="section-16"><num>16</num><heading>Scheme manager: appointment of accounting officer</heading><subsection eId="section-16-1"><num>(1)</num><content><p>Section 212 of FSMA 2000 (the scheme manager of the Financial Services Compensation Scheme) is amended as follows.</p></content></subsection><subsection eId="section-16-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content><p>omit the “and” following paragraph (a),</p></content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>a chief executive (who is to be the accounting officer); and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content><p><mod>in paragraph (b), after “chairman” insert <quotedText>“
and chief executive
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-16-3"><num>(3)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content><p><mod>after “chairman”, in the first place, insert <quotedText>“
, chief executive
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content><p><mod>after “chairman”, in the second place, insert <quotedText>“
and the chief executive
”</quotedText>.</mod></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-14"><num>14</num><heading>Discharge of functions by the scheme manager</heading><content><p><mod>After section 224 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>224ZA</num><heading>Discharge of functions</heading><subsection><num>(1)</num><intro><p>In discharging its functions the scheme manager must have regard to—</p></intro><level class="para1"><num>(a)</num><content><p>the need to ensure efficiency and effectiveness in the discharge of those functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>the need to minimise public expenditure attributable to loans made or other financial assistance given to the scheme manager for the purposes of the scheme.</p></content></level></subsection><subsection><num>(2)</num><content><p>In subsection (1)(b) “<term refersTo="#term-financial-assistance">financial assistance</term>” includes the giving of guarantees and indemnities and any other kind of financial assistance (actual or contingent).</p></content></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-15"><num><noteRef href="#key-7098bd526065db70f165a0375226c1dc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>15</num><heading>Power to require information from scheme manager</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16"><num>16</num><heading>Scheme manager: appointment of accounting officer</heading><subsection eId="section-16-1"><num>(1)</num><content><p>Section 212 of FSMA 2000 (the scheme manager of the Financial Services Compensation Scheme) is amended as follows.</p></content></subsection><subsection eId="section-16-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content><p>omit the “and” following paragraph (a),</p></content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>a chief executive (who is to be the accounting officer); and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content><p><mod>in paragraph (b), after “chairman” insert <quotedText>“
and chief executive
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-16-3"><num>(3)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content><p><mod>after “chairman”, in the first place, insert <quotedText>“
, chief executive
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content><p><mod>after “chairman”, in the second place, insert <quotedText>“
and the chief executive
”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-1"><num>(1)</num><content><p>Section 212 of FSMA 2000 (the scheme manager of the Financial Services Compensation Scheme) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16-2"><num>(2)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content><p>omit the “and” following paragraph (a),</p></content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>a chief executive (who is to be the accounting officer); and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content><p><mod>in paragraph (b), after “chairman” insert <quotedText>“
and chief executive
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-a"><num>(a)</num><content><p>omit the “and” following paragraph (a),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-16-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>a chief executive (who is to be the accounting officer); and</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-c"><num>(c)</num><content><p><mod>in paragraph (b), after “chairman” insert <quotedText>“
and chief executive
”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-3"><num>(3)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content><p><mod>after “chairman”, in the first place, insert <quotedText>“
, chief executive
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content><p><mod>after “chairman”, in the second place, insert <quotedText>“
and the chief executive
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-3-a"><num>(a)</num><content><p><mod>after “chairman”, in the first place, insert <quotedText>“
, chief executive
”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-3-b"><num>(b)</num><content><p><mod>after “chairman”, in the second place, insert <quotedText>“
and the chief executive
”</quotedText>.</mod></p></content></level>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-3"><num><b>PART 3</b></num><heading>Bail-in stabilisation option</heading><section eId="section-17"><num>17</num><heading>Bail-in stabilisation option</heading><subsection eId="section-17-1"><num>(1)</num><content><p>Schedule 2 (which contains amendments relating to a new stabilisation option in Part 1 of the Banking Act 2009) has effect.</p></content></subsection><subsection eId="section-17-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-17-3"><num>(3)</num><intro><p>An order may, in particular—</p></intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro><p>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—</p></intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content><p>to convert the building society into a company, or</p></content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content><p>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;</p></content></level></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-17-3-c"><num>(c)</num><intro><p>provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—</p></intro><level class="para2" eId="section-17-3-c-i"><num>(i)</num><content><p>into which the building society is converted, or</p></content></level><level class="para2" eId="section-17-3-c-ii"><num>(ii)</num><content><p>to which the business of the building society is transferred;</p></content></level></level><level class="para1" eId="section-17-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-17-3-e"><num>(e)</num><content><p>confer functions on the Treasury, the Bank of England, the FCA, the PRA or a <ins class="substitution first last" ukl:ChangeId="key-ce545915e6ff2ec4429cff840c07b82f-1489703611125" ukl:CommentaryRef="key-ce545915e6ff2ec4429cff840c07b82f"><noteRef uk:name="commentary" href="#key-ce545915e6ff2ec4429cff840c07b82f" class="commentary"/>resolution administrator</ins>;</p></content></level><level class="para1" eId="section-17-3-f"><num>(f)</num><content><p>make further amendments of Part 1 of the Banking Act 2009;</p></content></level><level class="para1" eId="section-17-3-g"><num>(g)</num><content><p>amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.</p></content></level></subsection><subsection eId="section-17-4"><num>(4)</num><intro><p>Subsection (3) applies to any enactment (including a fiscal enactment) passed or made—</p></intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content><p>before the passing of this Act, or</p></content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content><p>on or before the last day of the Session in which this Act is passed.</p></content></level></subsection><subsection eId="section-17-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p><noteRef href="#key-354c17b090149e9233023ed54aec99df" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in section 84 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company as defined in section 1(1) of the Companies Act 2006 which is a public company limited by shares.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-cc078d97971341a9c1b72776e253854c-1489703577599" ukl:CommentaryRef="key-cc078d97971341a9c1b72776e253854c"><noteRef uk:name="commentary" href="#key-cc078d97971341a9c1b72776e253854c" class="commentary"/>“resolution administrator” is to be read in accordance with sections 62B to 62E of the Banking Act 2009.</ins> </p></content></hcontainer></subsection></section></part>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-17"><num>17</num><heading>Bail-in stabilisation option</heading><subsection eId="section-17-1"><num>(1)</num><content><p>Schedule 2 (which contains amendments relating to a new stabilisation option in Part 1 of the Banking Act 2009) has effect.</p></content></subsection><subsection eId="section-17-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-17-3"><num>(3)</num><intro><p>An order may, in particular—</p></intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro><p>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—</p></intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content><p>to convert the building society into a company, or</p></content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content><p>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;</p></content></level></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-17-3-c"><num>(c)</num><intro><p>provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—</p></intro><level class="para2" eId="section-17-3-c-i"><num>(i)</num><content><p>into which the building society is converted, or</p></content></level><level class="para2" eId="section-17-3-c-ii"><num>(ii)</num><content><p>to which the business of the building society is transferred;</p></content></level></level><level class="para1" eId="section-17-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-17-3-e"><num>(e)</num><content><p>confer functions on the Treasury, the Bank of England, the FCA, the PRA or a <ins class="substitution first last" ukl:ChangeId="key-ce545915e6ff2ec4429cff840c07b82f-1489703611125" ukl:CommentaryRef="key-ce545915e6ff2ec4429cff840c07b82f"><noteRef uk:name="commentary" href="#key-ce545915e6ff2ec4429cff840c07b82f" class="commentary"/>resolution administrator</ins>;</p></content></level><level class="para1" eId="section-17-3-f"><num>(f)</num><content><p>make further amendments of Part 1 of the Banking Act 2009;</p></content></level><level class="para1" eId="section-17-3-g"><num>(g)</num><content><p>amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.</p></content></level></subsection><subsection eId="section-17-4"><num>(4)</num><intro><p>Subsection (3) applies to any enactment (including a fiscal enactment) passed or made—</p></intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content><p>before the passing of this Act, or</p></content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content><p>on or before the last day of the Session in which this Act is passed.</p></content></level></subsection><subsection eId="section-17-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p><noteRef href="#key-354c17b090149e9233023ed54aec99df" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in section 84 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company as defined in section 1(1) of the Companies Act 2006 which is a public company limited by shares.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-cc078d97971341a9c1b72776e253854c-1489703577599" ukl:CommentaryRef="key-cc078d97971341a9c1b72776e253854c"><noteRef uk:name="commentary" href="#key-cc078d97971341a9c1b72776e253854c" class="commentary"/>“resolution administrator” is to be read in accordance with sections 62B to 62E of the Banking Act 2009.</ins> </p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-1"><num>(1)</num><content><p>Schedule 2 (which contains amendments relating to a new stabilisation option in Part 1 of the Banking Act 2009) has effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-17-3"><num>(3)</num><intro><p>An order may, in particular—</p></intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro><p>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—</p></intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content><p>to convert the building society into a company, or</p></content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content><p>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;</p></content></level></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-17-3-c"><num>(c)</num><intro><p>provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—</p></intro><level class="para2" eId="section-17-3-c-i"><num>(i)</num><content><p>into which the building society is converted, or</p></content></level><level class="para2" eId="section-17-3-c-ii"><num>(ii)</num><content><p>to which the business of the building society is transferred;</p></content></level></level><level class="para1" eId="section-17-3-d"><num>(d)</num><content><p>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;</p></content></level><level class="para1" eId="section-17-3-e"><num>(e)</num><content><p>confer functions on the Treasury, the Bank of England, the FCA, the PRA or a <ins class="substitution first last" ukl:ChangeId="key-ce545915e6ff2ec4429cff840c07b82f-1489703611125" ukl:CommentaryRef="key-ce545915e6ff2ec4429cff840c07b82f"><noteRef uk:name="commentary" href="#key-ce545915e6ff2ec4429cff840c07b82f" class="commentary"/>resolution administrator</ins>;</p></content></level><level class="para1" eId="section-17-3-f"><num>(f)</num><content><p>make further amendments of Part 1 of the Banking Act 2009;</p></content></level><level class="para1" eId="section-17-3-g"><num>(g)</num><content><p>amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-a"><num>(a)</num><intro><p>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—</p></intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content><p>to convert the building society into a company, or</p></content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content><p>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;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-17-3-a-i"><num>(i)</num><content><p>to convert the building society into a company, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-b"><num>(b)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-c"><num>(c)</num><intro><p>provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—</p></intro><level class="para2" eId="section-17-3-c-i"><num>(i)</num><content><p>into which the building society is converted, or</p></content></level><level class="para2" eId="section-17-3-c-ii"><num>(ii)</num><content><p>to which the business of the building society is transferred;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-17-3-c-i"><num>(i)</num><content><p>into which the building society is converted, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-17-3-c-ii"><num>(ii)</num><content><p>to which the business of the building society is transferred;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-d"><num>(d)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-17-3-e"><num>(e)</num><content><p>confer functions on the Treasury, the Bank of England, the FCA, the PRA or a <ins class="substitution first last" ukl:ChangeId="key-ce545915e6ff2ec4429cff840c07b82f-1489703611125" ukl:CommentaryRef="key-ce545915e6ff2ec4429cff840c07b82f"><noteRef uk:name="commentary" href="#key-ce545915e6ff2ec4429cff840c07b82f" class="commentary"/>resolution administrator</ins>;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-f"><num>(f)</num><content><p>make further amendments of Part 1 of the Banking Act 2009;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-g"><num>(g)</num><content><p>amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-4"><num>(4)</num><intro><p>Subsection (3) applies to any enactment (including a fiscal enactment) passed or made—</p></intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content><p>before the passing of this Act, or</p></content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content><p>on or before the last day of the Session in which this Act is passed.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-4-a"><num>(a)</num><content><p>before the passing of this Act, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-4-b"><num>(b)</num><content><p>on or before the last day of the Session in which this Act is passed.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-17-5"><num>(5)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p><noteRef href="#key-354c17b090149e9233023ed54aec99df" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” has the same meaning as in section 84 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company as defined in section 1(1) of the Companies Act 2006 which is a public company limited by shares.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-cc078d97971341a9c1b72776e253854c-1489703577599" ukl:CommentaryRef="key-cc078d97971341a9c1b72776e253854c"><noteRef uk:name="commentary" href="#key-cc078d97971341a9c1b72776e253854c" class="commentary"/>“resolution administrator” is to be read in accordance with sections 62B to 62E of the Banking Act 2009.</ins> </p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-core-services" eId="term-core-services">core services</term>” has the same meaning as in FSMA 2000 (see section 142C of that Act), and</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>In this Schedule—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>references to the functions of the Regulator are to functions conferred on it by or under this Part.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Payment Systems Regulator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>references to the functions of the Regulator are to functions conferred on it by or under this Part.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p>The Regulator must adopt an annual budget which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>The budget must be adopted—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the budget for a financial year at any time after its adoption.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-4"><num>(4)</num><intro><p>Before adopting or varying a budget, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-4-4-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-4-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-5"><num>(5)</num><content><p>The Regulator must publish each budget, and each variation of a budget, in the way it considers appropriate.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><content><p>At least once a year, the Regulator must make a report to the FCA in relation to the discharge of its functions.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><intro><p>The report must—</p></intro><level class="para1" eId="schedule-4-paragraph-7-2-a"><num>(a)</num><content><p>set out the extent to which the Regulator has met its aims and priorities for the period covered by the report,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-b"><num>(b)</num><content><p>set out the extent to which the Regulator has advanced its payment systems objectives,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-ba"><num><ins class="first" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b"><noteRef uk:name="commentary" href="#key-d8ba6dc64d472e2f5694c994eaa1726b" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out any engagement with a statutory panel established under section 103(3),</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-bb"><num><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out how the Regulator has complied with the statement of policy on panel appointments prepared under section 104I in relation to the process for making appointments and the matters considered in determining who is appointed,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-c"><num>(c)</num><content><p>include a copy of its latest accounts, and</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-d"><num>(d)</num><content><p>comply with any requirement specified in rules made by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-3"><num>(3)</num><content><p>The Regulator must publish each report in the way it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-4"><num>(4)</num><content><p>Nothing in this paragraph requires the Regulator to make a report at any time in the period of 12 months beginning with its establishment.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-5"><num>(5)</num><intro><p>The Treasury may—</p></intro><level class="para1" eId="schedule-4-paragraph-7-5-a"><num>(a)</num><content><p>require the Regulator to comply with any provision of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or</p></content></level><level class="para1" eId="schedule-4-paragraph-7-5-b"><num>(b)</num><content><p>direct that any provision of that Act about accounts and their audit is to apply to the Regulator with such modifications as are specified in the direction, whether or not the provision would otherwise apply to it.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-7"><num>(7)</num><content><p>Proceedings under sub-paragraph (6) may be brought only by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-8"><num>(8)</num><content><p>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).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-4-paragraph-10-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-3"><num>(3)</num><intro><p>The Regulator's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—</p></intro><level class="para1" eId="schedule-4-paragraph-10-3-a"><num>(a)</num><content><p>the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-3-b"><num>(b)</num><content><p>the recovery of penalties imposed under section 73.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-4"><num>(4)</num><intro><p>For the purposes of sub-paragraph (3) the Regulator's enforcement powers are—</p></intro><level class="para1" eId="schedule-4-paragraph-10-4-a"><num>(a)</num><content><p>its powers under sections 72 to 75;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-b"><num>(b)</num><content><p>its powers under any other enactment specified by the Treasury by order;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-c"><num>(c)</num><content><p>its powers in relation to the investigation of relevant offences;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-d"><num>(d)</num><content><p>its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-5"><num>(5)</num><intro><p>In sub-paragraph (4) “<term refersTo="#term-relevant-offences" eId="term-relevant-offences">relevant offences</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-10-5-a"><num>(a)</num><content><p>offences under this Part;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-5-b"><num>(b)</num><content><p>any other offences specified by the Treasury by order.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-6"><num>(6)</num><content><p>The Treasury may give directions to the Regulator as to how it is to comply with its duty under sub-paragraph (1).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-7"><num>(7)</num><intro><p>The directions may in particular—</p></intro><level class="para1" eId="schedule-4-paragraph-10-7-a"><num>(a)</num><content><p>specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in sub-paragraph (3),</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-b"><num>(b)</num><content><p>relate to the calculation and timing of the deduction in respect of the Regulator's enforcement costs, and</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-c"><num>(c)</num><content><p>specify the time when any payment is required to be made to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-8"><num>(8)</num><intro><p>The directions may also require the Regulator to provide the Treasury at specified times with specified information relating to—</p></intro><level class="para1" eId="schedule-4-paragraph-10-8-a"><num>(a)</num><content><p>penalties that the Regulator has imposed under section 73, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-8-b"><num>(b)</num><content><p>the Regulator's enforcement costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-9"><num>(9)</num><content><p>The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-4-paragraph-11-1"><num>(1)</num><content><p>The Regulator must prepare and operate a scheme (“<term refersTo="#term-the-financial-penalty-scheme" eId="term-the-financial-penalty-scheme">the financial penalty scheme</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-2"><num>(2)</num><content><p>The financial penalty scheme may, in particular, make different provision with respect to different classes of participant.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-4"><num>(4)</num><content><p>Up-to-date details of the financial penalty scheme must be set out in a document (the “scheme details”).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-3"><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposals may be made to the Regulator within a specified time.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-4"><num>(4)</num><content><p>Before making the scheme, the Regulator must have regard to any representations made to it in accordance with sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-5"><num>(5)</num><intro><p>If the Regulator makes the proposed scheme, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-5-a"><num>(a)</num><content><p>the representations made to it in accordance with sub-paragraph (3), and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-7"><num>(7)</num><content><p>The Regulator must, without delay, give the Treasury a copy of any scheme details published by it.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-8"><num>(8)</num><intro><p>The Regulator may charge a reasonable fee for providing a person with a copy of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-8-a"><num>(a)</num><content><p>a draft published under sub-paragraph (2);</p></content></level><level class="para1" eId="schedule-4-paragraph-12-8-b"><num>(b)</num><content><p>scheme details.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-9"><num>(9)</num><content><p>Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset-exchange-provider"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset exchange provider</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 182(5B) of the Banking Act 2009;</ins> </p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>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.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content><p>An FMI transfer scheme may make incidental, supplemental, consequential and transitional provision in connection with the other provisions of the scheme.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><intro><p>An FMI transfer scheme may in particular make provision, in relation to a provision of the scheme—</p></intro><level class="para1" eId="schedule-7-paragraph-6-2-a"><num>(a)</num><content><p>for the new company to be treated as the same person in law as the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-b"><num>(b)</num><content><p>for agreements made, transactions effected or other things done by or in relation to the old company to be treated, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, as made, effected or done by or in relation to the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-c"><num>(c)</num><content><p>for references in an agreement, instrument or other document to the old company or to an employee or office holder with the old company to have effect, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, with such modifications as are specified in the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-d"><num>(d)</num><content><p>that the effect of any transfer in accordance with the scheme in relation to contracts of employment with the old company is not to terminate any of those contracts but is to be that periods of employment with that company are to count for all purposes as periods of employment with the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-e"><num>(e)</num><content><p>for proceedings commenced by or against the old company to be continued by or against the new company.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><p>Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-5-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-5-b"><num>(b)</num><content><p>section 64 of the Law of Property Act 1925 (production and safe custody of documents) is to have effect accordingly, and on the basis that the acknowledgement did not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-6-a"><num>(a)</num><content><p>as if the transfer had been effected by deed, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-6-b"><num>(b)</num><content><p>as if the words “unless specially qualified” were omitted from each of those subsections.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-7-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-7-b"><num>(b)</num><content><p>section 9 of the Conveyancing Act 1881 is to have effect accordingly, and on the basis that the acknowledgement does not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-7-paragraph-9-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision about—</p></intro><level class="para1" eId="schedule-7-paragraph-9-1-a"><num>(a)</num><content><p>the transfer of foreign property, right and liabilities, and</p></content></level><level class="para1" eId="schedule-7-paragraph-9-1-b"><num>(b)</num><content><p>the creation of foreign property, rights and liabilities.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-9-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>Section 100 (regulated terms <abbr title="Et cetera" xml:lang="la">etc</abbr>: distributions and share rights) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p><mod>For subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>The terms of a transfer of a society's business may confer a right to acquire shares in the successor on a member of the society only if the member—</p></intro><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, holds deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><wrapUp><p>and it is unlawful for any right in relation to shares to be conferred in contravention of this subsection.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p><mod>In subsection (9), for the words from “who” to “and” substitute<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>who—</p><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, hold deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><p>and</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“payment system” has the meaning given by section 41;</p></content></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-4"><num><b>PART 4</b></num><heading>Conduct of persons working in financial services sector</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-amendments-of-fsma-2000"><heading><i>Amendments of </i>FSMA 2000</heading><section eId="section-18"><num>18</num><heading>Functions for which approval is required</heading><subsection eId="section-18-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subsection><subsection eId="section-18-2"><num>(2)</num><content><p>Omit subsection (5).</p></content></subsection><subsection eId="section-18-3"><num>(3)</num><content><p><mod>For subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>The PRA may specify a description of function under subsection (3)(a) only if, in relation to the carrying on of a regulated activity by a PRA-authorised person, it is satisfied that the function is a senior management function as defined in section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-18-4"><num><noteRef href="#key-ff2e9d4c9be3d95bb8a2d29f76a5ce4d" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-18-5"><num>(5)</num><content><p>Omit subsections (7) to (7B) and (11).</p></content></subsection></section><section eId="section-19"><num>19</num><heading>Senior management functions</heading><content><p><mod>After section 59 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59ZA</num><heading>Senior management functions</heading><subsection><num>(1)</num><content><p>This section has effect for determining whether a function is for the purposes of section 59(6) or (6A) a senior management function.</p></content></subsection><subsection><num>(2)</num><intro><p>A function is a “<term refersTo="#term-senior-management-function">senior management function</term>”, in relation to the carrying on of a regulated activity by an authorised person, if—</p></intro><level class="para1"><num>(a)</num><content><p>the function will require the person performing it to be responsible for managing one or more aspects of the authorised person's affairs, so far as relating to the activity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those aspects involve, or might involve, a risk of serious consequences—</p></intro><level class="para2"><num>(i)</num><content><p>for the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>for business or other interests in the United Kingdom.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>In subsection (2)(a) the reference to managing one or more aspects of an authorised person's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-20"><num>20</num><heading>Statements of responsibilities</heading><subsection eId="section-20-1"><num>(1)</num><content><p>Section 60 of FSMA 2000 (applications for approval) is amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>the application is for the approval of a person to perform a designated senior management function, and</p></content></level><level class="para1"><num>(b)</num><content><p>the authorised person concerned is a relevant authorised person (see section 71A),</p></content></level><wrapUp><p>the appropriate regulator must require the application to contain, or be accompanied by, a statement setting out the aspects of the affairs of the authorised person concerned which it is intended that the person will be responsible for managing in performing the function.</p></wrapUp></subsection><subsection><num>(2B)</num><content><p>A statement provided under subsection (2A) is known as a “statement of responsibilities”.</p></content></subsection><subsection><num>(2C)</num><content><p>In subsection (2A) “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-3"><num><noteRef href="#key-0d322dd3064f3520728110a3cb5985a5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(3)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Vetting by relevant authorised persons of candidates for approval</heading><content><p><mod>After section 60 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Vetting of candidates by relevant authorised persons</heading><subsection><num>(1)</num><content><p>Before a relevant authorised person may make an application for a regulator's approval under section 59, the authorised person must be satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates.</p></content></subsection><subsection><num>(2)</num><intro><p>In deciding that question, the authorised person must have regard, in particular, to whether the candidate, or any person who may perform a function on the candidate's behalf—</p></intro><level class="para1"><num>(a)</num><content><p>has obtained a qualification,</p></content></level><level class="para1"><num>(b)</num><content><p>has undergone, or is undergoing, training,</p></content></level><level class="para1"><num>(c)</num><content><p>possesses a level of competence, or</p></content></level><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level><wrapUp><p>required by general rules made by the regulator in relation to persons performing functions of the kind to which the application relates.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-22"><num>22</num><heading>Determination of applications for approval</heading><intro><p>In section 61 of FSMA 2000 (determination of applications), in subsection (2)—</p></intro><level class="para1" eId="section-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b), and</p></content></level><level class="para1" eId="section-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></section><section eId="section-23"><num>23</num><heading>Power to give approval subject to conditions or for limited period</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Section 61 of FSMA 2000 (determination of applications) is amended as follows.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>The regulator to which an application for approval is made under section 60 may grant the application only if—</p></intro><level class="para1"><num>(a)</num><content><p>it is satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the application is for approval to perform a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person (a “relevant senior management application”), it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (as to which, see subsection (2B)).</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-3"><num>(3)</num><content><p><mod>In subsection (2), for “deciding that question” substitute <quotedText>“
determining the application
”</quotedText>.</mod></p></content></subsection><subsection eId="section-23-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>The regulator to which a relevant senior management application is made under section 60 may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>grant the application subject to any conditions that the regulator considers appropriate, and</p></content></level><level class="para1"><num>(b)</num><content><p>grant the application so as to give approval only for a limited period.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>A regulator may exercise the power under paragraph (a) or (b) of subsection (2B) only if—</p></intro><level class="para1"><num>(a)</num><content><p>where the regulator is the FCA, it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives, and</p></content></level><level class="para1"><num>(b)</num><content><p>where the regulator is the PRA, it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(2D)</num><content><p>Consent given by the FCA for the granting of the application may be conditional on the manner in which the PRA exercises its power under subsection (2B).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-5"><num>(5)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3ZA)</num><content><p>In the case of a relevant senior management application, the reference in subsection (3)(a) to granting the application is a reference to granting it without imposing conditions or limiting the period for which the approval has effect.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-6"><num><noteRef href="#key-68a42ee3aeceaf80268d662c8db5d310" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(6)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-23-7"><num>(7)</num><intro><p>In section 62 of FSMA 2000 (applications for approval: procedure and right to refer to Tribunal)—</p></intro><level class="para1" eId="section-23-7-a"><num>(a)</num><content><p><mod>in subsection (2), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-b"><num>(b)</num><content><p><mod>in subsection (3), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-c"><num>(c)</num><content><p><mod>in subsection (4), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-24"><num>24</num><heading>Changes in responsibilities of senior managers</heading><content><p><mod>After section 62 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>62A</num><heading>Changes in responsibilities of senior managers</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an authorised person has made an application to the appropriate regulator for approval under section 59 for a person to perform a designated senior management function,</p></content></level><level class="para1"><num>(b)</num><content><p>the application contained, or was accompanied by, a statement of responsibilities under section 60(2A), and</p></content></level><level class="para1"><num>(c)</num><content><p>the application has been granted.</p></content></level></subsection><subsection><num>(2)</num><content><p>If, since the granting of the application, there has been any significant change in the aspects of the authorised person's affairs which the person is responsible for managing in performing the function, the authorised person must provide the appropriate regulator with a revised statement of responsibilities.</p></content></subsection><subsection><num>(3)</num><intro><p>The appropriate regulator may require the authorised person—</p></intro><level class="para1"><num>(a)</num><content><p>to provide information which the person is required to give under this section in such form as the appropriate regulator may direct, or</p></content></level><level class="para1"><num>(b)</num><content><p>to verify such information in such a way as the appropriate regulator may direct.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” has the same meaning as in section 60;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></section><section eId="section-25"><num>25</num><heading>Duty to notify regulator of grounds for withdrawal of approval</heading><content><p><mod>In section 63 of FSMA 2000 (withdrawal of approval), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>At least once a year each relevant authorised person must, in relation to every person in relation to whom an approval has been given on the application of the authorised person—</p></intro><level class="para1"><num>(a)</num><content><p>consider whether there are any grounds on which a regulator could withdraw the approval under this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>if the authorised person is of the opinion that there are such grounds, notify the regulator of those grounds.</p></content></level><wrapUp><p>(For the meaning of “relevant authorised person”, see section 71A.)</p></wrapUp></subsection></quotedStructure></mod></p></content></section><section eId="section-26"><num>26</num><heading>Variation of approval</heading><content><p><mod>After section 63 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>63ZA</num><heading>Variation of senior manager's approval at request of relevant authorised person</heading><subsection><num>(1)</num><intro><p>Where an application for approval under section 59 is granted subject to conditions, the authorised person concerned may apply to the appropriate regulator to vary the approval by—</p></intro><level class="para1"><num>(a)</num><content><p>varying a condition,</p></content></level><level class="para1"><num>(b)</num><content><p>removing a condition, or</p></content></level><level class="para1"><num>(c)</num><content><p>imposing a new condition.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“The appropriate regulator”—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an application for variation of an approval in a way described in subsection (1)(a) or (b), means whichever of the FCA or the PRA imposed the condition concerned;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an application for variation of an approval in the way described in subsection (1)(c), means the regulator who gave the approval.</p></content></level></subsection><subsection><num>(3)</num><content><p>The PRA must consult the FCA before determining an application under this section, unless the application relates to the variation or removal of a condition which was imposed by the PRA in exercise of its power under section 63ZB.</p></content></subsection><subsection><num>(4)</num><intro><p>The regulator to which an application is made under this section must, before the end of the period for consideration, determine whether—</p></intro><level class="para1"><num>(a)</num><content><p>to grant the application; or</p></content></level><level class="para1"><num>(b)</num><content><p>to give a warning notice under section 62(2).</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-period-for-consideration">The period for consideration</term>” means the period of 3 months beginning with the date on which the regulator receives the application.</p></content></subsection><subsection><num>(6)</num><content><p>The FCA may refuse an application under this section if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.</p></content></subsection><subsection><num>(7)</num><content><p>The PRA may refuse an application under this section if it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></subsection><subsection><num>(8)</num><content><p>The following provisions apply to an application made under this section for variation of an approval as they apply to an application for approval made under section 60—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(2) to (8),</p></item><item><p>section 61(4) and (5),</p></item><item><p>section 62.</p></item></blockList></content></subsection></section><section><num>63ZB</num><heading>Variation of senior manager's approval on initiative of regulator</heading><subsection><num>(1)</num><content><p>The FCA may vary an approval under section 59 given by the FCA or the PRA for the performance of a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person if the FCA considers that it is desirable to do so in order to advance one or more of its operational objectives.</p></content></subsection><subsection><num>(2)</num><intro><p>The PRA may vary an approval under section 59 for the performance of a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person if—</p></intro><level class="para1"><num>(a)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the PRA gave the approval, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the FCA gave the approval and the relevant authorised person is a PRA-authorised person, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the PRA considers that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A regulator may vary an approval by—</p></intro><level class="para1"><num>(a)</num><content><p>imposing a condition,</p></content></level><level class="para1"><num>(b)</num><content><p>varying a condition,</p></content></level><level class="para1"><num>(c)</num><content><p>removing a condition, or</p></content></level><level class="para1"><num>(d)</num><content><p>limiting the period for which the approval is to have effect.</p></content></level></subsection><subsection><num>(4)</num><content><p>Before one regulator varies an approval given by the other regulator, it must consult the other regulator.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection><subsection><num>(6)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>63ZC</num><heading>Exercise of power under section 63ZB: procedure</heading><subsection><num>(1)</num><content><p>This section applies to an exercise, by either regulator, of the power to vary an approval under section 63ZB.</p></content></subsection><subsection><num>(2)</num><intro><p>A variation takes effect—</p></intro><level class="para1"><num>(a)</num><content><p>immediately, if the notice given under subsection (4) states that that is the case,</p></content></level><level class="para1"><num>(b)</num><content><p>on such date as is specified in the notice, or</p></content></level><level class="para1"><num>(c)</num><content><p>if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.</p></content></level></subsection><subsection><num>(3)</num><content><p>A variation may be expressed to take effect immediately (or on a specified date) only if the regulator concerned, having regard to the ground on which it is exercising the power to vary, reasonably considers that it is necessary for the variation to take effect immediately (or on that date).</p></content></subsection><subsection><num>(4)</num><content><p>If either regulator proposes to vary an approval or varies an approval with immediate effect, it must give each of the interested parties written notice.</p></content></subsection><subsection><num>(5)</num><intro><p>The notice must—</p></intro><level class="para1"><num>(a)</num><content><p>give details of the variation,</p></content></level><level class="para1"><num>(b)</num><content><p>state the regulator's reasons for the variation,</p></content></level><level class="para1"><num>(c)</num><content><p>inform the interested parties that each of them may make representations to the regulator within such period as may be specified in the notice (whether or not any of the interested parties has referred the matter to the Tribunal),</p></content></level><level class="para1"><num>(d)</num><content><p>inform the interested parties of when the variation takes effect, and</p></content></level><level class="para1"><num>(e)</num><content><p>inform the interested parties of the right of each of them to refer the matter to the Tribunal.</p></content></level></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-interested-parties">The interested parties</term>”, in relation to an approval, are—</p></intro><level class="para1"><num>(a)</num><content><p>the person on whose application it was given (“A”),</p></content></level><level class="para1"><num>(b)</num><content><p>the person in respect of whom it was given (“B”), and</p></content></level><level class="para1"><num>(c)</num><content><p>the person by whom B's services are retained, if not A.</p></content></level></subsection><subsection><num>(7)</num><content><p>The regulator giving the notice may extend the period allowed under the notice for making representations.</p></content></subsection><subsection><num>(8)</num><intro><p>If having considered the representations made by the interested parties, the regulator decides—</p></intro><level class="para1"><num>(a)</num><content><p>to vary the approval, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the variation has taken effect, not to rescind it,</p></content></level><wrapUp><p>it must give each of the interested parties written notice.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>If having considered the representations made by the interested parties, the regulator decides—</p></intro><level class="para1"><num>(a)</num><content><p>not to vary the approval,</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the approval in a different way, or</p></content></level><level class="para1"><num>(c)</num><content><p>if the variation has taken effect, to rescind it,</p></content></level><wrapUp><p>it must give each of the interested parties written notice.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>A notice under subsection (8) must inform the interested parties of the right of each of them to refer the matter to the Tribunal.</p></content></subsection><subsection><num>(11)</num><content><p>A notice under subsection (9)(b) must comply with subsection (5).</p></content></subsection><subsection><num>(12)</num><content><p>If a notice informs the interested parties of the right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.</p></content></subsection><subsection><num>(13)</num><content><p>For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 391(8).</p></content></subsection><subsection><num>(14)</num><content><p>“<term refersTo="#term-approval">Approval</term>” means an approval under section 59.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-27"><num>27</num><heading>Statement of policy</heading><content><p><mod>After section 63ZC of FSMA 2000 (inserted by section 26 above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>63ZD</num><heading>Statement of policy relating to conditional approval and variation</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of its policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>its giving of approval under section 59 subject to conditions or for a limited period only, and</p></content></level><level class="para1"><num>(b)</num><content><p>its variation under section 63ZA or 63ZB of an approval given under section 59.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may at any time alter or replace a statement issued by it under this section.</p></content></subsection><subsection><num>(3)</num><content><p>If a statement issued under this section is altered or replaced by a regulator, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(4)</num><content><p>A statement issued under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(5)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of a statement published under this section.</p></content></subsection><subsection><num>(6)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection></section><section><num>63ZE</num><heading>Statement of policy: procedure</heading><subsection><num>(1)</num><intro><p>Before issuing a statement of policy under section 63ZD, a regulator (“the issuing regulator”) must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator, and</p></content></level><level class="para1"><num>(b)</num><content><p>publish a draft of the proposed statement in the way appearing to the issuing regulator to be best calculated to bring it to the attention of the public.</p></content></level></subsection><subsection><num>(2)</num><content><p>The duty of the FCA to consult the PRA under subsection (1)(a) applies only in so far as the statement of policy applies to persons whose approval under section 59 relates to the performance of a function designated by the FCA as a senior management function under section 59(6A) in relation to the carrying on by PRA-authorised persons of regulated activities.</p></content></subsection><subsection><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposal may be made to the issuing regulator within a specified time.</p></content></subsection><subsection><num>(4)</num><content><p>Before issuing the proposed statement, the issuing regulator must have regard to any representations made to it in accordance with subsection (3).</p></content></subsection><subsection><num>(5)</num><intro><p>If the issuing regulator issues the proposed statement it must publish an account, in general terms, of—</p></intro><level class="para1"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3), and</p></content></level><level class="para1"><num>(b)</num><content><p>its response to them.</p></content></level></subsection><subsection><num>(6)</num><intro><p>If the statement differs from the draft published under subsection (1) in a way which is in the opinion of the issuing regulator significant, the issuing regulator—</p></intro><level class="para1"><num>(a)</num><content><p>must before issuing it carry out any consultation required by subsection (1)(a), and</p></content></level><level class="para1"><num>(b)</num><content><p>must (in addition to complying with subsection (5)) publish details of the difference.</p></content></level></subsection><subsection><num>(7)</num><content><p>The issuing regulator may charge a reasonable fee for providing a person with a draft published under subsection (1)(b).</p></content></subsection><subsection><num>(8)</num><content><p>This section also applies to a proposal to alter or replace a statement.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-28"><num>28</num><heading>Extension of limitation periods for imposing sanctions</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Section 63A of FSMA 2000 (power to impose penalties) is amended as follows.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection><subsection eId="section-28-3"><num>(3)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the performance of a controlled function without approval before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the performance of a controlled function without approval on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-28-4"><num>(4)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subsection><subsection eId="section-28-5"><num>(5)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5ZA)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to misconduct which occurs before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to misconduct which occurs on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-29"><num>29</num><heading>Certification of employees by relevant authorised persons</heading><content><p><mod>After section 63D of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Certification of employees</i></heading><section><num>63E</num><heading>Certification of employees by relevant authorised persons</heading><subsection><num>(1)</num><content><p>A relevant authorised person (“A”) must take reasonable care to ensure that no employee of A performs a specified function under an arrangement entered into by A in relation to the carrying on by A of a regulated activity, unless the employee has a valid certificate issued by A under section 63F.</p></content></subsection><subsection><num>(2)</num><intro><p>“Specified function”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the carrying on of a regulated activity by a PRA-authorised person, means a function of a description specified in rules made by the FCA or the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the carrying on of a regulated activity by any other authorised person, means a function of a description specified in rules made by the FCA.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The FCA may specify a description of function under subsection (2)(a) or (b) only if, in relation to the carrying on of a regulated activity by a relevant authorised person of a particular description—</p></intro><level class="para1"><num>(a)</num><content><p>the function is not a controlled function in relation to the carrying on of that activity by a relevant authorised person of that description, but</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA is satisfied that the function is nevertheless a significant-harm function.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The PRA may specify a description of function under subsection (2)(a) only if, in relation to the carrying on of a regulated activity by a relevant PRA-authorised person of a particular description—</p></intro><level class="para1"><num>(a)</num><content><p>the function is not a controlled function in relation to the carrying on of that activity by a relevant PRA-authorised person of that description, but</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA is satisfied that the function is nevertheless a significant-harm function.</p></content></level></subsection><subsection><num>(5)</num><intro><p>A function is a “<term refersTo="#term-significant-harm-function">significant-harm function</term>”, in relation to the carrying on of a regulated activity by an authorised person, if—</p></intro><level class="para1"><num>(a)</num><content><p>the function will require the person performing it to be involved in one or more aspects of the authorised person's affairs, so far as relating to the activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>those aspects involve, or might involve, a risk of significant harm to the authorised person or any of its customers.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Each regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>keep under review the exercise of its power under subsection (2) to specify any significant-harm function as a specified function, and</p></content></level><level class="para1"><num>(b)</num><content><p>exercise that power in a way that it considers will minimise the risk of employees of relevant authorised persons performing significant-harm functions which they are not fit and proper persons to perform.</p></content></level></subsection><subsection><num>(7)</num><content><p>Subsection (1) does not apply to an arrangement which allows an employee to perform a function if the question of whether the employee is a fit and proper person to perform the function is reserved under any of the single market directives or the emission allowance auctioning regulation to an authority in a country or territory outside the United Kingdom.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controlled-function">controlled function</term>” has the meaning given by section 59(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-customer">customer</term>”, in relation to an authorised person, means a person who is using, or who is or may be contemplating using, any of the services provided by the authorised person;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person.</p></content></hcontainer></subsection><subsection><num>(9)</num><intro><p>In this section any reference to an employee of a person (“A”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to A under an arrangement made between A and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by A as to the manner in which those services are provided.</p></content></level></subsection><subsection><num>(10)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>63F</num><heading>Issuing of certificates</heading><subsection><num>(1)</num><content><p>A relevant authorised person may issue a certificate to a person under this section only if the authorised person is satisfied that the person is a fit and proper person to perform the function to which the certificate relates.</p></content></subsection><subsection><num>(2)</num><intro><p>In deciding whether the person is a fit and proper person to perform the function, the relevant authorised person must have regard, in particular, to whether the person—</p></intro><level class="para1"><num>(a)</num><content><p>has obtained a qualification,</p></content></level><level class="para1"><num>(b)</num><content><p>has undergone, or is undergoing, training,</p></content></level><level class="para1"><num>(c)</num><content><p>possesses a level of competence, or</p></content></level><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level><wrapUp><p>required by general rules made by the appropriate regulator in relation to employees performing functions of that kind.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In subsection (2) “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to employees of PRA-authorised persons, the FCA or the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to employees of any other authorised person, the FCA.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A certificate issued by a relevant authorised person to a person under this section must—</p></intro><level class="para1"><num>(a)</num><content><p>state that the authorised person is satisfied that the person is a fit and proper person to perform the function to which the certificate relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>set out the aspects of the affairs of the authorised person in which the person will be involved in performing the function.</p></content></level></subsection><subsection><num>(5)</num><content><p>A certificate issued under this section is valid for a period of 12 months beginning with the day on which it is issued.</p></content></subsection><subsection><num>(6)</num><intro><p>If, after having considered whether a person is a fit and proper person to perform a specified function, a relevant authorised person decides not to issue a certificate to the person under this section, the authorised person must give the person a notice in writing stating—</p></intro><level class="para1"><num>(a)</num><content><p>what steps (if any) the authorised person proposes to take in relation to the person as a result of the decision, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reasons for proposing to take those steps.</p></content></level></subsection><subsection><num>(7)</num><content><p>A relevant authorised person must maintain a record of every employee who has a valid certificate issued by it under this section.</p></content></subsection><subsection><num>(8)</num><content><p>Expressions used in this section and in section 63E have the same meaning in this section as they have in that section.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></section><section eId="section-30"><num>30</num><heading>Rules of conduct</heading><subsection eId="section-30-1"><num>(1)</num><content><p>Part 5 of FSMA 2000 (performance of regulated activities) is amended as follows.</p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>Omit sections 64 and 65 (and the italic cross-heading preceding them).</p></content></subsection><subsection eId="section-30-3"><num>(3)</num><content><p><mod>Before section 66 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Conduct of approved persons and others</i></heading><section><num>64A</num><heading>Rules of conduct</heading><subsection><num>(1)</num><intro><p>If it appears to the FCA to be necessary or expedient for the purpose of advancing one or more of its operational objectives, the FCA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom either regulator has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons who are employees of relevant authorised persons (see section 71A).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If it appears to the PRA to be necessary or expedient for the purpose of advancing any of its objectives, the PRA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom it has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons in relation to whom the FCA has given its approval under section 59 in respect of the performance by them of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity;</p></content></level><level class="para1"><num>(c)</num><content><p>persons who are employees of relevant PRA-authorised persons.</p></content></level></subsection><subsection><num>(3)</num><intro><p>In subsection (2)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person (see section 71A), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></hcontainer></subsection><subsection><num>(4)</num><content><p>Rules made under this section must relate to the conduct of persons in relation to the performance by them of qualifying functions.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection (4) “<term refersTo="#term-qualifying-function">qualifying function</term>”, in relation to a person, means a function relating to the carrying on of activities (whether or not regulated activities) by—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an approved person, the person on whose application approval was given, and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the person's employer.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section any reference to an employee of a person (“P”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to P under an arrangement made between P and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by P as to the manner in which those services are provided,</p></content></level><wrapUp><p>and “employer” is to be read accordingly.</p></wrapUp></subsection></section><section><num>64B</num><heading>Rules of conduct: responsibilities of relevant authorised persons</heading><subsection><num>(1)</num><content><p>This section applies where a regulator makes rules under section 64A (“conduct rules”).</p></content></subsection><subsection><num>(2)</num><intro><p>Every relevant authorised person must—</p></intro><level class="para1"><num>(a)</num><content><p>notify all relevant persons of the conduct rules that apply in relation to them, and</p></content></level><level class="para1"><num>(b)</num><content><p>take all reasonable steps to secure that those persons understand how those rules apply in relation to them.</p></content></level></subsection><subsection><num>(3)</num><content><p>The steps which a relevant authorised person must take to comply with subsection (2)(b) include, in particular, the provision of suitable training.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-person">relevant person</term>”, in relation to an authorised person, means—</p></intro><level class="para1"><num>(a)</num><content><p>any person in relation to whom an approval is given under section 59 on the application of the authorised person, and</p></content></level><level class="para1"><num>(b)</num><content><p>any employee of the authorised person.</p></content></level></subsection><subsection><num>(5)</num><content><p>If a relevant authorised person knows or suspects that a relevant person has failed to comply with any conduct rules, the authorised person must notify the regulator of that fact.</p></content></subsection><subsection><num>(6)</num><content><p>In this section “<term refersTo="#term-employee">employee</term>”, in relation to an authorised person, has the same meaning as in section 64A.</p></content></subsection><subsection><num>(7)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection></section><section eId="section-31"><num>31</num><heading>Requirement to notify regulator of disciplinary action</heading><content><p><mod>After section 64B of FSMA 2000 (inserted by section 30 above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>64C</num><heading>Requirement for relevant authorised persons to notify regulator of disciplinary action</heading><subsection><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a relevant authorised person takes disciplinary action in relation to a relevant person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason, or one of the reasons, for taking that action is a reason specified in rules made by the appropriate regulator for the purposes of this section,</p></content></level><wrapUp><p>the relevant authorised person must notify that regulator of that fact.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-disciplinary-action">Disciplinary action</term>”, in relation to a person, means any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the issuing of a formal written warning;</p></content></level><level class="para1"><num>(b)</num><content><p>the suspension or dismissal of the person;</p></content></level><level class="para1"><num>(c)</num><content><p>the reduction or recovery of any of the person's remuneration.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to relevant authorised persons that are PRA-authorised persons, the FCA or the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other relevant authorised persons, the FCA.</p></content></level></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-relevant-person">Relevant person</term>” has the same meaning as in section 64B.</p></content></subsection><subsection><num>(5)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-32"><num>32</num><heading>Definition of “misconduct”</heading><subsection eId="section-32-1"><num>(1)</num><intro><p>In section 66 of FSMA 2000 (disciplinary powers)—</p></intro><level class="para1" eId="section-32-1-a"><num>(a)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For provision about when a person is guilty of misconduct for the purposes of action by a regulator—</p></intro><level class="para1"><num>(a)</num><content><p>see section 66A, in the case of action by the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>see section 66B, in the case of action by the PRA.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-32-1-b"><num>(b)</num><content><p>omit subsections (2), (2A), (6) and (7).</p></content></level></subsection><subsection eId="section-32-2"><num>(2)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>66A</num><heading>Misconduct: action by the FCA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the FCA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the FCA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by an authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in relation to the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the FCA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom an approval is given under section 59, and</p></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom such approval is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A.</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>66B</num><heading>Misconduct: action by the PRA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the PRA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the PRA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant PRA-authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by a PRA-authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in respect of the performance of a relevant senior management function in relation to the carrying on by the PRA-authorised person of a regulated activity, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant PRA-authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant PRA-authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the PRA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant PRA-authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>the PRA has given its approval under section 59, or</p></item><item><num>(ii)</num><p>the FCA has given its approval under section 59 in respect of the performance by the person of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity, and</p></item></blockList></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom approval under section 59 is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A;</p></item><item><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person;</p></item><item><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section><section eId="section-33"><num><noteRef href="#key-b5d90ac6a23acefb47a1d34fc719c9e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>33</num><heading>Meaning of “relevant authorised person”</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section><section eId="section-34"><num>34</num><heading>Recording information about senior managers</heading><subsection eId="section-34-1"><num>(1)</num><content><p>Section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>) is amended as follows.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content><p><mod>in paragraph (g), after sub-paragraph (iii) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>in a case where the authorised person concerned is a relevant authorised person, whether or not the person is a senior manager;</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(h)</num><intro><p>in the case of an approved person who is a senior manager in relation to a relevant authorised person—</p></intro><level class="para2"><num>(i)</num><content><p>whether a final notice has been given to the person under section 390; and</p></content></level><level class="para2"><num>(ii)</num><content><p>if so, any information about the matter to which the notice relates which has been published under section 391(4).</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-authorised-person">relevant authorised person</term>” has the same meaning as in Part 5 (see section 71A),</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>The authorised person concerned”, in relation to an approved person, means the person on whose application approval was given.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-35"><num>35</num><heading>Consequential amendments relating to Part 4</heading><content><p>Schedule 3 (which contains further amendments relating to the provisions of this Part) has effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-offence"><heading><i>Offence</i></heading><section eId="section-36"><num>36</num><heading>Offence relating to a decision causing a financial institution to fail</heading><subsection eId="section-36-1"><num>(1)</num><intro><p>A person (“S”) commits an offence if—</p></intro><level class="para1" eId="section-36-1-a"><num>(a)</num><intro><p>at a time when S is a senior manager in relation to a financial institution (“F”), S—</p></intro><level class="para2" eId="section-36-1-a-i"><num>(i)</num><content><p>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</p></content></level><level class="para2" eId="section-36-1-a-ii"><num>(ii)</num><content><p>fails to take steps that S could take to prevent such a decision being taken,</p></content></level></level><level class="para1" eId="section-36-1-b"><num>(b)</num><content><p>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,</p></content></level><level class="para1" eId="section-36-1-c"><num>(c)</num><content><p>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</p></content></level><level class="para1" eId="section-36-1-d"><num>(d)</num><content><p>the implementation of the decision causes the failure of the group institution.</p></content></level></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>A “<term refersTo="#term-group-institution" eId="term-group-institution">group institution</term>”, 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).</p></content></subsection><subsection eId="section-36-3"><num>(3)</num><content><p>Subsections (1) and (2) are to be read with the interpretative provisions in section 37.</p></content></subsection><subsection eId="section-36-4"><num>(4)</num><intro><p>A person guilty of an offence under this section is liable—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-36-4-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-75fc43aa2328ed4df5a5981ceb33bb4d-1677579713125" ukl:CommentaryRef="key-75fc43aa2328ed4df5a5981ceb33bb4d"><noteRef uk:name="commentary" href="#key-75fc43aa2328ed4df5a5981ceb33bb4d" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-43b258b20ce3195fc39ec5caf5a05ed0-1658396327269" ukl:CommentaryRef="key-43b258b20ce3195fc39ec5caf5a05ed0"><noteRef uk:name="commentary" href="#key-43b258b20ce3195fc39ec5caf5a05ed0" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-36-4-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-36-4-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.</p></content></level></subsection></section><section eId="section-37"><num>37</num><heading>Section 36: interpretation</heading><subsection eId="section-37-1"><num>(1)</num><content><p>This section has effect for the interpretation of section 36.</p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>“<term refersTo="#term-financial-institution" eId="term-financial-institution">Financial institution</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>is not an insurer or a credit union.</p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><content><p>Condition A is that it has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection eId="section-37-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-37-4-a"><num>(a)</num><content><p>it is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-37-4-b"><num>(b)</num><content><p>it has permission under Part 4A of that Act to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-37-4-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection eId="section-37-5"><num>(5)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-37-5-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-37-5-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-37-5-c"><num>(c)</num><content><p>“<term refersTo="#term-credit-union" eId="term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection eId="section-37-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-37-7"><num>(7)</num><content><p>A person is a “<term refersTo="#term-senior-manager" eId="term-senior-manager">senior manager</term>” 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.</p></content></subsection><subsection eId="section-37-8"><num><ins class="first" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48"><noteRef uk:name="commentary" href="#key-2ee3df9ece81bb490eb6b43424126b48" class="commentary"/>(8)</ins></num><intro><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">“Senior management function” means—</ins></p></intro><level class="para1" eId="section-37-8-an1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(a)</ins></num><content><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">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;</ins></p></content></level><level class="para1" eId="section-37-8-bn1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.</ins></p></content></level></subsection><subsection eId="section-37-9"><num>(9)</num><intro><p>A financial institution (“F”) is to be regarded as failing where—</p></intro><level class="para1" eId="section-37-9-a"><num>(a)</num><content><p>F enters insolvency,</p></content></level><level class="para1" eId="section-37-9-b"><num>(b)</num><content><p>any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to F, or</p></content></level><level class="para1" eId="section-37-9-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-37-10"><num>(10)</num><intro><p>In subsection (9)(a) “<term refersTo="#term-insolvency" eId="term-insolvency">insolvency</term>” includes—</p></intro><level class="para1" eId="section-37-10-a"><num>(a)</num><content><p>bankruptcy,</p></content></level><level class="para1" eId="section-37-10-b"><num>(b)</num><content><p>liquidation,</p></content></level><level class="para1" eId="section-37-10-c"><num>(c)</num><content><p>bank insolvency,</p></content></level><level class="para1" eId="section-37-10-ca"><num><ins class="first" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c"><noteRef uk:name="commentary" href="#key-72c0a4d83e63cf6688c5f21408bab04c" class="commentary"/>(ca)</ins></num><content><p><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">building society insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-cb"><num><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">(cb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">investment bank insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-d"><num>(d)</num><content><p>administration,</p></content></level><level class="para1" eId="section-37-10-e"><num>(e)</num><content><p>bank administration,</p></content></level><level class="para1" eId="section-37-10-ea"><num><ins class="first" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388"><noteRef uk:name="commentary" href="#key-4bf28f26aed2683441a8bffa1a52d388" class="commentary"/>(ea)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388">building society special administration,</ins></p></content></level><level class="para1" eId="section-37-10-f"><num>(f)</num><content><p>receivership,</p></content></level><level class="para1" eId="section-37-10-g"><num>(g)</num><content><p>a composition between F and F's creditors, and</p></content></level><level class="para1" eId="section-37-10-h"><num>(h)</num><content><p>a scheme of arrangement of F's affairs.</p></content></level></subsection><subsection eId="section-37-11"><num><ins class="first" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea"><noteRef uk:name="commentary" href="#key-45a8511cbefa8be492ef5c3fe2250cea" class="commentary"/>(11)</ins></num><intro><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">For the purposes of subsection (10)—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in the Banking Act 2009 (see section 136 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in that Act (see section 90 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-building-society-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” and “</ins><term refersTo="#term-building-society-special-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society special administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-investment-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">investment bank insolvency</ins></term><ins class="last" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” means any procedure established by regulations under section 233 of the Banking Act 2009.</ins></p></content></hcontainer></subsection></section><section eId="section-38"><num>38</num><heading>Institution of proceedings</heading><subsection eId="section-38-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-an-offence" eId="term-an-offence">an offence</term>” means an offence under section 36.</p></content></subsection><subsection eId="section-38-2"><num>(2)</num><intro><p>Proceedings for an offence may be instituted in England and Wales only—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions.</p></content></level></subsection><subsection eId="section-38-3"><num>(3)</num><intro><p>Proceedings for an offence may be instituted in Northern Ireland only—</p></intro><level class="para1" eId="section-38-3-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-3-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions for Northern Ireland.</p></content></level></subsection><subsection eId="section-38-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-38-5"><num>(5)</num><intro><p>Conditions or restrictions may be imposed under subsection (4) in relation to—</p></intro><level class="para1" eId="section-38-5-a"><num>(a)</num><content><p>proceedings generally, or</p></content></level><level class="para1" eId="section-38-5-b"><num>(b)</num><content><p>such proceedings, or categories of proceedings, as the Treasury may direct.</p></content></level></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-amendments-of-fsma-2000"><heading><i>Amendments of </i>FSMA 2000</heading><section eId="section-18"><num>18</num><heading>Functions for which approval is required</heading><subsection eId="section-18-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subsection><subsection eId="section-18-2"><num>(2)</num><content><p>Omit subsection (5).</p></content></subsection><subsection eId="section-18-3"><num>(3)</num><content><p><mod>For subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>The PRA may specify a description of function under subsection (3)(a) only if, in relation to the carrying on of a regulated activity by a PRA-authorised person, it is satisfied that the function is a senior management function as defined in section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-18-4"><num><noteRef href="#key-ff2e9d4c9be3d95bb8a2d29f76a5ce4d" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-18-5"><num>(5)</num><content><p>Omit subsections (7) to (7B) and (11).</p></content></subsection></section><section eId="section-19"><num>19</num><heading>Senior management functions</heading><content><p><mod>After section 59 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59ZA</num><heading>Senior management functions</heading><subsection><num>(1)</num><content><p>This section has effect for determining whether a function is for the purposes of section 59(6) or (6A) a senior management function.</p></content></subsection><subsection><num>(2)</num><intro><p>A function is a “<term refersTo="#term-senior-management-function">senior management function</term>”, in relation to the carrying on of a regulated activity by an authorised person, if—</p></intro><level class="para1"><num>(a)</num><content><p>the function will require the person performing it to be responsible for managing one or more aspects of the authorised person's affairs, so far as relating to the activity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those aspects involve, or might involve, a risk of serious consequences—</p></intro><level class="para2"><num>(i)</num><content><p>for the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>for business or other interests in the United Kingdom.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>In subsection (2)(a) the reference to managing one or more aspects of an authorised person's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-20"><num>20</num><heading>Statements of responsibilities</heading><subsection eId="section-20-1"><num>(1)</num><content><p>Section 60 of FSMA 2000 (applications for approval) is amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>the application is for the approval of a person to perform a designated senior management function, and</p></content></level><level class="para1"><num>(b)</num><content><p>the authorised person concerned is a relevant authorised person (see section 71A),</p></content></level><wrapUp><p>the appropriate regulator must require the application to contain, or be accompanied by, a statement setting out the aspects of the affairs of the authorised person concerned which it is intended that the person will be responsible for managing in performing the function.</p></wrapUp></subsection><subsection><num>(2B)</num><content><p>A statement provided under subsection (2A) is known as a “statement of responsibilities”.</p></content></subsection><subsection><num>(2C)</num><content><p>In subsection (2A) “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-3"><num><noteRef href="#key-0d322dd3064f3520728110a3cb5985a5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(3)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Vetting by relevant authorised persons of candidates for approval</heading><content><p><mod>After section 60 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Vetting of candidates by relevant authorised persons</heading><subsection><num>(1)</num><content><p>Before a relevant authorised person may make an application for a regulator's approval under section 59, the authorised person must be satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates.</p></content></subsection><subsection><num>(2)</num><intro><p>In deciding that question, the authorised person must have regard, in particular, to whether the candidate, or any person who may perform a function on the candidate's behalf—</p></intro><level class="para1"><num>(a)</num><content><p>has obtained a qualification,</p></content></level><level class="para1"><num>(b)</num><content><p>has undergone, or is undergoing, training,</p></content></level><level class="para1"><num>(c)</num><content><p>possesses a level of competence, or</p></content></level><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level><wrapUp><p>required by general rules made by the regulator in relation to persons performing functions of the kind to which the application relates.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-22"><num>22</num><heading>Determination of applications for approval</heading><intro><p>In section 61 of FSMA 2000 (determination of applications), in subsection (2)—</p></intro><level class="para1" eId="section-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b), and</p></content></level><level class="para1" eId="section-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></section><section eId="section-23"><num>23</num><heading>Power to give approval subject to conditions or for limited period</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Section 61 of FSMA 2000 (determination of applications) is amended as follows.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>The regulator to which an application for approval is made under section 60 may grant the application only if—</p></intro><level class="para1"><num>(a)</num><content><p>it is satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the application is for approval to perform a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person (a “relevant senior management application”), it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (as to which, see subsection (2B)).</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-3"><num>(3)</num><content><p><mod>In subsection (2), for “deciding that question” substitute <quotedText>“
determining the application
”</quotedText>.</mod></p></content></subsection><subsection eId="section-23-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>The regulator to which a relevant senior management application is made under section 60 may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>grant the application subject to any conditions that the regulator considers appropriate, and</p></content></level><level class="para1"><num>(b)</num><content><p>grant the application so as to give approval only for a limited period.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>A regulator may exercise the power under paragraph (a) or (b) of subsection (2B) only if—</p></intro><level class="para1"><num>(a)</num><content><p>where the regulator is the FCA, it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives, and</p></content></level><level class="para1"><num>(b)</num><content><p>where the regulator is the PRA, it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(2D)</num><content><p>Consent given by the FCA for the granting of the application may be conditional on the manner in which the PRA exercises its power under subsection (2B).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-5"><num>(5)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3ZA)</num><content><p>In the case of a relevant senior management application, the reference in subsection (3)(a) to granting the application is a reference to granting it without imposing conditions or limiting the period for which the approval has effect.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-6"><num><noteRef href="#key-68a42ee3aeceaf80268d662c8db5d310" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(6)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-23-7"><num>(7)</num><intro><p>In section 62 of FSMA 2000 (applications for approval: procedure and right to refer to Tribunal)—</p></intro><level class="para1" eId="section-23-7-a"><num>(a)</num><content><p><mod>in subsection (2), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-b"><num>(b)</num><content><p><mod>in subsection (3), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-c"><num>(c)</num><content><p><mod>in subsection (4), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-24"><num>24</num><heading>Changes in responsibilities of senior managers</heading><content><p><mod>After section 62 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>62A</num><heading>Changes in responsibilities of senior managers</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an authorised person has made an application to the appropriate regulator for approval under section 59 for a person to perform a designated senior management function,</p></content></level><level class="para1"><num>(b)</num><content><p>the application contained, or was accompanied by, a statement of responsibilities under section 60(2A), and</p></content></level><level class="para1"><num>(c)</num><content><p>the application has been granted.</p></content></level></subsection><subsection><num>(2)</num><content><p>If, since the granting of the application, there has been any significant change in the aspects of the authorised person's affairs which the person is responsible for managing in performing the function, the authorised person must provide the appropriate regulator with a revised statement of responsibilities.</p></content></subsection><subsection><num>(3)</num><intro><p>The appropriate regulator may require the authorised person—</p></intro><level class="para1"><num>(a)</num><content><p>to provide information which the person is required to give under this section in such form as the appropriate regulator may direct, or</p></content></level><level class="para1"><num>(b)</num><content><p>to verify such information in such a way as the appropriate regulator may direct.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” has the same meaning as in section 60;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></section><section eId="section-25"><num>25</num><heading>Duty to notify regulator of grounds for withdrawal of approval</heading><content><p><mod>In section 63 of FSMA 2000 (withdrawal of approval), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>At least once a year each relevant authorised person must, in relation to every person in relation to whom an approval has been given on the application of the authorised person—</p></intro><level class="para1"><num>(a)</num><content><p>consider whether there are any grounds on which a regulator could withdraw the approval under this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>if the authorised person is of the opinion that there are such grounds, notify the regulator of those grounds.</p></content></level><wrapUp><p>(For the meaning of “relevant authorised person”, see section 71A.)</p></wrapUp></subsection></quotedStructure></mod></p></content></section><section eId="section-26"><num>26</num><heading>Variation of approval</heading><content><p><mod>After section 63 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>63ZA</num><heading>Variation of senior manager's approval at request of relevant authorised person</heading><subsection><num>(1)</num><intro><p>Where an application for approval under section 59 is granted subject to conditions, the authorised person concerned may apply to the appropriate regulator to vary the approval by—</p></intro><level class="para1"><num>(a)</num><content><p>varying a condition,</p></content></level><level class="para1"><num>(b)</num><content><p>removing a condition, or</p></content></level><level class="para1"><num>(c)</num><content><p>imposing a new condition.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“The appropriate regulator”—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an application for variation of an approval in a way described in subsection (1)(a) or (b), means whichever of the FCA or the PRA imposed the condition concerned;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an application for variation of an approval in the way described in subsection (1)(c), means the regulator who gave the approval.</p></content></level></subsection><subsection><num>(3)</num><content><p>The PRA must consult the FCA before determining an application under this section, unless the application relates to the variation or removal of a condition which was imposed by the PRA in exercise of its power under section 63ZB.</p></content></subsection><subsection><num>(4)</num><intro><p>The regulator to which an application is made under this section must, before the end of the period for consideration, determine whether—</p></intro><level class="para1"><num>(a)</num><content><p>to grant the application; or</p></content></level><level class="para1"><num>(b)</num><content><p>to give a warning notice under section 62(2).</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-period-for-consideration">The period for consideration</term>” means the period of 3 months beginning with the date on which the regulator receives the application.</p></content></subsection><subsection><num>(6)</num><content><p>The FCA may refuse an application under this section if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.</p></content></subsection><subsection><num>(7)</num><content><p>The PRA may refuse an application under this section if it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></subsection><subsection><num>(8)</num><content><p>The following provisions apply to an application made under this section for variation of an approval as they apply to an application for approval made under section 60—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(2) to (8),</p></item><item><p>section 61(4) and (5),</p></item><item><p>section 62.</p></item></blockList></content></subsection></section><section><num>63ZB</num><heading>Variation of senior manager's approval on initiative of regulator</heading><subsection><num>(1)</num><content><p>The FCA may vary an approval under section 59 given by the FCA or the PRA for the performance of a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person if the FCA considers that it is desirable to do so in order to advance one or more of its operational objectives.</p></content></subsection><subsection><num>(2)</num><intro><p>The PRA may vary an approval under section 59 for the performance of a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person if—</p></intro><level class="para1"><num>(a)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the PRA gave the approval, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the FCA gave the approval and the relevant authorised person is a PRA-authorised person, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the PRA considers that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A regulator may vary an approval by—</p></intro><level class="para1"><num>(a)</num><content><p>imposing a condition,</p></content></level><level class="para1"><num>(b)</num><content><p>varying a condition,</p></content></level><level class="para1"><num>(c)</num><content><p>removing a condition, or</p></content></level><level class="para1"><num>(d)</num><content><p>limiting the period for which the approval is to have effect.</p></content></level></subsection><subsection><num>(4)</num><content><p>Before one regulator varies an approval given by the other regulator, it must consult the other regulator.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection><subsection><num>(6)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>63ZC</num><heading>Exercise of power under section 63ZB: procedure</heading><subsection><num>(1)</num><content><p>This section applies to an exercise, by either regulator, of the power to vary an approval under section 63ZB.</p></content></subsection><subsection><num>(2)</num><intro><p>A variation takes effect—</p></intro><level class="para1"><num>(a)</num><content><p>immediately, if the notice given under subsection (4) states that that is the case,</p></content></level><level class="para1"><num>(b)</num><content><p>on such date as is specified in the notice, or</p></content></level><level class="para1"><num>(c)</num><content><p>if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.</p></content></level></subsection><subsection><num>(3)</num><content><p>A variation may be expressed to take effect immediately (or on a specified date) only if the regulator concerned, having regard to the ground on which it is exercising the power to vary, reasonably considers that it is necessary for the variation to take effect immediately (or on that date).</p></content></subsection><subsection><num>(4)</num><content><p>If either regulator proposes to vary an approval or varies an approval with immediate effect, it must give each of the interested parties written notice.</p></content></subsection><subsection><num>(5)</num><intro><p>The notice must—</p></intro><level class="para1"><num>(a)</num><content><p>give details of the variation,</p></content></level><level class="para1"><num>(b)</num><content><p>state the regulator's reasons for the variation,</p></content></level><level class="para1"><num>(c)</num><content><p>inform the interested parties that each of them may make representations to the regulator within such period as may be specified in the notice (whether or not any of the interested parties has referred the matter to the Tribunal),</p></content></level><level class="para1"><num>(d)</num><content><p>inform the interested parties of when the variation takes effect, and</p></content></level><level class="para1"><num>(e)</num><content><p>inform the interested parties of the right of each of them to refer the matter to the Tribunal.</p></content></level></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-interested-parties">The interested parties</term>”, in relation to an approval, are—</p></intro><level class="para1"><num>(a)</num><content><p>the person on whose application it was given (“A”),</p></content></level><level class="para1"><num>(b)</num><content><p>the person in respect of whom it was given (“B”), and</p></content></level><level class="para1"><num>(c)</num><content><p>the person by whom B's services are retained, if not A.</p></content></level></subsection><subsection><num>(7)</num><content><p>The regulator giving the notice may extend the period allowed under the notice for making representations.</p></content></subsection><subsection><num>(8)</num><intro><p>If having considered the representations made by the interested parties, the regulator decides—</p></intro><level class="para1"><num>(a)</num><content><p>to vary the approval, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the variation has taken effect, not to rescind it,</p></content></level><wrapUp><p>it must give each of the interested parties written notice.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>If having considered the representations made by the interested parties, the regulator decides—</p></intro><level class="para1"><num>(a)</num><content><p>not to vary the approval,</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the approval in a different way, or</p></content></level><level class="para1"><num>(c)</num><content><p>if the variation has taken effect, to rescind it,</p></content></level><wrapUp><p>it must give each of the interested parties written notice.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>A notice under subsection (8) must inform the interested parties of the right of each of them to refer the matter to the Tribunal.</p></content></subsection><subsection><num>(11)</num><content><p>A notice under subsection (9)(b) must comply with subsection (5).</p></content></subsection><subsection><num>(12)</num><content><p>If a notice informs the interested parties of the right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.</p></content></subsection><subsection><num>(13)</num><content><p>For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 391(8).</p></content></subsection><subsection><num>(14)</num><content><p>“<term refersTo="#term-approval">Approval</term>” means an approval under section 59.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-27"><num>27</num><heading>Statement of policy</heading><content><p><mod>After section 63ZC of FSMA 2000 (inserted by section 26 above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>63ZD</num><heading>Statement of policy relating to conditional approval and variation</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of its policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>its giving of approval under section 59 subject to conditions or for a limited period only, and</p></content></level><level class="para1"><num>(b)</num><content><p>its variation under section 63ZA or 63ZB of an approval given under section 59.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may at any time alter or replace a statement issued by it under this section.</p></content></subsection><subsection><num>(3)</num><content><p>If a statement issued under this section is altered or replaced by a regulator, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(4)</num><content><p>A statement issued under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(5)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of a statement published under this section.</p></content></subsection><subsection><num>(6)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection></section><section><num>63ZE</num><heading>Statement of policy: procedure</heading><subsection><num>(1)</num><intro><p>Before issuing a statement of policy under section 63ZD, a regulator (“the issuing regulator”) must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator, and</p></content></level><level class="para1"><num>(b)</num><content><p>publish a draft of the proposed statement in the way appearing to the issuing regulator to be best calculated to bring it to the attention of the public.</p></content></level></subsection><subsection><num>(2)</num><content><p>The duty of the FCA to consult the PRA under subsection (1)(a) applies only in so far as the statement of policy applies to persons whose approval under section 59 relates to the performance of a function designated by the FCA as a senior management function under section 59(6A) in relation to the carrying on by PRA-authorised persons of regulated activities.</p></content></subsection><subsection><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposal may be made to the issuing regulator within a specified time.</p></content></subsection><subsection><num>(4)</num><content><p>Before issuing the proposed statement, the issuing regulator must have regard to any representations made to it in accordance with subsection (3).</p></content></subsection><subsection><num>(5)</num><intro><p>If the issuing regulator issues the proposed statement it must publish an account, in general terms, of—</p></intro><level class="para1"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3), and</p></content></level><level class="para1"><num>(b)</num><content><p>its response to them.</p></content></level></subsection><subsection><num>(6)</num><intro><p>If the statement differs from the draft published under subsection (1) in a way which is in the opinion of the issuing regulator significant, the issuing regulator—</p></intro><level class="para1"><num>(a)</num><content><p>must before issuing it carry out any consultation required by subsection (1)(a), and</p></content></level><level class="para1"><num>(b)</num><content><p>must (in addition to complying with subsection (5)) publish details of the difference.</p></content></level></subsection><subsection><num>(7)</num><content><p>The issuing regulator may charge a reasonable fee for providing a person with a draft published under subsection (1)(b).</p></content></subsection><subsection><num>(8)</num><content><p>This section also applies to a proposal to alter or replace a statement.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-28"><num>28</num><heading>Extension of limitation periods for imposing sanctions</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Section 63A of FSMA 2000 (power to impose penalties) is amended as follows.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection><subsection eId="section-28-3"><num>(3)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the performance of a controlled function without approval before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the performance of a controlled function without approval on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-28-4"><num>(4)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subsection><subsection eId="section-28-5"><num>(5)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5ZA)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to misconduct which occurs before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to misconduct which occurs on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-29"><num>29</num><heading>Certification of employees by relevant authorised persons</heading><content><p><mod>After section 63D of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Certification of employees</i></heading><section><num>63E</num><heading>Certification of employees by relevant authorised persons</heading><subsection><num>(1)</num><content><p>A relevant authorised person (“A”) must take reasonable care to ensure that no employee of A performs a specified function under an arrangement entered into by A in relation to the carrying on by A of a regulated activity, unless the employee has a valid certificate issued by A under section 63F.</p></content></subsection><subsection><num>(2)</num><intro><p>“Specified function”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the carrying on of a regulated activity by a PRA-authorised person, means a function of a description specified in rules made by the FCA or the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the carrying on of a regulated activity by any other authorised person, means a function of a description specified in rules made by the FCA.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The FCA may specify a description of function under subsection (2)(a) or (b) only if, in relation to the carrying on of a regulated activity by a relevant authorised person of a particular description—</p></intro><level class="para1"><num>(a)</num><content><p>the function is not a controlled function in relation to the carrying on of that activity by a relevant authorised person of that description, but</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA is satisfied that the function is nevertheless a significant-harm function.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The PRA may specify a description of function under subsection (2)(a) only if, in relation to the carrying on of a regulated activity by a relevant PRA-authorised person of a particular description—</p></intro><level class="para1"><num>(a)</num><content><p>the function is not a controlled function in relation to the carrying on of that activity by a relevant PRA-authorised person of that description, but</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA is satisfied that the function is nevertheless a significant-harm function.</p></content></level></subsection><subsection><num>(5)</num><intro><p>A function is a “<term refersTo="#term-significant-harm-function">significant-harm function</term>”, in relation to the carrying on of a regulated activity by an authorised person, if—</p></intro><level class="para1"><num>(a)</num><content><p>the function will require the person performing it to be involved in one or more aspects of the authorised person's affairs, so far as relating to the activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>those aspects involve, or might involve, a risk of significant harm to the authorised person or any of its customers.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Each regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>keep under review the exercise of its power under subsection (2) to specify any significant-harm function as a specified function, and</p></content></level><level class="para1"><num>(b)</num><content><p>exercise that power in a way that it considers will minimise the risk of employees of relevant authorised persons performing significant-harm functions which they are not fit and proper persons to perform.</p></content></level></subsection><subsection><num>(7)</num><content><p>Subsection (1) does not apply to an arrangement which allows an employee to perform a function if the question of whether the employee is a fit and proper person to perform the function is reserved under any of the single market directives or the emission allowance auctioning regulation to an authority in a country or territory outside the United Kingdom.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controlled-function">controlled function</term>” has the meaning given by section 59(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-customer">customer</term>”, in relation to an authorised person, means a person who is using, or who is or may be contemplating using, any of the services provided by the authorised person;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person.</p></content></hcontainer></subsection><subsection><num>(9)</num><intro><p>In this section any reference to an employee of a person (“A”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to A under an arrangement made between A and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by A as to the manner in which those services are provided.</p></content></level></subsection><subsection><num>(10)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>63F</num><heading>Issuing of certificates</heading><subsection><num>(1)</num><content><p>A relevant authorised person may issue a certificate to a person under this section only if the authorised person is satisfied that the person is a fit and proper person to perform the function to which the certificate relates.</p></content></subsection><subsection><num>(2)</num><intro><p>In deciding whether the person is a fit and proper person to perform the function, the relevant authorised person must have regard, in particular, to whether the person—</p></intro><level class="para1"><num>(a)</num><content><p>has obtained a qualification,</p></content></level><level class="para1"><num>(b)</num><content><p>has undergone, or is undergoing, training,</p></content></level><level class="para1"><num>(c)</num><content><p>possesses a level of competence, or</p></content></level><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level><wrapUp><p>required by general rules made by the appropriate regulator in relation to employees performing functions of that kind.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In subsection (2) “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to employees of PRA-authorised persons, the FCA or the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to employees of any other authorised person, the FCA.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A certificate issued by a relevant authorised person to a person under this section must—</p></intro><level class="para1"><num>(a)</num><content><p>state that the authorised person is satisfied that the person is a fit and proper person to perform the function to which the certificate relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>set out the aspects of the affairs of the authorised person in which the person will be involved in performing the function.</p></content></level></subsection><subsection><num>(5)</num><content><p>A certificate issued under this section is valid for a period of 12 months beginning with the day on which it is issued.</p></content></subsection><subsection><num>(6)</num><intro><p>If, after having considered whether a person is a fit and proper person to perform a specified function, a relevant authorised person decides not to issue a certificate to the person under this section, the authorised person must give the person a notice in writing stating—</p></intro><level class="para1"><num>(a)</num><content><p>what steps (if any) the authorised person proposes to take in relation to the person as a result of the decision, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reasons for proposing to take those steps.</p></content></level></subsection><subsection><num>(7)</num><content><p>A relevant authorised person must maintain a record of every employee who has a valid certificate issued by it under this section.</p></content></subsection><subsection><num>(8)</num><content><p>Expressions used in this section and in section 63E have the same meaning in this section as they have in that section.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></section><section eId="section-30"><num>30</num><heading>Rules of conduct</heading><subsection eId="section-30-1"><num>(1)</num><content><p>Part 5 of FSMA 2000 (performance of regulated activities) is amended as follows.</p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>Omit sections 64 and 65 (and the italic cross-heading preceding them).</p></content></subsection><subsection eId="section-30-3"><num>(3)</num><content><p><mod>Before section 66 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Conduct of approved persons and others</i></heading><section><num>64A</num><heading>Rules of conduct</heading><subsection><num>(1)</num><intro><p>If it appears to the FCA to be necessary or expedient for the purpose of advancing one or more of its operational objectives, the FCA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom either regulator has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons who are employees of relevant authorised persons (see section 71A).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If it appears to the PRA to be necessary or expedient for the purpose of advancing any of its objectives, the PRA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom it has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons in relation to whom the FCA has given its approval under section 59 in respect of the performance by them of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity;</p></content></level><level class="para1"><num>(c)</num><content><p>persons who are employees of relevant PRA-authorised persons.</p></content></level></subsection><subsection><num>(3)</num><intro><p>In subsection (2)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person (see section 71A), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></hcontainer></subsection><subsection><num>(4)</num><content><p>Rules made under this section must relate to the conduct of persons in relation to the performance by them of qualifying functions.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection (4) “<term refersTo="#term-qualifying-function">qualifying function</term>”, in relation to a person, means a function relating to the carrying on of activities (whether or not regulated activities) by—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an approved person, the person on whose application approval was given, and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the person's employer.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section any reference to an employee of a person (“P”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to P under an arrangement made between P and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by P as to the manner in which those services are provided,</p></content></level><wrapUp><p>and “employer” is to be read accordingly.</p></wrapUp></subsection></section><section><num>64B</num><heading>Rules of conduct: responsibilities of relevant authorised persons</heading><subsection><num>(1)</num><content><p>This section applies where a regulator makes rules under section 64A (“conduct rules”).</p></content></subsection><subsection><num>(2)</num><intro><p>Every relevant authorised person must—</p></intro><level class="para1"><num>(a)</num><content><p>notify all relevant persons of the conduct rules that apply in relation to them, and</p></content></level><level class="para1"><num>(b)</num><content><p>take all reasonable steps to secure that those persons understand how those rules apply in relation to them.</p></content></level></subsection><subsection><num>(3)</num><content><p>The steps which a relevant authorised person must take to comply with subsection (2)(b) include, in particular, the provision of suitable training.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-person">relevant person</term>”, in relation to an authorised person, means—</p></intro><level class="para1"><num>(a)</num><content><p>any person in relation to whom an approval is given under section 59 on the application of the authorised person, and</p></content></level><level class="para1"><num>(b)</num><content><p>any employee of the authorised person.</p></content></level></subsection><subsection><num>(5)</num><content><p>If a relevant authorised person knows or suspects that a relevant person has failed to comply with any conduct rules, the authorised person must notify the regulator of that fact.</p></content></subsection><subsection><num>(6)</num><content><p>In this section “<term refersTo="#term-employee">employee</term>”, in relation to an authorised person, has the same meaning as in section 64A.</p></content></subsection><subsection><num>(7)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection></section><section eId="section-31"><num>31</num><heading>Requirement to notify regulator of disciplinary action</heading><content><p><mod>After section 64B of FSMA 2000 (inserted by section 30 above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>64C</num><heading>Requirement for relevant authorised persons to notify regulator of disciplinary action</heading><subsection><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a relevant authorised person takes disciplinary action in relation to a relevant person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason, or one of the reasons, for taking that action is a reason specified in rules made by the appropriate regulator for the purposes of this section,</p></content></level><wrapUp><p>the relevant authorised person must notify that regulator of that fact.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-disciplinary-action">Disciplinary action</term>”, in relation to a person, means any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the issuing of a formal written warning;</p></content></level><level class="para1"><num>(b)</num><content><p>the suspension or dismissal of the person;</p></content></level><level class="para1"><num>(c)</num><content><p>the reduction or recovery of any of the person's remuneration.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to relevant authorised persons that are PRA-authorised persons, the FCA or the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other relevant authorised persons, the FCA.</p></content></level></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-relevant-person">Relevant person</term>” has the same meaning as in section 64B.</p></content></subsection><subsection><num>(5)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-32"><num>32</num><heading>Definition of “misconduct”</heading><subsection eId="section-32-1"><num>(1)</num><intro><p>In section 66 of FSMA 2000 (disciplinary powers)—</p></intro><level class="para1" eId="section-32-1-a"><num>(a)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For provision about when a person is guilty of misconduct for the purposes of action by a regulator—</p></intro><level class="para1"><num>(a)</num><content><p>see section 66A, in the case of action by the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>see section 66B, in the case of action by the PRA.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-32-1-b"><num>(b)</num><content><p>omit subsections (2), (2A), (6) and (7).</p></content></level></subsection><subsection eId="section-32-2"><num>(2)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>66A</num><heading>Misconduct: action by the FCA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the FCA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the FCA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by an authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in relation to the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the FCA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom an approval is given under section 59, and</p></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom such approval is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A.</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>66B</num><heading>Misconduct: action by the PRA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the PRA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the PRA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant PRA-authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by a PRA-authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in respect of the performance of a relevant senior management function in relation to the carrying on by the PRA-authorised person of a regulated activity, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant PRA-authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant PRA-authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the PRA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant PRA-authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>the PRA has given its approval under section 59, or</p></item><item><num>(ii)</num><p>the FCA has given its approval under section 59 in respect of the performance by the person of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity, and</p></item></blockList></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom approval under section 59 is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A;</p></item><item><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person;</p></item><item><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section><section eId="section-33"><num><noteRef href="#key-b5d90ac6a23acefb47a1d34fc719c9e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>33</num><heading>Meaning of “relevant authorised person”</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section><section eId="section-34"><num>34</num><heading>Recording information about senior managers</heading><subsection eId="section-34-1"><num>(1)</num><content><p>Section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>) is amended as follows.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content><p><mod>in paragraph (g), after sub-paragraph (iii) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>in a case where the authorised person concerned is a relevant authorised person, whether or not the person is a senior manager;</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(h)</num><intro><p>in the case of an approved person who is a senior manager in relation to a relevant authorised person—</p></intro><level class="para2"><num>(i)</num><content><p>whether a final notice has been given to the person under section 390; and</p></content></level><level class="para2"><num>(ii)</num><content><p>if so, any information about the matter to which the notice relates which has been published under section 391(4).</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-authorised-person">relevant authorised person</term>” has the same meaning as in Part 5 (see section 71A),</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>The authorised person concerned”, in relation to an approved person, means the person on whose application approval was given.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-35"><num>35</num><heading>Consequential amendments relating to Part 4</heading><content><p>Schedule 3 (which contains further amendments relating to the provisions of this Part) has effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-18"><num>18</num><heading>Functions for which approval is required</heading><subsection eId="section-18-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subsection><subsection eId="section-18-2"><num>(2)</num><content><p>Omit subsection (5).</p></content></subsection><subsection eId="section-18-3"><num>(3)</num><content><p><mod>For subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>The PRA may specify a description of function under subsection (3)(a) only if, in relation to the carrying on of a regulated activity by a PRA-authorised person, it is satisfied that the function is a senior management function as defined in section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-18-4"><num><noteRef href="#key-ff2e9d4c9be3d95bb8a2d29f76a5ce4d" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-18-5"><num>(5)</num><content><p>Omit subsections (7) to (7B) and (11).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-2"><num>(2)</num><content><p>Omit subsection (5).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-18-3"><num>(3)</num><content><p><mod>For subsection (6) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>The PRA may specify a description of function under subsection (3)(a) only if, in relation to the carrying on of a regulated activity by a PRA-authorised person, it is satisfied that the function is a senior management function as defined in section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-18-4"><num><noteRef href="#key-ff2e9d4c9be3d95bb8a2d29f76a5ce4d" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-5"><num>(5)</num><content><p>Omit subsections (7) to (7B) and (11).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-19"><num>19</num><heading>Senior management functions</heading><content><p><mod>After section 59 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>59ZA</num><heading>Senior management functions</heading><subsection><num>(1)</num><content><p>This section has effect for determining whether a function is for the purposes of section 59(6) or (6A) a senior management function.</p></content></subsection><subsection><num>(2)</num><intro><p>A function is a “<term refersTo="#term-senior-management-function">senior management function</term>”, in relation to the carrying on of a regulated activity by an authorised person, if—</p></intro><level class="para1"><num>(a)</num><content><p>the function will require the person performing it to be responsible for managing one or more aspects of the authorised person's affairs, so far as relating to the activity, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those aspects involve, or might involve, a risk of serious consequences—</p></intro><level class="para2"><num>(i)</num><content><p>for the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>for business or other interests in the United Kingdom.</p></content></level></level></subsection><subsection><num>(3)</num><content><p>In subsection (2)(a) the reference to managing one or more aspects of an authorised person's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on.</p></content></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20"><num>20</num><heading>Statements of responsibilities</heading><subsection eId="section-20-1"><num>(1)</num><content><p>Section 60 of FSMA 2000 (applications for approval) is amended as follows.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>the application is for the approval of a person to perform a designated senior management function, and</p></content></level><level class="para1"><num>(b)</num><content><p>the authorised person concerned is a relevant authorised person (see section 71A),</p></content></level><wrapUp><p>the appropriate regulator must require the application to contain, or be accompanied by, a statement setting out the aspects of the affairs of the authorised person concerned which it is intended that the person will be responsible for managing in performing the function.</p></wrapUp></subsection><subsection><num>(2B)</num><content><p>A statement provided under subsection (2A) is known as a “statement of responsibilities”.</p></content></subsection><subsection><num>(2C)</num><content><p>In subsection (2A) “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-20-3"><num><noteRef href="#key-0d322dd3064f3520728110a3cb5985a5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(3)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-1"><num>(1)</num><content><p>Section 60 of FSMA 2000 (applications for approval) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-2"><num>(2)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>the application is for the approval of a person to perform a designated senior management function, and</p></content></level><level class="para1"><num>(b)</num><content><p>the authorised person concerned is a relevant authorised person (see section 71A),</p></content></level><wrapUp><p>the appropriate regulator must require the application to contain, or be accompanied by, a statement setting out the aspects of the affairs of the authorised person concerned which it is intended that the person will be responsible for managing in performing the function.</p></wrapUp></subsection><subsection><num>(2B)</num><content><p>A statement provided under subsection (2A) is known as a “statement of responsibilities”.</p></content></subsection><subsection><num>(2C)</num><content><p>In subsection (2A) “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-3"><num><noteRef href="#key-0d322dd3064f3520728110a3cb5985a5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(3)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-21"><num>21</num><heading>Vetting by relevant authorised persons of candidates for approval</heading><content><p><mod>After section 60 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Vetting of candidates by relevant authorised persons</heading><subsection><num>(1)</num><content><p>Before a relevant authorised person may make an application for a regulator's approval under section 59, the authorised person must be satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates.</p></content></subsection><subsection><num>(2)</num><intro><p>In deciding that question, the authorised person must have regard, in particular, to whether the candidate, or any person who may perform a function on the candidate's behalf—</p></intro><level class="para1"><num>(a)</num><content><p>has obtained a qualification,</p></content></level><level class="para1"><num>(b)</num><content><p>has undergone, or is undergoing, training,</p></content></level><level class="para1"><num>(c)</num><content><p>possesses a level of competence, or</p></content></level><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level><wrapUp><p>required by general rules made by the regulator in relation to persons performing functions of the kind to which the application relates.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-22"><num>22</num><heading>Determination of applications for approval</heading><intro><p>In section 61 of FSMA 2000 (determination of applications), in subsection (2)—</p></intro><level class="para1" eId="section-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b), and</p></content></level><level class="para1" eId="section-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23"><num>23</num><heading>Power to give approval subject to conditions or for limited period</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Section 61 of FSMA 2000 (determination of applications) is amended as follows.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>The regulator to which an application for approval is made under section 60 may grant the application only if—</p></intro><level class="para1"><num>(a)</num><content><p>it is satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the application is for approval to perform a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person (a “relevant senior management application”), it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (as to which, see subsection (2B)).</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-3"><num>(3)</num><content><p><mod>In subsection (2), for “deciding that question” substitute <quotedText>“
determining the application
”</quotedText>.</mod></p></content></subsection><subsection eId="section-23-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>The regulator to which a relevant senior management application is made under section 60 may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>grant the application subject to any conditions that the regulator considers appropriate, and</p></content></level><level class="para1"><num>(b)</num><content><p>grant the application so as to give approval only for a limited period.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>A regulator may exercise the power under paragraph (a) or (b) of subsection (2B) only if—</p></intro><level class="para1"><num>(a)</num><content><p>where the regulator is the FCA, it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives, and</p></content></level><level class="para1"><num>(b)</num><content><p>where the regulator is the PRA, it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(2D)</num><content><p>Consent given by the FCA for the granting of the application may be conditional on the manner in which the PRA exercises its power under subsection (2B).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-5"><num>(5)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3ZA)</num><content><p>In the case of a relevant senior management application, the reference in subsection (3)(a) to granting the application is a reference to granting it without imposing conditions or limiting the period for which the approval has effect.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-23-6"><num><noteRef href="#key-68a42ee3aeceaf80268d662c8db5d310" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(6)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection><subsection eId="section-23-7"><num>(7)</num><intro><p>In section 62 of FSMA 2000 (applications for approval: procedure and right to refer to Tribunal)—</p></intro><level class="para1" eId="section-23-7-a"><num>(a)</num><content><p><mod>in subsection (2), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-b"><num>(b)</num><content><p><mod>in subsection (3), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-c"><num>(c)</num><content><p><mod>in subsection (4), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-1"><num>(1)</num><content><p>Section 61 of FSMA 2000 (determination of applications) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro><p>The regulator to which an application for approval is made under section 60 may grant the application only if—</p></intro><level class="para1"><num>(a)</num><content><p>it is satisfied that the person in respect of whom the application is made (“the candidate”) is a fit and proper person to perform the function to which the application relates, or</p></content></level><level class="para1"><num>(b)</num><content><p>in a case where the application is for approval to perform a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person (a “relevant senior management application”), it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (as to which, see subsection (2B)).</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-3"><num>(3)</num><content><p><mod>In subsection (2), for “deciding that question” substitute <quotedText>“
determining the application
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><intro><p>The regulator to which a relevant senior management application is made under section 60 may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>grant the application subject to any conditions that the regulator considers appropriate, and</p></content></level><level class="para1"><num>(b)</num><content><p>grant the application so as to give approval only for a limited period.</p></content></level></subsection><subsection><num>(2C)</num><intro><p>A regulator may exercise the power under paragraph (a) or (b) of subsection (2B) only if—</p></intro><level class="para1"><num>(a)</num><content><p>where the regulator is the FCA, it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives, and</p></content></level><level class="para1"><num>(b)</num><content><p>where the regulator is the PRA, it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(2D)</num><content><p>Consent given by the FCA for the granting of the application may be conditional on the manner in which the PRA exercises its power under subsection (2B).</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-5"><num>(5)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3ZA)</num><content><p>In the case of a relevant senior management application, the reference in subsection (3)(a) to granting the application is a reference to granting it without imposing conditions or limiting the period for which the approval has effect.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-6"><num><noteRef href="#key-68a42ee3aeceaf80268d662c8db5d310" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(6)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-7"><num>(7)</num><intro><p>In section 62 of FSMA 2000 (applications for approval: procedure and right to refer to Tribunal)—</p></intro><level class="para1" eId="section-23-7-a"><num>(a)</num><content><p><mod>in subsection (2), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-b"><num>(b)</num><content><p><mod>in subsection (3), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-23-7-c"><num>(c)</num><content><p><mod>in subsection (4), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-23-7-a"><num>(a)</num><content><p><mod>in subsection (2), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-23-7-b"><num>(b)</num><content><p><mod>in subsection (3), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-23-7-c"><num>(c)</num><content><p><mod>in subsection (4), after “the application” insert <quotedText>“
, or to grant the application subject to conditions or for a limited period (or both)
”</quotedText>.</mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24"><num>24</num><heading>Changes in responsibilities of senior managers</heading><content><p><mod>After section 62 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>62A</num><heading>Changes in responsibilities of senior managers</heading><subsection><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1"><num>(a)</num><content><p>an authorised person has made an application to the appropriate regulator for approval under section 59 for a person to perform a designated senior management function,</p></content></level><level class="para1"><num>(b)</num><content><p>the application contained, or was accompanied by, a statement of responsibilities under section 60(2A), and</p></content></level><level class="para1"><num>(c)</num><content><p>the application has been granted.</p></content></level></subsection><subsection><num>(2)</num><content><p>If, since the granting of the application, there has been any significant change in the aspects of the authorised person's affairs which the person is responsible for managing in performing the function, the authorised person must provide the appropriate regulator with a revised statement of responsibilities.</p></content></subsection><subsection><num>(3)</num><intro><p>The appropriate regulator may require the authorised person—</p></intro><level class="para1"><num>(a)</num><content><p>to provide information which the person is required to give under this section in such form as the appropriate regulator may direct, or</p></content></level><level class="para1"><num>(b)</num><content><p>to verify such information in such a way as the appropriate regulator may direct.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” has the same meaning as in section 60;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-25"><num>25</num><heading>Duty to notify regulator of grounds for withdrawal of approval</heading><content><p><mod>In section 63 of FSMA 2000 (withdrawal of approval), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><intro><p>At least once a year each relevant authorised person must, in relation to every person in relation to whom an approval has been given on the application of the authorised person—</p></intro><level class="para1"><num>(a)</num><content><p>consider whether there are any grounds on which a regulator could withdraw the approval under this section, and</p></content></level><level class="para1"><num>(b)</num><content><p>if the authorised person is of the opinion that there are such grounds, notify the regulator of those grounds.</p></content></level><wrapUp><p>(For the meaning of “relevant authorised person”, see section 71A.)</p></wrapUp></subsection></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-26"><num>26</num><heading>Variation of approval</heading><content><p><mod>After section 63 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>63ZA</num><heading>Variation of senior manager's approval at request of relevant authorised person</heading><subsection><num>(1)</num><intro><p>Where an application for approval under section 59 is granted subject to conditions, the authorised person concerned may apply to the appropriate regulator to vary the approval by—</p></intro><level class="para1"><num>(a)</num><content><p>varying a condition,</p></content></level><level class="para1"><num>(b)</num><content><p>removing a condition, or</p></content></level><level class="para1"><num>(c)</num><content><p>imposing a new condition.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“The appropriate regulator”—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an application for variation of an approval in a way described in subsection (1)(a) or (b), means whichever of the FCA or the PRA imposed the condition concerned;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of an application for variation of an approval in the way described in subsection (1)(c), means the regulator who gave the approval.</p></content></level></subsection><subsection><num>(3)</num><content><p>The PRA must consult the FCA before determining an application under this section, unless the application relates to the variation or removal of a condition which was imposed by the PRA in exercise of its power under section 63ZB.</p></content></subsection><subsection><num>(4)</num><intro><p>The regulator to which an application is made under this section must, before the end of the period for consideration, determine whether—</p></intro><level class="para1"><num>(a)</num><content><p>to grant the application; or</p></content></level><level class="para1"><num>(b)</num><content><p>to give a warning notice under section 62(2).</p></content></level></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-the-period-for-consideration">The period for consideration</term>” means the period of 3 months beginning with the date on which the regulator receives the application.</p></content></subsection><subsection><num>(6)</num><content><p>The FCA may refuse an application under this section if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives.</p></content></subsection><subsection><num>(7)</num><content><p>The PRA may refuse an application under this section if it appears to the PRA that it is desirable to do so in order to advance any of its objectives.</p></content></subsection><subsection><num>(8)</num><content><p>The following provisions apply to an application made under this section for variation of an approval as they apply to an application for approval made under section 60—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(2) to (8),</p></item><item><p>section 61(4) and (5),</p></item><item><p>section 62.</p></item></blockList></content></subsection></section><section><num>63ZB</num><heading>Variation of senior manager's approval on initiative of regulator</heading><subsection><num>(1)</num><content><p>The FCA may vary an approval under section 59 given by the FCA or the PRA for the performance of a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person if the FCA considers that it is desirable to do so in order to advance one or more of its operational objectives.</p></content></subsection><subsection><num>(2)</num><intro><p>The PRA may vary an approval under section 59 for the performance of a designated senior management function in relation to the carrying on of a regulated activity by a relevant authorised person if—</p></intro><level class="para1"><num>(a)</num><intro><p>either—</p></intro><level class="para2"><num>(i)</num><content><p>the PRA gave the approval, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the FCA gave the approval and the relevant authorised person is a PRA-authorised person, and</p></content></level></level><level class="para1"><num>(b)</num><content><p>the PRA considers that it is desirable to do so in order to advance any of its objectives.</p></content></level></subsection><subsection><num>(3)</num><intro><p>A regulator may vary an approval by—</p></intro><level class="para1"><num>(a)</num><content><p>imposing a condition,</p></content></level><level class="para1"><num>(b)</num><content><p>varying a condition,</p></content></level><level class="para1"><num>(c)</num><content><p>removing a condition, or</p></content></level><level class="para1"><num>(d)</num><content><p>limiting the period for which the approval is to have effect.</p></content></level></subsection><subsection><num>(4)</num><content><p>Before one regulator varies an approval given by the other regulator, it must consult the other regulator.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></subsection><subsection><num>(6)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>63ZC</num><heading>Exercise of power under section 63ZB: procedure</heading><subsection><num>(1)</num><content><p>This section applies to an exercise, by either regulator, of the power to vary an approval under section 63ZB.</p></content></subsection><subsection><num>(2)</num><intro><p>A variation takes effect—</p></intro><level class="para1"><num>(a)</num><content><p>immediately, if the notice given under subsection (4) states that that is the case,</p></content></level><level class="para1"><num>(b)</num><content><p>on such date as is specified in the notice, or</p></content></level><level class="para1"><num>(c)</num><content><p>if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.</p></content></level></subsection><subsection><num>(3)</num><content><p>A variation may be expressed to take effect immediately (or on a specified date) only if the regulator concerned, having regard to the ground on which it is exercising the power to vary, reasonably considers that it is necessary for the variation to take effect immediately (or on that date).</p></content></subsection><subsection><num>(4)</num><content><p>If either regulator proposes to vary an approval or varies an approval with immediate effect, it must give each of the interested parties written notice.</p></content></subsection><subsection><num>(5)</num><intro><p>The notice must—</p></intro><level class="para1"><num>(a)</num><content><p>give details of the variation,</p></content></level><level class="para1"><num>(b)</num><content><p>state the regulator's reasons for the variation,</p></content></level><level class="para1"><num>(c)</num><content><p>inform the interested parties that each of them may make representations to the regulator within such period as may be specified in the notice (whether or not any of the interested parties has referred the matter to the Tribunal),</p></content></level><level class="para1"><num>(d)</num><content><p>inform the interested parties of when the variation takes effect, and</p></content></level><level class="para1"><num>(e)</num><content><p>inform the interested parties of the right of each of them to refer the matter to the Tribunal.</p></content></level></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-interested-parties">The interested parties</term>”, in relation to an approval, are—</p></intro><level class="para1"><num>(a)</num><content><p>the person on whose application it was given (“A”),</p></content></level><level class="para1"><num>(b)</num><content><p>the person in respect of whom it was given (“B”), and</p></content></level><level class="para1"><num>(c)</num><content><p>the person by whom B's services are retained, if not A.</p></content></level></subsection><subsection><num>(7)</num><content><p>The regulator giving the notice may extend the period allowed under the notice for making representations.</p></content></subsection><subsection><num>(8)</num><intro><p>If having considered the representations made by the interested parties, the regulator decides—</p></intro><level class="para1"><num>(a)</num><content><p>to vary the approval, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the variation has taken effect, not to rescind it,</p></content></level><wrapUp><p>it must give each of the interested parties written notice.</p></wrapUp></subsection><subsection><num>(9)</num><intro><p>If having considered the representations made by the interested parties, the regulator decides—</p></intro><level class="para1"><num>(a)</num><content><p>not to vary the approval,</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the approval in a different way, or</p></content></level><level class="para1"><num>(c)</num><content><p>if the variation has taken effect, to rescind it,</p></content></level><wrapUp><p>it must give each of the interested parties written notice.</p></wrapUp></subsection><subsection><num>(10)</num><content><p>A notice under subsection (8) must inform the interested parties of the right of each of them to refer the matter to the Tribunal.</p></content></subsection><subsection><num>(11)</num><content><p>A notice under subsection (9)(b) must comply with subsection (5).</p></content></subsection><subsection><num>(12)</num><content><p>If a notice informs the interested parties of the right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.</p></content></subsection><subsection><num>(13)</num><content><p>For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 391(8).</p></content></subsection><subsection><num>(14)</num><content><p>“<term refersTo="#term-approval">Approval</term>” means an approval under section 59.</p></content></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27"><num>27</num><heading>Statement of policy</heading><content><p><mod>After section 63ZC of FSMA 2000 (inserted by section 26 above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>63ZD</num><heading>Statement of policy relating to conditional approval and variation</heading><subsection><num>(1)</num><intro><p>Each regulator must prepare and issue a statement of its policy with respect to—</p></intro><level class="para1"><num>(a)</num><content><p>its giving of approval under section 59 subject to conditions or for a limited period only, and</p></content></level><level class="para1"><num>(b)</num><content><p>its variation under section 63ZA or 63ZB of an approval given under section 59.</p></content></level></subsection><subsection><num>(2)</num><content><p>A regulator may at any time alter or replace a statement issued by it under this section.</p></content></subsection><subsection><num>(3)</num><content><p>If a statement issued under this section is altered or replaced by a regulator, the regulator must issue the altered or replacement statement.</p></content></subsection><subsection><num>(4)</num><content><p>A statement issued under this section must be published by the regulator concerned in the way appearing to the regulator to be best calculated to bring it to the attention of the public.</p></content></subsection><subsection><num>(5)</num><content><p>A regulator may charge a reasonable fee for providing a person with a copy of a statement published under this section.</p></content></subsection><subsection><num>(6)</num><content><p>A regulator must, without delay, give the Treasury a copy of any statement which it publishes under this section.</p></content></subsection></section><section><num>63ZE</num><heading>Statement of policy: procedure</heading><subsection><num>(1)</num><intro><p>Before issuing a statement of policy under section 63ZD, a regulator (“the issuing regulator”) must—</p></intro><level class="para1"><num>(a)</num><content><p>consult the other regulator, and</p></content></level><level class="para1"><num>(b)</num><content><p>publish a draft of the proposed statement in the way appearing to the issuing regulator to be best calculated to bring it to the attention of the public.</p></content></level></subsection><subsection><num>(2)</num><content><p>The duty of the FCA to consult the PRA under subsection (1)(a) applies only in so far as the statement of policy applies to persons whose approval under section 59 relates to the performance of a function designated by the FCA as a senior management function under section 59(6A) in relation to the carrying on by PRA-authorised persons of regulated activities.</p></content></subsection><subsection><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposal may be made to the issuing regulator within a specified time.</p></content></subsection><subsection><num>(4)</num><content><p>Before issuing the proposed statement, the issuing regulator must have regard to any representations made to it in accordance with subsection (3).</p></content></subsection><subsection><num>(5)</num><intro><p>If the issuing regulator issues the proposed statement it must publish an account, in general terms, of—</p></intro><level class="para1"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3), and</p></content></level><level class="para1"><num>(b)</num><content><p>its response to them.</p></content></level></subsection><subsection><num>(6)</num><intro><p>If the statement differs from the draft published under subsection (1) in a way which is in the opinion of the issuing regulator significant, the issuing regulator—</p></intro><level class="para1"><num>(a)</num><content><p>must before issuing it carry out any consultation required by subsection (1)(a), and</p></content></level><level class="para1"><num>(b)</num><content><p>must (in addition to complying with subsection (5)) publish details of the difference.</p></content></level></subsection><subsection><num>(7)</num><content><p>The issuing regulator may charge a reasonable fee for providing a person with a draft published under subsection (1)(b).</p></content></subsection><subsection><num>(8)</num><content><p>This section also applies to a proposal to alter or replace a statement.</p></content></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28"><num>28</num><heading>Extension of limitation periods for imposing sanctions</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Section 63A of FSMA 2000 (power to impose penalties) is amended as follows.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection><subsection eId="section-28-3"><num>(3)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the performance of a controlled function without approval before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the performance of a controlled function without approval on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-28-4"><num>(4)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subsection><subsection eId="section-28-5"><num>(5)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5ZA)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to misconduct which occurs before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to misconduct which occurs on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-1"><num>(1)</num><content><p>Section 63A of FSMA 2000 (power to impose penalties) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-2"><num>(2)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-3"><num>(3)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the performance of a controlled function without approval before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the performance of a controlled function without approval on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-4"><num>(4)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-5"><num>(5)</num><content><p><mod>In subsection (4), for “period of three years” substitute <quotedText>“
relevant period
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-6"><num>(6)</num><content><p><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5ZA)</num><intro><p>The relevant period” is—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to misconduct which occurs before the day on which this subsection comes into force, the period of 3 years, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to misconduct which occurs on or after that day, the period of 6 years.</p></content></level></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-29"><num>29</num><heading>Certification of employees by relevant authorised persons</heading><content><p><mod>After section 63D of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Certification of employees</i></heading><section><num>63E</num><heading>Certification of employees by relevant authorised persons</heading><subsection><num>(1)</num><content><p>A relevant authorised person (“A”) must take reasonable care to ensure that no employee of A performs a specified function under an arrangement entered into by A in relation to the carrying on by A of a regulated activity, unless the employee has a valid certificate issued by A under section 63F.</p></content></subsection><subsection><num>(2)</num><intro><p>“Specified function”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the carrying on of a regulated activity by a PRA-authorised person, means a function of a description specified in rules made by the FCA or the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the carrying on of a regulated activity by any other authorised person, means a function of a description specified in rules made by the FCA.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The FCA may specify a description of function under subsection (2)(a) or (b) only if, in relation to the carrying on of a regulated activity by a relevant authorised person of a particular description—</p></intro><level class="para1"><num>(a)</num><content><p>the function is not a controlled function in relation to the carrying on of that activity by a relevant authorised person of that description, but</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA is satisfied that the function is nevertheless a significant-harm function.</p></content></level></subsection><subsection><num>(4)</num><intro><p>The PRA may specify a description of function under subsection (2)(a) only if, in relation to the carrying on of a regulated activity by a relevant PRA-authorised person of a particular description—</p></intro><level class="para1"><num>(a)</num><content><p>the function is not a controlled function in relation to the carrying on of that activity by a relevant PRA-authorised person of that description, but</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA is satisfied that the function is nevertheless a significant-harm function.</p></content></level></subsection><subsection><num>(5)</num><intro><p>A function is a “<term refersTo="#term-significant-harm-function">significant-harm function</term>”, in relation to the carrying on of a regulated activity by an authorised person, if—</p></intro><level class="para1"><num>(a)</num><content><p>the function will require the person performing it to be involved in one or more aspects of the authorised person's affairs, so far as relating to the activity, and</p></content></level><level class="para1"><num>(b)</num><content><p>those aspects involve, or might involve, a risk of significant harm to the authorised person or any of its customers.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Each regulator must—</p></intro><level class="para1"><num>(a)</num><content><p>keep under review the exercise of its power under subsection (2) to specify any significant-harm function as a specified function, and</p></content></level><level class="para1"><num>(b)</num><content><p>exercise that power in a way that it considers will minimise the risk of employees of relevant authorised persons performing significant-harm functions which they are not fit and proper persons to perform.</p></content></level></subsection><subsection><num>(7)</num><content><p>Subsection (1) does not apply to an arrangement which allows an employee to perform a function if the question of whether the employee is a fit and proper person to perform the function is reserved under any of the single market directives or the emission allowance auctioning regulation to an authority in a country or territory outside the United Kingdom.</p></content></subsection><subsection><num>(8)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controlled-function">controlled function</term>” has the meaning given by section 59(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-customer">customer</term>”, in relation to an authorised person, means a person who is using, or who is or may be contemplating using, any of the services provided by the authorised person;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person.</p></content></hcontainer></subsection><subsection><num>(9)</num><intro><p>In this section any reference to an employee of a person (“A”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to A under an arrangement made between A and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by A as to the manner in which those services are provided.</p></content></level></subsection><subsection><num>(10)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>63F</num><heading>Issuing of certificates</heading><subsection><num>(1)</num><content><p>A relevant authorised person may issue a certificate to a person under this section only if the authorised person is satisfied that the person is a fit and proper person to perform the function to which the certificate relates.</p></content></subsection><subsection><num>(2)</num><intro><p>In deciding whether the person is a fit and proper person to perform the function, the relevant authorised person must have regard, in particular, to whether the person—</p></intro><level class="para1"><num>(a)</num><content><p>has obtained a qualification,</p></content></level><level class="para1"><num>(b)</num><content><p>has undergone, or is undergoing, training,</p></content></level><level class="para1"><num>(c)</num><content><p>possesses a level of competence, or</p></content></level><level class="para1"><num>(d)</num><content><p>has the personal characteristics,</p></content></level><wrapUp><p>required by general rules made by the appropriate regulator in relation to employees performing functions of that kind.</p></wrapUp></subsection><subsection><num>(3)</num><intro><p>In subsection (2) “<term refersTo="#term-the-appropriate-regulator">the appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to employees of PRA-authorised persons, the FCA or the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to employees of any other authorised person, the FCA.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A certificate issued by a relevant authorised person to a person under this section must—</p></intro><level class="para1"><num>(a)</num><content><p>state that the authorised person is satisfied that the person is a fit and proper person to perform the function to which the certificate relates, and</p></content></level><level class="para1"><num>(b)</num><content><p>set out the aspects of the affairs of the authorised person in which the person will be involved in performing the function.</p></content></level></subsection><subsection><num>(5)</num><content><p>A certificate issued under this section is valid for a period of 12 months beginning with the day on which it is issued.</p></content></subsection><subsection><num>(6)</num><intro><p>If, after having considered whether a person is a fit and proper person to perform a specified function, a relevant authorised person decides not to issue a certificate to the person under this section, the authorised person must give the person a notice in writing stating—</p></intro><level class="para1"><num>(a)</num><content><p>what steps (if any) the authorised person proposes to take in relation to the person as a result of the decision, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reasons for proposing to take those steps.</p></content></level></subsection><subsection><num>(7)</num><content><p>A relevant authorised person must maintain a record of every employee who has a valid certificate issued by it under this section.</p></content></subsection><subsection><num>(8)</num><content><p>Expressions used in this section and in section 63E have the same meaning in this section as they have in that section.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30"><num>30</num><heading>Rules of conduct</heading><subsection eId="section-30-1"><num>(1)</num><content><p>Part 5 of FSMA 2000 (performance of regulated activities) is amended as follows.</p></content></subsection><subsection eId="section-30-2"><num>(2)</num><content><p>Omit sections 64 and 65 (and the italic cross-heading preceding them).</p></content></subsection><subsection eId="section-30-3"><num>(3)</num><content><p><mod>Before section 66 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Conduct of approved persons and others</i></heading><section><num>64A</num><heading>Rules of conduct</heading><subsection><num>(1)</num><intro><p>If it appears to the FCA to be necessary or expedient for the purpose of advancing one or more of its operational objectives, the FCA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom either regulator has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons who are employees of relevant authorised persons (see section 71A).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If it appears to the PRA to be necessary or expedient for the purpose of advancing any of its objectives, the PRA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom it has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons in relation to whom the FCA has given its approval under section 59 in respect of the performance by them of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity;</p></content></level><level class="para1"><num>(c)</num><content><p>persons who are employees of relevant PRA-authorised persons.</p></content></level></subsection><subsection><num>(3)</num><intro><p>In subsection (2)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person (see section 71A), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></hcontainer></subsection><subsection><num>(4)</num><content><p>Rules made under this section must relate to the conduct of persons in relation to the performance by them of qualifying functions.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection (4) “<term refersTo="#term-qualifying-function">qualifying function</term>”, in relation to a person, means a function relating to the carrying on of activities (whether or not regulated activities) by—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an approved person, the person on whose application approval was given, and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the person's employer.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section any reference to an employee of a person (“P”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to P under an arrangement made between P and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by P as to the manner in which those services are provided,</p></content></level><wrapUp><p>and “employer” is to be read accordingly.</p></wrapUp></subsection></section><section><num>64B</num><heading>Rules of conduct: responsibilities of relevant authorised persons</heading><subsection><num>(1)</num><content><p>This section applies where a regulator makes rules under section 64A (“conduct rules”).</p></content></subsection><subsection><num>(2)</num><intro><p>Every relevant authorised person must—</p></intro><level class="para1"><num>(a)</num><content><p>notify all relevant persons of the conduct rules that apply in relation to them, and</p></content></level><level class="para1"><num>(b)</num><content><p>take all reasonable steps to secure that those persons understand how those rules apply in relation to them.</p></content></level></subsection><subsection><num>(3)</num><content><p>The steps which a relevant authorised person must take to comply with subsection (2)(b) include, in particular, the provision of suitable training.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-person">relevant person</term>”, in relation to an authorised person, means—</p></intro><level class="para1"><num>(a)</num><content><p>any person in relation to whom an approval is given under section 59 on the application of the authorised person, and</p></content></level><level class="para1"><num>(b)</num><content><p>any employee of the authorised person.</p></content></level></subsection><subsection><num>(5)</num><content><p>If a relevant authorised person knows or suspects that a relevant person has failed to comply with any conduct rules, the authorised person must notify the regulator of that fact.</p></content></subsection><subsection><num>(6)</num><content><p>In this section “<term refersTo="#term-employee">employee</term>”, in relation to an authorised person, has the same meaning as in section 64A.</p></content></subsection><subsection><num>(7)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-1"><num>(1)</num><content><p>Part 5 of FSMA 2000 (performance of regulated activities) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-2"><num>(2)</num><content><p>Omit sections 64 and 65 (and the italic cross-heading preceding them).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30-3"><num>(3)</num><content><p><mod>Before section 66 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Conduct of approved persons and others</i></heading><section><num>64A</num><heading>Rules of conduct</heading><subsection><num>(1)</num><intro><p>If it appears to the FCA to be necessary or expedient for the purpose of advancing one or more of its operational objectives, the FCA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom either regulator has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons who are employees of relevant authorised persons (see section 71A).</p></content></level></subsection><subsection><num>(2)</num><intro><p>If it appears to the PRA to be necessary or expedient for the purpose of advancing any of its objectives, the PRA may make rules about the conduct of the following persons—</p></intro><level class="para1"><num>(a)</num><content><p>persons in relation to whom it has given its approval under section 59;</p></content></level><level class="para1"><num>(b)</num><content><p>persons in relation to whom the FCA has given its approval under section 59 in respect of the performance by them of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity;</p></content></level><level class="para1"><num>(c)</num><content><p>persons who are employees of relevant PRA-authorised persons.</p></content></level></subsection><subsection><num>(3)</num><intro><p>In subsection (2)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person (see section 71A), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></hcontainer></subsection><subsection><num>(4)</num><content><p>Rules made under this section must relate to the conduct of persons in relation to the performance by them of qualifying functions.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsection (4) “<term refersTo="#term-qualifying-function">qualifying function</term>”, in relation to a person, means a function relating to the carrying on of activities (whether or not regulated activities) by—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of an approved person, the person on whose application approval was given, and</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the person's employer.</p></content></level></subsection><subsection><num>(6)</num><intro><p>In this section any reference to an employee of a person (“P”) includes a reference to a person who—</p></intro><level class="para1"><num>(a)</num><content><p>personally provides, or is under an obligation personally to provide, services to P under an arrangement made between P and the person providing the services or another person, and</p></content></level><level class="para1"><num>(b)</num><content><p>is subject to (or to the right of) supervision, direction or control by P as to the manner in which those services are provided,</p></content></level><wrapUp><p>and “employer” is to be read accordingly.</p></wrapUp></subsection></section><section><num>64B</num><heading>Rules of conduct: responsibilities of relevant authorised persons</heading><subsection><num>(1)</num><content><p>This section applies where a regulator makes rules under section 64A (“conduct rules”).</p></content></subsection><subsection><num>(2)</num><intro><p>Every relevant authorised person must—</p></intro><level class="para1"><num>(a)</num><content><p>notify all relevant persons of the conduct rules that apply in relation to them, and</p></content></level><level class="para1"><num>(b)</num><content><p>take all reasonable steps to secure that those persons understand how those rules apply in relation to them.</p></content></level></subsection><subsection><num>(3)</num><content><p>The steps which a relevant authorised person must take to comply with subsection (2)(b) include, in particular, the provision of suitable training.</p></content></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-person">relevant person</term>”, in relation to an authorised person, means—</p></intro><level class="para1"><num>(a)</num><content><p>any person in relation to whom an approval is given under section 59 on the application of the authorised person, and</p></content></level><level class="para1"><num>(b)</num><content><p>any employee of the authorised person.</p></content></level></subsection><subsection><num>(5)</num><content><p>If a relevant authorised person knows or suspects that a relevant person has failed to comply with any conduct rules, the authorised person must notify the regulator of that fact.</p></content></subsection><subsection><num>(6)</num><content><p>In this section “<term refersTo="#term-employee">employee</term>”, in relation to an authorised person, has the same meaning as in section 64A.</p></content></subsection><subsection><num>(7)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31"><num>31</num><heading>Requirement to notify regulator of disciplinary action</heading><content><p><mod>After section 64B of FSMA 2000 (inserted by section 30 above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>64C</num><heading>Requirement for relevant authorised persons to notify regulator of disciplinary action</heading><subsection><num>(1)</num><intro><p>If—</p></intro><level class="para1"><num>(a)</num><content><p>a relevant authorised person takes disciplinary action in relation to a relevant person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reason, or one of the reasons, for taking that action is a reason specified in rules made by the appropriate regulator for the purposes of this section,</p></content></level><wrapUp><p>the relevant authorised person must notify that regulator of that fact.</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-disciplinary-action">Disciplinary action</term>”, in relation to a person, means any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>the issuing of a formal written warning;</p></content></level><level class="para1"><num>(b)</num><content><p>the suspension or dismissal of the person;</p></content></level><level class="para1"><num>(c)</num><content><p>the reduction or recovery of any of the person's remuneration.</p></content></level></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to relevant authorised persons that are PRA-authorised persons, the FCA or the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to any other relevant authorised persons, the FCA.</p></content></level></subsection><subsection><num>(4)</num><content><p>“<term refersTo="#term-relevant-person">Relevant person</term>” has the same meaning as in section 64B.</p></content></subsection><subsection><num>(5)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32"><num>32</num><heading>Definition of “misconduct”</heading><subsection eId="section-32-1"><num>(1)</num><intro><p>In section 66 of FSMA 2000 (disciplinary powers)—</p></intro><level class="para1" eId="section-32-1-a"><num>(a)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For provision about when a person is guilty of misconduct for the purposes of action by a regulator—</p></intro><level class="para1"><num>(a)</num><content><p>see section 66A, in the case of action by the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>see section 66B, in the case of action by the PRA.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-32-1-b"><num>(b)</num><content><p>omit subsections (2), (2A), (6) and (7).</p></content></level></subsection><subsection eId="section-32-2"><num>(2)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>66A</num><heading>Misconduct: action by the FCA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the FCA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the FCA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by an authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in relation to the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the FCA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom an approval is given under section 59, and</p></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom such approval is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A.</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>66B</num><heading>Misconduct: action by the PRA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the PRA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the PRA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant PRA-authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by a PRA-authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in respect of the performance of a relevant senior management function in relation to the carrying on by the PRA-authorised person of a regulated activity, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant PRA-authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant PRA-authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the PRA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant PRA-authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>the PRA has given its approval under section 59, or</p></item><item><num>(ii)</num><p>the FCA has given its approval under section 59 in respect of the performance by the person of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity, and</p></item></blockList></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom approval under section 59 is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A;</p></item><item><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person;</p></item><item><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32-1"><num>(1)</num><intro><p>In section 66 of FSMA 2000 (disciplinary powers)—</p></intro><level class="para1" eId="section-32-1-a"><num>(a)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For provision about when a person is guilty of misconduct for the purposes of action by a regulator—</p></intro><level class="para1"><num>(a)</num><content><p>see section 66A, in the case of action by the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>see section 66B, in the case of action by the PRA.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-32-1-b"><num>(b)</num><content><p>omit subsections (2), (2A), (6) and (7).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-32-1-a"><num>(a)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro><p>For provision about when a person is guilty of misconduct for the purposes of action by a regulator—</p></intro><level class="para1"><num>(a)</num><content><p>see section 66A, in the case of action by the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>see section 66B, in the case of action by the PRA.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-1-b"><num>(b)</num><content><p>omit subsections (2), (2A), (6) and (7).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32-2"><num>(2)</num><content><p><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>66A</num><heading>Misconduct: action by the FCA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the FCA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the FCA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by an authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in relation to the authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the FCA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom an approval is given under section 59, and</p></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom such approval is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A.</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section><section><num>66B</num><heading>Misconduct: action by the PRA</heading><subsection><num>(1)</num><content><p>For the purposes of action by the PRA under section 66, a person is guilty of misconduct if any of conditions A to C is met in relation to the person.</p></content></subsection><subsection><num>(2)</num><intro><p>Condition A is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time failed to comply with rules made by the PRA under section 64A, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>an employee of a relevant PRA-authorised person.</p></content></level></level></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been knowingly concerned in a contravention of a relevant requirement by a PRA-authorised person, and</p></content></level><level class="para1"><num>(b)</num><intro><p>at that time the person was—</p></intro><level class="para2"><num>(i)</num><content><p>an approved person in respect of the performance of a relevant senior management function in relation to the carrying on by the PRA-authorised person of a regulated activity, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the case of a relevant PRA-authorised person, an employee of the authorised person.</p></content></level></level></subsection><subsection><num>(4)</num><intro><p>In this section “<term refersTo="#term-relevant-requirement">relevant requirement</term>” means a requirement—</p></intro><level class="para1"><num>(a)</num><content><p>imposed by or under this Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>imposed by any qualifying <abbr class="acronym" title="European Union">EU</abbr> provision specified, or of a description specified, for the purposes of this subsection by the Treasury by order.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Condition C is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person has at any time been a senior manager in relation to a relevant PRA-authorised person,</p></content></level><level class="para1"><num>(b)</num><content><p>there has at that time been (or continued to be) a contravention of a relevant requirement by the authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>the senior manager was at that time responsible for the management of any of the authorised person's activities in relation to which the contravention occurred.</p></content></level></subsection><subsection><num>(6)</num><content><p>But a person (“P”) is not guilty of misconduct by virtue of subsection (5) if P satisfies the PRA that P had taken such steps as a person in P's position could reasonably be expected to take to avoid the contravention occurring (or continuing).</p></content></subsection><subsection><num>(7)</num><intro><p>For the purposes of subsection (5)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant PRA-authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection><subsection><num>(8)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“approved person”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>means a person in relation to whom—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>the PRA has given its approval under section 59, or</p></item><item><num>(ii)</num><p>the FCA has given its approval under section 59 in respect of the performance by the person of a relevant senior management function in relation to the carrying on by a PRA-authorised person of a regulated activity, and</p></item></blockList></item><item><num>(b)</num><p>in relation to an authorised person, means a person in relation to whom approval under section 59 is given on the application of the authorised person;</p></item></blockList></item><item><p>“<term refersTo="#term-employee">employee</term>”, in relation to a person, has the same meaning as in section 64A;</p></item><item><p>“<term refersTo="#term-relevant-pra-authorised-person">relevant PRA-authorised person</term>” means a PRA-authorised person that is a relevant authorised person;</p></item><item><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></item></blockList></content></subsection><subsection><num>(9)</num><content><p>For the meaning of “relevant authorised person”, see section 71A.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33"><num><noteRef href="#key-b5d90ac6a23acefb47a1d34fc719c9e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>33</num><heading>Meaning of “relevant authorised person”</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-34"><num>34</num><heading>Recording information about senior managers</heading><subsection eId="section-34-1"><num>(1)</num><content><p>Section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>) is amended as follows.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content><p><mod>in paragraph (g), after sub-paragraph (iii) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>in a case where the authorised person concerned is a relevant authorised person, whether or not the person is a senior manager;</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(h)</num><intro><p>in the case of an approved person who is a senior manager in relation to a relevant authorised person—</p></intro><level class="para2"><num>(i)</num><content><p>whether a final notice has been given to the person under section 390; and</p></content></level><level class="para2"><num>(ii)</num><content><p>if so, any information about the matter to which the notice relates which has been published under section 391(4).</p></content></level></level></quotedStructure></mod></p></content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-authorised-person">relevant authorised person</term>” has the same meaning as in Part 5 (see section 71A),</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>The authorised person concerned”, in relation to an approved person, means the person on whose application approval was given.</p></content></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-1"><num>(1)</num><content><p>Section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-34-2"><num>(2)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content><p><mod>in paragraph (g), after sub-paragraph (iii) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>in a case where the authorised person concerned is a relevant authorised person, whether or not the person is a senior manager;</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(h)</num><intro><p>in the case of an approved person who is a senior manager in relation to a relevant authorised person—</p></intro><level class="para2"><num>(i)</num><content><p>whether a final notice has been given to the person under section 390; and</p></content></level><level class="para2"><num>(ii)</num><content><p>if so, any information about the matter to which the notice relates which has been published under section 391(4).</p></content></level></level></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-34-2-a"><num>(a)</num><content><p><mod>in paragraph (g), after sub-paragraph (iii) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>in a case where the authorised person concerned is a relevant authorised person, whether or not the person is a senior manager;</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-34-2-b"><num>(b)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(h)</num><intro><p>in the case of an approved person who is a senior manager in relation to a relevant authorised person—</p></intro><level class="para2"><num>(i)</num><content><p>whether a final notice has been given to the person under section 390; and</p></content></level><level class="para2"><num>(ii)</num><content><p>if so, any information about the matter to which the notice relates which has been published under section 391(4).</p></content></level></level></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-34-3"><num>(3)</num><content><p><mod>After subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-authorised-person">relevant authorised person</term>” has the same meaning as in Part 5 (see section 71A),</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-senior-manager">senior manager</term>”, in relation to a relevant authorised person, means a person who has approval under section 59 to perform a designated senior management function in relation to the carrying on by the authorised person of a regulated activity, and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-senior-management-function">designated senior management function</term>” means a function designated as a senior management function under section 59(6A) or (6B).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-34-4"><num>(4)</num><content><p><mod>For subsection (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9)</num><content><p>The authorised person concerned”, in relation to an approved person, means the person on whose application approval was given.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35"><num>35</num><heading>Consequential amendments relating to Part 4</heading><content><p>Schedule 3 (which contains further amendments relating to the provisions of this Part) has effect.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-4-crossheading-offence"><heading><i>Offence</i></heading><section eId="section-36"><num>36</num><heading>Offence relating to a decision causing a financial institution to fail</heading><subsection eId="section-36-1"><num>(1)</num><intro><p>A person (“S”) commits an offence if—</p></intro><level class="para1" eId="section-36-1-a"><num>(a)</num><intro><p>at a time when S is a senior manager in relation to a financial institution (“F”), S—</p></intro><level class="para2" eId="section-36-1-a-i"><num>(i)</num><content><p>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</p></content></level><level class="para2" eId="section-36-1-a-ii"><num>(ii)</num><content><p>fails to take steps that S could take to prevent such a decision being taken,</p></content></level></level><level class="para1" eId="section-36-1-b"><num>(b)</num><content><p>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,</p></content></level><level class="para1" eId="section-36-1-c"><num>(c)</num><content><p>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</p></content></level><level class="para1" eId="section-36-1-d"><num>(d)</num><content><p>the implementation of the decision causes the failure of the group institution.</p></content></level></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>A “<term refersTo="#term-group-institution" eId="term-group-institution">group institution</term>”, 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).</p></content></subsection><subsection eId="section-36-3"><num>(3)</num><content><p>Subsections (1) and (2) are to be read with the interpretative provisions in section 37.</p></content></subsection><subsection eId="section-36-4"><num>(4)</num><intro><p>A person guilty of an offence under this section is liable—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-36-4-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-75fc43aa2328ed4df5a5981ceb33bb4d-1677579713125" ukl:CommentaryRef="key-75fc43aa2328ed4df5a5981ceb33bb4d"><noteRef uk:name="commentary" href="#key-75fc43aa2328ed4df5a5981ceb33bb4d" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-43b258b20ce3195fc39ec5caf5a05ed0-1658396327269" ukl:CommentaryRef="key-43b258b20ce3195fc39ec5caf5a05ed0"><noteRef uk:name="commentary" href="#key-43b258b20ce3195fc39ec5caf5a05ed0" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-36-4-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-36-4-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.</p></content></level></subsection></section><section eId="section-37"><num>37</num><heading>Section 36: interpretation</heading><subsection eId="section-37-1"><num>(1)</num><content><p>This section has effect for the interpretation of section 36.</p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>“<term refersTo="#term-financial-institution" eId="term-financial-institution">Financial institution</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>is not an insurer or a credit union.</p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><content><p>Condition A is that it has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection eId="section-37-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-37-4-a"><num>(a)</num><content><p>it is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-37-4-b"><num>(b)</num><content><p>it has permission under Part 4A of that Act to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-37-4-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection eId="section-37-5"><num>(5)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-37-5-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-37-5-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-37-5-c"><num>(c)</num><content><p>“<term refersTo="#term-credit-union" eId="term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection eId="section-37-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-37-7"><num>(7)</num><content><p>A person is a “<term refersTo="#term-senior-manager" eId="term-senior-manager">senior manager</term>” 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.</p></content></subsection><subsection eId="section-37-8"><num><ins class="first" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48"><noteRef uk:name="commentary" href="#key-2ee3df9ece81bb490eb6b43424126b48" class="commentary"/>(8)</ins></num><intro><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">“Senior management function” means—</ins></p></intro><level class="para1" eId="section-37-8-an1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(a)</ins></num><content><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">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;</ins></p></content></level><level class="para1" eId="section-37-8-bn1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.</ins></p></content></level></subsection><subsection eId="section-37-9"><num>(9)</num><intro><p>A financial institution (“F”) is to be regarded as failing where—</p></intro><level class="para1" eId="section-37-9-a"><num>(a)</num><content><p>F enters insolvency,</p></content></level><level class="para1" eId="section-37-9-b"><num>(b)</num><content><p>any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to F, or</p></content></level><level class="para1" eId="section-37-9-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-37-10"><num>(10)</num><intro><p>In subsection (9)(a) “<term refersTo="#term-insolvency" eId="term-insolvency">insolvency</term>” includes—</p></intro><level class="para1" eId="section-37-10-a"><num>(a)</num><content><p>bankruptcy,</p></content></level><level class="para1" eId="section-37-10-b"><num>(b)</num><content><p>liquidation,</p></content></level><level class="para1" eId="section-37-10-c"><num>(c)</num><content><p>bank insolvency,</p></content></level><level class="para1" eId="section-37-10-ca"><num><ins class="first" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c"><noteRef uk:name="commentary" href="#key-72c0a4d83e63cf6688c5f21408bab04c" class="commentary"/>(ca)</ins></num><content><p><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">building society insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-cb"><num><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">(cb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">investment bank insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-d"><num>(d)</num><content><p>administration,</p></content></level><level class="para1" eId="section-37-10-e"><num>(e)</num><content><p>bank administration,</p></content></level><level class="para1" eId="section-37-10-ea"><num><ins class="first" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388"><noteRef uk:name="commentary" href="#key-4bf28f26aed2683441a8bffa1a52d388" class="commentary"/>(ea)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388">building society special administration,</ins></p></content></level><level class="para1" eId="section-37-10-f"><num>(f)</num><content><p>receivership,</p></content></level><level class="para1" eId="section-37-10-g"><num>(g)</num><content><p>a composition between F and F's creditors, and</p></content></level><level class="para1" eId="section-37-10-h"><num>(h)</num><content><p>a scheme of arrangement of F's affairs.</p></content></level></subsection><subsection eId="section-37-11"><num><ins class="first" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea"><noteRef uk:name="commentary" href="#key-45a8511cbefa8be492ef5c3fe2250cea" class="commentary"/>(11)</ins></num><intro><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">For the purposes of subsection (10)—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in the Banking Act 2009 (see section 136 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in that Act (see section 90 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-building-society-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” and “</ins><term refersTo="#term-building-society-special-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society special administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-investment-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">investment bank insolvency</ins></term><ins class="last" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” means any procedure established by regulations under section 233 of the Banking Act 2009.</ins></p></content></hcontainer></subsection></section><section eId="section-38"><num>38</num><heading>Institution of proceedings</heading><subsection eId="section-38-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-an-offence" eId="term-an-offence">an offence</term>” means an offence under section 36.</p></content></subsection><subsection eId="section-38-2"><num>(2)</num><intro><p>Proceedings for an offence may be instituted in England and Wales only—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions.</p></content></level></subsection><subsection eId="section-38-3"><num>(3)</num><intro><p>Proceedings for an offence may be instituted in Northern Ireland only—</p></intro><level class="para1" eId="section-38-3-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-3-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions for Northern Ireland.</p></content></level></subsection><subsection eId="section-38-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-38-5"><num>(5)</num><intro><p>Conditions or restrictions may be imposed under subsection (4) in relation to—</p></intro><level class="para1" eId="section-38-5-a"><num>(a)</num><content><p>proceedings generally, or</p></content></level><level class="para1" eId="section-38-5-b"><num>(b)</num><content><p>such proceedings, or categories of proceedings, as the Treasury may direct.</p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-36"><num>36</num><heading>Offence relating to a decision causing a financial institution to fail</heading><subsection eId="section-36-1"><num>(1)</num><intro><p>A person (“S”) commits an offence if—</p></intro><level class="para1" eId="section-36-1-a"><num>(a)</num><intro><p>at a time when S is a senior manager in relation to a financial institution (“F”), S—</p></intro><level class="para2" eId="section-36-1-a-i"><num>(i)</num><content><p>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</p></content></level><level class="para2" eId="section-36-1-a-ii"><num>(ii)</num><content><p>fails to take steps that S could take to prevent such a decision being taken,</p></content></level></level><level class="para1" eId="section-36-1-b"><num>(b)</num><content><p>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,</p></content></level><level class="para1" eId="section-36-1-c"><num>(c)</num><content><p>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</p></content></level><level class="para1" eId="section-36-1-d"><num>(d)</num><content><p>the implementation of the decision causes the failure of the group institution.</p></content></level></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>A “<term refersTo="#term-group-institution" eId="term-group-institution">group institution</term>”, 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).</p></content></subsection><subsection eId="section-36-3"><num>(3)</num><content><p>Subsections (1) and (2) are to be read with the interpretative provisions in section 37.</p></content></subsection><subsection eId="section-36-4"><num>(4)</num><intro><p>A person guilty of an offence under this section is liable—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-36-4-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-75fc43aa2328ed4df5a5981ceb33bb4d-1677579713125" ukl:CommentaryRef="key-75fc43aa2328ed4df5a5981ceb33bb4d"><noteRef uk:name="commentary" href="#key-75fc43aa2328ed4df5a5981ceb33bb4d" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-43b258b20ce3195fc39ec5caf5a05ed0-1658396327269" ukl:CommentaryRef="key-43b258b20ce3195fc39ec5caf5a05ed0"><noteRef uk:name="commentary" href="#key-43b258b20ce3195fc39ec5caf5a05ed0" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-36-4-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-36-4-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-1"><num>(1)</num><intro><p>A person (“S”) commits an offence if—</p></intro><level class="para1" eId="section-36-1-a"><num>(a)</num><intro><p>at a time when S is a senior manager in relation to a financial institution (“F”), S—</p></intro><level class="para2" eId="section-36-1-a-i"><num>(i)</num><content><p>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</p></content></level><level class="para2" eId="section-36-1-a-ii"><num>(ii)</num><content><p>fails to take steps that S could take to prevent such a decision being taken,</p></content></level></level><level class="para1" eId="section-36-1-b"><num>(b)</num><content><p>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,</p></content></level><level class="para1" eId="section-36-1-c"><num>(c)</num><content><p>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</p></content></level><level class="para1" eId="section-36-1-d"><num>(d)</num><content><p>the implementation of the decision causes the failure of the group institution.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-1-a"><num>(a)</num><intro><p>at a time when S is a senior manager in relation to a financial institution (“F”), S—</p></intro><level class="para2" eId="section-36-1-a-i"><num>(i)</num><content><p>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</p></content></level><level class="para2" eId="section-36-1-a-ii"><num>(ii)</num><content><p>fails to take steps that S could take to prevent such a decision being taken,</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-36-1-a-i"><num>(i)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-36-1-a-ii"><num>(ii)</num><content><p>fails to take steps that S could take to prevent such a decision being taken,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-1-b"><num>(b)</num><content><p>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,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-1-c"><num>(c)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-1-d"><num>(d)</num><content><p>the implementation of the decision causes the failure of the group institution.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-2"><num>(2)</num><content><p>A “<term refersTo="#term-group-institution" eId="term-group-institution">group institution</term>”, 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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-3"><num>(3)</num><content><p>Subsections (1) and (2) are to be read with the interpretative provisions in section 37.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-36-4"><num>(4)</num><intro><p>A person guilty of an offence under this section is liable—</p></intro><level class="para1" eId="section-36-4-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-36-4-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-75fc43aa2328ed4df5a5981ceb33bb4d-1677579713125" ukl:CommentaryRef="key-75fc43aa2328ed4df5a5981ceb33bb4d"><noteRef uk:name="commentary" href="#key-75fc43aa2328ed4df5a5981ceb33bb4d" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-43b258b20ce3195fc39ec5caf5a05ed0-1658396327269" ukl:CommentaryRef="key-43b258b20ce3195fc39ec5caf5a05ed0"><noteRef uk:name="commentary" href="#key-43b258b20ce3195fc39ec5caf5a05ed0" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-36-4-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-36-4-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-36-4-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-36-4-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-36-4-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-75fc43aa2328ed4df5a5981ceb33bb4d-1677579713125" ukl:CommentaryRef="key-75fc43aa2328ed4df5a5981ceb33bb4d"><noteRef uk:name="commentary" href="#key-75fc43aa2328ed4df5a5981ceb33bb4d" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-43b258b20ce3195fc39ec5caf5a05ed0-1658396327269" ukl:CommentaryRef="key-43b258b20ce3195fc39ec5caf5a05ed0"><noteRef uk:name="commentary" href="#key-43b258b20ce3195fc39ec5caf5a05ed0" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-36-4-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-36-4-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para2" eId="section-36-4-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-75fc43aa2328ed4df5a5981ceb33bb4d-1677579713125" ukl:CommentaryRef="key-75fc43aa2328ed4df5a5981ceb33bb4d"><noteRef uk:name="commentary" href="#key-75fc43aa2328ed4df5a5981ceb33bb4d" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-43b258b20ce3195fc39ec5caf5a05ed0-1658396327269" ukl:CommentaryRef="key-43b258b20ce3195fc39ec5caf5a05ed0"><noteRef uk:name="commentary" href="#key-43b258b20ce3195fc39ec5caf5a05ed0" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-36-4-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-36-4-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-36-4-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 7 years or a fine, or both.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-37"><num>37</num><heading>Section 36: interpretation</heading><subsection eId="section-37-1"><num>(1)</num><content><p>This section has effect for the interpretation of section 36.</p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>“<term refersTo="#term-financial-institution" eId="term-financial-institution">Financial institution</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>is not an insurer or a credit union.</p></content></level></subsection><subsection eId="section-37-3"><num>(3)</num><content><p>Condition A is that it has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection eId="section-37-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-37-4-a"><num>(a)</num><content><p>it is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-37-4-b"><num>(b)</num><content><p>it has permission under Part 4A of that Act to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-37-4-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection eId="section-37-5"><num>(5)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-37-5-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-37-5-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-37-5-c"><num>(c)</num><content><p>“<term refersTo="#term-credit-union" eId="term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection eId="section-37-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-37-7"><num>(7)</num><content><p>A person is a “<term refersTo="#term-senior-manager" eId="term-senior-manager">senior manager</term>” 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.</p></content></subsection><subsection eId="section-37-8"><num><ins class="first" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48"><noteRef uk:name="commentary" href="#key-2ee3df9ece81bb490eb6b43424126b48" class="commentary"/>(8)</ins></num><intro><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">“Senior management function” means—</ins></p></intro><level class="para1" eId="section-37-8-an1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(a)</ins></num><content><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">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;</ins></p></content></level><level class="para1" eId="section-37-8-bn1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.</ins></p></content></level></subsection><subsection eId="section-37-9"><num>(9)</num><intro><p>A financial institution (“F”) is to be regarded as failing where—</p></intro><level class="para1" eId="section-37-9-a"><num>(a)</num><content><p>F enters insolvency,</p></content></level><level class="para1" eId="section-37-9-b"><num>(b)</num><content><p>any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to F, or</p></content></level><level class="para1" eId="section-37-9-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-37-10"><num>(10)</num><intro><p>In subsection (9)(a) “<term refersTo="#term-insolvency" eId="term-insolvency">insolvency</term>” includes—</p></intro><level class="para1" eId="section-37-10-a"><num>(a)</num><content><p>bankruptcy,</p></content></level><level class="para1" eId="section-37-10-b"><num>(b)</num><content><p>liquidation,</p></content></level><level class="para1" eId="section-37-10-c"><num>(c)</num><content><p>bank insolvency,</p></content></level><level class="para1" eId="section-37-10-ca"><num><ins class="first" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c"><noteRef uk:name="commentary" href="#key-72c0a4d83e63cf6688c5f21408bab04c" class="commentary"/>(ca)</ins></num><content><p><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">building society insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-cb"><num><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">(cb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">investment bank insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-d"><num>(d)</num><content><p>administration,</p></content></level><level class="para1" eId="section-37-10-e"><num>(e)</num><content><p>bank administration,</p></content></level><level class="para1" eId="section-37-10-ea"><num><ins class="first" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388"><noteRef uk:name="commentary" href="#key-4bf28f26aed2683441a8bffa1a52d388" class="commentary"/>(ea)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388">building society special administration,</ins></p></content></level><level class="para1" eId="section-37-10-f"><num>(f)</num><content><p>receivership,</p></content></level><level class="para1" eId="section-37-10-g"><num>(g)</num><content><p>a composition between F and F's creditors, and</p></content></level><level class="para1" eId="section-37-10-h"><num>(h)</num><content><p>a scheme of arrangement of F's affairs.</p></content></level></subsection><subsection eId="section-37-11"><num><ins class="first" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea"><noteRef uk:name="commentary" href="#key-45a8511cbefa8be492ef5c3fe2250cea" class="commentary"/>(11)</ins></num><intro><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">For the purposes of subsection (10)—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in the Banking Act 2009 (see section 136 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in that Act (see section 90 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-building-society-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” and “</ins><term refersTo="#term-building-society-special-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society special administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-investment-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">investment bank insolvency</ins></term><ins class="last" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” means any procedure established by regulations under section 233 of the Banking Act 2009.</ins></p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-1"><num>(1)</num><content><p>This section has effect for the interpretation of section 36.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-2"><num>(2)</num><intro><p>“<term refersTo="#term-financial-institution" eId="term-financial-institution">Financial institution</term>” means a <abbr class="acronym" title="United Kingdom">UK</abbr> institution which—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>meets condition A or B, and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>is not an insurer or a credit union.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-2-a"><num>(a)</num><content><p>meets condition A or B, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-2-b"><num>(b)</num><content><p>is not an insurer or a credit union.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-3"><num>(3)</num><content><p>Condition A is that it has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-4"><num>(4)</num><intro><p>Condition B is that—</p></intro><level class="para1" eId="section-37-4-a"><num>(a)</num><content><p>it is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level><level class="para1" eId="section-37-4-b"><num>(b)</num><content><p>it has permission under Part 4A of that Act to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1" eId="section-37-4-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-4-a"><num>(a)</num><content><p>it is for the purposes of FSMA 2000 an investment firm (see section 424A of that Act),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-4-b"><num>(b)</num><content><p>it has permission under Part 4A of that Act to carry on the regulated activity of dealing in investments as principal, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-4-c"><num>(c)</num><content><p>when carried on by it, that activity is a PRA-regulated activity.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-5"><num>(5)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="section-37-5-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1" eId="section-37-5-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level><level class="para1" eId="section-37-5-c"><num>(c)</num><content><p>“<term refersTo="#term-credit-union" eId="term-credit-union">credit union</term>” 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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-5-a"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution" eId="term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-5-b"><num>(b)</num><content><p>“<term refersTo="#term-insurer" eId="term-insurer">insurer</term>” 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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-5-c"><num>(c)</num><content><p>“<term refersTo="#term-credit-union" eId="term-credit-union">credit union</term>” 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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-7"><num>(7)</num><content><p>A person is a “<term refersTo="#term-senior-manager" eId="term-senior-manager">senior manager</term>” 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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-37-8"><num><ins class="first" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48"><noteRef uk:name="commentary" href="#key-2ee3df9ece81bb490eb6b43424126b48" class="commentary"/>(8)</ins></num><intro><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">“Senior management function” means—</ins></p></intro><level class="para1" eId="section-37-8-an1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(a)</ins></num><content><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">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;</ins></p></content></level><level class="para1" eId="section-37-8-bn1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-8-a"><num>(a)</num><content><p>by the FCA under subsection <ref href="#d25e4565">(6A)</ref> of section 59 of FSMA 2000 (approval for particular arrangements), or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-8-an1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(a)</ins></num><content><p><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">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;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-8-b"><num>(b)</num><content><p>by the PRA under subsection <ref href="#d25e4585">(6B)</ref> of that section.</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-8-bn1"><num><ins ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2ee3df9ece81bb490eb6b43424126b48-1542650205959" ukl:CommentaryRef="key-2ee3df9ece81bb490eb6b43424126b48">a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-9"><num>(9)</num><intro><p>A financial institution (“F”) is to be regarded as failing where—</p></intro><level class="para1" eId="section-37-9-a"><num>(a)</num><content><p>F enters insolvency,</p></content></level><level class="para1" eId="section-37-9-b"><num>(b)</num><content><p>any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to F, or</p></content></level><level class="para1" eId="section-37-9-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-9-a"><num>(a)</num><content><p>F enters insolvency,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-9-b"><num>(b)</num><content><p>any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to F, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-9-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-37-10"><num>(10)</num><intro><p>In subsection (9)(a) “<term refersTo="#term-insolvency" eId="term-insolvency">insolvency</term>” includes—</p></intro><level class="para1" eId="section-37-10-a"><num>(a)</num><content><p>bankruptcy,</p></content></level><level class="para1" eId="section-37-10-b"><num>(b)</num><content><p>liquidation,</p></content></level><level class="para1" eId="section-37-10-c"><num>(c)</num><content><p>bank insolvency,</p></content></level><level class="para1" eId="section-37-10-ca"><num><ins class="first" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c"><noteRef uk:name="commentary" href="#key-72c0a4d83e63cf6688c5f21408bab04c" class="commentary"/>(ca)</ins></num><content><p><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">building society insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-cb"><num><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">(cb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">investment bank insolvency,</ins></p></content></level><level class="para1" eId="section-37-10-d"><num>(d)</num><content><p>administration,</p></content></level><level class="para1" eId="section-37-10-e"><num>(e)</num><content><p>bank administration,</p></content></level><level class="para1" eId="section-37-10-ea"><num><ins class="first" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388"><noteRef uk:name="commentary" href="#key-4bf28f26aed2683441a8bffa1a52d388" class="commentary"/>(ea)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388">building society special administration,</ins></p></content></level><level class="para1" eId="section-37-10-f"><num>(f)</num><content><p>receivership,</p></content></level><level class="para1" eId="section-37-10-g"><num>(g)</num><content><p>a composition between F and F's creditors, and</p></content></level><level class="para1" eId="section-37-10-h"><num>(h)</num><content><p>a scheme of arrangement of F's affairs.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-a"><num>(a)</num><content><p>bankruptcy,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-b"><num>(b)</num><content><p>liquidation,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-c"><num>(c)</num><content><p>bank insolvency,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-d"><num>(d)</num><content><p>administration,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-37-10-ca"><num><ins class="first" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c"><noteRef uk:name="commentary" href="#key-72c0a4d83e63cf6688c5f21408bab04c" class="commentary"/>(ca)</ins></num><content><p><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">building society insolvency,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-e"><num>(e)</num><content><p>bank administration,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-37-10-cb"><num><ins ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">(cb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-72c0a4d83e63cf6688c5f21408bab04c-1498413529827" ukl:CommentaryRef="key-72c0a4d83e63cf6688c5f21408bab04c">investment bank insolvency,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-f"><num>(f)</num><content><p>receivership,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-g"><num>(g)</num><content><p>a composition between F and F's creditors, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-37-10-h"><num>(h)</num><content><p>a scheme of arrangement of F's affairs.</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-37-10-ea"><num><ins class="first" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388"><noteRef uk:name="commentary" href="#key-4bf28f26aed2683441a8bffa1a52d388" class="commentary"/>(ea)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4bf28f26aed2683441a8bffa1a52d388-1498413566528" ukl:CommentaryRef="key-4bf28f26aed2683441a8bffa1a52d388">building society special administration,</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-37-11"><num><ins class="first" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea"><noteRef uk:name="commentary" href="#key-45a8511cbefa8be492ef5c3fe2250cea" class="commentary"/>(11)</ins></num><intro><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">For the purposes of subsection (10)—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in the Banking Act 2009 (see section 136 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">bank insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” has the same meaning as in that Act (see section 90 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-building-society-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” and “</ins><term refersTo="#term-building-society-special-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society special administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act);</ins></p></content></hcontainer><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-investment-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">investment bank insolvency</ins></term><ins class="last" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” means any procedure established by regulations under section 233 of the Banking Act 2009.</ins></p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-building-society-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society insolvency</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” and “</ins><term refersTo="#term-building-society-special-administration"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">building society special administration</ins></term><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act);</ins></p></content></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38"><num>38</num><heading>Institution of proceedings</heading><subsection eId="section-38-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-an-offence" eId="term-an-offence">an offence</term>” means an offence under section 36.</p></content></subsection><subsection eId="section-38-2"><num>(2)</num><intro><p>Proceedings for an offence may be instituted in England and Wales only—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions.</p></content></level></subsection><subsection eId="section-38-3"><num>(3)</num><intro><p>Proceedings for an offence may be instituted in Northern Ireland only—</p></intro><level class="para1" eId="section-38-3-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-3-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions for Northern Ireland.</p></content></level></subsection><subsection eId="section-38-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-38-5"><num>(5)</num><intro><p>Conditions or restrictions may be imposed under subsection (4) in relation to—</p></intro><level class="para1" eId="section-38-5-a"><num>(a)</num><content><p>proceedings generally, or</p></content></level><level class="para1" eId="section-38-5-b"><num>(b)</num><content><p>such proceedings, or categories of proceedings, as the Treasury may direct.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-an-offence" eId="term-an-offence">an offence</term>” means an offence under section 36.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-2"><num>(2)</num><intro><p>Proceedings for an offence may be instituted in England and Wales only—</p></intro><level class="para1" eId="section-38-2-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-2-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-3"><num>(3)</num><intro><p>Proceedings for an offence may be instituted in Northern Ireland only—</p></intro><level class="para1" eId="section-38-3-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level><level class="para1" eId="section-38-3-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions for Northern Ireland.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-a"><num>(a)</num><content><p>by the FCA, the PRA or the Secretary of State, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-b"><num>(b)</num><content><p>by or with the consent of the Director of Public Prosecutions for Northern Ireland.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-5"><num>(5)</num><intro><p>Conditions or restrictions may be imposed under subsection (4) in relation to—</p></intro><level class="para1" eId="section-38-5-a"><num>(a)</num><content><p>proceedings generally, or</p></content></level><level class="para1" eId="section-38-5-b"><num>(b)</num><content><p>such proceedings, or categories of proceedings, as the Treasury may direct.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-5-a"><num>(a)</num><content><p>proceedings generally, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-5-b"><num>(b)</num><content><p>such proceedings, or categories of proceedings, as the Treasury may direct.</p></content></level>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-5"><num><b>PART 5</b></num><heading>Regulation of payment systems</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-overview"><heading><i>Overview</i></heading><section eId="section-39"><num>39</num><heading>Overview</heading><subsection eId="section-39-1"><num>(1)</num><content><p>This Part contains provision for the establishment of a new body (the “Payment Systems Regulator”) to exercise functions in relation to payment systems.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>Section 40 provides for the establishment of the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><p>Sections 41 and 42 contain definitions of “payment system” and related terms.</p></content></subsection><subsection eId="section-39-4"><num>(4)</num><content><p>Sections 43 to 48 make provision about designating a payment system as a regulated payment system.</p></content></subsection><subsection eId="section-39-5"><num>(5)</num><content><p>Sections 49 to 53 contain provision about the general duties of the Payment Systems Regulator under this Part.</p></content></subsection><subsection eId="section-39-6"><num>(6)</num><content><p>Sections 54 to 67 confer various regulatory and competition functions on the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-7"><num>(7)</num><content><p>Sections 68 to 70 contain provision about the making of complaints to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-8"><num>(8)</num><content><p>Sections 71 to 80 contain provision about enforcement and appeals.</p></content></subsection><subsection eId="section-39-9"><num>(9)</num><content><p>Sections 81 to 95 contain information and investigation powers and provision about the disclosure of information.</p></content></subsection><subsection eId="section-39-10"><num>(10)</num><content><p>Sections <ins class="substitution first last" ukl:ChangeId="key-e36ef45e3c9db0e11597d8f5e96ac0fb-1544460530724" ukl:CommentaryRef="key-e36ef45e3c9db0e11597d8f5e96ac0fb"><noteRef uk:name="commentary" href="#key-e36ef45e3c9db0e11597d8f5e96ac0fb" class="commentary"/>96 to 97D</ins> contain supplementary powers.</p></content></subsection><subsection eId="section-39-11"><num>(11)</num><content><p>Sections 98 to 102 contain provision about the Payment Systems Regulator's relationship with other regulators.</p></content></subsection><subsection eId="section-39-11A"><num><ins class="first" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294"><noteRef uk:name="commentary" href="#key-d02015fa726bef54a0cf14e800daa294" class="commentary"/>(11A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294">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.</ins></p></content></subsection><subsection eId="section-39-12"><num>(12)</num><content><p>Sections 103 to <ins class="substitution first last" ukl:ChangeId="key-130c651c42a602f22cdc45049a6108f3-1706700881594" ukl:CommentaryRef="key-130c651c42a602f22cdc45049a6108f3"><noteRef uk:name="commentary" href="#key-130c651c42a602f22cdc45049a6108f3" class="commentary"/>107A</ins> contain provision about consultation, accountability and oversight.</p></content></subsection><subsection eId="section-39-13"><num>(13)</num><content><p>Sections 108 to 110 contain miscellaneous and supplemental provision.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-the-payment-systems-regulator"><heading><i>The Payment Systems Regulator</i></heading><section eId="section-40"><num>40</num><heading>The Payment Systems Regulator</heading><subsection eId="section-40-1"><num>(1)</num><content><p>The FCA must establish a body corporate to exercise the functions conferred on the body by or under this Part.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>The body established under subsection (1) is referred to in this Part as the Payment Systems Regulator.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>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).</p></content></subsection><subsection eId="section-40-4"><num>(4)</num><intro><p>In complying with the duty imposed by subsection (3) the FCA may, in particular—</p></intro><level class="para1" eId="section-40-4-a"><num>(a)</num><content><p>provide staff to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-40-4-b"><num>(b)</num><content><p>provide services to the Payment Systems Regulator which the FCA considers would facilitate the exercise of any of those functions.</p></content></level></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>Schedule 4 (which contains further provision about the Payment Systems Regulator) has effect.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-payment-system-etc"><heading><i>
“Payment system” <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><section eId="section-41"><num>41</num><heading>Meaning of “payment system”</heading><subsection eId="section-41-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” 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.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><intro><p>But “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” does not include—</p></intro><level class="para1" eId="section-41-2-a"><num>(a)</num><content><p>any arrangements for the physical movement of cash;</p></content></level><level class="para1" eId="section-41-2-b"><num>(b)</num><content><p>a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;</p></content></level><level class="para1" eId="section-41-2-c"><num>(c)</num><content><p>a securities settlement system operated by a <ins class="substitution first last" ukl:ChangeId="key-64986c54a811932a16e7fddfaa7cd614-1518179924902" ukl:CommentaryRef="key-64986c54a811932a16e7fddfaa7cd614"><noteRef uk:name="commentary" href="#key-64986c54a811932a16e7fddfaa7cd614" class="commentary"/>recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-d"><num>(d)</num><content><p>a system operated by a recognised clearing house <ins class="first last" ukl:ChangeId="key-fa4f1cc985728ce993080dfc93d09d41-1560270400023" ukl:CommentaryRef="key-fa4f1cc985728ce993080dfc93d09d41"><noteRef uk:name="commentary" href="#key-fa4f1cc985728ce993080dfc93d09d41" class="commentary"/>or a recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-e"><num>(e)</num><content><p>any other system whose primary purpose is not that of enabling persons to transfer funds.</p></content></level></subsection><subsection eId="section-41-2A"><num><ins class="first" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2"><noteRef uk:name="commentary" href="#key-961d895e5b8eae5c1b275f8062be28d2" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this Part—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-funds"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">funds</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes digital settlement assets (except in section 41(2)(e));</ins></p></content></hcontainer><hcontainer name="definition"><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” means a digital representation of value or rights, whether or not cryptographically secured, that—</ins></p></intro><level class="para1"><num>(a)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be used for the settlement of payment obligations,</ins></p></content></level><level class="para1"><num>(b)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be transferred, stored or traded electronically, and</ins></p></content></level><level class="para1"><num>(c)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">uses technology supporting the recording or storage of data (which may include distributed ledger technology).</ins></p></content></level></hcontainer></subsection><subsection eId="section-41-2B"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2B)</ins></num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this section, “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes a right to, or interest in, a digital settlement asset.</ins></p></content></subsection><subsection eId="section-41-2C"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">The Treasury may by regulations amend the definition of “digital settlement asset” in subsection (2A).</ins></p></content></subsection><subsection eId="section-41-3"><num>(3)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-c702e3b1ca148d9f0b30890127e8fe57-1518179971810" ukl:CommentaryRef="key-c702e3b1ca148d9f0b30890127e8fe57"><noteRef uk:name="commentary" href="#key-c702e3b1ca148d9f0b30890127e8fe57" class="commentary"/>“recognised CSD” has the meaning given by section 285(1) of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-clearing-house" eId="term-recognised-clearing-house">recognised clearing house</term>” has the meaning given by section 285(1) of FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer></subsection><subsection eId="section-41-4"><num>(4)</num><intro><p>The Treasury may by order amend this section so as to—</p></intro><level class="para1" eId="section-41-4-a"><num>(a)</num><content><p>add descriptions of systems or arrangements that are not to be regarded as payment systems, or</p></content></level><level class="para1" eId="section-41-4-b"><num>(b)</num><content><p>vary or remove any such description.</p></content></level></subsection></section><section eId="section-42"><num>42</num><heading>Participants in payment systems <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-42-1"><num>(1)</num><content><p>This section applies for the purposes of this Part.</p></content></subsection><subsection eId="section-42-2"><num>(2)</num><intro><p>The following persons are “participants” in a payment system—</p></intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content><p>the operator of the payment system (see subsection (3));</p></content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content><p>any infrastructure provider (see subsection (4));</p></content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content><p>any payment service provider (see <ins class="substitution first last" ukl:ChangeId="key-e66758a653407b928c4b84cbf7c2c31e-1695297510804" ukl:CommentaryRef="key-e66758a653407b928c4b84cbf7c2c31e"><noteRef uk:name="commentary" href="#key-e66758a653407b928c4b84cbf7c2c31e" class="commentary"/>subsections (5) and (5A)</ins>).</p></content></level><wrapUp><p>(But see also subsection (8).)</p></wrapUp></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>“<term refersTo="#term-operator" eId="term-operator">Operator</term>”, 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.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">Infrastructure provider</term>”, 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.</p></content></subsection><subsection eId="section-42-5"><num>(5)</num><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">Payment service provider</term>”, 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.</p></content></subsection><subsection eId="section-42-5A"><num><ins class="first" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca"><noteRef uk:name="commentary" href="#key-1a64fdd54b07a57e48a81b46d3051bca" class="commentary"/>(5A)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">“</ins><term refersTo="#term-payment-service-provider"><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">Payment service provider</ins></term><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">” in relation to a payment system that includes arrangements using digital settlement assets means—</ins></p></intro><level class="para1" eId="section-42-5A-a"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(a)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person responsible for managing the issuance and redemption of digital settlement assets;</ins></p></content></level><level class="para1" eId="section-42-5A-b"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(b)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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);</ins></p></content></level><level class="para1" eId="section-42-5A-c"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(c)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a digital settlement asset exchange provider;</ins></p></content></level><level class="para1" eId="section-42-5A-d"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(d)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person who—</ins></p></intro><level class="para2" eId="section-42-5A-d-i"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(i)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">sets rules, standards, or conditions of access or participation in relation to the system, or</ins></p></content></level><level class="para2" eId="section-42-5A-d-ii"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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.</ins></p></content></level></level></subsection><subsection eId="section-42-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-42-7"><num>(7)</num><intro><p>Any reference to participation in a payment system is to be read in accordance with this section, and in particular—</p></intro><level class="para1" eId="section-42-7-a"><num>(a)</num><content><p>in the case of an operator of a payment system, includes a reference to developing the system, and</p></content></level><level class="para1" eId="section-42-7-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-42-8"><num>(8)</num><content><p>The Bank of England is not to be regarded as a participant of any kind in any payment system.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-designation-as-a-regulated-payment-system"><heading><i>Designation as a regulated payment system</i></heading><section eId="section-43"><num>43</num><heading>Designation orders</heading><subsection eId="section-43-1"><num>(1)</num><content><p>The Treasury may by order (a “designation order”) designate a payment system as a regulated payment system for the purposes of this Part.</p></content></subsection><subsection eId="section-43-2"><num>(2)</num><content><p>A designation order must specify in as much detail as is reasonably practicable the arrangements that constitute the payment system.</p></content></subsection></section><section eId="section-44"><num>44</num><heading>Designation criteria</heading><subsection eId="section-44-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury must have regard to—</p></intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content><p>the number and value of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content><p>the nature of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content><p>whether those transactions or their equivalent could be handled by other payment systems, and</p></content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content><p>the relationship between the system and other payment systems.</p></content></level></subsection></section><section eId="section-45"><num>45</num><heading>Procedure</heading><subsection eId="section-45-1"><num>(1)</num><intro><p>Before making a designation order in respect of a payment system the Treasury must—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the system is a recognised <noteRef href="#key-a3066f3a6d612c1cb422db5e519abe7e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>notify the operator of the system, and</p></content></level><level class="para1" eId="section-45-1-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury may rely on information provided by—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the FCA,</p></content></level><level class="para1" eId="section-45-2-c"><num>(c)</num><content><p>the PRA, or</p></content></level><level class="para1" eId="section-45-2-d"><num>(d)</num><content><p>the Payment Systems Regulator.</p></content></level></subsection></section><section eId="section-46"><num>46</num><heading>Amendment of designation order</heading><subsection eId="section-46-1"><num>(1)</num><content><p>The Treasury may amend a designation order.</p></content></subsection><subsection eId="section-46-2"><num>(2)</num><intro><p>Before amending a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f5d98472fe1a06ba9deaeec749d7ec68" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-46-3"><num>(3)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the amendment of its designation order.</p></content></subsection></section><section eId="section-47"><num>47</num><heading>Revocation of designation orders</heading><subsection eId="section-47-1"><num>(1)</num><content><p>The Treasury may revoke a designation order.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-47-3"><num>(3)</num><intro><p>Before revoking a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f6ed6f131c2d5b1ad748510669b61678" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-47-3-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-47-4"><num>(4)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the revocation of its designation order.</p></content></subsection></section><section eId="section-48"><num>48</num><heading>Publication</heading><subsection eId="section-48-1"><num>(1)</num><content><p>The Treasury must publish any designation order.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><content><p>If the Treasury amends a designation order, the Treasury must publish the amended order.</p></content></subsection><subsection eId="section-48-3"><num>(3)</num><content><p>The Treasury must publish any revocation of a designation order.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-general-duties-of-regulator"><heading><i>General duties of Regulator</i></heading><section eId="section-49"><num>49</num><heading>Regulator's general duties in relation to payment systems</heading><subsection eId="section-49-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-49-2"><num>(2)</num><intro><p>The payment systems objectives of the Payment Systems Regulator are—</p></intro><level class="para1" eId="section-49-2-a"><num>(a)</num><content><p>the competition objective (see section 50),</p></content></level><level class="para1" eId="section-49-2-b"><num>(b)</num><content><p>the innovation objective (see section 51), and</p></content></level><level class="para1" eId="section-49-2-c"><num>(c)</num><content><p>the service-user objective (see section 52).</p></content></level></subsection><subsection eId="section-49-3"><num>(3)</num><intro><p>In discharging its general functions relating to payment systems the Payment Systems Regulator must have regard to—</p></intro><level class="para1" eId="section-49-3-a"><num>(a)</num><content><p>the importance of maintaining the stability of, and confidence in, the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-49-3-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-49-3-c"><num>(c)</num><content><p>the regulatory principles in section 53.</p></content></level></subsection><subsection eId="section-49-4"><num>(4)</num><intro><p>The general functions of the Payment Systems Regulator relating to payment systems are—</p></intro><level class="para1" eId="section-49-4-a"><num>(a)</num><content><p>its function of giving general directions under section 54 (considered as a whole),</p></content></level><level class="para1" eId="section-49-4-b"><num>(b)</num><content><p>its functions in relation to the giving of general guidance under section 96 (considered as a whole), and</p></content></level><level class="para1" eId="section-49-4-c"><num>(c)</num><content><p>its function of determining the general policy and principles by reference to which it performs particular functions.</p></content></level></subsection></section><section eId="section-50"><num>50</num><heading>The competition objective</heading><subsection eId="section-50-1"><num>(1)</num><intro><p>The competition objective is to promote effective competition in—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems,</p></content></level><wrapUp><p>in the interests of those who use, or are likely to use, services provided by payment systems.</p></wrapUp></subsection><subsection eId="section-50-2"><num>(2)</num><intro><p>The reference in subsection (1) to promoting effective competition includes, in particular, promoting effective competition—</p></intro><level class="para1" eId="section-50-2-a"><num>(a)</num><content><p>between different operators of payment systems,</p></content></level><level class="para1" eId="section-50-2-b"><num>(b)</num><content><p>between different payment service providers, and</p></content></level><level class="para1" eId="section-50-2-c"><num>(c)</num><content><p>between different infrastructure providers.</p></content></level></subsection><subsection eId="section-50-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-50-3-a"><num>(a)</num><content><p>the needs of different persons who use, or may use, services provided by payment systems;</p></content></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content><p>the ease with which persons who may wish to use those services can do so;</p></content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><content><p>the ease with which persons who obtain those services can change the person from whom they obtain them;</p></content></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content><p>the needs of different payment service providers or persons who wish to become payment service providers;</p></content></level><level class="para1" eId="section-50-3-e"><num>(e)</num><content><p>the ease with which payment service providers, or persons who wish to become payment service providers, can provide services using payment systems;</p></content></level><level class="para1" eId="section-50-3-f"><num>(f)</num><content><p>the ease with which payment service providers can change the payment system they use to provide their services;</p></content></level><level class="para1" eId="section-50-3-g"><num>(g)</num><content><p>the needs of different infrastructure providers or persons who wish to become infrastructure providers;</p></content></level><level class="para1" eId="section-50-3-h"><num>(h)</num><content><p>the ease with which infrastructure providers, or persons who wish to become infrastructure providers, can provide infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-i"><num>(i)</num><content><p>the needs of different operators of payment systems;</p></content></level><level class="para1" eId="section-50-3-j"><num>(j)</num><content><p>the ease with which operators of payment systems can change the infrastructure used to operate the payment systems;</p></content></level><level class="para1" eId="section-50-3-k"><num>(k)</num><content><p>the level and structure of fees, charges or other costs associated with participation in payment systems;</p></content></level><level class="para1" eId="section-50-3-l"><num>(l)</num><content><p>the ease with which new entrants can enter the market;</p></content></level><level class="para1" eId="section-50-3-m"><num>(m)</num><content><p>how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-n"><num>(n)</num><content><p>how far competition is encouraging innovation.</p></content></level></subsection></section><section eId="section-51"><num>51</num><heading>The innovation objective</heading><subsection eId="section-51-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-51-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-52"><num>52</num><heading>The service-user objective</heading><content><p>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.</p></content></section><section eId="section-53"><num>53</num><heading>Regulatory principles</heading><intro><p>The regulatory principles referred to in section 49(3)(c) are as follows—</p></intro><level class="para1" eId="section-53-a"><num>(a)</num><content><p>the need to use the resources of the Payment Systems Regulator in the most efficient and economic way;</p></content></level><level class="para1" eId="section-53-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-c"><num>(c)</num><content><p>the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term <ins class="first last" ukl:ChangeId="key-ca69ed4522b046f2fdf9c67252921cdc-1695297696170" ukl:CommentaryRef="key-ca69ed4522b046f2fdf9c67252921cdc"><noteRef uk:name="commentary" href="#key-ca69ed4522b046f2fdf9c67252921cdc" class="commentary"/>, 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;</ins> </p></content></level><level class="para1" eId="section-53-d"><num>(d)</num><content><p>the general principle that those who use services provided by payment systems should take responsibility for their decisions;</p></content></level><level class="para1" eId="section-53-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-f"><num>(f)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-g"><num>(g)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-h"><num>(h)</num><content><p>the principle that the Payment Systems Regulator should exercise its functions as transparently as possible.</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-regulatory-and-competition-functions"><heading><i>Regulatory and competition functions</i></heading><section eId="section-54"><num>54</num><heading>Directions</heading><subsection eId="section-54-1"><num>(1)</num><content><p>The Payment Systems Regulator may give directions in writing to participants in regulated payment systems.</p></content></subsection><subsection eId="section-54-2"><num>(2)</num><intro><p>A direction given to a participant in a regulated payment system may—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p>require or prohibit the taking of specified action in relation to the system;</p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p>set standards to be met in relation to the system.</p></content></level></subsection><subsection eId="section-54-3"><num>(3)</num><intro><p>A direction under this section may apply—</p></intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content><p>generally,</p></content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><intro><p>in relation to—</p></intro><level class="para2" eId="section-54-3-b-i"><num>(i)</num><content><p>all operators, or every operator of a regulated payment system of a specified description,</p></content></level><level class="para2" eId="section-54-3-b-ii"><num>(ii)</num><content><p>all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or</p></content></level><level class="para2" eId="section-54-3-b-iii"><num>(iii)</num><content><p>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</p></content></level></level><level class="para1" eId="section-54-3-c"><num>(c)</num><content><p>in relation to specified persons or persons of a specified description.</p></content></level></subsection><subsection eId="section-54-4"><num>(4)</num><content><p>The Payment Systems Regulator must publish any direction given under this section that applies as mentioned in subsection (3)(a) or (b).</p></content></subsection><subsection eId="section-54-5"><num>(5)</num><content><p>A direction under this section that applies as mentioned in subsection (3)(a) or (b) is referred to in this Part as a “<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>”.</p></content></subsection></section><section eId="section-55"><num>55</num><heading>System rules</heading><subsection eId="section-55-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require the operator of a regulated payment system—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>to establish rules for the operation of the system;</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>to change the rules in a specified way or so as to achieve a specified purpose;</p></content></level><level class="para1" eId="section-55-1-c"><num>(c)</num><content><p>to notify the Payment Systems Regulator of any proposed change to the rules;</p></content></level><level class="para1" eId="section-55-1-d"><num>(d)</num><content><p>not to change the rules without the approval of the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><content><p>A requirement under subsection (1)(c) or (d) may be general or specific.</p></content></subsection><subsection eId="section-55-3"><num>(3)</num><intro><p>A requirement under this section that is imposed on—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>all operators of regulated payment systems, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>every operator of a regulated payment system of a specified description,</p></content></level><wrapUp><p>is referred to in this Part as a “<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>”.</p></wrapUp></subsection></section><section eId="section-56"><num>56</num><heading>Power to require granting of access to payment systems</heading><subsection eId="section-56-1"><num>(1)</num><content><p>This section applies where a person (“<term refersTo="#term-the-applicant" eId="term-the-applicant">the applicant</term>”) applies for an order under this section.</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><intro><p>An order under this section may provide for the applicant to become a payment service provider in relation to a payment system—</p></intro><level class="para1" eId="section-56-4-a"><num>(a)</num><content><p>for a period specified in the order;</p></content></level><level class="para1" eId="section-56-4-b"><num>(b)</num><content><p>on terms and conditions specified in the order.</p></content></level></subsection></section><section eId="section-57"><num>57</num><heading>Variation of agreements relating to payment systems</heading><subsection eId="section-57-1"><num>(1)</num><intro><p>This section applies to the following agreements—</p></intro><level class="para1" eId="section-57-1-a"><num>(a)</num><content><p>any agreement made between the operator of a regulated payment system and a payment service provider;</p></content></level><level class="para1" eId="section-57-1-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-57-1-c"><num>(c)</num><intro><p>any agreement concerning fees or charges payable in connection with—</p></intro><level class="para2" eId="section-57-1-c-i"><num>(i)</num><content><p>participation in a regulated payment system, or</p></content></level><level class="para2" eId="section-57-1-c-ii"><num>(ii)</num><content><p>the use of services provided by a regulated payment system.</p></content></level></level></subsection><subsection eId="section-57-2"><num>(2)</num><intro><p>The Payment Systems Regulator may, on the application of a party to an agreement to which this section applies, vary the agreement by—</p></intro><level class="para1" eId="section-57-2-a"><num>(a)</num><content><p>varying any of the fees or charges payable under the agreement, or</p></content></level><level class="para1" eId="section-57-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-57-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-57-4"><num>(4)</num><content><p>The power under this section to vary any fee or charge includes power to specify a maximum fee or charge.</p></content></subsection><subsection eId="section-57-5"><num>(5)</num><content><p>If the Payment Systems Regulator varies an agreement under this section, the agreement has effect subject to the variation.</p></content></subsection></section><section eId="section-58"><num>58</num><heading>Power to require disposal of interest in payment system</heading><subsection eId="section-58-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require a person who has an interest in <ins class="substitution first" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28"><noteRef uk:name="commentary" href="#key-617f3ad309eb83e70194ce3f8b7bdc28" class="commentary"/>— </ins></p></intro><level class="para1" eId="section-58-1-a"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">the operator of a regulated payment system, or</ins></p></content></level><level class="para1" eId="section-58-1-b"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">an infrastructure provider in relation to such a system,</ins></p></content></level><wrapUp><p><ins class="substitution last" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">to dispose of all or part of that interest.
</ins></p></wrapUp></subsection><subsection eId="section-58-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p>the market for payment systems, or</p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p>a market for services provided by payment systems.</p></content></level></subsection><subsection eId="section-58-2A"><num><ins class="first" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce"><noteRef uk:name="commentary" href="#key-81c12b8a4835eef3e72b4b437be2a4ce" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">The reference in subsection (2) to a restriction or distortion of competition includes, in particular, a restriction or distortion of competition—</ins></p></intro><level class="para1" eId="section-58-2A-a"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(a)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different operators of payment systems,</ins></p></content></level><level class="para1" eId="section-58-2A-b"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(b)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different payment services providers, or</ins></p></content></level><level class="para1" eId="section-58-2A-c"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different infrastructure providers.</ins></p></content></level></subsection><subsection eId="section-58-3"><num>(3)</num><content><p>The Payment Systems Regulator may not exercise the power conferred by subsection (1) without the consent of the Treasury.</p></content></subsection><subsection eId="section-58-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>the Payment Systems Regulator must notify the relevant competition authorities (see subsection (5)), and</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-58-5"><num>(5)</num><intro><p>The relevant competition authorities are—</p></intro><level class="para1" eId="section-58-5-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="section-58-5-b"><num>(b)</num><content><p>the Competition and Markets Authority, and</p></content></level><level class="para1" eId="section-58-5-c"><num>(c)</num><content><p>the FCA.</p></content></level></subsection></section><section eId="section-59"><num>59</num><heading>The Regulator's functions under Part 4 of the Enterprise Act 2002</heading><subsection eId="section-59-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-59-2"><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>relate to participation in payment systems.</p></content></level></subsection><subsection eId="section-59-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-f69a4440858f8c994a68b3a742393db0-1736921153246" ukl:CommentaryRef="key-f69a4440858f8c994a68b3a742393db0"><noteRef uk:name="commentary" href="#key-f69a4440858f8c994a68b3a742393db0" class="commentary"/>section 167C (statement of policy in relation to functions under sections 167 and 167A);</ins> </p></item><item><p>section 171 (duty to publish guidance).</p></item><item><p> <ins class="first last" ukl:ChangeId="key-4e0a2e3a49ec802d3b119126747cf106-1736921190326" ukl:CommentaryRef="key-4e0a2e3a49ec802d3b119126747cf106"><noteRef uk:name="commentary" href="#key-4e0a2e3a49ec802d3b119126747cf106" class="commentary"/>section 174E (statement of policy on penalties).</ins> </p></item></blockList></content></subsection><subsection eId="section-59-4"><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 64 of this Act, and</p></content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-59-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>in relation to section 166 <ins class="substitution first last" ukl:ChangeId="key-dddb512fd05b9bd5d8bde53be18d35d6-1736921239909" ukl:CommentaryRef="key-dddb512fd05b9bd5d8bde53be18d35d6"><noteRef uk:name="commentary" href="#key-dddb512fd05b9bd5d8bde53be18d35d6" class="commentary"/>, 167C, 171 or 174E</ins> of that Act, or</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection eId="section-59-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-59-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-59-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-59-7"><num><ins class="first" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a"><noteRef uk:name="commentary" href="#key-801017c5ed06026b478a4e0822a8574a" class="commentary"/>(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a">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.</ins></p></content></subsection></section><section eId="section-60"><num>60</num><heading>Restrictions on exercise of functions under Part 4 of the Enterprise Act 2002</heading><subsection eId="section-60-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-60-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-60-3"><num>(3)</num><content><p>In subsections (1) and (2) “<term refersTo="#term-the-concurrent-functions" eId="term-the-concurrent-functions">the concurrent functions</term>” means the functions which by virtue of section 59 are concurrent functions of the Payment Systems Regulator and the CMA.</p></content></subsection><subsection eId="section-60-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-60-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-60-6"><num>(6)</num><intro><p>In subsections (4) and (5) “the concurrent functions”—</p></intro><level class="para1" eId="section-60-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-60-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-60-7"><num>(7)</num><content><p>In this section “<term refersTo="#term-the-cma" eId="term-the-cma">the CMA</term>” means the Competition and Markets Authority.</p></content></subsection></section><section eId="section-61"><num>61</num><heading>The Regulator's functions under the Competition Act 1998</heading><subsection eId="section-61-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-61-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act, <ins class="first last" ukl:ChangeId="key-40b9be297d712643e4883f4366cbd629-1630936724419" ukl:CommentaryRef="key-40b9be297d712643e4883f4366cbd629"><noteRef uk:name="commentary" href="#key-40b9be297d712643e4883f4366cbd629" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-61-2-c"><num><ins class="substitution first" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346"><noteRef uk:name="commentary" href="#key-b2d65fc2ffa35e012df70989ff2f5346" class="commentary"/>(c)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346">transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act).</ins></p></content></level></subsection><subsection eId="section-61-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-5be3e026bd81c901aeb4a192059b43c2-1736921421936" ukl:CommentaryRef="key-5be3e026bd81c901aeb4a192059b43c2"><noteRef uk:name="commentary" href="#key-5be3e026bd81c901aeb4a192059b43c2" class="commentary"/>section 35C (statement of policy in relation to functions under sections 31E, 34 and 35A);</ins> </p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection eId="section-61-4"><num>(4)</num><content><p>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 <ins class="first last" ukl:ChangeId="key-b346206eeee962e1b24b7850aacfdd3a-1736921321003" ukl:CommentaryRef="key-b346206eeee962e1b24b7850aacfdd3a"><noteRef uk:name="commentary" href="#key-b346206eeee962e1b24b7850aacfdd3a" class="commentary"/>(including references in provisions of the Enterprise Act 2002 applied by that Part)</ins> are to be read as including references to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-61-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-61-5-a"><num>(a)</num><content><p>in relation to sections 31D(1) to (6) <ins class="first last" ukl:ChangeId="key-9f671f3855fa85ea4ae9600796391a90-1736921321002" ukl:CommentaryRef="key-9f671f3855fa85ea4ae9600796391a90"><noteRef uk:name="commentary" href="#key-9f671f3855fa85ea4ae9600796391a90" class="commentary"/>, 35C</ins>, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1" eId="section-61-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection eId="section-61-6"><num><ins class="first" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681"><noteRef uk:name="commentary" href="#key-b99e804959b58247eadaa96bb8768681" class="commentary"/>(6)</ins></num><intro><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">In making any decision, or otherwise taking action, for the purposes of any of its functions that—</ins></p></intro><level class="para1" eId="section-61-6-a"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(a)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">by virtue of this section, are functions exercisable concurrently with the CMA, and</ins></p></content></level><level class="para1" eId="section-61-6-b"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(b)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">the Payment Systems Regulator must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.</ins></p></wrapUp></subsection></section><section eId="section-62"><num>62</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection eId="section-62-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><intro><p>The powers referred to in subsection (1) are—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>its power to give a direction under section 54 (apart from the power to give a general direction);</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>its power to impose a requirement under section 55 (apart from the power to impose a generally-imposed requirement);</p></content></level><level class="para1" eId="section-62-2-c"><num>(c)</num><content><p>its powers under sections 56, 57 and 58.</p></content></level></subsection><subsection eId="section-62-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-63"><num>63</num><heading>Provision of information and assistance to a CMA group</heading><subsection eId="section-63-1"><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the Payment Systems Regulator must give the CMA group—</p></intro><level class="para1" eId="section-63-1-a"><num>(a)</num><content><p>any relevant information which it has in its possession, and</p></content></level><level class="para1" eId="section-63-1-b"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection eId="section-63-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-63-3"><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information" eId="term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><intro><p>which—</p></intro><level class="para2" eId="section-63-3-b-i"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2" eId="section-63-3-b-ii"><num>(ii)</num><content><p>in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection eId="section-63-4"><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection eId="section-63-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group" eId="term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section><section eId="section-64"><num>64</num><heading>Function of keeping markets under review</heading><subsection eId="section-64-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-64-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-64-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems.</p></content></level></subsection><subsection eId="section-64-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-65"><num>65</num><heading>Exclusion of general duties</heading><subsection eId="section-65-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-65-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-66"><num>66</num><heading>Concurrent competition powers: supplementary provision</heading><subsection eId="section-66-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-66-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-67"><num>67</num><heading>Amendments relating to Regulator's competition powers</heading><subsection eId="section-67-1"><num>(1)</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-2"><num>(2)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-3"><num>(3)</num><intro><p>In section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references)—</p></intro><level class="para1" eId="section-67-3-a"><num>(a)</num><content><p><mod>in subsection (7), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>in relation to the Payment Systems Regulator, section 59 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-67-3-b"><num>(b)</num><content><p><mod>in subsection (8), for “or Monitor” substitute <quotedText>“
, Monitor or the Payment Systems Regulator.
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-67-3-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-67-4"><num>(4)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-5"><num>(5)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-complaints"><heading><i>Complaints</i></heading><section eId="section-68"><num>68</num><heading>Complaints by representative bodies</heading><subsection eId="section-68-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-68-2"><num>(2)</num><content><p>“<term refersTo="#term-designated-representative-body" eId="term-designated-representative-body">Designated representative body</term>” means a body designated by the Treasury by order.</p></content></subsection><subsection eId="section-68-3"><num>(3)</num><intro><p>The Treasury—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>may designate a body only if it appears to them to represent the interests of service-users of any description, and</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-68-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>the structure of the market concerned or any aspect of that structure,</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-68-4-c"><num>(c)</num><content><p>any conduct relating to the market concerned of customers of any person who supplies or acquires services,</p></content></level><wrapUp><p>and “<term refersTo="#term-conduct" eId="term-conduct">conduct</term>” includes any failure to act (whether or not intentional) and any other unintentional conduct.</p></wrapUp></subsection><subsection eId="section-68-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-market-in-the-united-kingdom" eId="term-market-in-the-united-kingdom">market in the United Kingdom</term>” includes a market which operates only in a part of the United Kingdom.</p></content></subsection><subsection eId="section-68-6"><num>(6)</num><content><p><mod>In section 234C of FSMA 2000 (complaints by consumer bodies), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>But a complaint may not be made to the FCA under this section if it is a complaint which could be made to the Payment Systems Regulator by a designated representative body under section 68 of the Financial Services (Banking Reform) Act 2013 (complaints by representative bodies).</p><p>“<term refersTo="#term-designated-representative-body">Designated representative body</term>” and “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” have the same meaning in this subsection as they have in that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-69"><num>69</num><heading>Response by Regulator</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>whether it has decided to take any action, or to take no action, and</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>if it has decided to take action, what action it proposes to take.</p></content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro><p>The response must—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>include a copy of the complaint, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>state the Payment Systems Regulator's reasons for its proposals.</p></content></level></subsection><subsection eId="section-69-3"><num>(3)</num><content><p>The Treasury may by order amend subsection (1) by substituting any period for the period for the time being specified there.</p></content></subsection></section><section eId="section-70"><num>70</num><heading>Complaints: guidance</heading><subsection eId="section-70-1"><num>(1)</num><intro><p>The guidance given by the Payment Systems Regulator under section 96—</p></intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content><p>must include guidance about the presentation of a reasoned case for a complaint under section 68, and</p></content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content><p>may include guidance about any other matters that appear to the Payment Systems Regulator to be appropriate for the purposes of that section.</p></content></level></subsection><subsection eId="section-70-2"><num>(2)</num><content><p>Guidance given in accordance with subsection (1) is to be treated as general guidance for the purposes of this Part.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-enforcement-and-appeals"><heading><i>Enforcement and appeals</i></heading><section eId="section-71"><num>71</num><heading>Meaning of “compliance failure”</heading><intro><p>In this Part “<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” means a failure by a participant in a regulated payment system to—</p></intro><level class="para1" eId="section-71-a"><num>(a)</num><content><p>comply with a direction given under section 54, <noteRef href="#key-bc95589ba418d3d3fa06bf085aaade73" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-71-b"><num>(b)</num><content><p>comply with a requirement imposed under section 55 or 56 <ins class="first" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705"><noteRef uk:name="commentary" href="#key-406bea63a27034c8e67946083076f705" class="commentary"/>; or</ins></p></content></level><level class="para1" eId="section-71-c"><num><ins ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">comply with rules made by the Regulator under paragraph 9A of Schedule 4.</ins></p></content></level></section><section eId="section-72"><num>72</num><heading>Publication of compliance failures <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-72-1"><num>(1)</num><content><p>The Payment Systems Regulator may publish details of a compliance failure by a participant in a regulated payment system.</p></content></subsection><subsection eId="section-72-2"><num>(2)</num><content><p>The Payment Systems Regulator may publish details of a sanction imposed under section 73.</p></content></subsection></section><section eId="section-73"><num>73</num><heading>Penalties</heading><subsection eId="section-73-1"><num>(1)</num><content><p>The Payment Systems Regulator may require a participant in a regulated payment system to pay a penalty in respect of a compliance failure.</p></content></subsection><subsection eId="section-73-2"><num>(2)</num><intro><p>A penalty—</p></intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content><p>must be paid to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content><p>may be enforced by the Payment Systems Regulator as a debt.</p></content></level></subsection><subsection eId="section-73-3"><num>(3)</num><intro><p>The Payment Systems Regulator must prepare a statement of the principles which it will apply in determining—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p>whether to impose a penalty, and</p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p>the amount of a penalty.</p></content></level></subsection><subsection eId="section-73-4"><num>(4)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p>publish the statement on its website,</p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p>send a copy to the Treasury,</p></content></level><level class="para1" eId="section-73-4-c"><num>(c)</num><content><p>review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and</p></content></level><level class="para1" eId="section-73-4-d"><num>(d)</num><content><p>in applying the statement to a compliance failure, apply the version in force when the compliance failure occurred.</p></content></level></subsection></section><section eId="section-74"><num>74</num><heading>Warning notices</heading><subsection eId="section-74-1"><num>(1)</num><intro><p>Before imposing a sanction on any person the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-74-1-a"><num>(a)</num><content><p>give the person a notice in writing (a “warning notice”),</p></content></level><level class="para1" eId="section-74-1-b"><num>(b)</num><content><p>give the person at least 21 days to make representations,</p></content></level><level class="para1" eId="section-74-1-c"><num>(c)</num><content><p>consider any representations made, and</p></content></level><level class="para1" eId="section-74-1-d"><num>(d)</num><content><p>as soon as is reasonably practicable, give the person a notice in writing stating whether or not it intends to impose the sanction.</p></content></level></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In subsection (1) any reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection></section><section eId="section-75"><num>75</num><heading>Injunctions</heading><subsection eId="section-75-1"><num>(1)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-1-a"><num>(a)</num><content><p>that there is a reasonable likelihood that there will be a compliance failure, or</p></content></level><level class="para1" eId="section-75-1-b"><num>(b)</num><content><p>that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,</p></content></level><wrapUp><p>the court may make an order restraining the conduct constituting the failure.</p></wrapUp></subsection><subsection eId="section-75-2"><num>(2)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-2-a"><num>(a)</num><content><p>that there has been a compliance failure by a participant in a regulated payment system, and</p></content></level><level class="para1" eId="section-75-2-b"><num>(b)</num><content><p>that there are steps which could be taken for remedying the failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-75-3"><num>(3)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-3-a"><num>(a)</num><content><p>that there may have been a compliance failure by a participant in a regulated payment system, or</p></content></level><level class="para1" eId="section-75-3-b"><num>(b)</num><content><p>that a person may have been knowingly concerned in a compliance failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-75-4"><num>(4)</num><intro><p>The jurisdiction conferred by this section is exercisable—</p></intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content><p>in England and Wales and Northern Ireland, by the High Court, and</p></content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content><p>in Scotland, by the Court of Session.</p></content></level></subsection><subsection eId="section-75-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-75-5-a"><num>(a)</num><content><p>references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,</p></content></level><level class="para1" eId="section-75-5-b"><num>(b)</num><content><p>references to remedying a failure include mitigating its effect, and</p></content></level><level class="para1" eId="section-75-5-c"><num>(c)</num><content><p>references to dealing with assets include disposing of them.</p></content></level></subsection></section><section eId="section-76"><num>76</num><heading>Appeals: general</heading><subsection eId="section-76-1"><num>(1)</num><intro><p>A person who is affected by any of the following decisions of the Payment Systems Regulator may appeal against the decision—</p></intro><level class="para1" eId="section-76-1-a"><num>(a)</num><content><p>a decision to give a direction under section 54 (other than a general direction),</p></content></level><level class="para1" eId="section-76-1-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55 (other than a generally-imposed requirement),</p></content></level><level class="para1" eId="section-76-1-c"><num>(c)</num><content><p>a decision to exercise its power under section 56, 57 or 58,</p></content></level><level class="para1" eId="section-76-1-d"><num>(d)</num><content><p>a decision to impose a sanction.</p></content></level></subsection><subsection eId="section-76-2"><num>(2)</num><intro><p>In subsection (1) the reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-76-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-76-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection><subsection eId="section-76-3"><num>(3)</num><content><p>If the decision is a CAT-appealable decision, the appeal must be made to the Competition Appeal Tribunal in accordance with section 77.</p></content></subsection><subsection eId="section-76-4"><num>(4)</num><intro><p>A “<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content><p>a decision to give a direction under section 54,</p></content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55, or</p></content></level><level class="para1" eId="section-76-4-c"><num>(c)</num><content><p>a decision to publish details under section 72(1).</p></content></level></subsection><subsection eId="section-76-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-76-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-76-7"><num>(7)</num><intro><p>A “<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-7-a"><num>(a)</num><content><p>a decision to impose a requirement under section 56,</p></content></level><level class="para1" eId="section-76-7-b"><num>(b)</num><content><p>a decision to vary an agreement under section 57, or</p></content></level><level class="para1" eId="section-76-7-c"><num>(c)</num><content><p>a decision to impose a requirement under section 58.</p></content></level></subsection><subsection eId="section-76-8"><num>(8)</num><content><p>The permission of the CMA is required for an appeal to be made in accordance with section 79.</p></content></subsection><subsection eId="section-76-9"><num>(9)</num><intro><p>The CMA may refuse permission for an appeal only if—</p></intro><level class="para1" eId="section-76-9-a"><num>(a)</num><content><p>the appeal is made for reasons that are trivial or vexatious, or</p></content></level><level class="para1" eId="section-76-9-b"><num>(b)</num><content><p>the appeal has no reasonable prospect of success.</p></content></level></subsection></section><section eId="section-77"><num>77</num><heading>Appeals to Competition Appeal Tribunal</heading><subsection eId="section-77-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a CAT-appealable decision.</p></content></subsection><subsection eId="section-77-2"><num>(2)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection><subsection eId="section-77-3"><num>(3)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection><subsection eId="section-77-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-77-5"><num>(5)</num><intro><p>The Tribunal must either—</p></intro><level class="para1" eId="section-77-5-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-77-5-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection><subsection eId="section-77-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-77-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-77-8"><num>(8)</num><content><p>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).</p></content></subsection><subsection eId="section-77-9"><num>(9)</num><content><p>The effect of any other CAT-appealable decision is not suspended by the making of an appeal against the decision.</p></content></subsection><subsection eId="section-77-10"><num>(10)</num><content><p>In this section and section 78 “<term refersTo="#term-tribunal-rules" eId="term-tribunal-rules">Tribunal rules</term>” means rules under section 15 of the Enterprise Act 2002.</p></content></subsection></section><section eId="section-78"><num>78</num><heading>Appeals in relation to penalties</heading><subsection eId="section-78-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a decision to impose a penalty under section 73.</p></content></subsection><subsection eId="section-78-2"><num>(2)</num><intro><p>The person may appeal against—</p></intro><level class="para1" eId="section-78-2-a"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level><level class="para1" eId="section-78-2-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1" eId="section-78-2-c"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection><subsection eId="section-78-3"><num>(3)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection><subsection eId="section-78-4"><num>(4)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection><subsection eId="section-78-5"><num>(5)</num><intro><p>The Tribunal may do any of the following—</p></intro><level class="para1" eId="section-78-5-a"><num>(a)</num><content><p>uphold the penalty;</p></content></level><level class="para1" eId="section-78-5-b"><num>(b)</num><content><p>set aside the penalty;</p></content></level><level class="para1" eId="section-78-5-c"><num>(c)</num><content><p>substitute for the penalty a penalty of an amount decided by the Tribunal;</p></content></level><level class="para1" eId="section-78-5-d"><num>(d)</num><content><p>vary any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection><subsection eId="section-78-6"><num>(6)</num><content><p>If an appeal is made in accordance with this section, the penalty is not required to be paid until the appeal has been determined.</p></content></subsection><subsection eId="section-78-7"><num>(7)</num><content><p>Subsections (2), (5) and (6) do not restrict the power to make Tribunal rules; and those subsections are subject to Tribunal rules.</p></content></subsection><subsection eId="section-78-8"><num>(8)</num><content><p>Except as provided by this section, the validity of the penalty may not be questioned by any legal proceedings whatever.</p></content></subsection><subsection eId="section-78-9"><num>(9)</num><content><p>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.</p></content></subsection></section><section eId="section-79"><num>79</num><heading>Appeals to Competition and Markets Authority</heading><subsection eId="section-79-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition and Markets Authority (“the CMA”) against a CMA-appealable decision.</p></content></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-79-3"><num>(3)</num><intro><p>In determining the appeal the CMA—</p></intro><level class="para1" eId="section-79-3-a"><num>(a)</num><content><p>may have regard to any matter to which the Payment Systems Regulator was not able to have regard in relation to the decision, but</p></content></level><level class="para1" eId="section-79-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-79-4"><num>(4)</num><intro><p>The CMA must either—</p></intro><level class="para1" eId="section-79-4-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-79-4-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection><subsection eId="section-79-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-79-5-a"><num>(a)</num><content><p>that the Payment Systems Regulator failed properly to have regard to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-b"><num>(b)</num><content><p>that the Payment Systems Regulator failed to give the appropriate weight to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-c"><num>(c)</num><content><p>that the decision was based, wholly or partly, on an error of fact;</p></content></level><level class="para1" eId="section-79-5-d"><num>(d)</num><content><p>that the decision was wrong in law.</p></content></level></subsection><subsection eId="section-79-6"><num>(6)</num><intro><p>If the CMA quashes the whole or part of a decision, it may either—</p></intro><level class="para1" eId="section-79-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-79-6-b"><num>(b)</num><content><p>substitute its own decision for that of the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-79-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-79-8"><num>(8)</num><content><p>Schedule 5 contains further provision about the making of appeals in accordance with this section.</p></content></subsection></section><section eId="section-80"><num>80</num><heading>Enforcement of requirement to dispose of interest in payment system</heading><subsection eId="section-80-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><intro><p>Civil proceedings may not be brought to enforce a requirement imposed under that section unless—</p></intro><level class="para1" eId="section-80-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-80-2-b"><num>(b)</num><content><p>the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-information-and-investigation-powers"><heading><i>Information and investigation powers</i></heading><section eId="section-81"><num>81</num><heading>Power to obtain information or documents</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>The Payment Systems Regulator may by notice in writing require a person to provide information or documents—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>which the Payment Systems Regulator thinks will help the Treasury in determining whether to make a designation order, or</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>which the Payment Systems Regulator otherwise requires in connection with its functions under this Part.</p></content></level></subsection><subsection eId="section-81-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-81-3"><num>(3)</num><intro><p>A notice under subsection (1) may require information or documents to be provided—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p>in a specified form or manner;</p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>at a specified time;</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in respect of a specified period.</p></content></level></subsection></section><section eId="section-82"><num>82</num><heading>Reports by skilled persons</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>appoint a person to provide the Payment Systems Regulator with a report on the matter concerned.</p></content></level><wrapUp><p>The person whose participation in the payment system is to be the subject of the report is referred to in this section as “<term refersTo="#term-the-relevant-participant" eId="term-the-relevant-participant">the relevant participant</term>”.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><content><p>The power conferred by subsection (1)(a) is exercisable by giving the relevant participant a notice in writing.</p></content></subsection><subsection eId="section-82-3"><num>(3)</num><content><p>When acting under subsection (1)(a), the Payment Systems Regulator may require the report to be in a form specified in the notice.</p></content></subsection><subsection eId="section-82-4"><num>(4)</num><content><p>The Payment Systems Regulator must give written notice of an appointment under subsection (1)(b) to the relevant participant.</p></content></subsection><subsection eId="section-82-5"><num>(5)</num><intro><p>A person appointed to make a report under this section—</p></intro><level class="para1" eId="section-82-5-a"><num>(a)</num><content><p>must be a person appearing to the Payment Systems Regulator to have the skills necessary to make a report on the matter concerned, and</p></content></level><level class="para1" eId="section-82-5-b"><num>(b)</num><content><p>where the appointment is to be made by the relevant participant, must be a person nominated or approved by the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-82-6"><num>(6)</num><intro><p>It is the duty of—</p></intro><level class="para1" eId="section-82-6-a"><num>(a)</num><content><p>the relevant participant, and</p></content></level><level class="para1" eId="section-82-6-b"><num>(b)</num><content><p>any person who is providing (or who has at any time provided) services to the relevant participant in relation to the matter concerned,</p></content></level><wrapUp><p>to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.</p></wrapUp></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-82-8"><num>(8)</num><content><p>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).</p></content></subsection></section><section eId="section-83"><num>83</num><heading>Appointment of persons to conduct investigations</heading><subsection eId="section-83-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-84"><num>84</num><heading>Investigations: general</heading><subsection eId="section-84-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-84-2"><num>(2)</num><content><p>The Payment Systems Regulator must give written notice of the appointment of an investigator to the person who is the subject of the investigation.</p></content></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>Subsections (2) and (9) do not apply if—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>the investigator is appointed under subsection (2) of section 83.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>A notice under subsection (2) must—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><content><p>specify the provision under which the investigator was appointed, and</p></content></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>state the reason for the appointment.</p></content></level></subsection><subsection eId="section-84-5"><num>(5)</num><intro><p>Nothing prevents the Payment Systems Regulator from appointing as an investigator—</p></intro><level class="para1" eId="section-84-5-a"><num>(a)</num><content><p>a member of its staff, or</p></content></level><level class="para1" eId="section-84-5-b"><num>(b)</num><content><p>a member of staff of the FCA.</p></content></level></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>An investigator who conducts an investigation must make a report of the investigation to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><intro><p>The Payment Systems Regulator may, by a direction to an investigator, control—</p></intro><level class="para1" eId="section-84-7-a"><num>(a)</num><content><p>the scope of the investigation,</p></content></level><level class="para1" eId="section-84-7-b"><num>(b)</num><content><p>the period during which the investigation is to be conducted,</p></content></level><level class="para1" eId="section-84-7-c"><num>(c)</num><content><p>the conduct of the investigation, and</p></content></level><level class="para1" eId="section-84-7-d"><num>(d)</num><content><p>the reporting of the investigation.</p></content></level></subsection><subsection eId="section-84-8"><num>(8)</num><intro><p>A direction may, in particular—</p></intro><level class="para1" eId="section-84-8-a"><num>(a)</num><content><p>confine the investigation to particular matters;</p></content></level><level class="para1" eId="section-84-8-b"><num>(b)</num><content><p>extend the investigation to additional matters;</p></content></level><level class="para1" eId="section-84-8-c"><num>(c)</num><content><p>require the investigator to discontinue the investigation or to take only those steps that are specified in the direction;</p></content></level><level class="para1" eId="section-84-8-d"><num>(d)</num><content><p>require the investigator to make such interim reports as are so specified.</p></content></level></subsection><subsection eId="section-84-9"><num>(9)</num><content><p>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.</p></content></subsection></section><section eId="section-85"><num>85</num><heading>Powers of persons appointed under section 83</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>An investigator may require any person within subsection (2)—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>to attend before the investigator at a specified time and place and answer questions, or</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>otherwise to provide any information which the investigator requires.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>The persons referred to in subsection (1) are—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>the person who is the subject of the investigation (“the person under investigation”);</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>any person connected with the person under investigation;</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><content><p>An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.</p></content></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>a member of A's group,</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>a controller of A, or</p></content></level><level class="para1" eId="section-85-6-c"><num>(c)</num><content><p>a partnership of which A is a member.</p></content></level></subsection><subsection eId="section-85-7"><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person conducting an investigation under section 83;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in a notice in writing.</p></content></hcontainer></subsection></section><section eId="section-86"><num>86</num><heading>Information and documents: supplemental provisions</heading><subsection eId="section-86-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-relevant-document" eId="term-relevant-document">relevant document</term>” means a document produced in response to a requirement imposed under section 81 or 85.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content><p>it appears that the document is in the possession of another person,</p></content></level><wrapUp><p>the power may be exercised in relation to that other person.</p></wrapUp></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>Any person to whom a relevant document is produced may—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>take copies or extracts from the document, or</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>require the person producing the document, or any relevant person (see subsection (4)), to provide an explanation of the document.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-person" eId="term-relevant-person">Relevant person</term>”, in relation to a person who is required to produce a document, means a person who—</p></intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content><p>has been or is or is proposed to be a director or controller of that person,</p></content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content><p>has been or is an auditor of that person,</p></content></level><level class="para1" eId="section-86-4-c"><num>(c)</num><content><p>has been or is an actuary, accountant or lawyer appointed or instructed by that person, or</p></content></level><level class="para1" eId="section-86-4-d"><num>(d)</num><content><p>has been or is an employee of that person.</p></content></level></subsection><subsection eId="section-86-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>If the person to whom a relevant document is produced has reasonable grounds for believing—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>that the document may have to be produced for the purposes of any legal proceedings, and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>that it might otherwise be unavailable for those purposes,</p></content></level><wrapUp><p>it may be retained until the proceedings are concluded.</p></wrapUp></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><content><p>A lawyer may be required under section 81 or 85 or this section to provide the name and address of a client.</p></content></subsection><subsection eId="section-86-9"><num>(9)</num><intro><p>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—</p></intro><level class="para1" eId="section-86-9-a"><num>(a)</num><content><p>the person is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-b"><num>(b)</num><content><p>the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-c"><num>(c)</num><content><p>the person to whom the obligation of confidence is owed consents to the disclosure or production, or</p></content></level><level class="para1" eId="section-86-9-d"><num>(d)</num><content><p>the imposing on the person of a requirement with respect to such information or document has been specifically authorised by the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-86-10"><num>(10)</num><content><p>If a person claims a lien on a document, its production under section 81 or 85 does not affect the lien.</p></content></subsection><subsection eId="section-86-11"><num>(11)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section><section eId="section-87"><num>87</num><heading>Admissibility of statements made to investigators</heading><subsection eId="section-87-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-87-2"><num>(2)</num><intro><p>But in criminal proceedings in which that person is charged with an offence to which this subsection applies—</p></intro><level class="para1" eId="section-87-2-a"><num>(a)</num><content><p>no evidence relating to the statement may be adduced by or on behalf of the prosecution, and</p></content></level><level class="para1" eId="section-87-2-b"><num>(b)</num><content><p>no question relating to the statement may be asked by or on behalf of the prosecution,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>Subsection (2) applies to any offence other than—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>an offence under section 90(6);</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>an offence under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-d"><num>(d)</num><content><p>an offence under Article 10 of the Perjury (Northern Ireland) Order 1979.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means a requirement imposed by an investigator under section 85 or 86;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section><section eId="section-88"><num>88</num><heading>Entry of premises under warrant</heading><subsection eId="section-88-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>The first set of conditions is—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><intro><p>that on the premises specified in the warrant—</p></intro><level class="para2" eId="section-88-2-b-i"><num>(i)</num><content><p>there are documents which have been required, or</p></content></level><level class="para2" eId="section-88-2-b-ii"><num>(ii)</num><content><p>there is information which has been required.</p></content></level></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>In this section “<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>a requirement imposed by the Payment Systems Regulator under section 81 or 86, or</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>a requirement imposed by an investigator under section 85 or 86.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>The second set of conditions is—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>that the premises specified in the warrant are premises of a participant in a regulated payment system,</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><content><p>that there are on the premises documents or information in relation to which an information requirement could be imposed, and</p></content></level><level class="para1" eId="section-88-4-c"><num>(c)</num><intro><p>that if such a requirement were to be imposed—</p></intro><level class="para2" eId="section-88-4-c-i"><num>(i)</num><content><p>it would not be complied with, or</p></content></level><level class="para2" eId="section-88-4-c-ii"><num>(ii)</num><content><p>the documents or information to which it related would be removed, tampered with or destroyed.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>A warrant under this section authorises a constable—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>to enter the premises specified in the warrant,</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>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 (“<term refersTo="#term-the-relevant-kind" eId="term-the-relevant-kind">the relevant kind</term>”) 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,</p></content></level><level class="para1" eId="section-88-5-c"><num>(c)</num><content><p>to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,</p></content></level><level class="para1" eId="section-88-5-d"><num>(d)</num><content><p>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</p></content></level><level class="para1" eId="section-88-5-e"><num>(e)</num><content><p>to use such force as may be reasonably necessary.</p></content></level></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>A warrant under this section may be executed by any constable.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>The warrant may authorise persons to accompany any constable who is executing it.</p></content></subsection><subsection eId="section-88-8"><num>(8)</num><intro><p>The powers in subsection (5) may be exercised by a person who—</p></intro><level class="para1" eId="section-88-8-a"><num>(a)</num><content><p>is authorised by the warrant to accompany a constable, and</p></content></level><level class="para1" eId="section-88-8-b"><num>(b)</num><content><p>exercises those powers in the company of, and under the supervision of, a constable.</p></content></level></subsection><subsection eId="section-88-9"><num>(9)</num><content><p>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.</p></content></subsection><subsection eId="section-88-10"><num>(10)</num><content><p>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.</p></content></subsection><subsection eId="section-88-11"><num>(11)</num><intro><p>This section has effect in relation to Scotland as if—</p></intro><level class="para1" eId="section-88-11-a"><num>(a)</num><content><p>for any reference to a justice of the peace there were substituted a reference to a justice of the peace or a sheriff, and</p></content></level><level class="para1" eId="section-88-11-b"><num>(b)</num><content><p>for any reference to information on oath there were substituted a reference to evidence on oath.</p></content></level></subsection><subsection eId="section-88-12"><num>(12)</num><content><p>In this section “<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></subsection></section><section eId="section-89"><num>89</num><heading>Retention of documents taken under section 88</heading><subsection eId="section-89-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-89-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-89-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>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).</p></content></subsection></section><section eId="section-90"><num>90</num><heading>Enforcement of information and investigation powers</heading><subsection eId="section-90-1"><num>(1)</num><content><p>If a person other than an investigator (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”) 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.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-90-3"><num>(3)</num><content><p>In subsection (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>causes or permits the falsification, concealment, destruction or disposal of such a document.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>A person is guilty of an offence if the person, in purported compliance with a requirement imposed under any of sections 81 to 88—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>provides information which the person knows to be false or misleading in a material particular, or</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>recklessly provides information which is false or misleading in a material particular.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><intro><p>A person guilty of an offence under subsection (4) or (6) is liable—</p></intro><level class="para1" eId="section-90-7-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-90-7-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-268c76c90370644a50625a9db7253fc1-1677579828788" ukl:CommentaryRef="key-268c76c90370644a50625a9db7253fc1"><noteRef uk:name="commentary" href="#key-268c76c90370644a50625a9db7253fc1" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-c74cbd5f885730b5cd7f0e620ea8e748-1658396421172" ukl:CommentaryRef="key-c74cbd5f885730b5cd7f0e620ea8e748"><noteRef uk:name="commentary" href="#key-c74cbd5f885730b5cd7f0e620ea8e748" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-90-7-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-90-7-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-90-7-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection><subsection eId="section-90-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-8-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-90-8-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-90-8-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-90-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-court" eId="term-court">court</term>” means the High Court or, in Scotland, the Court of Session;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-disclosure-of-information"><heading><i>Disclosure of information</i></heading><section eId="section-91"><num>91</num><heading>Restrictions on disclosure of confidential information</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>the person from whom the primary recipient obtained the information, and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>if different, the person to whom it relates.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><intro><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” means information which—</p></intro><level class="para1" eId="section-91-2-a"><num>(a)</num><content><p>relates to the business or other affairs of any person,</p></content></level><level class="para1" eId="section-91-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-91-2-c"><num>(c)</num><content><p>is not prevented from being confidential information by subsection (4).</p></content></level></subsection><subsection eId="section-91-3"><num>(3)</num><intro><p>It is immaterial for the purposes of subsection (2) whether or not the information was received—</p></intro><level class="para1" eId="section-91-3-a"><num>(a)</num><content><p>as a result of a requirement to provide it imposed by or under any enactment;</p></content></level><level class="para1" eId="section-91-3-b"><num>(b)</num><content><p>for other purposes as well as purposes mentioned in that subsection.</p></content></level></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>Information is not confidential information if—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><intro><p>Each of the following is a primary recipient for the purposes of this section—</p></intro><level class="para1" eId="section-91-5-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-91-5-b"><num>(b)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-91-5-c"><num>(c)</num><content><p>a person who is or has been employed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-d"><num>(d)</num><content><p>a person who is or has been engaged to provide services to the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-e"><num>(e)</num><content><p>any auditor or expert instructed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-f"><num>(f)</num><content><p>a person appointed to make a report under section 82;</p></content></level><level class="para1" eId="section-91-5-g"><num>(g)</num><content><p>a person appointed under section 83.</p></content></level></subsection><subsection eId="section-91-6"><num>(6)</num><content><p>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.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></section><section eId="section-92"><num>92</num><heading>Exemptions from section 91</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>Section 91 does not prevent a disclosure of confidential information which—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>is made for the purpose of facilitating the carrying out of a public function, and</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>is permitted by regulations made by the Treasury under this section.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><intro><p>For the purposes of this section “<term refersTo="#term-public-functions" eId="term-public-functions">public functions</term>” includes—</p></intro><level class="para1" eId="section-92-2-a"><num>(a)</num><content><p>functions conferred by or in accordance with any provision contained in any enactment;</p></content></level><level class="para1" eId="section-92-2-b"><num><noteRef href="#key-c6c6f70be29daf0f13f2f6d24a5a9929" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-92-2-c"><num>(c)</num><content><p>similar functions <ins class="first last" ukl:ChangeId="key-fdc618100138b6dd7af6bbd1d172e510-1630937142011" ukl:CommentaryRef="key-fdc618100138b6dd7af6bbd1d172e510"><noteRef uk:name="commentary" href="#key-fdc618100138b6dd7af6bbd1d172e510" class="commentary"/>to those in paragraph (a)</ins> conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1" eId="section-92-2-d"><num>(d)</num><content><p>functions exercisable in relation to specified disciplinary proceedings.</p></content></level></subsection><subsection eId="section-92-3"><num>(3)</num><intro><p>Regulations under this section may, in particular, make provision permitting the disclosure of confidential information or of confidential information of a specified kind—</p></intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-c"><num>(c)</num><content><p>by the Payment Systems Regulator to the Treasury for any purpose;</p></content></level><level class="para1" eId="section-92-3-d"><num>(d)</num><content><p>by any recipient if the disclosure is with a view to or in connection with specified proceedings.</p></content></level></subsection><subsection eId="section-92-4"><num>(4)</num><intro><p>Regulations under this section may also include provision—</p></intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content><p>making any permission to disclose confidential information subject to conditions (which may relate to the obtaining of consents or any other matter);</p></content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content><p>restricting the uses to which confidential information disclosed under the regulations may be put.</p></content></level></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>In relation to confidential information, each of the following is a “recipient”—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>a primary recipient;</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>a person obtaining the information directly or indirectly from a primary recipient.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” and “<term refersTo="#term-primary-recipient" eId="term-primary-recipient">primary recipient</term>” have the same meaning as in section 91;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations.</p></content></hcontainer></subsection></section><section eId="section-93"><num>93</num><heading>Offences relating to disclosure of confidential information</heading><subsection eId="section-93-1"><num>(1)</num><content><p>A person who discloses information in contravention of section 91 is guilty of an offence.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><intro><p>A person guilty of an offence under subsection (1) is liable—</p></intro><level class="para1" eId="section-93-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-93-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;</p></content></level><level class="para2" eId="section-93-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-93-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-93-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection><subsection eId="section-93-3"><num>(3)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content><p>information has been disclosed to the person in accordance with regulations made under section 92, and</p></content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content><p>the person uses the information in contravention of any provision of those regulations.</p></content></level></subsection><subsection eId="section-93-4"><num>(4)</num><intro><p>A person guilty of an offence under subsection (3) is liable on summary conviction—</p></intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>In proceedings against a person (“P”) for an offence under this section it is a defence for P to prove—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>that P did not know and had no reason to suspect that the information was confidential information;</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>that P took all reasonable precautions and exercised all due diligence to avoid committing the offence.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” has the same meaning as in section 91.</p></content></subsection></section><section eId="section-94"><num>94</num><heading>Information received from Bank of England</heading><subsection eId="section-94-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-94-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-94-1-b"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection eId="section-94-2"><num>(2)</num><content><p>A regulator must not disclose to any person specially protected information.</p></content></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>“Specially protected information” is information in relation to which the first and second conditions are met.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The first condition is that the regulator received the information from—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>the Bank of England (“<term refersTo="#term-the-bank" eId="term-the-bank">the Bank</term>”), or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>the other regulator where that regulator had received the information from the Bank.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>monetary policy;</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>financial operations intended to support financial institutions for the purposes of maintaining stability;</p></content></level><level class="para1" eId="section-94-5-c"><num>(c)</num><content><p>the provision of private banking services and related services.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>The notification referred to in subsection (5) must be—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>in writing, and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>given before, or at the same time as, the Bank discloses the information.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><intro><p>The prohibition in subsection (2) does not apply—</p></intro><level class="para1" eId="section-94-7-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-b"><num>(b)</num><content><p>where the Bank has consented to disclosure of the information;</p></content></level><level class="para1" eId="section-94-7-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-d"><num><noteRef href="#key-4597eff7f769672be81a12a8f7ded29a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(d)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection><subsection eId="section-94-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-8-a"><num>(a)</num><content><p>persons who are, or are acting as, officers of, or members of the staff of, the regulator;</p></content></level><level class="para1" eId="section-94-8-b"><num>(b)</num><content><p>persons who are, or are acting as, officers, employees or agents of the Bank;</p></content></level><level class="para1" eId="section-94-8-c"><num>(c)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator or the Bank under powers conferred by this Part or otherwise.</p></content></level></subsection><subsection eId="section-94-9"><num>(9)</num><content><p>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.</p></content></subsection><subsection eId="section-94-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-10-a"><num>(a)</num><content><p>its officers or members of staff (including persons acting as its officers or members of staff);</p></content></level><level class="para1" eId="section-94-10-b"><num>(b)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator under powers conferred by this Part or otherwise;</p></content></level><level class="para1" eId="section-94-10-c"><num>(c)</num><content><p>persons to whom the regulator has delegated any of its functions.</p></content></level></subsection></section><section eId="section-95"><num>95</num><heading>Disclosure of information by Bank to Regulator</heading><content><p><mod>In section 246 of the Banking Act 2009 (information), in subsection (2), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>the Payment Systems Regulator (established under section 40 of the Financial Services (Banking Reform) Act 2013);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-guidance"><heading><i>Guidance</i></heading><section eId="section-96"><num>96</num><heading>Guidance</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>The Payment Systems Regulator may give guidance consisting of such information and advice as it considers appropriate—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content><p>with respect to the operation of specified provisions of this Part;</p></content></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>with respect to any other matter relating to its functions under this Part;</p></content></level><level class="para1" eId="section-96-1-c"><num>(c)</num><content><p>with respect to any other matters about which it appears to the Payment Systems Regulator to be desirable to give information or advice.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><intro><p>In this Part “<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” means guidance given by the Payment Systems Regulator under this section which—</p></intro><level class="para1" eId="section-96-3-a"><num>(a)</num><intro><p>is given—</p></intro><level class="para2" eId="section-96-3-a-i"><num>(i)</num><content><p>to persons generally,</p></content></level><level class="para2" eId="section-96-3-a-ii"><num>(ii)</num><content><p>to participants in payment systems, or regulated payment systems, generally, or</p></content></level><level class="para2" eId="section-96-3-a-iii"><num>(iii)</num><content><p>to a class of participant in a payment system or regulated payment system,</p></content></level></level><level class="para1" eId="section-96-3-b"><num>(b)</num><content><p>is intended to have continuing effect, and</p></content></level><level class="para1" eId="section-96-3-c"><num>(c)</num><content><p>is given in writing or other legible form.</p></content></level></subsection><subsection eId="section-96-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-96-5"><num>(5)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-96-5-a"><num>(a)</num><content><p>publish its guidance,</p></content></level><level class="para1" eId="section-96-5-b"><num>(b)</num><content><p>offer copies of its published guidance for sale at a reasonable price, and</p></content></level><level class="para1" eId="section-96-5-c"><num>(c)</num><content><p>if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-reports"><heading><i>Reports</i></heading><section eId="section-97"><num>97</num><heading>Reports</heading><content><p>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.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-technical-standards"><heading><ins class="first" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><noteRef uk:name="commentary" href="#key-dc6b3a1cfe6a5619652300e707df9abb" class="commentary"/>Technical Standards</ins></heading><section eId="section-97A"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97A.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Technical standards</ins></heading><subsection eId="section-97A-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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 </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity to make </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation (the “original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power”) by regulations made under section 8 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection><subsection eId="section-97A-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The power to make technical standards includes power to modify, amend or revoke—</ins></p></intro><level class="para1" eId="section-97A-2-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any technical standards made by the Payment Systems Regulator under that power;</ins></p></content></level><level class="para1" eId="section-97A-2-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation made by an </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity under the original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power which forms part of </ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><ins class="substitution first last" ukl:ChangeId="key-32a67e8c3d86d56c86583365876d8a48-1706700933025" ukl:CommentaryRef="key-32a67e8c3d86d56c86583365876d8a48"><noteRef uk:name="commentary" href="#key-32a67e8c3d86d56c86583365876d8a48" class="commentary"/>assimilated</ins></ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> law.</ins></p></content></level></subsection><subsection eId="section-97A-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection><subsection eId="section-97A-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of this section, “</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation” has the meaning given in section 14 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection></section><section eId="section-97B"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97B.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Standards instruments</ins></heading><subsection eId="section-97B-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection><subsection eId="section-97B-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument must specify the provision under which the instrument is being made.</ins></p></content></subsection><subsection eId="section-97B-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">To the extent that a standards instrument does not comply with subsection (2), it is void.</ins></p></content></subsection><subsection eId="section-97B-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection><subsection eId="section-97B-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury must lay before Parliament a copy of each standards instrument made under this section.</ins></p></content></subsection><subsection eId="section-97B-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a standards instrument.</ins></p></content></subsection></section><section eId="section-97C"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97C.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Treasury approval</ins></heading><subsection eId="section-97C-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument may be made only if it has been approved by the Treasury.</ins></p></content></subsection><subsection eId="section-97C-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury may refuse to approve a standards instrument if subsection (3) applies.</ins></p></content></subsection><subsection eId="section-97C-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">This subsection applies if it appears to the Treasury that the instrument would—</ins></p></intro><level class="para1" eId="section-97C-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">have implications for public funds (within the meaning of section 78(2) of the Banking Act 2009); or</ins></p></content></level><level class="para1" eId="section-97C-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">prejudice any current or proposed negotiations for an international agreement between the United Kingdom and one or more other countries, international organisations or institutions.</ins></p></content></level></subsection><subsection eId="section-97C-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of subsection (3), “international organisations” includes the European Union.</ins></p></content></subsection><subsection eId="section-97C-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection><subsection eId="section-97C-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Provision of a draft standards instrument to the Treasury for consultation does not amount to submission of the instrument for approval.</ins></p></content></subsection><subsection eId="section-97C-7"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(7)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">If the Treasury do not approve the instrument, they must—</ins></p></intro><level class="para1" eId="section-97C-7-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">set out in the notice given under subsection (5) the Treasury’s reasons for not approving the instrument;</ins></p></content></level><level class="para1" eId="section-97C-7-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">lay before Parliament—</ins></p></intro><level class="para2" eId="section-97C-7-b-i"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(i)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of that notice;</ins></p></content></level><level class="para2" eId="section-97C-7-b-ii"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(ii)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.</ins></p></content></level></level></subsection><subsection eId="section-97C-8"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(8)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection></section><section eId="section-97D"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97D.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Application of section 104 of this Act and Part 9A of the Financial Services and Markets Act 2000</ins></heading><subsection eId="section-97D-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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—</ins></p></intro><level class="para1" eId="section-97D-1-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”);</ins></p></content></level><level class="para1" eId="section-97D-1-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></level></subsection><subsection eId="section-97D-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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).</ins></p></content></subsection><subsection eId="section-97D-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The provisions referred to in subsection (2) are—</ins></p></intro><level class="para1" eId="section-97D-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 137T (general supplementary powers) (ignoring paragraph (b));</ins></p></content></level><level class="para1" eId="section-97D-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138E (limit on effect of contravening rules) (ignoring subsection (3));</ins></p></content></level><level class="para1" eId="section-97D-3-c"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(c)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138F (notification of rules) (ignoring subsection (2));</ins></p></content></level><level class="para1" eId="section-97D-3-d"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(d)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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)).</ins></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-relationship-with-other-regulators"><heading><i>Relationship with other regulators</i></heading><section eId="section-98"><num>98</num><heading>Duty of regulators to ensure co-ordinated exercise of functions</heading><subsection eId="section-98-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-98-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-98-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-98-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-98-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection><subsection eId="section-98-2"><num>(2)</num><intro><p>The regulators must co-ordinate the exercise of their relevant functions (see subsection (5)) with a view to ensuring—</p></intro><level class="para1" eId="section-98-2-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-98-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-98-3"><num>(3)</num><intro><p>The duty in subsection (2) applies only to the extent that compliance with the duty—</p></intro><level class="para1" eId="section-98-3-a"><num>(a)</num><content><p>is compatible with the advancement by each regulator of any of its objectives, and</p></content></level><level class="para1" eId="section-98-3-b"><num>(b)</num><content><p>does not impose a burden on the regulators that is disproportionate to the benefits of compliance.</p></content></level></subsection><subsection eId="section-98-4"><num>(4)</num><intro><p>A function conferred on a regulator relates to matters of common regulatory interest if—</p></intro><level class="para1" eId="section-98-4-a"><num>(a)</num><content><p>another regulator exercises similar or related functions in relation to the same persons,</p></content></level><level class="para1" eId="section-98-4-b"><num>(b)</num><content><p>another regulator exercises functions which relate to different persons but relate to similar subject-matter, or</p></content></level><level class="para1" eId="section-98-4-c"><num>(c)</num><content><p>its exercise could affect the advancement by another regulator of any of its objectives.</p></content></level></subsection><subsection eId="section-98-5"><num>(5)</num><intro><p>“<term refersTo="#term-relevant-functions" eId="term-relevant-functions">Relevant functions</term>” means—</p></intro><level class="para1" eId="section-98-5-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its functions under this Part <ins class="first last" ukl:ChangeId="key-64febbe2d99cf111cb38e622fdba83ed-1498408079067" ukl:CommentaryRef="key-64febbe2d99cf111cb38e622fdba83ed"><noteRef uk:name="commentary" href="#key-64febbe2d99cf111cb38e622fdba83ed" class="commentary"/>or Part 2 of the Payment Card Interchange Fee Regulations 2015</ins> ;</p></content></level><level class="para1" eId="section-98-5-b"><num>(b)</num><content><p>in relation to the Bank of England, its functions under Part 5 of the Banking Act 2009 (<noteRef href="#key-5b0ca3fe5e74789345af35879bf7ea2a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment systems) <ins class="first last" ukl:ChangeId="key-79ab573602ed6e98e3f98db1cea9fe74-1695297797443" ukl:CommentaryRef="key-79ab573602ed6e98e3f98db1cea9fe74"><noteRef uk:name="commentary" href="#key-79ab573602ed6e98e3f98db1cea9fe74" class="commentary"/>or Part 5A of that Act (wholesale cash distribution)</ins>;</p></content></level><level class="para1" eId="section-98-5-c"><num><ins class="substitution first" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c"><noteRef uk:name="commentary" href="#key-2bda1875485f3cd591fae39043f9820c" class="commentary"/>(c)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">in relation to the FCA—</ins></p></intro><level class="para2" eId="section-98-5-c-i"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);</ins></p></content></level><level class="para2" eId="section-98-5-c-ii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00360" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2015/1911</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under the Electronic Money Regulations 2011 (</ins><ref eId="c00361" href="http://www.legislation.gov.uk/id/uksi/2011/99"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2011/99</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iv"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iv)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">its functions in regulating—</ins></p></intro><level class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level><level class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level></level></level><level class="para1" eId="section-98-5-d"><num>(d)</num><content><p>in relation to the PRA, the functions conferred on it by or under FSMA 2000 (see section <ins class="substitution first last" ukl:ChangeId="key-12e0b10ce29c10d7311b504cad335773-1498415101442" ukl:CommentaryRef="key-12e0b10ce29c10d7311b504cad335773"><noteRef uk:name="commentary" href="#key-12e0b10ce29c10d7311b504cad335773" class="commentary"/>2AB(3)</ins> of that Act).</p></content></level></subsection><subsection eId="section-98-6"><num>(6)</num><intro><p>“<term refersTo="#term-objectives" eId="term-objectives">Objectives</term>” means—</p></intro><level class="para1" eId="section-98-6-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its payment systems objectives <ins class="first last" ukl:ChangeId="key-d45b0ac96cfb811b194dbc73caf9dfe3-1498408162305" ukl:CommentaryRef="key-d45b0ac96cfb811b194dbc73caf9dfe3"><noteRef uk:name="commentary" href="#key-d45b0ac96cfb811b194dbc73caf9dfe3" class="commentary"/>and ensuring compliance with the interchange fee regulation (see Part 2 of the Payment Card Interchange Fee Regulations 2015)</ins> ;</p></content></level><level class="para1" eId="section-98-6-b"><num>(b)</num><content><p>in relation to the Bank of England, its Financial Stability Objective under section 2A of the Bank of England Act 1998;</p></content></level><level class="para1" eId="section-98-6-c"><num>(c)</num><content><p>in relation to the FCA, its strategic objective and operational objectives under section 1B of FSMA 2000 <ins class="first last" ukl:ChangeId="key-dda5a1b83d9cd2db2303d5db120a97f4-1498408197615" ukl:CommentaryRef="key-dda5a1b83d9cd2db2303d5db120a97f4"><noteRef uk:name="commentary" href="#key-dda5a1b83d9cd2db2303d5db120a97f4" class="commentary"/>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)</ins> ;</p></content></level><level class="para1" eId="section-98-6-d"><num>(d)</num><content><p>in relation to the PRA, its general objective under section 2B of that Act.</p></content></level></subsection><subsection eId="section-98-7"><num><ins class="first" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7"><noteRef uk:name="commentary" href="#key-f50ad5ff0cebb7c4e2f2dafa0fe068e7" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">In subsection (6) “the interchange fee regulation” means Regulation (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">EU</ins></abbr><ins class="last" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions.</ins></p></content></subsection></section><section eId="section-99"><num>99</num><heading>Memorandum of understanding</heading><subsection eId="section-99-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-99-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-99-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-99-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-99-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection><subsection eId="section-99-2"><num>(2)</num><intro><p>The regulators must prepare and maintain a memorandum which describes in general terms—</p></intro><level class="para1" eId="section-99-2-a"><num>(a)</num><content><p>the role of each regulator in relation to the exercise of relevant functions which relate to matters of common regulatory interest, and</p></content></level><level class="para1" eId="section-99-2-b"><num>(b)</num><content><p>how the regulators intend to comply with section 98 in relation to the exercise of such functions.</p></content></level></subsection><subsection eId="section-99-3"><num>(3)</num><content><p>The regulators must review the memorandum at least once in each calendar year.</p></content></subsection><subsection eId="section-99-4"><num>(4)</num><content><p>The regulators must give the Treasury a copy of the memorandum and any revised memorandum.</p></content></subsection><subsection eId="section-99-5"><num>(5)</num><content><p>The Treasury must lay before Parliament a copy of any document received by them under this section.</p></content></subsection><subsection eId="section-99-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-99-7"><num>(7)</num><intro><p>The memorandum need not relate to any aspect of compliance with section 98 if the regulators consider—</p></intro><level class="para1" eId="section-99-7-a"><num>(a)</num><content><p>that publication of information about that aspect would be against the public interest, or</p></content></level><level class="para1" eId="section-99-7-b"><num>(b)</num><content><p>that that aspect is a technical or operational matter not affecting the public.</p></content></level></subsection><subsection eId="section-99-8"><num>(8)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-99-8-a"><num>(a)</num><content><p>the reference in subsection (2)(a) to matters of common regulatory interest is to be read in accordance with section 98(4), and</p></content></level><level class="para1" eId="section-99-8-b"><num>(b)</num><content><p>references to relevant functions are to be read in accordance with section 98(5).</p></content></level></subsection></section><section eId="section-100"><num>100</num><heading>Power of Bank to require Regulator to refrain from specified action</heading><subsection eId="section-100-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-100-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>have serious consequences for business or other interests in the United Kingdom, or</p></content></level><level class="para1" eId="section-100-3-c"><num>(c)</num><content><p>have an adverse effect on the Bank's ability to act in its capacity as a monetary authority.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-100-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-100-7"><num>(7)</num><content><p>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 <noteRef href="#key-18f87d6628824c5766e1b9a7da26f848" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection></section><section eId="section-101"><num>101</num><heading>Power of FCA to require Regulator to refrain from specified action</heading><subsection eId="section-101-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the FCA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-101-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>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).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-101-7"><num>(7)</num><content><p>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 <noteRef href="#key-cec808fc7fbcf9bd0f3b0c2066c008ee" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection></section><section eId="section-102"><num>102</num><heading>Power of PRA to require Regulator to refrain from specified action</heading><subsection eId="section-102-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the PRA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-102-2"><num>(2)</num><intro><p>The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to—</p></intro><level class="para1" eId="section-102-2-a"><num>(a)</num><content><p>a class of PRA-authorised persons, or</p></content></level><level class="para1" eId="section-102-2-b"><num>(b)</num><content><p>a particular PRA-authorised person.</p></content></level></subsection><subsection eId="section-102-3"><num>(3)</num><intro><p>The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content><p>result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-c"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom, or</p></content></level><level class="para1" eId="section-102-3-d"><num>(d)</num><content><p>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).</p></content></level></subsection><subsection eId="section-102-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-102-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-102-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-102-7"><num>(7)</num><content><p>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 <noteRef href="#key-ea601705a6b7aa4d408abb82ce180745" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection><subsection eId="section-102-8"><num>(8)</num><content><p>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.</p></content></subsection><subsection eId="section-102-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-core-services" eId="term-core-services">core services</term>” has the same meaning as in FSMA 2000 (see section 142C of that Act), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” has the same meaning as in FSMA 2000 (see section 2B(5) of that Act).</p></content></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-recommendations"><heading><ins class="first" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"><noteRef uk:name="commentary" href="#key-e0bd16cf20812c070727a00ad247ccf3" class="commentary"/>Recommendations</ins></heading><section eId="section-102A"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">102A</ins></num><heading><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Recommendations by Treasury in connection with general duties</ins></heading><subsection eId="section-102A-1"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(1)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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—</ins></p></intro><level class="para1" eId="section-102A-1-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">how to advance one or more of its payment systems objectives,</ins></p></content></level><level class="para1" eId="section-102A-1-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the application of the regulatory principles in section 53, and</ins></p></content></level><level class="para1" eId="section-102A-1-c"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(c)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">its exercise of functions under—</ins></p></intro><level class="para2" eId="section-102A-1-c-i"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(i)</ins></num><content><p>
<ref eId="c00363" href="http://www.legislation.gov.uk/european/regulation/2015/0751"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Regulation (EU) 2015/751</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"> of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,</ins></p></content></level><level class="para2" eId="section-102A-1-c-ii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(ii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00364" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2015/1911</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">), or</ins></p></content></level><level class="para2" eId="section-102A-1-c-iii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(iii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Services Regulations 2017 (</ins><ref eId="c00365" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2017/752</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">).</ins></p></content></level></level></subsection><subsection eId="section-102A-2"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(2)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must make recommendations under subsection (1) at least once in each Parliament.</ins></p></content></subsection><subsection eId="section-102A-3"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(3)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Payment Systems Regulator must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—</ins></p></intro><level class="para1" eId="section-102A-3-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">action that the Regulator has taken or intends to take in accordance with the recommendation, or</ins></p></content></level><level class="para1" eId="section-102A-3-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation.</ins></p></content></level></subsection><subsection eId="section-102A-4"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(4)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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).</ins></p></content></subsection><subsection eId="section-102A-5"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(5)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection><subsection eId="section-102A-6"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(6)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Subsection (5) does not apply if the Treasury have notified the Payment Systems Regulator in writing that no update (or further update) is required.</ins></p></content></subsection><subsection eId="section-102A-7"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(7)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection><subsection eId="section-102A-8"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(8)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must—</ins></p></intro><level class="para1" eId="section-102A-8-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and</ins></p></content></level><level class="para1" eId="section-102A-8-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">lay a copy of it before Parliament.</ins></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-consultation-accountability-and-oversight"><heading><i>Consultation, accountability and oversight</i></heading><section eId="section-102B"><num><ins class="first" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d"><noteRef uk:name="commentary" href="#key-516322097f0876cec59b72e8e7eb670d" class="commentary"/>102B</ins></num><heading><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Matters to consider when imposing generally applicable requirements</ins></heading><subsection eId="section-102B-1"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(1)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">This section applies where the Payment Systems Regulator proposes to impose a generally applicable requirement (as defined by section 104(1)).</ins></p></content></subsection><subsection eId="section-102B-2"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(2)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">The Regulator must have regard to any specified matters that are relevant to the imposition of the requirement in question.</ins></p></content></subsection><subsection eId="section-102B-3"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(3)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">“</ins><term refersTo="#term-specified"><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Specified</ins></term><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">” means specified in regulations made by the Treasury for the purposes of this section.</ins></p></content></subsection><subsection eId="section-102B-4"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(4)</ins></num><intro><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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—</ins></p></intro><level class="para1" eId="section-102B-4-a"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(a)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the power under which the function is carried out;</ins></p></content></level><level class="para1" eId="section-102B-4-b"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(b)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the persons to whom the carrying out of the function apply;</ins></p></content></level><level class="para1" eId="section-102B-4-c"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(c)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the activities or subject-matter to which the function relates.</ins></p></content></level></subsection><subsection eId="section-102B-5"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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.</ins></p></content></subsection></section><section eId="section-103"><num>103</num><heading>Regulator's general duty to consult</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—</p></intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content><p>the extent to which its general policies and practices are consistent with its general duties under section 49, and</p></content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content><p>how its payment systems objectives may best be achieved.</p></content></level></subsection><subsection eId="section-103-2"><num>(2)</num><intro><p>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” for the purposes of this section—</p></intro><level class="para1" eId="section-103-2-a"><num>(a)</num><content><p>participants in regulated payment systems, and</p></content></level><level class="para1" eId="section-103-2-b"><num>(b)</num><content><p>those who use, or are likely to use, services provided by regulated payment systems.</p></content></level></subsection><subsection eId="section-103-3"><num>(3)</num><content><p>Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.</p></content></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).</p></content></subsection><subsection eId="section-103-5A"><num><ins class="first" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6"><noteRef uk:name="commentary" href="#key-e3bf7f20a32230f5fac2f1698f44d2c6" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></subsection><subsection eId="section-103-5B"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5B)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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.</ins></p></content></subsection><subsection eId="section-103-5C"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5C)</ins></num><intro><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">Regulations under subsection (5B) may make provision in respect of a panel—</ins></p></intro><level class="para1" eId="section-103-5C-a"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(a)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">generally, or</ins></p></content></level><level class="para1" eId="section-103-5C-b"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></level></subsection><subsection eId="section-103-6"><num>(6)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-103-6-a"><num>(a)</num><content><p>consider representations that are made to it in accordance with arrangements made under this section, and</p></content></level><level class="para1" eId="section-103-6-b"><num>(b)</num><content><p>from time to time publish, in such manner as it thinks fit, responses to the representations.</p></content></level></subsection></section><section eId="section-104"><num>104</num><heading>Consultation in relation to generally applicable requirements</heading><subsection eId="section-104-1"><num>(1)</num><intro><p>In this <ins class="substitution first last" ukl:ChangeId="key-aa5a86e0cfa2d91b7c2190860abee606-1695298093734" ukl:CommentaryRef="key-aa5a86e0cfa2d91b7c2190860abee606"><noteRef uk:name="commentary" href="#key-aa5a86e0cfa2d91b7c2190860abee606" class="commentary"/>Part</ins> references to imposing a generally applicable requirement are to—</p></intro><level class="para1" eId="section-104-1-a"><num>(a)</num><content><p>giving a general direction under section 54, or</p></content></level><level class="para1" eId="section-104-1-b"><num>(b)</num><content><p>imposing a generally-imposed requirement under section 55,</p></content></level><wrapUp><p>and references to the requirement are to be read accordingly.</p></wrapUp></subsection><subsection eId="section-104-2"><num>(2)</num><intro><p>Before imposing a generally applicable requirement, the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-104-2-a"><num>(a)</num><content><p>consult the Bank of England, the FCA and the PRA, and</p></content></level><level class="para1" eId="section-104-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-104-3"><num>(3)</num><intro><p>The draft must be accompanied by—</p></intro><level class="para1" eId="section-104-3-a"><num>(a)</num><content><p>a cost benefit analysis,</p></content></level><level class="para1" eId="section-104-3-b"><num>(b)</num><content><p>an explanation of the purpose of the proposed requirement,</p></content></level><level class="para1" eId="section-104-3-ba"><num><ins class="first" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63"><noteRef uk:name="commentary" href="#key-d5a5267ce5a0e78b546feb61715a6f63" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63">an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the proposed requirement,</ins></p></content></level><level class="para1" eId="section-104-3-c"><num>(c)</num><content><p>an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and</p></content></level><level class="para1" eId="section-104-3-d"><num>(d)</num><content><p>notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.</p></content></level></subsection><subsection eId="section-104-4"><num>(4)</num><content><p>Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).</p></content></subsection><subsection eId="section-104-5"><num>(5)</num><intro><p>If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="section-104-5-a"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3)(d), and</p></content></level><level class="para1" eId="section-104-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subsection><subsection eId="section-104-5A"><num><ins class="first" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab"><noteRef uk:name="commentary" href="#key-310457b8f9a986625320a8dded3872ab" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection><subsection eId="section-104-5B"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5B)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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).</ins></p></content></subsection><subsection eId="section-104-5C"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5C)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">In this section “</ins><term refersTo="#term-data-protection-legislation"><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">data protection legislation</ins></term><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).</ins></p></content></subsection><subsection eId="section-104-5D"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5D)</ins></num><content><p><ins class="last" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection><subsection eId="section-104-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-104-7"><num>(7)</num><intro><p>For the purposes of this section a “cost benefit analysis” is—</p></intro><level class="para1" eId="section-104-7-a"><num>(a)</num><intro><p>an analysis of the costs together with an analysis of the benefits that will arise—</p></intro><level class="para2" eId="section-104-7-a-i"><num>(i)</num><content><p>if the proposed requirement is imposed, or</p></content></level><level class="para2" eId="section-104-7-a-ii"><num>(ii)</num><content><p>if subsection (6) applies, from the requirement imposed, and</p></content></level></level><level class="para1" eId="section-104-7-b"><num>(b)</num><content><p>subject to subsection (8), an estimate of those costs and of those benefits.</p></content></level></subsection><subsection eId="section-104-8"><num>(8)</num><intro><p>If, in the opinion of the Payment Systems Regulator—</p></intro><level class="para1" eId="section-104-8-a"><num>(a)</num><content><p>the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or</p></content></level><level class="para1" eId="section-104-8-b"><num>(b)</num><content><p>it is not reasonably practicable to produce an estimate,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-104-9"><num>(9)</num><content><p>The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).</p></content></subsection><subsection eId="section-104-10"><num>(10)</num><content><p>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.</p></content></subsection><subsection eId="section-104-11"><num>(11)</num><intro><p>Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—</p></intro><level class="para1" eId="section-104-11-a"><num>(a)</num><content><p>there will be no increase in costs, or</p></content></level><level class="para1" eId="section-104-11-b"><num>(b)</num><content><p>there will be an increase in costs but the increase will be of minimal significance.</p></content></level></subsection><subsection eId="section-104-12"><num>(12)</num><intro><p>In subsection (11) the “<term refersTo="#term-appropriate-comparison" eId="term-appropriate-comparison">appropriate comparison</term>” means—</p></intro><level class="para1" eId="section-104-12-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-104-12-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-104-12A"><num><ins class="first" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6"><noteRef uk:name="commentary" href="#key-c8b0a72b17dfefbc8f51bec6ff84b2f6" class="commentary"/>(12A)</ins></num><content><p><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection><subsection eId="section-104-12B"><num><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">(12B)</ins></num><content><p><ins class="last" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection></section><section eId="section-104A"><num><ins class="first" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268"><noteRef uk:name="commentary" href="#key-4f6d1291d9ec5d3cfde30af3d579d268" class="commentary"/>104A</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Requirements in connection with public consultations</ins></heading><subsection eId="section-104A-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Payment Systems Regulator issues a public consultation.</ins></p></content></subsection><subsection eId="section-104A-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104A-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104A-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection><subsection eId="section-104A-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section a “statutory panel”—</ins></p></intro><level class="para1" eId="section-104A-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the Payment Systems Regulator, means a panel established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104A-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the FCA, has the meaning given by section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104A-5-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the PRA, has the meaning given by section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection></section><section eId="section-104B"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104B</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Duty of Regulator to review generally applicable requirements</ins></heading><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must keep under review generally any generally applicable requirements.</ins></p></content></section><section eId="section-104C"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104C</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy relating to review of requirements</ins></heading><subsection eId="section-104C-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must prepare and publish a statement of its policy with respect to its review of requirements under section 104B.</ins></p></content></subsection><subsection eId="section-104C-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104C-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under section 104B, and</ins></p></content></level><level class="para1" eId="section-104C-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the arrangements to ensure that those representations are considered.</ins></p></content></level></subsection><subsection eId="section-104C-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section “</ins><term refersTo="#term-relevant-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">relevant panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” means—</ins></p></intro><level class="para1" eId="section-104C-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the Payment Systems Regulator established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104C-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104C-3-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the PRA mentioned in section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection><subsection eId="section-104C-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104C-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104D"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104D</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Requirement to review specified requirements</ins></heading><subsection eId="section-104D-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104D-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the requirement has been in force for at least 12 months,</ins></p></content></level><level class="para1" eId="section-104D-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the Treasury consider that it is in the public interest that the requirement is reviewed, and</ins></p></content></level><level class="para1" eId="section-104D-1-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">it does not appear to the Treasury that—</ins></p></intro><level class="para2" eId="section-104D-1-c-i"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(i)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the regulator is carrying out, or proposes to carry out, a review of that requirement, or</ins></p></content></level><level class="para2" eId="section-104D-1-c-ii"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(ii)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.</ins></p></content></level></level></subsection><subsection eId="section-104D-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Treasury must consult the Payment Systems Regulator before giving a direction under subsection (1).</ins></p></content></subsection><subsection eId="section-104D-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104D-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under subsection (1) may—</ins></p></intro><level class="para1" eId="section-104D-4-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify the period within which a review must be carried out;</ins></p></content></level><level class="para1" eId="section-104D-4-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">determine the scope and conduct of a review;</ins></p></content></level><level class="para1" eId="section-104D-4-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">require the provision of interim reports during the carrying out of a review.</ins></p></content></level></subsection><subsection eId="section-104D-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Provision made in a direction under subsection (4)(b) may include a requirement—</ins></p></intro><level class="para1" eId="section-104D-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator;</ins></p></content></level><level class="para1" eId="section-104D-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for any such appointment to be made only with the approval of the Treasury.</ins></p></content></level></subsection><subsection eId="section-104D-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after giving the direction the Treasury must—</ins></p></intro><level class="para1" eId="section-104D-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the direction, and</ins></p></content></level><level class="para1" eId="section-104D-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subsection><subsection eId="section-104D-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Subsection (6) does not apply where the Treasury consider that publication of the direction would be against the public interest.</ins></p></content></subsection><subsection eId="section-104D-8"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(8)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under this section may be varied or revoked by the giving of a further direction.</ins></p></content></subsection></section><section eId="section-104E"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104E</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Report on certain reviews</ins></heading><subsection eId="section-104E-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Treasury have given a direction to the Payment Systems Regulator under section 104D(1) to carry out a review.</ins></p></content></subsection><subsection eId="section-104E-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104E-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether the requirements under review advance one or more of the payment systems objectives;</ins></p></content></level><level class="para1" eId="section-104E-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether and to what extent the requirements are functioning effectively and achieving their intended purpose;</ins></p></content></level><level class="para1" eId="section-104E-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any amendments need to be made to the requirements and, if so, what those amendments should be;</ins></p></content></level><level class="para1" eId="section-104E-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any requirements should be withdrawn (with or without replacement);</ins></p></content></level><level class="para1" eId="section-104E-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any other action should be taken and, if so, what that action should be.</ins></p></content></level></subsection><subsection eId="section-104E-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after receiving the report the Treasury must—</ins></p></intro><level class="para1" eId="section-104E-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the report, and</ins></p></content></level><level class="para1" eId="section-104E-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the report in such manner as the Treasury think fit.</ins></p></content></level></subsection><subsection eId="section-104E-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104F"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104F</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Power of Treasury to require the imposition of generally applicable requirements</ins></heading><subsection eId="section-104F-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104F-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Regulations under this section may—</ins></p></intro><level class="para1" eId="section-104F-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify matters that the requirement must cover;</ins></p></content></level><level class="para1" eId="section-104F-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify a period within which the requirement must be made.</ins></p></content></level></subsection><subsection eId="section-104F-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">But except so far as permitted by subsection (2), regulations under this section may not require the requirement to be imposed—</ins></p></intro><level class="para1" eId="section-104F-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in a specified form or with specified content, or</ins></p></content></level><level class="para1" eId="section-104F-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">to achieve or advance a specified outcome.</ins></p></content></level></subsection><subsection eId="section-104F-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104G"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104G</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Consultation with the FCA Cost Benefit Analysis Panel</ins></heading><subsection eId="section-104G-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104G-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of a cost benefit analysis under section 104(3)(a) or (6);</ins></p></content></level><level class="para1" eId="section-104G-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of its statement of policy under section 104H.</ins></p></content></level></subsection><subsection eId="section-104G-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104G-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The FCA Cost Benefit Analysis Panel must—</ins></p></intro><level class="para1" eId="section-104G-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3)(a) and (6), and</ins></p></content></level><level class="para1" eId="section-104G-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such review.</ins></p></content></level></subsection><subsection eId="section-104G-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must consider representations that are made to it by the FCA Cost Benefit Analysis Panel.</ins></p></content></subsection><subsection eId="section-104G-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must from time to time publish in such manner as it thinks fit responses to the representations.</ins></p></content></subsection><subsection eId="section-104G-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section references to the “</ins><term refersTo="#term-fca-cost-benefit-analysis-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">FCA Cost Benefit Analysis Panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” are to the panel established under section 138IA of FSMA 2000.</ins></p></content></subsection></section><section eId="section-104H"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104H</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy in relation to cost benefit analyses</ins></heading><subsection eId="section-104H-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104H-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104H-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the methodology adopted in preparing cost benefit analyses;</ins></p></content></level><level class="para1" eId="section-104H-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies;</ins></p></content></level><level class="para1" eId="section-104H-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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;</ins></p></content></level><level class="para1" eId="section-104H-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) are considered;</ins></p></content></level><level class="para1" eId="section-104H-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></level></subsection><subsection eId="section-104H-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may include whatever other information in relation to cost benefit analyses that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection><subsection eId="section-104H-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection><subsection eId="section-104H-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection><subsection eId="section-104H-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104I"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104I</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy on panel appointments</ins></heading><subsection eId="section-104I-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection><subsection eId="section-104I-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104I-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the process adopted for making appointments;</ins></p></content></level><level class="para1" eId="section-104I-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters considered in determining who is appointed.</ins></p></content></level></subsection><subsection eId="section-104I-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may provide whatever other information in relation to the making of appointments that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection><subsection eId="section-104I-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection><subsection eId="section-104I-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection><subsection eId="section-104I-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Before publishing a statement under this section the Payment Systems Regulator must—</ins></p></intro><level class="para1" eId="section-104I-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">consult the Treasury about the proposed statement, and</ins></p></content></level><level class="para1" eId="section-104I-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">have regard to any representations the Treasury make in response to the consultation.</ins></p></content></level></subsection><subsection eId="section-104I-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-105"><num>105</num><heading>Independent inquiries</heading><subsection eId="section-105-1"><num>(1)</num><content><p>Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.</p></content></subsection><subsection eId="section-105-2"><num>(2)</num><content><p><mod>In subsection (1), for “two” substitute <quotedText>“
three
”</quotedText>.</mod></p></content></subsection><subsection eId="section-105-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>The third case is where it appears to the Treasury that—</p></intro><level class="para1"><num>(a)</num><content><p>events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-105-4"><num>(4)</num><content><p><mod>In section 83(1) (interpretation), after the definition of “regulated activity” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“<term refersTo="#term-regulated-payment-system">regulated payment system</term>” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-106"><num>106</num><heading>Investigations into regulatory failure</heading><subsection eId="section-106-1"><num>(1)</num><content><p>Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.</p></content></subsection><subsection eId="section-106-2"><num>(2)</num><content><p><mod>After section 76 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>76A</num><heading>Duty of Payment Systems Regulator to investigate and report on possible regulatory failure</heading><subsection><num>(1)</num><intro><p>Subsection (3) applies where it appears to the Payment Systems Regulator that—</p></intro><level class="para1"><num>(a)</num><intro><p>events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—</p></intro><level class="para2"><num>(i)</num><content><p>participants in the payment system, or</p></content></level><level class="para2"><num>(ii)</num><content><p>those who use, or are likely to use, the services provided by the payment system, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.</p></content></subsection><subsection><num>(3)</num><content><p>The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-participant">participant</term>”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-106-5"><num>(3)</num><intro><p>In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—</p></intro><level class="para1" eId="section-106-5-a"><num>(a)</num><content><p><mod>in subsection (1)(a), for “either regulator” substitute <quotedText>“
a regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-106-5-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-5-c"><num>(c)</num><content><p><mod>the heading of that section becomes <quotedText>“
<b>Power of Treasury to require regulator to undertake investigation</b>
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-106-6"><num>(4)</num><content><p><mod>In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-7"><num>(5)</num><content><p><mod>In section 79 (conclusion of investigation), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-8"><num>(6)</num><content><p><mod>In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-9"><num>(7)</num><content><p><mod>In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>section 76A(4);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-106-10"><num>(8)</num><intro><p>In section 83(1) (interpretation)—</p></intro><level class="para1" eId="section-106-10-a"><num>(a)</num><content><p><mod>after the definition of “listed securities” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;</p></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-10-b"><num>(b)</num><content><p><mod>in the definition of “regulator”, for “or the PRA” substitute <quotedText>“
, the PRA or the Payment Systems Regulator
”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-107"><num>107</num><heading>Competition scrutiny</heading><subsection eId="section-107-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-107-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><intro><p>the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—</p></intro><level class="para2" eId="section-107-2-b-i"><num>(i)</num><content><p>any general directions given under section 54;</p></content></level><level class="para2" eId="section-107-2-b-ii"><num>(ii)</num><content><p>any generally-imposed requirements under section 55;</p></content></level><level class="para2" eId="section-107-2-b-iii"><num>(iii)</num><content><p>any guidance given under section 96.</p></content></level></level></subsection></section><section eId="section-107A"><num><ins class="first" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"><noteRef uk:name="commentary" href="#key-0a4fd89b480e5fd27184d9c4fb7743ef" class="commentary"/>107A</ins></num><heading><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">International trade obligations</ins></heading><subsection eId="section-107A-1"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection><subsection eId="section-107A-2"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(2)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The Payment Systems Regulator must give written notice to the Treasury of the proposed action before proceeding to take it.</ins></p></content></subsection><subsection eId="section-107A-3"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(3)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (2) applies only if a duty to consult applies in respect of the taking of the relevant action.</ins></p></content></subsection><subsection eId="section-107A-4"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(4)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection </ins><ref href="#"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></ref><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"> the Payment Systems Regulator proposes to take a “relevant action” if it—</ins></p></intro><level class="para1" eId="section-107A-4-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to impose a generally applicable requirement, or</ins></p></content></level><level class="para1" eId="section-107A-4-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to make changes to its general policies and practices.</ins></p></content></level></subsection><subsection eId="section-107A-5"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(5)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection (3) a duty to consult applies in respect of a relevant action if—</ins></p></intro><level class="para1" eId="section-107A-5-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or</ins></p></content></level><level class="para1" eId="section-107A-5-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies.</ins></p></content></level></subsection><subsection eId="section-107A-6"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(6)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The requirement imposed by subsection (2) must be carried out before the duty to consult in respect of the relevant action is carried out.</ins></p></content></subsection><subsection eId="section-107A-7"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(7)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (8) applies in a case where a notice under subsection (2) is not given because of subsection (3).</ins></p></content></subsection><subsection eId="section-107A-8"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(8)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection><subsection eId="section-107A-9"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(9)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">In this section “</ins><term refersTo="#term-international-trade-obligation"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">international trade obligation</ins></term><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">” means an obligation of the United Kingdom that relates to financial services or markets under—</ins></p></intro><level class="para1" eId="section-107A-9-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">a free trade agreement, as defined by section 5(1) of the Trade Act 2021, or</ins></p></content></level><level class="para1" eId="section-107A-9-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.</ins></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-miscellaneous-and-supplemental"><heading><i>Miscellaneous and supplemental</i></heading><section eId="section-108"><num>108</num><heading>Relationship with Part 8 of the Payment Services Regulations <ins class="substitution first last" ukl:ChangeId="key-153db09439e920bbc318f22f4122013f-1521173431383" ukl:CommentaryRef="key-153db09439e920bbc318f22f4122013f"><noteRef uk:name="commentary" href="#key-153db09439e920bbc318f22f4122013f" class="commentary"/>2017</ins></heading><subsection eId="section-108-1"><num>(1)</num><content><p>The Payment Systems Regulator may not exercise any power under <ins class="substitution first last" ukl:ChangeId="key-0615a37a4b7e0fbdf485cebbd384c22f-1498403799720" ukl:CommentaryRef="key-0615a37a4b7e0fbdf485cebbd384c22f"><noteRef uk:name="commentary" href="#key-0615a37a4b7e0fbdf485cebbd384c22f" class="commentary"/>sections 54 to 58</ins> for the purposes of enabling a <ins class="substitution first last" ukl:ChangeId="key-0654575c003a00c83db1bfa326215559-1521173572792" ukl:CommentaryRef="key-0654575c003a00c83db1bfa326215559"><noteRef uk:name="commentary" href="#key-0654575c003a00c83db1bfa326215559" class="commentary"/>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.</ins></p></content></subsection><subsection eId="section-108-2"><num><noteRef href="#key-9e93ea0248cce04e548d494e56c6c12a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(2)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection></section><section eId="section-109"><num>109</num><heading>Exemption from liability in damages for FCA and PRA</heading><subsection eId="section-109-1"><num>(1)</num><content><p><mod>In paragraph 25 of Schedule 1ZA to FSMA 2000 (FCA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-109-2"><num>(2)</num><content><p><mod>In paragraph 33 of Schedule 1ZB to FSMA 2000 (PRA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-109-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-110"><num>110</num><heading>Interpretation of Part</heading><subsection eId="section-110-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” has the meaning given by section 76(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” has the meaning given by section 76(7);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” has the meaning given by section 71;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designation-order" eId="term-designation-order">designation order</term>” has the meaning given by section 43;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 41(2A);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset-exchange-provider"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset exchange provider</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 182(5B) of the Banking Act 2009;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-direct-access" eId="term-direct-access">direct access</term>”, in relation to a payment system, is to be read in accordance with section 42(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-document" eId="term-document">document</term>” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form or in a form from which it can readily be produced in visible and legible form;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>” has the meaning given by section 54(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” has the meaning given by section 96(3);</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e"><noteRef uk:name="commentary" href="#key-e56b28736fdd2a607fb787fcf86bb81e" class="commentary"/>“</ins><term refersTo="#term-generally-applicable-requirement"><ins ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">generally applicable requirement</ins></term><ins class="last" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">” has the meaning given by section 104(1);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>” has the meaning given by section 55(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">infrastructure provider</term>”, in relation to a payment system, has the meaning given by section 42(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a payment system, has the meaning given by section 42(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-participant" eId="term-participant">participant</term>”, in relation to a payment system, has the meaning given by section 42 (and references to participation in a payment system are to be read in accordance with that section);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">payment service provider</term>”, in relation to a payment system, has the meaning given by section 42(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” has the meaning given by section 41;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-62e88238ec0b70822df799d8477bf602" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-1ef995254441eb52226a075fde25cef5-1505812360373" ukl:CommentaryRef="key-1ef995254441eb52226a075fde25cef5"><noteRef uk:name="commentary" href="#key-1ef995254441eb52226a075fde25cef5" class="commentary"/>a</ins> payment system (within the meaning of Part 5 of the Banking Act 2009) specified as a recognised system for the purposes of that Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-payment-system" eId="term-regulated-payment-system">regulated payment system</term>” means a payment system designated as a regulated payment system by a designation order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-uk-financial-system" eId="term-the-uk-financial-system">the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system</term>” has the meaning given by section 1I of FSMA 2000.</p></content></hcontainer></subsection><subsection eId="section-110-2"><num>(2)</num><content><p>References in this Part to the Payment Systems Regulator's payment systems objectives are to be read in accordance with section 49(2).</p></content></subsection><subsection eId="section-110-3"><num>(3)</num><content><p>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.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-overview"><heading><i>Overview</i></heading><section eId="section-39"><num>39</num><heading>Overview</heading><subsection eId="section-39-1"><num>(1)</num><content><p>This Part contains provision for the establishment of a new body (the “Payment Systems Regulator”) to exercise functions in relation to payment systems.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>Section 40 provides for the establishment of the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><p>Sections 41 and 42 contain definitions of “payment system” and related terms.</p></content></subsection><subsection eId="section-39-4"><num>(4)</num><content><p>Sections 43 to 48 make provision about designating a payment system as a regulated payment system.</p></content></subsection><subsection eId="section-39-5"><num>(5)</num><content><p>Sections 49 to 53 contain provision about the general duties of the Payment Systems Regulator under this Part.</p></content></subsection><subsection eId="section-39-6"><num>(6)</num><content><p>Sections 54 to 67 confer various regulatory and competition functions on the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-7"><num>(7)</num><content><p>Sections 68 to 70 contain provision about the making of complaints to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-8"><num>(8)</num><content><p>Sections 71 to 80 contain provision about enforcement and appeals.</p></content></subsection><subsection eId="section-39-9"><num>(9)</num><content><p>Sections 81 to 95 contain information and investigation powers and provision about the disclosure of information.</p></content></subsection><subsection eId="section-39-10"><num>(10)</num><content><p>Sections <ins class="substitution first last" ukl:ChangeId="key-e36ef45e3c9db0e11597d8f5e96ac0fb-1544460530724" ukl:CommentaryRef="key-e36ef45e3c9db0e11597d8f5e96ac0fb"><noteRef uk:name="commentary" href="#key-e36ef45e3c9db0e11597d8f5e96ac0fb" class="commentary"/>96 to 97D</ins> contain supplementary powers.</p></content></subsection><subsection eId="section-39-11"><num>(11)</num><content><p>Sections 98 to 102 contain provision about the Payment Systems Regulator's relationship with other regulators.</p></content></subsection><subsection eId="section-39-11A"><num><ins class="first" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294"><noteRef uk:name="commentary" href="#key-d02015fa726bef54a0cf14e800daa294" class="commentary"/>(11A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294">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.</ins></p></content></subsection><subsection eId="section-39-12"><num>(12)</num><content><p>Sections 103 to <ins class="substitution first last" ukl:ChangeId="key-130c651c42a602f22cdc45049a6108f3-1706700881594" ukl:CommentaryRef="key-130c651c42a602f22cdc45049a6108f3"><noteRef uk:name="commentary" href="#key-130c651c42a602f22cdc45049a6108f3" class="commentary"/>107A</ins> contain provision about consultation, accountability and oversight.</p></content></subsection><subsection eId="section-39-13"><num>(13)</num><content><p>Sections 108 to 110 contain miscellaneous and supplemental provision.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-39"><num>39</num><heading>Overview</heading><subsection eId="section-39-1"><num>(1)</num><content><p>This Part contains provision for the establishment of a new body (the “Payment Systems Regulator”) to exercise functions in relation to payment systems.</p></content></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>Section 40 provides for the establishment of the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><p>Sections 41 and 42 contain definitions of “payment system” and related terms.</p></content></subsection><subsection eId="section-39-4"><num>(4)</num><content><p>Sections 43 to 48 make provision about designating a payment system as a regulated payment system.</p></content></subsection><subsection eId="section-39-5"><num>(5)</num><content><p>Sections 49 to 53 contain provision about the general duties of the Payment Systems Regulator under this Part.</p></content></subsection><subsection eId="section-39-6"><num>(6)</num><content><p>Sections 54 to 67 confer various regulatory and competition functions on the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-7"><num>(7)</num><content><p>Sections 68 to 70 contain provision about the making of complaints to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-39-8"><num>(8)</num><content><p>Sections 71 to 80 contain provision about enforcement and appeals.</p></content></subsection><subsection eId="section-39-9"><num>(9)</num><content><p>Sections 81 to 95 contain information and investigation powers and provision about the disclosure of information.</p></content></subsection><subsection eId="section-39-10"><num>(10)</num><content><p>Sections <ins class="substitution first last" ukl:ChangeId="key-e36ef45e3c9db0e11597d8f5e96ac0fb-1544460530724" ukl:CommentaryRef="key-e36ef45e3c9db0e11597d8f5e96ac0fb"><noteRef uk:name="commentary" href="#key-e36ef45e3c9db0e11597d8f5e96ac0fb" class="commentary"/>96 to 97D</ins> contain supplementary powers.</p></content></subsection><subsection eId="section-39-11"><num>(11)</num><content><p>Sections 98 to 102 contain provision about the Payment Systems Regulator's relationship with other regulators.</p></content></subsection><subsection eId="section-39-11A"><num><ins class="first" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294"><noteRef uk:name="commentary" href="#key-d02015fa726bef54a0cf14e800daa294" class="commentary"/>(11A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294">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.</ins></p></content></subsection><subsection eId="section-39-12"><num>(12)</num><content><p>Sections 103 to <ins class="substitution first last" ukl:ChangeId="key-130c651c42a602f22cdc45049a6108f3-1706700881594" ukl:CommentaryRef="key-130c651c42a602f22cdc45049a6108f3"><noteRef uk:name="commentary" href="#key-130c651c42a602f22cdc45049a6108f3" class="commentary"/>107A</ins> contain provision about consultation, accountability and oversight.</p></content></subsection><subsection eId="section-39-13"><num>(13)</num><content><p>Sections 108 to 110 contain miscellaneous and supplemental provision.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-1"><num>(1)</num><content><p>This Part contains provision for the establishment of a new body (the “Payment Systems Regulator”) to exercise functions in relation to payment systems.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-2"><num>(2)</num><content><p>Section 40 provides for the establishment of the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-3"><num>(3)</num><content><p>Sections 41 and 42 contain definitions of “payment system” and related terms.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-4"><num>(4)</num><content><p>Sections 43 to 48 make provision about designating a payment system as a regulated payment system.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-5"><num>(5)</num><content><p>Sections 49 to 53 contain provision about the general duties of the Payment Systems Regulator under this Part.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-6"><num>(6)</num><content><p>Sections 54 to 67 confer various regulatory and competition functions on the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-7"><num>(7)</num><content><p>Sections 68 to 70 contain provision about the making of complaints to the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-8"><num>(8)</num><content><p>Sections 71 to 80 contain provision about enforcement and appeals.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-9"><num>(9)</num><content><p>Sections 81 to 95 contain information and investigation powers and provision about the disclosure of information.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-39-10"><num>(10)</num><content><p>Sections <ins class="substitution first last" ukl:ChangeId="key-e36ef45e3c9db0e11597d8f5e96ac0fb-1544460530724" ukl:CommentaryRef="key-e36ef45e3c9db0e11597d8f5e96ac0fb"><noteRef uk:name="commentary" href="#key-e36ef45e3c9db0e11597d8f5e96ac0fb" class="commentary"/>96 to 97D</ins> contain supplementary powers.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-11"><num>(11)</num><content><p>Sections 98 to 102 contain provision about the Payment Systems Regulator's relationship with other regulators.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-39-12"><num>(12)</num><content><p>Sections 103 to <ins class="substitution first last" ukl:ChangeId="key-130c651c42a602f22cdc45049a6108f3-1706700881594" ukl:CommentaryRef="key-130c651c42a602f22cdc45049a6108f3"><noteRef uk:name="commentary" href="#key-130c651c42a602f22cdc45049a6108f3" class="commentary"/>107A</ins> contain provision about consultation, accountability and oversight.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-39-11A"><num><ins class="first" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294"><noteRef uk:name="commentary" href="#key-d02015fa726bef54a0cf14e800daa294" class="commentary"/>(11A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d02015fa726bef54a0cf14e800daa294-1695297240244" ukl:CommentaryRef="key-d02015fa726bef54a0cf14e800daa294">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-13"><num>(13)</num><content><p>Sections 108 to 110 contain miscellaneous and supplemental provision.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-the-payment-systems-regulator"><heading><i>The Payment Systems Regulator</i></heading><section eId="section-40"><num>40</num><heading>The Payment Systems Regulator</heading><subsection eId="section-40-1"><num>(1)</num><content><p>The FCA must establish a body corporate to exercise the functions conferred on the body by or under this Part.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>The body established under subsection (1) is referred to in this Part as the Payment Systems Regulator.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>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).</p></content></subsection><subsection eId="section-40-4"><num>(4)</num><intro><p>In complying with the duty imposed by subsection (3) the FCA may, in particular—</p></intro><level class="para1" eId="section-40-4-a"><num>(a)</num><content><p>provide staff to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-40-4-b"><num>(b)</num><content><p>provide services to the Payment Systems Regulator which the FCA considers would facilitate the exercise of any of those functions.</p></content></level></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>Schedule 4 (which contains further provision about the Payment Systems Regulator) has effect.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40"><num>40</num><heading>The Payment Systems Regulator</heading><subsection eId="section-40-1"><num>(1)</num><content><p>The FCA must establish a body corporate to exercise the functions conferred on the body by or under this Part.</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>The body established under subsection (1) is referred to in this Part as the Payment Systems Regulator.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>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).</p></content></subsection><subsection eId="section-40-4"><num>(4)</num><intro><p>In complying with the duty imposed by subsection (3) the FCA may, in particular—</p></intro><level class="para1" eId="section-40-4-a"><num>(a)</num><content><p>provide staff to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-40-4-b"><num>(b)</num><content><p>provide services to the Payment Systems Regulator which the FCA considers would facilitate the exercise of any of those functions.</p></content></level></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>Schedule 4 (which contains further provision about the Payment Systems Regulator) has effect.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-1"><num>(1)</num><content><p>The FCA must establish a body corporate to exercise the functions conferred on the body by or under this Part.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-2"><num>(2)</num><content><p>The body established under subsection (1) is referred to in this Part as the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-3"><num>(3)</num><content><p>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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-4"><num>(4)</num><intro><p>In complying with the duty imposed by subsection (3) the FCA may, in particular—</p></intro><level class="para1" eId="section-40-4-a"><num>(a)</num><content><p>provide staff to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-40-4-b"><num>(b)</num><content><p>provide services to the Payment Systems Regulator which the FCA considers would facilitate the exercise of any of those functions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-4-a"><num>(a)</num><content><p>provide staff to the Payment Systems Regulator, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-4-b"><num>(b)</num><content><p>provide services to the Payment Systems Regulator which the FCA considers would facilitate the exercise of any of those functions.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-5"><num>(5)</num><content><p>Schedule 4 (which contains further provision about the Payment Systems Regulator) has effect.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-payment-system-etc"><heading><i>
“Payment system” <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><section eId="section-41"><num>41</num><heading>Meaning of “payment system”</heading><subsection eId="section-41-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” 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.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><intro><p>But “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” does not include—</p></intro><level class="para1" eId="section-41-2-a"><num>(a)</num><content><p>any arrangements for the physical movement of cash;</p></content></level><level class="para1" eId="section-41-2-b"><num>(b)</num><content><p>a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;</p></content></level><level class="para1" eId="section-41-2-c"><num>(c)</num><content><p>a securities settlement system operated by a <ins class="substitution first last" ukl:ChangeId="key-64986c54a811932a16e7fddfaa7cd614-1518179924902" ukl:CommentaryRef="key-64986c54a811932a16e7fddfaa7cd614"><noteRef uk:name="commentary" href="#key-64986c54a811932a16e7fddfaa7cd614" class="commentary"/>recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-d"><num>(d)</num><content><p>a system operated by a recognised clearing house <ins class="first last" ukl:ChangeId="key-fa4f1cc985728ce993080dfc93d09d41-1560270400023" ukl:CommentaryRef="key-fa4f1cc985728ce993080dfc93d09d41"><noteRef uk:name="commentary" href="#key-fa4f1cc985728ce993080dfc93d09d41" class="commentary"/>or a recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-e"><num>(e)</num><content><p>any other system whose primary purpose is not that of enabling persons to transfer funds.</p></content></level></subsection><subsection eId="section-41-2A"><num><ins class="first" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2"><noteRef uk:name="commentary" href="#key-961d895e5b8eae5c1b275f8062be28d2" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this Part—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-funds"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">funds</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes digital settlement assets (except in section 41(2)(e));</ins></p></content></hcontainer><hcontainer name="definition"><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” means a digital representation of value or rights, whether or not cryptographically secured, that—</ins></p></intro><level class="para1"><num>(a)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be used for the settlement of payment obligations,</ins></p></content></level><level class="para1"><num>(b)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be transferred, stored or traded electronically, and</ins></p></content></level><level class="para1"><num>(c)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">uses technology supporting the recording or storage of data (which may include distributed ledger technology).</ins></p></content></level></hcontainer></subsection><subsection eId="section-41-2B"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2B)</ins></num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this section, “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes a right to, or interest in, a digital settlement asset.</ins></p></content></subsection><subsection eId="section-41-2C"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">The Treasury may by regulations amend the definition of “digital settlement asset” in subsection (2A).</ins></p></content></subsection><subsection eId="section-41-3"><num>(3)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-c702e3b1ca148d9f0b30890127e8fe57-1518179971810" ukl:CommentaryRef="key-c702e3b1ca148d9f0b30890127e8fe57"><noteRef uk:name="commentary" href="#key-c702e3b1ca148d9f0b30890127e8fe57" class="commentary"/>“recognised CSD” has the meaning given by section 285(1) of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-clearing-house" eId="term-recognised-clearing-house">recognised clearing house</term>” has the meaning given by section 285(1) of FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer></subsection><subsection eId="section-41-4"><num>(4)</num><intro><p>The Treasury may by order amend this section so as to—</p></intro><level class="para1" eId="section-41-4-a"><num>(a)</num><content><p>add descriptions of systems or arrangements that are not to be regarded as payment systems, or</p></content></level><level class="para1" eId="section-41-4-b"><num>(b)</num><content><p>vary or remove any such description.</p></content></level></subsection></section><section eId="section-42"><num>42</num><heading>Participants in payment systems <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-42-1"><num>(1)</num><content><p>This section applies for the purposes of this Part.</p></content></subsection><subsection eId="section-42-2"><num>(2)</num><intro><p>The following persons are “participants” in a payment system—</p></intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content><p>the operator of the payment system (see subsection (3));</p></content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content><p>any infrastructure provider (see subsection (4));</p></content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content><p>any payment service provider (see <ins class="substitution first last" ukl:ChangeId="key-e66758a653407b928c4b84cbf7c2c31e-1695297510804" ukl:CommentaryRef="key-e66758a653407b928c4b84cbf7c2c31e"><noteRef uk:name="commentary" href="#key-e66758a653407b928c4b84cbf7c2c31e" class="commentary"/>subsections (5) and (5A)</ins>).</p></content></level><wrapUp><p>(But see also subsection (8).)</p></wrapUp></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>“<term refersTo="#term-operator" eId="term-operator">Operator</term>”, 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.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">Infrastructure provider</term>”, 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.</p></content></subsection><subsection eId="section-42-5"><num>(5)</num><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">Payment service provider</term>”, 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.</p></content></subsection><subsection eId="section-42-5A"><num><ins class="first" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca"><noteRef uk:name="commentary" href="#key-1a64fdd54b07a57e48a81b46d3051bca" class="commentary"/>(5A)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">“</ins><term refersTo="#term-payment-service-provider"><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">Payment service provider</ins></term><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">” in relation to a payment system that includes arrangements using digital settlement assets means—</ins></p></intro><level class="para1" eId="section-42-5A-a"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(a)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person responsible for managing the issuance and redemption of digital settlement assets;</ins></p></content></level><level class="para1" eId="section-42-5A-b"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(b)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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);</ins></p></content></level><level class="para1" eId="section-42-5A-c"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(c)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a digital settlement asset exchange provider;</ins></p></content></level><level class="para1" eId="section-42-5A-d"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(d)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person who—</ins></p></intro><level class="para2" eId="section-42-5A-d-i"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(i)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">sets rules, standards, or conditions of access or participation in relation to the system, or</ins></p></content></level><level class="para2" eId="section-42-5A-d-ii"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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.</ins></p></content></level></level></subsection><subsection eId="section-42-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-42-7"><num>(7)</num><intro><p>Any reference to participation in a payment system is to be read in accordance with this section, and in particular—</p></intro><level class="para1" eId="section-42-7-a"><num>(a)</num><content><p>in the case of an operator of a payment system, includes a reference to developing the system, and</p></content></level><level class="para1" eId="section-42-7-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-42-8"><num>(8)</num><content><p>The Bank of England is not to be regarded as a participant of any kind in any payment system.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-41"><num>41</num><heading>Meaning of “payment system”</heading><subsection eId="section-41-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” 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.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><intro><p>But “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” does not include—</p></intro><level class="para1" eId="section-41-2-a"><num>(a)</num><content><p>any arrangements for the physical movement of cash;</p></content></level><level class="para1" eId="section-41-2-b"><num>(b)</num><content><p>a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;</p></content></level><level class="para1" eId="section-41-2-c"><num>(c)</num><content><p>a securities settlement system operated by a <ins class="substitution first last" ukl:ChangeId="key-64986c54a811932a16e7fddfaa7cd614-1518179924902" ukl:CommentaryRef="key-64986c54a811932a16e7fddfaa7cd614"><noteRef uk:name="commentary" href="#key-64986c54a811932a16e7fddfaa7cd614" class="commentary"/>recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-d"><num>(d)</num><content><p>a system operated by a recognised clearing house <ins class="first last" ukl:ChangeId="key-fa4f1cc985728ce993080dfc93d09d41-1560270400023" ukl:CommentaryRef="key-fa4f1cc985728ce993080dfc93d09d41"><noteRef uk:name="commentary" href="#key-fa4f1cc985728ce993080dfc93d09d41" class="commentary"/>or a recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-e"><num>(e)</num><content><p>any other system whose primary purpose is not that of enabling persons to transfer funds.</p></content></level></subsection><subsection eId="section-41-2A"><num><ins class="first" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2"><noteRef uk:name="commentary" href="#key-961d895e5b8eae5c1b275f8062be28d2" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this Part—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-funds"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">funds</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes digital settlement assets (except in section 41(2)(e));</ins></p></content></hcontainer><hcontainer name="definition"><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” means a digital representation of value or rights, whether or not cryptographically secured, that—</ins></p></intro><level class="para1"><num>(a)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be used for the settlement of payment obligations,</ins></p></content></level><level class="para1"><num>(b)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be transferred, stored or traded electronically, and</ins></p></content></level><level class="para1"><num>(c)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">uses technology supporting the recording or storage of data (which may include distributed ledger technology).</ins></p></content></level></hcontainer></subsection><subsection eId="section-41-2B"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2B)</ins></num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this section, “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes a right to, or interest in, a digital settlement asset.</ins></p></content></subsection><subsection eId="section-41-2C"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">The Treasury may by regulations amend the definition of “digital settlement asset” in subsection (2A).</ins></p></content></subsection><subsection eId="section-41-3"><num>(3)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-c702e3b1ca148d9f0b30890127e8fe57-1518179971810" ukl:CommentaryRef="key-c702e3b1ca148d9f0b30890127e8fe57"><noteRef uk:name="commentary" href="#key-c702e3b1ca148d9f0b30890127e8fe57" class="commentary"/>“recognised CSD” has the meaning given by section 285(1) of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-clearing-house" eId="term-recognised-clearing-house">recognised clearing house</term>” has the meaning given by section 285(1) of FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer></subsection><subsection eId="section-41-4"><num>(4)</num><intro><p>The Treasury may by order amend this section so as to—</p></intro><level class="para1" eId="section-41-4-a"><num>(a)</num><content><p>add descriptions of systems or arrangements that are not to be regarded as payment systems, or</p></content></level><level class="para1" eId="section-41-4-b"><num>(b)</num><content><p>vary or remove any such description.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” 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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-41-2"><num>(2)</num><intro><p>But “<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” does not include—</p></intro><level class="para1" eId="section-41-2-a"><num>(a)</num><content><p>any arrangements for the physical movement of cash;</p></content></level><level class="para1" eId="section-41-2-b"><num>(b)</num><content><p>a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;</p></content></level><level class="para1" eId="section-41-2-c"><num>(c)</num><content><p>a securities settlement system operated by a <ins class="substitution first last" ukl:ChangeId="key-64986c54a811932a16e7fddfaa7cd614-1518179924902" ukl:CommentaryRef="key-64986c54a811932a16e7fddfaa7cd614"><noteRef uk:name="commentary" href="#key-64986c54a811932a16e7fddfaa7cd614" class="commentary"/>recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-d"><num>(d)</num><content><p>a system operated by a recognised clearing house <ins class="first last" ukl:ChangeId="key-fa4f1cc985728ce993080dfc93d09d41-1560270400023" ukl:CommentaryRef="key-fa4f1cc985728ce993080dfc93d09d41"><noteRef uk:name="commentary" href="#key-fa4f1cc985728ce993080dfc93d09d41" class="commentary"/>or a recognised CSD</ins>;</p></content></level><level class="para1" eId="section-41-2-e"><num>(e)</num><content><p>any other system whose primary purpose is not that of enabling persons to transfer funds.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-2-a"><num>(a)</num><content><p>any arrangements for the physical movement of cash;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-2-b"><num>(b)</num><content><p>a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-41-2-c"><num>(c)</num><content><p>a securities settlement system operated by a <ins class="substitution first last" ukl:ChangeId="key-64986c54a811932a16e7fddfaa7cd614-1518179924902" ukl:CommentaryRef="key-64986c54a811932a16e7fddfaa7cd614"><noteRef uk:name="commentary" href="#key-64986c54a811932a16e7fddfaa7cd614" class="commentary"/>recognised CSD</ins>;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-41-2-d"><num>(d)</num><content><p>a system operated by a recognised clearing house <ins class="first last" ukl:ChangeId="key-fa4f1cc985728ce993080dfc93d09d41-1560270400023" ukl:CommentaryRef="key-fa4f1cc985728ce993080dfc93d09d41"><noteRef uk:name="commentary" href="#key-fa4f1cc985728ce993080dfc93d09d41" class="commentary"/>or a recognised CSD</ins>;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-2-e"><num>(e)</num><content><p>any other system whose primary purpose is not that of enabling persons to transfer funds.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-41-3"><num>(3)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-c702e3b1ca148d9f0b30890127e8fe57-1518179971810" ukl:CommentaryRef="key-c702e3b1ca148d9f0b30890127e8fe57"><noteRef uk:name="commentary" href="#key-c702e3b1ca148d9f0b30890127e8fe57" class="commentary"/>“recognised CSD” has the meaning given by section 285(1) of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-clearing-house" eId="term-recognised-clearing-house">recognised clearing house</term>” has the meaning given by section 285(1) of FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-41-2A"><num><ins class="first" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2"><noteRef uk:name="commentary" href="#key-961d895e5b8eae5c1b275f8062be28d2" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this Part—</ins></p></intro><hcontainer name="definition"><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-funds"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">funds</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes digital settlement assets (except in section 41(2)(e));</ins></p></content></hcontainer><hcontainer name="definition"><intro><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” means a digital representation of value or rights, whether or not cryptographically secured, that—</ins></p></intro><level class="para1"><num>(a)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be used for the settlement of payment obligations,</ins></p></content></level><level class="para1"><num>(b)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be transferred, stored or traded electronically, and</ins></p></content></level><level class="para1"><num>(c)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">uses technology supporting the recording or storage of data (which may include distributed ledger technology).</ins></p></content></level></hcontainer></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-4"><num>(4)</num><intro><p>The Treasury may by order amend this section so as to—</p></intro><level class="para1" eId="section-41-4-a"><num>(a)</num><content><p>add descriptions of systems or arrangements that are not to be regarded as payment systems, or</p></content></level><level class="para1" eId="section-41-4-b"><num>(b)</num><content><p>vary or remove any such description.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-4-a"><num>(a)</num><content><p>add descriptions of systems or arrangements that are not to be regarded as payment systems, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-4-b"><num>(b)</num><content><p>vary or remove any such description.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-41-2B"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2B)</ins></num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">In this section, “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">digital settlement asset</ins></term><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">” includes a right to, or interest in, a digital settlement asset.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-41-2C"><num><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">(2C)</ins></num><content><p><ins class="last" ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">The Treasury may by regulations amend the definition of “digital settlement asset” in subsection (2A).</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-42"><num>42</num><heading>Participants in payment systems <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-42-1"><num>(1)</num><content><p>This section applies for the purposes of this Part.</p></content></subsection><subsection eId="section-42-2"><num>(2)</num><intro><p>The following persons are “participants” in a payment system—</p></intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content><p>the operator of the payment system (see subsection (3));</p></content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content><p>any infrastructure provider (see subsection (4));</p></content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content><p>any payment service provider (see <ins class="substitution first last" ukl:ChangeId="key-e66758a653407b928c4b84cbf7c2c31e-1695297510804" ukl:CommentaryRef="key-e66758a653407b928c4b84cbf7c2c31e"><noteRef uk:name="commentary" href="#key-e66758a653407b928c4b84cbf7c2c31e" class="commentary"/>subsections (5) and (5A)</ins>).</p></content></level><wrapUp><p>(But see also subsection (8).)</p></wrapUp></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>“<term refersTo="#term-operator" eId="term-operator">Operator</term>”, 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.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">Infrastructure provider</term>”, 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.</p></content></subsection><subsection eId="section-42-5"><num>(5)</num><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">Payment service provider</term>”, 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.</p></content></subsection><subsection eId="section-42-5A"><num><ins class="first" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca"><noteRef uk:name="commentary" href="#key-1a64fdd54b07a57e48a81b46d3051bca" class="commentary"/>(5A)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">“</ins><term refersTo="#term-payment-service-provider"><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">Payment service provider</ins></term><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">” in relation to a payment system that includes arrangements using digital settlement assets means—</ins></p></intro><level class="para1" eId="section-42-5A-a"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(a)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person responsible for managing the issuance and redemption of digital settlement assets;</ins></p></content></level><level class="para1" eId="section-42-5A-b"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(b)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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);</ins></p></content></level><level class="para1" eId="section-42-5A-c"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(c)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a digital settlement asset exchange provider;</ins></p></content></level><level class="para1" eId="section-42-5A-d"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(d)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person who—</ins></p></intro><level class="para2" eId="section-42-5A-d-i"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(i)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">sets rules, standards, or conditions of access or participation in relation to the system, or</ins></p></content></level><level class="para2" eId="section-42-5A-d-ii"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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.</ins></p></content></level></level></subsection><subsection eId="section-42-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-42-7"><num>(7)</num><intro><p>Any reference to participation in a payment system is to be read in accordance with this section, and in particular—</p></intro><level class="para1" eId="section-42-7-a"><num>(a)</num><content><p>in the case of an operator of a payment system, includes a reference to developing the system, and</p></content></level><level class="para1" eId="section-42-7-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-42-8"><num>(8)</num><content><p>The Bank of England is not to be regarded as a participant of any kind in any payment system.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-1"><num>(1)</num><content><p>This section applies for the purposes of this Part.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-42-2"><num>(2)</num><intro><p>The following persons are “participants” in a payment system—</p></intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content><p>the operator of the payment system (see subsection (3));</p></content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content><p>any infrastructure provider (see subsection (4));</p></content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content><p>any payment service provider (see <ins class="substitution first last" ukl:ChangeId="key-e66758a653407b928c4b84cbf7c2c31e-1695297510804" ukl:CommentaryRef="key-e66758a653407b928c4b84cbf7c2c31e"><noteRef uk:name="commentary" href="#key-e66758a653407b928c4b84cbf7c2c31e" class="commentary"/>subsections (5) and (5A)</ins>).</p></content></level><wrapUp><p>(But see also subsection (8).)</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-a"><num>(a)</num><content><p>the operator of the payment system (see subsection (3));</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-b"><num>(b)</num><content><p>any infrastructure provider (see subsection (4));</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-42-2-c"><num>(c)</num><content><p>any payment service provider (see <ins class="substitution first last" ukl:ChangeId="key-e66758a653407b928c4b84cbf7c2c31e-1695297510804" ukl:CommentaryRef="key-e66758a653407b928c4b84cbf7c2c31e"><noteRef uk:name="commentary" href="#key-e66758a653407b928c4b84cbf7c2c31e" class="commentary"/>subsections (5) and (5A)</ins>).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-3"><num>(3)</num><content><p>“<term refersTo="#term-operator" eId="term-operator">Operator</term>”, 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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-4"><num>(4)</num><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">Infrastructure provider</term>”, 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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-5"><num>(5)</num><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">Payment service provider</term>”, 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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-42-5A"><num><ins class="first" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca"><noteRef uk:name="commentary" href="#key-1a64fdd54b07a57e48a81b46d3051bca" class="commentary"/>(5A)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">“</ins><term refersTo="#term-payment-service-provider"><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">Payment service provider</ins></term><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">” in relation to a payment system that includes arrangements using digital settlement assets means—</ins></p></intro><level class="para1" eId="section-42-5A-a"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(a)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person responsible for managing the issuance and redemption of digital settlement assets;</ins></p></content></level><level class="para1" eId="section-42-5A-b"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(b)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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);</ins></p></content></level><level class="para1" eId="section-42-5A-c"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(c)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a digital settlement asset exchange provider;</ins></p></content></level><level class="para1" eId="section-42-5A-d"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(d)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person who—</ins></p></intro><level class="para2" eId="section-42-5A-d-i"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(i)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">sets rules, standards, or conditions of access or participation in relation to the system, or</ins></p></content></level><level class="para2" eId="section-42-5A-d-ii"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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.</ins></p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-42-5A-a"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(a)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person responsible for managing the issuance and redemption of digital settlement assets;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-42-5A-b"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(b)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-42-5A-c"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(c)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a digital settlement asset exchange provider;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-42-5A-d"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(d)</ins></num><intro><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">a person who—</ins></p></intro><level class="para2" eId="section-42-5A-d-i"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(i)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">sets rules, standards, or conditions of access or participation in relation to the system, or</ins></p></content></level><level class="para2" eId="section-42-5A-d-ii"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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.</ins></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-42-5A-d-i"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(i)</ins></num><content><p><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">sets rules, standards, or conditions of access or participation in relation to the system, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-42-5A-d-ii"><num><ins ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">(ii)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1a64fdd54b07a57e48a81b46d3051bca-1695297488058" ukl:CommentaryRef="key-1a64fdd54b07a57e48a81b46d3051bca">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.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-7"><num>(7)</num><intro><p>Any reference to participation in a payment system is to be read in accordance with this section, and in particular—</p></intro><level class="para1" eId="section-42-7-a"><num>(a)</num><content><p>in the case of an operator of a payment system, includes a reference to developing the system, and</p></content></level><level class="para1" eId="section-42-7-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-7-a"><num>(a)</num><content><p>in the case of an operator of a payment system, includes a reference to developing the system, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-7-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-8"><num>(8)</num><content><p>The Bank of England is not to be regarded as a participant of any kind in any payment system.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-designation-as-a-regulated-payment-system"><heading><i>Designation as a regulated payment system</i></heading><section eId="section-43"><num>43</num><heading>Designation orders</heading><subsection eId="section-43-1"><num>(1)</num><content><p>The Treasury may by order (a “designation order”) designate a payment system as a regulated payment system for the purposes of this Part.</p></content></subsection><subsection eId="section-43-2"><num>(2)</num><content><p>A designation order must specify in as much detail as is reasonably practicable the arrangements that constitute the payment system.</p></content></subsection></section><section eId="section-44"><num>44</num><heading>Designation criteria</heading><subsection eId="section-44-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury must have regard to—</p></intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content><p>the number and value of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content><p>the nature of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content><p>whether those transactions or their equivalent could be handled by other payment systems, and</p></content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content><p>the relationship between the system and other payment systems.</p></content></level></subsection></section><section eId="section-45"><num>45</num><heading>Procedure</heading><subsection eId="section-45-1"><num>(1)</num><intro><p>Before making a designation order in respect of a payment system the Treasury must—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the system is a recognised <noteRef href="#key-a3066f3a6d612c1cb422db5e519abe7e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>notify the operator of the system, and</p></content></level><level class="para1" eId="section-45-1-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury may rely on information provided by—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the FCA,</p></content></level><level class="para1" eId="section-45-2-c"><num>(c)</num><content><p>the PRA, or</p></content></level><level class="para1" eId="section-45-2-d"><num>(d)</num><content><p>the Payment Systems Regulator.</p></content></level></subsection></section><section eId="section-46"><num>46</num><heading>Amendment of designation order</heading><subsection eId="section-46-1"><num>(1)</num><content><p>The Treasury may amend a designation order.</p></content></subsection><subsection eId="section-46-2"><num>(2)</num><intro><p>Before amending a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f5d98472fe1a06ba9deaeec749d7ec68" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-46-3"><num>(3)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the amendment of its designation order.</p></content></subsection></section><section eId="section-47"><num>47</num><heading>Revocation of designation orders</heading><subsection eId="section-47-1"><num>(1)</num><content><p>The Treasury may revoke a designation order.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-47-3"><num>(3)</num><intro><p>Before revoking a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f6ed6f131c2d5b1ad748510669b61678" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-47-3-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-47-4"><num>(4)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the revocation of its designation order.</p></content></subsection></section><section eId="section-48"><num>48</num><heading>Publication</heading><subsection eId="section-48-1"><num>(1)</num><content><p>The Treasury must publish any designation order.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><content><p>If the Treasury amends a designation order, the Treasury must publish the amended order.</p></content></subsection><subsection eId="section-48-3"><num>(3)</num><content><p>The Treasury must publish any revocation of a designation order.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43"><num>43</num><heading>Designation orders</heading><subsection eId="section-43-1"><num>(1)</num><content><p>The Treasury may by order (a “designation order”) designate a payment system as a regulated payment system for the purposes of this Part.</p></content></subsection><subsection eId="section-43-2"><num>(2)</num><content><p>A designation order must specify in as much detail as is reasonably practicable the arrangements that constitute the payment system.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-1"><num>(1)</num><content><p>The Treasury may by order (a “designation order”) designate a payment system as a regulated payment system for the purposes of this Part.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-2"><num>(2)</num><content><p>A designation order must specify in as much detail as is reasonably practicable the arrangements that constitute the payment system.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44"><num>44</num><heading>Designation criteria</heading><subsection eId="section-44-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury must have regard to—</p></intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content><p>the number and value of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content><p>the nature of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content><p>whether those transactions or their equivalent could be handled by other payment systems, and</p></content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content><p>the relationship between the system and other payment systems.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury must have regard to—</p></intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content><p>the number and value of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content><p>the nature of the transactions that the system presently processes or is likely to process in the future,</p></content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content><p>whether those transactions or their equivalent could be handled by other payment systems, and</p></content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content><p>the relationship between the system and other payment systems.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-a"><num>(a)</num><content><p>the number and value of the transactions that the system presently processes or is likely to process in the future,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-b"><num>(b)</num><content><p>the nature of the transactions that the system presently processes or is likely to process in the future,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-c"><num>(c)</num><content><p>whether those transactions or their equivalent could be handled by other payment systems, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-d"><num>(d)</num><content><p>the relationship between the system and other payment systems.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45"><num>45</num><heading>Procedure</heading><subsection eId="section-45-1"><num>(1)</num><intro><p>Before making a designation order in respect of a payment system the Treasury must—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the system is a recognised <noteRef href="#key-a3066f3a6d612c1cb422db5e519abe7e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>notify the operator of the system, and</p></content></level><level class="para1" eId="section-45-1-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-45-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury may rely on information provided by—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the FCA,</p></content></level><level class="para1" eId="section-45-2-c"><num>(c)</num><content><p>the PRA, or</p></content></level><level class="para1" eId="section-45-2-d"><num>(d)</num><content><p>the Payment Systems Regulator.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45-1"><num>(1)</num><intro><p>Before making a designation order in respect of a payment system the Treasury must—</p></intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the system is a recognised <noteRef href="#key-a3066f3a6d612c1cb422db5e519abe7e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-45-1-b"><num>(b)</num><content><p>notify the operator of the system, and</p></content></level><level class="para1" eId="section-45-1-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-45-1-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the system is a recognised <noteRef href="#key-a3066f3a6d612c1cb422db5e519abe7e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-1-b"><num>(b)</num><content><p>notify the operator of the system, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-1-c"><num>(c)</num><content><p>consider any representations made.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-2"><num>(2)</num><intro><p>In considering whether to make a designation order in respect of a payment system, the Treasury may rely on information provided by—</p></intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the FCA,</p></content></level><level class="para1" eId="section-45-2-c"><num>(c)</num><content><p>the PRA, or</p></content></level><level class="para1" eId="section-45-2-d"><num>(d)</num><content><p>the Payment Systems Regulator.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-a"><num>(a)</num><content><p>the Bank of England,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-b"><num>(b)</num><content><p>the FCA,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-c"><num>(c)</num><content><p>the PRA, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-2-d"><num>(d)</num><content><p>the Payment Systems Regulator.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-46"><num>46</num><heading>Amendment of designation order</heading><subsection eId="section-46-1"><num>(1)</num><content><p>The Treasury may amend a designation order.</p></content></subsection><subsection eId="section-46-2"><num>(2)</num><intro><p>Before amending a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f5d98472fe1a06ba9deaeec749d7ec68" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-46-3"><num>(3)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the amendment of its designation order.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46-1"><num>(1)</num><content><p>The Treasury may amend a designation order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-46-2"><num>(2)</num><intro><p>Before amending a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-46-2-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f5d98472fe1a06ba9deaeec749d7ec68" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-46-2-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-46-2-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-46-2-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f5d98472fe1a06ba9deaeec749d7ec68" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-2-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-2-c"><num>(c)</num><content><p>consider any representations made.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46-3"><num>(3)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the amendment of its designation order.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-47"><num>47</num><heading>Revocation of designation orders</heading><subsection eId="section-47-1"><num>(1)</num><content><p>The Treasury may revoke a designation order.</p></content></subsection><subsection eId="section-47-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-47-3"><num>(3)</num><intro><p>Before revoking a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f6ed6f131c2d5b1ad748510669b61678" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-47-3-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection><subsection eId="section-47-4"><num>(4)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the revocation of its designation order.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-1"><num>(1)</num><content><p>The Treasury may revoke a designation order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-47-3"><num>(3)</num><intro><p>Before revoking a designation order made in respect of a payment system, the Treasury must—</p></intro><level class="para1" eId="section-47-3-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f6ed6f131c2d5b1ad748510669b61678" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level><level class="para1" eId="section-47-3-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level><level class="para1" eId="section-47-3-c"><num>(c)</num><content><p>consider any representations made.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-47-3-a"><num>(a)</num><content><p>consult the Payment Systems Regulator and, if the payment system is a recognised <noteRef href="#key-f6ed6f131c2d5b1ad748510669b61678" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, the Bank of England,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-3-b"><num>(b)</num><content><p>notify the operator of the payment system, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-47-3-c"><num>(c)</num><content><p>consider any representations made.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-4"><num>(4)</num><content><p>The Treasury must consider any request by the operator of a regulated payment system for the revocation of its designation order.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48"><num>48</num><heading>Publication</heading><subsection eId="section-48-1"><num>(1)</num><content><p>The Treasury must publish any designation order.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><content><p>If the Treasury amends a designation order, the Treasury must publish the amended order.</p></content></subsection><subsection eId="section-48-3"><num>(3)</num><content><p>The Treasury must publish any revocation of a designation order.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-1"><num>(1)</num><content><p>The Treasury must publish any designation order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-2"><num>(2)</num><content><p>If the Treasury amends a designation order, the Treasury must publish the amended order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-3"><num>(3)</num><content><p>The Treasury must publish any revocation of a designation order.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-general-duties-of-regulator"><heading><i>General duties of Regulator</i></heading><section eId="section-49"><num>49</num><heading>Regulator's general duties in relation to payment systems</heading><subsection eId="section-49-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-49-2"><num>(2)</num><intro><p>The payment systems objectives of the Payment Systems Regulator are—</p></intro><level class="para1" eId="section-49-2-a"><num>(a)</num><content><p>the competition objective (see section 50),</p></content></level><level class="para1" eId="section-49-2-b"><num>(b)</num><content><p>the innovation objective (see section 51), and</p></content></level><level class="para1" eId="section-49-2-c"><num>(c)</num><content><p>the service-user objective (see section 52).</p></content></level></subsection><subsection eId="section-49-3"><num>(3)</num><intro><p>In discharging its general functions relating to payment systems the Payment Systems Regulator must have regard to—</p></intro><level class="para1" eId="section-49-3-a"><num>(a)</num><content><p>the importance of maintaining the stability of, and confidence in, the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-49-3-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-49-3-c"><num>(c)</num><content><p>the regulatory principles in section 53.</p></content></level></subsection><subsection eId="section-49-4"><num>(4)</num><intro><p>The general functions of the Payment Systems Regulator relating to payment systems are—</p></intro><level class="para1" eId="section-49-4-a"><num>(a)</num><content><p>its function of giving general directions under section 54 (considered as a whole),</p></content></level><level class="para1" eId="section-49-4-b"><num>(b)</num><content><p>its functions in relation to the giving of general guidance under section 96 (considered as a whole), and</p></content></level><level class="para1" eId="section-49-4-c"><num>(c)</num><content><p>its function of determining the general policy and principles by reference to which it performs particular functions.</p></content></level></subsection></section><section eId="section-50"><num>50</num><heading>The competition objective</heading><subsection eId="section-50-1"><num>(1)</num><intro><p>The competition objective is to promote effective competition in—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems,</p></content></level><wrapUp><p>in the interests of those who use, or are likely to use, services provided by payment systems.</p></wrapUp></subsection><subsection eId="section-50-2"><num>(2)</num><intro><p>The reference in subsection (1) to promoting effective competition includes, in particular, promoting effective competition—</p></intro><level class="para1" eId="section-50-2-a"><num>(a)</num><content><p>between different operators of payment systems,</p></content></level><level class="para1" eId="section-50-2-b"><num>(b)</num><content><p>between different payment service providers, and</p></content></level><level class="para1" eId="section-50-2-c"><num>(c)</num><content><p>between different infrastructure providers.</p></content></level></subsection><subsection eId="section-50-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-50-3-a"><num>(a)</num><content><p>the needs of different persons who use, or may use, services provided by payment systems;</p></content></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content><p>the ease with which persons who may wish to use those services can do so;</p></content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><content><p>the ease with which persons who obtain those services can change the person from whom they obtain them;</p></content></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content><p>the needs of different payment service providers or persons who wish to become payment service providers;</p></content></level><level class="para1" eId="section-50-3-e"><num>(e)</num><content><p>the ease with which payment service providers, or persons who wish to become payment service providers, can provide services using payment systems;</p></content></level><level class="para1" eId="section-50-3-f"><num>(f)</num><content><p>the ease with which payment service providers can change the payment system they use to provide their services;</p></content></level><level class="para1" eId="section-50-3-g"><num>(g)</num><content><p>the needs of different infrastructure providers or persons who wish to become infrastructure providers;</p></content></level><level class="para1" eId="section-50-3-h"><num>(h)</num><content><p>the ease with which infrastructure providers, or persons who wish to become infrastructure providers, can provide infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-i"><num>(i)</num><content><p>the needs of different operators of payment systems;</p></content></level><level class="para1" eId="section-50-3-j"><num>(j)</num><content><p>the ease with which operators of payment systems can change the infrastructure used to operate the payment systems;</p></content></level><level class="para1" eId="section-50-3-k"><num>(k)</num><content><p>the level and structure of fees, charges or other costs associated with participation in payment systems;</p></content></level><level class="para1" eId="section-50-3-l"><num>(l)</num><content><p>the ease with which new entrants can enter the market;</p></content></level><level class="para1" eId="section-50-3-m"><num>(m)</num><content><p>how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-n"><num>(n)</num><content><p>how far competition is encouraging innovation.</p></content></level></subsection></section><section eId="section-51"><num>51</num><heading>The innovation objective</heading><subsection eId="section-51-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-51-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-52"><num>52</num><heading>The service-user objective</heading><content><p>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.</p></content></section><section eId="section-53"><num>53</num><heading>Regulatory principles</heading><intro><p>The regulatory principles referred to in section 49(3)(c) are as follows—</p></intro><level class="para1" eId="section-53-a"><num>(a)</num><content><p>the need to use the resources of the Payment Systems Regulator in the most efficient and economic way;</p></content></level><level class="para1" eId="section-53-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-c"><num>(c)</num><content><p>the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term <ins class="first last" ukl:ChangeId="key-ca69ed4522b046f2fdf9c67252921cdc-1695297696170" ukl:CommentaryRef="key-ca69ed4522b046f2fdf9c67252921cdc"><noteRef uk:name="commentary" href="#key-ca69ed4522b046f2fdf9c67252921cdc" class="commentary"/>, 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;</ins> </p></content></level><level class="para1" eId="section-53-d"><num>(d)</num><content><p>the general principle that those who use services provided by payment systems should take responsibility for their decisions;</p></content></level><level class="para1" eId="section-53-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-f"><num>(f)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-g"><num>(g)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-h"><num>(h)</num><content><p>the principle that the Payment Systems Regulator should exercise its functions as transparently as possible.</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49"><num>49</num><heading>Regulator's general duties in relation to payment systems</heading><subsection eId="section-49-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-49-2"><num>(2)</num><intro><p>The payment systems objectives of the Payment Systems Regulator are—</p></intro><level class="para1" eId="section-49-2-a"><num>(a)</num><content><p>the competition objective (see section 50),</p></content></level><level class="para1" eId="section-49-2-b"><num>(b)</num><content><p>the innovation objective (see section 51), and</p></content></level><level class="para1" eId="section-49-2-c"><num>(c)</num><content><p>the service-user objective (see section 52).</p></content></level></subsection><subsection eId="section-49-3"><num>(3)</num><intro><p>In discharging its general functions relating to payment systems the Payment Systems Regulator must have regard to—</p></intro><level class="para1" eId="section-49-3-a"><num>(a)</num><content><p>the importance of maintaining the stability of, and confidence in, the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-49-3-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-49-3-c"><num>(c)</num><content><p>the regulatory principles in section 53.</p></content></level></subsection><subsection eId="section-49-4"><num>(4)</num><intro><p>The general functions of the Payment Systems Regulator relating to payment systems are—</p></intro><level class="para1" eId="section-49-4-a"><num>(a)</num><content><p>its function of giving general directions under section 54 (considered as a whole),</p></content></level><level class="para1" eId="section-49-4-b"><num>(b)</num><content><p>its functions in relation to the giving of general guidance under section 96 (considered as a whole), and</p></content></level><level class="para1" eId="section-49-4-c"><num>(c)</num><content><p>its function of determining the general policy and principles by reference to which it performs particular functions.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-2"><num>(2)</num><intro><p>The payment systems objectives of the Payment Systems Regulator are—</p></intro><level class="para1" eId="section-49-2-a"><num>(a)</num><content><p>the competition objective (see section 50),</p></content></level><level class="para1" eId="section-49-2-b"><num>(b)</num><content><p>the innovation objective (see section 51), and</p></content></level><level class="para1" eId="section-49-2-c"><num>(c)</num><content><p>the service-user objective (see section 52).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-2-a"><num>(a)</num><content><p>the competition objective (see section 50),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-2-b"><num>(b)</num><content><p>the innovation objective (see section 51), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-2-c"><num>(c)</num><content><p>the service-user objective (see section 52).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-3"><num>(3)</num><intro><p>In discharging its general functions relating to payment systems the Payment Systems Regulator must have regard to—</p></intro><level class="para1" eId="section-49-3-a"><num>(a)</num><content><p>the importance of maintaining the stability of, and confidence in, the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-49-3-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-49-3-c"><num>(c)</num><content><p>the regulatory principles in section 53.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-3-a"><num>(a)</num><content><p>the importance of maintaining the stability of, and confidence in, the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-3-b"><num>(b)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-3-c"><num>(c)</num><content><p>the regulatory principles in section 53.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-4"><num>(4)</num><intro><p>The general functions of the Payment Systems Regulator relating to payment systems are—</p></intro><level class="para1" eId="section-49-4-a"><num>(a)</num><content><p>its function of giving general directions under section 54 (considered as a whole),</p></content></level><level class="para1" eId="section-49-4-b"><num>(b)</num><content><p>its functions in relation to the giving of general guidance under section 96 (considered as a whole), and</p></content></level><level class="para1" eId="section-49-4-c"><num>(c)</num><content><p>its function of determining the general policy and principles by reference to which it performs particular functions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-4-a"><num>(a)</num><content><p>its function of giving general directions under section 54 (considered as a whole),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-4-b"><num>(b)</num><content><p>its functions in relation to the giving of general guidance under section 96 (considered as a whole), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-4-c"><num>(c)</num><content><p>its function of determining the general policy and principles by reference to which it performs particular functions.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50"><num>50</num><heading>The competition objective</heading><subsection eId="section-50-1"><num>(1)</num><intro><p>The competition objective is to promote effective competition in—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems,</p></content></level><wrapUp><p>in the interests of those who use, or are likely to use, services provided by payment systems.</p></wrapUp></subsection><subsection eId="section-50-2"><num>(2)</num><intro><p>The reference in subsection (1) to promoting effective competition includes, in particular, promoting effective competition—</p></intro><level class="para1" eId="section-50-2-a"><num>(a)</num><content><p>between different operators of payment systems,</p></content></level><level class="para1" eId="section-50-2-b"><num>(b)</num><content><p>between different payment service providers, and</p></content></level><level class="para1" eId="section-50-2-c"><num>(c)</num><content><p>between different infrastructure providers.</p></content></level></subsection><subsection eId="section-50-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-50-3-a"><num>(a)</num><content><p>the needs of different persons who use, or may use, services provided by payment systems;</p></content></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content><p>the ease with which persons who may wish to use those services can do so;</p></content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><content><p>the ease with which persons who obtain those services can change the person from whom they obtain them;</p></content></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content><p>the needs of different payment service providers or persons who wish to become payment service providers;</p></content></level><level class="para1" eId="section-50-3-e"><num>(e)</num><content><p>the ease with which payment service providers, or persons who wish to become payment service providers, can provide services using payment systems;</p></content></level><level class="para1" eId="section-50-3-f"><num>(f)</num><content><p>the ease with which payment service providers can change the payment system they use to provide their services;</p></content></level><level class="para1" eId="section-50-3-g"><num>(g)</num><content><p>the needs of different infrastructure providers or persons who wish to become infrastructure providers;</p></content></level><level class="para1" eId="section-50-3-h"><num>(h)</num><content><p>the ease with which infrastructure providers, or persons who wish to become infrastructure providers, can provide infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-i"><num>(i)</num><content><p>the needs of different operators of payment systems;</p></content></level><level class="para1" eId="section-50-3-j"><num>(j)</num><content><p>the ease with which operators of payment systems can change the infrastructure used to operate the payment systems;</p></content></level><level class="para1" eId="section-50-3-k"><num>(k)</num><content><p>the level and structure of fees, charges or other costs associated with participation in payment systems;</p></content></level><level class="para1" eId="section-50-3-l"><num>(l)</num><content><p>the ease with which new entrants can enter the market;</p></content></level><level class="para1" eId="section-50-3-m"><num>(m)</num><content><p>how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-n"><num>(n)</num><content><p>how far competition is encouraging innovation.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-1"><num>(1)</num><intro><p>The competition objective is to promote effective competition in—</p></intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems,</p></content></level><wrapUp><p>in the interests of those who use, or are likely to use, services provided by payment systems.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-2"><num>(2)</num><intro><p>The reference in subsection (1) to promoting effective competition includes, in particular, promoting effective competition—</p></intro><level class="para1" eId="section-50-2-a"><num>(a)</num><content><p>between different operators of payment systems,</p></content></level><level class="para1" eId="section-50-2-b"><num>(b)</num><content><p>between different payment service providers, and</p></content></level><level class="para1" eId="section-50-2-c"><num>(c)</num><content><p>between different infrastructure providers.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-2-a"><num>(a)</num><content><p>between different operators of payment systems,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-2-b"><num>(b)</num><content><p>between different payment service providers, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-2-c"><num>(c)</num><content><p>between different infrastructure providers.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-50-3-a"><num>(a)</num><content><p>the needs of different persons who use, or may use, services provided by payment systems;</p></content></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content><p>the ease with which persons who may wish to use those services can do so;</p></content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><content><p>the ease with which persons who obtain those services can change the person from whom they obtain them;</p></content></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content><p>the needs of different payment service providers or persons who wish to become payment service providers;</p></content></level><level class="para1" eId="section-50-3-e"><num>(e)</num><content><p>the ease with which payment service providers, or persons who wish to become payment service providers, can provide services using payment systems;</p></content></level><level class="para1" eId="section-50-3-f"><num>(f)</num><content><p>the ease with which payment service providers can change the payment system they use to provide their services;</p></content></level><level class="para1" eId="section-50-3-g"><num>(g)</num><content><p>the needs of different infrastructure providers or persons who wish to become infrastructure providers;</p></content></level><level class="para1" eId="section-50-3-h"><num>(h)</num><content><p>the ease with which infrastructure providers, or persons who wish to become infrastructure providers, can provide infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-i"><num>(i)</num><content><p>the needs of different operators of payment systems;</p></content></level><level class="para1" eId="section-50-3-j"><num>(j)</num><content><p>the ease with which operators of payment systems can change the infrastructure used to operate the payment systems;</p></content></level><level class="para1" eId="section-50-3-k"><num>(k)</num><content><p>the level and structure of fees, charges or other costs associated with participation in payment systems;</p></content></level><level class="para1" eId="section-50-3-l"><num>(l)</num><content><p>the ease with which new entrants can enter the market;</p></content></level><level class="para1" eId="section-50-3-m"><num>(m)</num><content><p>how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems;</p></content></level><level class="para1" eId="section-50-3-n"><num>(n)</num><content><p>how far competition is encouraging innovation.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-a"><num>(a)</num><content><p>the needs of different persons who use, or may use, services provided by payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-b"><num>(b)</num><content><p>the ease with which persons who may wish to use those services can do so;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-c"><num>(c)</num><content><p>the ease with which persons who obtain those services can change the person from whom they obtain them;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-d"><num>(d)</num><content><p>the needs of different payment service providers or persons who wish to become payment service providers;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-e"><num>(e)</num><content><p>the ease with which payment service providers, or persons who wish to become payment service providers, can provide services using payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-f"><num>(f)</num><content><p>the ease with which payment service providers can change the payment system they use to provide their services;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-g"><num>(g)</num><content><p>the needs of different infrastructure providers or persons who wish to become infrastructure providers;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-h"><num>(h)</num><content><p>the ease with which infrastructure providers, or persons who wish to become infrastructure providers, can provide infrastructure for the purposes of operating payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-i"><num>(i)</num><content><p>the needs of different operators of payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-j"><num>(j)</num><content><p>the ease with which operators of payment systems can change the infrastructure used to operate the payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-k"><num>(k)</num><content><p>the level and structure of fees, charges or other costs associated with participation in payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-l"><num>(l)</num><content><p>the ease with which new entrants can enter the market;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-m"><num>(m)</num><content><p>how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-n"><num>(n)</num><content><p>how far competition is encouraging innovation.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51"><num>51</num><heading>The innovation objective</heading><subsection eId="section-51-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-51-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-2"><num>(2)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52"><num>52</num><heading>The service-user objective</heading><content><p>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.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-53"><num>53</num><heading>Regulatory principles</heading><intro><p>The regulatory principles referred to in section 49(3)(c) are as follows—</p></intro><level class="para1" eId="section-53-a"><num>(a)</num><content><p>the need to use the resources of the Payment Systems Regulator in the most efficient and economic way;</p></content></level><level class="para1" eId="section-53-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-c"><num>(c)</num><content><p>the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term <ins class="first last" ukl:ChangeId="key-ca69ed4522b046f2fdf9c67252921cdc-1695297696170" ukl:CommentaryRef="key-ca69ed4522b046f2fdf9c67252921cdc"><noteRef uk:name="commentary" href="#key-ca69ed4522b046f2fdf9c67252921cdc" class="commentary"/>, 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;</ins> </p></content></level><level class="para1" eId="section-53-d"><num>(d)</num><content><p>the general principle that those who use services provided by payment systems should take responsibility for their decisions;</p></content></level><level class="para1" eId="section-53-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-f"><num>(f)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-g"><num>(g)</num><content><p>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;</p></content></level><level class="para1" eId="section-53-h"><num>(h)</num><content><p>the principle that the Payment Systems Regulator should exercise its functions as transparently as possible.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-a"><num>(a)</num><content><p>the need to use the resources of the Payment Systems Regulator in the most efficient and economic way;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-b"><num>(b)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-53-c"><num>(c)</num><content><p>the desirability of sustainable growth in the economy of the United Kingdom in the medium or long term <ins class="first last" ukl:ChangeId="key-ca69ed4522b046f2fdf9c67252921cdc-1695297696170" ukl:CommentaryRef="key-ca69ed4522b046f2fdf9c67252921cdc"><noteRef uk:name="commentary" href="#key-ca69ed4522b046f2fdf9c67252921cdc" class="commentary"/>, 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;</ins> </p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-d"><num>(d)</num><content><p>the general principle that those who use services provided by payment systems should take responsibility for their decisions;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-e"><num>(e)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-f"><num>(f)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-g"><num>(g)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-h"><num>(h)</num><content><p>the principle that the Payment Systems Regulator should exercise its functions as transparently as possible.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-regulatory-and-competition-functions"><heading><i>Regulatory and competition functions</i></heading><section eId="section-54"><num>54</num><heading>Directions</heading><subsection eId="section-54-1"><num>(1)</num><content><p>The Payment Systems Regulator may give directions in writing to participants in regulated payment systems.</p></content></subsection><subsection eId="section-54-2"><num>(2)</num><intro><p>A direction given to a participant in a regulated payment system may—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p>require or prohibit the taking of specified action in relation to the system;</p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p>set standards to be met in relation to the system.</p></content></level></subsection><subsection eId="section-54-3"><num>(3)</num><intro><p>A direction under this section may apply—</p></intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content><p>generally,</p></content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><intro><p>in relation to—</p></intro><level class="para2" eId="section-54-3-b-i"><num>(i)</num><content><p>all operators, or every operator of a regulated payment system of a specified description,</p></content></level><level class="para2" eId="section-54-3-b-ii"><num>(ii)</num><content><p>all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or</p></content></level><level class="para2" eId="section-54-3-b-iii"><num>(iii)</num><content><p>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</p></content></level></level><level class="para1" eId="section-54-3-c"><num>(c)</num><content><p>in relation to specified persons or persons of a specified description.</p></content></level></subsection><subsection eId="section-54-4"><num>(4)</num><content><p>The Payment Systems Regulator must publish any direction given under this section that applies as mentioned in subsection (3)(a) or (b).</p></content></subsection><subsection eId="section-54-5"><num>(5)</num><content><p>A direction under this section that applies as mentioned in subsection (3)(a) or (b) is referred to in this Part as a “<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>”.</p></content></subsection></section><section eId="section-55"><num>55</num><heading>System rules</heading><subsection eId="section-55-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require the operator of a regulated payment system—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>to establish rules for the operation of the system;</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>to change the rules in a specified way or so as to achieve a specified purpose;</p></content></level><level class="para1" eId="section-55-1-c"><num>(c)</num><content><p>to notify the Payment Systems Regulator of any proposed change to the rules;</p></content></level><level class="para1" eId="section-55-1-d"><num>(d)</num><content><p>not to change the rules without the approval of the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><content><p>A requirement under subsection (1)(c) or (d) may be general or specific.</p></content></subsection><subsection eId="section-55-3"><num>(3)</num><intro><p>A requirement under this section that is imposed on—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>all operators of regulated payment systems, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>every operator of a regulated payment system of a specified description,</p></content></level><wrapUp><p>is referred to in this Part as a “<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>”.</p></wrapUp></subsection></section><section eId="section-56"><num>56</num><heading>Power to require granting of access to payment systems</heading><subsection eId="section-56-1"><num>(1)</num><content><p>This section applies where a person (“<term refersTo="#term-the-applicant" eId="term-the-applicant">the applicant</term>”) applies for an order under this section.</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><intro><p>An order under this section may provide for the applicant to become a payment service provider in relation to a payment system—</p></intro><level class="para1" eId="section-56-4-a"><num>(a)</num><content><p>for a period specified in the order;</p></content></level><level class="para1" eId="section-56-4-b"><num>(b)</num><content><p>on terms and conditions specified in the order.</p></content></level></subsection></section><section eId="section-57"><num>57</num><heading>Variation of agreements relating to payment systems</heading><subsection eId="section-57-1"><num>(1)</num><intro><p>This section applies to the following agreements—</p></intro><level class="para1" eId="section-57-1-a"><num>(a)</num><content><p>any agreement made between the operator of a regulated payment system and a payment service provider;</p></content></level><level class="para1" eId="section-57-1-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-57-1-c"><num>(c)</num><intro><p>any agreement concerning fees or charges payable in connection with—</p></intro><level class="para2" eId="section-57-1-c-i"><num>(i)</num><content><p>participation in a regulated payment system, or</p></content></level><level class="para2" eId="section-57-1-c-ii"><num>(ii)</num><content><p>the use of services provided by a regulated payment system.</p></content></level></level></subsection><subsection eId="section-57-2"><num>(2)</num><intro><p>The Payment Systems Regulator may, on the application of a party to an agreement to which this section applies, vary the agreement by—</p></intro><level class="para1" eId="section-57-2-a"><num>(a)</num><content><p>varying any of the fees or charges payable under the agreement, or</p></content></level><level class="para1" eId="section-57-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-57-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-57-4"><num>(4)</num><content><p>The power under this section to vary any fee or charge includes power to specify a maximum fee or charge.</p></content></subsection><subsection eId="section-57-5"><num>(5)</num><content><p>If the Payment Systems Regulator varies an agreement under this section, the agreement has effect subject to the variation.</p></content></subsection></section><section eId="section-58"><num>58</num><heading>Power to require disposal of interest in payment system</heading><subsection eId="section-58-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require a person who has an interest in <ins class="substitution first" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28"><noteRef uk:name="commentary" href="#key-617f3ad309eb83e70194ce3f8b7bdc28" class="commentary"/>— </ins></p></intro><level class="para1" eId="section-58-1-a"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">the operator of a regulated payment system, or</ins></p></content></level><level class="para1" eId="section-58-1-b"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">an infrastructure provider in relation to such a system,</ins></p></content></level><wrapUp><p><ins class="substitution last" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">to dispose of all or part of that interest.
</ins></p></wrapUp></subsection><subsection eId="section-58-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p>the market for payment systems, or</p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p>a market for services provided by payment systems.</p></content></level></subsection><subsection eId="section-58-2A"><num><ins class="first" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce"><noteRef uk:name="commentary" href="#key-81c12b8a4835eef3e72b4b437be2a4ce" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">The reference in subsection (2) to a restriction or distortion of competition includes, in particular, a restriction or distortion of competition—</ins></p></intro><level class="para1" eId="section-58-2A-a"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(a)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different operators of payment systems,</ins></p></content></level><level class="para1" eId="section-58-2A-b"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(b)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different payment services providers, or</ins></p></content></level><level class="para1" eId="section-58-2A-c"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different infrastructure providers.</ins></p></content></level></subsection><subsection eId="section-58-3"><num>(3)</num><content><p>The Payment Systems Regulator may not exercise the power conferred by subsection (1) without the consent of the Treasury.</p></content></subsection><subsection eId="section-58-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>the Payment Systems Regulator must notify the relevant competition authorities (see subsection (5)), and</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-58-5"><num>(5)</num><intro><p>The relevant competition authorities are—</p></intro><level class="para1" eId="section-58-5-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="section-58-5-b"><num>(b)</num><content><p>the Competition and Markets Authority, and</p></content></level><level class="para1" eId="section-58-5-c"><num>(c)</num><content><p>the FCA.</p></content></level></subsection></section><section eId="section-59"><num>59</num><heading>The Regulator's functions under Part 4 of the Enterprise Act 2002</heading><subsection eId="section-59-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-59-2"><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>relate to participation in payment systems.</p></content></level></subsection><subsection eId="section-59-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-f69a4440858f8c994a68b3a742393db0-1736921153246" ukl:CommentaryRef="key-f69a4440858f8c994a68b3a742393db0"><noteRef uk:name="commentary" href="#key-f69a4440858f8c994a68b3a742393db0" class="commentary"/>section 167C (statement of policy in relation to functions under sections 167 and 167A);</ins> </p></item><item><p>section 171 (duty to publish guidance).</p></item><item><p> <ins class="first last" ukl:ChangeId="key-4e0a2e3a49ec802d3b119126747cf106-1736921190326" ukl:CommentaryRef="key-4e0a2e3a49ec802d3b119126747cf106"><noteRef uk:name="commentary" href="#key-4e0a2e3a49ec802d3b119126747cf106" class="commentary"/>section 174E (statement of policy on penalties).</ins> </p></item></blockList></content></subsection><subsection eId="section-59-4"><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 64 of this Act, and</p></content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-59-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>in relation to section 166 <ins class="substitution first last" ukl:ChangeId="key-dddb512fd05b9bd5d8bde53be18d35d6-1736921239909" ukl:CommentaryRef="key-dddb512fd05b9bd5d8bde53be18d35d6"><noteRef uk:name="commentary" href="#key-dddb512fd05b9bd5d8bde53be18d35d6" class="commentary"/>, 167C, 171 or 174E</ins> of that Act, or</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection eId="section-59-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-59-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-59-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-59-7"><num><ins class="first" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a"><noteRef uk:name="commentary" href="#key-801017c5ed06026b478a4e0822a8574a" class="commentary"/>(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a">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.</ins></p></content></subsection></section><section eId="section-60"><num>60</num><heading>Restrictions on exercise of functions under Part 4 of the Enterprise Act 2002</heading><subsection eId="section-60-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-60-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-60-3"><num>(3)</num><content><p>In subsections (1) and (2) “<term refersTo="#term-the-concurrent-functions" eId="term-the-concurrent-functions">the concurrent functions</term>” means the functions which by virtue of section 59 are concurrent functions of the Payment Systems Regulator and the CMA.</p></content></subsection><subsection eId="section-60-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-60-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-60-6"><num>(6)</num><intro><p>In subsections (4) and (5) “the concurrent functions”—</p></intro><level class="para1" eId="section-60-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-60-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-60-7"><num>(7)</num><content><p>In this section “<term refersTo="#term-the-cma" eId="term-the-cma">the CMA</term>” means the Competition and Markets Authority.</p></content></subsection></section><section eId="section-61"><num>61</num><heading>The Regulator's functions under the Competition Act 1998</heading><subsection eId="section-61-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-61-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act, <ins class="first last" ukl:ChangeId="key-40b9be297d712643e4883f4366cbd629-1630936724419" ukl:CommentaryRef="key-40b9be297d712643e4883f4366cbd629"><noteRef uk:name="commentary" href="#key-40b9be297d712643e4883f4366cbd629" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-61-2-c"><num><ins class="substitution first" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346"><noteRef uk:name="commentary" href="#key-b2d65fc2ffa35e012df70989ff2f5346" class="commentary"/>(c)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346">transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act).</ins></p></content></level></subsection><subsection eId="section-61-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-5be3e026bd81c901aeb4a192059b43c2-1736921421936" ukl:CommentaryRef="key-5be3e026bd81c901aeb4a192059b43c2"><noteRef uk:name="commentary" href="#key-5be3e026bd81c901aeb4a192059b43c2" class="commentary"/>section 35C (statement of policy in relation to functions under sections 31E, 34 and 35A);</ins> </p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection eId="section-61-4"><num>(4)</num><content><p>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 <ins class="first last" ukl:ChangeId="key-b346206eeee962e1b24b7850aacfdd3a-1736921321003" ukl:CommentaryRef="key-b346206eeee962e1b24b7850aacfdd3a"><noteRef uk:name="commentary" href="#key-b346206eeee962e1b24b7850aacfdd3a" class="commentary"/>(including references in provisions of the Enterprise Act 2002 applied by that Part)</ins> are to be read as including references to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-61-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-61-5-a"><num>(a)</num><content><p>in relation to sections 31D(1) to (6) <ins class="first last" ukl:ChangeId="key-9f671f3855fa85ea4ae9600796391a90-1736921321002" ukl:CommentaryRef="key-9f671f3855fa85ea4ae9600796391a90"><noteRef uk:name="commentary" href="#key-9f671f3855fa85ea4ae9600796391a90" class="commentary"/>, 35C</ins>, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1" eId="section-61-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection eId="section-61-6"><num><ins class="first" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681"><noteRef uk:name="commentary" href="#key-b99e804959b58247eadaa96bb8768681" class="commentary"/>(6)</ins></num><intro><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">In making any decision, or otherwise taking action, for the purposes of any of its functions that—</ins></p></intro><level class="para1" eId="section-61-6-a"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(a)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">by virtue of this section, are functions exercisable concurrently with the CMA, and</ins></p></content></level><level class="para1" eId="section-61-6-b"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(b)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">the Payment Systems Regulator must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.</ins></p></wrapUp></subsection></section><section eId="section-62"><num>62</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection eId="section-62-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><intro><p>The powers referred to in subsection (1) are—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>its power to give a direction under section 54 (apart from the power to give a general direction);</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>its power to impose a requirement under section 55 (apart from the power to impose a generally-imposed requirement);</p></content></level><level class="para1" eId="section-62-2-c"><num>(c)</num><content><p>its powers under sections 56, 57 and 58.</p></content></level></subsection><subsection eId="section-62-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-63"><num>63</num><heading>Provision of information and assistance to a CMA group</heading><subsection eId="section-63-1"><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the Payment Systems Regulator must give the CMA group—</p></intro><level class="para1" eId="section-63-1-a"><num>(a)</num><content><p>any relevant information which it has in its possession, and</p></content></level><level class="para1" eId="section-63-1-b"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection eId="section-63-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-63-3"><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information" eId="term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><intro><p>which—</p></intro><level class="para2" eId="section-63-3-b-i"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2" eId="section-63-3-b-ii"><num>(ii)</num><content><p>in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection eId="section-63-4"><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection eId="section-63-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group" eId="term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section><section eId="section-64"><num>64</num><heading>Function of keeping markets under review</heading><subsection eId="section-64-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-64-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-64-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems.</p></content></level></subsection><subsection eId="section-64-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-65"><num>65</num><heading>Exclusion of general duties</heading><subsection eId="section-65-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-65-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-66"><num>66</num><heading>Concurrent competition powers: supplementary provision</heading><subsection eId="section-66-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-66-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-67"><num>67</num><heading>Amendments relating to Regulator's competition powers</heading><subsection eId="section-67-1"><num>(1)</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-2"><num>(2)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-3"><num>(3)</num><intro><p>In section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references)—</p></intro><level class="para1" eId="section-67-3-a"><num>(a)</num><content><p><mod>in subsection (7), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>in relation to the Payment Systems Regulator, section 59 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-67-3-b"><num>(b)</num><content><p><mod>in subsection (8), for “or Monitor” substitute <quotedText>“
, Monitor or the Payment Systems Regulator.
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-67-3-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-67-4"><num>(4)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-5"><num>(5)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54"><num>54</num><heading>Directions</heading><subsection eId="section-54-1"><num>(1)</num><content><p>The Payment Systems Regulator may give directions in writing to participants in regulated payment systems.</p></content></subsection><subsection eId="section-54-2"><num>(2)</num><intro><p>A direction given to a participant in a regulated payment system may—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p>require or prohibit the taking of specified action in relation to the system;</p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p>set standards to be met in relation to the system.</p></content></level></subsection><subsection eId="section-54-3"><num>(3)</num><intro><p>A direction under this section may apply—</p></intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content><p>generally,</p></content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><intro><p>in relation to—</p></intro><level class="para2" eId="section-54-3-b-i"><num>(i)</num><content><p>all operators, or every operator of a regulated payment system of a specified description,</p></content></level><level class="para2" eId="section-54-3-b-ii"><num>(ii)</num><content><p>all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or</p></content></level><level class="para2" eId="section-54-3-b-iii"><num>(iii)</num><content><p>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</p></content></level></level><level class="para1" eId="section-54-3-c"><num>(c)</num><content><p>in relation to specified persons or persons of a specified description.</p></content></level></subsection><subsection eId="section-54-4"><num>(4)</num><content><p>The Payment Systems Regulator must publish any direction given under this section that applies as mentioned in subsection (3)(a) or (b).</p></content></subsection><subsection eId="section-54-5"><num>(5)</num><content><p>A direction under this section that applies as mentioned in subsection (3)(a) or (b) is referred to in this Part as a “<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>”.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-1"><num>(1)</num><content><p>The Payment Systems Regulator may give directions in writing to participants in regulated payment systems.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-2"><num>(2)</num><intro><p>A direction given to a participant in a regulated payment system may—</p></intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content><p>require or prohibit the taking of specified action in relation to the system;</p></content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content><p>set standards to be met in relation to the system.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-a"><num>(a)</num><content><p>require or prohibit the taking of specified action in relation to the system;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-b"><num>(b)</num><content><p>set standards to be met in relation to the system.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-3"><num>(3)</num><intro><p>A direction under this section may apply—</p></intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content><p>generally,</p></content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><intro><p>in relation to—</p></intro><level class="para2" eId="section-54-3-b-i"><num>(i)</num><content><p>all operators, or every operator of a regulated payment system of a specified description,</p></content></level><level class="para2" eId="section-54-3-b-ii"><num>(ii)</num><content><p>all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or</p></content></level><level class="para2" eId="section-54-3-b-iii"><num>(iii)</num><content><p>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</p></content></level></level><level class="para1" eId="section-54-3-c"><num>(c)</num><content><p>in relation to specified persons or persons of a specified description.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-a"><num>(a)</num><content><p>generally,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-b"><num>(b)</num><intro><p>in relation to—</p></intro><level class="para2" eId="section-54-3-b-i"><num>(i)</num><content><p>all operators, or every operator of a regulated payment system of a specified description,</p></content></level><level class="para2" eId="section-54-3-b-ii"><num>(ii)</num><content><p>all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or</p></content></level><level class="para2" eId="section-54-3-b-iii"><num>(iii)</num><content><p>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</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-54-3-b-i"><num>(i)</num><content><p>all operators, or every operator of a regulated payment system of a specified description,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-54-3-b-ii"><num>(ii)</num><content><p>all infrastructure providers, or every person who is an infrastructure provider in relation to a regulated payment system of a specified description, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-54-3-b-iii"><num>(iii)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-c"><num>(c)</num><content><p>in relation to specified persons or persons of a specified description.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-4"><num>(4)</num><content><p>The Payment Systems Regulator must publish any direction given under this section that applies as mentioned in subsection (3)(a) or (b).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-5"><num>(5)</num><content><p>A direction under this section that applies as mentioned in subsection (3)(a) or (b) is referred to in this Part as a “<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>”.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55"><num>55</num><heading>System rules</heading><subsection eId="section-55-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require the operator of a regulated payment system—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>to establish rules for the operation of the system;</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>to change the rules in a specified way or so as to achieve a specified purpose;</p></content></level><level class="para1" eId="section-55-1-c"><num>(c)</num><content><p>to notify the Payment Systems Regulator of any proposed change to the rules;</p></content></level><level class="para1" eId="section-55-1-d"><num>(d)</num><content><p>not to change the rules without the approval of the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><content><p>A requirement under subsection (1)(c) or (d) may be general or specific.</p></content></subsection><subsection eId="section-55-3"><num>(3)</num><intro><p>A requirement under this section that is imposed on—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>all operators of regulated payment systems, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>every operator of a regulated payment system of a specified description,</p></content></level><wrapUp><p>is referred to in this Part as a “<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>”.</p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require the operator of a regulated payment system—</p></intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content><p>to establish rules for the operation of the system;</p></content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><p>to change the rules in a specified way or so as to achieve a specified purpose;</p></content></level><level class="para1" eId="section-55-1-c"><num>(c)</num><content><p>to notify the Payment Systems Regulator of any proposed change to the rules;</p></content></level><level class="para1" eId="section-55-1-d"><num>(d)</num><content><p>not to change the rules without the approval of the Payment Systems Regulator.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-a"><num>(a)</num><content><p>to establish rules for the operation of the system;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-b"><num>(b)</num><content><p>to change the rules in a specified way or so as to achieve a specified purpose;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-c"><num>(c)</num><content><p>to notify the Payment Systems Regulator of any proposed change to the rules;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-d"><num>(d)</num><content><p>not to change the rules without the approval of the Payment Systems Regulator.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-2"><num>(2)</num><content><p>A requirement under subsection (1)(c) or (d) may be general or specific.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-3"><num>(3)</num><intro><p>A requirement under this section that is imposed on—</p></intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content><p>all operators of regulated payment systems, or</p></content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content><p>every operator of a regulated payment system of a specified description,</p></content></level><wrapUp><p>is referred to in this Part as a “<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>”.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-3-a"><num>(a)</num><content><p>all operators of regulated payment systems, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-3-b"><num>(b)</num><content><p>every operator of a regulated payment system of a specified description,</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56"><num>56</num><heading>Power to require granting of access to payment systems</heading><subsection eId="section-56-1"><num>(1)</num><content><p>This section applies where a person (“<term refersTo="#term-the-applicant" eId="term-the-applicant">the applicant</term>”) applies for an order under this section.</p></content></subsection><subsection eId="section-56-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-56-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-56-4"><num>(4)</num><intro><p>An order under this section may provide for the applicant to become a payment service provider in relation to a payment system—</p></intro><level class="para1" eId="section-56-4-a"><num>(a)</num><content><p>for a period specified in the order;</p></content></level><level class="para1" eId="section-56-4-b"><num>(b)</num><content><p>on terms and conditions specified in the order.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-1"><num>(1)</num><content><p>This section applies where a person (“<term refersTo="#term-the-applicant" eId="term-the-applicant">the applicant</term>”) applies for an order under this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-4"><num>(4)</num><intro><p>An order under this section may provide for the applicant to become a payment service provider in relation to a payment system—</p></intro><level class="para1" eId="section-56-4-a"><num>(a)</num><content><p>for a period specified in the order;</p></content></level><level class="para1" eId="section-56-4-b"><num>(b)</num><content><p>on terms and conditions specified in the order.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-4-a"><num>(a)</num><content><p>for a period specified in the order;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-4-b"><num>(b)</num><content><p>on terms and conditions specified in the order.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57"><num>57</num><heading>Variation of agreements relating to payment systems</heading><subsection eId="section-57-1"><num>(1)</num><intro><p>This section applies to the following agreements—</p></intro><level class="para1" eId="section-57-1-a"><num>(a)</num><content><p>any agreement made between the operator of a regulated payment system and a payment service provider;</p></content></level><level class="para1" eId="section-57-1-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-57-1-c"><num>(c)</num><intro><p>any agreement concerning fees or charges payable in connection with—</p></intro><level class="para2" eId="section-57-1-c-i"><num>(i)</num><content><p>participation in a regulated payment system, or</p></content></level><level class="para2" eId="section-57-1-c-ii"><num>(ii)</num><content><p>the use of services provided by a regulated payment system.</p></content></level></level></subsection><subsection eId="section-57-2"><num>(2)</num><intro><p>The Payment Systems Regulator may, on the application of a party to an agreement to which this section applies, vary the agreement by—</p></intro><level class="para1" eId="section-57-2-a"><num>(a)</num><content><p>varying any of the fees or charges payable under the agreement, or</p></content></level><level class="para1" eId="section-57-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-57-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-57-4"><num>(4)</num><content><p>The power under this section to vary any fee or charge includes power to specify a maximum fee or charge.</p></content></subsection><subsection eId="section-57-5"><num>(5)</num><content><p>If the Payment Systems Regulator varies an agreement under this section, the agreement has effect subject to the variation.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-1"><num>(1)</num><intro><p>This section applies to the following agreements—</p></intro><level class="para1" eId="section-57-1-a"><num>(a)</num><content><p>any agreement made between the operator of a regulated payment system and a payment service provider;</p></content></level><level class="para1" eId="section-57-1-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-57-1-c"><num>(c)</num><intro><p>any agreement concerning fees or charges payable in connection with—</p></intro><level class="para2" eId="section-57-1-c-i"><num>(i)</num><content><p>participation in a regulated payment system, or</p></content></level><level class="para2" eId="section-57-1-c-ii"><num>(ii)</num><content><p>the use of services provided by a regulated payment system.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-1-a"><num>(a)</num><content><p>any agreement made between the operator of a regulated payment system and a payment service provider;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-1-b"><num>(b)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-1-c"><num>(c)</num><intro><p>any agreement concerning fees or charges payable in connection with—</p></intro><level class="para2" eId="section-57-1-c-i"><num>(i)</num><content><p>participation in a regulated payment system, or</p></content></level><level class="para2" eId="section-57-1-c-ii"><num>(ii)</num><content><p>the use of services provided by a regulated payment system.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-57-1-c-i"><num>(i)</num><content><p>participation in a regulated payment system, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-57-1-c-ii"><num>(ii)</num><content><p>the use of services provided by a regulated payment system.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-2"><num>(2)</num><intro><p>The Payment Systems Regulator may, on the application of a party to an agreement to which this section applies, vary the agreement by—</p></intro><level class="para1" eId="section-57-2-a"><num>(a)</num><content><p>varying any of the fees or charges payable under the agreement, or</p></content></level><level class="para1" eId="section-57-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-2-a"><num>(a)</num><content><p>varying any of the fees or charges payable under the agreement, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-2-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-4"><num>(4)</num><content><p>The power under this section to vary any fee or charge includes power to specify a maximum fee or charge.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-5"><num>(5)</num><content><p>If the Payment Systems Regulator varies an agreement under this section, the agreement has effect subject to the variation.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-58"><num>58</num><heading>Power to require disposal of interest in payment system</heading><subsection eId="section-58-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require a person who has an interest in <ins class="substitution first" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28"><noteRef uk:name="commentary" href="#key-617f3ad309eb83e70194ce3f8b7bdc28" class="commentary"/>— </ins></p></intro><level class="para1" eId="section-58-1-a"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">the operator of a regulated payment system, or</ins></p></content></level><level class="para1" eId="section-58-1-b"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">an infrastructure provider in relation to such a system,</ins></p></content></level><wrapUp><p><ins class="substitution last" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">to dispose of all or part of that interest.
</ins></p></wrapUp></subsection><subsection eId="section-58-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p>the market for payment systems, or</p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p>a market for services provided by payment systems.</p></content></level></subsection><subsection eId="section-58-2A"><num><ins class="first" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce"><noteRef uk:name="commentary" href="#key-81c12b8a4835eef3e72b4b437be2a4ce" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">The reference in subsection (2) to a restriction or distortion of competition includes, in particular, a restriction or distortion of competition—</ins></p></intro><level class="para1" eId="section-58-2A-a"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(a)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different operators of payment systems,</ins></p></content></level><level class="para1" eId="section-58-2A-b"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(b)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different payment services providers, or</ins></p></content></level><level class="para1" eId="section-58-2A-c"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different infrastructure providers.</ins></p></content></level></subsection><subsection eId="section-58-3"><num>(3)</num><content><p>The Payment Systems Regulator may not exercise the power conferred by subsection (1) without the consent of the Treasury.</p></content></subsection><subsection eId="section-58-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>the Payment Systems Regulator must notify the relevant competition authorities (see subsection (5)), and</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-58-5"><num>(5)</num><intro><p>The relevant competition authorities are—</p></intro><level class="para1" eId="section-58-5-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="section-58-5-b"><num>(b)</num><content><p>the Competition and Markets Authority, and</p></content></level><level class="para1" eId="section-58-5-c"><num>(c)</num><content><p>the FCA.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-58-1"><num>(1)</num><intro><p>The Payment Systems Regulator may require a person who has an interest in <ins class="substitution first" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28"><noteRef uk:name="commentary" href="#key-617f3ad309eb83e70194ce3f8b7bdc28" class="commentary"/>— </ins></p></intro><level class="para1" eId="section-58-1-a"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">the operator of a regulated payment system, or</ins></p></content></level><level class="para1" eId="section-58-1-b"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">an infrastructure provider in relation to such a system,</ins></p></content></level><wrapUp><p><ins class="substitution last" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">to dispose of all or part of that interest.
</ins></p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-1-a"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">the operator of a regulated payment system, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-1-b"><num><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-617f3ad309eb83e70194ce3f8b7bdc28-1498407677661" ukl:CommentaryRef="key-617f3ad309eb83e70194ce3f8b7bdc28">an infrastructure provider in relation to such a system,</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-2-a"><num>(a)</num><content><p>the market for payment systems, or</p></content></level><level class="para1" eId="section-58-2-b"><num>(b)</num><content><p>a market for services provided by payment systems.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-2-a"><num>(a)</num><content><p>the market for payment systems, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-2-b"><num>(b)</num><content><p>a market for services provided by payment systems.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-3"><num>(3)</num><content><p>The Payment Systems Regulator may not exercise the power conferred by subsection (1) without the consent of the Treasury.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-58-2A"><num><ins class="first" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce"><noteRef uk:name="commentary" href="#key-81c12b8a4835eef3e72b4b437be2a4ce" class="commentary"/>(2A)</ins></num><intro><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">The reference in subsection (2) to a restriction or distortion of competition includes, in particular, a restriction or distortion of competition—</ins></p></intro><level class="para1" eId="section-58-2A-a"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(a)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different operators of payment systems,</ins></p></content></level><level class="para1" eId="section-58-2A-b"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(b)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different payment services providers, or</ins></p></content></level><level class="para1" eId="section-58-2A-c"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different infrastructure providers.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-2A-a"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(a)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different operators of payment systems,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-2A-b"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(b)</ins></num><content><p><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different payment services providers, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-58-2A-c"><num><ins ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-81c12b8a4835eef3e72b4b437be2a4ce-1498404019790" ukl:CommentaryRef="key-81c12b8a4835eef3e72b4b437be2a4ce">between different infrastructure providers.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-58-4-a"><num>(a)</num><content><p>the Payment Systems Regulator must notify the relevant competition authorities (see subsection (5)), and</p></content></level><level class="para1" eId="section-58-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-4-a"><num>(a)</num><content><p>the Payment Systems Regulator must notify the relevant competition authorities (see subsection (5)), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-4-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-5"><num>(5)</num><intro><p>The relevant competition authorities are—</p></intro><level class="para1" eId="section-58-5-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="section-58-5-b"><num>(b)</num><content><p>the Competition and Markets Authority, and</p></content></level><level class="para1" eId="section-58-5-c"><num>(c)</num><content><p>the FCA.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-5-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-5-b"><num>(b)</num><content><p>the Competition and Markets Authority, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-5-c"><num>(c)</num><content><p>the FCA.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-59"><num>59</num><heading>The Regulator's functions under Part 4 of the Enterprise Act 2002</heading><subsection eId="section-59-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-59-2"><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>relate to participation in payment systems.</p></content></level></subsection><subsection eId="section-59-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-f69a4440858f8c994a68b3a742393db0-1736921153246" ukl:CommentaryRef="key-f69a4440858f8c994a68b3a742393db0"><noteRef uk:name="commentary" href="#key-f69a4440858f8c994a68b3a742393db0" class="commentary"/>section 167C (statement of policy in relation to functions under sections 167 and 167A);</ins> </p></item><item><p>section 171 (duty to publish guidance).</p></item><item><p> <ins class="first last" ukl:ChangeId="key-4e0a2e3a49ec802d3b119126747cf106-1736921190326" ukl:CommentaryRef="key-4e0a2e3a49ec802d3b119126747cf106"><noteRef uk:name="commentary" href="#key-4e0a2e3a49ec802d3b119126747cf106" class="commentary"/>section 174E (statement of policy on penalties).</ins> </p></item></blockList></content></subsection><subsection eId="section-59-4"><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 64 of this Act, and</p></content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-59-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>in relation to section 166 <ins class="substitution first last" ukl:ChangeId="key-dddb512fd05b9bd5d8bde53be18d35d6-1736921239909" ukl:CommentaryRef="key-dddb512fd05b9bd5d8bde53be18d35d6"><noteRef uk:name="commentary" href="#key-dddb512fd05b9bd5d8bde53be18d35d6" class="commentary"/>, 167C, 171 or 174E</ins> of that Act, or</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection eId="section-59-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-59-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-59-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-59-7"><num><ins class="first" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a"><noteRef uk:name="commentary" href="#key-801017c5ed06026b478a4e0822a8574a" class="commentary"/>(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-1"><num>(1)</num><content><p>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”).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-2"><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1" eId="section-59-2-a"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1" eId="section-59-2-b"><num>(b)</num><content><p>relate to participation in payment systems.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-2-a"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-2-b"><num>(b)</num><content><p>relate to participation in payment systems.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-59-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-f69a4440858f8c994a68b3a742393db0-1736921153246" ukl:CommentaryRef="key-f69a4440858f8c994a68b3a742393db0"><noteRef uk:name="commentary" href="#key-f69a4440858f8c994a68b3a742393db0" class="commentary"/>section 167C (statement of policy in relation to functions under sections 167 and 167A);</ins> </p></item><item><p>section 171 (duty to publish guidance).</p></item><item><p> <ins class="first last" ukl:ChangeId="key-4e0a2e3a49ec802d3b119126747cf106-1736921190326" ukl:CommentaryRef="key-4e0a2e3a49ec802d3b119126747cf106"><noteRef uk:name="commentary" href="#key-4e0a2e3a49ec802d3b119126747cf106" class="commentary"/>section 174E (statement of policy on penalties).</ins> </p></item></blockList></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-4"><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 64 of this Act, and</p></content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-a"><num>(a)</num><content><p>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,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-b"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 64 of this Act, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-59-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-59-5-a"><num>(a)</num><content><p>in relation to section 166 <ins class="substitution first last" ukl:ChangeId="key-dddb512fd05b9bd5d8bde53be18d35d6-1736921239909" ukl:CommentaryRef="key-dddb512fd05b9bd5d8bde53be18d35d6"><noteRef uk:name="commentary" href="#key-dddb512fd05b9bd5d8bde53be18d35d6" class="commentary"/>, 167C, 171 or 174E</ins> of that Act, or</p></content></level><level class="para1" eId="section-59-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-59-5-a"><num>(a)</num><content><p>in relation to section 166 <ins class="substitution first last" ukl:ChangeId="key-dddb512fd05b9bd5d8bde53be18d35d6-1736921239909" ukl:CommentaryRef="key-dddb512fd05b9bd5d8bde53be18d35d6"><noteRef uk:name="commentary" href="#key-dddb512fd05b9bd5d8bde53be18d35d6" class="commentary"/>, 167C, 171 or 174E</ins> of that Act, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-59-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-59-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-6-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-6-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-59-7"><num><ins class="first" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a"><noteRef uk:name="commentary" href="#key-801017c5ed06026b478a4e0822a8574a" class="commentary"/>(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-801017c5ed06026b478a4e0822a8574a-1736921114680" ukl:CommentaryRef="key-801017c5ed06026b478a4e0822a8574a">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60"><num>60</num><heading>Restrictions on exercise of functions under Part 4 of the Enterprise Act 2002</heading><subsection eId="section-60-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-60-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-60-3"><num>(3)</num><content><p>In subsections (1) and (2) “<term refersTo="#term-the-concurrent-functions" eId="term-the-concurrent-functions">the concurrent functions</term>” means the functions which by virtue of section 59 are concurrent functions of the Payment Systems Regulator and the CMA.</p></content></subsection><subsection eId="section-60-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-60-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-60-6"><num>(6)</num><intro><p>In subsections (4) and (5) “the concurrent functions”—</p></intro><level class="para1" eId="section-60-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-60-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-60-7"><num>(7)</num><content><p>In this section “<term refersTo="#term-the-cma" eId="term-the-cma">the CMA</term>” means the Competition and Markets Authority.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-3"><num>(3)</num><content><p>In subsections (1) and (2) “<term refersTo="#term-the-concurrent-functions" eId="term-the-concurrent-functions">the concurrent functions</term>” means the functions which by virtue of section 59 are concurrent functions of the Payment Systems Regulator and the CMA.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-6"><num>(6)</num><intro><p>In subsections (4) and (5) “the concurrent functions”—</p></intro><level class="para1" eId="section-60-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-60-6-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-6-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-6-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-7"><num>(7)</num><content><p>In this section “<term refersTo="#term-the-cma" eId="term-the-cma">the CMA</term>” means the Competition and Markets Authority.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-61"><num>61</num><heading>The Regulator's functions under the Competition Act 1998</heading><subsection eId="section-61-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-61-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act, <ins class="first last" ukl:ChangeId="key-40b9be297d712643e4883f4366cbd629-1630936724419" ukl:CommentaryRef="key-40b9be297d712643e4883f4366cbd629"><noteRef uk:name="commentary" href="#key-40b9be297d712643e4883f4366cbd629" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-61-2-c"><num><ins class="substitution first" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346"><noteRef uk:name="commentary" href="#key-b2d65fc2ffa35e012df70989ff2f5346" class="commentary"/>(c)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346">transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act).</ins></p></content></level></subsection><subsection eId="section-61-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-5be3e026bd81c901aeb4a192059b43c2-1736921421936" ukl:CommentaryRef="key-5be3e026bd81c901aeb4a192059b43c2"><noteRef uk:name="commentary" href="#key-5be3e026bd81c901aeb4a192059b43c2" class="commentary"/>section 35C (statement of policy in relation to functions under sections 31E, 34 and 35A);</ins> </p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection eId="section-61-4"><num>(4)</num><content><p>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 <ins class="first last" ukl:ChangeId="key-b346206eeee962e1b24b7850aacfdd3a-1736921321003" ukl:CommentaryRef="key-b346206eeee962e1b24b7850aacfdd3a"><noteRef uk:name="commentary" href="#key-b346206eeee962e1b24b7850aacfdd3a" class="commentary"/>(including references in provisions of the Enterprise Act 2002 applied by that Part)</ins> are to be read as including references to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-61-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-61-5-a"><num>(a)</num><content><p>in relation to sections 31D(1) to (6) <ins class="first last" ukl:ChangeId="key-9f671f3855fa85ea4ae9600796391a90-1736921321002" ukl:CommentaryRef="key-9f671f3855fa85ea4ae9600796391a90"><noteRef uk:name="commentary" href="#key-9f671f3855fa85ea4ae9600796391a90" class="commentary"/>, 35C</ins>, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1" eId="section-61-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection eId="section-61-6"><num><ins class="first" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681"><noteRef uk:name="commentary" href="#key-b99e804959b58247eadaa96bb8768681" class="commentary"/>(6)</ins></num><intro><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">In making any decision, or otherwise taking action, for the purposes of any of its functions that—</ins></p></intro><level class="para1" eId="section-61-6-a"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(a)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">by virtue of this section, are functions exercisable concurrently with the CMA, and</ins></p></content></level><level class="para1" eId="section-61-6-b"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(b)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">the Payment Systems Regulator must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.</ins></p></wrapUp></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-1"><num>(1)</num><content><p>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”).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-61-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act, <ins class="first last" ukl:ChangeId="key-40b9be297d712643e4883f4366cbd629-1630936724419" ukl:CommentaryRef="key-40b9be297d712643e4883f4366cbd629"><noteRef uk:name="commentary" href="#key-40b9be297d712643e4883f4366cbd629" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-61-2-c"><num><ins class="substitution first" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346"><noteRef uk:name="commentary" href="#key-b2d65fc2ffa35e012df70989ff2f5346" class="commentary"/>(c)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346">transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act).</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-2-a"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-61-2-b"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act, <ins class="first last" ukl:ChangeId="key-40b9be297d712643e4883f4366cbd629-1630936724419" ukl:CommentaryRef="key-40b9be297d712643e4883f4366cbd629"><noteRef uk:name="commentary" href="#key-40b9be297d712643e4883f4366cbd629" class="commentary"/>and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-61-2-c"><num><ins class="substitution first" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346"><noteRef uk:name="commentary" href="#key-b2d65fc2ffa35e012df70989ff2f5346" class="commentary"/>(c)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-b2d65fc2ffa35e012df70989ff2f5346-1630936771043" ukl:CommentaryRef="key-b2d65fc2ffa35e012df70989ff2f5346">transferred EU anti-trust commitments or transferred EU anti-trust directions (as defined in section 40ZA of that Act).</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-2-d"><num>(d)</num><content><p>conduct which amounts to abuse of the kind mentioned in Article 102 of the Treaty on the Functioning of the European Union.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-61-3"><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>
<ins class="first last" ukl:ChangeId="key-5be3e026bd81c901aeb4a192059b43c2-1736921421936" ukl:CommentaryRef="key-5be3e026bd81c901aeb4a192059b43c2"><noteRef uk:name="commentary" href="#key-5be3e026bd81c901aeb4a192059b43c2" class="commentary"/>section 35C (statement of policy in relation to functions under sections 31E, 34 and 35A);</ins> </p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-61-4"><num>(4)</num><content><p>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 <ins class="first last" ukl:ChangeId="key-b346206eeee962e1b24b7850aacfdd3a-1736921321003" ukl:CommentaryRef="key-b346206eeee962e1b24b7850aacfdd3a"><noteRef uk:name="commentary" href="#key-b346206eeee962e1b24b7850aacfdd3a" class="commentary"/>(including references in provisions of the Enterprise Act 2002 applied by that Part)</ins> are to be read as including references to the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-61-5"><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1" eId="section-61-5-a"><num>(a)</num><content><p>in relation to sections 31D(1) to (6) <ins class="first last" ukl:ChangeId="key-9f671f3855fa85ea4ae9600796391a90-1736921321002" ukl:CommentaryRef="key-9f671f3855fa85ea4ae9600796391a90"><noteRef uk:name="commentary" href="#key-9f671f3855fa85ea4ae9600796391a90" class="commentary"/>, 35C</ins>, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1" eId="section-61-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-61-5-a"><num>(a)</num><content><p>in relation to sections 31D(1) to (6) <ins class="first last" ukl:ChangeId="key-9f671f3855fa85ea4ae9600796391a90-1736921321002" ukl:CommentaryRef="key-9f671f3855fa85ea4ae9600796391a90"><noteRef uk:name="commentary" href="#key-9f671f3855fa85ea4ae9600796391a90" class="commentary"/>, 35C</ins>, 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-5-b"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-61-6"><num><ins class="first" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681"><noteRef uk:name="commentary" href="#key-b99e804959b58247eadaa96bb8768681" class="commentary"/>(6)</ins></num><intro><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">In making any decision, or otherwise taking action, for the purposes of any of its functions that—</ins></p></intro><level class="para1" eId="section-61-6-a"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(a)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">by virtue of this section, are functions exercisable concurrently with the CMA, and</ins></p></content></level><level class="para1" eId="section-61-6-b"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(b)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,</ins></p></content></level><wrapUp><p><ins class="last" ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">the Payment Systems Regulator must have regard to the need for making a decision, or taking action, as soon as reasonably practicable.</ins></p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-61-6-a"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(a)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">by virtue of this section, are functions exercisable concurrently with the CMA, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-61-6-b"><num><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">(b)</ins></num><content><p><ins ukl:ChangeId="key-b99e804959b58247eadaa96bb8768681-1736921321000" ukl:CommentaryRef="key-b99e804959b58247eadaa96bb8768681">are functions within Schedule 4A to the Enterprise and Regulatory Reform Act 2013 by virtue of paragraph 5 of that Schedule,</ins></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62"><num>62</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection eId="section-62-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-62-2"><num>(2)</num><intro><p>The powers referred to in subsection (1) are—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>its power to give a direction under section 54 (apart from the power to give a general direction);</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>its power to impose a requirement under section 55 (apart from the power to impose a generally-imposed requirement);</p></content></level><level class="para1" eId="section-62-2-c"><num>(c)</num><content><p>its powers under sections 56, 57 and 58.</p></content></level></subsection><subsection eId="section-62-3"><num>(3)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-2"><num>(2)</num><intro><p>The powers referred to in subsection (1) are—</p></intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content><p>its power to give a direction under section 54 (apart from the power to give a general direction);</p></content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content><p>its power to impose a requirement under section 55 (apart from the power to impose a generally-imposed requirement);</p></content></level><level class="para1" eId="section-62-2-c"><num>(c)</num><content><p>its powers under sections 56, 57 and 58.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-a"><num>(a)</num><content><p>its power to give a direction under section 54 (apart from the power to give a general direction);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-b"><num>(b)</num><content><p>its power to impose a requirement under section 55 (apart from the power to impose a generally-imposed requirement);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-c"><num>(c)</num><content><p>its powers under sections 56, 57 and 58.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-3"><num>(3)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63"><num>63</num><heading>Provision of information and assistance to a CMA group</heading><subsection eId="section-63-1"><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the Payment Systems Regulator must give the CMA group—</p></intro><level class="para1" eId="section-63-1-a"><num>(a)</num><content><p>any relevant information which it has in its possession, and</p></content></level><level class="para1" eId="section-63-1-b"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection eId="section-63-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-63-3"><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information" eId="term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><intro><p>which—</p></intro><level class="para2" eId="section-63-3-b-i"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2" eId="section-63-3-b-ii"><num>(ii)</num><content><p>in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection eId="section-63-4"><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection eId="section-63-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group" eId="term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-1"><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the Payment Systems Regulator must give the CMA group—</p></intro><level class="para1" eId="section-63-1-a"><num>(a)</num><content><p>any relevant information which it has in its possession, and</p></content></level><level class="para1" eId="section-63-1-b"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-1-a"><num>(a)</num><content><p>any relevant information which it has in its possession, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-1-b"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-3"><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information" eId="term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1" eId="section-63-3-a"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1" eId="section-63-3-b"><num>(b)</num><intro><p>which—</p></intro><level class="para2" eId="section-63-3-b-i"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2" eId="section-63-3-b-ii"><num>(ii)</num><content><p>in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-3-a"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-3-b"><num>(b)</num><intro><p>which—</p></intro><level class="para2" eId="section-63-3-b-i"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2" eId="section-63-3-b-ii"><num>(ii)</num><content><p>in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-63-3-b-i"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-63-3-b-ii"><num>(ii)</num><content><p>in the opinion of the Payment Systems Regulator, it would be appropriate to give to the CMA group for that purpose.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-4"><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group" eId="term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64"><num>64</num><heading>Function of keeping markets under review</heading><subsection eId="section-64-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-64-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-64-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems.</p></content></level></subsection><subsection eId="section-64-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-64-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level><level class="para1" eId="section-64-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-1-a"><num>(a)</num><content><p>the market for payment systems, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-1-b"><num>(b)</num><content><p>the markets for services provided by payment systems.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-2"><num>(2)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65"><num>65</num><heading>Exclusion of general duties</heading><subsection eId="section-65-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-65-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-2"><num>(2)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66"><num>66</num><heading>Concurrent competition powers: supplementary provision</heading><subsection eId="section-66-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-66-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-2"><num>(2)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67"><num>67</num><heading>Amendments relating to Regulator's competition powers</heading><subsection eId="section-67-1"><num>(1)</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-2"><num>(2)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-3"><num>(3)</num><intro><p>In section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references)—</p></intro><level class="para1" eId="section-67-3-a"><num>(a)</num><content><p><mod>in subsection (7), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>in relation to the Payment Systems Regulator, section 59 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-67-3-b"><num>(b)</num><content><p><mod>in subsection (8), for “or Monitor” substitute <quotedText>“
, Monitor or the Payment Systems Regulator.
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-67-3-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-67-4"><num>(4)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection><subsection eId="section-67-5"><num>(5)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67-1"><num>(1)</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67-2"><num>(2)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67-3"><num>(3)</num><intro><p>In section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references)—</p></intro><level class="para1" eId="section-67-3-a"><num>(a)</num><content><p><mod>in subsection (7), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>in relation to the Payment Systems Regulator, section 59 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-67-3-b"><num>(b)</num><content><p><mod>in subsection (8), for “or Monitor” substitute <quotedText>“
, Monitor or the Payment Systems Regulator.
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-67-3-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-67-3-a"><num>(a)</num><content><p><mod>in subsection (7), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>in relation to the Payment Systems Regulator, section 59 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-3-b"><num>(b)</num><content><p><mod>in subsection (8), for “or Monitor” substitute <quotedText>“
, Monitor or the Payment Systems Regulator.
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-67-3-c"><num>(c)</num><content><p><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></subsection></quotedStructure></mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67-4"><num>(4)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(g)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67-5"><num>(5)</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-complaints"><heading><i>Complaints</i></heading><section eId="section-68"><num>68</num><heading>Complaints by representative bodies</heading><subsection eId="section-68-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-68-2"><num>(2)</num><content><p>“<term refersTo="#term-designated-representative-body" eId="term-designated-representative-body">Designated representative body</term>” means a body designated by the Treasury by order.</p></content></subsection><subsection eId="section-68-3"><num>(3)</num><intro><p>The Treasury—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>may designate a body only if it appears to them to represent the interests of service-users of any description, and</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-68-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>the structure of the market concerned or any aspect of that structure,</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-68-4-c"><num>(c)</num><content><p>any conduct relating to the market concerned of customers of any person who supplies or acquires services,</p></content></level><wrapUp><p>and “<term refersTo="#term-conduct" eId="term-conduct">conduct</term>” includes any failure to act (whether or not intentional) and any other unintentional conduct.</p></wrapUp></subsection><subsection eId="section-68-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-market-in-the-united-kingdom" eId="term-market-in-the-united-kingdom">market in the United Kingdom</term>” includes a market which operates only in a part of the United Kingdom.</p></content></subsection><subsection eId="section-68-6"><num>(6)</num><content><p><mod>In section 234C of FSMA 2000 (complaints by consumer bodies), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>But a complaint may not be made to the FCA under this section if it is a complaint which could be made to the Payment Systems Regulator by a designated representative body under section 68 of the Financial Services (Banking Reform) Act 2013 (complaints by representative bodies).</p><p>“<term refersTo="#term-designated-representative-body">Designated representative body</term>” and “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” have the same meaning in this subsection as they have in that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section><section eId="section-69"><num>69</num><heading>Response by Regulator</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>whether it has decided to take any action, or to take no action, and</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>if it has decided to take action, what action it proposes to take.</p></content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro><p>The response must—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>include a copy of the complaint, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>state the Payment Systems Regulator's reasons for its proposals.</p></content></level></subsection><subsection eId="section-69-3"><num>(3)</num><content><p>The Treasury may by order amend subsection (1) by substituting any period for the period for the time being specified there.</p></content></subsection></section><section eId="section-70"><num>70</num><heading>Complaints: guidance</heading><subsection eId="section-70-1"><num>(1)</num><intro><p>The guidance given by the Payment Systems Regulator under section 96—</p></intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content><p>must include guidance about the presentation of a reasoned case for a complaint under section 68, and</p></content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content><p>may include guidance about any other matters that appear to the Payment Systems Regulator to be appropriate for the purposes of that section.</p></content></level></subsection><subsection eId="section-70-2"><num>(2)</num><content><p>Guidance given in accordance with subsection (1) is to be treated as general guidance for the purposes of this Part.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-68"><num>68</num><heading>Complaints by representative bodies</heading><subsection eId="section-68-1"><num>(1)</num><content><p>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”).</p></content></subsection><subsection eId="section-68-2"><num>(2)</num><content><p>“<term refersTo="#term-designated-representative-body" eId="term-designated-representative-body">Designated representative body</term>” means a body designated by the Treasury by order.</p></content></subsection><subsection eId="section-68-3"><num>(3)</num><intro><p>The Treasury—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>may designate a body only if it appears to them to represent the interests of service-users of any description, and</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-68-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>the structure of the market concerned or any aspect of that structure,</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-68-4-c"><num>(c)</num><content><p>any conduct relating to the market concerned of customers of any person who supplies or acquires services,</p></content></level><wrapUp><p>and “<term refersTo="#term-conduct" eId="term-conduct">conduct</term>” includes any failure to act (whether or not intentional) and any other unintentional conduct.</p></wrapUp></subsection><subsection eId="section-68-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-market-in-the-united-kingdom" eId="term-market-in-the-united-kingdom">market in the United Kingdom</term>” includes a market which operates only in a part of the United Kingdom.</p></content></subsection><subsection eId="section-68-6"><num>(6)</num><content><p><mod>In section 234C of FSMA 2000 (complaints by consumer bodies), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>But a complaint may not be made to the FCA under this section if it is a complaint which could be made to the Payment Systems Regulator by a designated representative body under section 68 of the Financial Services (Banking Reform) Act 2013 (complaints by representative bodies).</p><p>“<term refersTo="#term-designated-representative-body">Designated representative body</term>” and “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” have the same meaning in this subsection as they have in that section.</p></content></subsection></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-1"><num>(1)</num><content><p>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”).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-2"><num>(2)</num><content><p>“<term refersTo="#term-designated-representative-body" eId="term-designated-representative-body">Designated representative body</term>” means a body designated by the Treasury by order.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-3"><num>(3)</num><intro><p>The Treasury—</p></intro><level class="para1" eId="section-68-3-a"><num>(a)</num><content><p>may designate a body only if it appears to them to represent the interests of service-users of any description, and</p></content></level><level class="para1" eId="section-68-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-3-a"><num>(a)</num><content><p>may designate a body only if it appears to them to represent the interests of service-users of any description, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-3-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-68-4-a"><num>(a)</num><content><p>the structure of the market concerned or any aspect of that structure,</p></content></level><level class="para1" eId="section-68-4-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-68-4-c"><num>(c)</num><content><p>any conduct relating to the market concerned of customers of any person who supplies or acquires services,</p></content></level><wrapUp><p>and “<term refersTo="#term-conduct" eId="term-conduct">conduct</term>” includes any failure to act (whether or not intentional) and any other unintentional conduct.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-4-a"><num>(a)</num><content><p>the structure of the market concerned or any aspect of that structure,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-4-b"><num>(b)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-68-4-c"><num>(c)</num><content><p>any conduct relating to the market concerned of customers of any person who supplies or acquires services,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-5"><num>(5)</num><content><p>In this section “<term refersTo="#term-market-in-the-united-kingdom" eId="term-market-in-the-united-kingdom">market in the United Kingdom</term>” includes a market which operates only in a part of the United Kingdom.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-68-6"><num>(6)</num><content><p><mod>In section 234C of FSMA 2000 (complaints by consumer bodies), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>But a complaint may not be made to the FCA under this section if it is a complaint which could be made to the Payment Systems Regulator by a designated representative body under section 68 of the Financial Services (Banking Reform) Act 2013 (complaints by representative bodies).</p><p>“<term refersTo="#term-designated-representative-body">Designated representative body</term>” and “<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” have the same meaning in this subsection as they have in that section.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69"><num>69</num><heading>Response by Regulator</heading><subsection eId="section-69-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>whether it has decided to take any action, or to take no action, and</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>if it has decided to take action, what action it proposes to take.</p></content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro><p>The response must—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>include a copy of the complaint, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>state the Payment Systems Regulator's reasons for its proposals.</p></content></level></subsection><subsection eId="section-69-3"><num>(3)</num><content><p>The Treasury may by order amend subsection (1) by substituting any period for the period for the time being specified there.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content><p>whether it has decided to take any action, or to take no action, and</p></content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content><p>if it has decided to take action, what action it proposes to take.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-a"><num>(a)</num><content><p>whether it has decided to take any action, or to take no action, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-1-b"><num>(b)</num><content><p>if it has decided to take action, what action it proposes to take.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-2"><num>(2)</num><intro><p>The response must—</p></intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content><p>include a copy of the complaint, and</p></content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content><p>state the Payment Systems Regulator's reasons for its proposals.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-2-a"><num>(a)</num><content><p>include a copy of the complaint, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-2-b"><num>(b)</num><content><p>state the Payment Systems Regulator's reasons for its proposals.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-3"><num>(3)</num><content><p>The Treasury may by order amend subsection (1) by substituting any period for the period for the time being specified there.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70"><num>70</num><heading>Complaints: guidance</heading><subsection eId="section-70-1"><num>(1)</num><intro><p>The guidance given by the Payment Systems Regulator under section 96—</p></intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content><p>must include guidance about the presentation of a reasoned case for a complaint under section 68, and</p></content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content><p>may include guidance about any other matters that appear to the Payment Systems Regulator to be appropriate for the purposes of that section.</p></content></level></subsection><subsection eId="section-70-2"><num>(2)</num><content><p>Guidance given in accordance with subsection (1) is to be treated as general guidance for the purposes of this Part.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-1"><num>(1)</num><intro><p>The guidance given by the Payment Systems Regulator under section 96—</p></intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content><p>must include guidance about the presentation of a reasoned case for a complaint under section 68, and</p></content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content><p>may include guidance about any other matters that appear to the Payment Systems Regulator to be appropriate for the purposes of that section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-70-1-a"><num>(a)</num><content><p>must include guidance about the presentation of a reasoned case for a complaint under section 68, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-70-1-b"><num>(b)</num><content><p>may include guidance about any other matters that appear to the Payment Systems Regulator to be appropriate for the purposes of that section.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-2"><num>(2)</num><content><p>Guidance given in accordance with subsection (1) is to be treated as general guidance for the purposes of this Part.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-enforcement-and-appeals"><heading><i>Enforcement and appeals</i></heading><section eId="section-71"><num>71</num><heading>Meaning of “compliance failure”</heading><intro><p>In this Part “<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” means a failure by a participant in a regulated payment system to—</p></intro><level class="para1" eId="section-71-a"><num>(a)</num><content><p>comply with a direction given under section 54, <noteRef href="#key-bc95589ba418d3d3fa06bf085aaade73" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-71-b"><num>(b)</num><content><p>comply with a requirement imposed under section 55 or 56 <ins class="first" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705"><noteRef uk:name="commentary" href="#key-406bea63a27034c8e67946083076f705" class="commentary"/>; or</ins></p></content></level><level class="para1" eId="section-71-c"><num><ins ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">comply with rules made by the Regulator under paragraph 9A of Schedule 4.</ins></p></content></level></section><section eId="section-72"><num>72</num><heading>Publication of compliance failures <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-72-1"><num>(1)</num><content><p>The Payment Systems Regulator may publish details of a compliance failure by a participant in a regulated payment system.</p></content></subsection><subsection eId="section-72-2"><num>(2)</num><content><p>The Payment Systems Regulator may publish details of a sanction imposed under section 73.</p></content></subsection></section><section eId="section-73"><num>73</num><heading>Penalties</heading><subsection eId="section-73-1"><num>(1)</num><content><p>The Payment Systems Regulator may require a participant in a regulated payment system to pay a penalty in respect of a compliance failure.</p></content></subsection><subsection eId="section-73-2"><num>(2)</num><intro><p>A penalty—</p></intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content><p>must be paid to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content><p>may be enforced by the Payment Systems Regulator as a debt.</p></content></level></subsection><subsection eId="section-73-3"><num>(3)</num><intro><p>The Payment Systems Regulator must prepare a statement of the principles which it will apply in determining—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p>whether to impose a penalty, and</p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p>the amount of a penalty.</p></content></level></subsection><subsection eId="section-73-4"><num>(4)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p>publish the statement on its website,</p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p>send a copy to the Treasury,</p></content></level><level class="para1" eId="section-73-4-c"><num>(c)</num><content><p>review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and</p></content></level><level class="para1" eId="section-73-4-d"><num>(d)</num><content><p>in applying the statement to a compliance failure, apply the version in force when the compliance failure occurred.</p></content></level></subsection></section><section eId="section-74"><num>74</num><heading>Warning notices</heading><subsection eId="section-74-1"><num>(1)</num><intro><p>Before imposing a sanction on any person the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-74-1-a"><num>(a)</num><content><p>give the person a notice in writing (a “warning notice”),</p></content></level><level class="para1" eId="section-74-1-b"><num>(b)</num><content><p>give the person at least 21 days to make representations,</p></content></level><level class="para1" eId="section-74-1-c"><num>(c)</num><content><p>consider any representations made, and</p></content></level><level class="para1" eId="section-74-1-d"><num>(d)</num><content><p>as soon as is reasonably practicable, give the person a notice in writing stating whether or not it intends to impose the sanction.</p></content></level></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In subsection (1) any reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection></section><section eId="section-75"><num>75</num><heading>Injunctions</heading><subsection eId="section-75-1"><num>(1)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-1-a"><num>(a)</num><content><p>that there is a reasonable likelihood that there will be a compliance failure, or</p></content></level><level class="para1" eId="section-75-1-b"><num>(b)</num><content><p>that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,</p></content></level><wrapUp><p>the court may make an order restraining the conduct constituting the failure.</p></wrapUp></subsection><subsection eId="section-75-2"><num>(2)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-2-a"><num>(a)</num><content><p>that there has been a compliance failure by a participant in a regulated payment system, and</p></content></level><level class="para1" eId="section-75-2-b"><num>(b)</num><content><p>that there are steps which could be taken for remedying the failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-75-3"><num>(3)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-3-a"><num>(a)</num><content><p>that there may have been a compliance failure by a participant in a regulated payment system, or</p></content></level><level class="para1" eId="section-75-3-b"><num>(b)</num><content><p>that a person may have been knowingly concerned in a compliance failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-75-4"><num>(4)</num><intro><p>The jurisdiction conferred by this section is exercisable—</p></intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content><p>in England and Wales and Northern Ireland, by the High Court, and</p></content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content><p>in Scotland, by the Court of Session.</p></content></level></subsection><subsection eId="section-75-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-75-5-a"><num>(a)</num><content><p>references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,</p></content></level><level class="para1" eId="section-75-5-b"><num>(b)</num><content><p>references to remedying a failure include mitigating its effect, and</p></content></level><level class="para1" eId="section-75-5-c"><num>(c)</num><content><p>references to dealing with assets include disposing of them.</p></content></level></subsection></section><section eId="section-76"><num>76</num><heading>Appeals: general</heading><subsection eId="section-76-1"><num>(1)</num><intro><p>A person who is affected by any of the following decisions of the Payment Systems Regulator may appeal against the decision—</p></intro><level class="para1" eId="section-76-1-a"><num>(a)</num><content><p>a decision to give a direction under section 54 (other than a general direction),</p></content></level><level class="para1" eId="section-76-1-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55 (other than a generally-imposed requirement),</p></content></level><level class="para1" eId="section-76-1-c"><num>(c)</num><content><p>a decision to exercise its power under section 56, 57 or 58,</p></content></level><level class="para1" eId="section-76-1-d"><num>(d)</num><content><p>a decision to impose a sanction.</p></content></level></subsection><subsection eId="section-76-2"><num>(2)</num><intro><p>In subsection (1) the reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-76-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-76-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection><subsection eId="section-76-3"><num>(3)</num><content><p>If the decision is a CAT-appealable decision, the appeal must be made to the Competition Appeal Tribunal in accordance with section 77.</p></content></subsection><subsection eId="section-76-4"><num>(4)</num><intro><p>A “<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content><p>a decision to give a direction under section 54,</p></content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55, or</p></content></level><level class="para1" eId="section-76-4-c"><num>(c)</num><content><p>a decision to publish details under section 72(1).</p></content></level></subsection><subsection eId="section-76-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-76-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-76-7"><num>(7)</num><intro><p>A “<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-7-a"><num>(a)</num><content><p>a decision to impose a requirement under section 56,</p></content></level><level class="para1" eId="section-76-7-b"><num>(b)</num><content><p>a decision to vary an agreement under section 57, or</p></content></level><level class="para1" eId="section-76-7-c"><num>(c)</num><content><p>a decision to impose a requirement under section 58.</p></content></level></subsection><subsection eId="section-76-8"><num>(8)</num><content><p>The permission of the CMA is required for an appeal to be made in accordance with section 79.</p></content></subsection><subsection eId="section-76-9"><num>(9)</num><intro><p>The CMA may refuse permission for an appeal only if—</p></intro><level class="para1" eId="section-76-9-a"><num>(a)</num><content><p>the appeal is made for reasons that are trivial or vexatious, or</p></content></level><level class="para1" eId="section-76-9-b"><num>(b)</num><content><p>the appeal has no reasonable prospect of success.</p></content></level></subsection></section><section eId="section-77"><num>77</num><heading>Appeals to Competition Appeal Tribunal</heading><subsection eId="section-77-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a CAT-appealable decision.</p></content></subsection><subsection eId="section-77-2"><num>(2)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection><subsection eId="section-77-3"><num>(3)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection><subsection eId="section-77-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-77-5"><num>(5)</num><intro><p>The Tribunal must either—</p></intro><level class="para1" eId="section-77-5-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-77-5-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection><subsection eId="section-77-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-77-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-77-8"><num>(8)</num><content><p>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).</p></content></subsection><subsection eId="section-77-9"><num>(9)</num><content><p>The effect of any other CAT-appealable decision is not suspended by the making of an appeal against the decision.</p></content></subsection><subsection eId="section-77-10"><num>(10)</num><content><p>In this section and section 78 “<term refersTo="#term-tribunal-rules" eId="term-tribunal-rules">Tribunal rules</term>” means rules under section 15 of the Enterprise Act 2002.</p></content></subsection></section><section eId="section-78"><num>78</num><heading>Appeals in relation to penalties</heading><subsection eId="section-78-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a decision to impose a penalty under section 73.</p></content></subsection><subsection eId="section-78-2"><num>(2)</num><intro><p>The person may appeal against—</p></intro><level class="para1" eId="section-78-2-a"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level><level class="para1" eId="section-78-2-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1" eId="section-78-2-c"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection><subsection eId="section-78-3"><num>(3)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection><subsection eId="section-78-4"><num>(4)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection><subsection eId="section-78-5"><num>(5)</num><intro><p>The Tribunal may do any of the following—</p></intro><level class="para1" eId="section-78-5-a"><num>(a)</num><content><p>uphold the penalty;</p></content></level><level class="para1" eId="section-78-5-b"><num>(b)</num><content><p>set aside the penalty;</p></content></level><level class="para1" eId="section-78-5-c"><num>(c)</num><content><p>substitute for the penalty a penalty of an amount decided by the Tribunal;</p></content></level><level class="para1" eId="section-78-5-d"><num>(d)</num><content><p>vary any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection><subsection eId="section-78-6"><num>(6)</num><content><p>If an appeal is made in accordance with this section, the penalty is not required to be paid until the appeal has been determined.</p></content></subsection><subsection eId="section-78-7"><num>(7)</num><content><p>Subsections (2), (5) and (6) do not restrict the power to make Tribunal rules; and those subsections are subject to Tribunal rules.</p></content></subsection><subsection eId="section-78-8"><num>(8)</num><content><p>Except as provided by this section, the validity of the penalty may not be questioned by any legal proceedings whatever.</p></content></subsection><subsection eId="section-78-9"><num>(9)</num><content><p>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.</p></content></subsection></section><section eId="section-79"><num>79</num><heading>Appeals to Competition and Markets Authority</heading><subsection eId="section-79-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition and Markets Authority (“the CMA”) against a CMA-appealable decision.</p></content></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-79-3"><num>(3)</num><intro><p>In determining the appeal the CMA—</p></intro><level class="para1" eId="section-79-3-a"><num>(a)</num><content><p>may have regard to any matter to which the Payment Systems Regulator was not able to have regard in relation to the decision, but</p></content></level><level class="para1" eId="section-79-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-79-4"><num>(4)</num><intro><p>The CMA must either—</p></intro><level class="para1" eId="section-79-4-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-79-4-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection><subsection eId="section-79-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-79-5-a"><num>(a)</num><content><p>that the Payment Systems Regulator failed properly to have regard to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-b"><num>(b)</num><content><p>that the Payment Systems Regulator failed to give the appropriate weight to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-c"><num>(c)</num><content><p>that the decision was based, wholly or partly, on an error of fact;</p></content></level><level class="para1" eId="section-79-5-d"><num>(d)</num><content><p>that the decision was wrong in law.</p></content></level></subsection><subsection eId="section-79-6"><num>(6)</num><intro><p>If the CMA quashes the whole or part of a decision, it may either—</p></intro><level class="para1" eId="section-79-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-79-6-b"><num>(b)</num><content><p>substitute its own decision for that of the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-79-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-79-8"><num>(8)</num><content><p>Schedule 5 contains further provision about the making of appeals in accordance with this section.</p></content></subsection></section><section eId="section-80"><num>80</num><heading>Enforcement of requirement to dispose of interest in payment system</heading><subsection eId="section-80-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><intro><p>Civil proceedings may not be brought to enforce a requirement imposed under that section unless—</p></intro><level class="para1" eId="section-80-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-80-2-b"><num>(b)</num><content><p>the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.</p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-71"><num>71</num><heading>Meaning of “compliance failure”</heading><intro><p>In this Part “<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” means a failure by a participant in a regulated payment system to—</p></intro><level class="para1" eId="section-71-a"><num>(a)</num><content><p>comply with a direction given under section 54, <noteRef href="#key-bc95589ba418d3d3fa06bf085aaade73" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-71-b"><num>(b)</num><content><p>comply with a requirement imposed under section 55 or 56 <ins class="first" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705"><noteRef uk:name="commentary" href="#key-406bea63a27034c8e67946083076f705" class="commentary"/>; or</ins></p></content></level><level class="para1" eId="section-71-c"><num><ins ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">comply with rules made by the Regulator under paragraph 9A of Schedule 4.</ins></p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-71-a"><num>(a)</num><content><p>comply with a direction given under section 54, <noteRef href="#key-bc95589ba418d3d3fa06bf085aaade73" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-71-b"><num>(b)</num><content><p>comply with a requirement imposed under section 55 or 56 <ins class="first" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705"><noteRef uk:name="commentary" href="#key-406bea63a27034c8e67946083076f705" class="commentary"/>; or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-71-c"><num><ins ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-406bea63a27034c8e67946083076f705-1544460874044" ukl:CommentaryRef="key-406bea63a27034c8e67946083076f705">comply with rules made by the Regulator under paragraph 9A of Schedule 4.</ins></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72"><num>72</num><heading>Publication of compliance failures <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-72-1"><num>(1)</num><content><p>The Payment Systems Regulator may publish details of a compliance failure by a participant in a regulated payment system.</p></content></subsection><subsection eId="section-72-2"><num>(2)</num><content><p>The Payment Systems Regulator may publish details of a sanction imposed under section 73.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-1"><num>(1)</num><content><p>The Payment Systems Regulator may publish details of a compliance failure by a participant in a regulated payment system.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-2"><num>(2)</num><content><p>The Payment Systems Regulator may publish details of a sanction imposed under section 73.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73"><num>73</num><heading>Penalties</heading><subsection eId="section-73-1"><num>(1)</num><content><p>The Payment Systems Regulator may require a participant in a regulated payment system to pay a penalty in respect of a compliance failure.</p></content></subsection><subsection eId="section-73-2"><num>(2)</num><intro><p>A penalty—</p></intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content><p>must be paid to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content><p>may be enforced by the Payment Systems Regulator as a debt.</p></content></level></subsection><subsection eId="section-73-3"><num>(3)</num><intro><p>The Payment Systems Regulator must prepare a statement of the principles which it will apply in determining—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p>whether to impose a penalty, and</p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p>the amount of a penalty.</p></content></level></subsection><subsection eId="section-73-4"><num>(4)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p>publish the statement on its website,</p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p>send a copy to the Treasury,</p></content></level><level class="para1" eId="section-73-4-c"><num>(c)</num><content><p>review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and</p></content></level><level class="para1" eId="section-73-4-d"><num>(d)</num><content><p>in applying the statement to a compliance failure, apply the version in force when the compliance failure occurred.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-1"><num>(1)</num><content><p>The Payment Systems Regulator may require a participant in a regulated payment system to pay a penalty in respect of a compliance failure.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-2"><num>(2)</num><intro><p>A penalty—</p></intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content><p>must be paid to the Payment Systems Regulator, and</p></content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content><p>may be enforced by the Payment Systems Regulator as a debt.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-2-a"><num>(a)</num><content><p>must be paid to the Payment Systems Regulator, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-2-b"><num>(b)</num><content><p>may be enforced by the Payment Systems Regulator as a debt.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-3"><num>(3)</num><intro><p>The Payment Systems Regulator must prepare a statement of the principles which it will apply in determining—</p></intro><level class="para1" eId="section-73-3-a"><num>(a)</num><content><p>whether to impose a penalty, and</p></content></level><level class="para1" eId="section-73-3-b"><num>(b)</num><content><p>the amount of a penalty.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-3-a"><num>(a)</num><content><p>whether to impose a penalty, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-3-b"><num>(b)</num><content><p>the amount of a penalty.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-4"><num>(4)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-73-4-a"><num>(a)</num><content><p>publish the statement on its website,</p></content></level><level class="para1" eId="section-73-4-b"><num>(b)</num><content><p>send a copy to the Treasury,</p></content></level><level class="para1" eId="section-73-4-c"><num>(c)</num><content><p>review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and</p></content></level><level class="para1" eId="section-73-4-d"><num>(d)</num><content><p>in applying the statement to a compliance failure, apply the version in force when the compliance failure occurred.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-4-a"><num>(a)</num><content><p>publish the statement on its website,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-4-b"><num>(b)</num><content><p>send a copy to the Treasury,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-4-c"><num>(c)</num><content><p>review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-4-d"><num>(d)</num><content><p>in applying the statement to a compliance failure, apply the version in force when the compliance failure occurred.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74"><num>74</num><heading>Warning notices</heading><subsection eId="section-74-1"><num>(1)</num><intro><p>Before imposing a sanction on any person the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-74-1-a"><num>(a)</num><content><p>give the person a notice in writing (a “warning notice”),</p></content></level><level class="para1" eId="section-74-1-b"><num>(b)</num><content><p>give the person at least 21 days to make representations,</p></content></level><level class="para1" eId="section-74-1-c"><num>(c)</num><content><p>consider any representations made, and</p></content></level><level class="para1" eId="section-74-1-d"><num>(d)</num><content><p>as soon as is reasonably practicable, give the person a notice in writing stating whether or not it intends to impose the sanction.</p></content></level></subsection><subsection eId="section-74-2"><num>(2)</num><intro><p>In subsection (1) any reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-1"><num>(1)</num><intro><p>Before imposing a sanction on any person the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-74-1-a"><num>(a)</num><content><p>give the person a notice in writing (a “warning notice”),</p></content></level><level class="para1" eId="section-74-1-b"><num>(b)</num><content><p>give the person at least 21 days to make representations,</p></content></level><level class="para1" eId="section-74-1-c"><num>(c)</num><content><p>consider any representations made, and</p></content></level><level class="para1" eId="section-74-1-d"><num>(d)</num><content><p>as soon as is reasonably practicable, give the person a notice in writing stating whether or not it intends to impose the sanction.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-1-a"><num>(a)</num><content><p>give the person a notice in writing (a “warning notice”),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-1-b"><num>(b)</num><content><p>give the person at least 21 days to make representations,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-1-c"><num>(c)</num><content><p>consider any representations made, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-1-d"><num>(d)</num><content><p>as soon as is reasonably practicable, give the person a notice in writing stating whether or not it intends to impose the sanction.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-2"><num>(2)</num><intro><p>In subsection (1) any reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75"><num>75</num><heading>Injunctions</heading><subsection eId="section-75-1"><num>(1)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-1-a"><num>(a)</num><content><p>that there is a reasonable likelihood that there will be a compliance failure, or</p></content></level><level class="para1" eId="section-75-1-b"><num>(b)</num><content><p>that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,</p></content></level><wrapUp><p>the court may make an order restraining the conduct constituting the failure.</p></wrapUp></subsection><subsection eId="section-75-2"><num>(2)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-2-a"><num>(a)</num><content><p>that there has been a compliance failure by a participant in a regulated payment system, and</p></content></level><level class="para1" eId="section-75-2-b"><num>(b)</num><content><p>that there are steps which could be taken for remedying the failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-75-3"><num>(3)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-3-a"><num>(a)</num><content><p>that there may have been a compliance failure by a participant in a regulated payment system, or</p></content></level><level class="para1" eId="section-75-3-b"><num>(b)</num><content><p>that a person may have been knowingly concerned in a compliance failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-75-4"><num>(4)</num><intro><p>The jurisdiction conferred by this section is exercisable—</p></intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content><p>in England and Wales and Northern Ireland, by the High Court, and</p></content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content><p>in Scotland, by the Court of Session.</p></content></level></subsection><subsection eId="section-75-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-75-5-a"><num>(a)</num><content><p>references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,</p></content></level><level class="para1" eId="section-75-5-b"><num>(b)</num><content><p>references to remedying a failure include mitigating its effect, and</p></content></level><level class="para1" eId="section-75-5-c"><num>(c)</num><content><p>references to dealing with assets include disposing of them.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-1"><num>(1)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-1-a"><num>(a)</num><content><p>that there is a reasonable likelihood that there will be a compliance failure, or</p></content></level><level class="para1" eId="section-75-1-b"><num>(b)</num><content><p>that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,</p></content></level><wrapUp><p>the court may make an order restraining the conduct constituting the failure.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-1-a"><num>(a)</num><content><p>that there is a reasonable likelihood that there will be a compliance failure, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-1-b"><num>(b)</num><content><p>that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-2"><num>(2)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-2-a"><num>(a)</num><content><p>that there has been a compliance failure by a participant in a regulated payment system, and</p></content></level><level class="para1" eId="section-75-2-b"><num>(b)</num><content><p>that there are steps which could be taken for remedying the failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-2-a"><num>(a)</num><content><p>that there has been a compliance failure by a participant in a regulated payment system, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-2-b"><num>(b)</num><content><p>that there are steps which could be taken for remedying the failure,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-3"><num>(3)</num><intro><p>If, on the application of the Payment Systems Regulator, the court is satisfied—</p></intro><level class="para1" eId="section-75-3-a"><num>(a)</num><content><p>that there may have been a compliance failure by a participant in a regulated payment system, or</p></content></level><level class="para1" eId="section-75-3-b"><num>(b)</num><content><p>that a person may have been knowingly concerned in a compliance failure,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-3-a"><num>(a)</num><content><p>that there may have been a compliance failure by a participant in a regulated payment system, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-3-b"><num>(b)</num><content><p>that a person may have been knowingly concerned in a compliance failure,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-4"><num>(4)</num><intro><p>The jurisdiction conferred by this section is exercisable—</p></intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content><p>in England and Wales and Northern Ireland, by the High Court, and</p></content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content><p>in Scotland, by the Court of Session.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-4-a"><num>(a)</num><content><p>in England and Wales and Northern Ireland, by the High Court, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-4-b"><num>(b)</num><content><p>in Scotland, by the Court of Session.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-5"><num>(5)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-75-5-a"><num>(a)</num><content><p>references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,</p></content></level><level class="para1" eId="section-75-5-b"><num>(b)</num><content><p>references to remedying a failure include mitigating its effect, and</p></content></level><level class="para1" eId="section-75-5-c"><num>(c)</num><content><p>references to dealing with assets include disposing of them.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-5-a"><num>(a)</num><content><p>references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-5-b"><num>(b)</num><content><p>references to remedying a failure include mitigating its effect, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-5-c"><num>(c)</num><content><p>references to dealing with assets include disposing of them.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76"><num>76</num><heading>Appeals: general</heading><subsection eId="section-76-1"><num>(1)</num><intro><p>A person who is affected by any of the following decisions of the Payment Systems Regulator may appeal against the decision—</p></intro><level class="para1" eId="section-76-1-a"><num>(a)</num><content><p>a decision to give a direction under section 54 (other than a general direction),</p></content></level><level class="para1" eId="section-76-1-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55 (other than a generally-imposed requirement),</p></content></level><level class="para1" eId="section-76-1-c"><num>(c)</num><content><p>a decision to exercise its power under section 56, 57 or 58,</p></content></level><level class="para1" eId="section-76-1-d"><num>(d)</num><content><p>a decision to impose a sanction.</p></content></level></subsection><subsection eId="section-76-2"><num>(2)</num><intro><p>In subsection (1) the reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-76-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-76-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection><subsection eId="section-76-3"><num>(3)</num><content><p>If the decision is a CAT-appealable decision, the appeal must be made to the Competition Appeal Tribunal in accordance with section 77.</p></content></subsection><subsection eId="section-76-4"><num>(4)</num><intro><p>A “<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content><p>a decision to give a direction under section 54,</p></content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55, or</p></content></level><level class="para1" eId="section-76-4-c"><num>(c)</num><content><p>a decision to publish details under section 72(1).</p></content></level></subsection><subsection eId="section-76-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-76-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-76-7"><num>(7)</num><intro><p>A “<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-7-a"><num>(a)</num><content><p>a decision to impose a requirement under section 56,</p></content></level><level class="para1" eId="section-76-7-b"><num>(b)</num><content><p>a decision to vary an agreement under section 57, or</p></content></level><level class="para1" eId="section-76-7-c"><num>(c)</num><content><p>a decision to impose a requirement under section 58.</p></content></level></subsection><subsection eId="section-76-8"><num>(8)</num><content><p>The permission of the CMA is required for an appeal to be made in accordance with section 79.</p></content></subsection><subsection eId="section-76-9"><num>(9)</num><intro><p>The CMA may refuse permission for an appeal only if—</p></intro><level class="para1" eId="section-76-9-a"><num>(a)</num><content><p>the appeal is made for reasons that are trivial or vexatious, or</p></content></level><level class="para1" eId="section-76-9-b"><num>(b)</num><content><p>the appeal has no reasonable prospect of success.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-1"><num>(1)</num><intro><p>A person who is affected by any of the following decisions of the Payment Systems Regulator may appeal against the decision—</p></intro><level class="para1" eId="section-76-1-a"><num>(a)</num><content><p>a decision to give a direction under section 54 (other than a general direction),</p></content></level><level class="para1" eId="section-76-1-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55 (other than a generally-imposed requirement),</p></content></level><level class="para1" eId="section-76-1-c"><num>(c)</num><content><p>a decision to exercise its power under section 56, 57 or 58,</p></content></level><level class="para1" eId="section-76-1-d"><num>(d)</num><content><p>a decision to impose a sanction.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-1-a"><num>(a)</num><content><p>a decision to give a direction under section 54 (other than a general direction),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-1-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55 (other than a generally-imposed requirement),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-1-c"><num>(c)</num><content><p>a decision to exercise its power under section 56, 57 or 58,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-1-d"><num>(d)</num><content><p>a decision to impose a sanction.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-2"><num>(2)</num><intro><p>In subsection (1) the reference to imposing a sanction is a reference to—</p></intro><level class="para1" eId="section-76-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level><level class="para1" eId="section-76-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-2-a"><num>(a)</num><content><p>publishing details under section 72(1), or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-2-b"><num>(b)</num><content><p>requiring the payment of a penalty under section 73.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-3"><num>(3)</num><content><p>If the decision is a CAT-appealable decision, the appeal must be made to the Competition Appeal Tribunal in accordance with section 77.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-4"><num>(4)</num><intro><p>A “<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content><p>a decision to give a direction under section 54,</p></content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55, or</p></content></level><level class="para1" eId="section-76-4-c"><num>(c)</num><content><p>a decision to publish details under section 72(1).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-4-a"><num>(a)</num><content><p>a decision to give a direction under section 54,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-4-b"><num>(b)</num><content><p>a decision to impose a requirement under section 55, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-4-c"><num>(c)</num><content><p>a decision to publish details under section 72(1).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-7"><num>(7)</num><intro><p>A “<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” means—</p></intro><level class="para1" eId="section-76-7-a"><num>(a)</num><content><p>a decision to impose a requirement under section 56,</p></content></level><level class="para1" eId="section-76-7-b"><num>(b)</num><content><p>a decision to vary an agreement under section 57, or</p></content></level><level class="para1" eId="section-76-7-c"><num>(c)</num><content><p>a decision to impose a requirement under section 58.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-7-a"><num>(a)</num><content><p>a decision to impose a requirement under section 56,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-7-b"><num>(b)</num><content><p>a decision to vary an agreement under section 57, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-7-c"><num>(c)</num><content><p>a decision to impose a requirement under section 58.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-8"><num>(8)</num><content><p>The permission of the CMA is required for an appeal to be made in accordance with section 79.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-9"><num>(9)</num><intro><p>The CMA may refuse permission for an appeal only if—</p></intro><level class="para1" eId="section-76-9-a"><num>(a)</num><content><p>the appeal is made for reasons that are trivial or vexatious, or</p></content></level><level class="para1" eId="section-76-9-b"><num>(b)</num><content><p>the appeal has no reasonable prospect of success.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-9-a"><num>(a)</num><content><p>the appeal is made for reasons that are trivial or vexatious, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-76-9-b"><num>(b)</num><content><p>the appeal has no reasonable prospect of success.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77"><num>77</num><heading>Appeals to Competition Appeal Tribunal</heading><subsection eId="section-77-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a CAT-appealable decision.</p></content></subsection><subsection eId="section-77-2"><num>(2)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection><subsection eId="section-77-3"><num>(3)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection><subsection eId="section-77-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-77-5"><num>(5)</num><intro><p>The Tribunal must either—</p></intro><level class="para1" eId="section-77-5-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-77-5-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection><subsection eId="section-77-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-77-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-77-8"><num>(8)</num><content><p>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).</p></content></subsection><subsection eId="section-77-9"><num>(9)</num><content><p>The effect of any other CAT-appealable decision is not suspended by the making of an appeal against the decision.</p></content></subsection><subsection eId="section-77-10"><num>(10)</num><content><p>In this section and section 78 “<term refersTo="#term-tribunal-rules" eId="term-tribunal-rules">Tribunal rules</term>” means rules under section 15 of the Enterprise Act 2002.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a CAT-appealable decision.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-2"><num>(2)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-3"><num>(3)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-5"><num>(5)</num><intro><p>The Tribunal must either—</p></intro><level class="para1" eId="section-77-5-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-77-5-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-77-5-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-77-5-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-7"><num>(7)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-8"><num>(8)</num><content><p>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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-9"><num>(9)</num><content><p>The effect of any other CAT-appealable decision is not suspended by the making of an appeal against the decision.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-10"><num>(10)</num><content><p>In this section and section 78 “<term refersTo="#term-tribunal-rules" eId="term-tribunal-rules">Tribunal rules</term>” means rules under section 15 of the Enterprise Act 2002.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78"><num>78</num><heading>Appeals in relation to penalties</heading><subsection eId="section-78-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a decision to impose a penalty under section 73.</p></content></subsection><subsection eId="section-78-2"><num>(2)</num><intro><p>The person may appeal against—</p></intro><level class="para1" eId="section-78-2-a"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level><level class="para1" eId="section-78-2-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1" eId="section-78-2-c"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection><subsection eId="section-78-3"><num>(3)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection><subsection eId="section-78-4"><num>(4)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection><subsection eId="section-78-5"><num>(5)</num><intro><p>The Tribunal may do any of the following—</p></intro><level class="para1" eId="section-78-5-a"><num>(a)</num><content><p>uphold the penalty;</p></content></level><level class="para1" eId="section-78-5-b"><num>(b)</num><content><p>set aside the penalty;</p></content></level><level class="para1" eId="section-78-5-c"><num>(c)</num><content><p>substitute for the penalty a penalty of an amount decided by the Tribunal;</p></content></level><level class="para1" eId="section-78-5-d"><num>(d)</num><content><p>vary any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection><subsection eId="section-78-6"><num>(6)</num><content><p>If an appeal is made in accordance with this section, the penalty is not required to be paid until the appeal has been determined.</p></content></subsection><subsection eId="section-78-7"><num>(7)</num><content><p>Subsections (2), (5) and (6) do not restrict the power to make Tribunal rules; and those subsections are subject to Tribunal rules.</p></content></subsection><subsection eId="section-78-8"><num>(8)</num><content><p>Except as provided by this section, the validity of the penalty may not be questioned by any legal proceedings whatever.</p></content></subsection><subsection eId="section-78-9"><num>(9)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition Appeal Tribunal (“<term refersTo="#term-the-tribunal" eId="term-the-tribunal">the Tribunal</term>”) against a decision to impose a penalty under section 73.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-2"><num>(2)</num><intro><p>The person may appeal against—</p></intro><level class="para1" eId="section-78-2-a"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level><level class="para1" eId="section-78-2-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1" eId="section-78-2-c"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-2-a"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-2-b"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-2-c"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-3"><num>(3)</num><content><p>The means of making an appeal is by sending the Tribunal a notice of appeal in accordance with Tribunal rules.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-4"><num>(4)</num><content><p>The notice of appeal must be sent within the period specified, in relation to the decision appealed against, in those rules.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-5"><num>(5)</num><intro><p>The Tribunal may do any of the following—</p></intro><level class="para1" eId="section-78-5-a"><num>(a)</num><content><p>uphold the penalty;</p></content></level><level class="para1" eId="section-78-5-b"><num>(b)</num><content><p>set aside the penalty;</p></content></level><level class="para1" eId="section-78-5-c"><num>(c)</num><content><p>substitute for the penalty a penalty of an amount decided by the Tribunal;</p></content></level><level class="para1" eId="section-78-5-d"><num>(d)</num><content><p>vary any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-5-a"><num>(a)</num><content><p>uphold the penalty;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-5-b"><num>(b)</num><content><p>set aside the penalty;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-5-c"><num>(c)</num><content><p>substitute for the penalty a penalty of an amount decided by the Tribunal;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-5-d"><num>(d)</num><content><p>vary any date by which the penalty, or any part of it, is required to be paid.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-6"><num>(6)</num><content><p>If an appeal is made in accordance with this section, the penalty is not required to be paid until the appeal has been determined.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-7"><num>(7)</num><content><p>Subsections (2), (5) and (6) do not restrict the power to make Tribunal rules; and those subsections are subject to Tribunal rules.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-8"><num>(8)</num><content><p>Except as provided by this section, the validity of the penalty may not be questioned by any legal proceedings whatever.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-9"><num>(9)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79"><num>79</num><heading>Appeals to Competition and Markets Authority</heading><subsection eId="section-79-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition and Markets Authority (“the CMA”) against a CMA-appealable decision.</p></content></subsection><subsection eId="section-79-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-79-3"><num>(3)</num><intro><p>In determining the appeal the CMA—</p></intro><level class="para1" eId="section-79-3-a"><num>(a)</num><content><p>may have regard to any matter to which the Payment Systems Regulator was not able to have regard in relation to the decision, but</p></content></level><level class="para1" eId="section-79-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-79-4"><num>(4)</num><intro><p>The CMA must either—</p></intro><level class="para1" eId="section-79-4-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-79-4-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection><subsection eId="section-79-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-79-5-a"><num>(a)</num><content><p>that the Payment Systems Regulator failed properly to have regard to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-b"><num>(b)</num><content><p>that the Payment Systems Regulator failed to give the appropriate weight to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-c"><num>(c)</num><content><p>that the decision was based, wholly or partly, on an error of fact;</p></content></level><level class="para1" eId="section-79-5-d"><num>(d)</num><content><p>that the decision was wrong in law.</p></content></level></subsection><subsection eId="section-79-6"><num>(6)</num><intro><p>If the CMA quashes the whole or part of a decision, it may either—</p></intro><level class="para1" eId="section-79-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-79-6-b"><num>(b)</num><content><p>substitute its own decision for that of the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-79-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-79-8"><num>(8)</num><content><p>Schedule 5 contains further provision about the making of appeals in accordance with this section.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-1"><num>(1)</num><content><p>This section applies where a person is appealing to the Competition and Markets Authority (“the CMA”) against a CMA-appealable decision.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-3"><num>(3)</num><intro><p>In determining the appeal the CMA—</p></intro><level class="para1" eId="section-79-3-a"><num>(a)</num><content><p>may have regard to any matter to which the Payment Systems Regulator was not able to have regard in relation to the decision, but</p></content></level><level class="para1" eId="section-79-3-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-3-a"><num>(a)</num><content><p>may have regard to any matter to which the Payment Systems Regulator was not able to have regard in relation to the decision, but</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-3-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-4"><num>(4)</num><intro><p>The CMA must either—</p></intro><level class="para1" eId="section-79-4-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level><level class="para1" eId="section-79-4-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-4-a"><num>(a)</num><content><p>dismiss the appeal, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-4-b"><num>(b)</num><content><p>quash the whole or part of the decision to which the appeal relates.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-79-5-a"><num>(a)</num><content><p>that the Payment Systems Regulator failed properly to have regard to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-b"><num>(b)</num><content><p>that the Payment Systems Regulator failed to give the appropriate weight to any matter mentioned in subsection (2);</p></content></level><level class="para1" eId="section-79-5-c"><num>(c)</num><content><p>that the decision was based, wholly or partly, on an error of fact;</p></content></level><level class="para1" eId="section-79-5-d"><num>(d)</num><content><p>that the decision was wrong in law.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-5-a"><num>(a)</num><content><p>that the Payment Systems Regulator failed properly to have regard to any matter mentioned in subsection (2);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-5-b"><num>(b)</num><content><p>that the Payment Systems Regulator failed to give the appropriate weight to any matter mentioned in subsection (2);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-5-c"><num>(c)</num><content><p>that the decision was based, wholly or partly, on an error of fact;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-5-d"><num>(d)</num><content><p>that the decision was wrong in law.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-6"><num>(6)</num><intro><p>If the CMA quashes the whole or part of a decision, it may either—</p></intro><level class="para1" eId="section-79-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-79-6-b"><num>(b)</num><content><p>substitute its own decision for that of the Payment Systems Regulator.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-6-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-6-b"><num>(b)</num><content><p>substitute its own decision for that of the Payment Systems Regulator.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-7"><num>(7)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-8"><num>(8)</num><content><p>Schedule 5 contains further provision about the making of appeals in accordance with this section.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80"><num>80</num><heading>Enforcement of requirement to dispose of interest in payment system</heading><subsection eId="section-80-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-80-2"><num>(2)</num><intro><p>Civil proceedings may not be brought to enforce a requirement imposed under that section unless—</p></intro><level class="para1" eId="section-80-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-80-2-b"><num>(b)</num><content><p>the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-2"><num>(2)</num><intro><p>Civil proceedings may not be brought to enforce a requirement imposed under that section unless—</p></intro><level class="para1" eId="section-80-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-80-2-b"><num>(b)</num><content><p>the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-2-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-2-b"><num>(b)</num><content><p>the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-information-and-investigation-powers"><heading><i>Information and investigation powers</i></heading><section eId="section-81"><num>81</num><heading>Power to obtain information or documents</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>The Payment Systems Regulator may by notice in writing require a person to provide information or documents—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>which the Payment Systems Regulator thinks will help the Treasury in determining whether to make a designation order, or</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>which the Payment Systems Regulator otherwise requires in connection with its functions under this Part.</p></content></level></subsection><subsection eId="section-81-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-81-3"><num>(3)</num><intro><p>A notice under subsection (1) may require information or documents to be provided—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p>in a specified form or manner;</p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>at a specified time;</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in respect of a specified period.</p></content></level></subsection></section><section eId="section-82"><num>82</num><heading>Reports by skilled persons</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>appoint a person to provide the Payment Systems Regulator with a report on the matter concerned.</p></content></level><wrapUp><p>The person whose participation in the payment system is to be the subject of the report is referred to in this section as “<term refersTo="#term-the-relevant-participant" eId="term-the-relevant-participant">the relevant participant</term>”.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><content><p>The power conferred by subsection (1)(a) is exercisable by giving the relevant participant a notice in writing.</p></content></subsection><subsection eId="section-82-3"><num>(3)</num><content><p>When acting under subsection (1)(a), the Payment Systems Regulator may require the report to be in a form specified in the notice.</p></content></subsection><subsection eId="section-82-4"><num>(4)</num><content><p>The Payment Systems Regulator must give written notice of an appointment under subsection (1)(b) to the relevant participant.</p></content></subsection><subsection eId="section-82-5"><num>(5)</num><intro><p>A person appointed to make a report under this section—</p></intro><level class="para1" eId="section-82-5-a"><num>(a)</num><content><p>must be a person appearing to the Payment Systems Regulator to have the skills necessary to make a report on the matter concerned, and</p></content></level><level class="para1" eId="section-82-5-b"><num>(b)</num><content><p>where the appointment is to be made by the relevant participant, must be a person nominated or approved by the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-82-6"><num>(6)</num><intro><p>It is the duty of—</p></intro><level class="para1" eId="section-82-6-a"><num>(a)</num><content><p>the relevant participant, and</p></content></level><level class="para1" eId="section-82-6-b"><num>(b)</num><content><p>any person who is providing (or who has at any time provided) services to the relevant participant in relation to the matter concerned,</p></content></level><wrapUp><p>to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.</p></wrapUp></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-82-8"><num>(8)</num><content><p>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).</p></content></subsection></section><section eId="section-83"><num>83</num><heading>Appointment of persons to conduct investigations</heading><subsection eId="section-83-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><content><p>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.</p></content></subsection></section><section eId="section-84"><num>84</num><heading>Investigations: general</heading><subsection eId="section-84-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-84-2"><num>(2)</num><content><p>The Payment Systems Regulator must give written notice of the appointment of an investigator to the person who is the subject of the investigation.</p></content></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>Subsections (2) and (9) do not apply if—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>the investigator is appointed under subsection (2) of section 83.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>A notice under subsection (2) must—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><content><p>specify the provision under which the investigator was appointed, and</p></content></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>state the reason for the appointment.</p></content></level></subsection><subsection eId="section-84-5"><num>(5)</num><intro><p>Nothing prevents the Payment Systems Regulator from appointing as an investigator—</p></intro><level class="para1" eId="section-84-5-a"><num>(a)</num><content><p>a member of its staff, or</p></content></level><level class="para1" eId="section-84-5-b"><num>(b)</num><content><p>a member of staff of the FCA.</p></content></level></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>An investigator who conducts an investigation must make a report of the investigation to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><intro><p>The Payment Systems Regulator may, by a direction to an investigator, control—</p></intro><level class="para1" eId="section-84-7-a"><num>(a)</num><content><p>the scope of the investigation,</p></content></level><level class="para1" eId="section-84-7-b"><num>(b)</num><content><p>the period during which the investigation is to be conducted,</p></content></level><level class="para1" eId="section-84-7-c"><num>(c)</num><content><p>the conduct of the investigation, and</p></content></level><level class="para1" eId="section-84-7-d"><num>(d)</num><content><p>the reporting of the investigation.</p></content></level></subsection><subsection eId="section-84-8"><num>(8)</num><intro><p>A direction may, in particular—</p></intro><level class="para1" eId="section-84-8-a"><num>(a)</num><content><p>confine the investigation to particular matters;</p></content></level><level class="para1" eId="section-84-8-b"><num>(b)</num><content><p>extend the investigation to additional matters;</p></content></level><level class="para1" eId="section-84-8-c"><num>(c)</num><content><p>require the investigator to discontinue the investigation or to take only those steps that are specified in the direction;</p></content></level><level class="para1" eId="section-84-8-d"><num>(d)</num><content><p>require the investigator to make such interim reports as are so specified.</p></content></level></subsection><subsection eId="section-84-9"><num>(9)</num><content><p>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.</p></content></subsection></section><section eId="section-85"><num>85</num><heading>Powers of persons appointed under section 83</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>An investigator may require any person within subsection (2)—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>to attend before the investigator at a specified time and place and answer questions, or</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>otherwise to provide any information which the investigator requires.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>The persons referred to in subsection (1) are—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>the person who is the subject of the investigation (“the person under investigation”);</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>any person connected with the person under investigation;</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><content><p>An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.</p></content></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>a member of A's group,</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>a controller of A, or</p></content></level><level class="para1" eId="section-85-6-c"><num>(c)</num><content><p>a partnership of which A is a member.</p></content></level></subsection><subsection eId="section-85-7"><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person conducting an investigation under section 83;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in a notice in writing.</p></content></hcontainer></subsection></section><section eId="section-86"><num>86</num><heading>Information and documents: supplemental provisions</heading><subsection eId="section-86-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-relevant-document" eId="term-relevant-document">relevant document</term>” means a document produced in response to a requirement imposed under section 81 or 85.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content><p>it appears that the document is in the possession of another person,</p></content></level><wrapUp><p>the power may be exercised in relation to that other person.</p></wrapUp></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>Any person to whom a relevant document is produced may—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>take copies or extracts from the document, or</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>require the person producing the document, or any relevant person (see subsection (4)), to provide an explanation of the document.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-person" eId="term-relevant-person">Relevant person</term>”, in relation to a person who is required to produce a document, means a person who—</p></intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content><p>has been or is or is proposed to be a director or controller of that person,</p></content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content><p>has been or is an auditor of that person,</p></content></level><level class="para1" eId="section-86-4-c"><num>(c)</num><content><p>has been or is an actuary, accountant or lawyer appointed or instructed by that person, or</p></content></level><level class="para1" eId="section-86-4-d"><num>(d)</num><content><p>has been or is an employee of that person.</p></content></level></subsection><subsection eId="section-86-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>If the person to whom a relevant document is produced has reasonable grounds for believing—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>that the document may have to be produced for the purposes of any legal proceedings, and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>that it might otherwise be unavailable for those purposes,</p></content></level><wrapUp><p>it may be retained until the proceedings are concluded.</p></wrapUp></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><content><p>A lawyer may be required under section 81 or 85 or this section to provide the name and address of a client.</p></content></subsection><subsection eId="section-86-9"><num>(9)</num><intro><p>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—</p></intro><level class="para1" eId="section-86-9-a"><num>(a)</num><content><p>the person is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-b"><num>(b)</num><content><p>the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-c"><num>(c)</num><content><p>the person to whom the obligation of confidence is owed consents to the disclosure or production, or</p></content></level><level class="para1" eId="section-86-9-d"><num>(d)</num><content><p>the imposing on the person of a requirement with respect to such information or document has been specifically authorised by the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-86-10"><num>(10)</num><content><p>If a person claims a lien on a document, its production under section 81 or 85 does not affect the lien.</p></content></subsection><subsection eId="section-86-11"><num>(11)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section><section eId="section-87"><num>87</num><heading>Admissibility of statements made to investigators</heading><subsection eId="section-87-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-87-2"><num>(2)</num><intro><p>But in criminal proceedings in which that person is charged with an offence to which this subsection applies—</p></intro><level class="para1" eId="section-87-2-a"><num>(a)</num><content><p>no evidence relating to the statement may be adduced by or on behalf of the prosecution, and</p></content></level><level class="para1" eId="section-87-2-b"><num>(b)</num><content><p>no question relating to the statement may be asked by or on behalf of the prosecution,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>Subsection (2) applies to any offence other than—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>an offence under section 90(6);</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>an offence under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-d"><num>(d)</num><content><p>an offence under Article 10 of the Perjury (Northern Ireland) Order 1979.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means a requirement imposed by an investigator under section 85 or 86;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section><section eId="section-88"><num>88</num><heading>Entry of premises under warrant</heading><subsection eId="section-88-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>The first set of conditions is—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><intro><p>that on the premises specified in the warrant—</p></intro><level class="para2" eId="section-88-2-b-i"><num>(i)</num><content><p>there are documents which have been required, or</p></content></level><level class="para2" eId="section-88-2-b-ii"><num>(ii)</num><content><p>there is information which has been required.</p></content></level></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>In this section “<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>a requirement imposed by the Payment Systems Regulator under section 81 or 86, or</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>a requirement imposed by an investigator under section 85 or 86.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>The second set of conditions is—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>that the premises specified in the warrant are premises of a participant in a regulated payment system,</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><content><p>that there are on the premises documents or information in relation to which an information requirement could be imposed, and</p></content></level><level class="para1" eId="section-88-4-c"><num>(c)</num><intro><p>that if such a requirement were to be imposed—</p></intro><level class="para2" eId="section-88-4-c-i"><num>(i)</num><content><p>it would not be complied with, or</p></content></level><level class="para2" eId="section-88-4-c-ii"><num>(ii)</num><content><p>the documents or information to which it related would be removed, tampered with or destroyed.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>A warrant under this section authorises a constable—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>to enter the premises specified in the warrant,</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>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 (“<term refersTo="#term-the-relevant-kind" eId="term-the-relevant-kind">the relevant kind</term>”) 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,</p></content></level><level class="para1" eId="section-88-5-c"><num>(c)</num><content><p>to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,</p></content></level><level class="para1" eId="section-88-5-d"><num>(d)</num><content><p>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</p></content></level><level class="para1" eId="section-88-5-e"><num>(e)</num><content><p>to use such force as may be reasonably necessary.</p></content></level></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>A warrant under this section may be executed by any constable.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>The warrant may authorise persons to accompany any constable who is executing it.</p></content></subsection><subsection eId="section-88-8"><num>(8)</num><intro><p>The powers in subsection (5) may be exercised by a person who—</p></intro><level class="para1" eId="section-88-8-a"><num>(a)</num><content><p>is authorised by the warrant to accompany a constable, and</p></content></level><level class="para1" eId="section-88-8-b"><num>(b)</num><content><p>exercises those powers in the company of, and under the supervision of, a constable.</p></content></level></subsection><subsection eId="section-88-9"><num>(9)</num><content><p>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.</p></content></subsection><subsection eId="section-88-10"><num>(10)</num><content><p>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.</p></content></subsection><subsection eId="section-88-11"><num>(11)</num><intro><p>This section has effect in relation to Scotland as if—</p></intro><level class="para1" eId="section-88-11-a"><num>(a)</num><content><p>for any reference to a justice of the peace there were substituted a reference to a justice of the peace or a sheriff, and</p></content></level><level class="para1" eId="section-88-11-b"><num>(b)</num><content><p>for any reference to information on oath there were substituted a reference to evidence on oath.</p></content></level></subsection><subsection eId="section-88-12"><num>(12)</num><content><p>In this section “<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></subsection></section><section eId="section-89"><num>89</num><heading>Retention of documents taken under section 88</heading><subsection eId="section-89-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-89-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-89-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>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).</p></content></subsection></section><section eId="section-90"><num>90</num><heading>Enforcement of information and investigation powers</heading><subsection eId="section-90-1"><num>(1)</num><content><p>If a person other than an investigator (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”) 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.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-90-3"><num>(3)</num><content><p>In subsection (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>causes or permits the falsification, concealment, destruction or disposal of such a document.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>A person is guilty of an offence if the person, in purported compliance with a requirement imposed under any of sections 81 to 88—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>provides information which the person knows to be false or misleading in a material particular, or</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>recklessly provides information which is false or misleading in a material particular.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><intro><p>A person guilty of an offence under subsection (4) or (6) is liable—</p></intro><level class="para1" eId="section-90-7-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-90-7-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-268c76c90370644a50625a9db7253fc1-1677579828788" ukl:CommentaryRef="key-268c76c90370644a50625a9db7253fc1"><noteRef uk:name="commentary" href="#key-268c76c90370644a50625a9db7253fc1" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-c74cbd5f885730b5cd7f0e620ea8e748-1658396421172" ukl:CommentaryRef="key-c74cbd5f885730b5cd7f0e620ea8e748"><noteRef uk:name="commentary" href="#key-c74cbd5f885730b5cd7f0e620ea8e748" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-90-7-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-90-7-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-90-7-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection><subsection eId="section-90-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-8-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-90-8-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-90-8-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-90-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-court" eId="term-court">court</term>” means the High Court or, in Scotland, the Court of Session;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81"><num>81</num><heading>Power to obtain information or documents</heading><subsection eId="section-81-1"><num>(1)</num><intro><p>The Payment Systems Regulator may by notice in writing require a person to provide information or documents—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>which the Payment Systems Regulator thinks will help the Treasury in determining whether to make a designation order, or</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>which the Payment Systems Regulator otherwise requires in connection with its functions under this Part.</p></content></level></subsection><subsection eId="section-81-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-81-3"><num>(3)</num><intro><p>A notice under subsection (1) may require information or documents to be provided—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p>in a specified form or manner;</p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>at a specified time;</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in respect of a specified period.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-1"><num>(1)</num><intro><p>The Payment Systems Regulator may by notice in writing require a person to provide information or documents—</p></intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content><p>which the Payment Systems Regulator thinks will help the Treasury in determining whether to make a designation order, or</p></content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content><p>which the Payment Systems Regulator otherwise requires in connection with its functions under this Part.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-a"><num>(a)</num><content><p>which the Payment Systems Regulator thinks will help the Treasury in determining whether to make a designation order, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-b"><num>(b)</num><content><p>which the Payment Systems Regulator otherwise requires in connection with its functions under this Part.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-3"><num>(3)</num><intro><p>A notice under subsection (1) may require information or documents to be provided—</p></intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content><p>in a specified form or manner;</p></content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content><p>at a specified time;</p></content></level><level class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in respect of a specified period.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-3-a"><num>(a)</num><content><p>in a specified form or manner;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-3-b"><num>(b)</num><content><p>at a specified time;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-3-c"><num>(c)</num><content><p>in respect of a specified period.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82"><num>82</num><heading>Reports by skilled persons</heading><subsection eId="section-82-1"><num>(1)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>appoint a person to provide the Payment Systems Regulator with a report on the matter concerned.</p></content></level><wrapUp><p>The person whose participation in the payment system is to be the subject of the report is referred to in this section as “<term refersTo="#term-the-relevant-participant" eId="term-the-relevant-participant">the relevant participant</term>”.</p></wrapUp></subsection><subsection eId="section-82-2"><num>(2)</num><content><p>The power conferred by subsection (1)(a) is exercisable by giving the relevant participant a notice in writing.</p></content></subsection><subsection eId="section-82-3"><num>(3)</num><content><p>When acting under subsection (1)(a), the Payment Systems Regulator may require the report to be in a form specified in the notice.</p></content></subsection><subsection eId="section-82-4"><num>(4)</num><content><p>The Payment Systems Regulator must give written notice of an appointment under subsection (1)(b) to the relevant participant.</p></content></subsection><subsection eId="section-82-5"><num>(5)</num><intro><p>A person appointed to make a report under this section—</p></intro><level class="para1" eId="section-82-5-a"><num>(a)</num><content><p>must be a person appearing to the Payment Systems Regulator to have the skills necessary to make a report on the matter concerned, and</p></content></level><level class="para1" eId="section-82-5-b"><num>(b)</num><content><p>where the appointment is to be made by the relevant participant, must be a person nominated or approved by the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-82-6"><num>(6)</num><intro><p>It is the duty of—</p></intro><level class="para1" eId="section-82-6-a"><num>(a)</num><content><p>the relevant participant, and</p></content></level><level class="para1" eId="section-82-6-b"><num>(b)</num><content><p>any person who is providing (or who has at any time provided) services to the relevant participant in relation to the matter concerned,</p></content></level><wrapUp><p>to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.</p></wrapUp></subsection><subsection eId="section-82-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-82-8"><num>(8)</num><content><p>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).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-1"><num>(1)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-82-1-b"><num>(b)</num><content><p>appoint a person to provide the Payment Systems Regulator with a report on the matter concerned.</p></content></level><wrapUp><p>The person whose participation in the payment system is to be the subject of the report is referred to in this section as “<term refersTo="#term-the-relevant-participant" eId="term-the-relevant-participant">the relevant participant</term>”.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-1-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-1-b"><num>(b)</num><content><p>appoint a person to provide the Payment Systems Regulator with a report on the matter concerned.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-2"><num>(2)</num><content><p>The power conferred by subsection (1)(a) is exercisable by giving the relevant participant a notice in writing.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-3"><num>(3)</num><content><p>When acting under subsection (1)(a), the Payment Systems Regulator may require the report to be in a form specified in the notice.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-4"><num>(4)</num><content><p>The Payment Systems Regulator must give written notice of an appointment under subsection (1)(b) to the relevant participant.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-5"><num>(5)</num><intro><p>A person appointed to make a report under this section—</p></intro><level class="para1" eId="section-82-5-a"><num>(a)</num><content><p>must be a person appearing to the Payment Systems Regulator to have the skills necessary to make a report on the matter concerned, and</p></content></level><level class="para1" eId="section-82-5-b"><num>(b)</num><content><p>where the appointment is to be made by the relevant participant, must be a person nominated or approved by the Payment Systems Regulator.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-5-a"><num>(a)</num><content><p>must be a person appearing to the Payment Systems Regulator to have the skills necessary to make a report on the matter concerned, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-5-b"><num>(b)</num><content><p>where the appointment is to be made by the relevant participant, must be a person nominated or approved by the Payment Systems Regulator.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-6"><num>(6)</num><intro><p>It is the duty of—</p></intro><level class="para1" eId="section-82-6-a"><num>(a)</num><content><p>the relevant participant, and</p></content></level><level class="para1" eId="section-82-6-b"><num>(b)</num><content><p>any person who is providing (or who has at any time provided) services to the relevant participant in relation to the matter concerned,</p></content></level><wrapUp><p>to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-6-a"><num>(a)</num><content><p>the relevant participant, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-6-b"><num>(b)</num><content><p>any person who is providing (or who has at any time provided) services to the relevant participant in relation to the matter concerned,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-7"><num>(7)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-8"><num>(8)</num><content><p>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).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83"><num>83</num><heading>Appointment of persons to conduct investigations</heading><subsection eId="section-83-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-83-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-2"><num>(2)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84"><num>84</num><heading>Investigations: general</heading><subsection eId="section-84-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-84-2"><num>(2)</num><content><p>The Payment Systems Regulator must give written notice of the appointment of an investigator to the person who is the subject of the investigation.</p></content></subsection><subsection eId="section-84-3"><num>(3)</num><intro><p>Subsections (2) and (9) do not apply if—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>the investigator is appointed under subsection (2) of section 83.</p></content></level></subsection><subsection eId="section-84-4"><num>(4)</num><intro><p>A notice under subsection (2) must—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><content><p>specify the provision under which the investigator was appointed, and</p></content></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>state the reason for the appointment.</p></content></level></subsection><subsection eId="section-84-5"><num>(5)</num><intro><p>Nothing prevents the Payment Systems Regulator from appointing as an investigator—</p></intro><level class="para1" eId="section-84-5-a"><num>(a)</num><content><p>a member of its staff, or</p></content></level><level class="para1" eId="section-84-5-b"><num>(b)</num><content><p>a member of staff of the FCA.</p></content></level></subsection><subsection eId="section-84-6"><num>(6)</num><content><p>An investigator who conducts an investigation must make a report of the investigation to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-84-7"><num>(7)</num><intro><p>The Payment Systems Regulator may, by a direction to an investigator, control—</p></intro><level class="para1" eId="section-84-7-a"><num>(a)</num><content><p>the scope of the investigation,</p></content></level><level class="para1" eId="section-84-7-b"><num>(b)</num><content><p>the period during which the investigation is to be conducted,</p></content></level><level class="para1" eId="section-84-7-c"><num>(c)</num><content><p>the conduct of the investigation, and</p></content></level><level class="para1" eId="section-84-7-d"><num>(d)</num><content><p>the reporting of the investigation.</p></content></level></subsection><subsection eId="section-84-8"><num>(8)</num><intro><p>A direction may, in particular—</p></intro><level class="para1" eId="section-84-8-a"><num>(a)</num><content><p>confine the investigation to particular matters;</p></content></level><level class="para1" eId="section-84-8-b"><num>(b)</num><content><p>extend the investigation to additional matters;</p></content></level><level class="para1" eId="section-84-8-c"><num>(c)</num><content><p>require the investigator to discontinue the investigation or to take only those steps that are specified in the direction;</p></content></level><level class="para1" eId="section-84-8-d"><num>(d)</num><content><p>require the investigator to make such interim reports as are so specified.</p></content></level></subsection><subsection eId="section-84-9"><num>(9)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-2"><num>(2)</num><content><p>The Payment Systems Regulator must give written notice of the appointment of an investigator to the person who is the subject of the investigation.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-3"><num>(3)</num><intro><p>Subsections (2) and (9) do not apply if—</p></intro><level class="para1" eId="section-84-3-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-84-3-b"><num>(b)</num><content><p>the investigator is appointed under subsection (2) of section 83.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-3-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-3-b"><num>(b)</num><content><p>the investigator is appointed under subsection (2) of section 83.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-4"><num>(4)</num><intro><p>A notice under subsection (2) must—</p></intro><level class="para1" eId="section-84-4-a"><num>(a)</num><content><p>specify the provision under which the investigator was appointed, and</p></content></level><level class="para1" eId="section-84-4-b"><num>(b)</num><content><p>state the reason for the appointment.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-4-a"><num>(a)</num><content><p>specify the provision under which the investigator was appointed, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-4-b"><num>(b)</num><content><p>state the reason for the appointment.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-5"><num>(5)</num><intro><p>Nothing prevents the Payment Systems Regulator from appointing as an investigator—</p></intro><level class="para1" eId="section-84-5-a"><num>(a)</num><content><p>a member of its staff, or</p></content></level><level class="para1" eId="section-84-5-b"><num>(b)</num><content><p>a member of staff of the FCA.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-5-a"><num>(a)</num><content><p>a member of its staff, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-5-b"><num>(b)</num><content><p>a member of staff of the FCA.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-6"><num>(6)</num><content><p>An investigator who conducts an investigation must make a report of the investigation to the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-7"><num>(7)</num><intro><p>The Payment Systems Regulator may, by a direction to an investigator, control—</p></intro><level class="para1" eId="section-84-7-a"><num>(a)</num><content><p>the scope of the investigation,</p></content></level><level class="para1" eId="section-84-7-b"><num>(b)</num><content><p>the period during which the investigation is to be conducted,</p></content></level><level class="para1" eId="section-84-7-c"><num>(c)</num><content><p>the conduct of the investigation, and</p></content></level><level class="para1" eId="section-84-7-d"><num>(d)</num><content><p>the reporting of the investigation.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-7-a"><num>(a)</num><content><p>the scope of the investigation,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-7-b"><num>(b)</num><content><p>the period during which the investigation is to be conducted,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-7-c"><num>(c)</num><content><p>the conduct of the investigation, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-7-d"><num>(d)</num><content><p>the reporting of the investigation.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-8"><num>(8)</num><intro><p>A direction may, in particular—</p></intro><level class="para1" eId="section-84-8-a"><num>(a)</num><content><p>confine the investigation to particular matters;</p></content></level><level class="para1" eId="section-84-8-b"><num>(b)</num><content><p>extend the investigation to additional matters;</p></content></level><level class="para1" eId="section-84-8-c"><num>(c)</num><content><p>require the investigator to discontinue the investigation or to take only those steps that are specified in the direction;</p></content></level><level class="para1" eId="section-84-8-d"><num>(d)</num><content><p>require the investigator to make such interim reports as are so specified.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-8-a"><num>(a)</num><content><p>confine the investigation to particular matters;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-8-b"><num>(b)</num><content><p>extend the investigation to additional matters;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-8-c"><num>(c)</num><content><p>require the investigator to discontinue the investigation or to take only those steps that are specified in the direction;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-8-d"><num>(d)</num><content><p>require the investigator to make such interim reports as are so specified.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-9"><num>(9)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85"><num>85</num><heading>Powers of persons appointed under section 83</heading><subsection eId="section-85-1"><num>(1)</num><intro><p>An investigator may require any person within subsection (2)—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>to attend before the investigator at a specified time and place and answer questions, or</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>otherwise to provide any information which the investigator requires.</p></content></level></subsection><subsection eId="section-85-2"><num>(2)</num><intro><p>The persons referred to in subsection (1) are—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>the person who is the subject of the investigation (“the person under investigation”);</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>any person connected with the person under investigation;</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-85-3"><num>(3)</num><content><p>An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.</p></content></subsection><subsection eId="section-85-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-85-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-85-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>a member of A's group,</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>a controller of A, or</p></content></level><level class="para1" eId="section-85-6-c"><num>(c)</num><content><p>a partnership of which A is a member.</p></content></level></subsection><subsection eId="section-85-7"><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person conducting an investigation under section 83;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in a notice in writing.</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-1"><num>(1)</num><intro><p>An investigator may require any person within subsection (2)—</p></intro><level class="para1" eId="section-85-1-a"><num>(a)</num><content><p>to attend before the investigator at a specified time and place and answer questions, or</p></content></level><level class="para1" eId="section-85-1-b"><num>(b)</num><content><p>otherwise to provide any information which the investigator requires.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-1-a"><num>(a)</num><content><p>to attend before the investigator at a specified time and place and answer questions, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-1-b"><num>(b)</num><content><p>otherwise to provide any information which the investigator requires.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-2"><num>(2)</num><intro><p>The persons referred to in subsection (1) are—</p></intro><level class="para1" eId="section-85-2-a"><num>(a)</num><content><p>the person who is the subject of the investigation (“the person under investigation”);</p></content></level><level class="para1" eId="section-85-2-b"><num>(b)</num><content><p>any person connected with the person under investigation;</p></content></level><level class="para1" eId="section-85-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-2-a"><num>(a)</num><content><p>the person who is the subject of the investigation (“the person under investigation”);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-2-b"><num>(b)</num><content><p>any person connected with the person under investigation;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-2-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-3"><num>(3)</num><content><p>An investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="section-85-6-a"><num>(a)</num><content><p>a member of A's group,</p></content></level><level class="para1" eId="section-85-6-b"><num>(b)</num><content><p>a controller of A, or</p></content></level><level class="para1" eId="section-85-6-c"><num>(c)</num><content><p>a partnership of which A is a member.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-6-a"><num>(a)</num><content><p>a member of A's group,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-6-b"><num>(b)</num><content><p>a controller of A, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-6-c"><num>(c)</num><content><p>a partnership of which A is a member.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85-7"><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person conducting an investigation under section 83;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in a notice in writing.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-73d386ba1def5c75f138c0248d15a7b6-1695299631997" ukl:CommentaryRef="key-73d386ba1def5c75f138c0248d15a7b6"><noteRef uk:name="commentary" href="#key-73d386ba1def5c75f138c0248d15a7b6" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.</ins> </p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><intro><p>This Schedule applies where—</p></intro><level class="para1" eId="schedule-7-paragraph-1-a"><num>(a)</num><content><p>the court has made an FMI administration order in relation to a company (“the old company”), and</p></content></level><level class="para1" eId="schedule-7-paragraph-1-b"><num>(b)</num><content><p>it is proposed that a transfer within section 115(5) be made to another company (“the new company”).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-1-a"><num>(a)</num><content><p>the court has made an FMI administration order in relation to a company (“the old company”), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-1-b"><num>(b)</num><content><p>it is proposed that a transfer within section 115(5) be made to another company (“the new company”).</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content><p>in Scotland, the Court of Session;</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86"><num>86</num><heading>Information and documents: supplemental provisions</heading><subsection eId="section-86-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-relevant-document" eId="term-relevant-document">relevant document</term>” means a document produced in response to a requirement imposed under section 81 or 85.</p></content></subsection><subsection eId="section-86-2"><num>(2)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content><p>it appears that the document is in the possession of another person,</p></content></level><wrapUp><p>the power may be exercised in relation to that other person.</p></wrapUp></subsection><subsection eId="section-86-3"><num>(3)</num><intro><p>Any person to whom a relevant document is produced may—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>take copies or extracts from the document, or</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>require the person producing the document, or any relevant person (see subsection (4)), to provide an explanation of the document.</p></content></level></subsection><subsection eId="section-86-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-person" eId="term-relevant-person">Relevant person</term>”, in relation to a person who is required to produce a document, means a person who—</p></intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content><p>has been or is or is proposed to be a director or controller of that person,</p></content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content><p>has been or is an auditor of that person,</p></content></level><level class="para1" eId="section-86-4-c"><num>(c)</num><content><p>has been or is an actuary, accountant or lawyer appointed or instructed by that person, or</p></content></level><level class="para1" eId="section-86-4-d"><num>(d)</num><content><p>has been or is an employee of that person.</p></content></level></subsection><subsection eId="section-86-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-86-6"><num>(6)</num><intro><p>If the person to whom a relevant document is produced has reasonable grounds for believing—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>that the document may have to be produced for the purposes of any legal proceedings, and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>that it might otherwise be unavailable for those purposes,</p></content></level><wrapUp><p>it may be retained until the proceedings are concluded.</p></wrapUp></subsection><subsection eId="section-86-7"><num>(7)</num><content><p>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.</p></content></subsection><subsection eId="section-86-8"><num>(8)</num><content><p>A lawyer may be required under section 81 or 85 or this section to provide the name and address of a client.</p></content></subsection><subsection eId="section-86-9"><num>(9)</num><intro><p>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—</p></intro><level class="para1" eId="section-86-9-a"><num>(a)</num><content><p>the person is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-b"><num>(b)</num><content><p>the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-c"><num>(c)</num><content><p>the person to whom the obligation of confidence is owed consents to the disclosure or production, or</p></content></level><level class="para1" eId="section-86-9-d"><num>(d)</num><content><p>the imposing on the person of a requirement with respect to such information or document has been specifically authorised by the Payment Systems Regulator.</p></content></level></subsection><subsection eId="section-86-10"><num>(10)</num><content><p>If a person claims a lien on a document, its production under section 81 or 85 does not affect the lien.</p></content></subsection><subsection eId="section-86-11"><num>(11)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-1"><num>(1)</num><content><p>In this section “<term refersTo="#term-relevant-document" eId="term-relevant-document">relevant document</term>” means a document produced in response to a requirement imposed under section 81 or 85.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-2"><num>(2)</num><intro><p>In a case where—</p></intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content><p>it appears that the document is in the possession of another person,</p></content></level><wrapUp><p>the power may be exercised in relation to that other person.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-2-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-2-b"><num>(b)</num><content><p>it appears that the document is in the possession of another person,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-3"><num>(3)</num><intro><p>Any person to whom a relevant document is produced may—</p></intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content><p>take copies or extracts from the document, or</p></content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content><p>require the person producing the document, or any relevant person (see subsection (4)), to provide an explanation of the document.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-3-a"><num>(a)</num><content><p>take copies or extracts from the document, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-3-b"><num>(b)</num><content><p>require the person producing the document, or any relevant person (see subsection (4)), to provide an explanation of the document.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-4"><num>(4)</num><intro><p>“<term refersTo="#term-relevant-person" eId="term-relevant-person">Relevant person</term>”, in relation to a person who is required to produce a document, means a person who—</p></intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content><p>has been or is or is proposed to be a director or controller of that person,</p></content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content><p>has been or is an auditor of that person,</p></content></level><level class="para1" eId="section-86-4-c"><num>(c)</num><content><p>has been or is an actuary, accountant or lawyer appointed or instructed by that person, or</p></content></level><level class="para1" eId="section-86-4-d"><num>(d)</num><content><p>has been or is an employee of that person.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-4-a"><num>(a)</num><content><p>has been or is or is proposed to be a director or controller of that person,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-4-b"><num>(b)</num><content><p>has been or is an auditor of that person,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-4-c"><num>(c)</num><content><p>has been or is an actuary, accountant or lawyer appointed or instructed by that person, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-4-d"><num>(d)</num><content><p>has been or is an employee of that person.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-6"><num>(6)</num><intro><p>If the person to whom a relevant document is produced has reasonable grounds for believing—</p></intro><level class="para1" eId="section-86-6-a"><num>(a)</num><content><p>that the document may have to be produced for the purposes of any legal proceedings, and</p></content></level><level class="para1" eId="section-86-6-b"><num>(b)</num><content><p>that it might otherwise be unavailable for those purposes,</p></content></level><wrapUp><p>it may be retained until the proceedings are concluded.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-6-a"><num>(a)</num><content><p>that the document may have to be produced for the purposes of any legal proceedings, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-6-b"><num>(b)</num><content><p>that it might otherwise be unavailable for those purposes,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-7"><num>(7)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-8"><num>(8)</num><content><p>A lawyer may be required under section 81 or 85 or this section to provide the name and address of a client.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-9"><num>(9)</num><intro><p>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—</p></intro><level class="para1" eId="section-86-9-a"><num>(a)</num><content><p>the person is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-b"><num>(b)</num><content><p>the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group,</p></content></level><level class="para1" eId="section-86-9-c"><num>(c)</num><content><p>the person to whom the obligation of confidence is owed consents to the disclosure or production, or</p></content></level><level class="para1" eId="section-86-9-d"><num>(d)</num><content><p>the imposing on the person of a requirement with respect to such information or document has been specifically authorised by the Payment Systems Regulator.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-9-a"><num>(a)</num><content><p>the person is the person under investigation or a member of that person's group,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-9-b"><num>(b)</num><content><p>the person to whom the obligation of confidence is owed is the person under investigation or a member of that person's group,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-9-c"><num>(c)</num><content><p>the person to whom the obligation of confidence is owed consents to the disclosure or production, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-9-d"><num>(d)</num><content><p>the imposing on the person of a requirement with respect to such information or document has been specifically authorised by the Payment Systems Regulator.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-10"><num>(10)</num><content><p>If a person claims a lien on a document, its production under section 81 or 85 does not affect the lien.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-11"><num>(11)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-controller" eId="term-controller">controller</term>” has the same meaning as in FSMA 2000 (see section 422 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” has the same meaning as in FSMA 2000 (see section 421 of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>An application for permission to appeal must be accompanied by all such information as may be required by appeal rules.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><content><p>Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><intro><p>The appellant must send the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-3-5-a"><num>(a)</num><content><p>a copy of the application for permission to appeal at the same time as it is sent to the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-5-b"><num>(b)</num><content><p>such other information as may be required by appeal rules.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-8"><num>(8)</num><intro><p>The CMA's decision on an application for permission must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-3-8-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-8-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day after the day on which the application for permission was received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-9"><num>(9)</num><intro><p>The grant of permission may be made subject to conditions, which may include—</p></intro><level class="para1" eId="schedule-5-paragraph-3-9-a"><num>(a)</num><content><p>conditions which limit the matters that are to be considered on the appeal in question;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-b"><num>(b)</num><content><p>conditions for the purpose of expediting the determination of the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-c"><num>(c)</num><content><p>conditions requiring the appeal to be considered together with other appeals (including appeals relating to different matters or decisions and appeals brought by different persons).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-3-10-a"><num>(a)</num><content><p>the appellant, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-10-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-11"><num>(11)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-12"><num>(12)</num><intro><p>The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-3-12-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-3-12-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><intro><p>A decision of the group is effective if, and only if—</p></intro><level class="para1" eId="schedule-5-paragraph-6-2-a"><num>(a)</num><content><p>all the members of the group are present when it is made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-6-2-b"><num>(b)</num><content><p>at least two members of the group are in favour of the decision.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><intro><p>For the purposes of this Schedule, the CMA may by notice—</p></intro><level class="para1" eId="schedule-5-paragraph-9-1-a"><num>(a)</num><content><p>require a person to produce to the CMA the documents specified or otherwise identified in the notice;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-1-b"><num>(b)</num><content><p>require any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information as may be specified or described in the notice in relation to that business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>at the time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in a legible form.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-5"><num>(5)</num><intro><p>A notice for the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-9-5-a"><num>(a)</num><content><p>may be issued on the CMA's behalf by an authorised member of the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-5-b"><num>(b)</num><content><p>must include information about the possible consequences of not complying with the notice (as set out in paragraph 13).</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><content><p>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.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><content><p>The CMA Board may make rules of procedure regulating the conduct and disposal of appeals.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the taking of evidence at an oral hearing, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the making of representations or observations at such a hearing.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><content><p>Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><content><p>Rules under this paragraph may make different provision for different cases.</p></content></subparagraph></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(d)</num><content><p>an enactment contained in, or in an instrument made under, Northern Ireland legislation;</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>The Regulator is not to be regarded as exercising functions on behalf of the Crown.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>The officers and staff of the Regulator are not to be regarded as Crown servants.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><intro><p>The plan must be prepared—</p></intro><level class="para1" eId="schedule-4-paragraph-6-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the plan in respect of a financial year at any time after its preparation.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><intro><p>An annual plan in respect of a financial year must set out—</p></intro><level class="para1" eId="schedule-4-paragraph-6-4-a"><num>(a)</num><content><p>the aims of the Regulator for the year,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-b"><num>(b)</num><content><p>how the extent to which each of those aims is met is to be determined,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-c"><num>(c)</num><content><p>the relative priorities of each of those aims, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-d"><num>(d)</num><content><p>how its resources are to be allocated among the activities to be carried on in connection with the discharge of its functions.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p>In sub-paragraph (4) references to aims for a financial year include aims for a longer period that includes that year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-6"><num>(6)</num><intro><p>Before preparing or varying an annual plan, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-6-6-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-6-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-7"><num>(7)</num><content><p>The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><intro><p>The purposes are—</p></intro><level class="para1" eId="schedule-4-paragraph-9-2-a"><num>(a)</num><content><p>meeting the relevant costs (see sub-paragraph (3)), and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-2-b"><num>(b)</num><content><p>enabling the Regulator to maintain adequate reserves.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-relevant-costs" eId="term-the-relevant-costs">the relevant costs</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-9-3-a"><num>(a)</num><content><p>the expenses incurred, or expected to be incurred, by the Regulator in connection with the discharge of its functions,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-b"><num>(b)</num><content><p>the expenses incurred by the FCA in establishing the Regulator,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-c"><num>(c)</num><content><p>any other expenses incurred by the FCA in connection with the discharge of its functions under this Part, and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-d"><num>(d)</num><content><p>any expenses incurred, or expected to be incurred, by the FCA in connection with the discharge of the Regulator's functions by an officer or member of staff of the FCA under arrangements made under paragraph 5.</p></content></level><wrapUp><p>For the purposes of paragraph (b) it does not matter when the expenses were incurred.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p>Before making any rules under sub-paragraph (1) the FCA must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-5"><num>(5)</num><content><p>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”).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-6"><num>(6)</num><intro><p>The FCA must pay to the Regulator the amounts that it receives under the rules, apart from the following amounts (which it may keep)—</p></intro><level class="para1" eId="schedule-4-paragraph-9-6-a"><num>(a)</num><content><p>amounts in respect of expenses falling within sub-paragraph (3)(b) to (d);</p></content></level><level class="para1" eId="schedule-4-paragraph-9-6-b"><num>(b)</num><content><p>amounts in respect of its collection costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the rules.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-8"><num>(8)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87"><num>87</num><heading>Admissibility of statements made to investigators</heading><subsection eId="section-87-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-87-2"><num>(2)</num><intro><p>But in criminal proceedings in which that person is charged with an offence to which this subsection applies—</p></intro><level class="para1" eId="section-87-2-a"><num>(a)</num><content><p>no evidence relating to the statement may be adduced by or on behalf of the prosecution, and</p></content></level><level class="para1" eId="section-87-2-b"><num>(b)</num><content><p>no question relating to the statement may be asked by or on behalf of the prosecution,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-87-3"><num>(3)</num><intro><p>Subsection (2) applies to any offence other than—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>an offence under section 90(6);</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>an offence under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-d"><num>(d)</num><content><p>an offence under Article 10 of the Perjury (Northern Ireland) Order 1979.</p></content></level></subsection><subsection eId="section-87-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means a requirement imposed by an investigator under section 85 or 86;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-2"><num>(2)</num><intro><p>But in criminal proceedings in which that person is charged with an offence to which this subsection applies—</p></intro><level class="para1" eId="section-87-2-a"><num>(a)</num><content><p>no evidence relating to the statement may be adduced by or on behalf of the prosecution, and</p></content></level><level class="para1" eId="section-87-2-b"><num>(b)</num><content><p>no question relating to the statement may be asked by or on behalf of the prosecution,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-2-a"><num>(a)</num><content><p>no evidence relating to the statement may be adduced by or on behalf of the prosecution, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-2-b"><num>(b)</num><content><p>no question relating to the statement may be asked by or on behalf of the prosecution,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-3"><num>(3)</num><intro><p>Subsection (2) applies to any offence other than—</p></intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content><p>an offence under section 90(6);</p></content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content><p>an offence under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content><p>an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath);</p></content></level><level class="para1" eId="section-87-3-d"><num>(d)</num><content><p>an offence under Article 10 of the Perjury (Northern Ireland) Order 1979.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-a"><num>(a)</num><content><p>an offence under section 90(6);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-b"><num>(b)</num><content><p>an offence under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-c"><num>(c)</num><content><p>an offence under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-3-d"><num>(d)</num><content><p>an offence under Article 10 of the Perjury (Northern Ireland) Order 1979.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means a requirement imposed by an investigator under section 85 or 86;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“FMI administration order” and “FMI administrator” are to be read in accordance with section 114;</p></content></hcontainer>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1"><num>(a)</num><content><p><ins ukl:ChangeId="key-961d895e5b8eae5c1b275f8062be28d2-1695297337291" ukl:CommentaryRef="key-961d895e5b8eae5c1b275f8062be28d2">can be used for the settlement of payment obligations,</ins></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><content><p><mod>After section 41 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>41A</num><heading>Transfer of property subsequent to resolution instrument</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more property transfer instruments in respect of property, rights or liabilities of the bank.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a property transfer instrument under subsection (2).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a property transfer instrument under subsection (2) the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><intro><p>In section 42 (supplemental property transfer instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-5-2-a"><num>(a)</num><content><p><mod>in subsection (1) for “12(2)” substitute <quotedText>“
12(2) or 41A(2)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-b"><num>(b)</num><content><p><mod>in subsection (4) for “and 8” substitute <quotedText>“
, 8 and 8A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-c"><num>(c)</num><content><p><mod>in subsection (6) for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p><mod>After section 44 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>44A</num><heading>Bail in: reverse property transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a property transfer instrument in accordance with section 41A(2) (“the original instrument”).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more bail-in reverse property transfer instruments in respect of property, rights or liabilities of the transferee under the original instrument.</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in reverse property transfer instrument is a property transfer instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for a transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, or could be or could have been, transferred under paragraph (a) (whether the transfer has been or is to be effected by that instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>The Bank of England may make a bail-in reverse property transfer instrument only with the written consent of the transferee under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to a bail-in reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making a bail-in reverse property transfer instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 42 (supplemental instruments) applies where the Bank of England has made a bail-in reverse property transfer instrument.</p></content></subsection></section><section><num>44B</num><heading>Property transfer instruments: special bail-in provision</heading><subsection><num>(1)</num><content><p>A property transfer instrument under section 12(2) or 41A(2), or an associated supplemental property transfer instrument, may make special bail-in provision with respect to the bank (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The reference in subsection (1) to an “associated” supplemental property transfer instrument is to a supplemental property transfer instrument in relation to which the original instrument (as defined in section 42(1)) is a property transfer instrument under section 12(2) or 41A(2).</p></content></subsection><subsection><num>(3)</num><content><p>In the case of a property transfer instrument under section 12(2), or a supplemental property transfer instrument in relation to which the original instrument is a property transfer instrument under section 12(2), the power under subsection (1) to make the provision described in section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes power to make provision replacing a liability (of any form) of the bank mentioned in subsection (1) with a security (of any form or class) of the bridge bank mentioned in section 12(1).</p></content></subsection><subsection><num>(4)</num><content><p>Where securities of the bridge bank (“B”) are, as a result of subsection (3), held by a person other than the Bank of England, that does not prevent B from being regarded for the purposes of this Part (see particularly section 12(1)) as being wholly owned by the Bank of England, as long as the Bank of England continues to hold all the ordinary shares issued by B.</p></content></subsection></section><section><num>44C</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a property transfer instrument containing provision made in reliance on section 44B.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision was made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the property transfer instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p><mod>In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert <quotedText>“
, 44A(3)(b)
”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 83A (modifications of Part 1 as it applies to banks not regulated by the Prudential Regulation Authority), in the table in subsection (2) insert the following entries at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 8A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 41A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 44A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 48H</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48U</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48V</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48W</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 81BA</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-11" class="schProv1"><num><noteRef href="#key-1388f7f47d63b0c81dc5424d5f05473b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>11</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-18" class="schProv1"><num>18</num><content><p>In section 14 of the Financial Services Act 2012, omit subsection (4).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-5-paragraph-4-1"><num>(1)</num><intro><p>The CMA may direct that, pending the determination of an appeal against a decision of the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-4-1-a"><num>(a)</num><content><p>the decision is not to have effect, or</p></content></level><level class="para1" eId="schedule-5-paragraph-4-1-b"><num>(b)</num><content><p>the decision is not to have effect to such extent as may be specified in the direction.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-2"><num>(2)</num><intro><p>The power to give a direction under this paragraph is exercisable only where—</p></intro><level class="para1" eId="schedule-5-paragraph-4-2-a"><num>(a)</num><content><p>an application for its exercise has been made by the appellant at the same time as the appellant made an application in accordance with paragraph 3 for permission to bring an appeal against a decision of the Payment Systems Regulator,</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-b"><num>(b)</num><content><p>the Payment Systems Regulator has been given an opportunity of making representations or observations, in accordance with paragraph 5(2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-c"><num>(c)</num><content><p>the balance of convenience does not otherwise require effect to be given to the decision pending that determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-3"><num>(3)</num><intro><p>The CMA's decision on an application for a direction under this paragraph must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-4-3-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-3-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day following the day on which the application under sub-paragraph (2)(a) is received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-5"><num>(5)</num><content><p>The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-6"><num>(6)</num><intro><p>A direction under this paragraph must be—</p></intro><level class="para1" eId="schedule-5-paragraph-4-6-a"><num>(a)</num><content><p>given by an authorised member of the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-6-b"><num>(b)</num><content><p>published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is given.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><content><p>The CMA must determine an appeal within the period of 6 months beginning with the permission date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>the CMA has received representations on the timing of the determination from a party to the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>it is satisfied that there are special reasons why the determination cannot be made within the period specified in sub-paragraph (1),</p></content></level><wrapUp><p>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.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><intro><p>In a case where sub-paragraph (2) applies, the CMA must also—</p></intro><level class="para1" eId="schedule-5-paragraph-7-3-a"><num>(a)</num><content><p>inform the parties to the appeal of the time limit for determining the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-3-b"><num>(b)</num><content><p>publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any other persons likely to be affected by the determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>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).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><intro><p>For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath—</p></intro><level class="para1" eId="schedule-5-paragraph-10-1-a"><num>(a)</num><content><p>by a person considering an application for permission to bring an appeal under paragraph 3,</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-b"><num>(b)</num><content><p>by a person considering an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-c"><num>(c)</num><content><p>by a group with the function of determining an appeal;</p></content></level><wrapUp><p>and, for that purpose, such a person or group may administer oaths.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><intro><p>The CMA may by notice require a person—</p></intro><level class="para1" eId="schedule-5-paragraph-10-2-a"><num>(a)</num><content><p>to attend at a time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-2-b"><num>(b)</num><content><p>at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><intro><p>At any oral hearing the person or group conducting the hearing may—</p></intro><level class="para1" eId="schedule-5-paragraph-10-3-a"><num>(a)</num><content><p>require the appellant or the Payment Systems Regulator, if present at the hearing, to give evidence or to make representations or observations, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-3-b"><num>(b)</num><content><p>require a person attending the hearing as a representative of the appellant or of the Payment Systems Regulator to make representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><content><p>A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-5"><num>(5)</num><intro><p>If the appellant, the Payment Systems Regulator, or the appellant's or Payment Systems Regulator's representative is not present at a hearing—</p></intro><level class="para1" eId="schedule-5-paragraph-10-5-a"><num>(a)</num><content><p>there is no requirement to give notice to that person under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-5-b"><num>(b)</num><content><p>the person or group conducting the hearing may determine the application or appeal without hearing that person's evidence, representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-7"><num>(7)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-8"><num>(8)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>If a person (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>fails to comply with a notice issued or other requirement imposed under paragraph 9, 10 or 11,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>in complying with a notice under paragraph 11, makes a statement that is false in any material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>in providing information verified in accordance with a statement of truth required by appeal rules, provides information that is false in a material particular,</p></content></level><wrapUp><p>an authorised member of the CMA may certify that fact to the court.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p>In sub-paragraph (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In this paragraph “<term refersTo="#term-court" eId="term-court">court</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>the High Court, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>in Scotland, the Court of Session.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><intro><p>An order under sub-paragraph (1) must require those costs to be paid—</p></intro><level class="para1" eId="schedule-5-paragraph-17-2-a"><num>(a)</num><content><p>where the appeal is allowed in full, by the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-b"><num>(b)</num><content><p>where the appeal is dismissed in full, by the appellant;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-c"><num>(c)</num><content><p>where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all the circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-6"><num>(6)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-3-paragraph-19-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-19-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-2-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-19-2-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-2-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-2-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-19-3"><num>(3)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-3-a"><num>(a)</num><content><p>omit paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-19-3-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-3-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>A person guilty of an offence under this paragraph is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-f953ce86e069a302419a3416517b516a-1677579981062" ukl:CommentaryRef="key-f953ce86e069a302419a3416517b516a"><noteRef uk:name="commentary" href="#key-f953ce86e069a302419a3416517b516a" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-ebc4b66ce032a1665fc2d8f3d3626899-1658396745500" ukl:CommentaryRef="key-ebc4b66ce032a1665fc2d8f3d3626899"><noteRef uk:name="commentary" href="#key-ebc4b66ce032a1665fc2d8f3d3626899" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-fsma-2000" eId="term-fsma-2000">FSMA 2000</term>” means the Financial Services and Markets Act 2000;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><content><p>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.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where the Payment Systems Regulator wishes to make representations or observations to the CMA in relation to—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>an application for permission to bring an appeal under paragraph 3;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>an application for a direction under paragraph 4.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>the Payment Systems Regulator's reasons for the decision in relation to which the appeal is being brought;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>any grounds on which that appeal is being brought against that decision.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>The Payment Systems Regulator must send a copy of the representations and observations it makes under this paragraph to the appellant.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>any or all matters raised by an appellant that were not raised by that appellant at the time of the relevant application, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>any or all matters raised by the Payment Systems Regulator that were not contained in representations or observations made for the purposes of the appeal in accordance with paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>In this paragraph “<term refersTo="#term-relevant-application" eId="term-relevant-application">relevant application</term>” means an application under paragraph 3 or 4.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-5-paragraph-11-1"><num>(1)</num><intro><p>The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to—</p></intro><level class="para1" eId="schedule-5-paragraph-11-1-a"><num>(a)</num><content><p>a person who is considering, or is to consider, an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-11-1-b"><num>(b)</num><content><p>a group with the function of determining an appeal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-11-2"><num>(2)</num><intro><p>The power to require the production of a written statement includes power—</p></intro><level class="para1" eId="schedule-5-paragraph-11-2-a"><num>(a)</num><content><p>to specify the time and place at which it is to be produced, and</p></content></level><level class="para1" eId="schedule-5-paragraph-11-2-b"><num>(b)</num><content><p>to require it to be verified by a statement of truth;</p></content></level><wrapUp><p>and a statement required to be so verified must be disregarded unless it is so verified.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-11-4"><num>(4)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p><mod>In paragraph 35(1) (membership of CMA panel), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>at least one person (a “payment systems panel member”) appointed to the CMA panel under paragraph 1(1)(b) for the purpose of being available for selection as a member of a group constituted to carry out functions on behalf of the CMA with respect to an appeal made in accordance with section 79 of the Financial Services (Banking Reform) Act 2013 (a “specialist payment systems group”);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content><p><mod>In paragraph 38 (membership of CMA groups), after sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><content><p>In the case of a specialist payment systems group, the group must include at least one payment systems member.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p><mod>In paragraph 48 (performance of functions of chair with respect to constitution <abbr title="Et cetera" xml:lang="la">etc</abbr> of CMA group), in sub-paragraph (4)(c), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(v)</num><content><p>Schedule 5 to the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88"><num>88</num><heading>Entry of premises under warrant</heading><subsection eId="section-88-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-88-2"><num>(2)</num><intro><p>The first set of conditions is—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><intro><p>that on the premises specified in the warrant—</p></intro><level class="para2" eId="section-88-2-b-i"><num>(i)</num><content><p>there are documents which have been required, or</p></content></level><level class="para2" eId="section-88-2-b-ii"><num>(ii)</num><content><p>there is information which has been required.</p></content></level></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro><p>In this section “<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>a requirement imposed by the Payment Systems Regulator under section 81 or 86, or</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>a requirement imposed by an investigator under section 85 or 86.</p></content></level></subsection><subsection eId="section-88-4"><num>(4)</num><intro><p>The second set of conditions is—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>that the premises specified in the warrant are premises of a participant in a regulated payment system,</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><content><p>that there are on the premises documents or information in relation to which an information requirement could be imposed, and</p></content></level><level class="para1" eId="section-88-4-c"><num>(c)</num><intro><p>that if such a requirement were to be imposed—</p></intro><level class="para2" eId="section-88-4-c-i"><num>(i)</num><content><p>it would not be complied with, or</p></content></level><level class="para2" eId="section-88-4-c-ii"><num>(ii)</num><content><p>the documents or information to which it related would be removed, tampered with or destroyed.</p></content></level></level></subsection><subsection eId="section-88-5"><num>(5)</num><intro><p>A warrant under this section authorises a constable—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>to enter the premises specified in the warrant,</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>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 (“<term refersTo="#term-the-relevant-kind" eId="term-the-relevant-kind">the relevant kind</term>”) 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,</p></content></level><level class="para1" eId="section-88-5-c"><num>(c)</num><content><p>to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,</p></content></level><level class="para1" eId="section-88-5-d"><num>(d)</num><content><p>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</p></content></level><level class="para1" eId="section-88-5-e"><num>(e)</num><content><p>to use such force as may be reasonably necessary.</p></content></level></subsection><subsection eId="section-88-6"><num>(6)</num><content><p>A warrant under this section may be executed by any constable.</p></content></subsection><subsection eId="section-88-7"><num>(7)</num><content><p>The warrant may authorise persons to accompany any constable who is executing it.</p></content></subsection><subsection eId="section-88-8"><num>(8)</num><intro><p>The powers in subsection (5) may be exercised by a person who—</p></intro><level class="para1" eId="section-88-8-a"><num>(a)</num><content><p>is authorised by the warrant to accompany a constable, and</p></content></level><level class="para1" eId="section-88-8-b"><num>(b)</num><content><p>exercises those powers in the company of, and under the supervision of, a constable.</p></content></level></subsection><subsection eId="section-88-9"><num>(9)</num><content><p>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.</p></content></subsection><subsection eId="section-88-10"><num>(10)</num><content><p>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.</p></content></subsection><subsection eId="section-88-11"><num>(11)</num><intro><p>This section has effect in relation to Scotland as if—</p></intro><level class="para1" eId="section-88-11-a"><num>(a)</num><content><p>for any reference to a justice of the peace there were substituted a reference to a justice of the peace or a sheriff, and</p></content></level><level class="para1" eId="section-88-11-b"><num>(b)</num><content><p>for any reference to information on oath there were substituted a reference to evidence on oath.</p></content></level></subsection><subsection eId="section-88-12"><num>(12)</num><content><p>In this section “<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-2"><num>(2)</num><intro><p>The first set of conditions is—</p></intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content><p>that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and</p></content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><intro><p>that on the premises specified in the warrant—</p></intro><level class="para2" eId="section-88-2-b-i"><num>(i)</num><content><p>there are documents which have been required, or</p></content></level><level class="para2" eId="section-88-2-b-ii"><num>(ii)</num><content><p>there is information which has been required.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-a"><num>(a)</num><content><p>that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-b"><num>(b)</num><intro><p>that on the premises specified in the warrant—</p></intro><level class="para2" eId="section-88-2-b-i"><num>(i)</num><content><p>there are documents which have been required, or</p></content></level><level class="para2" eId="section-88-2-b-ii"><num>(ii)</num><content><p>there is information which has been required.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-2-b-i"><num>(i)</num><content><p>there are documents which have been required, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-2-b-ii"><num>(ii)</num><content><p>there is information which has been required.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-3"><num>(3)</num><intro><p>In this section “<term refersTo="#term-information-requirement" eId="term-information-requirement">information requirement</term>” means—</p></intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content><p>a requirement imposed by the Payment Systems Regulator under section 81 or 86, or</p></content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content><p>a requirement imposed by an investigator under section 85 or 86.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-a"><num>(a)</num><content><p>a requirement imposed by the Payment Systems Regulator under section 81 or 86, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-b"><num>(b)</num><content><p>a requirement imposed by an investigator under section 85 or 86.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-4"><num>(4)</num><intro><p>The second set of conditions is—</p></intro><level class="para1" eId="section-88-4-a"><num>(a)</num><content><p>that the premises specified in the warrant are premises of a participant in a regulated payment system,</p></content></level><level class="para1" eId="section-88-4-b"><num>(b)</num><content><p>that there are on the premises documents or information in relation to which an information requirement could be imposed, and</p></content></level><level class="para1" eId="section-88-4-c"><num>(c)</num><intro><p>that if such a requirement were to be imposed—</p></intro><level class="para2" eId="section-88-4-c-i"><num>(i)</num><content><p>it would not be complied with, or</p></content></level><level class="para2" eId="section-88-4-c-ii"><num>(ii)</num><content><p>the documents or information to which it related would be removed, tampered with or destroyed.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-4-a"><num>(a)</num><content><p>that the premises specified in the warrant are premises of a participant in a regulated payment system,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-4-b"><num>(b)</num><content><p>that there are on the premises documents or information in relation to which an information requirement could be imposed, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-4-c"><num>(c)</num><intro><p>that if such a requirement were to be imposed—</p></intro><level class="para2" eId="section-88-4-c-i"><num>(i)</num><content><p>it would not be complied with, or</p></content></level><level class="para2" eId="section-88-4-c-ii"><num>(ii)</num><content><p>the documents or information to which it related would be removed, tampered with or destroyed.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-4-c-i"><num>(i)</num><content><p>it would not be complied with, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-88-4-c-ii"><num>(ii)</num><content><p>the documents or information to which it related would be removed, tampered with or destroyed.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-5"><num>(5)</num><intro><p>A warrant under this section authorises a constable—</p></intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content><p>to enter the premises specified in the warrant,</p></content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content><p>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 (“<term refersTo="#term-the-relevant-kind" eId="term-the-relevant-kind">the relevant kind</term>”) 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,</p></content></level><level class="para1" eId="section-88-5-c"><num>(c)</num><content><p>to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,</p></content></level><level class="para1" eId="section-88-5-d"><num>(d)</num><content><p>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</p></content></level><level class="para1" eId="section-88-5-e"><num>(e)</num><content><p>to use such force as may be reasonably necessary.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-a"><num>(a)</num><content><p>to enter the premises specified in the warrant,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-b"><num>(b)</num><content><p>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 (“<term refersTo="#term-the-relevant-kind" eId="term-the-relevant-kind">the relevant kind</term>”) 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,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-c"><num>(c)</num><content><p>to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-d"><num>(d)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-5-e"><num>(e)</num><content><p>to use such force as may be reasonably necessary.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-6"><num>(6)</num><content><p>A warrant under this section may be executed by any constable.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-7"><num>(7)</num><content><p>The warrant may authorise persons to accompany any constable who is executing it.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-8"><num>(8)</num><intro><p>The powers in subsection (5) may be exercised by a person who—</p></intro><level class="para1" eId="section-88-8-a"><num>(a)</num><content><p>is authorised by the warrant to accompany a constable, and</p></content></level><level class="para1" eId="section-88-8-b"><num>(b)</num><content><p>exercises those powers in the company of, and under the supervision of, a constable.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-8-a"><num>(a)</num><content><p>is authorised by the warrant to accompany a constable, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-8-b"><num>(b)</num><content><p>exercises those powers in the company of, and under the supervision of, a constable.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-9"><num>(9)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-10"><num>(10)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-11"><num>(11)</num><intro><p>This section has effect in relation to Scotland as if—</p></intro><level class="para1" eId="section-88-11-a"><num>(a)</num><content><p>for any reference to a justice of the peace there were substituted a reference to a justice of the peace or a sheriff, and</p></content></level><level class="para1" eId="section-88-11-b"><num>(b)</num><content><p>for any reference to information on oath there were substituted a reference to evidence on oath.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-11-a"><num>(a)</num><content><p>for any reference to a justice of the peace there were substituted a reference to a justice of the peace or a sheriff, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-11-b"><num>(b)</num><content><p>for any reference to information on oath there were substituted a reference to evidence on oath.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-12"><num>(12)</num><content><p>In this section “<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89"><num>89</num><heading>Retention of documents taken under section 88</heading><subsection eId="section-89-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-89-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-89-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-89-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-89-5"><num>(5)</num><content><p>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).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-5"><num>(5)</num><content><p>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).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-90"><num>90</num><heading>Enforcement of information and investigation powers</heading><subsection eId="section-90-1"><num>(1)</num><content><p>If a person other than an investigator (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”) 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.</p></content></subsection><subsection eId="section-90-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-90-3"><num>(3)</num><content><p>In subsection (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subsection><subsection eId="section-90-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>causes or permits the falsification, concealment, destruction or disposal of such a document.</p></content></level></subsection><subsection eId="section-90-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-90-6"><num>(6)</num><intro><p>A person is guilty of an offence if the person, in purported compliance with a requirement imposed under any of sections 81 to 88—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>provides information which the person knows to be false or misleading in a material particular, or</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>recklessly provides information which is false or misleading in a material particular.</p></content></level></subsection><subsection eId="section-90-7"><num>(7)</num><intro><p>A person guilty of an offence under subsection (4) or (6) is liable—</p></intro><level class="para1" eId="section-90-7-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-90-7-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-268c76c90370644a50625a9db7253fc1-1677579828788" ukl:CommentaryRef="key-268c76c90370644a50625a9db7253fc1"><noteRef uk:name="commentary" href="#key-268c76c90370644a50625a9db7253fc1" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-c74cbd5f885730b5cd7f0e620ea8e748-1658396421172" ukl:CommentaryRef="key-c74cbd5f885730b5cd7f0e620ea8e748"><noteRef uk:name="commentary" href="#key-c74cbd5f885730b5cd7f0e620ea8e748" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-90-7-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-90-7-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-90-7-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection><subsection eId="section-90-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-8-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-90-8-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-90-8-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-90-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-court" eId="term-court">court</term>” means the High Court or, in Scotland, the Court of Session;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-1"><num>(1)</num><content><p>If a person other than an investigator (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”) 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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-3"><num>(3)</num><content><p>In subsection (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-4"><num>(4)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-90-4-b"><num>(b)</num><content><p>causes or permits the falsification, concealment, destruction or disposal of such a document.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-b"><num>(b)</num><content><p>causes or permits the falsification, concealment, destruction or disposal of such a document.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-6"><num>(6)</num><intro><p>A person is guilty of an offence if the person, in purported compliance with a requirement imposed under any of sections 81 to 88—</p></intro><level class="para1" eId="section-90-6-a"><num>(a)</num><content><p>provides information which the person knows to be false or misleading in a material particular, or</p></content></level><level class="para1" eId="section-90-6-b"><num>(b)</num><content><p>recklessly provides information which is false or misleading in a material particular.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-6-a"><num>(a)</num><content><p>provides information which the person knows to be false or misleading in a material particular, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-6-b"><num>(b)</num><content><p>recklessly provides information which is false or misleading in a material particular.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-90-7"><num>(7)</num><intro><p>A person guilty of an offence under subsection (4) or (6) is liable—</p></intro><level class="para1" eId="section-90-7-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-90-7-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-268c76c90370644a50625a9db7253fc1-1677579828788" ukl:CommentaryRef="key-268c76c90370644a50625a9db7253fc1"><noteRef uk:name="commentary" href="#key-268c76c90370644a50625a9db7253fc1" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-c74cbd5f885730b5cd7f0e620ea8e748-1658396421172" ukl:CommentaryRef="key-c74cbd5f885730b5cd7f0e620ea8e748"><noteRef uk:name="commentary" href="#key-c74cbd5f885730b5cd7f0e620ea8e748" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-90-7-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-90-7-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-90-7-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-90-7-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-90-7-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-268c76c90370644a50625a9db7253fc1-1677579828788" ukl:CommentaryRef="key-268c76c90370644a50625a9db7253fc1"><noteRef uk:name="commentary" href="#key-268c76c90370644a50625a9db7253fc1" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-c74cbd5f885730b5cd7f0e620ea8e748-1658396421172" ukl:CommentaryRef="key-c74cbd5f885730b5cd7f0e620ea8e748"><noteRef uk:name="commentary" href="#key-c74cbd5f885730b5cd7f0e620ea8e748" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="section-90-7-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-90-7-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para2" eId="section-90-7-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-268c76c90370644a50625a9db7253fc1-1677579828788" ukl:CommentaryRef="key-268c76c90370644a50625a9db7253fc1"><noteRef uk:name="commentary" href="#key-268c76c90370644a50625a9db7253fc1" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-c74cbd5f885730b5cd7f0e620ea8e748-1658396421172" ukl:CommentaryRef="key-c74cbd5f885730b5cd7f0e620ea8e748"><noteRef uk:name="commentary" href="#key-c74cbd5f885730b5cd7f0e620ea8e748" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-90-7-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-90-7-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-7-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-90-8-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-90-8-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-90-8-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-8-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-8-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-8-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-court" eId="term-court">court</term>” means the High Court or, in Scotland, the Court of Session;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” has the meaning given by section 71;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><intro><p>The old company may—</p></intro><level class="para1" eId="schedule-7-paragraph-4-1-a"><num>(a)</num><content><p>with the consent of the new company, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-1-b"><num>(b)</num><content><p>for the purpose of giving effect to the proposed transfer,</p></content></level><wrapUp><p>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”).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><content><p>Such a scheme may be made only at a time when the FMI administration order is in force in relation to the old company.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><intro><p>An FMI transfer scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways—</p></intro><level class="para1" eId="schedule-7-paragraph-4-3-a"><num>(a)</num><content><p>by specifying or describing them in particular,</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-b"><num>(b)</num><content><p>by identifying them generally by reference to, or to a specified part of, the undertaking of the old company, or</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-c"><num>(c)</num><content><p>by specifying the manner in which they are to be determined.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>An FMI transfer scheme is to take effect in accordance with paragraph 7 at the time appointed by the court.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-7"><num>(7)</num><intro><p>In deciding whether to approve an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-4-7-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-7-b"><num>(b)</num><content><p>any effect that the scheme is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-8"><num>(8)</num><content><p>Before approving an FMI transfer scheme, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-7-paragraph-7-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-7-1-a"><num>(a)</num><content><p>the property, interests, rights or liabilities become by virtue of this Schedule the property, interests, rights or liabilities of the transferee at the time appointed by the court for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-7-1-b"><num>(b)</num><content><p>the provisions of that scheme in relation to that property, or those interests, rights or liabilities, have effect from that time.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-7-2"><num>(2)</num><intro><p>In this paragraph “<term refersTo="#term-the-transferee" eId="term-the-transferee">the transferee</term>” means—</p></intro><level class="para1" eId="schedule-7-paragraph-7-2-a"><num>(a)</num><content><p>in relation to property, rights or liabilities transferred by an FMI transfer scheme, the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-7-2-b"><num>(b)</num><content><p>in relation to interests, rights or liabilities created by such a scheme, the person in whose favour, or in relation to whom, they are created.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-10-a"><num>(a)</num><content><p>paragraph 4(1)(a) were omitted, and</p></content></level><level class="para1" eId="schedule-7-paragraph-10-b"><num>(b)</num><content><p><mod>in paragraph 4(6), for the words from “both” onwards there were substituted <quotedText>“
the old company has consented may be made
”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-10-a"><num>(a)</num><content><p>paragraph 4(1)(a) were omitted, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-7-paragraph-10-b"><num>(b)</num><content><p><mod>in paragraph 4(6), for the words from “both” onwards there were substituted <quotedText>“
the old company has consented may be made
”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><intro><p>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)—</p></intro><level class="para1" eId="schedule-10-paragraph-9-a"><num>(a)</num><content><p><mod>for “their activities,” substitute <quotedText>“
of the carrying on of regulated activities,
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-9-b"><num>(b)</num><content><p><mod>for “or for the regulation of collective investment schemes” substitute <quotedText>“
, for the regulation of collective investment schemes or for the regulation of recognised investment exchanges,
”</quotedText>.</mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-10-paragraph-9-a"><num>(a)</num><content><p><mod>for “their activities,” substitute <quotedText>“
of the carrying on of regulated activities,
”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-10-paragraph-9-b"><num>(b)</num><content><p><mod>for “or for the regulation of collective investment schemes” substitute <quotedText>“
, for the regulation of collective investment schemes or for the regulation of recognised investment exchanges,
”</quotedText>.</mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>The relevant functions of the FCA or the PRA are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions conferred by or under FSMA 2000, other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The relevant functions of the Bank of England are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions under Part 18 of FSMA 2000 (recognised clearing houses) or under Part 5 of the Banking Act 2009 (inter-bank payment systems), other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “subsection (2)” substitute <quotedText>“
subsection (2)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><content><p><mod>In subsections (6) and (7), for “subsection (3)” substitute <quotedText>“
subsection (3)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA 2000 do not apply.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-disclosure-of-information"><heading><i>Disclosure of information</i></heading><section eId="section-91"><num>91</num><heading>Restrictions on disclosure of confidential information</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>the person from whom the primary recipient obtained the information, and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>if different, the person to whom it relates.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><intro><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” means information which—</p></intro><level class="para1" eId="section-91-2-a"><num>(a)</num><content><p>relates to the business or other affairs of any person,</p></content></level><level class="para1" eId="section-91-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-91-2-c"><num>(c)</num><content><p>is not prevented from being confidential information by subsection (4).</p></content></level></subsection><subsection eId="section-91-3"><num>(3)</num><intro><p>It is immaterial for the purposes of subsection (2) whether or not the information was received—</p></intro><level class="para1" eId="section-91-3-a"><num>(a)</num><content><p>as a result of a requirement to provide it imposed by or under any enactment;</p></content></level><level class="para1" eId="section-91-3-b"><num>(b)</num><content><p>for other purposes as well as purposes mentioned in that subsection.</p></content></level></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>Information is not confidential information if—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><intro><p>Each of the following is a primary recipient for the purposes of this section—</p></intro><level class="para1" eId="section-91-5-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-91-5-b"><num>(b)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-91-5-c"><num>(c)</num><content><p>a person who is or has been employed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-d"><num>(d)</num><content><p>a person who is or has been engaged to provide services to the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-e"><num>(e)</num><content><p>any auditor or expert instructed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-f"><num>(f)</num><content><p>a person appointed to make a report under section 82;</p></content></level><level class="para1" eId="section-91-5-g"><num>(g)</num><content><p>a person appointed under section 83.</p></content></level></subsection><subsection eId="section-91-6"><num>(6)</num><content><p>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.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></section><section eId="section-92"><num>92</num><heading>Exemptions from section 91</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>Section 91 does not prevent a disclosure of confidential information which—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>is made for the purpose of facilitating the carrying out of a public function, and</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>is permitted by regulations made by the Treasury under this section.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><intro><p>For the purposes of this section “<term refersTo="#term-public-functions" eId="term-public-functions">public functions</term>” includes—</p></intro><level class="para1" eId="section-92-2-a"><num>(a)</num><content><p>functions conferred by or in accordance with any provision contained in any enactment;</p></content></level><level class="para1" eId="section-92-2-b"><num><noteRef href="#key-c6c6f70be29daf0f13f2f6d24a5a9929" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-92-2-c"><num>(c)</num><content><p>similar functions <ins class="first last" ukl:ChangeId="key-fdc618100138b6dd7af6bbd1d172e510-1630937142011" ukl:CommentaryRef="key-fdc618100138b6dd7af6bbd1d172e510"><noteRef uk:name="commentary" href="#key-fdc618100138b6dd7af6bbd1d172e510" class="commentary"/>to those in paragraph (a)</ins> conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1" eId="section-92-2-d"><num>(d)</num><content><p>functions exercisable in relation to specified disciplinary proceedings.</p></content></level></subsection><subsection eId="section-92-3"><num>(3)</num><intro><p>Regulations under this section may, in particular, make provision permitting the disclosure of confidential information or of confidential information of a specified kind—</p></intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-c"><num>(c)</num><content><p>by the Payment Systems Regulator to the Treasury for any purpose;</p></content></level><level class="para1" eId="section-92-3-d"><num>(d)</num><content><p>by any recipient if the disclosure is with a view to or in connection with specified proceedings.</p></content></level></subsection><subsection eId="section-92-4"><num>(4)</num><intro><p>Regulations under this section may also include provision—</p></intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content><p>making any permission to disclose confidential information subject to conditions (which may relate to the obtaining of consents or any other matter);</p></content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content><p>restricting the uses to which confidential information disclosed under the regulations may be put.</p></content></level></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>In relation to confidential information, each of the following is a “recipient”—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>a primary recipient;</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>a person obtaining the information directly or indirectly from a primary recipient.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” and “<term refersTo="#term-primary-recipient" eId="term-primary-recipient">primary recipient</term>” have the same meaning as in section 91;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations.</p></content></hcontainer></subsection></section><section eId="section-93"><num>93</num><heading>Offences relating to disclosure of confidential information</heading><subsection eId="section-93-1"><num>(1)</num><content><p>A person who discloses information in contravention of section 91 is guilty of an offence.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><intro><p>A person guilty of an offence under subsection (1) is liable—</p></intro><level class="para1" eId="section-93-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-93-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;</p></content></level><level class="para2" eId="section-93-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-93-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-93-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection><subsection eId="section-93-3"><num>(3)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content><p>information has been disclosed to the person in accordance with regulations made under section 92, and</p></content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content><p>the person uses the information in contravention of any provision of those regulations.</p></content></level></subsection><subsection eId="section-93-4"><num>(4)</num><intro><p>A person guilty of an offence under subsection (3) is liable on summary conviction—</p></intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>In proceedings against a person (“P”) for an offence under this section it is a defence for P to prove—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>that P did not know and had no reason to suspect that the information was confidential information;</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>that P took all reasonable precautions and exercised all due diligence to avoid committing the offence.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” has the same meaning as in section 91.</p></content></subsection></section><section eId="section-94"><num>94</num><heading>Information received from Bank of England</heading><subsection eId="section-94-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-94-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-94-1-b"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection eId="section-94-2"><num>(2)</num><content><p>A regulator must not disclose to any person specially protected information.</p></content></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>“Specially protected information” is information in relation to which the first and second conditions are met.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The first condition is that the regulator received the information from—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>the Bank of England (“<term refersTo="#term-the-bank" eId="term-the-bank">the Bank</term>”), or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>the other regulator where that regulator had received the information from the Bank.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>monetary policy;</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>financial operations intended to support financial institutions for the purposes of maintaining stability;</p></content></level><level class="para1" eId="section-94-5-c"><num>(c)</num><content><p>the provision of private banking services and related services.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>The notification referred to in subsection (5) must be—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>in writing, and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>given before, or at the same time as, the Bank discloses the information.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><intro><p>The prohibition in subsection (2) does not apply—</p></intro><level class="para1" eId="section-94-7-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-b"><num>(b)</num><content><p>where the Bank has consented to disclosure of the information;</p></content></level><level class="para1" eId="section-94-7-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-d"><num><noteRef href="#key-4597eff7f769672be81a12a8f7ded29a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(d)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection><subsection eId="section-94-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-8-a"><num>(a)</num><content><p>persons who are, or are acting as, officers of, or members of the staff of, the regulator;</p></content></level><level class="para1" eId="section-94-8-b"><num>(b)</num><content><p>persons who are, or are acting as, officers, employees or agents of the Bank;</p></content></level><level class="para1" eId="section-94-8-c"><num>(c)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator or the Bank under powers conferred by this Part or otherwise.</p></content></level></subsection><subsection eId="section-94-9"><num>(9)</num><content><p>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.</p></content></subsection><subsection eId="section-94-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-10-a"><num>(a)</num><content><p>its officers or members of staff (including persons acting as its officers or members of staff);</p></content></level><level class="para1" eId="section-94-10-b"><num>(b)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator under powers conferred by this Part or otherwise;</p></content></level><level class="para1" eId="section-94-10-c"><num>(c)</num><content><p>persons to whom the regulator has delegated any of its functions.</p></content></level></subsection></section><section eId="section-95"><num>95</num><heading>Disclosure of information by Bank to Regulator</heading><content><p><mod>In section 246 of the Banking Act 2009 (information), in subsection (2), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>the Payment Systems Regulator (established under section 40 of the Financial Services (Banking Reform) Act 2013);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91"><num>91</num><heading>Restrictions on disclosure of confidential information</heading><subsection eId="section-91-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>the person from whom the primary recipient obtained the information, and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>if different, the person to whom it relates.</p></content></level></subsection><subsection eId="section-91-2"><num>(2)</num><intro><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” means information which—</p></intro><level class="para1" eId="section-91-2-a"><num>(a)</num><content><p>relates to the business or other affairs of any person,</p></content></level><level class="para1" eId="section-91-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-91-2-c"><num>(c)</num><content><p>is not prevented from being confidential information by subsection (4).</p></content></level></subsection><subsection eId="section-91-3"><num>(3)</num><intro><p>It is immaterial for the purposes of subsection (2) whether or not the information was received—</p></intro><level class="para1" eId="section-91-3-a"><num>(a)</num><content><p>as a result of a requirement to provide it imposed by or under any enactment;</p></content></level><level class="para1" eId="section-91-3-b"><num>(b)</num><content><p>for other purposes as well as purposes mentioned in that subsection.</p></content></level></subsection><subsection eId="section-91-4"><num>(4)</num><intro><p>Information is not confidential information if—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-91-5"><num>(5)</num><intro><p>Each of the following is a primary recipient for the purposes of this section—</p></intro><level class="para1" eId="section-91-5-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-91-5-b"><num>(b)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-91-5-c"><num>(c)</num><content><p>a person who is or has been employed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-d"><num>(d)</num><content><p>a person who is or has been engaged to provide services to the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-e"><num>(e)</num><content><p>any auditor or expert instructed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-f"><num>(f)</num><content><p>a person appointed to make a report under section 82;</p></content></level><level class="para1" eId="section-91-5-g"><num>(g)</num><content><p>a person appointed under section 83.</p></content></level></subsection><subsection eId="section-91-6"><num>(6)</num><content><p>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.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-91-1-a"><num>(a)</num><content><p>the person from whom the primary recipient obtained the information, and</p></content></level><level class="para1" eId="section-91-1-b"><num>(b)</num><content><p>if different, the person to whom it relates.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-1-a"><num>(a)</num><content><p>the person from whom the primary recipient obtained the information, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-1-b"><num>(b)</num><content><p>if different, the person to whom it relates.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-2"><num>(2)</num><intro><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” means information which—</p></intro><level class="para1" eId="section-91-2-a"><num>(a)</num><content><p>relates to the business or other affairs of any person,</p></content></level><level class="para1" eId="section-91-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-91-2-c"><num>(c)</num><content><p>is not prevented from being confidential information by subsection (4).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-2-a"><num>(a)</num><content><p>relates to the business or other affairs of any person,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-2-b"><num>(b)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-2-c"><num>(c)</num><content><p>is not prevented from being confidential information by subsection (4).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-3"><num>(3)</num><intro><p>It is immaterial for the purposes of subsection (2) whether or not the information was received—</p></intro><level class="para1" eId="section-91-3-a"><num>(a)</num><content><p>as a result of a requirement to provide it imposed by or under any enactment;</p></content></level><level class="para1" eId="section-91-3-b"><num>(b)</num><content><p>for other purposes as well as purposes mentioned in that subsection.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-3-a"><num>(a)</num><content><p>as a result of a requirement to provide it imposed by or under any enactment;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-3-b"><num>(b)</num><content><p>for other purposes as well as purposes mentioned in that subsection.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-4"><num>(4)</num><intro><p>Information is not confidential information if—</p></intro><level class="para1" eId="section-91-4-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-91-4-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-4-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-4-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-5"><num>(5)</num><intro><p>Each of the following is a primary recipient for the purposes of this section—</p></intro><level class="para1" eId="section-91-5-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-91-5-b"><num>(b)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-91-5-c"><num>(c)</num><content><p>a person who is or has been employed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-d"><num>(d)</num><content><p>a person who is or has been engaged to provide services to the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-e"><num>(e)</num><content><p>any auditor or expert instructed by the Payment Systems Regulator or the FCA;</p></content></level><level class="para1" eId="section-91-5-f"><num>(f)</num><content><p>a person appointed to make a report under section 82;</p></content></level><level class="para1" eId="section-91-5-g"><num>(g)</num><content><p>a person appointed under section 83.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-b"><num>(b)</num><content><p>the FCA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-c"><num>(c)</num><content><p>a person who is or has been employed by the Payment Systems Regulator or the FCA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-d"><num>(d)</num><content><p>a person who is or has been engaged to provide services to the Payment Systems Regulator or the FCA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-e"><num>(e)</num><content><p>any auditor or expert instructed by the Payment Systems Regulator or the FCA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-f"><num>(f)</num><content><p>a person appointed to make a report under section 82;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-5-g"><num>(g)</num><content><p>a person appointed under section 83.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-6"><num>(6)</num><content><p>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.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-92"><num>92</num><heading>Exemptions from section 91</heading><subsection eId="section-92-1"><num>(1)</num><intro><p>Section 91 does not prevent a disclosure of confidential information which—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>is made for the purpose of facilitating the carrying out of a public function, and</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>is permitted by regulations made by the Treasury under this section.</p></content></level></subsection><subsection eId="section-92-2"><num>(2)</num><intro><p>For the purposes of this section “<term refersTo="#term-public-functions" eId="term-public-functions">public functions</term>” includes—</p></intro><level class="para1" eId="section-92-2-a"><num>(a)</num><content><p>functions conferred by or in accordance with any provision contained in any enactment;</p></content></level><level class="para1" eId="section-92-2-b"><num><noteRef href="#key-c6c6f70be29daf0f13f2f6d24a5a9929" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-92-2-c"><num>(c)</num><content><p>similar functions <ins class="first last" ukl:ChangeId="key-fdc618100138b6dd7af6bbd1d172e510-1630937142011" ukl:CommentaryRef="key-fdc618100138b6dd7af6bbd1d172e510"><noteRef uk:name="commentary" href="#key-fdc618100138b6dd7af6bbd1d172e510" class="commentary"/>to those in paragraph (a)</ins> conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1" eId="section-92-2-d"><num>(d)</num><content><p>functions exercisable in relation to specified disciplinary proceedings.</p></content></level></subsection><subsection eId="section-92-3"><num>(3)</num><intro><p>Regulations under this section may, in particular, make provision permitting the disclosure of confidential information or of confidential information of a specified kind—</p></intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-c"><num>(c)</num><content><p>by the Payment Systems Regulator to the Treasury for any purpose;</p></content></level><level class="para1" eId="section-92-3-d"><num>(d)</num><content><p>by any recipient if the disclosure is with a view to or in connection with specified proceedings.</p></content></level></subsection><subsection eId="section-92-4"><num>(4)</num><intro><p>Regulations under this section may also include provision—</p></intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content><p>making any permission to disclose confidential information subject to conditions (which may relate to the obtaining of consents or any other matter);</p></content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content><p>restricting the uses to which confidential information disclosed under the regulations may be put.</p></content></level></subsection><subsection eId="section-92-5"><num>(5)</num><intro><p>In relation to confidential information, each of the following is a “recipient”—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>a primary recipient;</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>a person obtaining the information directly or indirectly from a primary recipient.</p></content></level></subsection><subsection eId="section-92-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” and “<term refersTo="#term-primary-recipient" eId="term-primary-recipient">primary recipient</term>” have the same meaning as in section 91;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations.</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-1"><num>(1)</num><intro><p>Section 91 does not prevent a disclosure of confidential information which—</p></intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content><p>is made for the purpose of facilitating the carrying out of a public function, and</p></content></level><level class="para1" eId="section-92-1-b"><num>(b)</num><content><p>is permitted by regulations made by the Treasury under this section.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-a"><num>(a)</num><content><p>is made for the purpose of facilitating the carrying out of a public function, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-b"><num>(b)</num><content><p>is permitted by regulations made by the Treasury under this section.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-92-2"><num>(2)</num><intro><p>For the purposes of this section “<term refersTo="#term-public-functions" eId="term-public-functions">public functions</term>” includes—</p></intro><level class="para1" eId="section-92-2-a"><num>(a)</num><content><p>functions conferred by or in accordance with any provision contained in any enactment;</p></content></level><level class="para1" eId="section-92-2-b"><num><noteRef href="#key-c6c6f70be29daf0f13f2f6d24a5a9929" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-92-2-c"><num>(c)</num><content><p>similar functions <ins class="first last" ukl:ChangeId="key-fdc618100138b6dd7af6bbd1d172e510-1630937142011" ukl:CommentaryRef="key-fdc618100138b6dd7af6bbd1d172e510"><noteRef uk:name="commentary" href="#key-fdc618100138b6dd7af6bbd1d172e510" class="commentary"/>to those in paragraph (a)</ins> conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1" eId="section-92-2-d"><num>(d)</num><content><p>functions exercisable in relation to specified disciplinary proceedings.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-2-a"><num>(a)</num><content><p>functions conferred by or in accordance with any provision contained in any enactment;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-92-2-b"><num><noteRef href="#key-c6c6f70be29daf0f13f2f6d24a5a9929" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-92-2-c"><num>(c)</num><content><p>similar functions <ins class="first last" ukl:ChangeId="key-fdc618100138b6dd7af6bbd1d172e510-1630937142011" ukl:CommentaryRef="key-fdc618100138b6dd7af6bbd1d172e510"><noteRef uk:name="commentary" href="#key-fdc618100138b6dd7af6bbd1d172e510" class="commentary"/>to those in paragraph (a)</ins> conferred on persons by or under provisions having effect as part of the law of a country or territory outside the United Kingdom;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-2-d"><num>(d)</num><content><p>functions exercisable in relation to specified disciplinary proceedings.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-3"><num>(3)</num><intro><p>Regulations under this section may, in particular, make provision permitting the disclosure of confidential information or of confidential information of a specified kind—</p></intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content><p>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;</p></content></level><level class="para1" eId="section-92-3-c"><num>(c)</num><content><p>by the Payment Systems Regulator to the Treasury for any purpose;</p></content></level><level class="para1" eId="section-92-3-d"><num>(d)</num><content><p>by any recipient if the disclosure is with a view to or in connection with specified proceedings.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-3-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-3-b"><num>(b)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-3-c"><num>(c)</num><content><p>by the Payment Systems Regulator to the Treasury for any purpose;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-3-d"><num>(d)</num><content><p>by any recipient if the disclosure is with a view to or in connection with specified proceedings.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-4"><num>(4)</num><intro><p>Regulations under this section may also include provision—</p></intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content><p>making any permission to disclose confidential information subject to conditions (which may relate to the obtaining of consents or any other matter);</p></content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content><p>restricting the uses to which confidential information disclosed under the regulations may be put.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-a"><num>(a)</num><content><p>making any permission to disclose confidential information subject to conditions (which may relate to the obtaining of consents or any other matter);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-b"><num>(b)</num><content><p>restricting the uses to which confidential information disclosed under the regulations may be put.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-5"><num>(5)</num><intro><p>In relation to confidential information, each of the following is a “recipient”—</p></intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content><p>a primary recipient;</p></content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content><p>a person obtaining the information directly or indirectly from a primary recipient.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-5-a"><num>(a)</num><content><p>a primary recipient;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-5-b"><num>(b)</num><content><p>a person obtaining the information directly or indirectly from a primary recipient.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” and “<term refersTo="#term-primary-recipient" eId="term-primary-recipient">primary recipient</term>” have the same meaning as in section 91;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations.</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“confidential information” and “primary recipient” have the same meaning as in section 91;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote"><p>
Section 6</p></authorialNote></num><heading>Ring-fencing transfer schemes</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p>Part 7 of FSMA 2000 (control of business transfer schemes) is amended as follows.</p></content></paragraph><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content><p><mod>For “the authorised person concerned”, wherever occurring in Part 7 (including Schedule 12), substitute <quotedText>“
the transferor concerned
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-1-paragraph-3-1"><num>(1)</num><content><p>Section 103A (meaning of “the appropriate regulator”) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1), in paragraph (a), for “a scheme” substitute <quotedText>“
a ring-fencing transfer scheme or a scheme (other than a ring-fencing transfer scheme)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-3"><num>(3)</num><content><p><mod>At the end of subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>in the case of a ring-fencing transfer scheme, means the body to whose business the scheme relates.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 106 (banking business transfer schemes), at the end of subsection (1)(c) insert <quotedText>“
or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After section 106A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>106B</num><heading>Ring-fencing transfer scheme</heading><subsection><num>(1)</num><intro><p>A scheme is a ring-fencing transfer scheme if it—</p></intro><level class="para1"><num>(a)</num><intro><p>is one under which the whole or part of the business carried on—</p></intro><level class="para2"><num>(i)</num><content><p>by a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a qualifying body,</p></content></level><wrapUp><p>is to be transferred to another body (“<term refersTo="#term-the-transferee">the transferee</term>”),</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>is to be made for one or more of the purposes mentioned in subsection (3), and</p></content></level><level class="para1"><num>(c)</num><content><p>is not an excluded scheme or an insurance business transfer scheme.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-body">Qualifying body</term>” means a body which—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>is a member of the group of a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the transferee to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;</p></content></level><level class="para1"><num>(c)</num><content><p>making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the body corporate to whose business the scheme relates becoming a ring-fenced body while one or more other members of its group are not ring-fenced bodies;</p></content></level><level class="para1"><num>(d)</num><content><p>making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the transferee becoming a ring-fenced body while one or more other members of the transferee's group are not ring-fenced bodies.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A scheme is an excluded scheme for the purposes of this section if—</p></intro><level class="para1"><num>(a)</num><content><p>the body to whose business the scheme relates is a building society or credit union, or</p></content></level><level class="para1"><num>(b)</num><content><p>the scheme is a compromise or arrangement to which Part 27 of the Companies Act 2006 (mergers and divisions of public companies) applies.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (1)(a) it is immaterial whether or not the business to be transferred is carried on in the United Kingdom.</p></content></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-uk-authorised-person"><abbr class="acronym" title="United Kingdom">UK</abbr> authorised person</term>” has the same meaning as in section 105.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-building-society">Building society</term>” and “<term refersTo="#term-credit-union">credit union</term>” have the same meanings as in section 106.</p></content></subsection><subsection><num>(8)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">The ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Section 107 (application for order sanctioning transfer scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or a reclaim fund business transfer scheme” substitute <quotedText>“
, a reclaim fund business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>An application relating to a ring-fencing transfer scheme may be made only with the consent of the PRA.</p></content></subsection><subsection><num>(2B)</num><content><p>In deciding whether to give consent, the PRA must have regard to the scheme report prepared under section 109A in relation to the ring-fencing transfer scheme.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>For the heading to section 109 substitute <quotedText>“
Scheme reports: insurance business transfer schemes
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p><mod>After section 109 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>109A</num><heading>Scheme reports: ring-fencing transfer schemes</heading><subsection><num>(1)</num><content><p>An application under section 106B in respect of a ring-fencing transfer scheme must be accompanied by a report on the terms of the scheme (a “scheme report”).</p></content></subsection><subsection><num>(2)</num><intro><p>A scheme report may be made only by a person—</p></intro><level class="para1"><num>(a)</num><content><p>appearing to the PRA to have the skills necessary to enable the person to make a proper report, and</p></content></level><level class="para1"><num>(b)</num><content><p>nominated or approved for the purpose by the PRA.</p></content></level></subsection><subsection><num>(3)</num><content><p>A scheme report must be made in a form approved by the PRA.</p></content></subsection><subsection><num>(4)</num><intro><p>A scheme report must state—</p></intro><level class="para1"><num>(a)</num><content><p>whether persons other than the transferor concerned are likely to be adversely affected by the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, whether the adverse effect is likely to be greater than is reasonably necessary in order to achieve whichever of the purposes mentioned in section 106B(3) is relevant.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The PRA must consult the FCA before—</p></intro><level class="para1"><num>(a)</num><content><p>nominating or approving a person under subsection (2)(b), or</p></content></level><level class="para1"><num>(b)</num><content><p>approving a form under subsection (3).</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p>Section 110 (right to participate in proceedings) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>In subsection (1), after “section 107” insert <quotedText>“
relating to an insurance business transfer scheme, a banking business transfer scheme or a reclaim fund business transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Subsections (4) and (5) apply where an application under section 107 relates to a ring-fencing transfer scheme.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are also entitled to be heard—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>where the transferee is an authorised person, the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>any person (“P”) (including an employee of the transferor concerned or of the transferee) who alleges that P would be adversely affected by the carrying out of the scheme.</p></content></level></subsection><subsection><num>(5)</num><intro><p>P is not entitled to be heard by virtue of subsection (4)(c) unless before the hearing P has—</p></intro><level class="para1"><num>(a)</num><content><p>filed (in Scotland, lodged) with the court a written statement of the representations that P wishes the court to consider, and</p></content></level><level class="para1"><num>(b)</num><content><p>served copies of the statement on the PRA and the transferor concerned.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content><p>Section 111 (sanction of court for business transfer schemes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (1), for “or a reclaim fund business transfer scheme” substitute <quotedText>“
, a reclaim fund business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (2), after paragraph (aa) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>in the case of a ring-fencing transfer scheme, the appropriate certificates have been obtained (as to which see Part 2B of that Schedule);</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 112 (effect of order sanctioning business transfer scheme), in subsection (10), after “transfer scheme” insert <quotedText>“
or ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 112A (rights to terminate <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (1), for “or a banking business transfer scheme” substitute <quotedText>“
, a banking business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In Schedule 12 (transfer schemes: certificates) after Part 2A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><part><num><b>PART 2B</b></num><heading>Ring-fencing transfer schemes</heading><hcontainer name="crossheading" class="schGroup7"><heading>Appropriate certificates</heading><paragraph class="schProv1"><num>9B</num><subparagraph><num>(1)</num><intro><p>For the purposes of section 111(2) the appropriate certificates, in relation to a ring-fencing transfer scheme, are—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate given by the PRA certifying its approval of the application,</p></content></level><level class="para1"><num>(b)</num><content><p>a certificate under paragraph 9C, and</p></content></level><level class="para1"><num>(c)</num><content><p>if sub-paragraph (2) applies, a certificate under paragraph 9D.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>This sub-paragraph applies if the transferee is an <abbr class="acronym" title="European Economic Area">EEA</abbr> firm falling within paragraph 5(a) or (b) of Schedule 3.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certificate as to financial resources</heading><paragraph class="schProv1"><num>9C</num><subparagraph><num>(1)</num><content><p>A certificate under this paragraph is one given by the relevant authority and certifying that, taking the proposed transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>“<term refersTo="#term-relevant-authority">Relevant authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the transferee is a PRA-authorised person with a Part 4A permission or with permission under Schedule 4, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>if the transferee is an <abbr class="acronym" title="European Economic Area">EEA</abbr> firm falling within paragraph 5(a) or (b) of Schedule 3, its home state regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>if the transferee does not fall within paragraph (a) or (b) but is subject to regulation in a country or territory outside the United Kingdom, the authority responsible for the supervision of the transferee's business in the place in which the transferee has its head office;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the FCA.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2), any reference to a transferee of a particular description includes a reference to a transferee who will be of that description if the proposed ring-fencing transfer scheme takes effect.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certificate as to consent of home state regulator</heading><paragraph class="schProv1"><num>9D</num><intro><p>A certificate under this paragraph is one given by the appropriate regulator and certifying that the home state regulator of the transferee has been notified of the proposed scheme and that—</p></intro><level class="para1"><num>(a)</num><content><p>the home state regulator has responded to the notification, or</p></content></level><level class="para1"><num>(b)</num><content><p>the period of 3 months beginning with the notification has elapsed.</p></content></level></paragraph></hcontainer></part></quotedStructure></mod></p></content></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p>Part 7 of FSMA 2000 (control of business transfer schemes) is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content><p><mod>For “the authorised person concerned”, wherever occurring in Part 7 (including Schedule 12), substitute <quotedText>“
the transferor concerned
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-1-paragraph-3-1"><num>(1)</num><content><p>Section 103A (meaning of “the appropriate regulator”) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1), in paragraph (a), for “a scheme” substitute <quotedText>“
a ring-fencing transfer scheme or a scheme (other than a ring-fencing transfer scheme)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-3"><num>(3)</num><content><p><mod>At the end of subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>in the case of a ring-fencing transfer scheme, means the body to whose business the scheme relates.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 106 (banking business transfer schemes), at the end of subsection (1)(c) insert <quotedText>“
or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After section 106A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>106B</num><heading>Ring-fencing transfer scheme</heading><subsection><num>(1)</num><intro><p>A scheme is a ring-fencing transfer scheme if it—</p></intro><level class="para1"><num>(a)</num><intro><p>is one under which the whole or part of the business carried on—</p></intro><level class="para2"><num>(i)</num><content><p>by a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a qualifying body,</p></content></level><wrapUp><p>is to be transferred to another body (“<term refersTo="#term-the-transferee">the transferee</term>”),</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>is to be made for one or more of the purposes mentioned in subsection (3), and</p></content></level><level class="para1"><num>(c)</num><content><p>is not an excluded scheme or an insurance business transfer scheme.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-body">Qualifying body</term>” means a body which—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>is a member of the group of a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the transferee to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;</p></content></level><level class="para1"><num>(c)</num><content><p>making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the body corporate to whose business the scheme relates becoming a ring-fenced body while one or more other members of its group are not ring-fenced bodies;</p></content></level><level class="para1"><num>(d)</num><content><p>making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the transferee becoming a ring-fenced body while one or more other members of the transferee's group are not ring-fenced bodies.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A scheme is an excluded scheme for the purposes of this section if—</p></intro><level class="para1"><num>(a)</num><content><p>the body to whose business the scheme relates is a building society or credit union, or</p></content></level><level class="para1"><num>(b)</num><content><p>the scheme is a compromise or arrangement to which Part 27 of the Companies Act 2006 (mergers and divisions of public companies) applies.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (1)(a) it is immaterial whether or not the business to be transferred is carried on in the United Kingdom.</p></content></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-uk-authorised-person"><abbr class="acronym" title="United Kingdom">UK</abbr> authorised person</term>” has the same meaning as in section 105.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-building-society">Building society</term>” and “<term refersTo="#term-credit-union">credit union</term>” have the same meanings as in section 106.</p></content></subsection><subsection><num>(8)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">The ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Section 107 (application for order sanctioning transfer scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or a reclaim fund business transfer scheme” substitute <quotedText>“
, a reclaim fund business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>An application relating to a ring-fencing transfer scheme may be made only with the consent of the PRA.</p></content></subsection><subsection><num>(2B)</num><content><p>In deciding whether to give consent, the PRA must have regard to the scheme report prepared under section 109A in relation to the ring-fencing transfer scheme.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>For the heading to section 109 substitute <quotedText>“
Scheme reports: insurance business transfer schemes
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p><mod>After section 109 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>109A</num><heading>Scheme reports: ring-fencing transfer schemes</heading><subsection><num>(1)</num><content><p>An application under section 106B in respect of a ring-fencing transfer scheme must be accompanied by a report on the terms of the scheme (a “scheme report”).</p></content></subsection><subsection><num>(2)</num><intro><p>A scheme report may be made only by a person—</p></intro><level class="para1"><num>(a)</num><content><p>appearing to the PRA to have the skills necessary to enable the person to make a proper report, and</p></content></level><level class="para1"><num>(b)</num><content><p>nominated or approved for the purpose by the PRA.</p></content></level></subsection><subsection><num>(3)</num><content><p>A scheme report must be made in a form approved by the PRA.</p></content></subsection><subsection><num>(4)</num><intro><p>A scheme report must state—</p></intro><level class="para1"><num>(a)</num><content><p>whether persons other than the transferor concerned are likely to be adversely affected by the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, whether the adverse effect is likely to be greater than is reasonably necessary in order to achieve whichever of the purposes mentioned in section 106B(3) is relevant.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The PRA must consult the FCA before—</p></intro><level class="para1"><num>(a)</num><content><p>nominating or approving a person under subsection (2)(b), or</p></content></level><level class="para1"><num>(b)</num><content><p>approving a form under subsection (3).</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p>Section 110 (right to participate in proceedings) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>In subsection (1), after “section 107” insert <quotedText>“
relating to an insurance business transfer scheme, a banking business transfer scheme or a reclaim fund business transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Subsections (4) and (5) apply where an application under section 107 relates to a ring-fencing transfer scheme.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are also entitled to be heard—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>where the transferee is an authorised person, the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>any person (“P”) (including an employee of the transferor concerned or of the transferee) who alleges that P would be adversely affected by the carrying out of the scheme.</p></content></level></subsection><subsection><num>(5)</num><intro><p>P is not entitled to be heard by virtue of subsection (4)(c) unless before the hearing P has—</p></intro><level class="para1"><num>(a)</num><content><p>filed (in Scotland, lodged) with the court a written statement of the representations that P wishes the court to consider, and</p></content></level><level class="para1"><num>(b)</num><content><p>served copies of the statement on the PRA and the transferor concerned.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content><p>Section 111 (sanction of court for business transfer schemes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (1), for “or a reclaim fund business transfer scheme” substitute <quotedText>“
, a reclaim fund business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (2), after paragraph (aa) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>in the case of a ring-fencing transfer scheme, the appropriate certificates have been obtained (as to which see Part 2B of that Schedule);</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 112 (effect of order sanctioning business transfer scheme), in subsection (10), after “transfer scheme” insert <quotedText>“
or ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 112A (rights to terminate <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (1), for “or a banking business transfer scheme” substitute <quotedText>“
, a banking business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In Schedule 12 (transfer schemes: certificates) after Part 2A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><part><num><b>PART 2B</b></num><heading>Ring-fencing transfer schemes</heading><hcontainer name="crossheading" class="schGroup7"><heading>Appropriate certificates</heading><paragraph class="schProv1"><num>9B</num><subparagraph><num>(1)</num><intro><p>For the purposes of section 111(2) the appropriate certificates, in relation to a ring-fencing transfer scheme, are—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate given by the PRA certifying its approval of the application,</p></content></level><level class="para1"><num>(b)</num><content><p>a certificate under paragraph 9C, and</p></content></level><level class="para1"><num>(c)</num><content><p>if sub-paragraph (2) applies, a certificate under paragraph 9D.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>This sub-paragraph applies if the transferee is an <abbr class="acronym" title="European Economic Area">EEA</abbr> firm falling within paragraph 5(a) or (b) of Schedule 3.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certificate as to financial resources</heading><paragraph class="schProv1"><num>9C</num><subparagraph><num>(1)</num><content><p>A certificate under this paragraph is one given by the relevant authority and certifying that, taking the proposed transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>“<term refersTo="#term-relevant-authority">Relevant authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the transferee is a PRA-authorised person with a Part 4A permission or with permission under Schedule 4, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>if the transferee is an <abbr class="acronym" title="European Economic Area">EEA</abbr> firm falling within paragraph 5(a) or (b) of Schedule 3, its home state regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>if the transferee does not fall within paragraph (a) or (b) but is subject to regulation in a country or territory outside the United Kingdom, the authority responsible for the supervision of the transferee's business in the place in which the transferee has its head office;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the FCA.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2), any reference to a transferee of a particular description includes a reference to a transferee who will be of that description if the proposed ring-fencing transfer scheme takes effect.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certificate as to consent of home state regulator</heading><paragraph class="schProv1"><num>9D</num><intro><p>A certificate under this paragraph is one given by the appropriate regulator and certifying that the home state regulator of the transferee has been notified of the proposed scheme and that—</p></intro><level class="para1"><num>(a)</num><content><p>the home state regulator has responded to the notification, or</p></content></level><level class="para1"><num>(b)</num><content><p>the period of 3 months beginning with the notification has elapsed.</p></content></level></paragraph></hcontainer></part></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="schedule" eId="schedule-2"><num>SCHEDULE 2<authorialNote class="referenceNote"><p>
Section 17</p></authorialNote></num><heading>Bail-in stabilisation option</heading><part eId="schedule-2-part-1"><num><b>PART 1</b></num><heading>Amendments of Banking Act 2009</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p>The Banking Act 2009 is amended as follows.</p></content></paragraph><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-new-stabilisation-option-bailin"><heading><i>New stabilisation option: bail-in</i></heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>12A</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The third stabilisation option is exercised by the use of the power in subsection (2).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more resolution instruments (which may contain provision or proposals of any kind mentioned in subsections (3) to (6)).</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make special bail-in provision with respect to a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, any special bail-in provision made by that or another instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>provide for securities issued by a specified bank to be transferred to a bail-in administrator (see section 12B) or another person;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, the transfer of securities issued by a specified bank (whether or not the transfer has been or is to be effected by that instrument, by another resolution instrument or otherwise).</p></content></level></subsection><subsection><num>(5)</num><content><p>A resolution instrument may set out proposals with regard to the future ownership of a specified bank or of the business of a specified bank, and any other proposals (for example, proposals about making special bail-in provision) that the Bank of England may think appropriate.</p></content></subsection><subsection><num>(6)</num><content><p>A resolution instrument may make any other provision the Bank of England may think it appropriate to make in exercise of specific powers under this Part.</p></content></subsection><subsection><num>(7)</num><intro><p>Provision made in accordance with subsection (4) may relate to—</p></intro><level class="para1"><num>(a)</num><content><p>specified securities, or</p></content></level><level class="para1"><num>(b)</num><content><p>securities of a specified description.</p></content></level></subsection><subsection><num>(8)</num><content><p>Where the Bank of England has exercised the power in subsection (4) to transfer securities to a bail-in administrator, the Bank of England must exercise its functions under this Part (see, in particular, section 48V) with a view to ensuring that any securities held by a person in the capacity of a bail-in administrator are so held only for so long as is, in the Bank of England's opinion, appropriate having regard to the special resolution objectives.</p></content></subsection><subsection><num>(9)</num><content><p>References in this Part to “special bail-in provision” are to provision made in reliance on section 48B.</p></content></subsection></section><section><num>12B</num><heading>Bail-in administrators</heading><subsection><num>(1)</num><content><p>The Bank of England may, in a resolution instrument, appoint an individual or body corporate as a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>A bail-in administrator is appointed—</p></intro><level class="para1"><num>(a)</num><content><p>to hold any securities that may be transferred or issued to that person in the capacity of bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>to perform any other functions that may be conferred under any provision of this Part.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Bank of England may appoint more than one bail-in administrator to perform functions in relation to a bank (but no more than one of them may at any one time be authorised to hold securities as mentioned in subsection (2)(a)).</p></content></subsection><subsection><num>(4)</num><content><p>Securities held by a bail-in administrator (in that capacity, and whether as a result of a resolution instrument or otherwise) are to be held in accordance with the terms of a resolution instrument that transfers those, or other, securities to the bail-in administrator.</p></content></subsection><subsection><num>(5)</num><intro><p>For example, the following provision may be made by virtue of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights of a bail-in administrator with respect to all or any of the securities are to be exercisable only as directed by the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>provision specifying rights or obligations that the bail-in administrator is, or is not, to have in relation to some or all of the securities.</p></content></level></subsection><subsection><num>(6)</num><content><p>A bail-in administrator must have regard, in performing any functions of the office, to any objectives that may be specified in a resolution instrument.</p></content></subsection><subsection><num>(7)</num><content><p>Where one or more objectives are specified in accordance with subsection (6), the objectives are to be taken to have equal status with each other, unless the contrary is stated in the resolution instrument.</p></content></subsection><subsection><num>(8)</num><content><p>See sections 48I to 48K for further provision about bail-in administrators.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>8A</num><heading>Specific condition: bail-in</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a bank in accordance with section 12A(2) only if satisfied that the condition in subsection (2) is met.</p></content></subsection><subsection><num>(2)</num><intro><p>The condition is that the exercise of the power is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before determining whether that condition is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(4)</num><content><p>The condition in this section is in addition to the conditions in section 7.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-further-provision-about-the-bailin-option"><heading><i>Further provision about the bail-in option</i></heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After section 48A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Bail-in option</i></heading><section><num>48B</num><heading>Special bail-in provision</heading><subsection><num>(1)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, means any of the following (or any combination of the following)—</p></intro><level class="para1"><num>(a)</num><content><p>provision cancelling a liability owed by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provision modifying, or changing the form of, a liability owed by the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that a contract under which the bank has a liability is to have effect as if a specified right had been exercised under it.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, also includes any associated provision (see subsection (3)) that the Bank of England may think it appropriate to make in consequence of any provision under subsection (1) that—</p></intro><level class="para1"><num>(a)</num><content><p>is made in the same resolution instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>has been made in another resolution instrument in respect of the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-associated-provision">Associated provision</term>” means provision cancelling or modifying a contract under which a banking group company has a liability.</p></content></subsection><subsection><num>(4)</num><intro><p>A power to make special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>may be exercised only for the purpose of, or in connection with, reducing, deferring or cancelling a liability of the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>may not be exercised so as to affect any excluded liability.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The following rules apply to the interpretation of subsection (1).</p></intro><level class="para1"><num>1</num><content><p>The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability.</p></content></level><level class="para1"><num>2</num><content><p>The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability.</p></content></level><level class="para1"><num>3</num><intro><p>The reference to changing the form of a liability owed by the bank, includes, for example—</p></intro><level class="para2"><num>(a)</num><content><p>converting an instrument under which the bank owes a liability from one form or class to another,</p></content></level><level class="para2"><num>(b)</num><content><p>replacing such an instrument with another instrument of a different form or class, or</p></content></level><level class="para2"><num>(c)</num><content><p>creating a new security (of any form or class) in connection with the modification of such an instrument.</p></content></level></level></subsection><subsection><num>(6)</num><intro><p>Examples of special bail-in provision include—</p></intro><level class="para1"><num>(a)</num><content><p>provision that transactions or events of any specified kind have or do not have (directly or indirectly) specified consequences or are to be treated in a specified manner for specified purposes;</p></content></level><level class="para1"><num>(b)</num><content><p>provision discharging persons from further performance of obligations under a contract and dealing with the consequences of persons being so discharged.</p></content></level></subsection><subsection><num>(7)</num><content><p>The form and class of the instrument (“the resulting instrument”) into which an instrument is converted, or with which it is replaced, do not matter for the purposes of paragraphs (a) and (b) of rule 3 in subsection (5); for instance, the resulting instrument may (if it is a security) fall within Class 1 or any other Class in section 14.</p></content></subsection><subsection><num>(8)</num><intro><p>The following liabilities of the bank are “excluded liabilities”—</p></intro><level class="para1"><num>(a)</num><content><p>liabilities representing protected deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>any liability, so far as it is secured;</p></content></level><level class="para1"><num>(c)</num><content><p>liabilities that the bank has by virtue of holding client assets;</p></content></level><level class="para1"><num>(d)</num><content><p>liabilities with an original maturity of less than 7 days owed by the bank to a credit institution or investment firm;</p></content></level><level class="para1"><num>(e)</num><content><p>liabilities arising from participation in designated settlement systems and owed to such systems or to operators of, or participants in, such systems;</p></content></level><level class="para1"><num>(f)</num><content><p>liabilities owed to central counterparties recognised by the European Securities and Markets Authority in accordance with Article 25 of Regulation (EU) 648/2012 of the European Parliament and the Council;</p></content></level><level class="para1"><num>(g)</num><content><p>liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration;</p></content></level><level class="para1"><num>(h)</num><content><p>liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits;</p></content></level><level class="para1"><num>(i)</num><content><p>liabilities owed to creditors arising from the provision to the bank of goods or services (other than financial services) that are critical to the daily functioning of the bank's operations.</p></content></level></subsection><subsection><num>(9)</num><intro><p>The following special rules apply in cases involving banking group companies—</p></intro><level class="para1"><num>(a)</num><content><p>a liability mentioned in subsection (8)(d) is not an excluded liability if the credit institution or investment firm to which the liability is owed is a banking group company in relation to the bank (see section 81D);</p></content></level><level class="para1"><num>(b)</num><content><p>in subsection (8)(i) the reference to creditors does not include companies which are banking group companies in relation to the bank.</p></content></level></subsection></section><section><num>48C</num><heading>Meaning of “protected deposit”</heading><subsection><num>(1)</num><content><p>A deposit is “protected” so far as it is covered by the Financial Services Compensation Scheme.</p></content></subsection><subsection><num>(2)</num><intro><p>A deposit is “protected” so far as it is covered by a scheme which—</p></intro><level class="para1"><num>(a)</num><content><p>operates outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is comparable to the Financial Services Compensation Scheme.</p></content></level></subsection><subsection><num>(3)</num><content><p>If one or both of subsections (1) and (2) apply to a deposit, the amount of the deposit “protected” is the highest amount which results from either of those subsections.</p></content></subsection><subsection><num>(4)</num><content><p>In subsections (1) and (2) and section 48B(8)(a), “<term refersTo="#term-deposit">deposit</term>” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544), but ignoring the exclusions in article 6.</p></content></subsection></section><section><num>48D</num><heading>General interpretation of section 48B</heading><subsection><num>(1)</num><intro><p>In section 48B—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-client-assets">client assets</term>” means assets which the bank has undertaken to hold on trust for, or on behalf of, a client;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-contract">contract</term>” includes any instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-credit-institution">credit institution</term>” means any credit institution as defined in Article 4.1(1) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council, other than an entity mentioned in Article 2.5(2) to (23) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-settlement-system">designated settlement system</term>” means a system designated in accordance with Directive <ref eId="c00004" href="http://www.legislation.gov.uk/european/directive/1998/0026">98/26/<abbr class="acronym" title="European Community">EC</abbr></ref> of the European Parliament and of the Council (as amended by Directives <ref eId="c00005" href="http://www.legislation.gov.uk/european/directive/2009/0044">2009/44/<abbr class="acronym" title="European Community">EC</abbr></ref> and 2010/78/<abbr class="acronym" title="European Union">EU</abbr>);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-employee">employee</term>” includes the holder of an office;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investment-firm">investment firm</term>” means an investment firm as defined in Article 4.1(2) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council that is subject to the initial capital requirement specified in Article 28(2) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pension-scheme">pension scheme</term>” includes any arrangement for the payment of pensions, allowances and gratuities;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-secured">secured</term>” means secured against property or rights, or otherwise covered by collateral arrangements.</p></content></hcontainer></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-assets">assets</term>” has the same meaning as in section 232(4) (ignoring for these purposes section 232(5A)(b));</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-collateral-arrangements">collateral arrangements</term>” includes arrangements which are title transfer collateral arrangements for the purposes of section 48.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of section 48B(8)(h), a benefit under a pension scheme is discretionary so far as the employee's right to the benefit resulted from the exercise of a discretion.</p></content></subsection></section><section><num>48E</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a resolution instrument containing special bail-in provision (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the resolution instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section><section><num>48F</num><heading>Power to amend definition of “excluded liabilities”</heading><subsection><num>(1)</num><intro><p>The Treasury may by order amend section 48B(8) by—</p></intro><level class="para1"><num>(a)</num><content><p>adding to the list of excluded liabilities;</p></content></level><level class="para1"><num>(b)</num><content><p>amending or omitting any paragraph of that subsection, other than paragraphs (a) to (c).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury may by order amend section 48C or 48D.</p></content></subsection><subsection><num>(3)</num><content><p>The powers conferred by subsections (1) and (2) include power to make consequential and transitional provision.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury must consult before laying a draft order under this section before Parliament.</p></content></subsection></section><section><num>48G</num><heading>Priority between creditors</heading><subsection><num>(1)</num><content><p>The Treasury may, for the purpose of ensuring that the treatment of liabilities in any instrument that contains special bail-in provision is aligned to an appropriate degree with the treatment of liabilities on an insolvency, by order specify matters or principles to which the Bank of England is to be required to have regard in making any such instrument.</p></content></subsection><subsection><num>(2)</num><content><p>An order may, for example, specify the insolvency treatment principles (as defined in section 48E(4)) or alternative principles.</p></content></subsection><subsection><num>(3)</num><content><p>An order may specify the meaning of “insolvency” for one or more purposes of the order.</p></content></subsection><subsection><num>(4)</num><content><p>An order may amend sections 44C(4) and 48E(4).</p></content></subsection><subsection><num>(5)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48H</num><heading>Business reorganisation plans</heading><subsection><num>(1)</num><intro><p>A resolution instrument may require a bail-in administrator, or one or more directors of the bank, to—</p></intro><level class="para1"><num>(a)</num><content><p>draw up a business reorganisation plan with respect to the bank, and</p></content></level><level class="para1"><num>(b)</num><content><p>submit it to the Bank of England within the period allowed by (or under) the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-business-reorganisation-plan">Business reorganisation plan</term>” means a plan that includes—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the factors that caused Condition 1 in section 7 to be met in the case of the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>a description of the measures to be adopted with a view to restoring the viability of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>a timetable for the implementation of those measures.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where a person has submitted a business reorganisation plan to the Bank of England under subsection (1) (or has re-submitted a plan under subsection (4)), the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must approve the plan if satisfied that the plan is appropriately designed for meeting the objective mentioned in subsection (2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>must otherwise require the person to amend the plan in a specified manner.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the Bank of England has required a person to amend a business re-organisation plan, the person must re-submit the amended plan within the period allowed by (or under) the resolution instrument.</p></content></subsection><subsection><num>(5)</num><intro><p>Before deciding what action to take under subsection (3) the Bank of England must (for each submission or re-submission of a plan) consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>A business reorganisation plan may include recommendations by the person submitting the plan as to the exercise by the Bank of England of any of its powers under this Part in relation to the bank.</p></content></subsection><subsection><num>(7)</num><intro><p>Where a resolution instrument contains provision under subsection (1), the instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>specify further matters (in addition to those mentioned in subsection (2)) that must be dealt with in the business reorganisation plan;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about the timing of actions to be taken in connection with the making and approval of the plan;</p></content></level><level class="para1"><num>(c)</num><content><p>enable any provision that the Bank of England has power under paragraph (a) or (b) to make in the instrument to be made instead in an agreement between the Bank of England and the person required to draw up the business reorganisation plan.</p></content></level></subsection><subsection><num>(8)</num><content><p>For the purposes of subsection (2)(b) the viability of a bank is to be assessed by reference to whether the bank satisfies, and (if so) for how long it may be expected to continue to satisfy, the threshold conditions (as defined in section 55B of the Financial Services and Markets Act 2000).</p></content></subsection></section><section><num>48I</num><heading>Bail-in administrator: further functions</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise a bail-in administrator to manage the bank's business (or confer on a bail-in administrator any other power with respect to the management of the bank's business);</p></content></level><level class="para1"><num>(b)</num><content><p>authorise a bail-in administrator to exercise any other powers of the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>confer on a bail-in administrator any other power the Bank of England may consider appropriate;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that the exercise of any power conferred by the instrument in accordance with this section is to be subject to conditions specified in the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may require a bail-in administrator to make reports to the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>on any matter specified in the instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>at the times or intervals specified in the instrument.</p></content></level></subsection><subsection><num>(3)</num><content><p>If a resolution instrument specifies a matter in accordance with subsection (2)(a), it may provide for further requirements as to the contents of the report on that matter to be specified in an agreement between the Bank of England and the bail-in administrator.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require a bail-in administrator to consult specified persons before exercising specified functions (and may specify particular matters on which the specified person must be consulted);</p></content></level><level class="para1"><num>(b)</num><content><p>provide that a bail-in administrator is not to exercise specified functions without the consent of a specified person.</p></content></level></subsection></section><section><num>48J</num><heading>Bail-in administrator: supplementary</heading><subsection><num>(1)</num><content><p>A bail-in administrator may do anything necessary or desirable for the purposes of or in connection with the performance of the functions of the office.</p></content></subsection><subsection><num>(2)</num><content><p>A bail-in administrator is not a servant or agent of the Crown (and, in particular, is not a civil servant).</p></content></subsection><subsection><num>(3)</num><intro><p>Where a bail-in administrator is appointed under this Part, the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must make provision in a resolution instrument for resignation and replacement of the bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>may remove the bail-in administrator from office only (i) on the ground of incapacity or misconduct, or (ii) on the ground that there is no further need for a person to perform the functions conferred on the bail-in administrator.</p></content></level></subsection></section><section><num>48K</num><heading>Bail-in administrator: money</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for the payment of remuneration and allowances to a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>Provision made under subsection (1) may provide that the amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>to be paid by the Bank of England, or</p></content></level><level class="para1"><num>(b)</num><content><p>to be determined by the Bank of England and paid by the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>A bail-in administrator is not liable for damages in respect of anything done in good faith for the purposes of or in connection with the functions of the office (subject to section 8 of the Human Rights Act 1998).</p></content></subsection></section><section><num>48L</num><heading>Powers in relation to securities</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>cancel or modify any securities to which this subsection applies;</p></content></level><level class="para1"><num>(b)</num><content><p>convert any such securities from one form or class into another.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) applies to securities issued by the bank that fall within Class 1 in section 14.</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make provision with respect to rights attaching to securities issued by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for the listing of securities issued by the bank to be discontinued.</p></content></level></subsection><subsection><num>(4)</num><content><p>The reference in subsection (1)(b) to converting securities from one form or class into another includes creating a new security in connection with the modification of an existing security.</p></content></subsection><subsection><num>(5)</num><intro><p>The provision that may be made under subsection (3)(a) includes, for example—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights attaching to securities are to be treated as having been exercised;</p></content></level><level class="para1"><num>(b)</num><content><p>provision that the Bank of England, or a bail-in administrator, is to be treated as authorised to exercise specified rights attaching to securities;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that specified rights attaching to securities may not be exercised for a period specified in the instrument.</p></content></level></subsection><subsection><num>(6)</num><content><p>In subsection (3)(b) the reference to “listing” is to listing under section 74 of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(7)</num><content><p>The provision that may be made under this section in relation to any securities is in addition to any provision that the Bank of England may have power to make in relation to them under section 48B.</p></content></subsection></section><section><num>48M</num><heading>Termination rights, <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-default-event-provision">default event provision</term>” has the same meaning as in section 22.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may provide for subsection (3) or (4) to apply (but need not apply either).</p></content></subsection><subsection><num>(3)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies.</p></content></subsection><subsection><num>(4)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies except so far as the instrument provides otherwise.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsections (3) and (4) a reference to the resolution instrument is a reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the instrument,</p></content></level><level class="para1"><num>(b)</num><content><p>anything that is done by the instrument or is to be, or may be, done under or by virtue of the instrument, and</p></content></level><level class="para1"><num>(c)</num><content><p>any action or decision taken or made under this or another enactment in so far as it resulted in, or was connected to, the making of the instrument.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Provision under subsection (2) may apply subsection (3) or (4)—</p></intro><level class="para1"><num>(a)</num><content><p>generally or only for specified purposes, cases or circumstances, or</p></content></level><level class="para1"><num>(b)</num><content><p>differently for different purposes, cases or circumstances.</p></content></level></subsection><subsection><num>(7)</num><content><p>A thing is not done by virtue of a resolution instrument for the purposes of subsection (5)(b) merely by virtue of being done under a contract or other agreement rights or obligations under which have been affected by the instrument.</p></content></subsection></section><section><num>48N</num><heading>Directors</heading><subsection><num>(1)</num><intro><p>A resolution instrument may enable the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>to remove a director of a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(c)</num><content><p>to terminate the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(d)</num><content><p>to appoint a director of a specified bank.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) also applies to a director of any undertaking which is a banking group company in respect of a specified bank.</p></content></subsection><subsection><num>(3)</num><content><p>Appointments under subsection (1)(d) are to be on terms and conditions agreed with the Bank of England.</p></content></subsection></section><section><num>48O</num><heading>Directions in or under resolution instrument</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require one or more directors of the bank to comply with any general or specific directions that may be set out in the instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>enable the Bank of England to give written directions (whether general or specific) to one or more directors of the bank.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A director—</p></intro><level class="para1"><num>(a)</num><content><p>is not to be regarded as failing to comply with any duty owed to any person (for example, a shareholder, creditor or employee of the bank) by virtue of any action or inaction in compliance with a direction given under subsection (1)(a) or (b);</p></content></level><level class="para1"><num>(b)</num><content><p>is to be immune from liability in damages in respect of action or inaction in accordance with a direction.</p></content></level></subsection><subsection><num>(3)</num><content><p>A director must comply with a direction within the period of time specified in the direction, or if no period of time is specified, as soon as reasonably practicable.</p></content></subsection><subsection><num>(4)</num><content><p>A direction under subsection (1)(a) or (b) is enforceable on an application made by the Bank of England, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.</p></content></subsection></section><section><num>48P</num><heading>Orders for safeguarding certain financial arrangements</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-protected-arrangements">protected arrangements</term>” means security interests, title transfer collateral arrangements, set-off arrangements and netting arrangements.</p></content></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-netting-arrangements">netting arrangements</term>” means arrangements under which a number of claims or obligations can be converted into a net claim or obligation, and includes, in particular, “close-out” netting arrangements, under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-security-interests">security interests</term>” means arrangements under which one person acquires, by way of security, an actual or contingent interest in the property of another;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-set-off-arrangements">set-off arrangements</term>” means arrangements under which two or more debts, claims or obligations can be set off against each other;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-title-transfer-collateral-arrangements">title transfer collateral arrangements</term>” means arrangements under which Person 1 transfers assets to Person 2 on terms providing for Person 2 to transfer assets if specified obligations are discharged.</p></content></hcontainer></subsection><subsection><num>(3)</num><intro><p>The Treasury may by order—</p></intro><level class="para1"><num>(a)</num><content><p>restrict the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(b)</num><content><p>impose conditions on the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(c)</num><content><p>require any instrument that makes special bail-in provision to include specified provision, or provision to a specified effect, in respect of or for purposes connected with protected arrangements;</p></content></level><level class="para1"><num>(d)</num><content><p>provide for an instrument to be void or voidable, or for other consequences to arise, if or in so far as the instrument is made or purported to be made in contravention of a provision of the order (or of another order under this section);</p></content></level><level class="para1"><num>(e)</num><intro><p>specify principles to which the Bank of England is to be required to have regard in exercising specified powers—</p></intro><level class="para2"><num>(i)</num><content><p>that involve protected arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>where the exercise of the powers might affect protected arrangements.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>References to exercising a power within the scope of paragraph (a) or (b) of subsection (3) are to making an instrument containing provision made in reliance on section 12A(3)(a) or 44B (special bail-in provision).</p></content></subsection><subsection><num>(5)</num><intro><p>An order may apply to protected arrangements generally or only to arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>of a specified kind, or</p></content></level><level class="para1"><num>(b)</num><content><p>made or applying in specified circumstances.</p></content></level></subsection><subsection><num>(6)</num><content><p>An order may include provision for determining which arrangements are to be, or not to be, treated as protected arrangements; in particular, an order may provide for arrangements to be classified not according to their description by the parties but according to one or more indications of how they are treated, or are intended to be treated, in commercial practice.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes arrangements which—</p></intro><level class="para1"><num>(a)</num><content><p>are formed wholly or partly by one or more contracts or trusts;</p></content></level><level class="para1"><num>(b)</num><content><p>arise under or are wholly or partly governed by the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1"><num>(c)</num><content><p>wholly or partly arise automatically as a matter of law;</p></content></level><level class="para1"><num>(d)</num><content><p>involve any number of parties;</p></content></level><level class="para1"><num>(e)</num><content><p>operate partly by reference to other arrangements between parties.</p></content></level></subsection><subsection><num>(8)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48Q</num><heading>Continuity</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for anything (including legal proceedings) that relates to anything affected by the instrument and is in the process of being done immediately before the instrument takes effect to be continued from the time the instrument takes effect.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may modify references (express or implied) in an instrument or document.</p></content></subsection><subsection><num>(3)</num><content><p>A resolution instrument may require or permit any person to provide information and assistance to the Bank of England or another person, for the purposes of or in connection with provision made or to be made in that or another resolution instrument.</p></content></subsection></section><section><num>48R</num><heading>Execution and registration of instruments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>A resolution instrument may permit or require the execution, issue or delivery of an instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may provide for any provision in the instrument to have effect irrespective of—</p></intro><level class="para1"><num>(a)</num><content><p>whether an instrument has been produced, delivered, transferred or otherwise dealt with;</p></content></level><level class="para1"><num>(b)</num><content><p>registration.</p></content></level></subsection><subsection><num>(3)</num><content><p>A resolution instrument may provide for the effect of an instrument executed, issued or delivered in accordance with the resolution instrument.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>entitle a person to be registered in respect of a security;</p></content></level><level class="para1"><num>(b)</num><content><p>require a person to effect registration.</p></content></level></subsection></section><section><num>48S</num><heading>Resolution instruments: general matters</heading><subsection><num>(1)</num><content><p>Provision made in a resolution instrument takes effect despite any restriction arising by virtue of contract or legislation or in any other way.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may include incidental, consequential or transitional provision.</p></content></subsection><subsection><num>(3)</num><intro><p>In relying on subsection (2) a resolution instrument—</p></intro><level class="para1"><num>(a)</num><content><p>may make provision generally or only for specified purposes, cases or circumstances, and</p></content></level><level class="para1"><num>(b)</num><content><p>may make different provision for different purposes, cases or circumstances.</p></content></level></subsection></section><section><num>48T</num><heading>Procedure</heading><subsection><num>(1)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument in respect of a bank the Bank of England must send a copy to—</p></intro><level class="para1"><num>(a)</num><content><p>the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(c)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(d)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(e)</num><content><p>any other person specified in the code of practice under section 5.</p></content></level></subsection><subsection><num>(2)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument the Bank of England must publish a copy—</p></intro><level class="para1"><num>(a)</num><content><p>on the Bank's internet website, and</p></content></level><level class="para1"><num>(b)</num><content><p>in two newspapers, chosen by the Bank of England to maximise the likelihood of the instrument coming to the attention of persons likely to be affected.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where the Treasury receive a copy of a resolution instrument under subsection (1) they must lay a copy before Parliament.</p></content></subsection></section><section><num>48U</num><heading>Supplemental resolution instruments</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) with respect to a bank.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make, with respect to the bank, one or more resolution instruments designated by the Bank of England as supplemental resolution instruments.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a supplemental resolution instrument (but it is to be treated in the same way as a resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a supplemental resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>The possibility of making a supplemental resolution instrument in reliance on subsection (2) is without prejudice to the possibility of making a new instrument in accordance with section 12A(2) (and not in reliance on subsection (2) above).</p></content></subsection></section><section><num>48V</num><heading>Onward transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) providing for securities issued by a specified bank to be transferred to any person.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more onward transfer resolution instruments.</p></content></subsection><subsection><num>(3)</num><intro><p>An onward transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><intro><p>provides for the transfer of—</p></intro><level class="para2"><num>(i)</num><content><p>securities which were issued by the bank before the original instrument and have been transferred by the original instrument or a supplemental resolution instrument, or</p></content></level><level class="para2"><num>(ii)</num><content><p>securities which were issued by the bank after the original instrument;</p></content></level></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities issued by the bank (whether the transfer has been or is to be effected by that instrument, by another instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>An onward transfer resolution instrument may not transfer securities to the transferor under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to an onward transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making an onward transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 48U applies where the Bank of England has made an onward transfer resolution instrument.</p></content></subsection></section><section><num>48W</num><heading>Reverse transfer</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England has made an instrument (“the original instrument”) that is either—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument providing for the transfer of securities issued by a bank to a person (“<term refersTo="#term-the-transferee">the transferee</term>”), or</p></content></level><level class="para1"><num>(b)</num><content><p>an onward transfer resolution instrument (see section 48V) providing for the transfer of securities issued by a bank to a person (“the onward transferee”).</p></content></level></subsection><subsection><num>(2)</num><content><p>In a case falling within subsection (1)(a) the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the transferee (whether or not they were transferred by the original instrument).</p></content></subsection><subsection><num>(3)</num><content><p>In a case falling within subsection (1)(b), the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the onward transferee.</p></content></subsection><subsection><num>(4)</num><intro><p>A reverse transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities which are, or could be or could have been, transferred under paragraph (a).</p></content></level></subsection><subsection><num>(5)</num><content><p>Except where subsection (6) applies, the Bank of England may make a reverse transfer resolution instrument under subsection (2) only with the written consent of the transferee.</p></content></subsection><subsection><num>(6)</num><intro><p>This subsection applies where the transferee is—</p></intro><level class="para1"><num>(a)</num><content><p>a bail-in administrator, or</p></content></level><level class="para1"><num>(b)</num><content><p>a person who is not to be authorised to exercise any rights attaching to the securities except on the Bank of England's instructions.</p></content></level></subsection><subsection><num>(7)</num><content><p>The Bank of England may make a reverse transfer resolution instrument under subsection (3) only with the written consent of the onward transferee.</p></content></subsection><subsection><num>(8)</num><content><p>Sections 7 and 8A do not apply to a reverse transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes including for the purposes of an application of a power under this Part).</p></content></subsection><subsection><num>(9)</num><intro><p>Before making a reverse transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(10)</num><content><p>Section 48U applies where the Bank of England has made a reverse transfer resolution instrument.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-transfers-of-property"><heading><i>Transfers of property</i></heading><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><content><p><mod>After section 41 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>41A</num><heading>Transfer of property subsequent to resolution instrument</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more property transfer instruments in respect of property, rights or liabilities of the bank.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a property transfer instrument under subsection (2).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a property transfer instrument under subsection (2) the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><intro><p>In section 42 (supplemental property transfer instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-5-2-a"><num>(a)</num><content><p><mod>in subsection (1) for “12(2)” substitute <quotedText>“
12(2) or 41A(2)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-b"><num>(b)</num><content><p><mod>in subsection (4) for “and 8” substitute <quotedText>“
, 8 and 8A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-c"><num>(c)</num><content><p><mod>in subsection (6) for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p><mod>After section 44 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>44A</num><heading>Bail in: reverse property transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a property transfer instrument in accordance with section 41A(2) (“the original instrument”).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more bail-in reverse property transfer instruments in respect of property, rights or liabilities of the transferee under the original instrument.</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in reverse property transfer instrument is a property transfer instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for a transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, or could be or could have been, transferred under paragraph (a) (whether the transfer has been or is to be effected by that instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>The Bank of England may make a bail-in reverse property transfer instrument only with the written consent of the transferee under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to a bail-in reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making a bail-in reverse property transfer instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 42 (supplemental instruments) applies where the Bank of England has made a bail-in reverse property transfer instrument.</p></content></subsection></section><section><num>44B</num><heading>Property transfer instruments: special bail-in provision</heading><subsection><num>(1)</num><content><p>A property transfer instrument under section 12(2) or 41A(2), or an associated supplemental property transfer instrument, may make special bail-in provision with respect to the bank (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The reference in subsection (1) to an “associated” supplemental property transfer instrument is to a supplemental property transfer instrument in relation to which the original instrument (as defined in section 42(1)) is a property transfer instrument under section 12(2) or 41A(2).</p></content></subsection><subsection><num>(3)</num><content><p>In the case of a property transfer instrument under section 12(2), or a supplemental property transfer instrument in relation to which the original instrument is a property transfer instrument under section 12(2), the power under subsection (1) to make the provision described in section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes power to make provision replacing a liability (of any form) of the bank mentioned in subsection (1) with a security (of any form or class) of the bridge bank mentioned in section 12(1).</p></content></subsection><subsection><num>(4)</num><content><p>Where securities of the bridge bank (“B”) are, as a result of subsection (3), held by a person other than the Bank of England, that does not prevent B from being regarded for the purposes of this Part (see particularly section 12(1)) as being wholly owned by the Bank of England, as long as the Bank of England continues to hold all the ordinary shares issued by B.</p></content></subsection></section><section><num>44C</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a property transfer instrument containing provision made in reliance on section 44B.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision was made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the property transfer instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p><mod>In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert <quotedText>“
, 44A(3)(b)
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-compensation"><heading><i>Compensation</i></heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-2-paragraph-6-1"><num>(1)</num><intro><p>In section 49 (orders)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-1-a"><num>(a)</num><content><p><mod>in subsection (1), for “three” substitute <quotedText>“
four
”</quotedText> and for “and property transfer instruments” substitute <quotedText>“
, property transfer instruments and orders and resolution instruments
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-1-b"><num>(b)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>A “bail-in compensation order” is an order establishing a scheme for determining, in accordance with section 52A, whether any transferors or others should be paid compensation.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-2"><num>(2)</num><content><p><mod>In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified classes of creditor,” substitute <quotedText>“
persons of a specified description,
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-3"><num>(3)</num><content><p><mod>After section 52 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>52A</num><heading>Bail-in option</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies if the Bank of England makes—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument under section 12A(2), or</p></content></level><level class="para1"><num>(b)</num><content><p>a property transfer instrument under section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury must make a bail-in compensation order (see section 49(2A)).</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in compensation order may include provision for—</p></intro><level class="para1"><num>(a)</num><content><p>an independent valuer (in which case sections 54 to 56 are to apply);</p></content></level><level class="para1"><num>(b)</num><content><p>valuation principles (in which case section 57(2) to (5) is to apply).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-4"><num>(4)</num><intro><p>In section 53 (onward and reverse transfers), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-4-a"><num>(a)</num><content><p><mod>before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zza)</num><content><p>the Bank of England makes a supplemental share transfer instrument under section 26,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-b"><num>(b)</num><content><p><mod>after paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zb)</num><content><p>the Treasury makes a supplemental share transfer order under section 27,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-c"><num>(c)</num><content><p><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(dza)</num><content><p>the Bank of England makes a supplemental property transfer instrument under section 42,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-d"><num>(d)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(fa)</num><content><p>the Bank of England makes a reverse property transfer instrument under section 44A(2),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-e"><num>(e)</num><content><p>omit the “or” after paragraph (g);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-f"><num>(f)</num><content><p><mod>after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Bank of England makes a supplemental resolution instrument under section 48U,</p></content></level><level class="para1"><num>(j)</num><content><p>the Bank of England makes an onward transfer resolution instrument under section 48V(2), or</p></content></level><level class="para1"><num>(k)</num><content><p>the Bank of England makes a reverse transfer resolution instrument under section 48W(2) or (3).</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-g"><num>(g)</num><content><p><mod>in the heading, after “<b>transfers</b>” insert <quotedText>“
<b><abbr title="Et cetera" xml:lang="la">etc</abbr></b>
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-5"><num>(5)</num><intro><p>In section 54 (independent valuer)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-5-a"><num>(a)</num><content><p><mod>in subsection (1), after “compensation scheme order” insert <quotedText>“
or bail-in compensation order
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-5-b"><num>(b)</num><content><p><mod>in subsection (4)(b), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-6"><num>(6)</num><content><p><mod>In section 56 (independent valuer: money), in subsection (2)(b) for “or third party compensation order” substitute <quotedText>“
, third party compensation order or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-7"><num>(7)</num><content><p><mod>In section 57 (valuation principles), in subsection (1), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-8"><num>(8)</num><content><p><mod>After section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Further mandatory provision: bail-in provision</heading><subsection><num>(1)</num><intro><p>The Treasury may make regulations about compensation arrangements in the case of—</p></intro><level class="para1"><num>(a)</num><content><p>resolution instruments under section 12A(2) and supplemental resolution instruments under section 48U(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>instruments (made under any provision) that include special bail-in provision.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Regulations may—</p></intro><level class="para1"><num>(a)</num><content><p>require a resolution fund order, a compensation scheme order, a third party compensation order or a bail-in compensation order to include provision of a specified kind or to specified effect;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision that is to be treated as forming part of any such order (whether (i) generally, (ii) only if applied, (iii) unless disapplied, or (iv) subject to express modification).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Regulations may provide for whether compensation is to be paid, and if so what amount is to be paid, to be determined by reference to any factors or combination of factors; in particular, the regulations may provide for entitlement—</p></intro><level class="para1"><num>(a)</num><content><p>to depend in part upon the amounts which are or may be payable under a resolution fund order;</p></content></level><level class="para1"><num>(b)</num><content><p>to be contingent upon the occurrence or non-occurrence of specified events;</p></content></level><level class="para1"><num>(c)</num><content><p>to be determined wholly or partly by an independent valuer (within the meaning of sections 54 to 56) appointed in accordance with a compensation scheme order or bail-in compensation order.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Regulations may make provision about payment including, in particular, provision for payments—</p></intro><level class="para1"><num>(a)</num><content><p>on account subject to terms and conditions;</p></content></level><level class="para1"><num>(b)</num><content><p>by instalment.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>60B</num><heading>Principle of no less favourable treatment</heading><subsection><num>(1)</num><content><p>In making regulations under section 60A the Treasury must, in particular, have regard to the desirability of ensuring that pre-resolution shareholders and creditors of a bank do not receive less favourable treatment than they would have received had the bank entered insolvency immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>References in this section to the initial instrument are—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to compensation arrangements in the case of property transfer instruments under section 12(2), to the first instrument to be made under that provision with respect to the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to compensation arrangements in other cases, to the first resolution instrument to be made under section 12A with respect to the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “pre-resolution shareholders and creditors” of a bank are the persons who held securities issued by the bank, or were creditors of the bank, immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to insolvency include a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) receivership, (vi) composition with creditors, and (vii) a scheme of arrangement.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-9"><num>(9)</num><intro><p>In section 61(1) (sources of compensation),—</p></intro><level class="para1" eId="schedule-2-paragraph-6-9-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (c);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-b"><num>(b)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>bail-in compensation orders,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-c"><num>(c)</num><content><p><mod>after paragraph (d) insert, “, and<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(e)</num><content><p>regulations under section 60A.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-10"><num>(10)</num><content><p><mod>In section 62(1) (procedure), omit the “and” at the end of paragraph (b), and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>bail-in compensation orders, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-groups"><heading><i>Groups</i></heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p><mod>After section 81B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81BA</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition 1 is that the PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of a bank in the same group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition 2 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition 3 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.</p></content></subsection><subsection><num>(5)</num><intro><p>Before determining whether Condition 2 is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>In exercising a stabilisation power in reliance on this section the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><content><p><mod>After section 81C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81CA</num><heading>Section 81BA: supplemental</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has power under section 81BA to exercise a stabilisation power in respect of a banking group company.</p></content></subsection><subsection><num>(2)</num><content><p>The provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 and 8A) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.</p></content></subsection><subsection><num>(3)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions in this Act relating to resolution instruments are to be read in accordance with the general rule in subsection (4), but</p></content></level><level class="para1"><num>(b)</num><content><p>that is subject to the modifications in subsection (5);</p></content></level><wrapUp><p>and provisions in this Act and any other enactment are to be read with any modifications that may be necessary as a result of paragraphs (a) and (b).</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>The general rule is that the provisions in this Act relating to resolution instruments (including supplemental resolution instruments) are to be read (so far as the context permits)—</p></intro><level class="para1"><num>(a)</num><content><p>as applying in relation to the bank as they apply in relation to the parent undertaking, and</p></content></level><level class="para1"><num>(b)</num><content><p>so, in particular, as allowing any provision that may be made in a resolution instrument in relation to the parent undertaking to be made (also or instead) in relation to the bank.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>section 41A (transfer of property subsequent to resolution instrument) applies as if the reference in subsection (2) to the bank were to the parent undertaking, the bank and any other bank which is or was in the same group;</p></content></level><level class="para1"><num>(b)</num><intro><p>section 48V (onward transfer)—</p></intro><level class="para2"><num>(i)</num><content><p>applies as if the references in subsection (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group, and with the omission of subsection (4) of that section, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is to be read as permitting the transfer of securities only if they are held by (or for the benefit of) the parent undertaking or a subsidiary company of the parent undertaking;</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 48W (reverse transfer) applies as if the references in subsections (2) and (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group.</p></content></level></subsection><subsection><num>(6)</num><content><p>Where section 48B (special bail-in provision) applies in accordance with subsection (4) (so that section 48B applies in relation to the bank mentioned in section 81BA(2) as it applies in relation to the parent undertaking mentioned in subsection (3)), the provision that may be made in accordance with section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes provision replacing a liability (of any form) of that bank with a security (of any form or class) of the parent undertaking.</p></content></subsection><subsection><num>(7)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2)—</p></intro><level class="para1"><num>(a)</num><content><p>section 214B of the Financial Services and Markets Act 2000 (contribution to costs of special resolution regime) applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference in subsection (1)(b) of that section to the bank, and later references in that section, are treated as including references to any other bank which is a subsidiary undertaking of the parent undertaking (but not the parent undertaking itself).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><intro><p>In section 81D (interpretation: “banking group company” <abbr title="Et cetera" xml:lang="la">etc</abbr>)—</p></intro><level class="para1" eId="schedule-2-paragraph-7-3-a"><num>(a)</num><content><p><mod>in subsection (6), for “, 81C” substitute <quotedText>“
to 81CA
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-7-3-b"><num>(b)</num><content><p><mod>in subsection (7) for “section 81B” substitute <quotedText>“
sections 81B to 81CA
”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-banks-regulated-by-the-financial-conduct-authority"><heading><i>Banks regulated by the Financial Conduct Authority</i></heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 83A (modifications of Part 1 as it applies to banks not regulated by the Prudential Regulation Authority), in the table in subsection (2) insert the following entries at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 8A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 41A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 44A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 48H</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48U</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48V</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48W</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 81BA</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-recognised-central-counterparties"><heading><i>Recognised central counterparties</i></heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num><noteRef href="#key-1ae2b182a6b3fff3e2dd051310b09bab" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>9</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-insolvency-proceedings"><heading><i>Insolvency proceedings</i></heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(ii), after “Part 1” insert <quotedText>“
(and Condition 5 has been met, if applicable)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Condition 5—</p></intro><level class="para1"><num>(a)</num><content><p>applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-c"><num>(c)</num><content><p><mod>in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-d"><num>(d)</num><content><p><mod>after subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-state-aid"><heading><i>State aid</i></heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num><noteRef href="#key-1388f7f47d63b0c81dc5424d5f05473b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>11</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-other-amendments-of-the-act"><heading><i>Other amendments of the Act</i></heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-2-paragraph-12-1"><num>(1)</num><content><p>Section 1 (overview) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-2"><num>(2)</num><content><p><mod>In subsection (2)(a), for “three” substitute <quotedText>“
four
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The four “stabilisation options” are—</p></intro><level class="para1"><num>(a)</num><content><p>transfer to a private sector purchaser (section 11),</p></content></level><level class="para1"><num>(b)</num><content><p>transfer to a bridge bank (section 12),</p></content></level><level class="para1"><num>(c)</num><content><p>the bail-in option (section 12A), and</p></content></level><level class="para1"><num>(d)</num><content><p>transfer to temporary public ownership (section 13).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-2-paragraph-12-4-a"><num>(a)</num><content><p><mod>for “three” substitute <quotedText>“
four
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-b"><num>(b)</num><content><p><mod>before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>the resolution instrument powers (sections 12A(2) and 48U to 48W),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-c"><num>(c)</num><content><p><mod>in paragraph (b), after “33” insert <quotedText>“
, 41A
”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 13 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 17 (share transfers: effect)—</p></intro><level class="para1" eId="schedule-2-paragraph-14-a"><num>(a)</num><content><p><mod>in subsection (1), after “order” insert, <quotedText>“
or by a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-b"><num>(b)</num><content><p><mod>in subsection (5), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-c"><num>(c)</num><content><p><mod>in subsection (6), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 18 (share transfers: continuity), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>This section applies to a resolution instrument as it applies to a share transfer instrument; and in relation to a resolution instrument references in this section to a “transfer” are to a transfer of securities (whether made by that or another resolution instrument) and “<term refersTo="#term-transferor">transferor</term>” and “<term refersTo="#term-transferee">transferee</term>” are to be read accordingly.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><intro><p>In section 44 (reverse property transfer)—</p></intro><level class="para1" eId="schedule-2-paragraph-16-a"><num>(a)</num><content><p><mod>in subsection (2), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-b"><num>(b)</num><content><p><mod>in subsection (3), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-c"><num>(c)</num><content><p><mod>in subsection (4), for “A reverse” substitute <quotedText>“
A bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-d"><num>(d)</num><intro><p>in subsection (4A)—</p></intro><level class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-2-paragraph-16-e"><num>(e)</num><content><p><mod>in subsection (5), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-f"><num>(f)</num><content><p><mod>in subsection (6), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-g"><num>(g)</num><content><p><mod>in subsection (7), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-h"><num>(h)</num><content><p><mod>in the heading, for “<b>Reverse</b>” substitute <quotedText>“
<b>Bridge bank: reverse</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><intro><p>In section 66 (general continuity obligation: share transfers)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-a"><num>(a)</num><content><p><mod>in subsection (1)(a), after “13(2)” insert <quotedText>“
, or which falls within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-b"><num>(b)</num><content><p><mod>in subsection (1)(d)(i), after “11(2)(a)” insert <quotedText>“
, or in a case falling within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another of securities issued by the bank (and the reference in subsection (1)(b) to “<term refersTo="#term-the-transfer">the transfer</term>” includes such a cancellation or conversion).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert <quotedText>“
or resolution instrument
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert <quotedText>“
a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><intro><p>In section 71 (pensions), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-21-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-21-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-22" class="schProv1"><num>22</num><intro><p>In section 72 (enforcement), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a resolution instrument.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 73 (disputes), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-23-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-23-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-24" class="schProv1"><num>24</num><content><p><mod>In section 74 (tax), in subsection (6), for “or 45” substitute <quotedText>“
, 45, 48U or 48V
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-25" class="schProv1"><num>25</num><content><p><mod>After section 80 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>80A</num><heading>Transfer for bail-in purposes: report</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes one or more resolution instruments under section 12A(2) in respect of a bank.</p></content></subsection><subsection><num>(2)</num><intro><p>The Bank of England must, on request by the Treasury, report to the Chancellor of the Exchequer about—</p></intro><level class="para1"><num>(a)</num><content><p>the exercise of the power to make a resolution instrument under section 12A(2),</p></content></level><level class="para1"><num>(b)</num><content><p>the activities of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other matters in relation to the bank that the Treasury may specify.</p></content></level></subsection><subsection><num>(3)</num><content><p>In relation to the matters in subsection (2)(a) and (b), the report must comply with any requirements that the Treasury may specify.</p></content></subsection><subsection><num>(4)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-26" class="schProv1"><num>26</num><intro><p>In section 81A (accounting information to be included in reports under sections 80 and 81)—</p></intro><level class="para1" eId="schedule-2-paragraph-26-a"><num>(a)</num><content><p><mod>in subsection (1), for “or 81” substitute <quotedText>“
, 80A(2)(b) or 81
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-26-b"><num>(b)</num><content><p><mod>in the heading, for “<b>and 81</b>” substitute <quotedText>“
<b>, 80A(2)(b) and 81</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-27" class="schProv1"><num>27</num><content><p><mod>In section 85 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-28" class="schProv1"><num>28</num><content><p><mod>In section 136 (overview), in the Table in subsection (3), for “152” substitute <quotedText>“
152A
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-29" class="schProv1"><num>29</num><content><p><mod>After section 152 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>152A</num><heading>Property transfer from transferred institution</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>makes a resolution instrument that transfers securities issued by a bank (or a bank's parent undertaking), in accordance with section 12A(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>later makes a property transfer instrument from the bank or from another bank which is or was in the same group as the bank, in accordance with section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>This Part applies to the transferor under the property transfer instrument made in accordance with section 41A(2) as to the transferor under a property transfer instrument made in accordance with section 12(2).</p></content></subsection><subsection><num>(3)</num><intro><p>For that purpose this Part applies with any modifications specified by the Treasury in regulations; and any regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 220 (insolvency <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>The fact that ownership of an authorised bank is transferred or otherwise changed as a result of a resolution instrument (or an instrument treated as a resolution instrument) does not itself prevent the bank from relying on section 213.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-31" class="schProv1"><num>31</num><intro><p>In section 259 (statutory instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-31-a"><num>(a)</num><content><p><mod>in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute <quotedText>“
Third party compensation: partial property transfers
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-b"><num>(b)</num><content><p><mod>in the Table in subsection (3), in Part 1, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48F(1) and (2)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to amend definition of “excluded liabilities”</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48G</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Insolvency treatment principles</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48P</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Safeguarding of certain financial arrangements</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">52A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation orders</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“60A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Third party compensation: instruments containing special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-c"><num>(c)</num><content><p><mod>in the Table in subsection (3), in Part 3, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">152A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Property transfer from transferred institution</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-d"><num>(d)</num><content><p><mod>in subsection (5), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><content><p>section 60A (special resolution regime: instruments containing special bail-in provision),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-e"><num>(e)</num><content><p><mod>in subsection (5), after paragraph (k) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ka)</num><content><p>section 152A (bank administration: property transfer from transferred institution),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 261 (index of defined terms), in the Table, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation order</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">49”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Resolution instrument</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12A”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48B</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer></part><part eId="schedule-2-part-2"><num><b>PART 2</b></num><heading>Modification of Investment Bank Special Administration Regulations 2011</heading><paragraph eId="schedule-2-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-2-paragraph-33-1"><num>(1)</num><content><p>This paragraph modifies the application of the Investment Bank Special Administration Regulations 2011 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2011/245) (“<term refersTo="#term-the-regulations" eId="term-the-regulations">the regulations</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-2"><num>(2)</num><content><p>In sub-paragraph (1) “<term refersTo="#term-the-relevant-3-month-period" eId="term-the-relevant-3-month-period">the relevant 3-month period</term>” means the 3 months ending with the date on which the FCA receives the notification under Condition 1 in regulation 8 of the regulations.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-4"><num>(4)</num><intro><p>In regulation 8 (in its application to those cases)—</p></intro><level class="para1" eId="schedule-2-paragraph-33-4-a"><num>(a)</num><content><p><mod>in paragraph (5)(c)(ii), for “appropriate regulator” substitute <quotedText>“
Bank of England
”</quotedText> and after “notice” insert <quotedText>“
and the appropriate regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-b"><num>(b)</num><content><p>in paragraph (6), omit sub-paragraph (a) (but continue to read “that” in sub-paragraph (b) as a reference to the insolvency procedure to which the notice relates);</p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-c"><num>(c)</num><content><p><mod>after paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(6A)</num><content><p>Where the FCA receives notice under Condition 1, it must also inform the Bank of England of the contents of the notice.</p></content></subsection><subsection><num>(6B)</num><content><p>Where the Bank of England receives notice under paragraph (6A), it must, within the period in Condition 3, inform the person who gave the notice and the appropriate regulator whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-2-part-1"><num><b>PART 1</b></num><heading>Amendments of Banking Act 2009</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p>The Banking Act 2009 is amended as follows.</p></content></paragraph><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-new-stabilisation-option-bailin"><heading><i>New stabilisation option: bail-in</i></heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>12A</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The third stabilisation option is exercised by the use of the power in subsection (2).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more resolution instruments (which may contain provision or proposals of any kind mentioned in subsections (3) to (6)).</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make special bail-in provision with respect to a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, any special bail-in provision made by that or another instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>provide for securities issued by a specified bank to be transferred to a bail-in administrator (see section 12B) or another person;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, the transfer of securities issued by a specified bank (whether or not the transfer has been or is to be effected by that instrument, by another resolution instrument or otherwise).</p></content></level></subsection><subsection><num>(5)</num><content><p>A resolution instrument may set out proposals with regard to the future ownership of a specified bank or of the business of a specified bank, and any other proposals (for example, proposals about making special bail-in provision) that the Bank of England may think appropriate.</p></content></subsection><subsection><num>(6)</num><content><p>A resolution instrument may make any other provision the Bank of England may think it appropriate to make in exercise of specific powers under this Part.</p></content></subsection><subsection><num>(7)</num><intro><p>Provision made in accordance with subsection (4) may relate to—</p></intro><level class="para1"><num>(a)</num><content><p>specified securities, or</p></content></level><level class="para1"><num>(b)</num><content><p>securities of a specified description.</p></content></level></subsection><subsection><num>(8)</num><content><p>Where the Bank of England has exercised the power in subsection (4) to transfer securities to a bail-in administrator, the Bank of England must exercise its functions under this Part (see, in particular, section 48V) with a view to ensuring that any securities held by a person in the capacity of a bail-in administrator are so held only for so long as is, in the Bank of England's opinion, appropriate having regard to the special resolution objectives.</p></content></subsection><subsection><num>(9)</num><content><p>References in this Part to “special bail-in provision” are to provision made in reliance on section 48B.</p></content></subsection></section><section><num>12B</num><heading>Bail-in administrators</heading><subsection><num>(1)</num><content><p>The Bank of England may, in a resolution instrument, appoint an individual or body corporate as a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>A bail-in administrator is appointed—</p></intro><level class="para1"><num>(a)</num><content><p>to hold any securities that may be transferred or issued to that person in the capacity of bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>to perform any other functions that may be conferred under any provision of this Part.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Bank of England may appoint more than one bail-in administrator to perform functions in relation to a bank (but no more than one of them may at any one time be authorised to hold securities as mentioned in subsection (2)(a)).</p></content></subsection><subsection><num>(4)</num><content><p>Securities held by a bail-in administrator (in that capacity, and whether as a result of a resolution instrument or otherwise) are to be held in accordance with the terms of a resolution instrument that transfers those, or other, securities to the bail-in administrator.</p></content></subsection><subsection><num>(5)</num><intro><p>For example, the following provision may be made by virtue of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights of a bail-in administrator with respect to all or any of the securities are to be exercisable only as directed by the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>provision specifying rights or obligations that the bail-in administrator is, or is not, to have in relation to some or all of the securities.</p></content></level></subsection><subsection><num>(6)</num><content><p>A bail-in administrator must have regard, in performing any functions of the office, to any objectives that may be specified in a resolution instrument.</p></content></subsection><subsection><num>(7)</num><content><p>Where one or more objectives are specified in accordance with subsection (6), the objectives are to be taken to have equal status with each other, unless the contrary is stated in the resolution instrument.</p></content></subsection><subsection><num>(8)</num><content><p>See sections 48I to 48K for further provision about bail-in administrators.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>8A</num><heading>Specific condition: bail-in</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a bank in accordance with section 12A(2) only if satisfied that the condition in subsection (2) is met.</p></content></subsection><subsection><num>(2)</num><intro><p>The condition is that the exercise of the power is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before determining whether that condition is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(4)</num><content><p>The condition in this section is in addition to the conditions in section 7.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-further-provision-about-the-bailin-option"><heading><i>Further provision about the bail-in option</i></heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After section 48A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Bail-in option</i></heading><section><num>48B</num><heading>Special bail-in provision</heading><subsection><num>(1)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, means any of the following (or any combination of the following)—</p></intro><level class="para1"><num>(a)</num><content><p>provision cancelling a liability owed by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provision modifying, or changing the form of, a liability owed by the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that a contract under which the bank has a liability is to have effect as if a specified right had been exercised under it.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, also includes any associated provision (see subsection (3)) that the Bank of England may think it appropriate to make in consequence of any provision under subsection (1) that—</p></intro><level class="para1"><num>(a)</num><content><p>is made in the same resolution instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>has been made in another resolution instrument in respect of the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-associated-provision">Associated provision</term>” means provision cancelling or modifying a contract under which a banking group company has a liability.</p></content></subsection><subsection><num>(4)</num><intro><p>A power to make special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>may be exercised only for the purpose of, or in connection with, reducing, deferring or cancelling a liability of the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>may not be exercised so as to affect any excluded liability.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The following rules apply to the interpretation of subsection (1).</p></intro><level class="para1"><num>1</num><content><p>The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability.</p></content></level><level class="para1"><num>2</num><content><p>The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability.</p></content></level><level class="para1"><num>3</num><intro><p>The reference to changing the form of a liability owed by the bank, includes, for example—</p></intro><level class="para2"><num>(a)</num><content><p>converting an instrument under which the bank owes a liability from one form or class to another,</p></content></level><level class="para2"><num>(b)</num><content><p>replacing such an instrument with another instrument of a different form or class, or</p></content></level><level class="para2"><num>(c)</num><content><p>creating a new security (of any form or class) in connection with the modification of such an instrument.</p></content></level></level></subsection><subsection><num>(6)</num><intro><p>Examples of special bail-in provision include—</p></intro><level class="para1"><num>(a)</num><content><p>provision that transactions or events of any specified kind have or do not have (directly or indirectly) specified consequences or are to be treated in a specified manner for specified purposes;</p></content></level><level class="para1"><num>(b)</num><content><p>provision discharging persons from further performance of obligations under a contract and dealing with the consequences of persons being so discharged.</p></content></level></subsection><subsection><num>(7)</num><content><p>The form and class of the instrument (“the resulting instrument”) into which an instrument is converted, or with which it is replaced, do not matter for the purposes of paragraphs (a) and (b) of rule 3 in subsection (5); for instance, the resulting instrument may (if it is a security) fall within Class 1 or any other Class in section 14.</p></content></subsection><subsection><num>(8)</num><intro><p>The following liabilities of the bank are “excluded liabilities”—</p></intro><level class="para1"><num>(a)</num><content><p>liabilities representing protected deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>any liability, so far as it is secured;</p></content></level><level class="para1"><num>(c)</num><content><p>liabilities that the bank has by virtue of holding client assets;</p></content></level><level class="para1"><num>(d)</num><content><p>liabilities with an original maturity of less than 7 days owed by the bank to a credit institution or investment firm;</p></content></level><level class="para1"><num>(e)</num><content><p>liabilities arising from participation in designated settlement systems and owed to such systems or to operators of, or participants in, such systems;</p></content></level><level class="para1"><num>(f)</num><content><p>liabilities owed to central counterparties recognised by the European Securities and Markets Authority in accordance with Article 25 of Regulation (EU) 648/2012 of the European Parliament and the Council;</p></content></level><level class="para1"><num>(g)</num><content><p>liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration;</p></content></level><level class="para1"><num>(h)</num><content><p>liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits;</p></content></level><level class="para1"><num>(i)</num><content><p>liabilities owed to creditors arising from the provision to the bank of goods or services (other than financial services) that are critical to the daily functioning of the bank's operations.</p></content></level></subsection><subsection><num>(9)</num><intro><p>The following special rules apply in cases involving banking group companies—</p></intro><level class="para1"><num>(a)</num><content><p>a liability mentioned in subsection (8)(d) is not an excluded liability if the credit institution or investment firm to which the liability is owed is a banking group company in relation to the bank (see section 81D);</p></content></level><level class="para1"><num>(b)</num><content><p>in subsection (8)(i) the reference to creditors does not include companies which are banking group companies in relation to the bank.</p></content></level></subsection></section><section><num>48C</num><heading>Meaning of “protected deposit”</heading><subsection><num>(1)</num><content><p>A deposit is “protected” so far as it is covered by the Financial Services Compensation Scheme.</p></content></subsection><subsection><num>(2)</num><intro><p>A deposit is “protected” so far as it is covered by a scheme which—</p></intro><level class="para1"><num>(a)</num><content><p>operates outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is comparable to the Financial Services Compensation Scheme.</p></content></level></subsection><subsection><num>(3)</num><content><p>If one or both of subsections (1) and (2) apply to a deposit, the amount of the deposit “protected” is the highest amount which results from either of those subsections.</p></content></subsection><subsection><num>(4)</num><content><p>In subsections (1) and (2) and section 48B(8)(a), “<term refersTo="#term-deposit">deposit</term>” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544), but ignoring the exclusions in article 6.</p></content></subsection></section><section><num>48D</num><heading>General interpretation of section 48B</heading><subsection><num>(1)</num><intro><p>In section 48B—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-client-assets">client assets</term>” means assets which the bank has undertaken to hold on trust for, or on behalf of, a client;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-contract">contract</term>” includes any instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-credit-institution">credit institution</term>” means any credit institution as defined in Article 4.1(1) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council, other than an entity mentioned in Article 2.5(2) to (23) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-settlement-system">designated settlement system</term>” means a system designated in accordance with Directive <ref eId="c00004" href="http://www.legislation.gov.uk/european/directive/1998/0026">98/26/<abbr class="acronym" title="European Community">EC</abbr></ref> of the European Parliament and of the Council (as amended by Directives <ref eId="c00005" href="http://www.legislation.gov.uk/european/directive/2009/0044">2009/44/<abbr class="acronym" title="European Community">EC</abbr></ref> and 2010/78/<abbr class="acronym" title="European Union">EU</abbr>);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-employee">employee</term>” includes the holder of an office;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investment-firm">investment firm</term>” means an investment firm as defined in Article 4.1(2) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council that is subject to the initial capital requirement specified in Article 28(2) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pension-scheme">pension scheme</term>” includes any arrangement for the payment of pensions, allowances and gratuities;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-secured">secured</term>” means secured against property or rights, or otherwise covered by collateral arrangements.</p></content></hcontainer></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-assets">assets</term>” has the same meaning as in section 232(4) (ignoring for these purposes section 232(5A)(b));</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-collateral-arrangements">collateral arrangements</term>” includes arrangements which are title transfer collateral arrangements for the purposes of section 48.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of section 48B(8)(h), a benefit under a pension scheme is discretionary so far as the employee's right to the benefit resulted from the exercise of a discretion.</p></content></subsection></section><section><num>48E</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a resolution instrument containing special bail-in provision (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the resolution instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section><section><num>48F</num><heading>Power to amend definition of “excluded liabilities”</heading><subsection><num>(1)</num><intro><p>The Treasury may by order amend section 48B(8) by—</p></intro><level class="para1"><num>(a)</num><content><p>adding to the list of excluded liabilities;</p></content></level><level class="para1"><num>(b)</num><content><p>amending or omitting any paragraph of that subsection, other than paragraphs (a) to (c).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury may by order amend section 48C or 48D.</p></content></subsection><subsection><num>(3)</num><content><p>The powers conferred by subsections (1) and (2) include power to make consequential and transitional provision.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury must consult before laying a draft order under this section before Parliament.</p></content></subsection></section><section><num>48G</num><heading>Priority between creditors</heading><subsection><num>(1)</num><content><p>The Treasury may, for the purpose of ensuring that the treatment of liabilities in any instrument that contains special bail-in provision is aligned to an appropriate degree with the treatment of liabilities on an insolvency, by order specify matters or principles to which the Bank of England is to be required to have regard in making any such instrument.</p></content></subsection><subsection><num>(2)</num><content><p>An order may, for example, specify the insolvency treatment principles (as defined in section 48E(4)) or alternative principles.</p></content></subsection><subsection><num>(3)</num><content><p>An order may specify the meaning of “insolvency” for one or more purposes of the order.</p></content></subsection><subsection><num>(4)</num><content><p>An order may amend sections 44C(4) and 48E(4).</p></content></subsection><subsection><num>(5)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48H</num><heading>Business reorganisation plans</heading><subsection><num>(1)</num><intro><p>A resolution instrument may require a bail-in administrator, or one or more directors of the bank, to—</p></intro><level class="para1"><num>(a)</num><content><p>draw up a business reorganisation plan with respect to the bank, and</p></content></level><level class="para1"><num>(b)</num><content><p>submit it to the Bank of England within the period allowed by (or under) the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-business-reorganisation-plan">Business reorganisation plan</term>” means a plan that includes—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the factors that caused Condition 1 in section 7 to be met in the case of the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>a description of the measures to be adopted with a view to restoring the viability of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>a timetable for the implementation of those measures.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where a person has submitted a business reorganisation plan to the Bank of England under subsection (1) (or has re-submitted a plan under subsection (4)), the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must approve the plan if satisfied that the plan is appropriately designed for meeting the objective mentioned in subsection (2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>must otherwise require the person to amend the plan in a specified manner.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the Bank of England has required a person to amend a business re-organisation plan, the person must re-submit the amended plan within the period allowed by (or under) the resolution instrument.</p></content></subsection><subsection><num>(5)</num><intro><p>Before deciding what action to take under subsection (3) the Bank of England must (for each submission or re-submission of a plan) consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>A business reorganisation plan may include recommendations by the person submitting the plan as to the exercise by the Bank of England of any of its powers under this Part in relation to the bank.</p></content></subsection><subsection><num>(7)</num><intro><p>Where a resolution instrument contains provision under subsection (1), the instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>specify further matters (in addition to those mentioned in subsection (2)) that must be dealt with in the business reorganisation plan;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about the timing of actions to be taken in connection with the making and approval of the plan;</p></content></level><level class="para1"><num>(c)</num><content><p>enable any provision that the Bank of England has power under paragraph (a) or (b) to make in the instrument to be made instead in an agreement between the Bank of England and the person required to draw up the business reorganisation plan.</p></content></level></subsection><subsection><num>(8)</num><content><p>For the purposes of subsection (2)(b) the viability of a bank is to be assessed by reference to whether the bank satisfies, and (if so) for how long it may be expected to continue to satisfy, the threshold conditions (as defined in section 55B of the Financial Services and Markets Act 2000).</p></content></subsection></section><section><num>48I</num><heading>Bail-in administrator: further functions</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise a bail-in administrator to manage the bank's business (or confer on a bail-in administrator any other power with respect to the management of the bank's business);</p></content></level><level class="para1"><num>(b)</num><content><p>authorise a bail-in administrator to exercise any other powers of the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>confer on a bail-in administrator any other power the Bank of England may consider appropriate;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that the exercise of any power conferred by the instrument in accordance with this section is to be subject to conditions specified in the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may require a bail-in administrator to make reports to the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>on any matter specified in the instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>at the times or intervals specified in the instrument.</p></content></level></subsection><subsection><num>(3)</num><content><p>If a resolution instrument specifies a matter in accordance with subsection (2)(a), it may provide for further requirements as to the contents of the report on that matter to be specified in an agreement between the Bank of England and the bail-in administrator.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require a bail-in administrator to consult specified persons before exercising specified functions (and may specify particular matters on which the specified person must be consulted);</p></content></level><level class="para1"><num>(b)</num><content><p>provide that a bail-in administrator is not to exercise specified functions without the consent of a specified person.</p></content></level></subsection></section><section><num>48J</num><heading>Bail-in administrator: supplementary</heading><subsection><num>(1)</num><content><p>A bail-in administrator may do anything necessary or desirable for the purposes of or in connection with the performance of the functions of the office.</p></content></subsection><subsection><num>(2)</num><content><p>A bail-in administrator is not a servant or agent of the Crown (and, in particular, is not a civil servant).</p></content></subsection><subsection><num>(3)</num><intro><p>Where a bail-in administrator is appointed under this Part, the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must make provision in a resolution instrument for resignation and replacement of the bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>may remove the bail-in administrator from office only (i) on the ground of incapacity or misconduct, or (ii) on the ground that there is no further need for a person to perform the functions conferred on the bail-in administrator.</p></content></level></subsection></section><section><num>48K</num><heading>Bail-in administrator: money</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for the payment of remuneration and allowances to a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>Provision made under subsection (1) may provide that the amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>to be paid by the Bank of England, or</p></content></level><level class="para1"><num>(b)</num><content><p>to be determined by the Bank of England and paid by the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>A bail-in administrator is not liable for damages in respect of anything done in good faith for the purposes of or in connection with the functions of the office (subject to section 8 of the Human Rights Act 1998).</p></content></subsection></section><section><num>48L</num><heading>Powers in relation to securities</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>cancel or modify any securities to which this subsection applies;</p></content></level><level class="para1"><num>(b)</num><content><p>convert any such securities from one form or class into another.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) applies to securities issued by the bank that fall within Class 1 in section 14.</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make provision with respect to rights attaching to securities issued by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for the listing of securities issued by the bank to be discontinued.</p></content></level></subsection><subsection><num>(4)</num><content><p>The reference in subsection (1)(b) to converting securities from one form or class into another includes creating a new security in connection with the modification of an existing security.</p></content></subsection><subsection><num>(5)</num><intro><p>The provision that may be made under subsection (3)(a) includes, for example—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights attaching to securities are to be treated as having been exercised;</p></content></level><level class="para1"><num>(b)</num><content><p>provision that the Bank of England, or a bail-in administrator, is to be treated as authorised to exercise specified rights attaching to securities;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that specified rights attaching to securities may not be exercised for a period specified in the instrument.</p></content></level></subsection><subsection><num>(6)</num><content><p>In subsection (3)(b) the reference to “listing” is to listing under section 74 of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(7)</num><content><p>The provision that may be made under this section in relation to any securities is in addition to any provision that the Bank of England may have power to make in relation to them under section 48B.</p></content></subsection></section><section><num>48M</num><heading>Termination rights, <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-default-event-provision">default event provision</term>” has the same meaning as in section 22.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may provide for subsection (3) or (4) to apply (but need not apply either).</p></content></subsection><subsection><num>(3)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies.</p></content></subsection><subsection><num>(4)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies except so far as the instrument provides otherwise.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsections (3) and (4) a reference to the resolution instrument is a reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the instrument,</p></content></level><level class="para1"><num>(b)</num><content><p>anything that is done by the instrument or is to be, or may be, done under or by virtue of the instrument, and</p></content></level><level class="para1"><num>(c)</num><content><p>any action or decision taken or made under this or another enactment in so far as it resulted in, or was connected to, the making of the instrument.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Provision under subsection (2) may apply subsection (3) or (4)—</p></intro><level class="para1"><num>(a)</num><content><p>generally or only for specified purposes, cases or circumstances, or</p></content></level><level class="para1"><num>(b)</num><content><p>differently for different purposes, cases or circumstances.</p></content></level></subsection><subsection><num>(7)</num><content><p>A thing is not done by virtue of a resolution instrument for the purposes of subsection (5)(b) merely by virtue of being done under a contract or other agreement rights or obligations under which have been affected by the instrument.</p></content></subsection></section><section><num>48N</num><heading>Directors</heading><subsection><num>(1)</num><intro><p>A resolution instrument may enable the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>to remove a director of a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(c)</num><content><p>to terminate the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(d)</num><content><p>to appoint a director of a specified bank.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) also applies to a director of any undertaking which is a banking group company in respect of a specified bank.</p></content></subsection><subsection><num>(3)</num><content><p>Appointments under subsection (1)(d) are to be on terms and conditions agreed with the Bank of England.</p></content></subsection></section><section><num>48O</num><heading>Directions in or under resolution instrument</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require one or more directors of the bank to comply with any general or specific directions that may be set out in the instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>enable the Bank of England to give written directions (whether general or specific) to one or more directors of the bank.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A director—</p></intro><level class="para1"><num>(a)</num><content><p>is not to be regarded as failing to comply with any duty owed to any person (for example, a shareholder, creditor or employee of the bank) by virtue of any action or inaction in compliance with a direction given under subsection (1)(a) or (b);</p></content></level><level class="para1"><num>(b)</num><content><p>is to be immune from liability in damages in respect of action or inaction in accordance with a direction.</p></content></level></subsection><subsection><num>(3)</num><content><p>A director must comply with a direction within the period of time specified in the direction, or if no period of time is specified, as soon as reasonably practicable.</p></content></subsection><subsection><num>(4)</num><content><p>A direction under subsection (1)(a) or (b) is enforceable on an application made by the Bank of England, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.</p></content></subsection></section><section><num>48P</num><heading>Orders for safeguarding certain financial arrangements</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-protected-arrangements">protected arrangements</term>” means security interests, title transfer collateral arrangements, set-off arrangements and netting arrangements.</p></content></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-netting-arrangements">netting arrangements</term>” means arrangements under which a number of claims or obligations can be converted into a net claim or obligation, and includes, in particular, “close-out” netting arrangements, under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-security-interests">security interests</term>” means arrangements under which one person acquires, by way of security, an actual or contingent interest in the property of another;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-set-off-arrangements">set-off arrangements</term>” means arrangements under which two or more debts, claims or obligations can be set off against each other;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-title-transfer-collateral-arrangements">title transfer collateral arrangements</term>” means arrangements under which Person 1 transfers assets to Person 2 on terms providing for Person 2 to transfer assets if specified obligations are discharged.</p></content></hcontainer></subsection><subsection><num>(3)</num><intro><p>The Treasury may by order—</p></intro><level class="para1"><num>(a)</num><content><p>restrict the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(b)</num><content><p>impose conditions on the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(c)</num><content><p>require any instrument that makes special bail-in provision to include specified provision, or provision to a specified effect, in respect of or for purposes connected with protected arrangements;</p></content></level><level class="para1"><num>(d)</num><content><p>provide for an instrument to be void or voidable, or for other consequences to arise, if or in so far as the instrument is made or purported to be made in contravention of a provision of the order (or of another order under this section);</p></content></level><level class="para1"><num>(e)</num><intro><p>specify principles to which the Bank of England is to be required to have regard in exercising specified powers—</p></intro><level class="para2"><num>(i)</num><content><p>that involve protected arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>where the exercise of the powers might affect protected arrangements.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>References to exercising a power within the scope of paragraph (a) or (b) of subsection (3) are to making an instrument containing provision made in reliance on section 12A(3)(a) or 44B (special bail-in provision).</p></content></subsection><subsection><num>(5)</num><intro><p>An order may apply to protected arrangements generally or only to arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>of a specified kind, or</p></content></level><level class="para1"><num>(b)</num><content><p>made or applying in specified circumstances.</p></content></level></subsection><subsection><num>(6)</num><content><p>An order may include provision for determining which arrangements are to be, or not to be, treated as protected arrangements; in particular, an order may provide for arrangements to be classified not according to their description by the parties but according to one or more indications of how they are treated, or are intended to be treated, in commercial practice.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes arrangements which—</p></intro><level class="para1"><num>(a)</num><content><p>are formed wholly or partly by one or more contracts or trusts;</p></content></level><level class="para1"><num>(b)</num><content><p>arise under or are wholly or partly governed by the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1"><num>(c)</num><content><p>wholly or partly arise automatically as a matter of law;</p></content></level><level class="para1"><num>(d)</num><content><p>involve any number of parties;</p></content></level><level class="para1"><num>(e)</num><content><p>operate partly by reference to other arrangements between parties.</p></content></level></subsection><subsection><num>(8)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48Q</num><heading>Continuity</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for anything (including legal proceedings) that relates to anything affected by the instrument and is in the process of being done immediately before the instrument takes effect to be continued from the time the instrument takes effect.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may modify references (express or implied) in an instrument or document.</p></content></subsection><subsection><num>(3)</num><content><p>A resolution instrument may require or permit any person to provide information and assistance to the Bank of England or another person, for the purposes of or in connection with provision made or to be made in that or another resolution instrument.</p></content></subsection></section><section><num>48R</num><heading>Execution and registration of instruments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>A resolution instrument may permit or require the execution, issue or delivery of an instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may provide for any provision in the instrument to have effect irrespective of—</p></intro><level class="para1"><num>(a)</num><content><p>whether an instrument has been produced, delivered, transferred or otherwise dealt with;</p></content></level><level class="para1"><num>(b)</num><content><p>registration.</p></content></level></subsection><subsection><num>(3)</num><content><p>A resolution instrument may provide for the effect of an instrument executed, issued or delivered in accordance with the resolution instrument.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>entitle a person to be registered in respect of a security;</p></content></level><level class="para1"><num>(b)</num><content><p>require a person to effect registration.</p></content></level></subsection></section><section><num>48S</num><heading>Resolution instruments: general matters</heading><subsection><num>(1)</num><content><p>Provision made in a resolution instrument takes effect despite any restriction arising by virtue of contract or legislation or in any other way.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may include incidental, consequential or transitional provision.</p></content></subsection><subsection><num>(3)</num><intro><p>In relying on subsection (2) a resolution instrument—</p></intro><level class="para1"><num>(a)</num><content><p>may make provision generally or only for specified purposes, cases or circumstances, and</p></content></level><level class="para1"><num>(b)</num><content><p>may make different provision for different purposes, cases or circumstances.</p></content></level></subsection></section><section><num>48T</num><heading>Procedure</heading><subsection><num>(1)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument in respect of a bank the Bank of England must send a copy to—</p></intro><level class="para1"><num>(a)</num><content><p>the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(c)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(d)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(e)</num><content><p>any other person specified in the code of practice under section 5.</p></content></level></subsection><subsection><num>(2)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument the Bank of England must publish a copy—</p></intro><level class="para1"><num>(a)</num><content><p>on the Bank's internet website, and</p></content></level><level class="para1"><num>(b)</num><content><p>in two newspapers, chosen by the Bank of England to maximise the likelihood of the instrument coming to the attention of persons likely to be affected.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where the Treasury receive a copy of a resolution instrument under subsection (1) they must lay a copy before Parliament.</p></content></subsection></section><section><num>48U</num><heading>Supplemental resolution instruments</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) with respect to a bank.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make, with respect to the bank, one or more resolution instruments designated by the Bank of England as supplemental resolution instruments.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a supplemental resolution instrument (but it is to be treated in the same way as a resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a supplemental resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>The possibility of making a supplemental resolution instrument in reliance on subsection (2) is without prejudice to the possibility of making a new instrument in accordance with section 12A(2) (and not in reliance on subsection (2) above).</p></content></subsection></section><section><num>48V</num><heading>Onward transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) providing for securities issued by a specified bank to be transferred to any person.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more onward transfer resolution instruments.</p></content></subsection><subsection><num>(3)</num><intro><p>An onward transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><intro><p>provides for the transfer of—</p></intro><level class="para2"><num>(i)</num><content><p>securities which were issued by the bank before the original instrument and have been transferred by the original instrument or a supplemental resolution instrument, or</p></content></level><level class="para2"><num>(ii)</num><content><p>securities which were issued by the bank after the original instrument;</p></content></level></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities issued by the bank (whether the transfer has been or is to be effected by that instrument, by another instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>An onward transfer resolution instrument may not transfer securities to the transferor under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to an onward transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making an onward transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 48U applies where the Bank of England has made an onward transfer resolution instrument.</p></content></subsection></section><section><num>48W</num><heading>Reverse transfer</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England has made an instrument (“the original instrument”) that is either—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument providing for the transfer of securities issued by a bank to a person (“<term refersTo="#term-the-transferee">the transferee</term>”), or</p></content></level><level class="para1"><num>(b)</num><content><p>an onward transfer resolution instrument (see section 48V) providing for the transfer of securities issued by a bank to a person (“the onward transferee”).</p></content></level></subsection><subsection><num>(2)</num><content><p>In a case falling within subsection (1)(a) the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the transferee (whether or not they were transferred by the original instrument).</p></content></subsection><subsection><num>(3)</num><content><p>In a case falling within subsection (1)(b), the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the onward transferee.</p></content></subsection><subsection><num>(4)</num><intro><p>A reverse transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities which are, or could be or could have been, transferred under paragraph (a).</p></content></level></subsection><subsection><num>(5)</num><content><p>Except where subsection (6) applies, the Bank of England may make a reverse transfer resolution instrument under subsection (2) only with the written consent of the transferee.</p></content></subsection><subsection><num>(6)</num><intro><p>This subsection applies where the transferee is—</p></intro><level class="para1"><num>(a)</num><content><p>a bail-in administrator, or</p></content></level><level class="para1"><num>(b)</num><content><p>a person who is not to be authorised to exercise any rights attaching to the securities except on the Bank of England's instructions.</p></content></level></subsection><subsection><num>(7)</num><content><p>The Bank of England may make a reverse transfer resolution instrument under subsection (3) only with the written consent of the onward transferee.</p></content></subsection><subsection><num>(8)</num><content><p>Sections 7 and 8A do not apply to a reverse transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes including for the purposes of an application of a power under this Part).</p></content></subsection><subsection><num>(9)</num><intro><p>Before making a reverse transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(10)</num><content><p>Section 48U applies where the Bank of England has made a reverse transfer resolution instrument.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-transfers-of-property"><heading><i>Transfers of property</i></heading><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><content><p><mod>After section 41 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>41A</num><heading>Transfer of property subsequent to resolution instrument</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more property transfer instruments in respect of property, rights or liabilities of the bank.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a property transfer instrument under subsection (2).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a property transfer instrument under subsection (2) the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><intro><p>In section 42 (supplemental property transfer instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-5-2-a"><num>(a)</num><content><p><mod>in subsection (1) for “12(2)” substitute <quotedText>“
12(2) or 41A(2)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-b"><num>(b)</num><content><p><mod>in subsection (4) for “and 8” substitute <quotedText>“
, 8 and 8A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-c"><num>(c)</num><content><p><mod>in subsection (6) for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p><mod>After section 44 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>44A</num><heading>Bail in: reverse property transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a property transfer instrument in accordance with section 41A(2) (“the original instrument”).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more bail-in reverse property transfer instruments in respect of property, rights or liabilities of the transferee under the original instrument.</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in reverse property transfer instrument is a property transfer instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for a transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, or could be or could have been, transferred under paragraph (a) (whether the transfer has been or is to be effected by that instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>The Bank of England may make a bail-in reverse property transfer instrument only with the written consent of the transferee under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to a bail-in reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making a bail-in reverse property transfer instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 42 (supplemental instruments) applies where the Bank of England has made a bail-in reverse property transfer instrument.</p></content></subsection></section><section><num>44B</num><heading>Property transfer instruments: special bail-in provision</heading><subsection><num>(1)</num><content><p>A property transfer instrument under section 12(2) or 41A(2), or an associated supplemental property transfer instrument, may make special bail-in provision with respect to the bank (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The reference in subsection (1) to an “associated” supplemental property transfer instrument is to a supplemental property transfer instrument in relation to which the original instrument (as defined in section 42(1)) is a property transfer instrument under section 12(2) or 41A(2).</p></content></subsection><subsection><num>(3)</num><content><p>In the case of a property transfer instrument under section 12(2), or a supplemental property transfer instrument in relation to which the original instrument is a property transfer instrument under section 12(2), the power under subsection (1) to make the provision described in section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes power to make provision replacing a liability (of any form) of the bank mentioned in subsection (1) with a security (of any form or class) of the bridge bank mentioned in section 12(1).</p></content></subsection><subsection><num>(4)</num><content><p>Where securities of the bridge bank (“B”) are, as a result of subsection (3), held by a person other than the Bank of England, that does not prevent B from being regarded for the purposes of this Part (see particularly section 12(1)) as being wholly owned by the Bank of England, as long as the Bank of England continues to hold all the ordinary shares issued by B.</p></content></subsection></section><section><num>44C</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a property transfer instrument containing provision made in reliance on section 44B.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision was made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the property transfer instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p><mod>In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert <quotedText>“
, 44A(3)(b)
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-compensation"><heading><i>Compensation</i></heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-2-paragraph-6-1"><num>(1)</num><intro><p>In section 49 (orders)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-1-a"><num>(a)</num><content><p><mod>in subsection (1), for “three” substitute <quotedText>“
four
”</quotedText> and for “and property transfer instruments” substitute <quotedText>“
, property transfer instruments and orders and resolution instruments
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-1-b"><num>(b)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>A “bail-in compensation order” is an order establishing a scheme for determining, in accordance with section 52A, whether any transferors or others should be paid compensation.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-2"><num>(2)</num><content><p><mod>In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified classes of creditor,” substitute <quotedText>“
persons of a specified description,
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-3"><num>(3)</num><content><p><mod>After section 52 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>52A</num><heading>Bail-in option</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies if the Bank of England makes—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument under section 12A(2), or</p></content></level><level class="para1"><num>(b)</num><content><p>a property transfer instrument under section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury must make a bail-in compensation order (see section 49(2A)).</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in compensation order may include provision for—</p></intro><level class="para1"><num>(a)</num><content><p>an independent valuer (in which case sections 54 to 56 are to apply);</p></content></level><level class="para1"><num>(b)</num><content><p>valuation principles (in which case section 57(2) to (5) is to apply).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-4"><num>(4)</num><intro><p>In section 53 (onward and reverse transfers), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-4-a"><num>(a)</num><content><p><mod>before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zza)</num><content><p>the Bank of England makes a supplemental share transfer instrument under section 26,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-b"><num>(b)</num><content><p><mod>after paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zb)</num><content><p>the Treasury makes a supplemental share transfer order under section 27,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-c"><num>(c)</num><content><p><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(dza)</num><content><p>the Bank of England makes a supplemental property transfer instrument under section 42,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-d"><num>(d)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(fa)</num><content><p>the Bank of England makes a reverse property transfer instrument under section 44A(2),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-e"><num>(e)</num><content><p>omit the “or” after paragraph (g);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-f"><num>(f)</num><content><p><mod>after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Bank of England makes a supplemental resolution instrument under section 48U,</p></content></level><level class="para1"><num>(j)</num><content><p>the Bank of England makes an onward transfer resolution instrument under section 48V(2), or</p></content></level><level class="para1"><num>(k)</num><content><p>the Bank of England makes a reverse transfer resolution instrument under section 48W(2) or (3).</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-g"><num>(g)</num><content><p><mod>in the heading, after “<b>transfers</b>” insert <quotedText>“
<b><abbr title="Et cetera" xml:lang="la">etc</abbr></b>
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-5"><num>(5)</num><intro><p>In section 54 (independent valuer)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-5-a"><num>(a)</num><content><p><mod>in subsection (1), after “compensation scheme order” insert <quotedText>“
or bail-in compensation order
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-5-b"><num>(b)</num><content><p><mod>in subsection (4)(b), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-6"><num>(6)</num><content><p><mod>In section 56 (independent valuer: money), in subsection (2)(b) for “or third party compensation order” substitute <quotedText>“
, third party compensation order or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-7"><num>(7)</num><content><p><mod>In section 57 (valuation principles), in subsection (1), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-8"><num>(8)</num><content><p><mod>After section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Further mandatory provision: bail-in provision</heading><subsection><num>(1)</num><intro><p>The Treasury may make regulations about compensation arrangements in the case of—</p></intro><level class="para1"><num>(a)</num><content><p>resolution instruments under section 12A(2) and supplemental resolution instruments under section 48U(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>instruments (made under any provision) that include special bail-in provision.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Regulations may—</p></intro><level class="para1"><num>(a)</num><content><p>require a resolution fund order, a compensation scheme order, a third party compensation order or a bail-in compensation order to include provision of a specified kind or to specified effect;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision that is to be treated as forming part of any such order (whether (i) generally, (ii) only if applied, (iii) unless disapplied, or (iv) subject to express modification).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Regulations may provide for whether compensation is to be paid, and if so what amount is to be paid, to be determined by reference to any factors or combination of factors; in particular, the regulations may provide for entitlement—</p></intro><level class="para1"><num>(a)</num><content><p>to depend in part upon the amounts which are or may be payable under a resolution fund order;</p></content></level><level class="para1"><num>(b)</num><content><p>to be contingent upon the occurrence or non-occurrence of specified events;</p></content></level><level class="para1"><num>(c)</num><content><p>to be determined wholly or partly by an independent valuer (within the meaning of sections 54 to 56) appointed in accordance with a compensation scheme order or bail-in compensation order.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Regulations may make provision about payment including, in particular, provision for payments—</p></intro><level class="para1"><num>(a)</num><content><p>on account subject to terms and conditions;</p></content></level><level class="para1"><num>(b)</num><content><p>by instalment.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>60B</num><heading>Principle of no less favourable treatment</heading><subsection><num>(1)</num><content><p>In making regulations under section 60A the Treasury must, in particular, have regard to the desirability of ensuring that pre-resolution shareholders and creditors of a bank do not receive less favourable treatment than they would have received had the bank entered insolvency immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>References in this section to the initial instrument are—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to compensation arrangements in the case of property transfer instruments under section 12(2), to the first instrument to be made under that provision with respect to the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to compensation arrangements in other cases, to the first resolution instrument to be made under section 12A with respect to the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “pre-resolution shareholders and creditors” of a bank are the persons who held securities issued by the bank, or were creditors of the bank, immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to insolvency include a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) receivership, (vi) composition with creditors, and (vii) a scheme of arrangement.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-9"><num>(9)</num><intro><p>In section 61(1) (sources of compensation),—</p></intro><level class="para1" eId="schedule-2-paragraph-6-9-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (c);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-b"><num>(b)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>bail-in compensation orders,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-c"><num>(c)</num><content><p><mod>after paragraph (d) insert, “, and<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(e)</num><content><p>regulations under section 60A.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-10"><num>(10)</num><content><p><mod>In section 62(1) (procedure), omit the “and” at the end of paragraph (b), and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>bail-in compensation orders, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-groups"><heading><i>Groups</i></heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p><mod>After section 81B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81BA</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition 1 is that the PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of a bank in the same group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition 2 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition 3 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.</p></content></subsection><subsection><num>(5)</num><intro><p>Before determining whether Condition 2 is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>In exercising a stabilisation power in reliance on this section the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><content><p><mod>After section 81C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81CA</num><heading>Section 81BA: supplemental</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has power under section 81BA to exercise a stabilisation power in respect of a banking group company.</p></content></subsection><subsection><num>(2)</num><content><p>The provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 and 8A) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.</p></content></subsection><subsection><num>(3)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions in this Act relating to resolution instruments are to be read in accordance with the general rule in subsection (4), but</p></content></level><level class="para1"><num>(b)</num><content><p>that is subject to the modifications in subsection (5);</p></content></level><wrapUp><p>and provisions in this Act and any other enactment are to be read with any modifications that may be necessary as a result of paragraphs (a) and (b).</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>The general rule is that the provisions in this Act relating to resolution instruments (including supplemental resolution instruments) are to be read (so far as the context permits)—</p></intro><level class="para1"><num>(a)</num><content><p>as applying in relation to the bank as they apply in relation to the parent undertaking, and</p></content></level><level class="para1"><num>(b)</num><content><p>so, in particular, as allowing any provision that may be made in a resolution instrument in relation to the parent undertaking to be made (also or instead) in relation to the bank.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>section 41A (transfer of property subsequent to resolution instrument) applies as if the reference in subsection (2) to the bank were to the parent undertaking, the bank and any other bank which is or was in the same group;</p></content></level><level class="para1"><num>(b)</num><intro><p>section 48V (onward transfer)—</p></intro><level class="para2"><num>(i)</num><content><p>applies as if the references in subsection (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group, and with the omission of subsection (4) of that section, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is to be read as permitting the transfer of securities only if they are held by (or for the benefit of) the parent undertaking or a subsidiary company of the parent undertaking;</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 48W (reverse transfer) applies as if the references in subsections (2) and (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group.</p></content></level></subsection><subsection><num>(6)</num><content><p>Where section 48B (special bail-in provision) applies in accordance with subsection (4) (so that section 48B applies in relation to the bank mentioned in section 81BA(2) as it applies in relation to the parent undertaking mentioned in subsection (3)), the provision that may be made in accordance with section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes provision replacing a liability (of any form) of that bank with a security (of any form or class) of the parent undertaking.</p></content></subsection><subsection><num>(7)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2)—</p></intro><level class="para1"><num>(a)</num><content><p>section 214B of the Financial Services and Markets Act 2000 (contribution to costs of special resolution regime) applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference in subsection (1)(b) of that section to the bank, and later references in that section, are treated as including references to any other bank which is a subsidiary undertaking of the parent undertaking (but not the parent undertaking itself).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><intro><p>In section 81D (interpretation: “banking group company” <abbr title="Et cetera" xml:lang="la">etc</abbr>)—</p></intro><level class="para1" eId="schedule-2-paragraph-7-3-a"><num>(a)</num><content><p><mod>in subsection (6), for “, 81C” substitute <quotedText>“
to 81CA
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-7-3-b"><num>(b)</num><content><p><mod>in subsection (7) for “section 81B” substitute <quotedText>“
sections 81B to 81CA
”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-banks-regulated-by-the-financial-conduct-authority"><heading><i>Banks regulated by the Financial Conduct Authority</i></heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 83A (modifications of Part 1 as it applies to banks not regulated by the Prudential Regulation Authority), in the table in subsection (2) insert the following entries at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 8A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 41A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 44A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 48H</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48U</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48V</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48W</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 81BA</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-recognised-central-counterparties"><heading><i>Recognised central counterparties</i></heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num><noteRef href="#key-1ae2b182a6b3fff3e2dd051310b09bab" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>9</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-insolvency-proceedings"><heading><i>Insolvency proceedings</i></heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(ii), after “Part 1” insert <quotedText>“
(and Condition 5 has been met, if applicable)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Condition 5—</p></intro><level class="para1"><num>(a)</num><content><p>applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-c"><num>(c)</num><content><p><mod>in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-d"><num>(d)</num><content><p><mod>after subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-state-aid"><heading><i>State aid</i></heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num><noteRef href="#key-1388f7f47d63b0c81dc5424d5f05473b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>11</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-other-amendments-of-the-act"><heading><i>Other amendments of the Act</i></heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-2-paragraph-12-1"><num>(1)</num><content><p>Section 1 (overview) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-2"><num>(2)</num><content><p><mod>In subsection (2)(a), for “three” substitute <quotedText>“
four
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The four “stabilisation options” are—</p></intro><level class="para1"><num>(a)</num><content><p>transfer to a private sector purchaser (section 11),</p></content></level><level class="para1"><num>(b)</num><content><p>transfer to a bridge bank (section 12),</p></content></level><level class="para1"><num>(c)</num><content><p>the bail-in option (section 12A), and</p></content></level><level class="para1"><num>(d)</num><content><p>transfer to temporary public ownership (section 13).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-2-paragraph-12-4-a"><num>(a)</num><content><p><mod>for “three” substitute <quotedText>“
four
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-b"><num>(b)</num><content><p><mod>before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>the resolution instrument powers (sections 12A(2) and 48U to 48W),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-c"><num>(c)</num><content><p><mod>in paragraph (b), after “33” insert <quotedText>“
, 41A
”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 13 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 17 (share transfers: effect)—</p></intro><level class="para1" eId="schedule-2-paragraph-14-a"><num>(a)</num><content><p><mod>in subsection (1), after “order” insert, <quotedText>“
or by a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-b"><num>(b)</num><content><p><mod>in subsection (5), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-c"><num>(c)</num><content><p><mod>in subsection (6), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 18 (share transfers: continuity), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>This section applies to a resolution instrument as it applies to a share transfer instrument; and in relation to a resolution instrument references in this section to a “transfer” are to a transfer of securities (whether made by that or another resolution instrument) and “<term refersTo="#term-transferor">transferor</term>” and “<term refersTo="#term-transferee">transferee</term>” are to be read accordingly.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><intro><p>In section 44 (reverse property transfer)—</p></intro><level class="para1" eId="schedule-2-paragraph-16-a"><num>(a)</num><content><p><mod>in subsection (2), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-b"><num>(b)</num><content><p><mod>in subsection (3), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-c"><num>(c)</num><content><p><mod>in subsection (4), for “A reverse” substitute <quotedText>“
A bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-d"><num>(d)</num><intro><p>in subsection (4A)—</p></intro><level class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-2-paragraph-16-e"><num>(e)</num><content><p><mod>in subsection (5), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-f"><num>(f)</num><content><p><mod>in subsection (6), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-g"><num>(g)</num><content><p><mod>in subsection (7), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-h"><num>(h)</num><content><p><mod>in the heading, for “<b>Reverse</b>” substitute <quotedText>“
<b>Bridge bank: reverse</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><intro><p>In section 66 (general continuity obligation: share transfers)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-a"><num>(a)</num><content><p><mod>in subsection (1)(a), after “13(2)” insert <quotedText>“
, or which falls within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-b"><num>(b)</num><content><p><mod>in subsection (1)(d)(i), after “11(2)(a)” insert <quotedText>“
, or in a case falling within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another of securities issued by the bank (and the reference in subsection (1)(b) to “<term refersTo="#term-the-transfer">the transfer</term>” includes such a cancellation or conversion).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert <quotedText>“
or resolution instrument
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert <quotedText>“
a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><intro><p>In section 71 (pensions), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-21-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-21-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-22" class="schProv1"><num>22</num><intro><p>In section 72 (enforcement), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a resolution instrument.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 73 (disputes), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-23-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-23-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-24" class="schProv1"><num>24</num><content><p><mod>In section 74 (tax), in subsection (6), for “or 45” substitute <quotedText>“
, 45, 48U or 48V
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-25" class="schProv1"><num>25</num><content><p><mod>After section 80 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>80A</num><heading>Transfer for bail-in purposes: report</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes one or more resolution instruments under section 12A(2) in respect of a bank.</p></content></subsection><subsection><num>(2)</num><intro><p>The Bank of England must, on request by the Treasury, report to the Chancellor of the Exchequer about—</p></intro><level class="para1"><num>(a)</num><content><p>the exercise of the power to make a resolution instrument under section 12A(2),</p></content></level><level class="para1"><num>(b)</num><content><p>the activities of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other matters in relation to the bank that the Treasury may specify.</p></content></level></subsection><subsection><num>(3)</num><content><p>In relation to the matters in subsection (2)(a) and (b), the report must comply with any requirements that the Treasury may specify.</p></content></subsection><subsection><num>(4)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-26" class="schProv1"><num>26</num><intro><p>In section 81A (accounting information to be included in reports under sections 80 and 81)—</p></intro><level class="para1" eId="schedule-2-paragraph-26-a"><num>(a)</num><content><p><mod>in subsection (1), for “or 81” substitute <quotedText>“
, 80A(2)(b) or 81
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-26-b"><num>(b)</num><content><p><mod>in the heading, for “<b>and 81</b>” substitute <quotedText>“
<b>, 80A(2)(b) and 81</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-27" class="schProv1"><num>27</num><content><p><mod>In section 85 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-28" class="schProv1"><num>28</num><content><p><mod>In section 136 (overview), in the Table in subsection (3), for “152” substitute <quotedText>“
152A
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-29" class="schProv1"><num>29</num><content><p><mod>After section 152 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>152A</num><heading>Property transfer from transferred institution</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>makes a resolution instrument that transfers securities issued by a bank (or a bank's parent undertaking), in accordance with section 12A(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>later makes a property transfer instrument from the bank or from another bank which is or was in the same group as the bank, in accordance with section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>This Part applies to the transferor under the property transfer instrument made in accordance with section 41A(2) as to the transferor under a property transfer instrument made in accordance with section 12(2).</p></content></subsection><subsection><num>(3)</num><intro><p>For that purpose this Part applies with any modifications specified by the Treasury in regulations; and any regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 220 (insolvency <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>The fact that ownership of an authorised bank is transferred or otherwise changed as a result of a resolution instrument (or an instrument treated as a resolution instrument) does not itself prevent the bank from relying on section 213.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-31" class="schProv1"><num>31</num><intro><p>In section 259 (statutory instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-31-a"><num>(a)</num><content><p><mod>in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute <quotedText>“
Third party compensation: partial property transfers
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-b"><num>(b)</num><content><p><mod>in the Table in subsection (3), in Part 1, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48F(1) and (2)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to amend definition of “excluded liabilities”</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48G</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Insolvency treatment principles</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48P</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Safeguarding of certain financial arrangements</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">52A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation orders</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“60A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Third party compensation: instruments containing special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-c"><num>(c)</num><content><p><mod>in the Table in subsection (3), in Part 3, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">152A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Property transfer from transferred institution</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-d"><num>(d)</num><content><p><mod>in subsection (5), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><content><p>section 60A (special resolution regime: instruments containing special bail-in provision),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-e"><num>(e)</num><content><p><mod>in subsection (5), after paragraph (k) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ka)</num><content><p>section 152A (bank administration: property transfer from transferred institution),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 261 (index of defined terms), in the Table, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation order</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">49”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Resolution instrument</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12A”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48B</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p>The Banking Act 2009 is amended as follows.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-new-stabilisation-option-bailin"><heading><i>New stabilisation option: bail-in</i></heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>12A</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The third stabilisation option is exercised by the use of the power in subsection (2).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more resolution instruments (which may contain provision or proposals of any kind mentioned in subsections (3) to (6)).</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make special bail-in provision with respect to a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, any special bail-in provision made by that or another instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>provide for securities issued by a specified bank to be transferred to a bail-in administrator (see section 12B) or another person;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, the transfer of securities issued by a specified bank (whether or not the transfer has been or is to be effected by that instrument, by another resolution instrument or otherwise).</p></content></level></subsection><subsection><num>(5)</num><content><p>A resolution instrument may set out proposals with regard to the future ownership of a specified bank or of the business of a specified bank, and any other proposals (for example, proposals about making special bail-in provision) that the Bank of England may think appropriate.</p></content></subsection><subsection><num>(6)</num><content><p>A resolution instrument may make any other provision the Bank of England may think it appropriate to make in exercise of specific powers under this Part.</p></content></subsection><subsection><num>(7)</num><intro><p>Provision made in accordance with subsection (4) may relate to—</p></intro><level class="para1"><num>(a)</num><content><p>specified securities, or</p></content></level><level class="para1"><num>(b)</num><content><p>securities of a specified description.</p></content></level></subsection><subsection><num>(8)</num><content><p>Where the Bank of England has exercised the power in subsection (4) to transfer securities to a bail-in administrator, the Bank of England must exercise its functions under this Part (see, in particular, section 48V) with a view to ensuring that any securities held by a person in the capacity of a bail-in administrator are so held only for so long as is, in the Bank of England's opinion, appropriate having regard to the special resolution objectives.</p></content></subsection><subsection><num>(9)</num><content><p>References in this Part to “special bail-in provision” are to provision made in reliance on section 48B.</p></content></subsection></section><section><num>12B</num><heading>Bail-in administrators</heading><subsection><num>(1)</num><content><p>The Bank of England may, in a resolution instrument, appoint an individual or body corporate as a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>A bail-in administrator is appointed—</p></intro><level class="para1"><num>(a)</num><content><p>to hold any securities that may be transferred or issued to that person in the capacity of bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>to perform any other functions that may be conferred under any provision of this Part.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Bank of England may appoint more than one bail-in administrator to perform functions in relation to a bank (but no more than one of them may at any one time be authorised to hold securities as mentioned in subsection (2)(a)).</p></content></subsection><subsection><num>(4)</num><content><p>Securities held by a bail-in administrator (in that capacity, and whether as a result of a resolution instrument or otherwise) are to be held in accordance with the terms of a resolution instrument that transfers those, or other, securities to the bail-in administrator.</p></content></subsection><subsection><num>(5)</num><intro><p>For example, the following provision may be made by virtue of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights of a bail-in administrator with respect to all or any of the securities are to be exercisable only as directed by the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>provision specifying rights or obligations that the bail-in administrator is, or is not, to have in relation to some or all of the securities.</p></content></level></subsection><subsection><num>(6)</num><content><p>A bail-in administrator must have regard, in performing any functions of the office, to any objectives that may be specified in a resolution instrument.</p></content></subsection><subsection><num>(7)</num><content><p>Where one or more objectives are specified in accordance with subsection (6), the objectives are to be taken to have equal status with each other, unless the contrary is stated in the resolution instrument.</p></content></subsection><subsection><num>(8)</num><content><p>See sections 48I to 48K for further provision about bail-in administrators.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>8A</num><heading>Specific condition: bail-in</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a bank in accordance with section 12A(2) only if satisfied that the condition in subsection (2) is met.</p></content></subsection><subsection><num>(2)</num><intro><p>The condition is that the exercise of the power is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before determining whether that condition is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(4)</num><content><p>The condition in this section is in addition to the conditions in section 7.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-further-provision-about-the-bailin-option"><heading><i>Further provision about the bail-in option</i></heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After section 48A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Bail-in option</i></heading><section><num>48B</num><heading>Special bail-in provision</heading><subsection><num>(1)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, means any of the following (or any combination of the following)—</p></intro><level class="para1"><num>(a)</num><content><p>provision cancelling a liability owed by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provision modifying, or changing the form of, a liability owed by the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that a contract under which the bank has a liability is to have effect as if a specified right had been exercised under it.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, also includes any associated provision (see subsection (3)) that the Bank of England may think it appropriate to make in consequence of any provision under subsection (1) that—</p></intro><level class="para1"><num>(a)</num><content><p>is made in the same resolution instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>has been made in another resolution instrument in respect of the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-associated-provision">Associated provision</term>” means provision cancelling or modifying a contract under which a banking group company has a liability.</p></content></subsection><subsection><num>(4)</num><intro><p>A power to make special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>may be exercised only for the purpose of, or in connection with, reducing, deferring or cancelling a liability of the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>may not be exercised so as to affect any excluded liability.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The following rules apply to the interpretation of subsection (1).</p></intro><level class="para1"><num>1</num><content><p>The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability.</p></content></level><level class="para1"><num>2</num><content><p>The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability.</p></content></level><level class="para1"><num>3</num><intro><p>The reference to changing the form of a liability owed by the bank, includes, for example—</p></intro><level class="para2"><num>(a)</num><content><p>converting an instrument under which the bank owes a liability from one form or class to another,</p></content></level><level class="para2"><num>(b)</num><content><p>replacing such an instrument with another instrument of a different form or class, or</p></content></level><level class="para2"><num>(c)</num><content><p>creating a new security (of any form or class) in connection with the modification of such an instrument.</p></content></level></level></subsection><subsection><num>(6)</num><intro><p>Examples of special bail-in provision include—</p></intro><level class="para1"><num>(a)</num><content><p>provision that transactions or events of any specified kind have or do not have (directly or indirectly) specified consequences or are to be treated in a specified manner for specified purposes;</p></content></level><level class="para1"><num>(b)</num><content><p>provision discharging persons from further performance of obligations under a contract and dealing with the consequences of persons being so discharged.</p></content></level></subsection><subsection><num>(7)</num><content><p>The form and class of the instrument (“the resulting instrument”) into which an instrument is converted, or with which it is replaced, do not matter for the purposes of paragraphs (a) and (b) of rule 3 in subsection (5); for instance, the resulting instrument may (if it is a security) fall within Class 1 or any other Class in section 14.</p></content></subsection><subsection><num>(8)</num><intro><p>The following liabilities of the bank are “excluded liabilities”—</p></intro><level class="para1"><num>(a)</num><content><p>liabilities representing protected deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>any liability, so far as it is secured;</p></content></level><level class="para1"><num>(c)</num><content><p>liabilities that the bank has by virtue of holding client assets;</p></content></level><level class="para1"><num>(d)</num><content><p>liabilities with an original maturity of less than 7 days owed by the bank to a credit institution or investment firm;</p></content></level><level class="para1"><num>(e)</num><content><p>liabilities arising from participation in designated settlement systems and owed to such systems or to operators of, or participants in, such systems;</p></content></level><level class="para1"><num>(f)</num><content><p>liabilities owed to central counterparties recognised by the European Securities and Markets Authority in accordance with Article 25 of Regulation (EU) 648/2012 of the European Parliament and the Council;</p></content></level><level class="para1"><num>(g)</num><content><p>liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration;</p></content></level><level class="para1"><num>(h)</num><content><p>liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits;</p></content></level><level class="para1"><num>(i)</num><content><p>liabilities owed to creditors arising from the provision to the bank of goods or services (other than financial services) that are critical to the daily functioning of the bank's operations.</p></content></level></subsection><subsection><num>(9)</num><intro><p>The following special rules apply in cases involving banking group companies—</p></intro><level class="para1"><num>(a)</num><content><p>a liability mentioned in subsection (8)(d) is not an excluded liability if the credit institution or investment firm to which the liability is owed is a banking group company in relation to the bank (see section 81D);</p></content></level><level class="para1"><num>(b)</num><content><p>in subsection (8)(i) the reference to creditors does not include companies which are banking group companies in relation to the bank.</p></content></level></subsection></section><section><num>48C</num><heading>Meaning of “protected deposit”</heading><subsection><num>(1)</num><content><p>A deposit is “protected” so far as it is covered by the Financial Services Compensation Scheme.</p></content></subsection><subsection><num>(2)</num><intro><p>A deposit is “protected” so far as it is covered by a scheme which—</p></intro><level class="para1"><num>(a)</num><content><p>operates outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is comparable to the Financial Services Compensation Scheme.</p></content></level></subsection><subsection><num>(3)</num><content><p>If one or both of subsections (1) and (2) apply to a deposit, the amount of the deposit “protected” is the highest amount which results from either of those subsections.</p></content></subsection><subsection><num>(4)</num><content><p>In subsections (1) and (2) and section 48B(8)(a), “<term refersTo="#term-deposit">deposit</term>” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544), but ignoring the exclusions in article 6.</p></content></subsection></section><section><num>48D</num><heading>General interpretation of section 48B</heading><subsection><num>(1)</num><intro><p>In section 48B—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-client-assets">client assets</term>” means assets which the bank has undertaken to hold on trust for, or on behalf of, a client;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-contract">contract</term>” includes any instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-credit-institution">credit institution</term>” means any credit institution as defined in Article 4.1(1) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council, other than an entity mentioned in Article 2.5(2) to (23) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-settlement-system">designated settlement system</term>” means a system designated in accordance with Directive <ref eId="c00004" href="http://www.legislation.gov.uk/european/directive/1998/0026">98/26/<abbr class="acronym" title="European Community">EC</abbr></ref> of the European Parliament and of the Council (as amended by Directives <ref eId="c00005" href="http://www.legislation.gov.uk/european/directive/2009/0044">2009/44/<abbr class="acronym" title="European Community">EC</abbr></ref> and 2010/78/<abbr class="acronym" title="European Union">EU</abbr>);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-employee">employee</term>” includes the holder of an office;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investment-firm">investment firm</term>” means an investment firm as defined in Article 4.1(2) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council that is subject to the initial capital requirement specified in Article 28(2) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pension-scheme">pension scheme</term>” includes any arrangement for the payment of pensions, allowances and gratuities;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-secured">secured</term>” means secured against property or rights, or otherwise covered by collateral arrangements.</p></content></hcontainer></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-assets">assets</term>” has the same meaning as in section 232(4) (ignoring for these purposes section 232(5A)(b));</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-collateral-arrangements">collateral arrangements</term>” includes arrangements which are title transfer collateral arrangements for the purposes of section 48.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of section 48B(8)(h), a benefit under a pension scheme is discretionary so far as the employee's right to the benefit resulted from the exercise of a discretion.</p></content></subsection></section><section><num>48E</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a resolution instrument containing special bail-in provision (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the resolution instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section><section><num>48F</num><heading>Power to amend definition of “excluded liabilities”</heading><subsection><num>(1)</num><intro><p>The Treasury may by order amend section 48B(8) by—</p></intro><level class="para1"><num>(a)</num><content><p>adding to the list of excluded liabilities;</p></content></level><level class="para1"><num>(b)</num><content><p>amending or omitting any paragraph of that subsection, other than paragraphs (a) to (c).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury may by order amend section 48C or 48D.</p></content></subsection><subsection><num>(3)</num><content><p>The powers conferred by subsections (1) and (2) include power to make consequential and transitional provision.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury must consult before laying a draft order under this section before Parliament.</p></content></subsection></section><section><num>48G</num><heading>Priority between creditors</heading><subsection><num>(1)</num><content><p>The Treasury may, for the purpose of ensuring that the treatment of liabilities in any instrument that contains special bail-in provision is aligned to an appropriate degree with the treatment of liabilities on an insolvency, by order specify matters or principles to which the Bank of England is to be required to have regard in making any such instrument.</p></content></subsection><subsection><num>(2)</num><content><p>An order may, for example, specify the insolvency treatment principles (as defined in section 48E(4)) or alternative principles.</p></content></subsection><subsection><num>(3)</num><content><p>An order may specify the meaning of “insolvency” for one or more purposes of the order.</p></content></subsection><subsection><num>(4)</num><content><p>An order may amend sections 44C(4) and 48E(4).</p></content></subsection><subsection><num>(5)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48H</num><heading>Business reorganisation plans</heading><subsection><num>(1)</num><intro><p>A resolution instrument may require a bail-in administrator, or one or more directors of the bank, to—</p></intro><level class="para1"><num>(a)</num><content><p>draw up a business reorganisation plan with respect to the bank, and</p></content></level><level class="para1"><num>(b)</num><content><p>submit it to the Bank of England within the period allowed by (or under) the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-business-reorganisation-plan">Business reorganisation plan</term>” means a plan that includes—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the factors that caused Condition 1 in section 7 to be met in the case of the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>a description of the measures to be adopted with a view to restoring the viability of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>a timetable for the implementation of those measures.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where a person has submitted a business reorganisation plan to the Bank of England under subsection (1) (or has re-submitted a plan under subsection (4)), the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must approve the plan if satisfied that the plan is appropriately designed for meeting the objective mentioned in subsection (2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>must otherwise require the person to amend the plan in a specified manner.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the Bank of England has required a person to amend a business re-organisation plan, the person must re-submit the amended plan within the period allowed by (or under) the resolution instrument.</p></content></subsection><subsection><num>(5)</num><intro><p>Before deciding what action to take under subsection (3) the Bank of England must (for each submission or re-submission of a plan) consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>A business reorganisation plan may include recommendations by the person submitting the plan as to the exercise by the Bank of England of any of its powers under this Part in relation to the bank.</p></content></subsection><subsection><num>(7)</num><intro><p>Where a resolution instrument contains provision under subsection (1), the instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>specify further matters (in addition to those mentioned in subsection (2)) that must be dealt with in the business reorganisation plan;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about the timing of actions to be taken in connection with the making and approval of the plan;</p></content></level><level class="para1"><num>(c)</num><content><p>enable any provision that the Bank of England has power under paragraph (a) or (b) to make in the instrument to be made instead in an agreement between the Bank of England and the person required to draw up the business reorganisation plan.</p></content></level></subsection><subsection><num>(8)</num><content><p>For the purposes of subsection (2)(b) the viability of a bank is to be assessed by reference to whether the bank satisfies, and (if so) for how long it may be expected to continue to satisfy, the threshold conditions (as defined in section 55B of the Financial Services and Markets Act 2000).</p></content></subsection></section><section><num>48I</num><heading>Bail-in administrator: further functions</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise a bail-in administrator to manage the bank's business (or confer on a bail-in administrator any other power with respect to the management of the bank's business);</p></content></level><level class="para1"><num>(b)</num><content><p>authorise a bail-in administrator to exercise any other powers of the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>confer on a bail-in administrator any other power the Bank of England may consider appropriate;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that the exercise of any power conferred by the instrument in accordance with this section is to be subject to conditions specified in the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may require a bail-in administrator to make reports to the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>on any matter specified in the instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>at the times or intervals specified in the instrument.</p></content></level></subsection><subsection><num>(3)</num><content><p>If a resolution instrument specifies a matter in accordance with subsection (2)(a), it may provide for further requirements as to the contents of the report on that matter to be specified in an agreement between the Bank of England and the bail-in administrator.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require a bail-in administrator to consult specified persons before exercising specified functions (and may specify particular matters on which the specified person must be consulted);</p></content></level><level class="para1"><num>(b)</num><content><p>provide that a bail-in administrator is not to exercise specified functions without the consent of a specified person.</p></content></level></subsection></section><section><num>48J</num><heading>Bail-in administrator: supplementary</heading><subsection><num>(1)</num><content><p>A bail-in administrator may do anything necessary or desirable for the purposes of or in connection with the performance of the functions of the office.</p></content></subsection><subsection><num>(2)</num><content><p>A bail-in administrator is not a servant or agent of the Crown (and, in particular, is not a civil servant).</p></content></subsection><subsection><num>(3)</num><intro><p>Where a bail-in administrator is appointed under this Part, the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must make provision in a resolution instrument for resignation and replacement of the bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>may remove the bail-in administrator from office only (i) on the ground of incapacity or misconduct, or (ii) on the ground that there is no further need for a person to perform the functions conferred on the bail-in administrator.</p></content></level></subsection></section><section><num>48K</num><heading>Bail-in administrator: money</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for the payment of remuneration and allowances to a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>Provision made under subsection (1) may provide that the amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>to be paid by the Bank of England, or</p></content></level><level class="para1"><num>(b)</num><content><p>to be determined by the Bank of England and paid by the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>A bail-in administrator is not liable for damages in respect of anything done in good faith for the purposes of or in connection with the functions of the office (subject to section 8 of the Human Rights Act 1998).</p></content></subsection></section><section><num>48L</num><heading>Powers in relation to securities</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>cancel or modify any securities to which this subsection applies;</p></content></level><level class="para1"><num>(b)</num><content><p>convert any such securities from one form or class into another.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) applies to securities issued by the bank that fall within Class 1 in section 14.</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make provision with respect to rights attaching to securities issued by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for the listing of securities issued by the bank to be discontinued.</p></content></level></subsection><subsection><num>(4)</num><content><p>The reference in subsection (1)(b) to converting securities from one form or class into another includes creating a new security in connection with the modification of an existing security.</p></content></subsection><subsection><num>(5)</num><intro><p>The provision that may be made under subsection (3)(a) includes, for example—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights attaching to securities are to be treated as having been exercised;</p></content></level><level class="para1"><num>(b)</num><content><p>provision that the Bank of England, or a bail-in administrator, is to be treated as authorised to exercise specified rights attaching to securities;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that specified rights attaching to securities may not be exercised for a period specified in the instrument.</p></content></level></subsection><subsection><num>(6)</num><content><p>In subsection (3)(b) the reference to “listing” is to listing under section 74 of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(7)</num><content><p>The provision that may be made under this section in relation to any securities is in addition to any provision that the Bank of England may have power to make in relation to them under section 48B.</p></content></subsection></section><section><num>48M</num><heading>Termination rights, <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-default-event-provision">default event provision</term>” has the same meaning as in section 22.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may provide for subsection (3) or (4) to apply (but need not apply either).</p></content></subsection><subsection><num>(3)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies.</p></content></subsection><subsection><num>(4)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies except so far as the instrument provides otherwise.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsections (3) and (4) a reference to the resolution instrument is a reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the instrument,</p></content></level><level class="para1"><num>(b)</num><content><p>anything that is done by the instrument or is to be, or may be, done under or by virtue of the instrument, and</p></content></level><level class="para1"><num>(c)</num><content><p>any action or decision taken or made under this or another enactment in so far as it resulted in, or was connected to, the making of the instrument.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Provision under subsection (2) may apply subsection (3) or (4)—</p></intro><level class="para1"><num>(a)</num><content><p>generally or only for specified purposes, cases or circumstances, or</p></content></level><level class="para1"><num>(b)</num><content><p>differently for different purposes, cases or circumstances.</p></content></level></subsection><subsection><num>(7)</num><content><p>A thing is not done by virtue of a resolution instrument for the purposes of subsection (5)(b) merely by virtue of being done under a contract or other agreement rights or obligations under which have been affected by the instrument.</p></content></subsection></section><section><num>48N</num><heading>Directors</heading><subsection><num>(1)</num><intro><p>A resolution instrument may enable the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>to remove a director of a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(c)</num><content><p>to terminate the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(d)</num><content><p>to appoint a director of a specified bank.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) also applies to a director of any undertaking which is a banking group company in respect of a specified bank.</p></content></subsection><subsection><num>(3)</num><content><p>Appointments under subsection (1)(d) are to be on terms and conditions agreed with the Bank of England.</p></content></subsection></section><section><num>48O</num><heading>Directions in or under resolution instrument</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require one or more directors of the bank to comply with any general or specific directions that may be set out in the instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>enable the Bank of England to give written directions (whether general or specific) to one or more directors of the bank.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A director—</p></intro><level class="para1"><num>(a)</num><content><p>is not to be regarded as failing to comply with any duty owed to any person (for example, a shareholder, creditor or employee of the bank) by virtue of any action or inaction in compliance with a direction given under subsection (1)(a) or (b);</p></content></level><level class="para1"><num>(b)</num><content><p>is to be immune from liability in damages in respect of action or inaction in accordance with a direction.</p></content></level></subsection><subsection><num>(3)</num><content><p>A director must comply with a direction within the period of time specified in the direction, or if no period of time is specified, as soon as reasonably practicable.</p></content></subsection><subsection><num>(4)</num><content><p>A direction under subsection (1)(a) or (b) is enforceable on an application made by the Bank of England, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.</p></content></subsection></section><section><num>48P</num><heading>Orders for safeguarding certain financial arrangements</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-protected-arrangements">protected arrangements</term>” means security interests, title transfer collateral arrangements, set-off arrangements and netting arrangements.</p></content></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-netting-arrangements">netting arrangements</term>” means arrangements under which a number of claims or obligations can be converted into a net claim or obligation, and includes, in particular, “close-out” netting arrangements, under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-security-interests">security interests</term>” means arrangements under which one person acquires, by way of security, an actual or contingent interest in the property of another;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-set-off-arrangements">set-off arrangements</term>” means arrangements under which two or more debts, claims or obligations can be set off against each other;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-title-transfer-collateral-arrangements">title transfer collateral arrangements</term>” means arrangements under which Person 1 transfers assets to Person 2 on terms providing for Person 2 to transfer assets if specified obligations are discharged.</p></content></hcontainer></subsection><subsection><num>(3)</num><intro><p>The Treasury may by order—</p></intro><level class="para1"><num>(a)</num><content><p>restrict the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(b)</num><content><p>impose conditions on the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(c)</num><content><p>require any instrument that makes special bail-in provision to include specified provision, or provision to a specified effect, in respect of or for purposes connected with protected arrangements;</p></content></level><level class="para1"><num>(d)</num><content><p>provide for an instrument to be void or voidable, or for other consequences to arise, if or in so far as the instrument is made or purported to be made in contravention of a provision of the order (or of another order under this section);</p></content></level><level class="para1"><num>(e)</num><intro><p>specify principles to which the Bank of England is to be required to have regard in exercising specified powers—</p></intro><level class="para2"><num>(i)</num><content><p>that involve protected arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>where the exercise of the powers might affect protected arrangements.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>References to exercising a power within the scope of paragraph (a) or (b) of subsection (3) are to making an instrument containing provision made in reliance on section 12A(3)(a) or 44B (special bail-in provision).</p></content></subsection><subsection><num>(5)</num><intro><p>An order may apply to protected arrangements generally or only to arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>of a specified kind, or</p></content></level><level class="para1"><num>(b)</num><content><p>made or applying in specified circumstances.</p></content></level></subsection><subsection><num>(6)</num><content><p>An order may include provision for determining which arrangements are to be, or not to be, treated as protected arrangements; in particular, an order may provide for arrangements to be classified not according to their description by the parties but according to one or more indications of how they are treated, or are intended to be treated, in commercial practice.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes arrangements which—</p></intro><level class="para1"><num>(a)</num><content><p>are formed wholly or partly by one or more contracts or trusts;</p></content></level><level class="para1"><num>(b)</num><content><p>arise under or are wholly or partly governed by the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1"><num>(c)</num><content><p>wholly or partly arise automatically as a matter of law;</p></content></level><level class="para1"><num>(d)</num><content><p>involve any number of parties;</p></content></level><level class="para1"><num>(e)</num><content><p>operate partly by reference to other arrangements between parties.</p></content></level></subsection><subsection><num>(8)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48Q</num><heading>Continuity</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for anything (including legal proceedings) that relates to anything affected by the instrument and is in the process of being done immediately before the instrument takes effect to be continued from the time the instrument takes effect.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may modify references (express or implied) in an instrument or document.</p></content></subsection><subsection><num>(3)</num><content><p>A resolution instrument may require or permit any person to provide information and assistance to the Bank of England or another person, for the purposes of or in connection with provision made or to be made in that or another resolution instrument.</p></content></subsection></section><section><num>48R</num><heading>Execution and registration of instruments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>A resolution instrument may permit or require the execution, issue or delivery of an instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may provide for any provision in the instrument to have effect irrespective of—</p></intro><level class="para1"><num>(a)</num><content><p>whether an instrument has been produced, delivered, transferred or otherwise dealt with;</p></content></level><level class="para1"><num>(b)</num><content><p>registration.</p></content></level></subsection><subsection><num>(3)</num><content><p>A resolution instrument may provide for the effect of an instrument executed, issued or delivered in accordance with the resolution instrument.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>entitle a person to be registered in respect of a security;</p></content></level><level class="para1"><num>(b)</num><content><p>require a person to effect registration.</p></content></level></subsection></section><section><num>48S</num><heading>Resolution instruments: general matters</heading><subsection><num>(1)</num><content><p>Provision made in a resolution instrument takes effect despite any restriction arising by virtue of contract or legislation or in any other way.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may include incidental, consequential or transitional provision.</p></content></subsection><subsection><num>(3)</num><intro><p>In relying on subsection (2) a resolution instrument—</p></intro><level class="para1"><num>(a)</num><content><p>may make provision generally or only for specified purposes, cases or circumstances, and</p></content></level><level class="para1"><num>(b)</num><content><p>may make different provision for different purposes, cases or circumstances.</p></content></level></subsection></section><section><num>48T</num><heading>Procedure</heading><subsection><num>(1)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument in respect of a bank the Bank of England must send a copy to—</p></intro><level class="para1"><num>(a)</num><content><p>the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(c)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(d)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(e)</num><content><p>any other person specified in the code of practice under section 5.</p></content></level></subsection><subsection><num>(2)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument the Bank of England must publish a copy—</p></intro><level class="para1"><num>(a)</num><content><p>on the Bank's internet website, and</p></content></level><level class="para1"><num>(b)</num><content><p>in two newspapers, chosen by the Bank of England to maximise the likelihood of the instrument coming to the attention of persons likely to be affected.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where the Treasury receive a copy of a resolution instrument under subsection (1) they must lay a copy before Parliament.</p></content></subsection></section><section><num>48U</num><heading>Supplemental resolution instruments</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) with respect to a bank.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make, with respect to the bank, one or more resolution instruments designated by the Bank of England as supplemental resolution instruments.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a supplemental resolution instrument (but it is to be treated in the same way as a resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a supplemental resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>The possibility of making a supplemental resolution instrument in reliance on subsection (2) is without prejudice to the possibility of making a new instrument in accordance with section 12A(2) (and not in reliance on subsection (2) above).</p></content></subsection></section><section><num>48V</num><heading>Onward transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) providing for securities issued by a specified bank to be transferred to any person.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more onward transfer resolution instruments.</p></content></subsection><subsection><num>(3)</num><intro><p>An onward transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><intro><p>provides for the transfer of—</p></intro><level class="para2"><num>(i)</num><content><p>securities which were issued by the bank before the original instrument and have been transferred by the original instrument or a supplemental resolution instrument, or</p></content></level><level class="para2"><num>(ii)</num><content><p>securities which were issued by the bank after the original instrument;</p></content></level></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities issued by the bank (whether the transfer has been or is to be effected by that instrument, by another instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>An onward transfer resolution instrument may not transfer securities to the transferor under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to an onward transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making an onward transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 48U applies where the Bank of England has made an onward transfer resolution instrument.</p></content></subsection></section><section><num>48W</num><heading>Reverse transfer</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England has made an instrument (“the original instrument”) that is either—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument providing for the transfer of securities issued by a bank to a person (“<term refersTo="#term-the-transferee">the transferee</term>”), or</p></content></level><level class="para1"><num>(b)</num><content><p>an onward transfer resolution instrument (see section 48V) providing for the transfer of securities issued by a bank to a person (“the onward transferee”).</p></content></level></subsection><subsection><num>(2)</num><content><p>In a case falling within subsection (1)(a) the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the transferee (whether or not they were transferred by the original instrument).</p></content></subsection><subsection><num>(3)</num><content><p>In a case falling within subsection (1)(b), the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the onward transferee.</p></content></subsection><subsection><num>(4)</num><intro><p>A reverse transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities which are, or could be or could have been, transferred under paragraph (a).</p></content></level></subsection><subsection><num>(5)</num><content><p>Except where subsection (6) applies, the Bank of England may make a reverse transfer resolution instrument under subsection (2) only with the written consent of the transferee.</p></content></subsection><subsection><num>(6)</num><intro><p>This subsection applies where the transferee is—</p></intro><level class="para1"><num>(a)</num><content><p>a bail-in administrator, or</p></content></level><level class="para1"><num>(b)</num><content><p>a person who is not to be authorised to exercise any rights attaching to the securities except on the Bank of England's instructions.</p></content></level></subsection><subsection><num>(7)</num><content><p>The Bank of England may make a reverse transfer resolution instrument under subsection (3) only with the written consent of the onward transferee.</p></content></subsection><subsection><num>(8)</num><content><p>Sections 7 and 8A do not apply to a reverse transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes including for the purposes of an application of a power under this Part).</p></content></subsection><subsection><num>(9)</num><intro><p>Before making a reverse transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(10)</num><content><p>Section 48U applies where the Bank of England has made a reverse transfer resolution instrument.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-transfers-of-property"><heading><i>Transfers of property</i></heading><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><content><p><mod>After section 41 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>41A</num><heading>Transfer of property subsequent to resolution instrument</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more property transfer instruments in respect of property, rights or liabilities of the bank.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a property transfer instrument under subsection (2).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a property transfer instrument under subsection (2) the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><intro><p>In section 42 (supplemental property transfer instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-5-2-a"><num>(a)</num><content><p><mod>in subsection (1) for “12(2)” substitute <quotedText>“
12(2) or 41A(2)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-b"><num>(b)</num><content><p><mod>in subsection (4) for “and 8” substitute <quotedText>“
, 8 and 8A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-c"><num>(c)</num><content><p><mod>in subsection (6) for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p><mod>After section 44 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>44A</num><heading>Bail in: reverse property transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a property transfer instrument in accordance with section 41A(2) (“the original instrument”).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more bail-in reverse property transfer instruments in respect of property, rights or liabilities of the transferee under the original instrument.</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in reverse property transfer instrument is a property transfer instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for a transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, or could be or could have been, transferred under paragraph (a) (whether the transfer has been or is to be effected by that instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>The Bank of England may make a bail-in reverse property transfer instrument only with the written consent of the transferee under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to a bail-in reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making a bail-in reverse property transfer instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 42 (supplemental instruments) applies where the Bank of England has made a bail-in reverse property transfer instrument.</p></content></subsection></section><section><num>44B</num><heading>Property transfer instruments: special bail-in provision</heading><subsection><num>(1)</num><content><p>A property transfer instrument under section 12(2) or 41A(2), or an associated supplemental property transfer instrument, may make special bail-in provision with respect to the bank (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The reference in subsection (1) to an “associated” supplemental property transfer instrument is to a supplemental property transfer instrument in relation to which the original instrument (as defined in section 42(1)) is a property transfer instrument under section 12(2) or 41A(2).</p></content></subsection><subsection><num>(3)</num><content><p>In the case of a property transfer instrument under section 12(2), or a supplemental property transfer instrument in relation to which the original instrument is a property transfer instrument under section 12(2), the power under subsection (1) to make the provision described in section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes power to make provision replacing a liability (of any form) of the bank mentioned in subsection (1) with a security (of any form or class) of the bridge bank mentioned in section 12(1).</p></content></subsection><subsection><num>(4)</num><content><p>Where securities of the bridge bank (“B”) are, as a result of subsection (3), held by a person other than the Bank of England, that does not prevent B from being regarded for the purposes of this Part (see particularly section 12(1)) as being wholly owned by the Bank of England, as long as the Bank of England continues to hold all the ordinary shares issued by B.</p></content></subsection></section><section><num>44C</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a property transfer instrument containing provision made in reliance on section 44B.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision was made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the property transfer instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p><mod>In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert <quotedText>“
, 44A(3)(b)
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-compensation"><heading><i>Compensation</i></heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-2-paragraph-6-1"><num>(1)</num><intro><p>In section 49 (orders)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-1-a"><num>(a)</num><content><p><mod>in subsection (1), for “three” substitute <quotedText>“
four
”</quotedText> and for “and property transfer instruments” substitute <quotedText>“
, property transfer instruments and orders and resolution instruments
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-1-b"><num>(b)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>A “bail-in compensation order” is an order establishing a scheme for determining, in accordance with section 52A, whether any transferors or others should be paid compensation.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-2"><num>(2)</num><content><p><mod>In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified classes of creditor,” substitute <quotedText>“
persons of a specified description,
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-3"><num>(3)</num><content><p><mod>After section 52 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>52A</num><heading>Bail-in option</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies if the Bank of England makes—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument under section 12A(2), or</p></content></level><level class="para1"><num>(b)</num><content><p>a property transfer instrument under section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury must make a bail-in compensation order (see section 49(2A)).</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in compensation order may include provision for—</p></intro><level class="para1"><num>(a)</num><content><p>an independent valuer (in which case sections 54 to 56 are to apply);</p></content></level><level class="para1"><num>(b)</num><content><p>valuation principles (in which case section 57(2) to (5) is to apply).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-4"><num>(4)</num><intro><p>In section 53 (onward and reverse transfers), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-4-a"><num>(a)</num><content><p><mod>before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zza)</num><content><p>the Bank of England makes a supplemental share transfer instrument under section 26,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-b"><num>(b)</num><content><p><mod>after paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zb)</num><content><p>the Treasury makes a supplemental share transfer order under section 27,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-c"><num>(c)</num><content><p><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(dza)</num><content><p>the Bank of England makes a supplemental property transfer instrument under section 42,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-d"><num>(d)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(fa)</num><content><p>the Bank of England makes a reverse property transfer instrument under section 44A(2),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-e"><num>(e)</num><content><p>omit the “or” after paragraph (g);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-f"><num>(f)</num><content><p><mod>after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Bank of England makes a supplemental resolution instrument under section 48U,</p></content></level><level class="para1"><num>(j)</num><content><p>the Bank of England makes an onward transfer resolution instrument under section 48V(2), or</p></content></level><level class="para1"><num>(k)</num><content><p>the Bank of England makes a reverse transfer resolution instrument under section 48W(2) or (3).</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-g"><num>(g)</num><content><p><mod>in the heading, after “<b>transfers</b>” insert <quotedText>“
<b><abbr title="Et cetera" xml:lang="la">etc</abbr></b>
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-5"><num>(5)</num><intro><p>In section 54 (independent valuer)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-5-a"><num>(a)</num><content><p><mod>in subsection (1), after “compensation scheme order” insert <quotedText>“
or bail-in compensation order
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-5-b"><num>(b)</num><content><p><mod>in subsection (4)(b), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-6"><num>(6)</num><content><p><mod>In section 56 (independent valuer: money), in subsection (2)(b) for “or third party compensation order” substitute <quotedText>“
, third party compensation order or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-7"><num>(7)</num><content><p><mod>In section 57 (valuation principles), in subsection (1), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-8"><num>(8)</num><content><p><mod>After section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Further mandatory provision: bail-in provision</heading><subsection><num>(1)</num><intro><p>The Treasury may make regulations about compensation arrangements in the case of—</p></intro><level class="para1"><num>(a)</num><content><p>resolution instruments under section 12A(2) and supplemental resolution instruments under section 48U(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>instruments (made under any provision) that include special bail-in provision.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Regulations may—</p></intro><level class="para1"><num>(a)</num><content><p>require a resolution fund order, a compensation scheme order, a third party compensation order or a bail-in compensation order to include provision of a specified kind or to specified effect;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision that is to be treated as forming part of any such order (whether (i) generally, (ii) only if applied, (iii) unless disapplied, or (iv) subject to express modification).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Regulations may provide for whether compensation is to be paid, and if so what amount is to be paid, to be determined by reference to any factors or combination of factors; in particular, the regulations may provide for entitlement—</p></intro><level class="para1"><num>(a)</num><content><p>to depend in part upon the amounts which are or may be payable under a resolution fund order;</p></content></level><level class="para1"><num>(b)</num><content><p>to be contingent upon the occurrence or non-occurrence of specified events;</p></content></level><level class="para1"><num>(c)</num><content><p>to be determined wholly or partly by an independent valuer (within the meaning of sections 54 to 56) appointed in accordance with a compensation scheme order or bail-in compensation order.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Regulations may make provision about payment including, in particular, provision for payments—</p></intro><level class="para1"><num>(a)</num><content><p>on account subject to terms and conditions;</p></content></level><level class="para1"><num>(b)</num><content><p>by instalment.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>60B</num><heading>Principle of no less favourable treatment</heading><subsection><num>(1)</num><content><p>In making regulations under section 60A the Treasury must, in particular, have regard to the desirability of ensuring that pre-resolution shareholders and creditors of a bank do not receive less favourable treatment than they would have received had the bank entered insolvency immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>References in this section to the initial instrument are—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to compensation arrangements in the case of property transfer instruments under section 12(2), to the first instrument to be made under that provision with respect to the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to compensation arrangements in other cases, to the first resolution instrument to be made under section 12A with respect to the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “pre-resolution shareholders and creditors” of a bank are the persons who held securities issued by the bank, or were creditors of the bank, immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to insolvency include a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) receivership, (vi) composition with creditors, and (vii) a scheme of arrangement.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-9"><num>(9)</num><intro><p>In section 61(1) (sources of compensation),—</p></intro><level class="para1" eId="schedule-2-paragraph-6-9-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (c);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-b"><num>(b)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>bail-in compensation orders,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-c"><num>(c)</num><content><p><mod>after paragraph (d) insert, “, and<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(e)</num><content><p>regulations under section 60A.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-10"><num>(10)</num><content><p><mod>In section 62(1) (procedure), omit the “and” at the end of paragraph (b), and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>bail-in compensation orders, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-groups"><heading><i>Groups</i></heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p><mod>After section 81B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81BA</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition 1 is that the PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of a bank in the same group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition 2 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition 3 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.</p></content></subsection><subsection><num>(5)</num><intro><p>Before determining whether Condition 2 is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>In exercising a stabilisation power in reliance on this section the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><content><p><mod>After section 81C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81CA</num><heading>Section 81BA: supplemental</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has power under section 81BA to exercise a stabilisation power in respect of a banking group company.</p></content></subsection><subsection><num>(2)</num><content><p>The provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 and 8A) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.</p></content></subsection><subsection><num>(3)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions in this Act relating to resolution instruments are to be read in accordance with the general rule in subsection (4), but</p></content></level><level class="para1"><num>(b)</num><content><p>that is subject to the modifications in subsection (5);</p></content></level><wrapUp><p>and provisions in this Act and any other enactment are to be read with any modifications that may be necessary as a result of paragraphs (a) and (b).</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>The general rule is that the provisions in this Act relating to resolution instruments (including supplemental resolution instruments) are to be read (so far as the context permits)—</p></intro><level class="para1"><num>(a)</num><content><p>as applying in relation to the bank as they apply in relation to the parent undertaking, and</p></content></level><level class="para1"><num>(b)</num><content><p>so, in particular, as allowing any provision that may be made in a resolution instrument in relation to the parent undertaking to be made (also or instead) in relation to the bank.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>section 41A (transfer of property subsequent to resolution instrument) applies as if the reference in subsection (2) to the bank were to the parent undertaking, the bank and any other bank which is or was in the same group;</p></content></level><level class="para1"><num>(b)</num><intro><p>section 48V (onward transfer)—</p></intro><level class="para2"><num>(i)</num><content><p>applies as if the references in subsection (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group, and with the omission of subsection (4) of that section, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is to be read as permitting the transfer of securities only if they are held by (or for the benefit of) the parent undertaking or a subsidiary company of the parent undertaking;</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 48W (reverse transfer) applies as if the references in subsections (2) and (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group.</p></content></level></subsection><subsection><num>(6)</num><content><p>Where section 48B (special bail-in provision) applies in accordance with subsection (4) (so that section 48B applies in relation to the bank mentioned in section 81BA(2) as it applies in relation to the parent undertaking mentioned in subsection (3)), the provision that may be made in accordance with section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes provision replacing a liability (of any form) of that bank with a security (of any form or class) of the parent undertaking.</p></content></subsection><subsection><num>(7)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2)—</p></intro><level class="para1"><num>(a)</num><content><p>section 214B of the Financial Services and Markets Act 2000 (contribution to costs of special resolution regime) applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference in subsection (1)(b) of that section to the bank, and later references in that section, are treated as including references to any other bank which is a subsidiary undertaking of the parent undertaking (but not the parent undertaking itself).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><intro><p>In section 81D (interpretation: “banking group company” <abbr title="Et cetera" xml:lang="la">etc</abbr>)—</p></intro><level class="para1" eId="schedule-2-paragraph-7-3-a"><num>(a)</num><content><p><mod>in subsection (6), for “, 81C” substitute <quotedText>“
to 81CA
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-7-3-b"><num>(b)</num><content><p><mod>in subsection (7) for “section 81B” substitute <quotedText>“
sections 81B to 81CA
”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-banks-regulated-by-the-financial-conduct-authority"><heading><i>Banks regulated by the Financial Conduct Authority</i></heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 83A (modifications of Part 1 as it applies to banks not regulated by the Prudential Regulation Authority), in the table in subsection (2) insert the following entries at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 8A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 41A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 44A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 48H</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48U</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48V</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48W</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 81BA</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-recognised-central-counterparties"><heading><i>Recognised central counterparties</i></heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num><noteRef href="#key-1ae2b182a6b3fff3e2dd051310b09bab" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>9</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-insolvency-proceedings"><heading><i>Insolvency proceedings</i></heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(ii), after “Part 1” insert <quotedText>“
(and Condition 5 has been met, if applicable)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Condition 5—</p></intro><level class="para1"><num>(a)</num><content><p>applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-c"><num>(c)</num><content><p><mod>in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-d"><num>(d)</num><content><p><mod>after subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-state-aid"><heading><i>State aid</i></heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num><noteRef href="#key-1388f7f47d63b0c81dc5424d5f05473b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>11</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-other-amendments-of-the-act"><heading><i>Other amendments of the Act</i></heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-2-paragraph-12-1"><num>(1)</num><content><p>Section 1 (overview) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-2"><num>(2)</num><content><p><mod>In subsection (2)(a), for “three” substitute <quotedText>“
four
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The four “stabilisation options” are—</p></intro><level class="para1"><num>(a)</num><content><p>transfer to a private sector purchaser (section 11),</p></content></level><level class="para1"><num>(b)</num><content><p>transfer to a bridge bank (section 12),</p></content></level><level class="para1"><num>(c)</num><content><p>the bail-in option (section 12A), and</p></content></level><level class="para1"><num>(d)</num><content><p>transfer to temporary public ownership (section 13).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-2-paragraph-12-4-a"><num>(a)</num><content><p><mod>for “three” substitute <quotedText>“
four
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-b"><num>(b)</num><content><p><mod>before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>the resolution instrument powers (sections 12A(2) and 48U to 48W),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-c"><num>(c)</num><content><p><mod>in paragraph (b), after “33” insert <quotedText>“
, 41A
”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 13 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 17 (share transfers: effect)—</p></intro><level class="para1" eId="schedule-2-paragraph-14-a"><num>(a)</num><content><p><mod>in subsection (1), after “order” insert, <quotedText>“
or by a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-b"><num>(b)</num><content><p><mod>in subsection (5), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-c"><num>(c)</num><content><p><mod>in subsection (6), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 18 (share transfers: continuity), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>This section applies to a resolution instrument as it applies to a share transfer instrument; and in relation to a resolution instrument references in this section to a “transfer” are to a transfer of securities (whether made by that or another resolution instrument) and “<term refersTo="#term-transferor">transferor</term>” and “<term refersTo="#term-transferee">transferee</term>” are to be read accordingly.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><intro><p>In section 44 (reverse property transfer)—</p></intro><level class="para1" eId="schedule-2-paragraph-16-a"><num>(a)</num><content><p><mod>in subsection (2), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-b"><num>(b)</num><content><p><mod>in subsection (3), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-c"><num>(c)</num><content><p><mod>in subsection (4), for “A reverse” substitute <quotedText>“
A bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-d"><num>(d)</num><intro><p>in subsection (4A)—</p></intro><level class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-2-paragraph-16-e"><num>(e)</num><content><p><mod>in subsection (5), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-f"><num>(f)</num><content><p><mod>in subsection (6), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-g"><num>(g)</num><content><p><mod>in subsection (7), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-h"><num>(h)</num><content><p><mod>in the heading, for “<b>Reverse</b>” substitute <quotedText>“
<b>Bridge bank: reverse</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><intro><p>In section 66 (general continuity obligation: share transfers)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-a"><num>(a)</num><content><p><mod>in subsection (1)(a), after “13(2)” insert <quotedText>“
, or which falls within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-b"><num>(b)</num><content><p><mod>in subsection (1)(d)(i), after “11(2)(a)” insert <quotedText>“
, or in a case falling within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another of securities issued by the bank (and the reference in subsection (1)(b) to “<term refersTo="#term-the-transfer">the transfer</term>” includes such a cancellation or conversion).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert <quotedText>“
or resolution instrument
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert <quotedText>“
a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><intro><p>In section 71 (pensions), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-21-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-21-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-22" class="schProv1"><num>22</num><intro><p>In section 72 (enforcement), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a resolution instrument.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 73 (disputes), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-23-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-23-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-24" class="schProv1"><num>24</num><content><p><mod>In section 74 (tax), in subsection (6), for “or 45” substitute <quotedText>“
, 45, 48U or 48V
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-25" class="schProv1"><num>25</num><content><p><mod>After section 80 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>80A</num><heading>Transfer for bail-in purposes: report</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes one or more resolution instruments under section 12A(2) in respect of a bank.</p></content></subsection><subsection><num>(2)</num><intro><p>The Bank of England must, on request by the Treasury, report to the Chancellor of the Exchequer about—</p></intro><level class="para1"><num>(a)</num><content><p>the exercise of the power to make a resolution instrument under section 12A(2),</p></content></level><level class="para1"><num>(b)</num><content><p>the activities of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other matters in relation to the bank that the Treasury may specify.</p></content></level></subsection><subsection><num>(3)</num><content><p>In relation to the matters in subsection (2)(a) and (b), the report must comply with any requirements that the Treasury may specify.</p></content></subsection><subsection><num>(4)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-26" class="schProv1"><num>26</num><intro><p>In section 81A (accounting information to be included in reports under sections 80 and 81)—</p></intro><level class="para1" eId="schedule-2-paragraph-26-a"><num>(a)</num><content><p><mod>in subsection (1), for “or 81” substitute <quotedText>“
, 80A(2)(b) or 81
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-26-b"><num>(b)</num><content><p><mod>in the heading, for “<b>and 81</b>” substitute <quotedText>“
<b>, 80A(2)(b) and 81</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-27" class="schProv1"><num>27</num><content><p><mod>In section 85 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-28" class="schProv1"><num>28</num><content><p><mod>In section 136 (overview), in the Table in subsection (3), for “152” substitute <quotedText>“
152A
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-29" class="schProv1"><num>29</num><content><p><mod>After section 152 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>152A</num><heading>Property transfer from transferred institution</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>makes a resolution instrument that transfers securities issued by a bank (or a bank's parent undertaking), in accordance with section 12A(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>later makes a property transfer instrument from the bank or from another bank which is or was in the same group as the bank, in accordance with section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>This Part applies to the transferor under the property transfer instrument made in accordance with section 41A(2) as to the transferor under a property transfer instrument made in accordance with section 12(2).</p></content></subsection><subsection><num>(3)</num><intro><p>For that purpose this Part applies with any modifications specified by the Treasury in regulations; and any regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 220 (insolvency <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>The fact that ownership of an authorised bank is transferred or otherwise changed as a result of a resolution instrument (or an instrument treated as a resolution instrument) does not itself prevent the bank from relying on section 213.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-31" class="schProv1"><num>31</num><intro><p>In section 259 (statutory instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-31-a"><num>(a)</num><content><p><mod>in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute <quotedText>“
Third party compensation: partial property transfers
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-b"><num>(b)</num><content><p><mod>in the Table in subsection (3), in Part 1, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48F(1) and (2)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to amend definition of “excluded liabilities”</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48G</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Insolvency treatment principles</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48P</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Safeguarding of certain financial arrangements</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">52A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation orders</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“60A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Third party compensation: instruments containing special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-c"><num>(c)</num><content><p><mod>in the Table in subsection (3), in Part 3, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">152A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Property transfer from transferred institution</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-d"><num>(d)</num><content><p><mod>in subsection (5), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><content><p>section 60A (special resolution regime: instruments containing special bail-in provision),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-e"><num>(e)</num><content><p><mod>in subsection (5), after paragraph (k) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ka)</num><content><p>section 152A (bank administration: property transfer from transferred institution),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 261 (index of defined terms), in the Table, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation order</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">49”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Resolution instrument</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12A”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48B</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-part-2"><num><b>PART 2</b></num><heading>Modification of Investment Bank Special Administration Regulations 2011</heading><paragraph eId="schedule-2-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-2-paragraph-33-1"><num>(1)</num><content><p>This paragraph modifies the application of the Investment Bank Special Administration Regulations 2011 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2011/245) (“<term refersTo="#term-the-regulations" eId="term-the-regulations">the regulations</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-2"><num>(2)</num><content><p>In sub-paragraph (1) “<term refersTo="#term-the-relevant-3-month-period" eId="term-the-relevant-3-month-period">the relevant 3-month period</term>” means the 3 months ending with the date on which the FCA receives the notification under Condition 1 in regulation 8 of the regulations.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-4"><num>(4)</num><intro><p>In regulation 8 (in its application to those cases)—</p></intro><level class="para1" eId="schedule-2-paragraph-33-4-a"><num>(a)</num><content><p><mod>in paragraph (5)(c)(ii), for “appropriate regulator” substitute <quotedText>“
Bank of England
”</quotedText> and after “notice” insert <quotedText>“
and the appropriate regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-b"><num>(b)</num><content><p>in paragraph (6), omit sub-paragraph (a) (but continue to read “that” in sub-paragraph (b) as a reference to the insolvency procedure to which the notice relates);</p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-c"><num>(c)</num><content><p><mod>after paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(6A)</num><content><p>Where the FCA receives notice under Condition 1, it must also inform the Bank of England of the contents of the notice.</p></content></subsection><subsection><num>(6B)</num><content><p>Where the Bank of England receives notice under paragraph (6A), it must, within the period in Condition 3, inform the person who gave the notice and the appropriate regulator whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-2-paragraph-33-1"><num>(1)</num><content><p>This paragraph modifies the application of the Investment Bank Special Administration Regulations 2011 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2011/245) (“<term refersTo="#term-the-regulations" eId="term-the-regulations">the regulations</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-2"><num>(2)</num><content><p>In sub-paragraph (1) “<term refersTo="#term-the-relevant-3-month-period" eId="term-the-relevant-3-month-period">the relevant 3-month period</term>” means the 3 months ending with the date on which the FCA receives the notification under Condition 1 in regulation 8 of the regulations.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-4"><num>(4)</num><intro><p>In regulation 8 (in its application to those cases)—</p></intro><level class="para1" eId="schedule-2-paragraph-33-4-a"><num>(a)</num><content><p><mod>in paragraph (5)(c)(ii), for “appropriate regulator” substitute <quotedText>“
Bank of England
”</quotedText> and after “notice” insert <quotedText>“
and the appropriate regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-b"><num>(b)</num><content><p>in paragraph (6), omit sub-paragraph (a) (but continue to read “that” in sub-paragraph (b) as a reference to the insolvency procedure to which the notice relates);</p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-c"><num>(c)</num><content><p><mod>after paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(6A)</num><content><p>Where the FCA receives notice under Condition 1, it must also inform the Bank of England of the contents of the notice.</p></content></subsection><subsection><num>(6B)</num><content><p>Where the Bank of England receives notice under paragraph (6A), it must, within the period in Condition 3, inform the person who gave the notice and the appropriate regulator whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote"><p>
Section 35</p></authorialNote></num><heading>Consequential amendments relating to Part 4</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-financial-services-and-markets-act-2000"><heading><i>Financial Services and Markets Act 2000</i></heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p><mod>In subsection (2), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><content><p>Section 59A of FSMA 2000 (specifying functions as controlled functions: supplementary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1)(a) and (b), for “significant-influence” substitute <quotedText>“
senior management
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>Senior management function” has the meaning given by section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><content><p>Section 63 of FSMA 2000 (withdrawal of approval) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1A)(a), for “significant-influence function” substitute <quotedText>“
relevant senior management function
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-3"><num>(3)</num><content><p><mod>For subsection (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><content><p>In subsection (1A) “<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 63A of FSMA 2000 (power to impose penalties), in subsection (2), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>P, when performing the function, is not acting in accordance with an approval given under section 59.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-3-paragraph-5-1"><num>(1)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-2"><num>(2)</num><content><p><mod>In subsection (3), for paragraph (ab) (and the “or” following it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>impose, for such period as it considers appropriate, any conditions in relation to any such approval which it considers appropriate;</p></content></level><level class="para1"><num>(ac)</num><content><p>limit the period for which any such approval is to have effect;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-3"><num>(3)</num><content><p><mod>In subsection (3A), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-4"><num>(4)</num><content><p><mod>In subsection (3B), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-5"><num>(5)</num><content><p><mod>In subsection (3C), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-6"><num>(6)</num><intro><p>In subsection (3D)—</p></intro><level class="para1" eId="schedule-3-paragraph-5-6-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-b"><num>(b)</num><content><p>omit the “or” at the end of paragraph (a),</p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-c"><num>(c)</num><content><p><mod>in paragraph (b), for “restriction” substitute <quotedText>“
condition
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-d"><num>(d)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>vary a limitation so as to increase the period for which the approval is to have effect.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-5-7"><num>(7)</num><content><p><mod>In subsection (9), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-3-paragraph-6-1"><num>(1)</num><content><p>Section 67 of FSMA 2000 (disciplinary measures: procedure and right to refer to Tribunal) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-3"><num>(3)</num><content><p><mod>In subsection (2A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><content><p>A warning notice about a proposal to limit the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (4), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-6"><num>(6)</num><content><p><mod>In subsection (5A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-7"><num>(7)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><content><p>A decision notice about limiting the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-8"><num>(8)</num><content><p><mod>In subsection (7), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><intro><p>In section 69 of FSMA 2000 (statement of policy), in subsection (1)—</p></intro><level class="para1" eId="schedule-3-paragraph-7-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restrictions” substitute <quotedText>“
, conditions or limitations
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-b"><num>(b)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “restrictions” substitute <quotedText>“
conditions
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-d"><num>(d)</num><content><p><mod>at the end of paragraph (c) insert<quotedText startQuote="“">; and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the period for which approvals under section 59 are to have effect as a result of a limitation under section 66.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 138A of FSMA 2000 (modification or waiver of rules), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="rule" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules made by either regulator under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 138D of FSMA 2000 (actions for damages), in subsection (5), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 140A of FSMA 2000 (interpretation), in the definition of “regulating provisions”—</p></intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-3-paragraph-10-a-i"><num>(i)</num><content><p>omit sub-paragraph (iii), and</p></content></level><level class="para2" eId="schedule-3-paragraph-10-a-ii"><num>(ii)</num><content><p>in sub-paragraph (iv), omit “64 or”;</p></content></level></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content><p>in paragraph (b), omit sub-paragraphs (ii) and (iii).</p></content></level></paragraph><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (2)(g), in sub-paragraphs (ii) and (iii), for “relevant authorised person” substitute <quotedText>“
authorised person concerned
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 387 of FSMA 2000 (warning notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 388 of FSMA 2000 (decision notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 395 of FSMA 2000 (supervisory notices), in subsection (13), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>63ZC(4), (8) or (9)(b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-3-paragraph-15-1"><num>(1)</num><content><p>Section 415B of FSMA 2000 (consultation in relation to taking certain enforcement action) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-15-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-15-2-a"><num>(a)</num><content><p><mod>in paragraph (b), for “significant-influence” substitute <quotedText>“
relevant senior management
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-15-2-b"><num>(b)</num><content><p>omit the definitions appearing after that paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-15-3"><num>(3)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In subsection (4)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-arrangement">arrangement</term>” has the same meaning as in section 59;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the FCA is satisfied is a senior management function as defined in section 59ZA (whether or not it has been designated as such under section 59(6A) or (6B)).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-16" class="schProv1"><num>16</num><intro><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)—</p></intro><level class="para1" eId="schedule-3-paragraph-16-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-16-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-16-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-16-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></paragraph><paragraph eId="schedule-3-paragraph-17" class="schProv1"><num><noteRef href="#key-6c864b8740b053ea21e5023af03183be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>17</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-financial-services-act-2012"><heading><i>Financial Services Act 2012</i></heading><paragraph eId="schedule-3-paragraph-18" class="schProv1"><num>18</num><content><p>In section 14 of the Financial Services Act 2012, omit subsection (4).</p></content></paragraph><paragraph eId="schedule-3-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-3-paragraph-19-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-19-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-2-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-19-2-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-2-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-2-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-19-3"><num>(3)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-3-a"><num>(a)</num><content><p>omit paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-19-3-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-3-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-investigator" eId="term-investigator">investigator</term>” means a person appointed under section 83.</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p><mod>In subsection (2), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-4-paragraph-14-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-4-paragraph-14-1-a"><num>(a)</num><content><p>the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-b"><num>(b)</num><content><p>any person (“P”) who is, or is acting as, an officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-c"><num>(c)</num><content><p>any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-4"><num>(4)</num><intro><p>Sub-paragraph (1) does not apply—</p></intro><level class="para1" eId="schedule-4-paragraph-14-4-a"><num>(a)</num><content><p>if the act or omission is shown to have been in bad faith, or</p></content></level><level class="para1" eId="schedule-4-paragraph-14-4-b"><num>(b)</num><content><p>so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A determination by the CMA on an appeal—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>must be contained in an order made by the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>must set out the reasons for the determination;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-c"><num>(c)</num><content><p>takes effect at the time specified in the order or determined in accordance with provision made in the order;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-d"><num>(d)</num><content><p>must be notified by the CMA to the parties to the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-e"><num>(e)</num><intro><p>must be published by the CMA—</p></intro><level class="para2" eId="schedule-5-paragraph-15-1-e-i"><num>(i)</num><content><p>as soon as reasonably practicable after the determination is made;</p></content></level><level class="para2" eId="schedule-5-paragraph-15-1-e-ii"><num>(ii)</num><content><p>in such manner as the CMA considers appropriate for the purpose of bringing the determination to the attention of any person likely to be affected by it (other than a party to the appeal).</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><intro><p>The steps must be taken—</p></intro><level class="para1" eId="schedule-5-paragraph-15-4-a"><num>(a)</num><content><p>if a time is specified in (or is to be determined in accordance with) the order, within that time;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-4-b"><num>(b)</num><content><p>in any other case, within a reasonable time.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal" eId="term-appeal">appeal</term>” means an appeal made in accordance with section 79;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal-rules" eId="term-appeal-rules">appeal rules</term>” means rules of procedure under paragraph 16;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appellant" eId="term-appellant">appellant</term>” has the meaning given by paragraph 3(4);</p></content></hcontainer><hcontainer name="definition"><intro><p>“authorised member of the CMA”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a power exercisable in connection with an appeal in respect of which a group has been constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised by the chair of the CMA to exercise that power;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a power exercisable in connection with an application for permission to bring an appeal, or otherwise in connection with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>any member of the CMA Board who is also a member of the CMA panel, or</p></item><item><num>(ii)</num><p>any member of the CMA panel authorised by the Treasury (whether generally or specifically) to exercise the power in question;</p></item></blockList></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma" eId="term-cma">CMA</term>” means the Competition and Markets Authority;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-board" eId="term-cma-board">CMA Board</term>” and “<term refersTo="#term-cma-panel" eId="term-cma-panel">CMA panel</term>” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” means a group selected in accordance with paragraph 6;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-statement-of-truth" eId="term-statement-of-truth">statement of truth</term>”, in relation to the production of a statement or provision of information by a person, means a statement that the person believes the facts stated in the statement or information to be true;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-working-day" eId="term-working-day">working day</term>” means any day other than—</p></intro><level class="para1"><num>(a)</num><content><p>Saturday or Sunday;</p></content></level><level class="para1"><num>(b)</num><content><p>Christmas Day or Good Friday;</p></content></level><level class="para1"><num>(c)</num><content><p>a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><intro><p>References in this Schedule to a party to an appeal are references to—</p></intro><level class="para1" eId="schedule-5-paragraph-18-2-a"><num>(a)</num><content><p>the appellant, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-2-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The Building Societies Act 1986 is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p>Section 74 (duty of directors to prepare annual business statement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>In subsection (4), omit the words from “and other officers” to “them”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><content><p>In subsection (8), omit “or other officer”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><content><p><mod>After section 115 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>115A</num><heading>Deemed agreement to use of web site</heading><subsection><num>(1)</num><intro><p>For the purposes of this Act, a person is to be taken to have agreed with a building society to access a document, information or facility on a web site if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has been asked individually by the society to agree to access documents, information or facilities generally, or documents, information or facilities of the description in question, on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>the society has not received a response within the period of 28 days beginning with the date on which the society's request was received.</p></content></level><wrapUp><p>This is subject to subsections (2) to (4).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A person is not to be taken to have so agreed if the society's request—</p></intro><level class="para1"><num>(a)</num><content><p>did not state clearly what the effect of a failure to respond would be, or</p></content></level><level class="para1"><num>(b)</num><content><p>was sent less than 12 months after a previous request made to the person for the purposes of this section in respect of the same or a similar description of document, information or facility.</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who is taken to have made an agreement by virtue of subsection (1) may revoke the agreement.</p></content></subsection><subsection><num>(4)</num><intro><p>Subsection (1) does not apply in relation to the following documents—</p></intro><level class="para1"><num>(a)</num><content><p>a statement required to be sent to members by paragraph 1(1) of Schedule 16 (statements in connection with proposed mergers);</p></content></level><level class="para1"><num>(b)</num><content><p>a merger statement (within the meaning of Part 2 of that Schedule) required to be sent to members by paragraph 3 of that Schedule;</p></content></level><level class="para1"><num>(c)</num><content><p>a transfer statement or transfer summary (within the meaning of Part 1 of Schedule 17) required to be sent to members by paragraph 4(1) or (2) of that Schedule;</p></content></level><level class="para1"><num>(d)</num><content><p>a transfer proposal notification (within the meaning of Part 1A of Schedule 17) required to be sent to members by paragraph 5B(1) of that Schedule.</p></content></level></subsection></section><section><num>115B</num><heading>Right to hard copy version</heading><subsection><num>(1)</num><content><p>Where a person has received a document or information from a building society otherwise than in hard copy form, the person is entitled to require the society to send the person a version of the document or information in hard copy form.</p></content></subsection><subsection><num>(2)</num><content><p>The society must send the document or information in hard copy form within 21 days of receipt of the request from the person.</p></content></subsection><subsection><num>(3)</num><content><p>The society may not make a charge for providing the document or information in that form.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (1) does not apply if the recipient of the document or information is the FCA or the PRA.</p></content></subsection><subsection><num>(5)</num><content><p>A building society that fails to comply with this section is to be treated as having contravened rules made under section 137A of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section a person is treated as receiving a document or information from a building society if—</p></intro><level class="para1"><num>(a)</num><content><p>the society is required by this Act to send the document or information to the person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the requirement to send it is treated as satisfied.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>a document or information is sent or supplied in hard copy form if it is sent or supplied in a paper copy or similar form capable of being read, and</p></content></level><level class="para1"><num>(b)</num><content><p>a document or information can be read only if it can be read with the naked eye, or (to the extent that it consists of images) it can be seen with the naked eye.</p></content></level></subsection></section><section><num>115C</num><heading>Other agreed forms of communication</heading><subsection><num>(1)</num><content><p>A document or information that is sent or supplied by a building society otherwise than in hard copy form or electronically or by means of a web site is validly sent or supplied if it is sent or supplied in a form or manner that has been agreed by the intended recipient.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section “<term refersTo="#term-hard-copy-form">hard copy form</term>” is to be read in accordance with section 115B(7).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In section 376 of FSMA 2000 (continuation of contracts of long-term insurance where insurer in liquidation), in subsection (11B), for “PRA-authorised” substitute <quotedText>“
PRA-regulated
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><content><p>Section 59A of FSMA 2000 (specifying functions as controlled functions: supplementary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1)(a) and (b), for “significant-influence” substitute <quotedText>“
senior management
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>Senior management function” has the meaning given by section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p>In the following provisions, omit “, in a manner agreed between him and the society,”—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(7B)(c),</p></item><item><p>section 61(7D)(c),</p></item><item><p>section 68(6B)(c),</p></item><item><p>section 69(15B)(c),</p></item><item><p>section 76(8C)(c).</p></item></blockList></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><content><p>Part 25 of FSMA 2000 (injunctions and restitution) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p><mod>In section 380 (injunctions), in subsection (6)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><content><p><mod>In section 382 (restitution orders), in subsection (9)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p><mod>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) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a requirement which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><content><p>Section 63 of FSMA 2000 (withdrawal of approval) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1A)(a), for “significant-influence function” substitute <quotedText>“
relevant senior management function
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-3"><num>(3)</num><content><p><mod>For subsection (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><content><p>In subsection (1A) “<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><content><p>In section 81(3B)(c), omit “, in a manner agreed for the purpose between him and the society,”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-10-paragraph-4-1"><num>(1)</num><content><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-2"><num>(2)</num><content><p><mod>In sub-paragraph (3)(b), after “this Act” insert <quotedText>“
or under a provision mentioned in sub-paragraph (4A)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-3"><num>(3)</num><content><p><mod>In sub-paragraph (4), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>its powers under the relevant competition provisions (as applied by Part 16A of this Act),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-4"><num>(4)</num><content><p><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The relevant competition provisions” are—</p></intro><level class="para1"><num>(a)</num><content><p>section 31E of the Competition Act 1998 (enforcement of commitments);</p></content></level><level class="para1"><num>(b)</num><content><p>section 34 of that Act (enforcement of directions);</p></content></level><level class="para1"><num>(c)</num><content><p>section 36 of that Act (penalties);</p></content></level><level class="para1"><num>(d)</num><content><p>section 40A of that Act (penalties: failure to comply with requirements);</p></content></level><level class="para1"><num>(e)</num><content><p>section 174A of the Enterprise Act 2002 (penalties).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-5"><num>(5)</num><intro><p>In sub-paragraph (5)—</p></intro><level class="para1" eId="schedule-10-paragraph-4-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “FSMA 2000” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “that Act” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-c"><num>(c)</num><content><p>in paragraph (c), omit “of that Act”, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-d"><num>(d)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>offences under Part 1 of the Competition Act 1998,</p></content></level><level class="para1"><num>(cb)</num><content><p>offences under Part 4 of the Enterprise Act 2002,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 63A of FSMA 2000 (power to impose penalties), in subsection (2), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>P, when performing the function, is not acting in accordance with an approval given under section 59.</p></content></level></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p>Schedule 2 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p>In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between him and the society for that purpose,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p>In paragraph 24(1B)(b), omit “in a manner agreed between the society and that member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-5"><num>(5)</num><content><p>In paragraph 32(2D)(c), omit “, in a manner agreed between the society and the member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-6"><num>(6)</num><content><p>In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between him and the society”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><p><mod>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 <quotedText>“
subsection (1)
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-3-paragraph-5-1"><num>(1)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-2"><num>(2)</num><content><p><mod>In subsection (3), for paragraph (ab) (and the “or” following it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>impose, for such period as it considers appropriate, any conditions in relation to any such approval which it considers appropriate;</p></content></level><level class="para1"><num>(ac)</num><content><p>limit the period for which any such approval is to have effect;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-3"><num>(3)</num><content><p><mod>In subsection (3A), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-4"><num>(4)</num><content><p><mod>In subsection (3B), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-5"><num>(5)</num><content><p><mod>In subsection (3C), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-6"><num>(6)</num><intro><p>In subsection (3D)—</p></intro><level class="para1" eId="schedule-3-paragraph-5-6-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-b"><num>(b)</num><content><p>omit the “or” at the end of paragraph (a),</p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-c"><num>(c)</num><content><p><mod>in paragraph (b), for “restriction” substitute <quotedText>“
condition
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-d"><num>(d)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>vary a limitation so as to increase the period for which the approval is to have effect.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-5-7"><num>(7)</num><content><p><mod>In subsection (9), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><content><p>In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner agreed between the society and that person,”.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-3-paragraph-6-1"><num>(1)</num><content><p>Section 67 of FSMA 2000 (disciplinary measures: procedure and right to refer to Tribunal) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-3"><num>(3)</num><content><p><mod>In subsection (2A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><content><p>A warning notice about a proposal to limit the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (4), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-6"><num>(6)</num><content><p><mod>In subsection (5A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-7"><num>(7)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><content><p>A decision notice about limiting the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-8"><num>(8)</num><content><p><mod>In subsection (7), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-9-paragraph-14-1"><num>(1)</num><content><p>Schedule 11 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-2"><num>(2)</num><content><p>In paragraph 4(9C)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-3"><num>(3)</num><content><p><mod>In paragraph 7(7C)(c), for “in a manner agreed between the society and that person, he” substitute <quotedText>“
the person
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-4"><num>(4)</num><content><p>In paragraph 8(3B)(c), omit “, in a manner agreed between him and the society for the purpose,”.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><intro><p>In section 69 of FSMA 2000 (statement of policy), in subsection (1)—</p></intro><level class="para1" eId="schedule-3-paragraph-7-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restrictions” substitute <quotedText>“
, conditions or limitations
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-b"><num>(b)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “restrictions” substitute <quotedText>“
conditions
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-d"><num>(d)</num><content><p><mod>at the end of paragraph (c) insert<quotedText startQuote="“">; and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the period for which approvals under section 59 are to have effect as a result of a limitation under section 66.</p></content></level></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-7-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restrictions” substitute <quotedText>“
, conditions or limitations
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-7-b"><num>(b)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “restrictions” substitute <quotedText>“
conditions
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-3-paragraph-7-d"><num>(d)</num><content><p><mod>at the end of paragraph (c) insert<quotedText startQuote="“">; and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the period for which approvals under section 59 are to have effect as a result of a limitation under section 66.</p></content></level></quotedStructure></mod></p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 138A of FSMA 2000 (modification or waiver of rules), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="rule" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules made by either regulator under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 138D of FSMA 2000 (actions for damages), in subsection (5), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 140A of FSMA 2000 (interpretation), in the definition of “regulating provisions”—</p></intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-3-paragraph-10-a-i"><num>(i)</num><content><p>omit sub-paragraph (iii), and</p></content></level><level class="para2" eId="schedule-3-paragraph-10-a-ii"><num>(ii)</num><content><p>in sub-paragraph (iv), omit “64 or”;</p></content></level></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content><p>in paragraph (b), omit sub-paragraphs (ii) and (iii).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-3-paragraph-10-a-i"><num>(i)</num><content><p>omit sub-paragraph (iii), and</p></content></level><level class="para2" eId="schedule-3-paragraph-10-a-ii"><num>(ii)</num><content><p>in sub-paragraph (iv), omit “64 or”;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-3-paragraph-10-a-i"><num>(i)</num><content><p>omit sub-paragraph (iii), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-3-paragraph-10-a-ii"><num>(ii)</num><content><p>in sub-paragraph (iv), omit “64 or”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content><p>in paragraph (b), omit sub-paragraphs (ii) and (iii).</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (2)(g), in sub-paragraphs (ii) and (iii), for “relevant authorised person” substitute <quotedText>“
authorised person concerned
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 387 of FSMA 2000 (warning notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 388 of FSMA 2000 (decision notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 395 of FSMA 2000 (supervisory notices), in subsection (13), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>63ZC(4), (8) or (9)(b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-3-paragraph-15-1"><num>(1)</num><content><p>Section 415B of FSMA 2000 (consultation in relation to taking certain enforcement action) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-15-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-15-2-a"><num>(a)</num><content><p><mod>in paragraph (b), for “significant-influence” substitute <quotedText>“
relevant senior management
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-15-2-b"><num>(b)</num><content><p>omit the definitions appearing after that paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-15-3"><num>(3)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In subsection (4)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-arrangement">arrangement</term>” has the same meaning as in section 59;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the FCA is satisfied is a senior management function as defined in section 59ZA (whether or not it has been designated as such under section 59(6A) or (6B)).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-16" class="schProv1"><num>16</num><intro><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)—</p></intro><level class="para1" eId="schedule-3-paragraph-16-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-16-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-16-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-16-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-16-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-16-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-16-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-16-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-3-paragraph-16-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-3-paragraph-16-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-17" class="schProv1"><num><noteRef href="#key-6c864b8740b053ea21e5023af03183be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>17</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-17-a"><num>(a)</num><content><p>omit paragraph (b);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-3-paragraph-17-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-17-b-i"><num>(i)</num><content><p>after “section” insert “63ZD,”, and</p></content></level><level class="para2" eId="schedule-3-paragraph-17-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-3-paragraph-17-b-i"><num>(i)</num><content><p>after “section” insert “63ZD,”, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="schedule-3-paragraph-17-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-financial-services-and-markets-act-2000"><heading><i>Financial Services and Markets Act 2000</i></heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p><mod>In subsection (2), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><content><p>Section 59A of FSMA 2000 (specifying functions as controlled functions: supplementary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1)(a) and (b), for “significant-influence” substitute <quotedText>“
senior management
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>Senior management function” has the meaning given by section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><content><p>Section 63 of FSMA 2000 (withdrawal of approval) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1A)(a), for “significant-influence function” substitute <quotedText>“
relevant senior management function
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-3"><num>(3)</num><content><p><mod>For subsection (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><content><p>In subsection (1A) “<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 63A of FSMA 2000 (power to impose penalties), in subsection (2), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>P, when performing the function, is not acting in accordance with an approval given under section 59.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-3-paragraph-5-1"><num>(1)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-2"><num>(2)</num><content><p><mod>In subsection (3), for paragraph (ab) (and the “or” following it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>impose, for such period as it considers appropriate, any conditions in relation to any such approval which it considers appropriate;</p></content></level><level class="para1"><num>(ac)</num><content><p>limit the period for which any such approval is to have effect;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-3"><num>(3)</num><content><p><mod>In subsection (3A), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-4"><num>(4)</num><content><p><mod>In subsection (3B), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-5"><num>(5)</num><content><p><mod>In subsection (3C), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-6"><num>(6)</num><intro><p>In subsection (3D)—</p></intro><level class="para1" eId="schedule-3-paragraph-5-6-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-b"><num>(b)</num><content><p>omit the “or” at the end of paragraph (a),</p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-c"><num>(c)</num><content><p><mod>in paragraph (b), for “restriction” substitute <quotedText>“
condition
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-d"><num>(d)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>vary a limitation so as to increase the period for which the approval is to have effect.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-5-7"><num>(7)</num><content><p><mod>In subsection (9), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-3-paragraph-6-1"><num>(1)</num><content><p>Section 67 of FSMA 2000 (disciplinary measures: procedure and right to refer to Tribunal) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-3"><num>(3)</num><content><p><mod>In subsection (2A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><content><p>A warning notice about a proposal to limit the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (4), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-6"><num>(6)</num><content><p><mod>In subsection (5A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-7"><num>(7)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><content><p>A decision notice about limiting the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-8"><num>(8)</num><content><p><mod>In subsection (7), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><intro><p>In section 69 of FSMA 2000 (statement of policy), in subsection (1)—</p></intro><level class="para1" eId="schedule-3-paragraph-7-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restrictions” substitute <quotedText>“
, conditions or limitations
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-b"><num>(b)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “restrictions” substitute <quotedText>“
conditions
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-d"><num>(d)</num><content><p><mod>at the end of paragraph (c) insert<quotedText startQuote="“">; and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the period for which approvals under section 59 are to have effect as a result of a limitation under section 66.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 138A of FSMA 2000 (modification or waiver of rules), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="rule" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules made by either regulator under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 138D of FSMA 2000 (actions for damages), in subsection (5), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 140A of FSMA 2000 (interpretation), in the definition of “regulating provisions”—</p></intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-3-paragraph-10-a-i"><num>(i)</num><content><p>omit sub-paragraph (iii), and</p></content></level><level class="para2" eId="schedule-3-paragraph-10-a-ii"><num>(ii)</num><content><p>in sub-paragraph (iv), omit “64 or”;</p></content></level></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content><p>in paragraph (b), omit sub-paragraphs (ii) and (iii).</p></content></level></paragraph><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (2)(g), in sub-paragraphs (ii) and (iii), for “relevant authorised person” substitute <quotedText>“
authorised person concerned
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 387 of FSMA 2000 (warning notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 388 of FSMA 2000 (decision notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 395 of FSMA 2000 (supervisory notices), in subsection (13), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>63ZC(4), (8) or (9)(b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-3-paragraph-15-1"><num>(1)</num><content><p>Section 415B of FSMA 2000 (consultation in relation to taking certain enforcement action) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-15-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-15-2-a"><num>(a)</num><content><p><mod>in paragraph (b), for “significant-influence” substitute <quotedText>“
relevant senior management
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-15-2-b"><num>(b)</num><content><p>omit the definitions appearing after that paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-15-3"><num>(3)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In subsection (4)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-arrangement">arrangement</term>” has the same meaning as in section 59;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the FCA is satisfied is a senior management function as defined in section 59ZA (whether or not it has been designated as such under section 59(6A) or (6B)).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-16" class="schProv1"><num>16</num><intro><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)—</p></intro><level class="para1" eId="schedule-3-paragraph-16-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-16-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-16-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-16-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></paragraph><paragraph eId="schedule-3-paragraph-17" class="schProv1"><num><noteRef href="#key-6c864b8740b053ea21e5023af03183be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>17</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-financial-services-act-2012"><heading><i>Financial Services Act 2012</i></heading><paragraph eId="schedule-3-paragraph-18" class="schProv1"><num>18</num><content><p>In section 14 of the Financial Services Act 2012, omit subsection (4).</p></content></paragraph><paragraph eId="schedule-3-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-3-paragraph-19-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-19-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-2-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-19-2-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-2-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-2-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-19-3"><num>(3)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-3-a"><num>(a)</num><content><p>omit paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-19-3-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-3-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-4"><num>SCHEDULE 4<authorialNote class="referenceNote"><p>
Section 40</p></authorialNote></num><heading>The Payment Systems Regulator</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-introductory"><heading><i>Introductory</i></heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>In this Schedule—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>references to the functions of the Regulator are to functions conferred on it by or under this Part.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-constitution"><heading><i>Constitution</i></heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><intro><p>The board is to consist of the following members—</p></intro><level class="para1" eId="schedule-4-paragraph-2-2-a"><num>(a)</num><content><p>a member to chair it, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-b"><num>(b)</num><content><p>a member to be the Managing Director, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-c"><num>(c)</num><content><p>one or more other members appointed by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>The persons who may be appointed under sub-paragraph (2) include persons who are members of the FCA's governing body.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-5"><num>(5)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-6"><num>(6)</num><content><p>A person appointed under sub-paragraph (2)(c) is liable to removal from office by the FCA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-status"><heading><i>Status</i></heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>The Regulator is not to be regarded as exercising functions on behalf of the Crown.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>The officers and staff of the Regulator are not to be regarded as Crown servants.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-budget"><heading><i>Budget</i></heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p>The Regulator must adopt an annual budget which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>The budget must be adopted—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the budget for a financial year at any time after its adoption.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-4"><num>(4)</num><intro><p>Before adopting or varying a budget, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-4-4-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-4-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-5"><num>(5)</num><content><p>The Regulator must publish each budget, and each variation of a budget, in the way it considers appropriate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-arrangements-for-discharging-functions"><heading><i>Arrangements for discharging functions</i></heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-4-paragraph-5-1"><num>(1)</num><intro><p>The Regulator may make arrangements for any of its functions to be discharged by—</p></intro><level class="para1" eId="schedule-4-paragraph-5-1-a"><num>(a)</num><content><p>a committee, sub-committee, officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-1-b"><num>(b)</num><content><p>an officer or member of staff of the FCA.</p></content></level><wrapUp><p>This is subject to sub-paragraphs (2) to (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-5-2"><num>(2)</num><content><p>In exercising any functions within sub-paragraph (3), the Regulator must act through its board.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-5-3"><num>(3)</num><intro><p>The functions referred to in sub-paragraph (2) are—</p></intro><level class="para1" eId="schedule-4-paragraph-5-3-a"><num>(a)</num><content><p>giving general directions under section 54;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-b"><num>(b)</num><content><p>imposing generally-imposed requirements under section 55.</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-c"><num><ins class="first" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"><noteRef uk:name="commentary" href="#key-b7a3182a9a00b243c6eef3b3b3d589f6" class="commentary"/>(c)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making technical standards in accordance with section 97A; and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-d"><num><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">(d)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment </ins><abbr title="et cetera" xml:lang="la"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">etc.</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">) (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins class="last" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit) Regulations 2018.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-5-4"><num>(4)</num><content><p>The function of issuing general guidance may not be discharged by an officer or member of staff of the Regulator or of the FCA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-plan"><heading><i>Annual plan</i></heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><intro><p>The plan must be prepared—</p></intro><level class="para1" eId="schedule-4-paragraph-6-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the plan in respect of a financial year at any time after its preparation.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><intro><p>An annual plan in respect of a financial year must set out—</p></intro><level class="para1" eId="schedule-4-paragraph-6-4-a"><num>(a)</num><content><p>the aims of the Regulator for the year,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-b"><num>(b)</num><content><p>how the extent to which each of those aims is met is to be determined,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-c"><num>(c)</num><content><p>the relative priorities of each of those aims, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-d"><num>(d)</num><content><p>how its resources are to be allocated among the activities to be carried on in connection with the discharge of its functions.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p>In sub-paragraph (4) references to aims for a financial year include aims for a longer period that includes that year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-6"><num>(6)</num><intro><p>Before preparing or varying an annual plan, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-6-6-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-6-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-7"><num>(7)</num><content><p>The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-report"><heading><i>Annual report</i></heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><content><p>At least once a year, the Regulator must make a report to the FCA in relation to the discharge of its functions.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><intro><p>The report must—</p></intro><level class="para1" eId="schedule-4-paragraph-7-2-a"><num>(a)</num><content><p>set out the extent to which the Regulator has met its aims and priorities for the period covered by the report,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-b"><num>(b)</num><content><p>set out the extent to which the Regulator has advanced its payment systems objectives,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-ba"><num><ins class="first" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b"><noteRef uk:name="commentary" href="#key-d8ba6dc64d472e2f5694c994eaa1726b" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out any engagement with a statutory panel established under section 103(3),</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-bb"><num><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out how the Regulator has complied with the statement of policy on panel appointments prepared under section 104I in relation to the process for making appointments and the matters considered in determining who is appointed,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-c"><num>(c)</num><content><p>include a copy of its latest accounts, and</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-d"><num>(d)</num><content><p>comply with any requirement specified in rules made by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-3"><num>(3)</num><content><p>The Regulator must publish each report in the way it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-4"><num>(4)</num><content><p>Nothing in this paragraph requires the Regulator to make a report at any time in the period of 12 months beginning with its establishment.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-5"><num>(5)</num><intro><p>The Treasury may—</p></intro><level class="para1" eId="schedule-4-paragraph-7-5-a"><num>(a)</num><content><p>require the Regulator to comply with any provision of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or</p></content></level><level class="para1" eId="schedule-4-paragraph-7-5-b"><num>(b)</num><content><p>direct that any provision of that Act about accounts and their audit is to apply to the Regulator with such modifications as are specified in the direction, whether or not the provision would otherwise apply to it.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-7"><num>(7)</num><content><p>Proceedings under sub-paragraph (6) may be brought only by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-8"><num>(8)</num><content><p>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).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-other-reports"><heading><ins class="first" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8"><noteRef uk:name="commentary" href="#key-db76788f35b2dee95bce97d608ad08e8" class="commentary"/>Other reports</ins></heading><paragraph eId="schedule-4-paragraph-7A" class="schProv1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">7A</ins></num><subparagraph eId="schedule-4-paragraph-7A-1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(1)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-2"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-2-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the Regulator’s functions, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-2-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">other available information is not sufficient to meet that purpose.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-3"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(3)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-4"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(4)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-5"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(5)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may not—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-5-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require a report to be published more than once in each quarter;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-5-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require the publication of information that is confidential information as defined by section 91(2).</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-6"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(6)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must consult the Regulator before giving a direction under this paragraph.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-7"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(7)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-8"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(8)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-8-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">lay before Parliament a copy of a direction given under this paragraph, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-8-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-9"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(9)</ins></num><content><p><ins class="last" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may be varied or revoked by the giving of a further direction.</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-audit-of-accounts"><heading><i>Audit of accounts</i></heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-4-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-2"><num>(2)</num><intro><p>The Comptroller and Auditor General must—</p></intro><level class="para1" eId="schedule-4-paragraph-8-2-a"><num>(a)</num><content><p>examine, certify and report on accounts received under this paragraph, and</p></content></level><level class="para1" eId="schedule-4-paragraph-8-2-b"><num>(b)</num><content><p>send a copy of the certified accounts and the report to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-8-3"><num>(3)</num><content><p>The Treasury must lay the copy of the certified accounts and the report before Parliament.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-4"><num>(4)</num><content><p>The Regulator must send a copy of the certified accounts and the report to the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “<term refersTo="#term-annual-accounts" eId="term-annual-accounts">annual accounts</term>” has the meaning given by section 471 of the Companies Act 2006.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-funding"><heading><i>Funding <ins class="first last" ukl:ChangeId="key-eafdb0dcff0387e7f999fe6dba789f07-1544449698270" ukl:CommentaryRef="key-eafdb0dcff0387e7f999fe6dba789f07"><noteRef uk:name="commentary" href="#key-eafdb0dcff0387e7f999fe6dba789f07" class="commentary"/>(participants in regulated payment systems)</ins> </i></heading><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><intro><p>The purposes are—</p></intro><level class="para1" eId="schedule-4-paragraph-9-2-a"><num>(a)</num><content><p>meeting the relevant costs (see sub-paragraph (3)), and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-2-b"><num>(b)</num><content><p>enabling the Regulator to maintain adequate reserves.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-relevant-costs" eId="term-the-relevant-costs">the relevant costs</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-9-3-a"><num>(a)</num><content><p>the expenses incurred, or expected to be incurred, by the Regulator in connection with the discharge of its functions,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-b"><num>(b)</num><content><p>the expenses incurred by the FCA in establishing the Regulator,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-c"><num>(c)</num><content><p>any other expenses incurred by the FCA in connection with the discharge of its functions under this Part, and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-d"><num>(d)</num><content><p>any expenses incurred, or expected to be incurred, by the FCA in connection with the discharge of the Regulator's functions by an officer or member of staff of the FCA under arrangements made under paragraph 5.</p></content></level><wrapUp><p>For the purposes of paragraph (b) it does not matter when the expenses were incurred.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p>Before making any rules under sub-paragraph (1) the FCA must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-5"><num>(5)</num><content><p>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”).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-6"><num>(6)</num><intro><p>The FCA must pay to the Regulator the amounts that it receives under the rules, apart from the following amounts (which it may keep)—</p></intro><level class="para1" eId="schedule-4-paragraph-9-6-a"><num>(a)</num><content><p>amounts in respect of expenses falling within sub-paragraph (3)(b) to (d);</p></content></level><level class="para1" eId="schedule-4-paragraph-9-6-b"><num>(b)</num><content><p>amounts in respect of its collection costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the rules.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-8"><num>(8)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-fundingn1"><heading><i><ins class="first" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e"><noteRef uk:name="commentary" href="#key-478faf7e4cd2756f6e2e7c88af07f23e" class="commentary"/>Funding (regulated persons)</ins></i></heading><paragraph eId="schedule-4-paragraph-9A" class="schProv1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">9A</ins></num><subparagraph eId="schedule-4-paragraph-9A-1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(1)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-2"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(2)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-3"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(3)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">Before making any rules under this paragraph, the Regulator must consult the FCA and the Treasury.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-4"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(4)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">In this paragraph “specified” means specified in the rules.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-5"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(5)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-6"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(6)</ins></num><intro><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">The sections referred to in sub-paragraph (5) are—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-9A-6-a"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(a)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 137T (general supplementary powers) as if the reference in paragraph (a) to authorised person were a reference to regulated persons;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-b"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(b)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138A (modification or waiver of rules) as if the reference to the regulator’s objectives were a reference to the payment systems objectives of the Regulator (within the meaning of section 49);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-c"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(c)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138B (publication of directions under section 138A);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-d"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(d)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138E (limits on effects of contravening rules), ignoring subsection (3);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-e"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(e)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138F (notification of rules), ignoring subsection (2);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-f"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(f)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138G (rule-making instruments);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-g"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(g)</ins></num><content><p><ins class="last" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138H (verification of rules).</ins></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-penalty-receipts"><heading><i>Penalty receipts</i></heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-4-paragraph-10-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-3"><num>(3)</num><intro><p>The Regulator's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—</p></intro><level class="para1" eId="schedule-4-paragraph-10-3-a"><num>(a)</num><content><p>the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-3-b"><num>(b)</num><content><p>the recovery of penalties imposed under section 73.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-4"><num>(4)</num><intro><p>For the purposes of sub-paragraph (3) the Regulator's enforcement powers are—</p></intro><level class="para1" eId="schedule-4-paragraph-10-4-a"><num>(a)</num><content><p>its powers under sections 72 to 75;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-b"><num>(b)</num><content><p>its powers under any other enactment specified by the Treasury by order;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-c"><num>(c)</num><content><p>its powers in relation to the investigation of relevant offences;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-d"><num>(d)</num><content><p>its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-5"><num>(5)</num><intro><p>In sub-paragraph (4) “<term refersTo="#term-relevant-offences" eId="term-relevant-offences">relevant offences</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-10-5-a"><num>(a)</num><content><p>offences under this Part;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-5-b"><num>(b)</num><content><p>any other offences specified by the Treasury by order.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-6"><num>(6)</num><content><p>The Treasury may give directions to the Regulator as to how it is to comply with its duty under sub-paragraph (1).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-7"><num>(7)</num><intro><p>The directions may in particular—</p></intro><level class="para1" eId="schedule-4-paragraph-10-7-a"><num>(a)</num><content><p>specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in sub-paragraph (3),</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-b"><num>(b)</num><content><p>relate to the calculation and timing of the deduction in respect of the Regulator's enforcement costs, and</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-c"><num>(c)</num><content><p>specify the time when any payment is required to be made to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-8"><num>(8)</num><intro><p>The directions may also require the Regulator to provide the Treasury at specified times with specified information relating to—</p></intro><level class="para1" eId="schedule-4-paragraph-10-8-a"><num>(a)</num><content><p>penalties that the Regulator has imposed under section 73, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-8-b"><num>(b)</num><content><p>the Regulator's enforcement costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-9"><num>(9)</num><content><p>The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-4-paragraph-11-1"><num>(1)</num><content><p>The Regulator must prepare and operate a scheme (“<term refersTo="#term-the-financial-penalty-scheme" eId="term-the-financial-penalty-scheme">the financial penalty scheme</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-2"><num>(2)</num><content><p>The financial penalty scheme may, in particular, make different provision with respect to different classes of participant.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-4"><num>(4)</num><content><p>Up-to-date details of the financial penalty scheme must be set out in a document (the “scheme details”).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-3"><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposals may be made to the Regulator within a specified time.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-4"><num>(4)</num><content><p>Before making the scheme, the Regulator must have regard to any representations made to it in accordance with sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-5"><num>(5)</num><intro><p>If the Regulator makes the proposed scheme, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-5-a"><num>(a)</num><content><p>the representations made to it in accordance with sub-paragraph (3), and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-7"><num>(7)</num><content><p>The Regulator must, without delay, give the Treasury a copy of any scheme details published by it.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-8"><num>(8)</num><intro><p>The Regulator may charge a reasonable fee for providing a person with a copy of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-8-a"><num>(a)</num><content><p>a draft published under sub-paragraph (2);</p></content></level><level class="para1" eId="schedule-4-paragraph-12-8-b"><num>(b)</num><content><p>scheme details.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-9"><num>(9)</num><content><p>Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-records"><heading><i>Records</i></heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><intro><p>The Regulator must maintain satisfactory arrangements for—</p></intro><level class="para1" eId="schedule-4-paragraph-13-a"><num>(a)</num><content><p>recording decisions made in the exercise of its functions, and</p></content></level><level class="para1" eId="schedule-4-paragraph-13-b"><num>(b)</num><content><p>the safe-keeping of those records which it considers ought to be preserved.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-exemption-from-liability-in-damages"><heading><i>Exemption from liability in damages</i></heading><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-4-paragraph-14-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-4-paragraph-14-1-a"><num>(a)</num><content><p>the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-b"><num>(b)</num><content><p>any person (“P”) who is, or is acting as, an officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-c"><num>(c)</num><content><p>any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-4"><num>(4)</num><intro><p>Sub-paragraph (1) does not apply—</p></intro><level class="para1" eId="schedule-4-paragraph-14-4-a"><num>(a)</num><content><p>if the act or omission is shown to have been in bad faith, or</p></content></level><level class="para1" eId="schedule-4-paragraph-14-4-b"><num>(b)</num><content><p>so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-engagement-with-parliamentary-committees"><heading><ins class="first" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8"><noteRef uk:name="commentary" href="#key-7fc4390698beedd582fc19467cf810d8" class="commentary"/>Engagement with Parliamentary Committees</ins></heading><paragraph eId="schedule-4-paragraph-14A" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14A</ins></num><subparagraph eId="schedule-4-paragraph-14A-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where the Regulator issues a relevant consultation.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">For the purposes of this paragraph the Regulator issues a relevant consultation if it—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-2-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes proposed generally applicable requirements under section 104,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes other proposals about the exercise of any of its general functions.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-4-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">advance the Regulator’s payment systems objectives,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">demonstrate that the Regulator has had regard to the regulatory principles in section 53 when preparing the proposals, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">engage with matters to which the Regulator must have regard under regulations made under section 102B.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-6"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(6)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the relevant Parliamentary Committees are references to—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-6-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Treasury Committee of the House of Commons,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-6-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Committee of the House of Lords which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-b-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by that House for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-b-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes, and</ins></p></content></level></level><level class="para1" eId="schedule-4-paragraph-14A-6-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Joint Committee of both Houses which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-c-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by those Houses for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-c-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-7"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(7)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the Treasury Committee of the House of Commons—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-7-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the name of that Committee is changed, are references to that Committee by its new name, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-7-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as reference to the Committee by which the functions are exercisable.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-8"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(8)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">Any question arising under sub-paragraph (7) is to be determined by the Speaker of the House of Commons.</ins></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14B" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14B</ins></num><subparagraph eId="schedule-4-paragraph-14B-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14B-1-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Regulator issues a public consultation, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14B-1-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the Regulator representations in response to the consultation.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14B-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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).</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The Regulator must give to the chair of the Committee concerned a written response to the representations.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-freedom-of-information"><heading><i>Freedom of information</i></heading><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-equality"><heading><i>Equality</i></heading><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “<i>Industry, business, finance <abbr title="et cetera" xml:lang="la">etc.</abbr></i>”, at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-introductory"><heading><i>Introductory</i></heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>In this Schedule—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>references to the functions of the Regulator are to functions conferred on it by or under this Part.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-constitution"><heading><i>Constitution</i></heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><intro><p>The board is to consist of the following members—</p></intro><level class="para1" eId="schedule-4-paragraph-2-2-a"><num>(a)</num><content><p>a member to chair it, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-b"><num>(b)</num><content><p>a member to be the Managing Director, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-c"><num>(c)</num><content><p>one or more other members appointed by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>The persons who may be appointed under sub-paragraph (2) include persons who are members of the FCA's governing body.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-5"><num>(5)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-6"><num>(6)</num><content><p>A person appointed under sub-paragraph (2)(c) is liable to removal from office by the FCA.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-status"><heading><i>Status</i></heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>The Regulator is not to be regarded as exercising functions on behalf of the Crown.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>The officers and staff of the Regulator are not to be regarded as Crown servants.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-budget"><heading><i>Budget</i></heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p>The Regulator must adopt an annual budget which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>The budget must be adopted—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the budget for a financial year at any time after its adoption.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-4"><num>(4)</num><intro><p>Before adopting or varying a budget, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-4-4-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-4-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-5"><num>(5)</num><content><p>The Regulator must publish each budget, and each variation of a budget, in the way it considers appropriate.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-arrangements-for-discharging-functions"><heading><i>Arrangements for discharging functions</i></heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-4-paragraph-5-1"><num>(1)</num><intro><p>The Regulator may make arrangements for any of its functions to be discharged by—</p></intro><level class="para1" eId="schedule-4-paragraph-5-1-a"><num>(a)</num><content><p>a committee, sub-committee, officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-1-b"><num>(b)</num><content><p>an officer or member of staff of the FCA.</p></content></level><wrapUp><p>This is subject to sub-paragraphs (2) to (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-5-2"><num>(2)</num><content><p>In exercising any functions within sub-paragraph (3), the Regulator must act through its board.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-5-3"><num>(3)</num><intro><p>The functions referred to in sub-paragraph (2) are—</p></intro><level class="para1" eId="schedule-4-paragraph-5-3-a"><num>(a)</num><content><p>giving general directions under section 54;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-b"><num>(b)</num><content><p>imposing generally-imposed requirements under section 55.</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-c"><num><ins class="first" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"><noteRef uk:name="commentary" href="#key-b7a3182a9a00b243c6eef3b3b3d589f6" class="commentary"/>(c)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making technical standards in accordance with section 97A; and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-d"><num><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">(d)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment </ins><abbr title="et cetera" xml:lang="la"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">etc.</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">) (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins class="last" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit) Regulations 2018.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-5-4"><num>(4)</num><content><p>The function of issuing general guidance may not be discharged by an officer or member of staff of the Regulator or of the FCA.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-plan"><heading><i>Annual plan</i></heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><intro><p>The plan must be prepared—</p></intro><level class="para1" eId="schedule-4-paragraph-6-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the plan in respect of a financial year at any time after its preparation.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><intro><p>An annual plan in respect of a financial year must set out—</p></intro><level class="para1" eId="schedule-4-paragraph-6-4-a"><num>(a)</num><content><p>the aims of the Regulator for the year,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-b"><num>(b)</num><content><p>how the extent to which each of those aims is met is to be determined,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-c"><num>(c)</num><content><p>the relative priorities of each of those aims, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-d"><num>(d)</num><content><p>how its resources are to be allocated among the activities to be carried on in connection with the discharge of its functions.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p>In sub-paragraph (4) references to aims for a financial year include aims for a longer period that includes that year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-6"><num>(6)</num><intro><p>Before preparing or varying an annual plan, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-6-6-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-6-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-7"><num>(7)</num><content><p>The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-report"><heading><i>Annual report</i></heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><content><p>At least once a year, the Regulator must make a report to the FCA in relation to the discharge of its functions.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><intro><p>The report must—</p></intro><level class="para1" eId="schedule-4-paragraph-7-2-a"><num>(a)</num><content><p>set out the extent to which the Regulator has met its aims and priorities for the period covered by the report,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-b"><num>(b)</num><content><p>set out the extent to which the Regulator has advanced its payment systems objectives,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-ba"><num><ins class="first" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b"><noteRef uk:name="commentary" href="#key-d8ba6dc64d472e2f5694c994eaa1726b" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out any engagement with a statutory panel established under section 103(3),</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-bb"><num><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out how the Regulator has complied with the statement of policy on panel appointments prepared under section 104I in relation to the process for making appointments and the matters considered in determining who is appointed,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-c"><num>(c)</num><content><p>include a copy of its latest accounts, and</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-d"><num>(d)</num><content><p>comply with any requirement specified in rules made by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-3"><num>(3)</num><content><p>The Regulator must publish each report in the way it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-4"><num>(4)</num><content><p>Nothing in this paragraph requires the Regulator to make a report at any time in the period of 12 months beginning with its establishment.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-5"><num>(5)</num><intro><p>The Treasury may—</p></intro><level class="para1" eId="schedule-4-paragraph-7-5-a"><num>(a)</num><content><p>require the Regulator to comply with any provision of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or</p></content></level><level class="para1" eId="schedule-4-paragraph-7-5-b"><num>(b)</num><content><p>direct that any provision of that Act about accounts and their audit is to apply to the Regulator with such modifications as are specified in the direction, whether or not the provision would otherwise apply to it.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-7"><num>(7)</num><content><p>Proceedings under sub-paragraph (6) may be brought only by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-8"><num>(8)</num><content><p>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).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-other-reports"><heading><ins class="first" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8"><noteRef uk:name="commentary" href="#key-db76788f35b2dee95bce97d608ad08e8" class="commentary"/>Other reports</ins></heading><paragraph eId="schedule-4-paragraph-7A" class="schProv1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">7A</ins></num><subparagraph eId="schedule-4-paragraph-7A-1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(1)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-2"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-2-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the Regulator’s functions, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-2-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">other available information is not sufficient to meet that purpose.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-3"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(3)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-4"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(4)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-5"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(5)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may not—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-5-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require a report to be published more than once in each quarter;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-5-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require the publication of information that is confidential information as defined by section 91(2).</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-6"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(6)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must consult the Regulator before giving a direction under this paragraph.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-7"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(7)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-8"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(8)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-8-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">lay before Parliament a copy of a direction given under this paragraph, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-8-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-9"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(9)</ins></num><content><p><ins class="last" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may be varied or revoked by the giving of a further direction.</ins></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-7A" class="schProv1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">7A</ins></num><subparagraph eId="schedule-4-paragraph-7A-1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(1)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-2"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-2-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the Regulator’s functions, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-2-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">other available information is not sufficient to meet that purpose.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-3"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(3)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-4"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(4)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-5"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(5)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may not—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-5-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require a report to be published more than once in each quarter;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-5-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require the publication of information that is confidential information as defined by section 91(2).</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-6"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(6)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must consult the Regulator before giving a direction under this paragraph.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-7"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(7)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-8"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(8)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-8-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">lay before Parliament a copy of a direction given under this paragraph, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-8-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-9"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(9)</ins></num><content><p><ins class="last" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may be varied or revoked by the giving of a further direction.</ins></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-audit-of-accounts"><heading><i>Audit of accounts</i></heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-4-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-2"><num>(2)</num><intro><p>The Comptroller and Auditor General must—</p></intro><level class="para1" eId="schedule-4-paragraph-8-2-a"><num>(a)</num><content><p>examine, certify and report on accounts received under this paragraph, and</p></content></level><level class="para1" eId="schedule-4-paragraph-8-2-b"><num>(b)</num><content><p>send a copy of the certified accounts and the report to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-8-3"><num>(3)</num><content><p>The Treasury must lay the copy of the certified accounts and the report before Parliament.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-4"><num>(4)</num><content><p>The Regulator must send a copy of the certified accounts and the report to the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “<term refersTo="#term-annual-accounts" eId="term-annual-accounts">annual accounts</term>” has the meaning given by section 471 of the Companies Act 2006.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-funding"><heading><i>Funding <ins class="first last" ukl:ChangeId="key-eafdb0dcff0387e7f999fe6dba789f07-1544449698270" ukl:CommentaryRef="key-eafdb0dcff0387e7f999fe6dba789f07"><noteRef uk:name="commentary" href="#key-eafdb0dcff0387e7f999fe6dba789f07" class="commentary"/>(participants in regulated payment systems)</ins> </i></heading><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><intro><p>The purposes are—</p></intro><level class="para1" eId="schedule-4-paragraph-9-2-a"><num>(a)</num><content><p>meeting the relevant costs (see sub-paragraph (3)), and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-2-b"><num>(b)</num><content><p>enabling the Regulator to maintain adequate reserves.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-relevant-costs" eId="term-the-relevant-costs">the relevant costs</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-9-3-a"><num>(a)</num><content><p>the expenses incurred, or expected to be incurred, by the Regulator in connection with the discharge of its functions,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-b"><num>(b)</num><content><p>the expenses incurred by the FCA in establishing the Regulator,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-c"><num>(c)</num><content><p>any other expenses incurred by the FCA in connection with the discharge of its functions under this Part, and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-d"><num>(d)</num><content><p>any expenses incurred, or expected to be incurred, by the FCA in connection with the discharge of the Regulator's functions by an officer or member of staff of the FCA under arrangements made under paragraph 5.</p></content></level><wrapUp><p>For the purposes of paragraph (b) it does not matter when the expenses were incurred.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p>Before making any rules under sub-paragraph (1) the FCA must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-5"><num>(5)</num><content><p>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”).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-6"><num>(6)</num><intro><p>The FCA must pay to the Regulator the amounts that it receives under the rules, apart from the following amounts (which it may keep)—</p></intro><level class="para1" eId="schedule-4-paragraph-9-6-a"><num>(a)</num><content><p>amounts in respect of expenses falling within sub-paragraph (3)(b) to (d);</p></content></level><level class="para1" eId="schedule-4-paragraph-9-6-b"><num>(b)</num><content><p>amounts in respect of its collection costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the rules.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-8"><num>(8)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">payment service provider</term>”, in relation to a payment system, has the meaning given by section 42(5);</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><intro><p>The Regulator must maintain satisfactory arrangements for—</p></intro><level class="para1" eId="schedule-4-paragraph-13-a"><num>(a)</num><content><p>recording decisions made in the exercise of its functions, and</p></content></level><level class="para1" eId="schedule-4-paragraph-13-b"><num>(b)</num><content><p>the safe-keeping of those records which it considers ought to be preserved.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-13-a"><num>(a)</num><content><p>recording decisions made in the exercise of its functions, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-13-b"><num>(b)</num><content><p>the safe-keeping of those records which it considers ought to be preserved.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “<i>Industry, business, finance <abbr title="et cetera" xml:lang="la">etc.</abbr></i>”, at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>Section 7 (the funding limit) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>subject to subsection (3A), the principal of, and interest accrued on, sums deposited with the society or any subsidiary undertaking of the society by a small business (see subsection (10));</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in the absence of subsection (3)(aa), be the value of X on that day.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6ZA)</num><content><p>Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively presumed for the purposes of this section to be a small business.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><content><p><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-small-business">small business</term>” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant financial year of less than £1,000,000.</p></content></subsection><subsection><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1"><num>(a)</num><content><p>the “<term refersTo="#term-relevant-financial-year">relevant financial year</term>”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to a building society, means the last financial year ending before that day;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-turnover">turnover</term>”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;</p></content></level><level class="para1"><num>(c)</num><content><p>in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency, calculated as at the last day of that year.</p></content></level></subsection><subsection><num>(12)</num><content><p>The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10) and (11)(c).</p></content></subsection><subsection><num>(13)</num><content><p>A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>Section 76 (summary financial statement for members and depositors) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p><mod>After subsection (8A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8AA)</num><intro><p>The society shall also—</p></intro><level class="para1"><num>(a)</num><content><p>publish the summary financial statement and (where applicable) the auditor's report on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>ensure that the statement and (where applicable) the report may be accessed on the web site until the publication of the next summary financial statement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (8D) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8E)</num><content><p>If, at any time during the period beginning with the publication of the summary financial statement and ending with the publication of the next summary financial statement, an individual for the first time subscribes for shares in the society, the society shall at that time notify the individual of the information in subsection (8C)(c)(i) to (iii).</p></content></subsection><subsection><num>(8F)</num><content><p>In a case where subsection (8E) applies, the society is not required under section 115B (right to hard copy version) to send the individual a version of the summary financial statement or (where applicable) the auditor's report in hard copy form (within the meaning of that section).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>Omit subsections (9) to (9E).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (11), for “subsection (9)” substitute <quotedText>“
subsection (8AA) or (8E)
”</quotedText>.</mod></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p>Section 117 (financial year of building societies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><content><p>A building society's financial years (apart from its final financial year) are determined according to its year-end date in each calendar year.</p><p>For provision about a building society's final financial year, see subsection (1G).</p></content></subsection><subsection><num>(1A)</num><intro><p>The year-end date of a building society established before 25th August 1894 is—</p></intro><level class="para1"><num>(a)</num><content><p>the date up to which, as at 1st January 1987, the accounts of the society were annually made up, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the society has, at any time before the day on which subsection (1) comes into force (“<term refersTo="#term-the-relevant-day">the relevant day</term>”), altered its financial year in exercise of a power within subsection (1B), 31st December.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>The powers referred to in subsection (1A)(b) are—</p></intro><level class="para1"><num>(a)</num><content><p>the power conferred by section 70(2) of the Building Societies Act 1960,</p></content></level><level class="para1"><num>(b)</num><content><p>the power conferred by section 128(2) of the Building Societies Act 1962, and</p></content></level><level class="para1"><num>(c)</num><content><p>the power conferred by subsection (3) of this section (as it had effect immediately before the relevant day).</p></content></level></subsection><subsection><num>(1C)</num><content><p>The year-end date of a building society established on or after 25th August 1894 and before the relevant day is 31st December.</p></content></subsection><subsection><num>(1D)</num><content><p>The year-end date of a building society established on or after the relevant day is the last day of the month in which the anniversary of its establishment falls.</p></content></subsection><subsection><num>(1E)</num><content><p>The financial year of a building society established before the relevant day is the period of 12 months ending with the year-end date of the society (but see subsection (1G)).</p></content></subsection><subsection><num>(1F)</num><intro><p>In the case of a building society established on or after the relevant day—</p></intro><level class="para1"><num>(a)</num><content><p>the initial financial year of the society shall be the period of more than 6 months, but not more than 18 months, beginning with the date of its establishment and ending with its year-end date, and</p></content></level><level class="para1"><num>(b)</num><content><p>its subsequent financial years are successive periods of 12 months beginning immediately after the end of the previous financial year and ending with its year-end date (but see subsection (1G)).</p></content></level></subsection><subsection><num>(1G)</num><content><p>The final financial year of a building society is a period of less than 12 months that begins immediately after the end of the previous financial year and ends with the date as at which the society makes up its final accounts.</p></content></subsection><subsection><num>(1H)</num><content><p>This section has effect subject to section 117A (alteration of financial year).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><content><p>Omit subsections (2) and (3).</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><mod>In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/860), in paragraph 3, for “the modification required by this article” substitute <quotedText>“
the modifications required by this article and by section 7(3)(aa)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><intro><p>In consequence of the amendments made by paragraph 6—</p></intro><level class="para1" eId="schedule-9-paragraph-7-a"><num>(a)</num><content><p><mod>in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute <quotedText>“
subsection (8) of section 76 extends
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-7-b"><num>(b)</num><content><p>in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-9-paragraph-7-a"><num>(a)</num><content><p><mod>in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute <quotedText>“
subsection (8) of section 76 extends
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-9-paragraph-7-b"><num>(b)</num><content><p>in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p><mod>After section 117 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>117A</num><heading>Alteration of financial year</heading><subsection><num>(1)</num><content><p>A building society may by notice given to the FCA specify a new year-end date.</p></content></subsection><subsection><num>(2)</num><intro><p>A notice given under subsection (1) has effect in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>the financial year in which the notice is given (“the current financial year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>subsequent financial years.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The notice must state whether the current financial year—</p></intro><level class="para1"><num>(a)</num><content><p>is to be shortened, so as to come to an end on the first occasion on which the new year-end date falls or fell after the beginning of the current financial year, or</p></content></level><level class="para1"><num>(b)</num><content><p>is to be extended, so as to come to an end on the second occasion on which that date falls or fell after the beginning of the current financial year.</p></content></level></subsection><subsection><num>(4)</num><content><p>A notice extending a building society's financial year is not effective if given less than 5 years after the end of an earlier financial year of the society that was extended under this section.</p></content></subsection><subsection><num>(5)</num><content><p>A financial year of a building society may not be extended so as to exceed 18 months and a notice under subsection (1) is ineffective if the current financial year as extended in accordance with the notice would exceed that limit.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>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.</p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-fundingn1"><heading><i><ins class="first" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e"><noteRef uk:name="commentary" href="#key-478faf7e4cd2756f6e2e7c88af07f23e" class="commentary"/>Funding (regulated persons)</ins></i></heading><paragraph eId="schedule-4-paragraph-9A" class="schProv1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">9A</ins></num><subparagraph eId="schedule-4-paragraph-9A-1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(1)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-2"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(2)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-3"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(3)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">Before making any rules under this paragraph, the Regulator must consult the FCA and the Treasury.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-4"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(4)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">In this paragraph “specified” means specified in the rules.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-5"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(5)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-6"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(6)</ins></num><intro><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">The sections referred to in sub-paragraph (5) are—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-9A-6-a"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(a)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 137T (general supplementary powers) as if the reference in paragraph (a) to authorised person were a reference to regulated persons;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-b"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(b)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138A (modification or waiver of rules) as if the reference to the regulator’s objectives were a reference to the payment systems objectives of the Regulator (within the meaning of section 49);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-c"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(c)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138B (publication of directions under section 138A);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-d"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(d)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138E (limits on effects of contravening rules), ignoring subsection (3);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-e"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(e)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138F (notification of rules), ignoring subsection (2);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-f"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(f)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138G (rule-making instruments);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-g"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(g)</ins></num><content><p><ins class="last" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138H (verification of rules).</ins></p></content></level></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-9A" class="schProv1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">9A</ins></num><subparagraph eId="schedule-4-paragraph-9A-1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(1)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-2"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(2)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-3"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(3)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">Before making any rules under this paragraph, the Regulator must consult the FCA and the Treasury.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-4"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(4)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">In this paragraph “specified” means specified in the rules.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-5"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(5)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-6"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(6)</ins></num><intro><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">The sections referred to in sub-paragraph (5) are—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-9A-6-a"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(a)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 137T (general supplementary powers) as if the reference in paragraph (a) to authorised person were a reference to regulated persons;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-b"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(b)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138A (modification or waiver of rules) as if the reference to the regulator’s objectives were a reference to the payment systems objectives of the Regulator (within the meaning of section 49);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-c"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(c)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138B (publication of directions under section 138A);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-d"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(d)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138E (limits on effects of contravening rules), ignoring subsection (3);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-e"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(e)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138F (notification of rules), ignoring subsection (2);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-f"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(f)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138G (rule-making instruments);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-g"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(g)</ins></num><content><p><ins class="last" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138H (verification of rules).</ins></p></content></level></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-penalty-receipts"><heading><i>Penalty receipts</i></heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-4-paragraph-10-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-3"><num>(3)</num><intro><p>The Regulator's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—</p></intro><level class="para1" eId="schedule-4-paragraph-10-3-a"><num>(a)</num><content><p>the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-3-b"><num>(b)</num><content><p>the recovery of penalties imposed under section 73.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-4"><num>(4)</num><intro><p>For the purposes of sub-paragraph (3) the Regulator's enforcement powers are—</p></intro><level class="para1" eId="schedule-4-paragraph-10-4-a"><num>(a)</num><content><p>its powers under sections 72 to 75;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-b"><num>(b)</num><content><p>its powers under any other enactment specified by the Treasury by order;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-c"><num>(c)</num><content><p>its powers in relation to the investigation of relevant offences;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-d"><num>(d)</num><content><p>its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-5"><num>(5)</num><intro><p>In sub-paragraph (4) “<term refersTo="#term-relevant-offences" eId="term-relevant-offences">relevant offences</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-10-5-a"><num>(a)</num><content><p>offences under this Part;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-5-b"><num>(b)</num><content><p>any other offences specified by the Treasury by order.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-6"><num>(6)</num><content><p>The Treasury may give directions to the Regulator as to how it is to comply with its duty under sub-paragraph (1).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-7"><num>(7)</num><intro><p>The directions may in particular—</p></intro><level class="para1" eId="schedule-4-paragraph-10-7-a"><num>(a)</num><content><p>specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in sub-paragraph (3),</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-b"><num>(b)</num><content><p>relate to the calculation and timing of the deduction in respect of the Regulator's enforcement costs, and</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-c"><num>(c)</num><content><p>specify the time when any payment is required to be made to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-8"><num>(8)</num><intro><p>The directions may also require the Regulator to provide the Treasury at specified times with specified information relating to—</p></intro><level class="para1" eId="schedule-4-paragraph-10-8-a"><num>(a)</num><content><p>penalties that the Regulator has imposed under section 73, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-8-b"><num>(b)</num><content><p>the Regulator's enforcement costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-9"><num>(9)</num><content><p>The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-4-paragraph-11-1"><num>(1)</num><content><p>The Regulator must prepare and operate a scheme (“<term refersTo="#term-the-financial-penalty-scheme" eId="term-the-financial-penalty-scheme">the financial penalty scheme</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-2"><num>(2)</num><content><p>The financial penalty scheme may, in particular, make different provision with respect to different classes of participant.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-4"><num>(4)</num><content><p>Up-to-date details of the financial penalty scheme must be set out in a document (the “scheme details”).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-3"><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposals may be made to the Regulator within a specified time.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-4"><num>(4)</num><content><p>Before making the scheme, the Regulator must have regard to any representations made to it in accordance with sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-5"><num>(5)</num><intro><p>If the Regulator makes the proposed scheme, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-5-a"><num>(a)</num><content><p>the representations made to it in accordance with sub-paragraph (3), and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-7"><num>(7)</num><content><p>The Regulator must, without delay, give the Treasury a copy of any scheme details published by it.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-8"><num>(8)</num><intro><p>The Regulator may charge a reasonable fee for providing a person with a copy of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-8-a"><num>(a)</num><content><p>a draft published under sub-paragraph (2);</p></content></level><level class="para1" eId="schedule-4-paragraph-12-8-b"><num>(b)</num><content><p>scheme details.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-9"><num>(9)</num><content><p>Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-records"><heading><i>Records</i></heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><intro><p>The Regulator must maintain satisfactory arrangements for—</p></intro><level class="para1" eId="schedule-4-paragraph-13-a"><num>(a)</num><content><p>recording decisions made in the exercise of its functions, and</p></content></level><level class="para1" eId="schedule-4-paragraph-13-b"><num>(b)</num><content><p>the safe-keeping of those records which it considers ought to be preserved.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-exemption-from-liability-in-damages"><heading><i>Exemption from liability in damages</i></heading><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-4-paragraph-14-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-4-paragraph-14-1-a"><num>(a)</num><content><p>the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-b"><num>(b)</num><content><p>any person (“P”) who is, or is acting as, an officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-c"><num>(c)</num><content><p>any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-4"><num>(4)</num><intro><p>Sub-paragraph (1) does not apply—</p></intro><level class="para1" eId="schedule-4-paragraph-14-4-a"><num>(a)</num><content><p>if the act or omission is shown to have been in bad faith, or</p></content></level><level class="para1" eId="schedule-4-paragraph-14-4-b"><num>(b)</num><content><p>so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-engagement-with-parliamentary-committees"><heading><ins class="first" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8"><noteRef uk:name="commentary" href="#key-7fc4390698beedd582fc19467cf810d8" class="commentary"/>Engagement with Parliamentary Committees</ins></heading><paragraph eId="schedule-4-paragraph-14A" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14A</ins></num><subparagraph eId="schedule-4-paragraph-14A-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where the Regulator issues a relevant consultation.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">For the purposes of this paragraph the Regulator issues a relevant consultation if it—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-2-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes proposed generally applicable requirements under section 104,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes other proposals about the exercise of any of its general functions.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-4-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">advance the Regulator’s payment systems objectives,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">demonstrate that the Regulator has had regard to the regulatory principles in section 53 when preparing the proposals, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">engage with matters to which the Regulator must have regard under regulations made under section 102B.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-6"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(6)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the relevant Parliamentary Committees are references to—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-6-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Treasury Committee of the House of Commons,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-6-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Committee of the House of Lords which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-b-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by that House for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-b-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes, and</ins></p></content></level></level><level class="para1" eId="schedule-4-paragraph-14A-6-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Joint Committee of both Houses which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-c-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by those Houses for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-c-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-7"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(7)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the Treasury Committee of the House of Commons—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-7-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the name of that Committee is changed, are references to that Committee by its new name, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-7-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as reference to the Committee by which the functions are exercisable.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-8"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(8)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">Any question arising under sub-paragraph (7) is to be determined by the Speaker of the House of Commons.</ins></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14B" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14B</ins></num><subparagraph eId="schedule-4-paragraph-14B-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14B-1-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Regulator issues a public consultation, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14B-1-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the Regulator representations in response to the consultation.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14B-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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).</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The Regulator must give to the chair of the Committee concerned a written response to the representations.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-14A" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14A</ins></num><subparagraph eId="schedule-4-paragraph-14A-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where the Regulator issues a relevant consultation.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">For the purposes of this paragraph the Regulator issues a relevant consultation if it—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-2-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes proposed generally applicable requirements under section 104,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes other proposals about the exercise of any of its general functions.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-4-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">advance the Regulator’s payment systems objectives,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">demonstrate that the Regulator has had regard to the regulatory principles in section 53 when preparing the proposals, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">engage with matters to which the Regulator must have regard under regulations made under section 102B.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-6"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(6)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the relevant Parliamentary Committees are references to—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-6-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Treasury Committee of the House of Commons,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-6-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Committee of the House of Lords which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-b-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by that House for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-b-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes, and</ins></p></content></level></level><level class="para1" eId="schedule-4-paragraph-14A-6-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Joint Committee of both Houses which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-c-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by those Houses for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-c-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-7"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(7)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the Treasury Committee of the House of Commons—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-7-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the name of that Committee is changed, are references to that Committee by its new name, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-7-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as reference to the Committee by which the functions are exercisable.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-8"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(8)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">Any question arising under sub-paragraph (7) is to be determined by the Speaker of the House of Commons.</ins></p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-14B" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14B</ins></num><subparagraph eId="schedule-4-paragraph-14B-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14B-1-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Regulator issues a public consultation, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14B-1-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the Regulator representations in response to the consultation.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14B-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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).</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The Regulator must give to the chair of the Committee concerned a written response to the representations.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-freedom-of-information"><heading><i>Freedom of information</i></heading><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-equality"><heading><i>Equality</i></heading><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “<i>Industry, business, finance <abbr title="et cetera" xml:lang="la">etc.</abbr></i>”, at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-5"><num>SCHEDULE 5<authorialNote class="referenceNote"><p>
Section 79</p></authorialNote></num><heading>Procedure for appeals to the CMA</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-functions-of-cma-to-be-discharged-by-group"><heading><i>Functions of CMA to be discharged by group</i></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><content><p>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.</p></content></paragraph><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p><mod>In paragraph 35(1) (membership of CMA panel), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>at least one person (a “payment systems panel member”) appointed to the CMA panel under paragraph 1(1)(b) for the purpose of being available for selection as a member of a group constituted to carry out functions on behalf of the CMA with respect to an appeal made in accordance with section 79 of the Financial Services (Banking Reform) Act 2013 (a “specialist payment systems group”);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content><p><mod>In paragraph 38 (membership of CMA groups), after sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><content><p>In the case of a specialist payment systems group, the group must include at least one payment systems member.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p><mod>In paragraph 48 (performance of functions of chair with respect to constitution <abbr title="Et cetera" xml:lang="la">etc</abbr> of CMA group), in sub-paragraph (4)(c), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(v)</num><content><p>Schedule 5 to the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-application-for-permission-to-bring-appeal"><heading><i>Application for permission to bring appeal</i></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>An application for permission to appeal must be accompanied by all such information as may be required by appeal rules.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><content><p>Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><intro><p>The appellant must send the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-3-5-a"><num>(a)</num><content><p>a copy of the application for permission to appeal at the same time as it is sent to the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-5-b"><num>(b)</num><content><p>such other information as may be required by appeal rules.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-8"><num>(8)</num><intro><p>The CMA's decision on an application for permission must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-3-8-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-8-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day after the day on which the application for permission was received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-9"><num>(9)</num><intro><p>The grant of permission may be made subject to conditions, which may include—</p></intro><level class="para1" eId="schedule-5-paragraph-3-9-a"><num>(a)</num><content><p>conditions which limit the matters that are to be considered on the appeal in question;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-b"><num>(b)</num><content><p>conditions for the purpose of expediting the determination of the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-c"><num>(c)</num><content><p>conditions requiring the appeal to be considered together with other appeals (including appeals relating to different matters or decisions and appeals brought by different persons).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-3-10-a"><num>(a)</num><content><p>the appellant, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-10-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-11"><num>(11)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-12"><num>(12)</num><intro><p>The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-3-12-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-3-12-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-suspension-of-decision"><heading><i>Suspension of decision</i></heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-5-paragraph-4-1"><num>(1)</num><intro><p>The CMA may direct that, pending the determination of an appeal against a decision of the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-4-1-a"><num>(a)</num><content><p>the decision is not to have effect, or</p></content></level><level class="para1" eId="schedule-5-paragraph-4-1-b"><num>(b)</num><content><p>the decision is not to have effect to such extent as may be specified in the direction.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-2"><num>(2)</num><intro><p>The power to give a direction under this paragraph is exercisable only where—</p></intro><level class="para1" eId="schedule-5-paragraph-4-2-a"><num>(a)</num><content><p>an application for its exercise has been made by the appellant at the same time as the appellant made an application in accordance with paragraph 3 for permission to bring an appeal against a decision of the Payment Systems Regulator,</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-b"><num>(b)</num><content><p>the Payment Systems Regulator has been given an opportunity of making representations or observations, in accordance with paragraph 5(2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-c"><num>(c)</num><content><p>the balance of convenience does not otherwise require effect to be given to the decision pending that determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-3"><num>(3)</num><intro><p>The CMA's decision on an application for a direction under this paragraph must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-4-3-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-3-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day following the day on which the application under sub-paragraph (2)(a) is received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-5"><num>(5)</num><content><p>The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-6"><num>(6)</num><intro><p>A direction under this paragraph must be—</p></intro><level class="para1" eId="schedule-5-paragraph-4-6-a"><num>(a)</num><content><p>given by an authorised member of the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-6-b"><num>(b)</num><content><p>published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is given.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-time-limit-for-representations-and-observations-by-the-regulator"><heading><i>Time limit for representations and observations by the Regulator</i></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where the Payment Systems Regulator wishes to make representations or observations to the CMA in relation to—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>an application for permission to bring an appeal under paragraph 3;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>an application for a direction under paragraph 4.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>the Payment Systems Regulator's reasons for the decision in relation to which the appeal is being brought;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>any grounds on which that appeal is being brought against that decision.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>The Payment Systems Regulator must send a copy of the representations and observations it makes under this paragraph to the appellant.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-consideration-and-determination-of-appeal-by-group"><heading><i>Consideration and determination of appeal by group</i></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><intro><p>A decision of the group is effective if, and only if—</p></intro><level class="para1" eId="schedule-5-paragraph-6-2-a"><num>(a)</num><content><p>all the members of the group are present when it is made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-6-2-b"><num>(b)</num><content><p>at least two members of the group are in favour of the decision.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-time-limits-for-determining-appeal"><heading><i>Time limits for determining appeal</i></heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><content><p>The CMA must determine an appeal within the period of 6 months beginning with the permission date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>the CMA has received representations on the timing of the determination from a party to the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>it is satisfied that there are special reasons why the determination cannot be made within the period specified in sub-paragraph (1),</p></content></level><wrapUp><p>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.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><intro><p>In a case where sub-paragraph (2) applies, the CMA must also—</p></intro><level class="para1" eId="schedule-5-paragraph-7-3-a"><num>(a)</num><content><p>inform the parties to the appeal of the time limit for determining the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-3-b"><num>(b)</num><content><p>publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any other persons likely to be affected by the determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>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).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-matters-to-be-considered-on-appeal"><heading><i>Matters to be considered on appeal</i></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>any or all matters raised by an appellant that were not raised by that appellant at the time of the relevant application, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>any or all matters raised by the Payment Systems Regulator that were not contained in representations or observations made for the purposes of the appeal in accordance with paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>In this paragraph “<term refersTo="#term-relevant-application" eId="term-relevant-application">relevant application</term>” means an application under paragraph 3 or 4.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-production-of-documents-etc"><heading><i>Production of documents <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><intro><p>For the purposes of this Schedule, the CMA may by notice—</p></intro><level class="para1" eId="schedule-5-paragraph-9-1-a"><num>(a)</num><content><p>require a person to produce to the CMA the documents specified or otherwise identified in the notice;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-1-b"><num>(b)</num><content><p>require any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information as may be specified or described in the notice in relation to that business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>at the time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in a legible form.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-5"><num>(5)</num><intro><p>A notice for the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-9-5-a"><num>(a)</num><content><p>may be issued on the CMA's behalf by an authorised member of the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-5-b"><num>(b)</num><content><p>must include information about the possible consequences of not complying with the notice (as set out in paragraph 13).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-oral-hearings"><heading><i>Oral hearings</i></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><intro><p>For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath—</p></intro><level class="para1" eId="schedule-5-paragraph-10-1-a"><num>(a)</num><content><p>by a person considering an application for permission to bring an appeal under paragraph 3,</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-b"><num>(b)</num><content><p>by a person considering an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-c"><num>(c)</num><content><p>by a group with the function of determining an appeal;</p></content></level><wrapUp><p>and, for that purpose, such a person or group may administer oaths.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><intro><p>The CMA may by notice require a person—</p></intro><level class="para1" eId="schedule-5-paragraph-10-2-a"><num>(a)</num><content><p>to attend at a time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-2-b"><num>(b)</num><content><p>at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><intro><p>At any oral hearing the person or group conducting the hearing may—</p></intro><level class="para1" eId="schedule-5-paragraph-10-3-a"><num>(a)</num><content><p>require the appellant or the Payment Systems Regulator, if present at the hearing, to give evidence or to make representations or observations, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-3-b"><num>(b)</num><content><p>require a person attending the hearing as a representative of the appellant or of the Payment Systems Regulator to make representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><content><p>A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-5"><num>(5)</num><intro><p>If the appellant, the Payment Systems Regulator, or the appellant's or Payment Systems Regulator's representative is not present at a hearing—</p></intro><level class="para1" eId="schedule-5-paragraph-10-5-a"><num>(a)</num><content><p>there is no requirement to give notice to that person under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-5-b"><num>(b)</num><content><p>the person or group conducting the hearing may determine the application or appeal without hearing that person's evidence, representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-7"><num>(7)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-8"><num>(8)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-written-statements"><heading><i>Written statements</i></heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-5-paragraph-11-1"><num>(1)</num><intro><p>The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to—</p></intro><level class="para1" eId="schedule-5-paragraph-11-1-a"><num>(a)</num><content><p>a person who is considering, or is to consider, an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-11-1-b"><num>(b)</num><content><p>a group with the function of determining an appeal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-11-2"><num>(2)</num><intro><p>The power to require the production of a written statement includes power—</p></intro><level class="para1" eId="schedule-5-paragraph-11-2-a"><num>(a)</num><content><p>to specify the time and place at which it is to be produced, and</p></content></level><level class="para1" eId="schedule-5-paragraph-11-2-b"><num>(b)</num><content><p>to require it to be verified by a statement of truth;</p></content></level><wrapUp><p>and a statement required to be so verified must be disregarded unless it is so verified.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-11-4"><num>(4)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-expert-advice"><heading><i>Expert advice</i></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><content><p>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.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-defaults-in-relation-to-evidence"><heading><i>Defaults in relation to evidence</i></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>If a person (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>fails to comply with a notice issued or other requirement imposed under paragraph 9, 10 or 11,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>in complying with a notice under paragraph 11, makes a statement that is false in any material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>in providing information verified in accordance with a statement of truth required by appeal rules, provides information that is false in a material particular,</p></content></level><wrapUp><p>an authorised member of the CMA may certify that fact to the court.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p>In sub-paragraph (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In this paragraph “<term refersTo="#term-court" eId="term-court">court</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>the High Court, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>in Scotland, the Court of Session.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>A person guilty of an offence under this paragraph is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-f953ce86e069a302419a3416517b516a-1677579981062" ukl:CommentaryRef="key-f953ce86e069a302419a3416517b516a"><noteRef uk:name="commentary" href="#key-f953ce86e069a302419a3416517b516a" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-ebc4b66ce032a1665fc2d8f3d3626899-1658396745500" ukl:CommentaryRef="key-ebc4b66ce032a1665fc2d8f3d3626899"><noteRef uk:name="commentary" href="#key-ebc4b66ce032a1665fc2d8f3d3626899" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-determination-of-appeal-by-cma"><heading><i>Determination of appeal by CMA</i></heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A determination by the CMA on an appeal—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>must be contained in an order made by the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>must set out the reasons for the determination;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-c"><num>(c)</num><content><p>takes effect at the time specified in the order or determined in accordance with provision made in the order;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-d"><num>(d)</num><content><p>must be notified by the CMA to the parties to the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-e"><num>(e)</num><intro><p>must be published by the CMA—</p></intro><level class="para2" eId="schedule-5-paragraph-15-1-e-i"><num>(i)</num><content><p>as soon as reasonably practicable after the determination is made;</p></content></level><level class="para2" eId="schedule-5-paragraph-15-1-e-ii"><num>(ii)</num><content><p>in such manner as the CMA considers appropriate for the purpose of bringing the determination to the attention of any person likely to be affected by it (other than a party to the appeal).</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><intro><p>The steps must be taken—</p></intro><level class="para1" eId="schedule-5-paragraph-15-4-a"><num>(a)</num><content><p>if a time is specified in (or is to be determined in accordance with) the order, within that time;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-4-b"><num>(b)</num><content><p>in any other case, within a reasonable time.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-appeal-rules"><heading><i>Appeal rules</i></heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><content><p>The CMA Board may make rules of procedure regulating the conduct and disposal of appeals.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the taking of evidence at an oral hearing, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the making of representations or observations at such a hearing.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><content><p>Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><content><p>Rules under this paragraph may make different provision for different cases.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-costs"><heading><i>Costs</i></heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><intro><p>An order under sub-paragraph (1) must require those costs to be paid—</p></intro><level class="para1" eId="schedule-5-paragraph-17-2-a"><num>(a)</num><content><p>where the appeal is allowed in full, by the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-b"><num>(b)</num><content><p>where the appeal is dismissed in full, by the appellant;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-c"><num>(c)</num><content><p>where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all the circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-6"><num>(6)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-interpretation"><heading><i>Interpretation</i></heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal" eId="term-appeal">appeal</term>” means an appeal made in accordance with section 79;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal-rules" eId="term-appeal-rules">appeal rules</term>” means rules of procedure under paragraph 16;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appellant" eId="term-appellant">appellant</term>” has the meaning given by paragraph 3(4);</p></content></hcontainer><hcontainer name="definition"><intro><p>“authorised member of the CMA”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a power exercisable in connection with an appeal in respect of which a group has been constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised by the chair of the CMA to exercise that power;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a power exercisable in connection with an application for permission to bring an appeal, or otherwise in connection with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>any member of the CMA Board who is also a member of the CMA panel, or</p></item><item><num>(ii)</num><p>any member of the CMA panel authorised by the Treasury (whether generally or specifically) to exercise the power in question;</p></item></blockList></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma" eId="term-cma">CMA</term>” means the Competition and Markets Authority;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-board" eId="term-cma-board">CMA Board</term>” and “<term refersTo="#term-cma-panel" eId="term-cma-panel">CMA panel</term>” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” means a group selected in accordance with paragraph 6;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-statement-of-truth" eId="term-statement-of-truth">statement of truth</term>”, in relation to the production of a statement or provision of information by a person, means a statement that the person believes the facts stated in the statement or information to be true;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-working-day" eId="term-working-day">working day</term>” means any day other than—</p></intro><level class="para1"><num>(a)</num><content><p>Saturday or Sunday;</p></content></level><level class="para1"><num>(b)</num><content><p>Christmas Day or Good Friday;</p></content></level><level class="para1"><num>(c)</num><content><p>a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><intro><p>References in this Schedule to a party to an appeal are references to—</p></intro><level class="para1" eId="schedule-5-paragraph-18-2-a"><num>(a)</num><content><p>the appellant, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-2-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-functions-of-cma-to-be-discharged-by-group"><heading><i>Functions of CMA to be discharged by group</i></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><content><p>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.</p></content></paragraph><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p><mod>In paragraph 35(1) (membership of CMA panel), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>at least one person (a “payment systems panel member”) appointed to the CMA panel under paragraph 1(1)(b) for the purpose of being available for selection as a member of a group constituted to carry out functions on behalf of the CMA with respect to an appeal made in accordance with section 79 of the Financial Services (Banking Reform) Act 2013 (a “specialist payment systems group”);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content><p><mod>In paragraph 38 (membership of CMA groups), after sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><content><p>In the case of a specialist payment systems group, the group must include at least one payment systems member.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p><mod>In paragraph 48 (performance of functions of chair with respect to constitution <abbr title="Et cetera" xml:lang="la">etc</abbr> of CMA group), in sub-paragraph (4)(c), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(v)</num><content><p>Schedule 5 to the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-application-for-permission-to-bring-appeal"><heading><i>Application for permission to bring appeal</i></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>An application for permission to appeal must be accompanied by all such information as may be required by appeal rules.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><content><p>Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><intro><p>The appellant must send the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-3-5-a"><num>(a)</num><content><p>a copy of the application for permission to appeal at the same time as it is sent to the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-5-b"><num>(b)</num><content><p>such other information as may be required by appeal rules.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-8"><num>(8)</num><intro><p>The CMA's decision on an application for permission must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-3-8-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-8-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day after the day on which the application for permission was received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-9"><num>(9)</num><intro><p>The grant of permission may be made subject to conditions, which may include—</p></intro><level class="para1" eId="schedule-5-paragraph-3-9-a"><num>(a)</num><content><p>conditions which limit the matters that are to be considered on the appeal in question;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-b"><num>(b)</num><content><p>conditions for the purpose of expediting the determination of the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-c"><num>(c)</num><content><p>conditions requiring the appeal to be considered together with other appeals (including appeals relating to different matters or decisions and appeals brought by different persons).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-3-10-a"><num>(a)</num><content><p>the appellant, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-10-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-11"><num>(11)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-12"><num>(12)</num><intro><p>The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-3-12-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-3-12-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-suspension-of-decision"><heading><i>Suspension of decision</i></heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-5-paragraph-4-1"><num>(1)</num><intro><p>The CMA may direct that, pending the determination of an appeal against a decision of the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-4-1-a"><num>(a)</num><content><p>the decision is not to have effect, or</p></content></level><level class="para1" eId="schedule-5-paragraph-4-1-b"><num>(b)</num><content><p>the decision is not to have effect to such extent as may be specified in the direction.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-2"><num>(2)</num><intro><p>The power to give a direction under this paragraph is exercisable only where—</p></intro><level class="para1" eId="schedule-5-paragraph-4-2-a"><num>(a)</num><content><p>an application for its exercise has been made by the appellant at the same time as the appellant made an application in accordance with paragraph 3 for permission to bring an appeal against a decision of the Payment Systems Regulator,</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-b"><num>(b)</num><content><p>the Payment Systems Regulator has been given an opportunity of making representations or observations, in accordance with paragraph 5(2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-c"><num>(c)</num><content><p>the balance of convenience does not otherwise require effect to be given to the decision pending that determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-3"><num>(3)</num><intro><p>The CMA's decision on an application for a direction under this paragraph must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-4-3-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-3-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day following the day on which the application under sub-paragraph (2)(a) is received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-5"><num>(5)</num><content><p>The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-6"><num>(6)</num><intro><p>A direction under this paragraph must be—</p></intro><level class="para1" eId="schedule-5-paragraph-4-6-a"><num>(a)</num><content><p>given by an authorised member of the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-6-b"><num>(b)</num><content><p>published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is given.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-time-limit-for-representations-and-observations-by-the-regulator"><heading><i>Time limit for representations and observations by the Regulator</i></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where the Payment Systems Regulator wishes to make representations or observations to the CMA in relation to—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>an application for permission to bring an appeal under paragraph 3;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>an application for a direction under paragraph 4.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>the Payment Systems Regulator's reasons for the decision in relation to which the appeal is being brought;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>any grounds on which that appeal is being brought against that decision.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>The Payment Systems Regulator must send a copy of the representations and observations it makes under this paragraph to the appellant.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-consideration-and-determination-of-appeal-by-group"><heading><i>Consideration and determination of appeal by group</i></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><intro><p>A decision of the group is effective if, and only if—</p></intro><level class="para1" eId="schedule-5-paragraph-6-2-a"><num>(a)</num><content><p>all the members of the group are present when it is made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-6-2-b"><num>(b)</num><content><p>at least two members of the group are in favour of the decision.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-time-limits-for-determining-appeal"><heading><i>Time limits for determining appeal</i></heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><content><p>The CMA must determine an appeal within the period of 6 months beginning with the permission date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>the CMA has received representations on the timing of the determination from a party to the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>it is satisfied that there are special reasons why the determination cannot be made within the period specified in sub-paragraph (1),</p></content></level><wrapUp><p>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.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><intro><p>In a case where sub-paragraph (2) applies, the CMA must also—</p></intro><level class="para1" eId="schedule-5-paragraph-7-3-a"><num>(a)</num><content><p>inform the parties to the appeal of the time limit for determining the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-3-b"><num>(b)</num><content><p>publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any other persons likely to be affected by the determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>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).</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-matters-to-be-considered-on-appeal"><heading><i>Matters to be considered on appeal</i></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>any or all matters raised by an appellant that were not raised by that appellant at the time of the relevant application, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>any or all matters raised by the Payment Systems Regulator that were not contained in representations or observations made for the purposes of the appeal in accordance with paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>In this paragraph “<term refersTo="#term-relevant-application" eId="term-relevant-application">relevant application</term>” means an application under paragraph 3 or 4.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-production-of-documents-etc"><heading><i>Production of documents <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><intro><p>For the purposes of this Schedule, the CMA may by notice—</p></intro><level class="para1" eId="schedule-5-paragraph-9-1-a"><num>(a)</num><content><p>require a person to produce to the CMA the documents specified or otherwise identified in the notice;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-1-b"><num>(b)</num><content><p>require any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information as may be specified or described in the notice in relation to that business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>at the time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in a legible form.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-5"><num>(5)</num><intro><p>A notice for the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-9-5-a"><num>(a)</num><content><p>may be issued on the CMA's behalf by an authorised member of the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-5-b"><num>(b)</num><content><p>must include information about the possible consequences of not complying with the notice (as set out in paragraph 13).</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-oral-hearings"><heading><i>Oral hearings</i></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><intro><p>For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath—</p></intro><level class="para1" eId="schedule-5-paragraph-10-1-a"><num>(a)</num><content><p>by a person considering an application for permission to bring an appeal under paragraph 3,</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-b"><num>(b)</num><content><p>by a person considering an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-c"><num>(c)</num><content><p>by a group with the function of determining an appeal;</p></content></level><wrapUp><p>and, for that purpose, such a person or group may administer oaths.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><intro><p>The CMA may by notice require a person—</p></intro><level class="para1" eId="schedule-5-paragraph-10-2-a"><num>(a)</num><content><p>to attend at a time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-2-b"><num>(b)</num><content><p>at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><intro><p>At any oral hearing the person or group conducting the hearing may—</p></intro><level class="para1" eId="schedule-5-paragraph-10-3-a"><num>(a)</num><content><p>require the appellant or the Payment Systems Regulator, if present at the hearing, to give evidence or to make representations or observations, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-3-b"><num>(b)</num><content><p>require a person attending the hearing as a representative of the appellant or of the Payment Systems Regulator to make representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><content><p>A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-5"><num>(5)</num><intro><p>If the appellant, the Payment Systems Regulator, or the appellant's or Payment Systems Regulator's representative is not present at a hearing—</p></intro><level class="para1" eId="schedule-5-paragraph-10-5-a"><num>(a)</num><content><p>there is no requirement to give notice to that person under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-5-b"><num>(b)</num><content><p>the person or group conducting the hearing may determine the application or appeal without hearing that person's evidence, representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-7"><num>(7)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-8"><num>(8)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-written-statements"><heading><i>Written statements</i></heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-5-paragraph-11-1"><num>(1)</num><intro><p>The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to—</p></intro><level class="para1" eId="schedule-5-paragraph-11-1-a"><num>(a)</num><content><p>a person who is considering, or is to consider, an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-11-1-b"><num>(b)</num><content><p>a group with the function of determining an appeal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-11-2"><num>(2)</num><intro><p>The power to require the production of a written statement includes power—</p></intro><level class="para1" eId="schedule-5-paragraph-11-2-a"><num>(a)</num><content><p>to specify the time and place at which it is to be produced, and</p></content></level><level class="para1" eId="schedule-5-paragraph-11-2-b"><num>(b)</num><content><p>to require it to be verified by a statement of truth;</p></content></level><wrapUp><p>and a statement required to be so verified must be disregarded unless it is so verified.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-11-4"><num>(4)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-expert-advice"><heading><i>Expert advice</i></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><content><p>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.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-defaults-in-relation-to-evidence"><heading><i>Defaults in relation to evidence</i></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>If a person (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>fails to comply with a notice issued or other requirement imposed under paragraph 9, 10 or 11,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>in complying with a notice under paragraph 11, makes a statement that is false in any material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>in providing information verified in accordance with a statement of truth required by appeal rules, provides information that is false in a material particular,</p></content></level><wrapUp><p>an authorised member of the CMA may certify that fact to the court.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p>In sub-paragraph (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In this paragraph “<term refersTo="#term-court" eId="term-court">court</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>the High Court, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>in Scotland, the Court of Session.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>A person guilty of an offence under this paragraph is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-f953ce86e069a302419a3416517b516a-1677579981062" ukl:CommentaryRef="key-f953ce86e069a302419a3416517b516a"><noteRef uk:name="commentary" href="#key-f953ce86e069a302419a3416517b516a" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-ebc4b66ce032a1665fc2d8f3d3626899-1658396745500" ukl:CommentaryRef="key-ebc4b66ce032a1665fc2d8f3d3626899"><noteRef uk:name="commentary" href="#key-ebc4b66ce032a1665fc2d8f3d3626899" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-determination-of-appeal-by-cma"><heading><i>Determination of appeal by CMA</i></heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A determination by the CMA on an appeal—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>must be contained in an order made by the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>must set out the reasons for the determination;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-c"><num>(c)</num><content><p>takes effect at the time specified in the order or determined in accordance with provision made in the order;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-d"><num>(d)</num><content><p>must be notified by the CMA to the parties to the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-e"><num>(e)</num><intro><p>must be published by the CMA—</p></intro><level class="para2" eId="schedule-5-paragraph-15-1-e-i"><num>(i)</num><content><p>as soon as reasonably practicable after the determination is made;</p></content></level><level class="para2" eId="schedule-5-paragraph-15-1-e-ii"><num>(ii)</num><content><p>in such manner as the CMA considers appropriate for the purpose of bringing the determination to the attention of any person likely to be affected by it (other than a party to the appeal).</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><intro><p>The steps must be taken—</p></intro><level class="para1" eId="schedule-5-paragraph-15-4-a"><num>(a)</num><content><p>if a time is specified in (or is to be determined in accordance with) the order, within that time;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-4-b"><num>(b)</num><content><p>in any other case, within a reasonable time.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-appeal-rules"><heading><i>Appeal rules</i></heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><content><p>The CMA Board may make rules of procedure regulating the conduct and disposal of appeals.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the taking of evidence at an oral hearing, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the making of representations or observations at such a hearing.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><content><p>Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><content><p>Rules under this paragraph may make different provision for different cases.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-costs"><heading><i>Costs</i></heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><intro><p>An order under sub-paragraph (1) must require those costs to be paid—</p></intro><level class="para1" eId="schedule-5-paragraph-17-2-a"><num>(a)</num><content><p>where the appeal is allowed in full, by the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-b"><num>(b)</num><content><p>where the appeal is dismissed in full, by the appellant;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-c"><num>(c)</num><content><p>where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all the circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-6"><num>(6)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-interpretation"><heading><i>Interpretation</i></heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal" eId="term-appeal">appeal</term>” means an appeal made in accordance with section 79;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal-rules" eId="term-appeal-rules">appeal rules</term>” means rules of procedure under paragraph 16;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appellant" eId="term-appellant">appellant</term>” has the meaning given by paragraph 3(4);</p></content></hcontainer><hcontainer name="definition"><intro><p>“authorised member of the CMA”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a power exercisable in connection with an appeal in respect of which a group has been constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised by the chair of the CMA to exercise that power;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a power exercisable in connection with an application for permission to bring an appeal, or otherwise in connection with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>any member of the CMA Board who is also a member of the CMA panel, or</p></item><item><num>(ii)</num><p>any member of the CMA panel authorised by the Treasury (whether generally or specifically) to exercise the power in question;</p></item></blockList></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma" eId="term-cma">CMA</term>” means the Competition and Markets Authority;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-board" eId="term-cma-board">CMA Board</term>” and “<term refersTo="#term-cma-panel" eId="term-cma-panel">CMA panel</term>” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” means a group selected in accordance with paragraph 6;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-statement-of-truth" eId="term-statement-of-truth">statement of truth</term>”, in relation to the production of a statement or provision of information by a person, means a statement that the person believes the facts stated in the statement or information to be true;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-working-day" eId="term-working-day">working day</term>” means any day other than—</p></intro><level class="para1"><num>(a)</num><content><p>Saturday or Sunday;</p></content></level><level class="para1"><num>(b)</num><content><p>Christmas Day or Good Friday;</p></content></level><level class="para1"><num>(c)</num><content><p>a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><intro><p>References in this Schedule to a party to an appeal are references to—</p></intro><level class="para1" eId="schedule-5-paragraph-18-2-a"><num>(a)</num><content><p>the appellant, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-2-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote"><p>
Section 121</p></authorialNote></num><heading>Conduct of FMI administration</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><intro><p>The following provisions of this Schedule provide for—</p></intro><level class="para1" eId="schedule-6-paragraph-1-a"><num>(a)</num><content><p>the general powers and duties of FMI administrators (by application of provisions about administrators), and</p></content></level><level class="para1" eId="schedule-6-paragraph-1-b"><num>(b)</num><content><p>the general process and effects of FMI administration (by application of provisions about administration).</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><intro><p>The provisions set out in the Tables apply in relation to FMI administration as in relation to administration, with—</p></intro><level class="para1" eId="schedule-6-paragraph-2-a"><num>(a)</num><content><p>the modifications set out in paragraph 3,</p></content></level><level class="para1" eId="schedule-6-paragraph-2-b"><num>(b)</num><content><p>any other modification specified in the Tables, and</p></content></level><level class="para1" eId="schedule-6-paragraph-2-c"><num>(c)</num><content><p>any other necessary modification.</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><intro><p>The modifications are that—</p></intro><level class="para1" eId="schedule-6-paragraph-3-a"><num>(a)</num><content><p>a reference to the administrator is a reference to the FMI administrator,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-b"><num>(b)</num><content><p>a reference to administration is a reference to FMI administration,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-c"><num>(c)</num><content><p>a reference to an administration application is a reference to an FMI administration application,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-d"><num>(d)</num><content><p>a reference to an administration order is a reference to an FMI administration order,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-e"><num>(e)</num><content><p> <ins class="first last" ukl:ChangeId="key-ffc6d0a190ae4d2742d66fe1103054dd-1498800502644" ukl:CommentaryRef="key-ffc6d0a190ae4d2742d66fe1103054dd"><noteRef uk:name="commentary" href="#key-ffc6d0a190ae4d2742d66fe1103054dd" class="commentary"/>except where otherwise specified in Table 2,</ins> a reference to a company is a reference to the infrastructure company, and</p></content></level><level class="para1" eId="schedule-6-paragraph-3-f"><num>(f)</num><content><p>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.</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><content><p>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.</p></content></paragraph><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p>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.</p><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1 OF APPLIED PROVISIONS</num><heading>SCHEDULE B1 TO THE INSOLVENCY ACT 1986</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:16%"/><default:col span="1" style="width:35%"/><default:col span="1" style="width:49%"/></default:colgroup><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Provision of Schedule B1</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Subject</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Modification</i></p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 40(1)(a)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Dismissal of pending winding-up petition</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Dismissal of administrative or other receiver</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Moratorium on insolvency proceedings</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-paras. (4) and (5).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 43</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Moratorium on other legal process</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 44(1)(a) and (5)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Interim moratorium</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Announcement of appointment</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-para. (6)(b) and (c).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 47 and 48</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statement of affairs</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Administrator's proposals</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27239"><num>(a)</num><content><p>The administrator must obtain the approval of the Bank of England to any proposals under sub-para. (1).</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27245"><num>(b)</num><content><p>Treat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to the objective in section 115 of this Act.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27251"><num>(c)</num><content><p>Ignore sub-para. (3)(b).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">General powers</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 60 and Schedule 1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">General powers</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The exercise of powers under Schedule 1 is subject to section 115 of this Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Directors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 62</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to call meetings of creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Application to court for directions</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27289"><num>(a)</num><content><p>Before making an application in reliance on this paragraph the FMI administrator must give notice to the Bank of England, which is to be entitled to participate in the proceedings.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27295"><num>(b)</num><content><p>In making directions the court must have regard to the objective in section 115 of this Act.</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Management powers</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Distribution to creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 66</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Payments</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taking custody of property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 68</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Management</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27331"><num>(a)</num><content><p>Ignore sub-paras. (1) and (3).</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27337"><num>(b)</num><content><p>The Bank of England may apply to the court for the variation or revocation of any directions given by the court.</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 69</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Agency</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Floating charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 71</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Fixed charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 72</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Hire-purchase property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 73</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Protection for secured and preferential creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Challenge to administrator's conduct</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">For sub-para. (2) there is to be taken to be substituted—</p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2)</num><content><p>Where a company is in FMI administration, a creditor or member of the company may apply to the court claiming that the FMI administrator is conducting himself or herself in a manner preventing the achievement of the objective of the FMI administration as quickly and efficiently as is reasonably practicable.</p></content></subsection></quotedStructure></mod></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Misfeasance</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 79</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Court ending administration on application of administrator</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">For sub-paras. (1) to (3) there are to be taken to be substituted—</p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1)</num><content><p>On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an FMI administrator of a company to cease to have effect from a specified time.</p></content></subsection><subsection><num>(2)</num><intro><p>The persons who may apply to the court under sub-paragraph (1) are—</p></intro><level class="para1"><num>(a)</num><content><p>the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>with the consent of the Bank, the FMI administrator.</p></content></level></subsection></quotedStructure></mod></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 84</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Termination: no more assets for distribution</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Discharge of administration order</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Notice to Companies Registrar of end of administration</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Resignation</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 88</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Removal</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Disqualification</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The notice under sub-para. (2) must be given to the Bank of England.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 90 and 91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Replacement</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27477"><num>(a)</num><content><p>Para. 91(1) applies as if the only person who could make an application were the Bank of England.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27483"><num>(b)</num><content><p>Ignore para. 91(2).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Discharge</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-paras. (2)(b) <ins class="first last" ukl:ChangeId="key-a7ccb19c2a9d11f788418d1ed0d899ae-1498799789817" ukl:CommentaryRef="key-a7ccb19c2a9d11f788418d1ed0d899ae"><noteRef uk:name="commentary" href="#key-a7ccb19c2a9d11f788418d1ed0d899ae" class="commentary"/>and (ba)</ins><ins class="substitution first last" ukl:ChangeId="key-633b3dab4193d5558ce99de090cfa1eb-1529849887784" ukl:CommentaryRef="key-633b3dab4193d5558ce99de090cfa1eb"><noteRef uk:name="commentary" href="#key-633b3dab4193d5558ce99de090cfa1eb" class="commentary"/>, (3) and (3A)</ins> .</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 99</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vacation of office: charges and liabilities</p></default:td><default:td><blockContainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" ukl:Name="BlockText"><p>In the application of sub-para. (3), payments may be made only—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in accordance with directions of the Bank of England, and</p></item><item><num>(b)</num><p>if the Bank is satisfied that they will not prejudice the objective in section 115 of this Act.</p></item></blockList></blockContainer></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 100 to 103</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Joint administrators</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An application under para. 103 may be made only by the Bank of England.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Validity</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 106 (and section 430 and Schedule 10)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Fines</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 107 to 109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Extension of time limits</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Amendment of provisions about time</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 111</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Interpretation</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 112 to 116</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Scotland</p></default:td><default:td/></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2 OF APPLIED PROVISIONS</num><heading>OTHER PROVISIONS OF THE INSOLVENCY ACT 1986</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:16%"/><default:col span="1" style="width:35%"/><default:col span="1" style="width:49%"/></default:colgroup><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Section</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Subject</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Modification or comment</i></p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-03e3ef328582400e96dc33607d92803f-1498799885738" ukl:CommentaryRef="key-03e3ef328582400e96dc33607d92803f"><noteRef uk:name="commentary" href="#key-03e3ef328582400e96dc33607d92803f" class="commentary"/>Section 176ZB </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="last" ukl:ChangeId="key-03e3ef328582400e96dc33607d92803f-1498799885738" ukl:CommentaryRef="key-03e3ef328582400e96dc33607d92803f">Application of proceeds of office-holder claims</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 233</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Utilities</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 234</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Getting in company's property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 235</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Duty to co-operate with office-holder</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 236</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Inquiry into company's dealings</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 237</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 236: enforcement by court</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 238</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Transactions at an undervalue (England and Wales)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 239</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Preferences (England and Wales)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 240</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ss. 238 and 239: relevant time</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 241</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Orders under ss. 238 and 239</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27648"><num>(a)</num><content><p>In considering making an order in reliance on section 241 the court must have regard to the objective in section 115 of this Act.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27654"><num>(b)</num><content><p>Ignore subsections (2A)(a) and (3) to (3C).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 242</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gratuitous alienations (Scotland)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 243</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Unfair preferences (Scotland)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">In considering the grant of a decree under subsection (5) the court must have regard to the objective in section 115 of this Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 244</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Extortionate credit transactions</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 245</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Avoidance of floating charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 246</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Unenforceability of liens</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14"><noteRef uk:name="commentary" href="#key-775654e74a1f2110fd2b2dcc6cf7fb14" class="commentary"/>Sections 246ZA to 246ZC </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">Administration: penalisation of directors </ins><abbr title="Et cetera" xml:lang="la"><ins class="last" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">etc</ins></abbr></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498800060360" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14"><noteRef uk:name="commentary" href="#key-775654e74a1f2110fd2b2dcc6cf7fb14" class="commentary"/>Section 246ZD </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="last" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498800060360" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">Power to assign certain causes of action</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850011382" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Sections 246ZE and 246ZF</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850052582" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Decisions by creditors (company insolvency)</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850082206" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Section 246C</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850104374" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Creditors’ ability to opt out of receiving certain notices</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850125075" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Section 248A</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850144778" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Meaning of “opted-out creditor”</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 386 and 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Preferential debts</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 389</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Offence of acting without being qualified</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution first" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea"><noteRef uk:name="commentary" href="#key-6c46fb10aa0fbef1bc74cb7691e7e3ea" class="commentary"/>Sections 390 to 391T </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">Authorisation and regulation of insolvency practitioners</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(b) For subsection (2) of that section there is to be taken to be substituted—</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">“(2)</ins><span ukl:Name="NonBreakingSpace"> </span><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">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.”.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(c) An order under section 391 has effect in relation to any provision applied for the purposes of FMI administration.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(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.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution last" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(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.</ins></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 423 to 425</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Transactions defrauding creditors</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 430 to 432 and Schedule 10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Offences</p></default:td><default:td/></default:tr></default:tbody></default:table></foreign></tblock></content></paragraph><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><content><p>The Treasury may by order amend this Schedule so as to make further modifications.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><intro><p>The further modifications that may be made are confined to such modifications of—</p></intro><level class="para1" eId="schedule-6-paragraph-6-2-a"><num>(a)</num><content><p>the 1986 Act, or</p></content></level><level class="para1" eId="schedule-6-paragraph-6-2-b"><num>(b)</num><content><p>other enactments passed or made before this Act that relate to insolvency or make provision by reference to anything that is or may be done under the 1986 Act,</p></content></level><wrapUp><p>as the Treasury consider appropriate in relation to any provision made by or under this Part of this Act.</p></wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><content><p>An order under this paragraph may also make modifications of the provisions of this Schedule.</p></content></subparagraph></paragraph></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><intro><p>The following provisions of this Schedule provide for—</p></intro><level class="para1" eId="schedule-6-paragraph-1-a"><num>(a)</num><content><p>the general powers and duties of FMI administrators (by application of provisions about administrators), and</p></content></level><level class="para1" eId="schedule-6-paragraph-1-b"><num>(b)</num><content><p>the general process and effects of FMI administration (by application of provisions about administration).</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-1-a"><num>(a)</num><content><p>the general powers and duties of FMI administrators (by application of provisions about administrators), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-1-b"><num>(b)</num><content><p>the general process and effects of FMI administration (by application of provisions about administration).</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><intro><p>The provisions set out in the Tables apply in relation to FMI administration as in relation to administration, with—</p></intro><level class="para1" eId="schedule-6-paragraph-2-a"><num>(a)</num><content><p>the modifications set out in paragraph 3,</p></content></level><level class="para1" eId="schedule-6-paragraph-2-b"><num>(b)</num><content><p>any other modification specified in the Tables, and</p></content></level><level class="para1" eId="schedule-6-paragraph-2-c"><num>(c)</num><content><p>any other necessary modification.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-2-a"><num>(a)</num><content><p>the modifications set out in paragraph 3,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-2-b"><num>(b)</num><content><p>any other modification specified in the Tables, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-2-c"><num>(c)</num><content><p>any other necessary modification.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><intro><p>The modifications are that—</p></intro><level class="para1" eId="schedule-6-paragraph-3-a"><num>(a)</num><content><p>a reference to the administrator is a reference to the FMI administrator,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-b"><num>(b)</num><content><p>a reference to administration is a reference to FMI administration,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-c"><num>(c)</num><content><p>a reference to an administration application is a reference to an FMI administration application,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-d"><num>(d)</num><content><p>a reference to an administration order is a reference to an FMI administration order,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-e"><num>(e)</num><content><p> <ins class="first last" ukl:ChangeId="key-ffc6d0a190ae4d2742d66fe1103054dd-1498800502644" ukl:CommentaryRef="key-ffc6d0a190ae4d2742d66fe1103054dd"><noteRef uk:name="commentary" href="#key-ffc6d0a190ae4d2742d66fe1103054dd" class="commentary"/>except where otherwise specified in Table 2,</ins> a reference to a company is a reference to the infrastructure company, and</p></content></level><level class="para1" eId="schedule-6-paragraph-3-f"><num>(f)</num><content><p>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.</p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-3-a"><num>(a)</num><content><p>a reference to the administrator is a reference to the FMI administrator,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-3-b"><num>(b)</num><content><p>a reference to administration is a reference to FMI administration,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-3-c"><num>(c)</num><content><p>a reference to an administration application is a reference to an FMI administration application,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-3-d"><num>(d)</num><content><p>a reference to an administration order is a reference to an FMI administration order,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="schedule-6-paragraph-3-e"><num>(e)</num><content><p> <ins class="first last" ukl:ChangeId="key-ffc6d0a190ae4d2742d66fe1103054dd-1498800502644" ukl:CommentaryRef="key-ffc6d0a190ae4d2742d66fe1103054dd"><noteRef uk:name="commentary" href="#key-ffc6d0a190ae4d2742d66fe1103054dd" class="commentary"/>except where otherwise specified in Table 2,</ins> a reference to a company is a reference to the infrastructure company, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-3-f"><num>(f)</num><content><p>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.</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><content><p>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.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p>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.</p><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1 OF APPLIED PROVISIONS</num><heading>SCHEDULE B1 TO THE INSOLVENCY ACT 1986</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:16%"/><default:col span="1" style="width:35%"/><default:col span="1" style="width:49%"/></default:colgroup><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Provision of Schedule B1</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Subject</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Modification</i></p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 40(1)(a)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Dismissal of pending winding-up petition</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Dismissal of administrative or other receiver</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Moratorium on insolvency proceedings</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-paras. (4) and (5).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 43</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Moratorium on other legal process</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 44(1)(a) and (5)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Interim moratorium</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Announcement of appointment</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-para. (6)(b) and (c).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 47 and 48</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statement of affairs</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Administrator's proposals</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27239"><num>(a)</num><content><p>The administrator must obtain the approval of the Bank of England to any proposals under sub-para. (1).</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27245"><num>(b)</num><content><p>Treat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to the objective in section 115 of this Act.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27251"><num>(c)</num><content><p>Ignore sub-para. (3)(b).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">General powers</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 60 and Schedule 1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">General powers</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The exercise of powers under Schedule 1 is subject to section 115 of this Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Directors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 62</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to call meetings of creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Application to court for directions</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27289"><num>(a)</num><content><p>Before making an application in reliance on this paragraph the FMI administrator must give notice to the Bank of England, which is to be entitled to participate in the proceedings.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27295"><num>(b)</num><content><p>In making directions the court must have regard to the objective in section 115 of this Act.</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Management powers</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Distribution to creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 66</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Payments</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taking custody of property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 68</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Management</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27331"><num>(a)</num><content><p>Ignore sub-paras. (1) and (3).</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27337"><num>(b)</num><content><p>The Bank of England may apply to the court for the variation or revocation of any directions given by the court.</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 69</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Agency</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Floating charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 71</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Fixed charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 72</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Hire-purchase property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 73</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Protection for secured and preferential creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Challenge to administrator's conduct</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">For sub-para. (2) there is to be taken to be substituted—</p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2)</num><content><p>Where a company is in FMI administration, a creditor or member of the company may apply to the court claiming that the FMI administrator is conducting himself or herself in a manner preventing the achievement of the objective of the FMI administration as quickly and efficiently as is reasonably practicable.</p></content></subsection></quotedStructure></mod></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Misfeasance</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 79</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Court ending administration on application of administrator</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">For sub-paras. (1) to (3) there are to be taken to be substituted—</p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1)</num><content><p>On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an FMI administrator of a company to cease to have effect from a specified time.</p></content></subsection><subsection><num>(2)</num><intro><p>The persons who may apply to the court under sub-paragraph (1) are—</p></intro><level class="para1"><num>(a)</num><content><p>the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>with the consent of the Bank, the FMI administrator.</p></content></level></subsection></quotedStructure></mod></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 84</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Termination: no more assets for distribution</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Discharge of administration order</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Notice to Companies Registrar of end of administration</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Resignation</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 88</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Removal</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Disqualification</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The notice under sub-para. (2) must be given to the Bank of England.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 90 and 91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Replacement</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27477"><num>(a)</num><content><p>Para. 91(1) applies as if the only person who could make an application were the Bank of England.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27483"><num>(b)</num><content><p>Ignore para. 91(2).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Discharge</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-paras. (2)(b) <ins class="first last" ukl:ChangeId="key-a7ccb19c2a9d11f788418d1ed0d899ae-1498799789817" ukl:CommentaryRef="key-a7ccb19c2a9d11f788418d1ed0d899ae"><noteRef uk:name="commentary" href="#key-a7ccb19c2a9d11f788418d1ed0d899ae" class="commentary"/>and (ba)</ins><ins class="substitution first last" ukl:ChangeId="key-633b3dab4193d5558ce99de090cfa1eb-1529849887784" ukl:CommentaryRef="key-633b3dab4193d5558ce99de090cfa1eb"><noteRef uk:name="commentary" href="#key-633b3dab4193d5558ce99de090cfa1eb" class="commentary"/>, (3) and (3A)</ins> .</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 99</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vacation of office: charges and liabilities</p></default:td><default:td><blockContainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" ukl:Name="BlockText"><p>In the application of sub-para. (3), payments may be made only—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in accordance with directions of the Bank of England, and</p></item><item><num>(b)</num><p>if the Bank is satisfied that they will not prejudice the objective in section 115 of this Act.</p></item></blockList></blockContainer></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 100 to 103</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Joint administrators</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An application under para. 103 may be made only by the Bank of England.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Validity</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 106 (and section 430 and Schedule 10)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Fines</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 107 to 109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Extension of time limits</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Amendment of provisions about time</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 111</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Interpretation</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 112 to 116</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Scotland</p></default:td><default:td/></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2 OF APPLIED PROVISIONS</num><heading>OTHER PROVISIONS OF THE INSOLVENCY ACT 1986</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:16%"/><default:col span="1" style="width:35%"/><default:col span="1" style="width:49%"/></default:colgroup><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Section</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Subject</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Modification or comment</i></p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-03e3ef328582400e96dc33607d92803f-1498799885738" ukl:CommentaryRef="key-03e3ef328582400e96dc33607d92803f"><noteRef uk:name="commentary" href="#key-03e3ef328582400e96dc33607d92803f" class="commentary"/>Section 176ZB </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="last" ukl:ChangeId="key-03e3ef328582400e96dc33607d92803f-1498799885738" ukl:CommentaryRef="key-03e3ef328582400e96dc33607d92803f">Application of proceeds of office-holder claims</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 233</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Utilities</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 234</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Getting in company's property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 235</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Duty to co-operate with office-holder</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 236</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Inquiry into company's dealings</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 237</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 236: enforcement by court</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 238</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Transactions at an undervalue (England and Wales)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 239</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Preferences (England and Wales)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 240</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ss. 238 and 239: relevant time</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 241</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Orders under ss. 238 and 239</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27648"><num>(a)</num><content><p>In considering making an order in reliance on section 241 the court must have regard to the objective in section 115 of this Act.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27654"><num>(b)</num><content><p>Ignore subsections (2A)(a) and (3) to (3C).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 242</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gratuitous alienations (Scotland)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 243</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Unfair preferences (Scotland)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">In considering the grant of a decree under subsection (5) the court must have regard to the objective in section 115 of this Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 244</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Extortionate credit transactions</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 245</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Avoidance of floating charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 246</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Unenforceability of liens</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14"><noteRef uk:name="commentary" href="#key-775654e74a1f2110fd2b2dcc6cf7fb14" class="commentary"/>Sections 246ZA to 246ZC </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">Administration: penalisation of directors </ins><abbr title="Et cetera" xml:lang="la"><ins class="last" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">etc</ins></abbr></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498800060360" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14"><noteRef uk:name="commentary" href="#key-775654e74a1f2110fd2b2dcc6cf7fb14" class="commentary"/>Section 246ZD </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="last" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498800060360" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">Power to assign certain causes of action</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850011382" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Sections 246ZE and 246ZF</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850052582" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Decisions by creditors (company insolvency)</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850082206" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Section 246C</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850104374" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Creditors’ ability to opt out of receiving certain notices</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850125075" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Section 248A</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850144778" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Meaning of “opted-out creditor”</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 386 and 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Preferential debts</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 389</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Offence of acting without being qualified</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution first" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea"><noteRef uk:name="commentary" href="#key-6c46fb10aa0fbef1bc74cb7691e7e3ea" class="commentary"/>Sections 390 to 391T </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">Authorisation and regulation of insolvency practitioners</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(b) For subsection (2) of that section there is to be taken to be substituted—</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">“(2)</ins><span ukl:Name="NonBreakingSpace"> </span><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">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.”.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(c) An order under section 391 has effect in relation to any provision applied for the purposes of FMI administration.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(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.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution last" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(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.</ins></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 423 to 425</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Transactions defrauding creditors</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 430 to 432 and Schedule 10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Offences</p></default:td><default:td/></default:tr></default:tbody></default:table></foreign></tblock></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><content><p>The Treasury may by order amend this Schedule so as to make further modifications.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><intro><p>The further modifications that may be made are confined to such modifications of—</p></intro><level class="para1" eId="schedule-6-paragraph-6-2-a"><num>(a)</num><content><p>the 1986 Act, or</p></content></level><level class="para1" eId="schedule-6-paragraph-6-2-b"><num>(b)</num><content><p>other enactments passed or made before this Act that relate to insolvency or make provision by reference to anything that is or may be done under the 1986 Act,</p></content></level><wrapUp><p>as the Treasury consider appropriate in relation to any provision made by or under this Part of this Act.</p></wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><content><p>An order under this paragraph may also make modifications of the provisions of this Schedule.</p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-7"><num>SCHEDULE 7<authorialNote class="referenceNote"><p>
Section 121</p></authorialNote></num><heading>Financial market infrastructure transfer schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-application-of-schedule"><heading><i>Application of Schedule</i></heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><intro><p>This Schedule applies where—</p></intro><level class="para1" eId="schedule-7-paragraph-1-a"><num>(a)</num><content><p>the court has made an FMI administration order in relation to a company (“the old company”), and</p></content></level><level class="para1" eId="schedule-7-paragraph-1-b"><num>(b)</num><content><p>it is proposed that a transfer within section 115(5) be made to another company (“the new company”).</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-interpretation-of-schedule"><heading><i>Interpretation of Schedule</i></heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fmi-transfer-scheme" eId="term-fmi-transfer-scheme">FMI transfer scheme</term>” has the meaning given by paragraph 4(1);</p></content></hcontainer><hcontainer name="definition"><content><p>“the new company” and “the old company” are to be read in accordance with paragraph 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>”, 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.</p></content></hcontainer></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-fmi-administrator-to-act-on-behalf-of-old-company"><heading><i>FMI administrator to act on behalf of old company</i></heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>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.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-making-of-fmi-transfer-schemes"><heading><i>Making of FMI transfer schemes</i></heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><intro><p>The old company may—</p></intro><level class="para1" eId="schedule-7-paragraph-4-1-a"><num>(a)</num><content><p>with the consent of the new company, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-1-b"><num>(b)</num><content><p>for the purpose of giving effect to the proposed transfer,</p></content></level><wrapUp><p>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”).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><content><p>Such a scheme may be made only at a time when the FMI administration order is in force in relation to the old company.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><intro><p>An FMI transfer scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways—</p></intro><level class="para1" eId="schedule-7-paragraph-4-3-a"><num>(a)</num><content><p>by specifying or describing them in particular,</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-b"><num>(b)</num><content><p>by identifying them generally by reference to, or to a specified part of, the undertaking of the old company, or</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-c"><num>(c)</num><content><p>by specifying the manner in which they are to be determined.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>An FMI transfer scheme is to take effect in accordance with paragraph 7 at the time appointed by the court.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-7"><num>(7)</num><intro><p>In deciding whether to approve an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-4-7-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-7-b"><num>(b)</num><content><p>any effect that the scheme is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-8"><num>(8)</num><content><p>Before approving an FMI transfer scheme, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-provision-that-may-be-made-by-a-scheme"><heading><i>Provision that may be made by a scheme</i></heading><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-7-paragraph-5-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision—</p></intro><level class="para1" eId="schedule-7-paragraph-5-1-a"><num>(a)</num><content><p>for the creation, in favour of the old company or the new company, of an interest or right in or in relation to property transferred in accordance with the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-b"><num>(b)</num><content><p>for giving effect to a transfer to the new company by the creation, in favour of that company, of an interest or right in or in relation to property retained by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-c"><num>(c)</num><content><p>for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between the old company and the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-d"><num>(d)</num><content><p>in connection with any provision made under this sub-paragraph, provision making incidental provision as to the interests, rights and liabilities of other persons with respect to the property, rights and liabilities to which the scheme relates.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-2"><num>(2)</num><intro><p>The property, rights and liabilities of the old company that may be transferred in accordance with an FMI transfer scheme include—</p></intro><level class="para1" eId="schedule-7-paragraph-5-2-a"><num>(a)</num><content><p>property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-b"><num>(b)</num><content><p>property acquired, and rights and liabilities arising, in the period after the making of the scheme but before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-c"><num>(c)</num><content><p>rights and liabilities arising after it takes effect in respect of matters occurring before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-d"><num>(d)</num><content><p>property situated anywhere in the United Kingdom or elsewhere;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-e"><num>(e)</num><content><p>rights and liabilities under the law of a part of the United Kingdom or of a place outside the United Kingdom <ins class="first last" ukl:ChangeId="key-920080d3d17de662987efbbe57739fe4-1630939297971" ukl:CommentaryRef="key-920080d3d17de662987efbbe57739fe4"><noteRef uk:name="commentary" href="#key-920080d3d17de662987efbbe57739fe4" class="commentary"/>(including under legislation of the European Union)</ins>;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-f"><num>(f)</num><content><p>rights and liabilities under an enactment<noteRef href="#key-4a9c2a56c82a63f00857b21fe7c7da23" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... or subordinate legislation.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-3-a"><num>(a)</num><content><p>no such requirement to obtain a person's consent or concurrence,</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-b"><num>(b)</num><content><p>no such liability in respect of a contravention of any other requirement, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-c"><num>(c)</num><content><p>no such interference with any interest or right,</p></content></level><wrapUp><p>as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-5-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-5-a"><num>(a)</num><content><p>to terminate, modify, acquire or claim an interest or right, or</p></content></level><level class="para1" eId="schedule-7-paragraph-5-5-b"><num>(b)</num><content><p>to treat an interest or right as modified or terminated.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-6"><num>(6)</num><intro><p>That entitlement—</p></intro><level class="para1" eId="schedule-7-paragraph-5-6-a"><num>(a)</num><content><p>is not enforceable in relation to that interest or right until after the transfer of the interest or right by the scheme, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-6-b"><num>(b)</num><content><p>is then enforceable in relation to the interest or right only in so far as the scheme contains provision for the interest or right to be transferred subject to whatever confers that entitlement.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-7"><num>(7)</num><intro><p>Sub-paragraphs (3) to (6) have effect where shares in a subsidiary of the old company are transferred—</p></intro><level class="para1" eId="schedule-7-paragraph-5-7-a"><num>(a)</num><content><p>as if the reference in sub-paragraph (4) to the terms on which the old company is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-7-b"><num>(b)</num><content><p>in relation to an interest or right of the subsidiary, as if the references in sub-paragraph (6) to the transfer of the interest or right included a reference to the transfer of the shares.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-further-provision-about-transfers"><heading><i>Further provision about transfers</i></heading><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content><p>An FMI transfer scheme may make incidental, supplemental, consequential and transitional provision in connection with the other provisions of the scheme.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><intro><p>An FMI transfer scheme may in particular make provision, in relation to a provision of the scheme—</p></intro><level class="para1" eId="schedule-7-paragraph-6-2-a"><num>(a)</num><content><p>for the new company to be treated as the same person in law as the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-b"><num>(b)</num><content><p>for agreements made, transactions effected or other things done by or in relation to the old company to be treated, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, as made, effected or done by or in relation to the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-c"><num>(c)</num><content><p>for references in an agreement, instrument or other document to the old company or to an employee or office holder with the old company to have effect, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, with such modifications as are specified in the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-d"><num>(d)</num><content><p>that the effect of any transfer in accordance with the scheme in relation to contracts of employment with the old company is not to terminate any of those contracts but is to be that periods of employment with that company are to count for all purposes as periods of employment with the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-e"><num>(e)</num><content><p>for proceedings commenced by or against the old company to be continued by or against the new company.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><p>Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-5-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-5-b"><num>(b)</num><content><p>section 64 of the Law of Property Act 1925 (production and safe custody of documents) is to have effect accordingly, and on the basis that the acknowledgement did not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-6-a"><num>(a)</num><content><p>as if the transfer had been effected by deed, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-6-b"><num>(b)</num><content><p>as if the words “unless specially qualified” were omitted from each of those subsections.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-7-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-7-b"><num>(b)</num><content><p>section 9 of the Conveyancing Act 1881 is to have effect accordingly, and on the basis that the acknowledgement does not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-effect-of-scheme"><heading><i>Effect of scheme</i></heading><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-7-paragraph-7-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-7-1-a"><num>(a)</num><content><p>the property, interests, rights or liabilities become by virtue of this Schedule the property, interests, rights or liabilities of the transferee at the time appointed by the court for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-7-1-b"><num>(b)</num><content><p>the provisions of that scheme in relation to that property, or those interests, rights or liabilities, have effect from that time.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-7-2"><num>(2)</num><intro><p>In this paragraph “<term refersTo="#term-the-transferee" eId="term-the-transferee">the transferee</term>” means—</p></intro><level class="para1" eId="schedule-7-paragraph-7-2-a"><num>(a)</num><content><p>in relation to property, rights or liabilities transferred by an FMI transfer scheme, the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-7-2-b"><num>(b)</num><content><p>in relation to interests, rights or liabilities created by such a scheme, the person in whose favour, or in relation to whom, they are created.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-subsequent-modification-of-scheme"><heading><i>Subsequent modification of scheme</i></heading><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-7-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-2"><num>(2)</num><content><p>The notice must specify the time at which it is to take effect (the “modification time”).</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-4"><num>(4)</num><intro><p>Those modifications may make—</p></intro><level class="para1" eId="schedule-7-paragraph-8-4-a"><num>(a)</num><content><p>any provision that could have been included in the scheme when it took effect at the time appointed for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-4-aa"><num>(aa)</num><content><p>transitional provision in connection with provision falling within paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-5"><num>(5)</num><intro><p>In deciding whether to modify an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-8-5-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-5-b"><num>(b)</num><content><p>any effect that the modification is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-6"><num>(6)</num><content><p>Before modifying an FMI transfer scheme that has taken effect, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-provision-relating-to-foreign-property"><heading><i>Provision relating to foreign property</i></heading><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-7-paragraph-9-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision about—</p></intro><level class="para1" eId="schedule-7-paragraph-9-1-a"><num>(a)</num><content><p>the transfer of foreign property, right and liabilities, and</p></content></level><level class="para1" eId="schedule-7-paragraph-9-1-b"><num>(b)</num><content><p>the creation of foreign property, rights and liabilities.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-9-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-application-of-schedule-to-transfers-to-subsidiaries"><heading><i>Application of Schedule to transfers to subsidiaries</i></heading><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-10-a"><num>(a)</num><content><p>paragraph 4(1)(a) were omitted, and</p></content></level><level class="para1" eId="schedule-7-paragraph-10-b"><num>(b)</num><content><p><mod>in paragraph 4(6), for the words from “both” onwards there were substituted <quotedText>“
the old company has consented may be made
”</quotedText>.</mod></p></content></level></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-application-of-schedule"><heading><i>Application of Schedule</i></heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><intro><p>This Schedule applies where—</p></intro><level class="para1" eId="schedule-7-paragraph-1-a"><num>(a)</num><content><p>the court has made an FMI administration order in relation to a company (“the old company”), and</p></content></level><level class="para1" eId="schedule-7-paragraph-1-b"><num>(b)</num><content><p>it is proposed that a transfer within section 115(5) be made to another company (“the new company”).</p></content></level></paragraph></hcontainer>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(a)</num><content><p>in the case of functions exercisable by the FCA, the continuity objective set out in section 1EA of FSMA 2000, or</p></content></level>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fmi-transfer-scheme" eId="term-fmi-transfer-scheme">FMI transfer scheme</term>” has the meaning given by paragraph 4(1);</p></content></hcontainer><hcontainer name="definition"><content><p>“the new company” and “the old company” are to be read in accordance with paragraph 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>”, 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.</p></content></hcontainer></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-7-paragraph-5-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision—</p></intro><level class="para1" eId="schedule-7-paragraph-5-1-a"><num>(a)</num><content><p>for the creation, in favour of the old company or the new company, of an interest or right in or in relation to property transferred in accordance with the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-b"><num>(b)</num><content><p>for giving effect to a transfer to the new company by the creation, in favour of that company, of an interest or right in or in relation to property retained by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-c"><num>(c)</num><content><p>for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between the old company and the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-d"><num>(d)</num><content><p>in connection with any provision made under this sub-paragraph, provision making incidental provision as to the interests, rights and liabilities of other persons with respect to the property, rights and liabilities to which the scheme relates.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-2"><num>(2)</num><intro><p>The property, rights and liabilities of the old company that may be transferred in accordance with an FMI transfer scheme include—</p></intro><level class="para1" eId="schedule-7-paragraph-5-2-a"><num>(a)</num><content><p>property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-b"><num>(b)</num><content><p>property acquired, and rights and liabilities arising, in the period after the making of the scheme but before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-c"><num>(c)</num><content><p>rights and liabilities arising after it takes effect in respect of matters occurring before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-d"><num>(d)</num><content><p>property situated anywhere in the United Kingdom or elsewhere;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-e"><num>(e)</num><content><p>rights and liabilities under the law of a part of the United Kingdom or of a place outside the United Kingdom <ins class="first last" ukl:ChangeId="key-920080d3d17de662987efbbe57739fe4-1630939297971" ukl:CommentaryRef="key-920080d3d17de662987efbbe57739fe4"><noteRef uk:name="commentary" href="#key-920080d3d17de662987efbbe57739fe4" class="commentary"/>(including under legislation of the European Union)</ins>;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-f"><num>(f)</num><content><p>rights and liabilities under an enactment<noteRef href="#key-4a9c2a56c82a63f00857b21fe7c7da23" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... or subordinate legislation.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-3-a"><num>(a)</num><content><p>no such requirement to obtain a person's consent or concurrence,</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-b"><num>(b)</num><content><p>no such liability in respect of a contravention of any other requirement, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-c"><num>(c)</num><content><p>no such interference with any interest or right,</p></content></level><wrapUp><p>as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-5-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-5-a"><num>(a)</num><content><p>to terminate, modify, acquire or claim an interest or right, or</p></content></level><level class="para1" eId="schedule-7-paragraph-5-5-b"><num>(b)</num><content><p>to treat an interest or right as modified or terminated.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-6"><num>(6)</num><intro><p>That entitlement—</p></intro><level class="para1" eId="schedule-7-paragraph-5-6-a"><num>(a)</num><content><p>is not enforceable in relation to that interest or right until after the transfer of the interest or right by the scheme, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-6-b"><num>(b)</num><content><p>is then enforceable in relation to the interest or right only in so far as the scheme contains provision for the interest or right to be transferred subject to whatever confers that entitlement.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-7"><num>(7)</num><intro><p>Sub-paragraphs (3) to (6) have effect where shares in a subsidiary of the old company are transferred—</p></intro><level class="para1" eId="schedule-7-paragraph-5-7-a"><num>(a)</num><content><p>as if the reference in sub-paragraph (4) to the terms on which the old company is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-7-b"><num>(b)</num><content><p>in relation to an interest or right of the subsidiary, as if the references in sub-paragraph (6) to the transfer of the interest or right included a reference to the transfer of the shares.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-7-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-2"><num>(2)</num><content><p>The notice must specify the time at which it is to take effect (the “modification time”).</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-4"><num>(4)</num><intro><p>Those modifications may make—</p></intro><level class="para1" eId="schedule-7-paragraph-8-4-a"><num>(a)</num><content><p>any provision that could have been included in the scheme when it took effect at the time appointed for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-4-aa"><num>(aa)</num><content><p>transitional provision in connection with provision falling within paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-5"><num>(5)</num><intro><p>In deciding whether to modify an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-8-5-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-5-b"><num>(b)</num><content><p>any effect that the modification is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-6"><num>(6)</num><content><p>Before modifying an FMI transfer scheme that has taken effect, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-11" class="schProv1"><num>11</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>Omit section 9B (restriction on creation of floating charges).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><intro><p>In Schedule 15A (application of other companies insolvency legislation to building societies), omit the following paragraphs—</p></intro><level class="para1" eId="schedule-9-paragraph-4-2-a"><num>(a)</num><content><p>paragraph 18 (which modifies section 15 of the Insolvency Act 1986);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-b"><num>(b)</num><content><p>paragraph 20 (which modifies section 19 of that Act);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-c"><num>(c)</num><content><p>paragraph 40 (which modifies Article 28 of the Insolvency (Northern Ireland) Order 1989);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-d"><num>(d)</num><content><p>paragraph 42 (which modifies Article 31 of that Order).</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-4-3"><num>(3)</num><intro><p>In consequence of the amendment made by sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-4-3-a"><num>(a)</num><content><p><mod>in section 1(1A)(b), for “, 9A and 9B” substitute <quotedText>“
and 9A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-b"><num>(b)</num><content><p>in the Building Societies Act 1997, omit section 11;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-c"><num>(c)</num><content><p><mod>in section 11(3) of the Banking (Special Provisions) Act 2008, for paragraph (c) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>sections 8 and 9A of the Building Societies Act 1986 (restrictions on raising funds and borrowing and on transactions involving derivative instruments <abbr title="Et cetera" xml:lang="la">etc</abbr>);</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-d"><num>(d)</num><content><p>in section 251 of the Banking Act 2009, omit subsection (7);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-e"><num>(e)</num><content><p>in the Financial Services Act 2012, omit section 55.</p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute <quotedText>“
Part 4A
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-12" class="schProv1"><num>12</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-interpretation-of-schedule"><heading><i>Interpretation of Schedule</i></heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fmi-transfer-scheme" eId="term-fmi-transfer-scheme">FMI transfer scheme</term>” has the meaning given by paragraph 4(1);</p></content></hcontainer><hcontainer name="definition"><content><p>“the new company” and “the old company” are to be read in accordance with paragraph 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>”, 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.</p></content></hcontainer></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-fmi-administrator-to-act-on-behalf-of-old-company"><heading><i>FMI administrator to act on behalf of old company</i></heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>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.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-making-of-fmi-transfer-schemes"><heading><i>Making of FMI transfer schemes</i></heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><intro><p>The old company may—</p></intro><level class="para1" eId="schedule-7-paragraph-4-1-a"><num>(a)</num><content><p>with the consent of the new company, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-1-b"><num>(b)</num><content><p>for the purpose of giving effect to the proposed transfer,</p></content></level><wrapUp><p>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”).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><content><p>Such a scheme may be made only at a time when the FMI administration order is in force in relation to the old company.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><intro><p>An FMI transfer scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways—</p></intro><level class="para1" eId="schedule-7-paragraph-4-3-a"><num>(a)</num><content><p>by specifying or describing them in particular,</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-b"><num>(b)</num><content><p>by identifying them generally by reference to, or to a specified part of, the undertaking of the old company, or</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-c"><num>(c)</num><content><p>by specifying the manner in which they are to be determined.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>An FMI transfer scheme is to take effect in accordance with paragraph 7 at the time appointed by the court.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-7"><num>(7)</num><intro><p>In deciding whether to approve an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-4-7-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-7-b"><num>(b)</num><content><p>any effect that the scheme is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-8"><num>(8)</num><content><p>Before approving an FMI transfer scheme, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-provision-that-may-be-made-by-a-scheme"><heading><i>Provision that may be made by a scheme</i></heading><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-7-paragraph-5-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision—</p></intro><level class="para1" eId="schedule-7-paragraph-5-1-a"><num>(a)</num><content><p>for the creation, in favour of the old company or the new company, of an interest or right in or in relation to property transferred in accordance with the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-b"><num>(b)</num><content><p>for giving effect to a transfer to the new company by the creation, in favour of that company, of an interest or right in or in relation to property retained by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-c"><num>(c)</num><content><p>for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between the old company and the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-d"><num>(d)</num><content><p>in connection with any provision made under this sub-paragraph, provision making incidental provision as to the interests, rights and liabilities of other persons with respect to the property, rights and liabilities to which the scheme relates.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-2"><num>(2)</num><intro><p>The property, rights and liabilities of the old company that may be transferred in accordance with an FMI transfer scheme include—</p></intro><level class="para1" eId="schedule-7-paragraph-5-2-a"><num>(a)</num><content><p>property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-b"><num>(b)</num><content><p>property acquired, and rights and liabilities arising, in the period after the making of the scheme but before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-c"><num>(c)</num><content><p>rights and liabilities arising after it takes effect in respect of matters occurring before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-d"><num>(d)</num><content><p>property situated anywhere in the United Kingdom or elsewhere;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-e"><num>(e)</num><content><p>rights and liabilities under the law of a part of the United Kingdom or of a place outside the United Kingdom <ins class="first last" ukl:ChangeId="key-920080d3d17de662987efbbe57739fe4-1630939297971" ukl:CommentaryRef="key-920080d3d17de662987efbbe57739fe4"><noteRef uk:name="commentary" href="#key-920080d3d17de662987efbbe57739fe4" class="commentary"/>(including under legislation of the European Union)</ins>;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-f"><num>(f)</num><content><p>rights and liabilities under an enactment<noteRef href="#key-4a9c2a56c82a63f00857b21fe7c7da23" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... or subordinate legislation.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-3-a"><num>(a)</num><content><p>no such requirement to obtain a person's consent or concurrence,</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-b"><num>(b)</num><content><p>no such liability in respect of a contravention of any other requirement, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-c"><num>(c)</num><content><p>no such interference with any interest or right,</p></content></level><wrapUp><p>as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-5-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-5-a"><num>(a)</num><content><p>to terminate, modify, acquire or claim an interest or right, or</p></content></level><level class="para1" eId="schedule-7-paragraph-5-5-b"><num>(b)</num><content><p>to treat an interest or right as modified or terminated.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-6"><num>(6)</num><intro><p>That entitlement—</p></intro><level class="para1" eId="schedule-7-paragraph-5-6-a"><num>(a)</num><content><p>is not enforceable in relation to that interest or right until after the transfer of the interest or right by the scheme, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-6-b"><num>(b)</num><content><p>is then enforceable in relation to the interest or right only in so far as the scheme contains provision for the interest or right to be transferred subject to whatever confers that entitlement.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-7"><num>(7)</num><intro><p>Sub-paragraphs (3) to (6) have effect where shares in a subsidiary of the old company are transferred—</p></intro><level class="para1" eId="schedule-7-paragraph-5-7-a"><num>(a)</num><content><p>as if the reference in sub-paragraph (4) to the terms on which the old company is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-7-b"><num>(b)</num><content><p>in relation to an interest or right of the subsidiary, as if the references in sub-paragraph (6) to the transfer of the interest or right included a reference to the transfer of the shares.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-further-provision-about-transfers"><heading><i>Further provision about transfers</i></heading><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content><p>An FMI transfer scheme may make incidental, supplemental, consequential and transitional provision in connection with the other provisions of the scheme.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><intro><p>An FMI transfer scheme may in particular make provision, in relation to a provision of the scheme—</p></intro><level class="para1" eId="schedule-7-paragraph-6-2-a"><num>(a)</num><content><p>for the new company to be treated as the same person in law as the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-b"><num>(b)</num><content><p>for agreements made, transactions effected or other things done by or in relation to the old company to be treated, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, as made, effected or done by or in relation to the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-c"><num>(c)</num><content><p>for references in an agreement, instrument or other document to the old company or to an employee or office holder with the old company to have effect, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, with such modifications as are specified in the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-d"><num>(d)</num><content><p>that the effect of any transfer in accordance with the scheme in relation to contracts of employment with the old company is not to terminate any of those contracts but is to be that periods of employment with that company are to count for all purposes as periods of employment with the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-e"><num>(e)</num><content><p>for proceedings commenced by or against the old company to be continued by or against the new company.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><p>Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-5-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-5-b"><num>(b)</num><content><p>section 64 of the Law of Property Act 1925 (production and safe custody of documents) is to have effect accordingly, and on the basis that the acknowledgement did not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-6-a"><num>(a)</num><content><p>as if the transfer had been effected by deed, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-6-b"><num>(b)</num><content><p>as if the words “unless specially qualified” were omitted from each of those subsections.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-7-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-7-b"><num>(b)</num><content><p>section 9 of the Conveyancing Act 1881 is to have effect accordingly, and on the basis that the acknowledgement does not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-effect-of-scheme"><heading><i>Effect of scheme</i></heading><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-7-paragraph-7-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-7-1-a"><num>(a)</num><content><p>the property, interests, rights or liabilities become by virtue of this Schedule the property, interests, rights or liabilities of the transferee at the time appointed by the court for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-7-1-b"><num>(b)</num><content><p>the provisions of that scheme in relation to that property, or those interests, rights or liabilities, have effect from that time.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-7-2"><num>(2)</num><intro><p>In this paragraph “<term refersTo="#term-the-transferee" eId="term-the-transferee">the transferee</term>” means—</p></intro><level class="para1" eId="schedule-7-paragraph-7-2-a"><num>(a)</num><content><p>in relation to property, rights or liabilities transferred by an FMI transfer scheme, the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-7-2-b"><num>(b)</num><content><p>in relation to interests, rights or liabilities created by such a scheme, the person in whose favour, or in relation to whom, they are created.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-subsequent-modification-of-scheme"><heading><i>Subsequent modification of scheme</i></heading><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-7-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-2"><num>(2)</num><content><p>The notice must specify the time at which it is to take effect (the “modification time”).</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-4"><num>(4)</num><intro><p>Those modifications may make—</p></intro><level class="para1" eId="schedule-7-paragraph-8-4-a"><num>(a)</num><content><p>any provision that could have been included in the scheme when it took effect at the time appointed for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-4-aa"><num>(aa)</num><content><p>transitional provision in connection with provision falling within paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-5"><num>(5)</num><intro><p>In deciding whether to modify an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-8-5-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-5-b"><num>(b)</num><content><p>any effect that the modification is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-6"><num>(6)</num><content><p>Before modifying an FMI transfer scheme that has taken effect, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-provision-relating-to-foreign-property"><heading><i>Provision relating to foreign property</i></heading><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-7-paragraph-9-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision about—</p></intro><level class="para1" eId="schedule-7-paragraph-9-1-a"><num>(a)</num><content><p>the transfer of foreign property, right and liabilities, and</p></content></level><level class="para1" eId="schedule-7-paragraph-9-1-b"><num>(b)</num><content><p>the creation of foreign property, rights and liabilities.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-9-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-application-of-schedule-to-transfers-to-subsidiaries"><heading><i>Application of Schedule to transfers to subsidiaries</i></heading><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-10-a"><num>(a)</num><content><p>paragraph 4(1)(a) were omitted, and</p></content></level><level class="para1" eId="schedule-7-paragraph-10-b"><num>(b)</num><content><p><mod>in paragraph 4(6), for the words from “both” onwards there were substituted <quotedText>“
the old company has consented may be made
”</quotedText>.</mod></p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-8"><num>SCHEDULE 8<authorialNote class="referenceNote"><p>
Section 129</p></authorialNote></num><heading>Functions of FCA under competition legislation</heading><part eId="schedule-8-part-1"><num><b>PART 1</b></num><heading>Amendments of Financial Services and Markets Act 2000</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><content><p>Part 16A of FSMA 2000 (consumer protection and competition) is amended as follows.</p></content></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><content><p>Omit section 234H (power of FCA to make request to Office of Fair Trading).</p></content></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 234H insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>234I</num><heading>The FCA's functions under Part 4 of the Enterprise Act 2002</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies (“the concurrent functions”) are to be concurrent functions of the FCA and the Competition and Markets Authority (referred to in this Part as “<term refersTo="#term-the-cma">the CMA</term>”).</p></content></subsection><subsection><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1"><num>(b)</num><content><p>relate to the provision of financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>section 171 (duty to publish guidance).</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1"><num>(a)</num><content><p>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 FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 234M of this Act.</p></content></level></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to section 166 or 171 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section 130A of the Enterprise Act 2002 has effect in relation to the FCA by virtue of subsections (1) and (2) as if—</p></intro><level class="para1"><num>(a)</num><content><p>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 acquisition or provision in the United Kingdom of financial services, and</p></content></level><level class="para1"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection><num>(7)</num><content><p>Before the CMA or the FCA first exercises any of the concurrent functions in relation to any matter, it must consult the other.</p></content></subsection><subsection><num>(8)</num><content><p>Neither the CMA nor the FCA 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.</p></content></subsection></section><section><num>234J</num><heading>The FCA's functions under the Competition Act 1998</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies are to be concurrent functions of the FCA and the CMA.</p></content></subsection><subsection><num>(2)</num><intro><p>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 the provision of financial services—</p></intro><level class="para1"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act,</p></content></level><level class="para1"><num>(c)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in Article 101(1) of the Treaty on the Functioning of the European Union, and</p></content></level><level class="para1"><num>(d)</num><content><p>conduct which amounts to abuse of the kind mentioned in Article 102 of the Treaty on the Functioning of the European Union.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following provisions of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection><num>(4)</num><content><p>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 are to be read as including references to the FCA.</p></content></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to sections 31D(1) to (6), 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection></section><section><num>234K</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection><num>(1)</num><content><p>Before exercising a power listed in subsection (3), the FCA must consider whether it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(2)</num><content><p>The FCA must not exercise such a power if it considers that it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(3)</num><intro><p>Those powers are—</p></intro><level class="para1"><num>(a)</num><content><p>the power under section 55J(2) to vary or cancel a Part 4A permission;</p></content></level><level class="para1"><num>(b)</num><content><p>the power under section 55L to impose a requirement on an authorised person with a Part 4A permission, or to vary a requirement imposed under that section;</p></content></level><level class="para1"><num>(c)</num><content><p>the power to take action under section 88E;</p></content></level><level class="para1"><num>(d)</num><content><p>the power to take action under section 89U;</p></content></level><level class="para1"><num>(e)</num><content><p>the power to give a direction under section 192C;</p></content></level><level class="para1"><num>(f)</num><content><p>the power to impose a requirement under section 196.</p></content></level></subsection></section><section><num>234L</num><heading>Provision of information and assistance to a CMA group</heading><subsection><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the FCA must give the CMA group—</p></intro><level class="para1"><num>(a)</num><content><p>any relevant information which the FCA has in its possession, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection><num>(2)</num><content><p>A “relevant investigation” is an investigation carried out on a reference made by the FCA under section 131 of the Enterprise Act 2002 by virtue of section 234I.</p></content></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1"><num>(b)</num><intro><p>which—</p></intro><level class="para2"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the FCA's opinion, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section><section><num>234M</num><heading>Function of keeping market under review</heading><subsection><num>(1)</num><content><p>For the purpose of the functions conferred on it by sections 234I to 234L the FCA is to have the function of keeping under review the market for financial services.</p></content></subsection><subsection><num>(2)</num><content><p>The function conferred by subsection (1) is to be carried out with a view to (among other things) ensuring that the FCA has sufficient information to take informed decisions and to carry out its other functions effectively.</p></content></subsection></section><section><num>234N</num><heading>Exclusion of general duties</heading><subsection><num>(1)</num><content><p>Section 1B (the FCA's general duties) does not apply in relation to anything done by the FCA in the carrying out of its functions by virtue of sections 234I to 234L.</p></content></subsection><subsection><num>(2)</num><content><p>But in the carrying out of any functions by virtue of sections 234I to 234L, the FCA may have regard to any of the matters in respect of which a duty is imposed by section 1B if it is a matter to which the CMA is entitled to have regard in the carrying out of those functions.</p></content></subsection></section><section><num>234O</num><heading>Supplementary provision</heading><subsection><num>(1)</num><content><p>If any question arises as to whether, by virtue of section 234I or 234J, any functions fall to be, or are capable of being, carried out by the FCA in relation to any particular case, that question is to be referred to, and determined by, the Treasury.</p></content></subsection><subsection><num>(2)</num><content><p>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 FCA on the ground that it should have been done by or in relation to the CMA.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (3)(a), after “55I” insert <quotedText>“
, a power conferred on it by sections 234I to 234M
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p><mod>In section 348 of FSMA 2000 (restrictions on disclosure of confidential information by FCA, PRA <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content><p>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 FCA under the Competition Act 1998 or the Enterprise Act 2002 by virtue of Part 16A of this Act.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 354A of FSMA 2000 (FCA's duty to co-operate with others), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Subsection (1) does not apply in relation to the Competition and Markets Authority in a case where the FCA has made a reference under section 131 of the Enterprise Act 2002 as a result of section 234I (but see section 234L).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><content><p><mod>In paragraph 8 (arrangements for discharging functions), after sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5)</num><content><p>In respect of the exercise of a function under Part 1 of the Competition Act 1998, the power in sub-paragraph (1) is subject to provision in rules made under section 51 of that Act by virtue of paragraph 1A of Schedule 9 to that Act.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><content><p><mod>In paragraph 23 (fees), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2A)</num><content><p>The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part><part eId="schedule-8-part-2"><num><b>PART 2</b></num><heading>Amendments of other legislation</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-company-directors-disqualification-act-1986"><heading><i>Company Directors Disqualification Act 1986</i></heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-competition-act-1998"><heading><i>Competition Act 1998</i></heading><paragraph eId="schedule-8-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-act-2002"><heading><i>Enterprise Act 2002</i></heading><paragraph eId="schedule-8-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-8-paragraph-10-1"><num>(1)</num><content><p>Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (7), after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ea)</num><content><p>in relation to the Financial Conduct Authority, section 234I of the Financial Services and Markets Act 2000;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (8), after “the Office of Rail Regulation,” insert <quotedText>“
the Financial Conduct Authority,
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-and-regulatory-reform-act-2013"><heading><i>Enterprise and Regulatory Reform Act 2013</i></heading><paragraph eId="schedule-8-paragraph-11" class="schProv1"><num>11</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-12" class="schProv1"><num>12</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer></part></hcontainer>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-part-1"><num><b>PART 1</b></num><heading>Amendments of Financial Services and Markets Act 2000</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><content><p>Part 16A of FSMA 2000 (consumer protection and competition) is amended as follows.</p></content></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><content><p>Omit section 234H (power of FCA to make request to Office of Fair Trading).</p></content></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 234H insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>234I</num><heading>The FCA's functions under Part 4 of the Enterprise Act 2002</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies (“the concurrent functions”) are to be concurrent functions of the FCA and the Competition and Markets Authority (referred to in this Part as “<term refersTo="#term-the-cma">the CMA</term>”).</p></content></subsection><subsection><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1"><num>(b)</num><content><p>relate to the provision of financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>section 171 (duty to publish guidance).</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1"><num>(a)</num><content><p>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 FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 234M of this Act.</p></content></level></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to section 166 or 171 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section 130A of the Enterprise Act 2002 has effect in relation to the FCA by virtue of subsections (1) and (2) as if—</p></intro><level class="para1"><num>(a)</num><content><p>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 acquisition or provision in the United Kingdom of financial services, and</p></content></level><level class="para1"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection><num>(7)</num><content><p>Before the CMA or the FCA first exercises any of the concurrent functions in relation to any matter, it must consult the other.</p></content></subsection><subsection><num>(8)</num><content><p>Neither the CMA nor the FCA 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.</p></content></subsection></section><section><num>234J</num><heading>The FCA's functions under the Competition Act 1998</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies are to be concurrent functions of the FCA and the CMA.</p></content></subsection><subsection><num>(2)</num><intro><p>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 the provision of financial services—</p></intro><level class="para1"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act,</p></content></level><level class="para1"><num>(c)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in Article 101(1) of the Treaty on the Functioning of the European Union, and</p></content></level><level class="para1"><num>(d)</num><content><p>conduct which amounts to abuse of the kind mentioned in Article 102 of the Treaty on the Functioning of the European Union.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following provisions of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection><num>(4)</num><content><p>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 are to be read as including references to the FCA.</p></content></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to sections 31D(1) to (6), 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection></section><section><num>234K</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection><num>(1)</num><content><p>Before exercising a power listed in subsection (3), the FCA must consider whether it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(2)</num><content><p>The FCA must not exercise such a power if it considers that it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(3)</num><intro><p>Those powers are—</p></intro><level class="para1"><num>(a)</num><content><p>the power under section 55J(2) to vary or cancel a Part 4A permission;</p></content></level><level class="para1"><num>(b)</num><content><p>the power under section 55L to impose a requirement on an authorised person with a Part 4A permission, or to vary a requirement imposed under that section;</p></content></level><level class="para1"><num>(c)</num><content><p>the power to take action under section 88E;</p></content></level><level class="para1"><num>(d)</num><content><p>the power to take action under section 89U;</p></content></level><level class="para1"><num>(e)</num><content><p>the power to give a direction under section 192C;</p></content></level><level class="para1"><num>(f)</num><content><p>the power to impose a requirement under section 196.</p></content></level></subsection></section><section><num>234L</num><heading>Provision of information and assistance to a CMA group</heading><subsection><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the FCA must give the CMA group—</p></intro><level class="para1"><num>(a)</num><content><p>any relevant information which the FCA has in its possession, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection><num>(2)</num><content><p>A “relevant investigation” is an investigation carried out on a reference made by the FCA under section 131 of the Enterprise Act 2002 by virtue of section 234I.</p></content></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1"><num>(b)</num><intro><p>which—</p></intro><level class="para2"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the FCA's opinion, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section><section><num>234M</num><heading>Function of keeping market under review</heading><subsection><num>(1)</num><content><p>For the purpose of the functions conferred on it by sections 234I to 234L the FCA is to have the function of keeping under review the market for financial services.</p></content></subsection><subsection><num>(2)</num><content><p>The function conferred by subsection (1) is to be carried out with a view to (among other things) ensuring that the FCA has sufficient information to take informed decisions and to carry out its other functions effectively.</p></content></subsection></section><section><num>234N</num><heading>Exclusion of general duties</heading><subsection><num>(1)</num><content><p>Section 1B (the FCA's general duties) does not apply in relation to anything done by the FCA in the carrying out of its functions by virtue of sections 234I to 234L.</p></content></subsection><subsection><num>(2)</num><content><p>But in the carrying out of any functions by virtue of sections 234I to 234L, the FCA may have regard to any of the matters in respect of which a duty is imposed by section 1B if it is a matter to which the CMA is entitled to have regard in the carrying out of those functions.</p></content></subsection></section><section><num>234O</num><heading>Supplementary provision</heading><subsection><num>(1)</num><content><p>If any question arises as to whether, by virtue of section 234I or 234J, any functions fall to be, or are capable of being, carried out by the FCA in relation to any particular case, that question is to be referred to, and determined by, the Treasury.</p></content></subsection><subsection><num>(2)</num><content><p>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 FCA on the ground that it should have been done by or in relation to the CMA.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (3)(a), after “55I” insert <quotedText>“
, a power conferred on it by sections 234I to 234M
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p><mod>In section 348 of FSMA 2000 (restrictions on disclosure of confidential information by FCA, PRA <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content><p>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 FCA under the Competition Act 1998 or the Enterprise Act 2002 by virtue of Part 16A of this Act.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 354A of FSMA 2000 (FCA's duty to co-operate with others), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Subsection (1) does not apply in relation to the Competition and Markets Authority in a case where the FCA has made a reference under section 131 of the Enterprise Act 2002 as a result of section 234I (but see section 234L).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><content><p><mod>In paragraph 8 (arrangements for discharging functions), after sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5)</num><content><p>In respect of the exercise of a function under Part 1 of the Competition Act 1998, the power in sub-paragraph (1) is subject to provision in rules made under section 51 of that Act by virtue of paragraph 1A of Schedule 9 to that Act.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><content><p><mod>In paragraph 23 (fees), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2A)</num><content><p>The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><content><p>Part 16A of FSMA 2000 (consumer protection and competition) is amended as follows.</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><content><p>Omit section 234H (power of FCA to make request to Office of Fair Trading).</p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 234H insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>234I</num><heading>The FCA's functions under Part 4 of the Enterprise Act 2002</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies (“the concurrent functions”) are to be concurrent functions of the FCA and the Competition and Markets Authority (referred to in this Part as “<term refersTo="#term-the-cma">the CMA</term>”).</p></content></subsection><subsection><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1"><num>(b)</num><content><p>relate to the provision of financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>section 171 (duty to publish guidance).</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1"><num>(a)</num><content><p>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 FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 234M of this Act.</p></content></level></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to section 166 or 171 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section 130A of the Enterprise Act 2002 has effect in relation to the FCA by virtue of subsections (1) and (2) as if—</p></intro><level class="para1"><num>(a)</num><content><p>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 acquisition or provision in the United Kingdom of financial services, and</p></content></level><level class="para1"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection><num>(7)</num><content><p>Before the CMA or the FCA first exercises any of the concurrent functions in relation to any matter, it must consult the other.</p></content></subsection><subsection><num>(8)</num><content><p>Neither the CMA nor the FCA 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.</p></content></subsection></section><section><num>234J</num><heading>The FCA's functions under the Competition Act 1998</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies are to be concurrent functions of the FCA and the CMA.</p></content></subsection><subsection><num>(2)</num><intro><p>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 the provision of financial services—</p></intro><level class="para1"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act,</p></content></level><level class="para1"><num>(c)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in Article 101(1) of the Treaty on the Functioning of the European Union, and</p></content></level><level class="para1"><num>(d)</num><content><p>conduct which amounts to abuse of the kind mentioned in Article 102 of the Treaty on the Functioning of the European Union.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following provisions of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection><num>(4)</num><content><p>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 are to be read as including references to the FCA.</p></content></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to sections 31D(1) to (6), 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection></section><section><num>234K</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection><num>(1)</num><content><p>Before exercising a power listed in subsection (3), the FCA must consider whether it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(2)</num><content><p>The FCA must not exercise such a power if it considers that it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(3)</num><intro><p>Those powers are—</p></intro><level class="para1"><num>(a)</num><content><p>the power under section 55J(2) to vary or cancel a Part 4A permission;</p></content></level><level class="para1"><num>(b)</num><content><p>the power under section 55L to impose a requirement on an authorised person with a Part 4A permission, or to vary a requirement imposed under that section;</p></content></level><level class="para1"><num>(c)</num><content><p>the power to take action under section 88E;</p></content></level><level class="para1"><num>(d)</num><content><p>the power to take action under section 89U;</p></content></level><level class="para1"><num>(e)</num><content><p>the power to give a direction under section 192C;</p></content></level><level class="para1"><num>(f)</num><content><p>the power to impose a requirement under section 196.</p></content></level></subsection></section><section><num>234L</num><heading>Provision of information and assistance to a CMA group</heading><subsection><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the FCA must give the CMA group—</p></intro><level class="para1"><num>(a)</num><content><p>any relevant information which the FCA has in its possession, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection><num>(2)</num><content><p>A “relevant investigation” is an investigation carried out on a reference made by the FCA under section 131 of the Enterprise Act 2002 by virtue of section 234I.</p></content></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1"><num>(b)</num><intro><p>which—</p></intro><level class="para2"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the FCA's opinion, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section><section><num>234M</num><heading>Function of keeping market under review</heading><subsection><num>(1)</num><content><p>For the purpose of the functions conferred on it by sections 234I to 234L the FCA is to have the function of keeping under review the market for financial services.</p></content></subsection><subsection><num>(2)</num><content><p>The function conferred by subsection (1) is to be carried out with a view to (among other things) ensuring that the FCA has sufficient information to take informed decisions and to carry out its other functions effectively.</p></content></subsection></section><section><num>234N</num><heading>Exclusion of general duties</heading><subsection><num>(1)</num><content><p>Section 1B (the FCA's general duties) does not apply in relation to anything done by the FCA in the carrying out of its functions by virtue of sections 234I to 234L.</p></content></subsection><subsection><num>(2)</num><content><p>But in the carrying out of any functions by virtue of sections 234I to 234L, the FCA may have regard to any of the matters in respect of which a duty is imposed by section 1B if it is a matter to which the CMA is entitled to have regard in the carrying out of those functions.</p></content></subsection></section><section><num>234O</num><heading>Supplementary provision</heading><subsection><num>(1)</num><content><p>If any question arises as to whether, by virtue of section 234I or 234J, any functions fall to be, or are capable of being, carried out by the FCA in relation to any particular case, that question is to be referred to, and determined by, the Treasury.</p></content></subsection><subsection><num>(2)</num><content><p>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 FCA on the ground that it should have been done by or in relation to the CMA.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (3)(a), after “55I” insert <quotedText>“
, a power conferred on it by sections 234I to 234M
”</quotedText>.</mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p><mod>In section 348 of FSMA 2000 (restrictions on disclosure of confidential information by FCA, PRA <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content><p>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 FCA under the Competition Act 1998 or the Enterprise Act 2002 by virtue of Part 16A of this Act.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 354A of FSMA 2000 (FCA's duty to co-operate with others), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Subsection (1) does not apply in relation to the Competition and Markets Authority in a case where the FCA has made a reference under section 131 of the Enterprise Act 2002 as a result of section 234I (but see section 234L).</p></content></subsection></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><content><p><mod>In paragraph 8 (arrangements for discharging functions), after sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5)</num><content><p>In respect of the exercise of a function under Part 1 of the Competition Act 1998, the power in sub-paragraph (1) is subject to provision in rules made under section 51 of that Act by virtue of paragraph 1A of Schedule 9 to that Act.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><content><p><mod>In paragraph 23 (fees), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2A)</num><content><p>The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-8-part-2"><num><b>PART 2</b></num><heading>Amendments of other legislation</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-company-directors-disqualification-act-1986"><heading><i>Company Directors Disqualification Act 1986</i></heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-competition-act-1998"><heading><i>Competition Act 1998</i></heading><paragraph eId="schedule-8-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-act-2002"><heading><i>Enterprise Act 2002</i></heading><paragraph eId="schedule-8-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-8-paragraph-10-1"><num>(1)</num><content><p>Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (7), after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ea)</num><content><p>in relation to the Financial Conduct Authority, section 234I of the Financial Services and Markets Act 2000;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (8), after “the Office of Rail Regulation,” insert <quotedText>“
the Financial Conduct Authority,
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-and-regulatory-reform-act-2013"><heading><i>Enterprise and Regulatory Reform Act 2013</i></heading><paragraph eId="schedule-8-paragraph-11" class="schProv1"><num>11</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-12" class="schProv1"><num>12</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-company-directors-disqualification-act-1986"><heading><i>Company Directors Disqualification Act 1986</i></heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-competition-act-1998"><heading><i>Competition Act 1998</i></heading><paragraph eId="schedule-8-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-act-2002"><heading><i>Enterprise Act 2002</i></heading><paragraph eId="schedule-8-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-8-paragraph-10-1"><num>(1)</num><content><p>Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (7), after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ea)</num><content><p>in relation to the Financial Conduct Authority, section 234I of the Financial Services and Markets Act 2000;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (8), after “the Office of Rail Regulation,” insert <quotedText>“
the Financial Conduct Authority,
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-and-regulatory-reform-act-2013"><heading><i>Enterprise and Regulatory Reform Act 2013</i></heading><paragraph eId="schedule-8-paragraph-11" class="schProv1"><num>11</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-12" class="schProv1"><num>12</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-9"><num>SCHEDULE 9<authorialNote class="referenceNote"><p>
Section 138</p></authorialNote></num><heading>Building societies</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-introductory"><heading><i>Introductory</i></heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The Building Societies Act 1986 is amended as follows.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-exclusion-of-small-business-deposits-from-funding-limit"><heading><i>Exclusion of small business deposits from funding limit</i></heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>Section 7 (the funding limit) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>subject to subsection (3A), the principal of, and interest accrued on, sums deposited with the society or any subsidiary undertaking of the society by a small business (see subsection (10));</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in the absence of subsection (3)(aa), be the value of X on that day.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6ZA)</num><content><p>Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively presumed for the purposes of this section to be a small business.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><content><p><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-small-business">small business</term>” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant financial year of less than £1,000,000.</p></content></subsection><subsection><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1"><num>(a)</num><content><p>the “<term refersTo="#term-relevant-financial-year">relevant financial year</term>”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to a building society, means the last financial year ending before that day;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-turnover">turnover</term>”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;</p></content></level><level class="para1"><num>(c)</num><content><p>in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency, calculated as at the last day of that year.</p></content></level></subsection><subsection><num>(12)</num><content><p>The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10) and (11)(c).</p></content></subsection><subsection><num>(13)</num><content><p>A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><mod>In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/860), in paragraph 3, for “the modification required by this article” substitute <quotedText>“
the modifications required by this article and by section 7(3)(aa)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-ability-to-create-floating-charges"><heading><i>Ability to create floating charges</i></heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>Omit section 9B (restriction on creation of floating charges).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><intro><p>In Schedule 15A (application of other companies insolvency legislation to building societies), omit the following paragraphs—</p></intro><level class="para1" eId="schedule-9-paragraph-4-2-a"><num>(a)</num><content><p>paragraph 18 (which modifies section 15 of the Insolvency Act 1986);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-b"><num>(b)</num><content><p>paragraph 20 (which modifies section 19 of that Act);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-c"><num>(c)</num><content><p>paragraph 40 (which modifies Article 28 of the Insolvency (Northern Ireland) Order 1989);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-d"><num>(d)</num><content><p>paragraph 42 (which modifies Article 31 of that Order).</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-4-3"><num>(3)</num><intro><p>In consequence of the amendment made by sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-4-3-a"><num>(a)</num><content><p><mod>in section 1(1A)(b), for “, 9A and 9B” substitute <quotedText>“
and 9A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-b"><num>(b)</num><content><p>in the Building Societies Act 1997, omit section 11;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-c"><num>(c)</num><content><p><mod>in section 11(3) of the Banking (Special Provisions) Act 2008, for paragraph (c) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>sections 8 and 9A of the Building Societies Act 1986 (restrictions on raising funds and borrowing and on transactions involving derivative instruments <abbr title="Et cetera" xml:lang="la">etc</abbr>);</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-d"><num>(d)</num><content><p>in section 251 of the Banking Act 2009, omit subsection (7);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-e"><num>(e)</num><content><p>in the Financial Services Act 2012, omit section 55.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-annual-business-statements"><heading><i>Annual business statements</i></heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p>Section 74 (duty of directors to prepare annual business statement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>In subsection (4), omit the words from “and other officers” to “them”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><content><p>In subsection (8), omit “or other officer”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-summary-financial-statements"><heading><i>Summary financial statements</i></heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>Section 76 (summary financial statement for members and depositors) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p><mod>After subsection (8A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8AA)</num><intro><p>The society shall also—</p></intro><level class="para1"><num>(a)</num><content><p>publish the summary financial statement and (where applicable) the auditor's report on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>ensure that the statement and (where applicable) the report may be accessed on the web site until the publication of the next summary financial statement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (8D) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8E)</num><content><p>If, at any time during the period beginning with the publication of the summary financial statement and ending with the publication of the next summary financial statement, an individual for the first time subscribes for shares in the society, the society shall at that time notify the individual of the information in subsection (8C)(c)(i) to (iii).</p></content></subsection><subsection><num>(8F)</num><content><p>In a case where subsection (8E) applies, the society is not required under section 115B (right to hard copy version) to send the individual a version of the summary financial statement or (where applicable) the auditor's report in hard copy form (within the meaning of that section).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>Omit subsections (9) to (9E).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (11), for “subsection (9)” substitute <quotedText>“
subsection (8AA) or (8E)
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><intro><p>In consequence of the amendments made by paragraph 6—</p></intro><level class="para1" eId="schedule-9-paragraph-7-a"><num>(a)</num><content><p><mod>in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute <quotedText>“
subsection (8) of section 76 extends
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-7-b"><num>(b)</num><content><p>in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-transfers-of-business-distributions-and-share-rights"><heading><i>Transfers of business: distributions and share rights</i></heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>Section 100 (regulated terms <abbr title="Et cetera" xml:lang="la">etc</abbr>: distributions and share rights) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p><mod>For subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>The terms of a transfer of a society's business may confer a right to acquire shares in the successor on a member of the society only if the member—</p></intro><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, holds deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><wrapUp><p>and it is unlawful for any right in relation to shares to be conferred in contravention of this subsection.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p><mod>In subsection (9), for the words from “who” to “and” substitute<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>who—</p><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, hold deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><p>and</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-methods-of-communicating-with-members-etc"><heading><i>Methods of communicating with members <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><content><p><mod>After section 115 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>115A</num><heading>Deemed agreement to use of web site</heading><subsection><num>(1)</num><intro><p>For the purposes of this Act, a person is to be taken to have agreed with a building society to access a document, information or facility on a web site if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has been asked individually by the society to agree to access documents, information or facilities generally, or documents, information or facilities of the description in question, on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>the society has not received a response within the period of 28 days beginning with the date on which the society's request was received.</p></content></level><wrapUp><p>This is subject to subsections (2) to (4).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A person is not to be taken to have so agreed if the society's request—</p></intro><level class="para1"><num>(a)</num><content><p>did not state clearly what the effect of a failure to respond would be, or</p></content></level><level class="para1"><num>(b)</num><content><p>was sent less than 12 months after a previous request made to the person for the purposes of this section in respect of the same or a similar description of document, information or facility.</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who is taken to have made an agreement by virtue of subsection (1) may revoke the agreement.</p></content></subsection><subsection><num>(4)</num><intro><p>Subsection (1) does not apply in relation to the following documents—</p></intro><level class="para1"><num>(a)</num><content><p>a statement required to be sent to members by paragraph 1(1) of Schedule 16 (statements in connection with proposed mergers);</p></content></level><level class="para1"><num>(b)</num><content><p>a merger statement (within the meaning of Part 2 of that Schedule) required to be sent to members by paragraph 3 of that Schedule;</p></content></level><level class="para1"><num>(c)</num><content><p>a transfer statement or transfer summary (within the meaning of Part 1 of Schedule 17) required to be sent to members by paragraph 4(1) or (2) of that Schedule;</p></content></level><level class="para1"><num>(d)</num><content><p>a transfer proposal notification (within the meaning of Part 1A of Schedule 17) required to be sent to members by paragraph 5B(1) of that Schedule.</p></content></level></subsection></section><section><num>115B</num><heading>Right to hard copy version</heading><subsection><num>(1)</num><content><p>Where a person has received a document or information from a building society otherwise than in hard copy form, the person is entitled to require the society to send the person a version of the document or information in hard copy form.</p></content></subsection><subsection><num>(2)</num><content><p>The society must send the document or information in hard copy form within 21 days of receipt of the request from the person.</p></content></subsection><subsection><num>(3)</num><content><p>The society may not make a charge for providing the document or information in that form.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (1) does not apply if the recipient of the document or information is the FCA or the PRA.</p></content></subsection><subsection><num>(5)</num><content><p>A building society that fails to comply with this section is to be treated as having contravened rules made under section 137A of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section a person is treated as receiving a document or information from a building society if—</p></intro><level class="para1"><num>(a)</num><content><p>the society is required by this Act to send the document or information to the person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the requirement to send it is treated as satisfied.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>a document or information is sent or supplied in hard copy form if it is sent or supplied in a paper copy or similar form capable of being read, and</p></content></level><level class="para1"><num>(b)</num><content><p>a document or information can be read only if it can be read with the naked eye, or (to the extent that it consists of images) it can be seen with the naked eye.</p></content></level></subsection></section><section><num>115C</num><heading>Other agreed forms of communication</heading><subsection><num>(1)</num><content><p>A document or information that is sent or supplied by a building society otherwise than in hard copy form or electronically or by means of a web site is validly sent or supplied if it is sent or supplied in a form or manner that has been agreed by the intended recipient.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section “<term refersTo="#term-hard-copy-form">hard copy form</term>” is to be read in accordance with section 115B(7).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p>In the following provisions, omit “, in a manner agreed between him and the society,”—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(7B)(c),</p></item><item><p>section 61(7D)(c),</p></item><item><p>section 68(6B)(c),</p></item><item><p>section 69(15B)(c),</p></item><item><p>section 76(8C)(c).</p></item></blockList></content></paragraph><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><content><p>In section 81(3B)(c), omit “, in a manner agreed for the purpose between him and the society,”.</p></content></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p>Schedule 2 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p>In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between him and the society for that purpose,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p>In paragraph 24(1B)(b), omit “in a manner agreed between the society and that member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-5"><num>(5)</num><content><p>In paragraph 32(2D)(c), omit “, in a manner agreed between the society and the member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-6"><num>(6)</num><content><p>In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between him and the society”.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><content><p>In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner agreed between the society and that person,”.</p></content></paragraph><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-9-paragraph-14-1"><num>(1)</num><content><p>Schedule 11 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-2"><num>(2)</num><content><p>In paragraph 4(9C)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-3"><num>(3)</num><content><p><mod>In paragraph 7(7C)(c), for “in a manner agreed between the society and that person, he” substitute <quotedText>“
the person
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-4"><num>(4)</num><content><p>In paragraph 8(3B)(c), omit “, in a manner agreed between him and the society for the purpose,”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-financial-year"><heading><i>Financial year</i></heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p>Section 117 (financial year of building societies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><content><p>A building society's financial years (apart from its final financial year) are determined according to its year-end date in each calendar year.</p><p>For provision about a building society's final financial year, see subsection (1G).</p></content></subsection><subsection><num>(1A)</num><intro><p>The year-end date of a building society established before 25th August 1894 is—</p></intro><level class="para1"><num>(a)</num><content><p>the date up to which, as at 1st January 1987, the accounts of the society were annually made up, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the society has, at any time before the day on which subsection (1) comes into force (“<term refersTo="#term-the-relevant-day">the relevant day</term>”), altered its financial year in exercise of a power within subsection (1B), 31st December.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>The powers referred to in subsection (1A)(b) are—</p></intro><level class="para1"><num>(a)</num><content><p>the power conferred by section 70(2) of the Building Societies Act 1960,</p></content></level><level class="para1"><num>(b)</num><content><p>the power conferred by section 128(2) of the Building Societies Act 1962, and</p></content></level><level class="para1"><num>(c)</num><content><p>the power conferred by subsection (3) of this section (as it had effect immediately before the relevant day).</p></content></level></subsection><subsection><num>(1C)</num><content><p>The year-end date of a building society established on or after 25th August 1894 and before the relevant day is 31st December.</p></content></subsection><subsection><num>(1D)</num><content><p>The year-end date of a building society established on or after the relevant day is the last day of the month in which the anniversary of its establishment falls.</p></content></subsection><subsection><num>(1E)</num><content><p>The financial year of a building society established before the relevant day is the period of 12 months ending with the year-end date of the society (but see subsection (1G)).</p></content></subsection><subsection><num>(1F)</num><intro><p>In the case of a building society established on or after the relevant day—</p></intro><level class="para1"><num>(a)</num><content><p>the initial financial year of the society shall be the period of more than 6 months, but not more than 18 months, beginning with the date of its establishment and ending with its year-end date, and</p></content></level><level class="para1"><num>(b)</num><content><p>its subsequent financial years are successive periods of 12 months beginning immediately after the end of the previous financial year and ending with its year-end date (but see subsection (1G)).</p></content></level></subsection><subsection><num>(1G)</num><content><p>The final financial year of a building society is a period of less than 12 months that begins immediately after the end of the previous financial year and ends with the date as at which the society makes up its final accounts.</p></content></subsection><subsection><num>(1H)</num><content><p>This section has effect subject to section 117A (alteration of financial year).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><content><p>Omit subsections (2) and (3).</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p><mod>After section 117 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>117A</num><heading>Alteration of financial year</heading><subsection><num>(1)</num><content><p>A building society may by notice given to the FCA specify a new year-end date.</p></content></subsection><subsection><num>(2)</num><intro><p>A notice given under subsection (1) has effect in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>the financial year in which the notice is given (“the current financial year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>subsequent financial years.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The notice must state whether the current financial year—</p></intro><level class="para1"><num>(a)</num><content><p>is to be shortened, so as to come to an end on the first occasion on which the new year-end date falls or fell after the beginning of the current financial year, or</p></content></level><level class="para1"><num>(b)</num><content><p>is to be extended, so as to come to an end on the second occasion on which that date falls or fell after the beginning of the current financial year.</p></content></level></subsection><subsection><num>(4)</num><content><p>A notice extending a building society's financial year is not effective if given less than 5 years after the end of an earlier financial year of the society that was extended under this section.</p></content></subsection><subsection><num>(5)</num><content><p>A financial year of a building society may not be extended so as to exceed 18 months and a notice under subsection (1) is ineffective if the current financial year as extended in accordance with the notice would exceed that limit.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>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.</p></content></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-introductory"><heading><i>Introductory</i></heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The Building Societies Act 1986 is amended as follows.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-exclusion-of-small-business-deposits-from-funding-limit"><heading><i>Exclusion of small business deposits from funding limit</i></heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>Section 7 (the funding limit) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>subject to subsection (3A), the principal of, and interest accrued on, sums deposited with the society or any subsidiary undertaking of the society by a small business (see subsection (10));</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in the absence of subsection (3)(aa), be the value of X on that day.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6ZA)</num><content><p>Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively presumed for the purposes of this section to be a small business.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><content><p><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-small-business">small business</term>” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant financial year of less than £1,000,000.</p></content></subsection><subsection><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1"><num>(a)</num><content><p>the “<term refersTo="#term-relevant-financial-year">relevant financial year</term>”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to a building society, means the last financial year ending before that day;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-turnover">turnover</term>”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;</p></content></level><level class="para1"><num>(c)</num><content><p>in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency, calculated as at the last day of that year.</p></content></level></subsection><subsection><num>(12)</num><content><p>The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10) and (11)(c).</p></content></subsection><subsection><num>(13)</num><content><p>A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><mod>In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/860), in paragraph 3, for “the modification required by this article” substitute <quotedText>“
the modifications required by this article and by section 7(3)(aa)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-ability-to-create-floating-charges"><heading><i>Ability to create floating charges</i></heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>Omit section 9B (restriction on creation of floating charges).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><intro><p>In Schedule 15A (application of other companies insolvency legislation to building societies), omit the following paragraphs—</p></intro><level class="para1" eId="schedule-9-paragraph-4-2-a"><num>(a)</num><content><p>paragraph 18 (which modifies section 15 of the Insolvency Act 1986);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-b"><num>(b)</num><content><p>paragraph 20 (which modifies section 19 of that Act);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-c"><num>(c)</num><content><p>paragraph 40 (which modifies Article 28 of the Insolvency (Northern Ireland) Order 1989);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-d"><num>(d)</num><content><p>paragraph 42 (which modifies Article 31 of that Order).</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-4-3"><num>(3)</num><intro><p>In consequence of the amendment made by sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-4-3-a"><num>(a)</num><content><p><mod>in section 1(1A)(b), for “, 9A and 9B” substitute <quotedText>“
and 9A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-b"><num>(b)</num><content><p>in the Building Societies Act 1997, omit section 11;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-c"><num>(c)</num><content><p><mod>in section 11(3) of the Banking (Special Provisions) Act 2008, for paragraph (c) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>sections 8 and 9A of the Building Societies Act 1986 (restrictions on raising funds and borrowing and on transactions involving derivative instruments <abbr title="Et cetera" xml:lang="la">etc</abbr>);</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-d"><num>(d)</num><content><p>in section 251 of the Banking Act 2009, omit subsection (7);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-e"><num>(e)</num><content><p>in the Financial Services Act 2012, omit section 55.</p></content></level></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-annual-business-statements"><heading><i>Annual business statements</i></heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p>Section 74 (duty of directors to prepare annual business statement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>In subsection (4), omit the words from “and other officers” to “them”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><content><p>In subsection (8), omit “or other officer”.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-summary-financial-statements"><heading><i>Summary financial statements</i></heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>Section 76 (summary financial statement for members and depositors) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p><mod>After subsection (8A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8AA)</num><intro><p>The society shall also—</p></intro><level class="para1"><num>(a)</num><content><p>publish the summary financial statement and (where applicable) the auditor's report on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>ensure that the statement and (where applicable) the report may be accessed on the web site until the publication of the next summary financial statement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (8D) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8E)</num><content><p>If, at any time during the period beginning with the publication of the summary financial statement and ending with the publication of the next summary financial statement, an individual for the first time subscribes for shares in the society, the society shall at that time notify the individual of the information in subsection (8C)(c)(i) to (iii).</p></content></subsection><subsection><num>(8F)</num><content><p>In a case where subsection (8E) applies, the society is not required under section 115B (right to hard copy version) to send the individual a version of the summary financial statement or (where applicable) the auditor's report in hard copy form (within the meaning of that section).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>Omit subsections (9) to (9E).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (11), for “subsection (9)” substitute <quotedText>“
subsection (8AA) or (8E)
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><intro><p>In consequence of the amendments made by paragraph 6—</p></intro><level class="para1" eId="schedule-9-paragraph-7-a"><num>(a)</num><content><p><mod>in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute <quotedText>“
subsection (8) of section 76 extends
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-7-b"><num>(b)</num><content><p>in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.</p></content></level></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-transfers-of-business-distributions-and-share-rights"><heading><i>Transfers of business: distributions and share rights</i></heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>Section 100 (regulated terms <abbr title="Et cetera" xml:lang="la">etc</abbr>: distributions and share rights) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p><mod>For subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>The terms of a transfer of a society's business may confer a right to acquire shares in the successor on a member of the society only if the member—</p></intro><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, holds deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><wrapUp><p>and it is unlawful for any right in relation to shares to be conferred in contravention of this subsection.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p><mod>In subsection (9), for the words from “who” to “and” substitute<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>who—</p><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, hold deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><p>and</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-methods-of-communicating-with-members-etc"><heading><i>Methods of communicating with members <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><content><p><mod>After section 115 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>115A</num><heading>Deemed agreement to use of web site</heading><subsection><num>(1)</num><intro><p>For the purposes of this Act, a person is to be taken to have agreed with a building society to access a document, information or facility on a web site if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has been asked individually by the society to agree to access documents, information or facilities generally, or documents, information or facilities of the description in question, on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>the society has not received a response within the period of 28 days beginning with the date on which the society's request was received.</p></content></level><wrapUp><p>This is subject to subsections (2) to (4).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A person is not to be taken to have so agreed if the society's request—</p></intro><level class="para1"><num>(a)</num><content><p>did not state clearly what the effect of a failure to respond would be, or</p></content></level><level class="para1"><num>(b)</num><content><p>was sent less than 12 months after a previous request made to the person for the purposes of this section in respect of the same or a similar description of document, information or facility.</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who is taken to have made an agreement by virtue of subsection (1) may revoke the agreement.</p></content></subsection><subsection><num>(4)</num><intro><p>Subsection (1) does not apply in relation to the following documents—</p></intro><level class="para1"><num>(a)</num><content><p>a statement required to be sent to members by paragraph 1(1) of Schedule 16 (statements in connection with proposed mergers);</p></content></level><level class="para1"><num>(b)</num><content><p>a merger statement (within the meaning of Part 2 of that Schedule) required to be sent to members by paragraph 3 of that Schedule;</p></content></level><level class="para1"><num>(c)</num><content><p>a transfer statement or transfer summary (within the meaning of Part 1 of Schedule 17) required to be sent to members by paragraph 4(1) or (2) of that Schedule;</p></content></level><level class="para1"><num>(d)</num><content><p>a transfer proposal notification (within the meaning of Part 1A of Schedule 17) required to be sent to members by paragraph 5B(1) of that Schedule.</p></content></level></subsection></section><section><num>115B</num><heading>Right to hard copy version</heading><subsection><num>(1)</num><content><p>Where a person has received a document or information from a building society otherwise than in hard copy form, the person is entitled to require the society to send the person a version of the document or information in hard copy form.</p></content></subsection><subsection><num>(2)</num><content><p>The society must send the document or information in hard copy form within 21 days of receipt of the request from the person.</p></content></subsection><subsection><num>(3)</num><content><p>The society may not make a charge for providing the document or information in that form.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (1) does not apply if the recipient of the document or information is the FCA or the PRA.</p></content></subsection><subsection><num>(5)</num><content><p>A building society that fails to comply with this section is to be treated as having contravened rules made under section 137A of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section a person is treated as receiving a document or information from a building society if—</p></intro><level class="para1"><num>(a)</num><content><p>the society is required by this Act to send the document or information to the person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the requirement to send it is treated as satisfied.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>a document or information is sent or supplied in hard copy form if it is sent or supplied in a paper copy or similar form capable of being read, and</p></content></level><level class="para1"><num>(b)</num><content><p>a document or information can be read only if it can be read with the naked eye, or (to the extent that it consists of images) it can be seen with the naked eye.</p></content></level></subsection></section><section><num>115C</num><heading>Other agreed forms of communication</heading><subsection><num>(1)</num><content><p>A document or information that is sent or supplied by a building society otherwise than in hard copy form or electronically or by means of a web site is validly sent or supplied if it is sent or supplied in a form or manner that has been agreed by the intended recipient.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section “<term refersTo="#term-hard-copy-form">hard copy form</term>” is to be read in accordance with section 115B(7).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p>In the following provisions, omit “, in a manner agreed between him and the society,”—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(7B)(c),</p></item><item><p>section 61(7D)(c),</p></item><item><p>section 68(6B)(c),</p></item><item><p>section 69(15B)(c),</p></item><item><p>section 76(8C)(c).</p></item></blockList></content></paragraph><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><content><p>In section 81(3B)(c), omit “, in a manner agreed for the purpose between him and the society,”.</p></content></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p>Schedule 2 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p>In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between him and the society for that purpose,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p>In paragraph 24(1B)(b), omit “in a manner agreed between the society and that member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-5"><num>(5)</num><content><p>In paragraph 32(2D)(c), omit “, in a manner agreed between the society and the member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-6"><num>(6)</num><content><p>In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between him and the society”.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><content><p>In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner agreed between the society and that person,”.</p></content></paragraph><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-9-paragraph-14-1"><num>(1)</num><content><p>Schedule 11 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-2"><num>(2)</num><content><p>In paragraph 4(9C)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-3"><num>(3)</num><content><p><mod>In paragraph 7(7C)(c), for “in a manner agreed between the society and that person, he” substitute <quotedText>“
the person
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-4"><num>(4)</num><content><p>In paragraph 8(3B)(c), omit “, in a manner agreed between him and the society for the purpose,”.</p></content></subparagraph></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-financial-year"><heading><i>Financial year</i></heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p>Section 117 (financial year of building societies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><content><p>A building society's financial years (apart from its final financial year) are determined according to its year-end date in each calendar year.</p><p>For provision about a building society's final financial year, see subsection (1G).</p></content></subsection><subsection><num>(1A)</num><intro><p>The year-end date of a building society established before 25th August 1894 is—</p></intro><level class="para1"><num>(a)</num><content><p>the date up to which, as at 1st January 1987, the accounts of the society were annually made up, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the society has, at any time before the day on which subsection (1) comes into force (“<term refersTo="#term-the-relevant-day">the relevant day</term>”), altered its financial year in exercise of a power within subsection (1B), 31st December.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>The powers referred to in subsection (1A)(b) are—</p></intro><level class="para1"><num>(a)</num><content><p>the power conferred by section 70(2) of the Building Societies Act 1960,</p></content></level><level class="para1"><num>(b)</num><content><p>the power conferred by section 128(2) of the Building Societies Act 1962, and</p></content></level><level class="para1"><num>(c)</num><content><p>the power conferred by subsection (3) of this section (as it had effect immediately before the relevant day).</p></content></level></subsection><subsection><num>(1C)</num><content><p>The year-end date of a building society established on or after 25th August 1894 and before the relevant day is 31st December.</p></content></subsection><subsection><num>(1D)</num><content><p>The year-end date of a building society established on or after the relevant day is the last day of the month in which the anniversary of its establishment falls.</p></content></subsection><subsection><num>(1E)</num><content><p>The financial year of a building society established before the relevant day is the period of 12 months ending with the year-end date of the society (but see subsection (1G)).</p></content></subsection><subsection><num>(1F)</num><intro><p>In the case of a building society established on or after the relevant day—</p></intro><level class="para1"><num>(a)</num><content><p>the initial financial year of the society shall be the period of more than 6 months, but not more than 18 months, beginning with the date of its establishment and ending with its year-end date, and</p></content></level><level class="para1"><num>(b)</num><content><p>its subsequent financial years are successive periods of 12 months beginning immediately after the end of the previous financial year and ending with its year-end date (but see subsection (1G)).</p></content></level></subsection><subsection><num>(1G)</num><content><p>The final financial year of a building society is a period of less than 12 months that begins immediately after the end of the previous financial year and ends with the date as at which the society makes up its final accounts.</p></content></subsection><subsection><num>(1H)</num><content><p>This section has effect subject to section 117A (alteration of financial year).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><content><p>Omit subsections (2) and (3).</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p><mod>After section 117 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>117A</num><heading>Alteration of financial year</heading><subsection><num>(1)</num><content><p>A building society may by notice given to the FCA specify a new year-end date.</p></content></subsection><subsection><num>(2)</num><intro><p>A notice given under subsection (1) has effect in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>the financial year in which the notice is given (“the current financial year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>subsequent financial years.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The notice must state whether the current financial year—</p></intro><level class="para1"><num>(a)</num><content><p>is to be shortened, so as to come to an end on the first occasion on which the new year-end date falls or fell after the beginning of the current financial year, or</p></content></level><level class="para1"><num>(b)</num><content><p>is to be extended, so as to come to an end on the second occasion on which that date falls or fell after the beginning of the current financial year.</p></content></level></subsection><subsection><num>(4)</num><content><p>A notice extending a building society's financial year is not effective if given less than 5 years after the end of an earlier financial year of the society that was extended under this section.</p></content></subsection><subsection><num>(5)</num><content><p>A financial year of a building society may not be extended so as to exceed 18 months and a notice under subsection (1) is ineffective if the current financial year as extended in accordance with the notice would exceed that limit.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>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.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-10"><num>SCHEDULE 10<authorialNote class="referenceNote"><p>
Section 141</p></authorialNote></num><heading>Minor amendments</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-companies-act-1985"><heading><i>Companies Act 1985</i></heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content><p>In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-financial-services-and-markets-act-2000"><heading><i>Financial Services and Markets Act 2000</i></heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In section 376 of FSMA 2000 (continuation of contracts of long-term insurance where insurer in liquidation), in subsection (11B), for “PRA-authorised” substitute <quotedText>“
PRA-regulated
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><content><p>Part 25 of FSMA 2000 (injunctions and restitution) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p><mod>In section 380 (injunctions), in subsection (6)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><content><p><mod>In section 382 (restitution orders), in subsection (9)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p><mod>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) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a requirement which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-10-paragraph-4-1"><num>(1)</num><content><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-2"><num>(2)</num><content><p><mod>In sub-paragraph (3)(b), after “this Act” insert <quotedText>“
or under a provision mentioned in sub-paragraph (4A)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-3"><num>(3)</num><content><p><mod>In sub-paragraph (4), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>its powers under the relevant competition provisions (as applied by Part 16A of this Act),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-4"><num>(4)</num><content><p><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The relevant competition provisions” are—</p></intro><level class="para1"><num>(a)</num><content><p>section 31E of the Competition Act 1998 (enforcement of commitments);</p></content></level><level class="para1"><num>(b)</num><content><p>section 34 of that Act (enforcement of directions);</p></content></level><level class="para1"><num>(c)</num><content><p>section 36 of that Act (penalties);</p></content></level><level class="para1"><num>(d)</num><content><p>section 40A of that Act (penalties: failure to comply with requirements);</p></content></level><level class="para1"><num>(e)</num><content><p>section 174A of the Enterprise Act 2002 (penalties).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-5"><num>(5)</num><intro><p>In sub-paragraph (5)—</p></intro><level class="para1" eId="schedule-10-paragraph-4-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “FSMA 2000” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “that Act” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-c"><num>(c)</num><content><p>in paragraph (c), omit “of that Act”, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-d"><num>(d)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>offences under Part 1 of the Competition Act 1998,</p></content></level><level class="para1"><num>(cb)</num><content><p>offences under Part 4 of the Enterprise Act 2002,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><p><mod>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 <quotedText>“
subsection (1)
”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-income-tax-act-2007"><heading><i>Income Tax Act 2007</i></heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute <quotedText>“
Part 4A
”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-banking-act-2009"><heading><i>Banking Act 2009</i></heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num><noteRef href="#key-ec72f71c25d573ecd57141a3c29d6a78" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>7</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert <quotedText>“
payment
”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-financial-services-act-2012"><heading><i>Financial Services Act 2012</i></heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><intro><p>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)—</p></intro><level class="para1" eId="schedule-10-paragraph-9-a"><num>(a)</num><content><p><mod>for “their activities,” substitute <quotedText>“
of the carrying on of regulated activities,
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-9-b"><num>(b)</num><content><p><mod>for “or for the regulation of collective investment schemes” substitute <quotedText>“
, for the regulation of collective investment schemes or for the regulation of recognised investment exchanges,
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>The relevant functions of the FCA or the PRA are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions conferred by or under FSMA 2000, other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The relevant functions of the Bank of England are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions under Part 18 of FSMA 2000 (recognised clearing houses) or under Part 5 of the Banking Act 2009 (inter-bank payment systems), other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “subsection (2)” substitute <quotedText>“
subsection (2)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><content><p><mod>In subsections (6) and (7), for “subsection (3)” substitute <quotedText>“
subsection (3)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA 2000 do not apply.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-companies-act-1985"><heading><i>Companies Act 1985</i></heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content><p>In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.</p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-financial-services-and-markets-act-2000"><heading><i>Financial Services and Markets Act 2000</i></heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In section 376 of FSMA 2000 (continuation of contracts of long-term insurance where insurer in liquidation), in subsection (11B), for “PRA-authorised” substitute <quotedText>“
PRA-regulated
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><content><p>Part 25 of FSMA 2000 (injunctions and restitution) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p><mod>In section 380 (injunctions), in subsection (6)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><content><p><mod>In section 382 (restitution orders), in subsection (9)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p><mod>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) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a requirement which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-10-paragraph-4-1"><num>(1)</num><content><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-2"><num>(2)</num><content><p><mod>In sub-paragraph (3)(b), after “this Act” insert <quotedText>“
or under a provision mentioned in sub-paragraph (4A)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-3"><num>(3)</num><content><p><mod>In sub-paragraph (4), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>its powers under the relevant competition provisions (as applied by Part 16A of this Act),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-4"><num>(4)</num><content><p><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The relevant competition provisions” are—</p></intro><level class="para1"><num>(a)</num><content><p>section 31E of the Competition Act 1998 (enforcement of commitments);</p></content></level><level class="para1"><num>(b)</num><content><p>section 34 of that Act (enforcement of directions);</p></content></level><level class="para1"><num>(c)</num><content><p>section 36 of that Act (penalties);</p></content></level><level class="para1"><num>(d)</num><content><p>section 40A of that Act (penalties: failure to comply with requirements);</p></content></level><level class="para1"><num>(e)</num><content><p>section 174A of the Enterprise Act 2002 (penalties).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-5"><num>(5)</num><intro><p>In sub-paragraph (5)—</p></intro><level class="para1" eId="schedule-10-paragraph-4-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “FSMA 2000” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “that Act” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-c"><num>(c)</num><content><p>in paragraph (c), omit “of that Act”, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-d"><num>(d)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>offences under Part 1 of the Competition Act 1998,</p></content></level><level class="para1"><num>(cb)</num><content><p>offences under Part 4 of the Enterprise Act 2002,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><p><mod>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 <quotedText>“
subsection (1)
”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-income-tax-act-2007"><heading><i>Income Tax Act 2007</i></heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute <quotedText>“
Part 4A
”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-banking-act-2009"><heading><i>Banking Act 2009</i></heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num><noteRef href="#key-ec72f71c25d573ecd57141a3c29d6a78" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>7</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert <quotedText>“
payment
”</quotedText>.</mod></p></content></paragraph></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-financial-services-act-2012"><heading><i>Financial Services Act 2012</i></heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><intro><p>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)—</p></intro><level class="para1" eId="schedule-10-paragraph-9-a"><num>(a)</num><content><p><mod>for “their activities,” substitute <quotedText>“
of the carrying on of regulated activities,
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-9-b"><num>(b)</num><content><p><mod>for “or for the regulation of collective investment schemes” substitute <quotedText>“
, for the regulation of collective investment schemes or for the regulation of recognised investment exchanges,
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>The relevant functions of the FCA or the PRA are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions conferred by or under FSMA 2000, other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The relevant functions of the Bank of England are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions under Part 18 of FSMA 2000 (recognised clearing houses) or under Part 5 of the Banking Act 2009 (inter-bank payment systems), other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “subsection (2)” substitute <quotedText>“
subsection (2)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><content><p><mod>In subsections (6) and (7), for “subsection (3)” substitute <quotedText>“
subsection (3)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA 2000 do not apply.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93"><num>93</num><heading>Offences relating to disclosure of confidential information</heading><subsection eId="section-93-1"><num>(1)</num><content><p>A person who discloses information in contravention of section 91 is guilty of an offence.</p></content></subsection><subsection eId="section-93-2"><num>(2)</num><intro><p>A person guilty of an offence under subsection (1) is liable—</p></intro><level class="para1" eId="section-93-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-93-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;</p></content></level><level class="para2" eId="section-93-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-93-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-93-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection><subsection eId="section-93-3"><num>(3)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content><p>information has been disclosed to the person in accordance with regulations made under section 92, and</p></content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content><p>the person uses the information in contravention of any provision of those regulations.</p></content></level></subsection><subsection eId="section-93-4"><num>(4)</num><intro><p>A person guilty of an offence under subsection (3) is liable on summary conviction—</p></intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-93-5"><num>(5)</num><intro><p>In proceedings against a person (“P”) for an offence under this section it is a defence for P to prove—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>that P did not know and had no reason to suspect that the information was confidential information;</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>that P took all reasonable precautions and exercised all due diligence to avoid committing the offence.</p></content></level></subsection><subsection eId="section-93-6"><num>(6)</num><content><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” has the same meaning as in section 91.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-1"><num>(1)</num><content><p>A person who discloses information in contravention of section 91 is guilty of an offence.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-2"><num>(2)</num><intro><p>A person guilty of an offence under subsection (1) is liable—</p></intro><level class="para1" eId="section-93-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-93-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;</p></content></level><level class="para2" eId="section-93-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-93-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="section-93-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="section-93-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;</p></content></level><level class="para2" eId="section-93-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="section-93-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-93-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-93-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-93-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding the statutory maximum, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-3"><num>(3)</num><intro><p>A person is guilty of an offence if—</p></intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content><p>information has been disclosed to the person in accordance with regulations made under section 92, and</p></content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content><p>the person uses the information in contravention of any provision of those regulations.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-3-a"><num>(a)</num><content><p>information has been disclosed to the person in accordance with regulations made under section 92, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-3-b"><num>(b)</num><content><p>the person uses the information in contravention of any provision of those regulations.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-4"><num>(4)</num><intro><p>A person guilty of an offence under subsection (3) is liable on summary conviction—</p></intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-4-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-4-b"><num>(b)</num><content><p>in Scotland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-4-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-5"><num>(5)</num><intro><p>In proceedings against a person (“P”) for an offence under this section it is a defence for P to prove—</p></intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content><p>that P did not know and had no reason to suspect that the information was confidential information;</p></content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content><p>that P took all reasonable precautions and exercised all due diligence to avoid committing the offence.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-a"><num>(a)</num><content><p>that P did not know and had no reason to suspect that the information was confidential information;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-b"><num>(b)</num><content><p>that P took all reasonable precautions and exercised all due diligence to avoid committing the offence.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-6"><num>(6)</num><content><p>In this section “<term refersTo="#term-confidential-information" eId="term-confidential-information">confidential information</term>” has the same meaning as in section 91.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-94"><num>94</num><heading>Information received from Bank of England</heading><subsection eId="section-94-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-94-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-94-1-b"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection eId="section-94-2"><num>(2)</num><content><p>A regulator must not disclose to any person specially protected information.</p></content></subsection><subsection eId="section-94-3"><num>(3)</num><content><p>“Specially protected information” is information in relation to which the first and second conditions are met.</p></content></subsection><subsection eId="section-94-4"><num>(4)</num><intro><p>The first condition is that the regulator received the information from—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>the Bank of England (“<term refersTo="#term-the-bank" eId="term-the-bank">the Bank</term>”), or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>the other regulator where that regulator had received the information from the Bank.</p></content></level></subsection><subsection eId="section-94-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>monetary policy;</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>financial operations intended to support financial institutions for the purposes of maintaining stability;</p></content></level><level class="para1" eId="section-94-5-c"><num>(c)</num><content><p>the provision of private banking services and related services.</p></content></level></subsection><subsection eId="section-94-6"><num>(6)</num><intro><p>The notification referred to in subsection (5) must be—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>in writing, and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>given before, or at the same time as, the Bank discloses the information.</p></content></level></subsection><subsection eId="section-94-7"><num>(7)</num><intro><p>The prohibition in subsection (2) does not apply—</p></intro><level class="para1" eId="section-94-7-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-b"><num>(b)</num><content><p>where the Bank has consented to disclosure of the information;</p></content></level><level class="para1" eId="section-94-7-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-d"><num><noteRef href="#key-4597eff7f769672be81a12a8f7ded29a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(d)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection><subsection eId="section-94-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-8-a"><num>(a)</num><content><p>persons who are, or are acting as, officers of, or members of the staff of, the regulator;</p></content></level><level class="para1" eId="section-94-8-b"><num>(b)</num><content><p>persons who are, or are acting as, officers, employees or agents of the Bank;</p></content></level><level class="para1" eId="section-94-8-c"><num>(c)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator or the Bank under powers conferred by this Part or otherwise.</p></content></level></subsection><subsection eId="section-94-9"><num>(9)</num><content><p>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.</p></content></subsection><subsection eId="section-94-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-10-a"><num>(a)</num><content><p>its officers or members of staff (including persons acting as its officers or members of staff);</p></content></level><level class="para1" eId="section-94-10-b"><num>(b)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator under powers conferred by this Part or otherwise;</p></content></level><level class="para1" eId="section-94-10-c"><num>(c)</num><content><p>persons to whom the regulator has delegated any of its functions.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-94-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-94-1-b"><num>(b)</num><content><p>the FCA.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-1-b"><num>(b)</num><content><p>the FCA.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-2"><num>(2)</num><content><p>A regulator must not disclose to any person specially protected information.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-3"><num>(3)</num><content><p>“Specially protected information” is information in relation to which the first and second conditions are met.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-4"><num>(4)</num><intro><p>The first condition is that the regulator received the information from—</p></intro><level class="para1" eId="section-94-4-a"><num>(a)</num><content><p>the Bank of England (“<term refersTo="#term-the-bank" eId="term-the-bank">the Bank</term>”), or</p></content></level><level class="para1" eId="section-94-4-b"><num>(b)</num><content><p>the other regulator where that regulator had received the information from the Bank.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-4-a"><num>(a)</num><content><p>the Bank of England (“<term refersTo="#term-the-bank" eId="term-the-bank">the Bank</term>”), or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-4-b"><num>(b)</num><content><p>the other regulator where that regulator had received the information from the Bank.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-5-a"><num>(a)</num><content><p>monetary policy;</p></content></level><level class="para1" eId="section-94-5-b"><num>(b)</num><content><p>financial operations intended to support financial institutions for the purposes of maintaining stability;</p></content></level><level class="para1" eId="section-94-5-c"><num>(c)</num><content><p>the provision of private banking services and related services.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-5-a"><num>(a)</num><content><p>monetary policy;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-5-b"><num>(b)</num><content><p>financial operations intended to support financial institutions for the purposes of maintaining stability;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-5-c"><num>(c)</num><content><p>the provision of private banking services and related services.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-6"><num>(6)</num><intro><p>The notification referred to in subsection (5) must be—</p></intro><level class="para1" eId="section-94-6-a"><num>(a)</num><content><p>in writing, and</p></content></level><level class="para1" eId="section-94-6-b"><num>(b)</num><content><p>given before, or at the same time as, the Bank discloses the information.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-6-a"><num>(a)</num><content><p>in writing, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-6-b"><num>(b)</num><content><p>given before, or at the same time as, the Bank discloses the information.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-94-7"><num>(7)</num><intro><p>The prohibition in subsection (2) does not apply—</p></intro><level class="para1" eId="section-94-7-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-b"><num>(b)</num><content><p>where the Bank has consented to disclosure of the information;</p></content></level><level class="para1" eId="section-94-7-c"><num>(c)</num><content><p>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;</p></content></level><level class="para1" eId="section-94-7-d"><num><noteRef href="#key-4597eff7f769672be81a12a8f7ded29a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(d)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-7-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-7-b"><num>(b)</num><content><p>where the Bank has consented to disclosure of the information;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-7-c"><num>(c)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-94-7-d"><num><noteRef href="#key-4597eff7f769672be81a12a8f7ded29a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(d)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-8-a"><num>(a)</num><content><p>persons who are, or are acting as, officers of, or members of the staff of, the regulator;</p></content></level><level class="para1" eId="section-94-8-b"><num>(b)</num><content><p>persons who are, or are acting as, officers, employees or agents of the Bank;</p></content></level><level class="para1" eId="section-94-8-c"><num>(c)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator or the Bank under powers conferred by this Part or otherwise.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-8-a"><num>(a)</num><content><p>persons who are, or are acting as, officers of, or members of the staff of, the regulator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-8-b"><num>(b)</num><content><p>persons who are, or are acting as, officers, employees or agents of the Bank;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-8-c"><num>(c)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator or the Bank under powers conferred by this Part or otherwise.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-9"><num>(9)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="section-94-10-a"><num>(a)</num><content><p>its officers or members of staff (including persons acting as its officers or members of staff);</p></content></level><level class="para1" eId="section-94-10-b"><num>(b)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator under powers conferred by this Part or otherwise;</p></content></level><level class="para1" eId="section-94-10-c"><num>(c)</num><content><p>persons to whom the regulator has delegated any of its functions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-10-a"><num>(a)</num><content><p>its officers or members of staff (including persons acting as its officers or members of staff);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-10-b"><num>(b)</num><content><p>auditors, experts, contractors or investigators appointed by the regulator under powers conferred by this Part or otherwise;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-10-c"><num>(c)</num><content><p>persons to whom the regulator has delegated any of its functions.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-95"><num>95</num><heading>Disclosure of information by Bank to Regulator</heading><content><p><mod>In section 246 of the Banking Act 2009 (information), in subsection (2), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>the Payment Systems Regulator (established under section 40 of the Financial Services (Banking Reform) Act 2013);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-guidance"><heading><i>Guidance</i></heading><section eId="section-96"><num>96</num><heading>Guidance</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>The Payment Systems Regulator may give guidance consisting of such information and advice as it considers appropriate—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content><p>with respect to the operation of specified provisions of this Part;</p></content></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>with respect to any other matter relating to its functions under this Part;</p></content></level><level class="para1" eId="section-96-1-c"><num>(c)</num><content><p>with respect to any other matters about which it appears to the Payment Systems Regulator to be desirable to give information or advice.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><intro><p>In this Part “<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” means guidance given by the Payment Systems Regulator under this section which—</p></intro><level class="para1" eId="section-96-3-a"><num>(a)</num><intro><p>is given—</p></intro><level class="para2" eId="section-96-3-a-i"><num>(i)</num><content><p>to persons generally,</p></content></level><level class="para2" eId="section-96-3-a-ii"><num>(ii)</num><content><p>to participants in payment systems, or regulated payment systems, generally, or</p></content></level><level class="para2" eId="section-96-3-a-iii"><num>(iii)</num><content><p>to a class of participant in a payment system or regulated payment system,</p></content></level></level><level class="para1" eId="section-96-3-b"><num>(b)</num><content><p>is intended to have continuing effect, and</p></content></level><level class="para1" eId="section-96-3-c"><num>(c)</num><content><p>is given in writing or other legible form.</p></content></level></subsection><subsection eId="section-96-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-96-5"><num>(5)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-96-5-a"><num>(a)</num><content><p>publish its guidance,</p></content></level><level class="para1" eId="section-96-5-b"><num>(b)</num><content><p>offer copies of its published guidance for sale at a reasonable price, and</p></content></level><level class="para1" eId="section-96-5-c"><num>(c)</num><content><p>if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.</p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96"><num>96</num><heading>Guidance</heading><subsection eId="section-96-1"><num>(1)</num><intro><p>The Payment Systems Regulator may give guidance consisting of such information and advice as it considers appropriate—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content><p>with respect to the operation of specified provisions of this Part;</p></content></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>with respect to any other matter relating to its functions under this Part;</p></content></level><level class="para1" eId="section-96-1-c"><num>(c)</num><content><p>with respect to any other matters about which it appears to the Payment Systems Regulator to be desirable to give information or advice.</p></content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-96-3"><num>(3)</num><intro><p>In this Part “<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” means guidance given by the Payment Systems Regulator under this section which—</p></intro><level class="para1" eId="section-96-3-a"><num>(a)</num><intro><p>is given—</p></intro><level class="para2" eId="section-96-3-a-i"><num>(i)</num><content><p>to persons generally,</p></content></level><level class="para2" eId="section-96-3-a-ii"><num>(ii)</num><content><p>to participants in payment systems, or regulated payment systems, generally, or</p></content></level><level class="para2" eId="section-96-3-a-iii"><num>(iii)</num><content><p>to a class of participant in a payment system or regulated payment system,</p></content></level></level><level class="para1" eId="section-96-3-b"><num>(b)</num><content><p>is intended to have continuing effect, and</p></content></level><level class="para1" eId="section-96-3-c"><num>(c)</num><content><p>is given in writing or other legible form.</p></content></level></subsection><subsection eId="section-96-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-96-5"><num>(5)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-96-5-a"><num>(a)</num><content><p>publish its guidance,</p></content></level><level class="para1" eId="section-96-5-b"><num>(b)</num><content><p>offer copies of its published guidance for sale at a reasonable price, and</p></content></level><level class="para1" eId="section-96-5-c"><num>(c)</num><content><p>if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-1"><num>(1)</num><intro><p>The Payment Systems Regulator may give guidance consisting of such information and advice as it considers appropriate—</p></intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content><p>with respect to the operation of specified provisions of this Part;</p></content></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content><p>with respect to any other matter relating to its functions under this Part;</p></content></level><level class="para1" eId="section-96-1-c"><num>(c)</num><content><p>with respect to any other matters about which it appears to the Payment Systems Regulator to be desirable to give information or advice.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-a"><num>(a)</num><content><p>with respect to the operation of specified provisions of this Part;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-b"><num>(b)</num><content><p>with respect to any other matter relating to its functions under this Part;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-c"><num>(c)</num><content><p>with respect to any other matters about which it appears to the Payment Systems Regulator to be desirable to give information or advice.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-3"><num>(3)</num><intro><p>In this Part “<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” means guidance given by the Payment Systems Regulator under this section which—</p></intro><level class="para1" eId="section-96-3-a"><num>(a)</num><intro><p>is given—</p></intro><level class="para2" eId="section-96-3-a-i"><num>(i)</num><content><p>to persons generally,</p></content></level><level class="para2" eId="section-96-3-a-ii"><num>(ii)</num><content><p>to participants in payment systems, or regulated payment systems, generally, or</p></content></level><level class="para2" eId="section-96-3-a-iii"><num>(iii)</num><content><p>to a class of participant in a payment system or regulated payment system,</p></content></level></level><level class="para1" eId="section-96-3-b"><num>(b)</num><content><p>is intended to have continuing effect, and</p></content></level><level class="para1" eId="section-96-3-c"><num>(c)</num><content><p>is given in writing or other legible form.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-3-a"><num>(a)</num><intro><p>is given—</p></intro><level class="para2" eId="section-96-3-a-i"><num>(i)</num><content><p>to persons generally,</p></content></level><level class="para2" eId="section-96-3-a-ii"><num>(ii)</num><content><p>to participants in payment systems, or regulated payment systems, generally, or</p></content></level><level class="para2" eId="section-96-3-a-iii"><num>(iii)</num><content><p>to a class of participant in a payment system or regulated payment system,</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-96-3-a-i"><num>(i)</num><content><p>to persons generally,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-96-3-a-ii"><num>(ii)</num><content><p>to participants in payment systems, or regulated payment systems, generally, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-96-3-a-iii"><num>(iii)</num><content><p>to a class of participant in a payment system or regulated payment system,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-3-b"><num>(b)</num><content><p>is intended to have continuing effect, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-3-c"><num>(c)</num><content><p>is given in writing or other legible form.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-5"><num>(5)</num><intro><p>The Payment Systems Regulator may—</p></intro><level class="para1" eId="section-96-5-a"><num>(a)</num><content><p>publish its guidance,</p></content></level><level class="para1" eId="section-96-5-b"><num>(b)</num><content><p>offer copies of its published guidance for sale at a reasonable price, and</p></content></level><level class="para1" eId="section-96-5-c"><num>(c)</num><content><p>if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-5-a"><num>(a)</num><content><p>publish its guidance,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-5-b"><num>(b)</num><content><p>offer copies of its published guidance for sale at a reasonable price, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-5-c"><num>(c)</num><content><p>if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-reports"><heading><i>Reports</i></heading><section eId="section-97"><num>97</num><heading>Reports</heading><content><p>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.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97"><num>97</num><heading>Reports</heading><content><p>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.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-relationship-with-other-regulators"><heading><i>Relationship with other regulators</i></heading><section eId="section-98"><num>98</num><heading>Duty of regulators to ensure co-ordinated exercise of functions</heading><subsection eId="section-98-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-98-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-98-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-98-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-98-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection><subsection eId="section-98-2"><num>(2)</num><intro><p>The regulators must co-ordinate the exercise of their relevant functions (see subsection (5)) with a view to ensuring—</p></intro><level class="para1" eId="section-98-2-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-98-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-98-3"><num>(3)</num><intro><p>The duty in subsection (2) applies only to the extent that compliance with the duty—</p></intro><level class="para1" eId="section-98-3-a"><num>(a)</num><content><p>is compatible with the advancement by each regulator of any of its objectives, and</p></content></level><level class="para1" eId="section-98-3-b"><num>(b)</num><content><p>does not impose a burden on the regulators that is disproportionate to the benefits of compliance.</p></content></level></subsection><subsection eId="section-98-4"><num>(4)</num><intro><p>A function conferred on a regulator relates to matters of common regulatory interest if—</p></intro><level class="para1" eId="section-98-4-a"><num>(a)</num><content><p>another regulator exercises similar or related functions in relation to the same persons,</p></content></level><level class="para1" eId="section-98-4-b"><num>(b)</num><content><p>another regulator exercises functions which relate to different persons but relate to similar subject-matter, or</p></content></level><level class="para1" eId="section-98-4-c"><num>(c)</num><content><p>its exercise could affect the advancement by another regulator of any of its objectives.</p></content></level></subsection><subsection eId="section-98-5"><num>(5)</num><intro><p>“<term refersTo="#term-relevant-functions" eId="term-relevant-functions">Relevant functions</term>” means—</p></intro><level class="para1" eId="section-98-5-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its functions under this Part <ins class="first last" ukl:ChangeId="key-64febbe2d99cf111cb38e622fdba83ed-1498408079067" ukl:CommentaryRef="key-64febbe2d99cf111cb38e622fdba83ed"><noteRef uk:name="commentary" href="#key-64febbe2d99cf111cb38e622fdba83ed" class="commentary"/>or Part 2 of the Payment Card Interchange Fee Regulations 2015</ins> ;</p></content></level><level class="para1" eId="section-98-5-b"><num>(b)</num><content><p>in relation to the Bank of England, its functions under Part 5 of the Banking Act 2009 (<noteRef href="#key-5b0ca3fe5e74789345af35879bf7ea2a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment systems) <ins class="first last" ukl:ChangeId="key-79ab573602ed6e98e3f98db1cea9fe74-1695297797443" ukl:CommentaryRef="key-79ab573602ed6e98e3f98db1cea9fe74"><noteRef uk:name="commentary" href="#key-79ab573602ed6e98e3f98db1cea9fe74" class="commentary"/>or Part 5A of that Act (wholesale cash distribution)</ins>;</p></content></level><level class="para1" eId="section-98-5-c"><num><ins class="substitution first" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c"><noteRef uk:name="commentary" href="#key-2bda1875485f3cd591fae39043f9820c" class="commentary"/>(c)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">in relation to the FCA—</ins></p></intro><level class="para2" eId="section-98-5-c-i"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);</ins></p></content></level><level class="para2" eId="section-98-5-c-ii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00360" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2015/1911</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under the Electronic Money Regulations 2011 (</ins><ref eId="c00361" href="http://www.legislation.gov.uk/id/uksi/2011/99"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2011/99</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iv"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iv)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">its functions in regulating—</ins></p></intro><level class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level><level class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level></level></level><level class="para1" eId="section-98-5-d"><num>(d)</num><content><p>in relation to the PRA, the functions conferred on it by or under FSMA 2000 (see section <ins class="substitution first last" ukl:ChangeId="key-12e0b10ce29c10d7311b504cad335773-1498415101442" ukl:CommentaryRef="key-12e0b10ce29c10d7311b504cad335773"><noteRef uk:name="commentary" href="#key-12e0b10ce29c10d7311b504cad335773" class="commentary"/>2AB(3)</ins> of that Act).</p></content></level></subsection><subsection eId="section-98-6"><num>(6)</num><intro><p>“<term refersTo="#term-objectives" eId="term-objectives">Objectives</term>” means—</p></intro><level class="para1" eId="section-98-6-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its payment systems objectives <ins class="first last" ukl:ChangeId="key-d45b0ac96cfb811b194dbc73caf9dfe3-1498408162305" ukl:CommentaryRef="key-d45b0ac96cfb811b194dbc73caf9dfe3"><noteRef uk:name="commentary" href="#key-d45b0ac96cfb811b194dbc73caf9dfe3" class="commentary"/>and ensuring compliance with the interchange fee regulation (see Part 2 of the Payment Card Interchange Fee Regulations 2015)</ins> ;</p></content></level><level class="para1" eId="section-98-6-b"><num>(b)</num><content><p>in relation to the Bank of England, its Financial Stability Objective under section 2A of the Bank of England Act 1998;</p></content></level><level class="para1" eId="section-98-6-c"><num>(c)</num><content><p>in relation to the FCA, its strategic objective and operational objectives under section 1B of FSMA 2000 <ins class="first last" ukl:ChangeId="key-dda5a1b83d9cd2db2303d5db120a97f4-1498408197615" ukl:CommentaryRef="key-dda5a1b83d9cd2db2303d5db120a97f4"><noteRef uk:name="commentary" href="#key-dda5a1b83d9cd2db2303d5db120a97f4" class="commentary"/>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)</ins> ;</p></content></level><level class="para1" eId="section-98-6-d"><num>(d)</num><content><p>in relation to the PRA, its general objective under section 2B of that Act.</p></content></level></subsection><subsection eId="section-98-7"><num><ins class="first" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7"><noteRef uk:name="commentary" href="#key-f50ad5ff0cebb7c4e2f2dafa0fe068e7" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">In subsection (6) “the interchange fee regulation” means Regulation (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">EU</ins></abbr><ins class="last" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions.</ins></p></content></subsection></section><section eId="section-99"><num>99</num><heading>Memorandum of understanding</heading><subsection eId="section-99-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-99-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-99-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-99-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-99-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection><subsection eId="section-99-2"><num>(2)</num><intro><p>The regulators must prepare and maintain a memorandum which describes in general terms—</p></intro><level class="para1" eId="section-99-2-a"><num>(a)</num><content><p>the role of each regulator in relation to the exercise of relevant functions which relate to matters of common regulatory interest, and</p></content></level><level class="para1" eId="section-99-2-b"><num>(b)</num><content><p>how the regulators intend to comply with section 98 in relation to the exercise of such functions.</p></content></level></subsection><subsection eId="section-99-3"><num>(3)</num><content><p>The regulators must review the memorandum at least once in each calendar year.</p></content></subsection><subsection eId="section-99-4"><num>(4)</num><content><p>The regulators must give the Treasury a copy of the memorandum and any revised memorandum.</p></content></subsection><subsection eId="section-99-5"><num>(5)</num><content><p>The Treasury must lay before Parliament a copy of any document received by them under this section.</p></content></subsection><subsection eId="section-99-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-99-7"><num>(7)</num><intro><p>The memorandum need not relate to any aspect of compliance with section 98 if the regulators consider—</p></intro><level class="para1" eId="section-99-7-a"><num>(a)</num><content><p>that publication of information about that aspect would be against the public interest, or</p></content></level><level class="para1" eId="section-99-7-b"><num>(b)</num><content><p>that that aspect is a technical or operational matter not affecting the public.</p></content></level></subsection><subsection eId="section-99-8"><num>(8)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-99-8-a"><num>(a)</num><content><p>the reference in subsection (2)(a) to matters of common regulatory interest is to be read in accordance with section 98(4), and</p></content></level><level class="para1" eId="section-99-8-b"><num>(b)</num><content><p>references to relevant functions are to be read in accordance with section 98(5).</p></content></level></subsection></section><section eId="section-100"><num>100</num><heading>Power of Bank to require Regulator to refrain from specified action</heading><subsection eId="section-100-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-100-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>have serious consequences for business or other interests in the United Kingdom, or</p></content></level><level class="para1" eId="section-100-3-c"><num>(c)</num><content><p>have an adverse effect on the Bank's ability to act in its capacity as a monetary authority.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-100-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-100-7"><num>(7)</num><content><p>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 <noteRef href="#key-18f87d6628824c5766e1b9a7da26f848" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection></section><section eId="section-101"><num>101</num><heading>Power of FCA to require Regulator to refrain from specified action</heading><subsection eId="section-101-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the FCA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-101-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>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).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-101-7"><num>(7)</num><content><p>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 <noteRef href="#key-cec808fc7fbcf9bd0f3b0c2066c008ee" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection></section><section eId="section-102"><num>102</num><heading>Power of PRA to require Regulator to refrain from specified action</heading><subsection eId="section-102-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the PRA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-102-2"><num>(2)</num><intro><p>The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to—</p></intro><level class="para1" eId="section-102-2-a"><num>(a)</num><content><p>a class of PRA-authorised persons, or</p></content></level><level class="para1" eId="section-102-2-b"><num>(b)</num><content><p>a particular PRA-authorised person.</p></content></level></subsection><subsection eId="section-102-3"><num>(3)</num><intro><p>The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content><p>result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-c"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom, or</p></content></level><level class="para1" eId="section-102-3-d"><num>(d)</num><content><p>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).</p></content></level></subsection><subsection eId="section-102-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-102-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-102-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-102-7"><num>(7)</num><content><p>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 <noteRef href="#key-ea601705a6b7aa4d408abb82ce180745" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection><subsection eId="section-102-8"><num>(8)</num><content><p>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.</p></content></subsection><subsection eId="section-102-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-core-services" eId="term-core-services">core services</term>” has the same meaning as in FSMA 2000 (see section 142C of that Act), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” has the same meaning as in FSMA 2000 (see section 2B(5) of that Act).</p></content></hcontainer></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-98"><num>98</num><heading>Duty of regulators to ensure co-ordinated exercise of functions</heading><subsection eId="section-98-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-98-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-98-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-98-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-98-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection><subsection eId="section-98-2"><num>(2)</num><intro><p>The regulators must co-ordinate the exercise of their relevant functions (see subsection (5)) with a view to ensuring—</p></intro><level class="para1" eId="section-98-2-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-98-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-98-3"><num>(3)</num><intro><p>The duty in subsection (2) applies only to the extent that compliance with the duty—</p></intro><level class="para1" eId="section-98-3-a"><num>(a)</num><content><p>is compatible with the advancement by each regulator of any of its objectives, and</p></content></level><level class="para1" eId="section-98-3-b"><num>(b)</num><content><p>does not impose a burden on the regulators that is disproportionate to the benefits of compliance.</p></content></level></subsection><subsection eId="section-98-4"><num>(4)</num><intro><p>A function conferred on a regulator relates to matters of common regulatory interest if—</p></intro><level class="para1" eId="section-98-4-a"><num>(a)</num><content><p>another regulator exercises similar or related functions in relation to the same persons,</p></content></level><level class="para1" eId="section-98-4-b"><num>(b)</num><content><p>another regulator exercises functions which relate to different persons but relate to similar subject-matter, or</p></content></level><level class="para1" eId="section-98-4-c"><num>(c)</num><content><p>its exercise could affect the advancement by another regulator of any of its objectives.</p></content></level></subsection><subsection eId="section-98-5"><num>(5)</num><intro><p>“<term refersTo="#term-relevant-functions" eId="term-relevant-functions">Relevant functions</term>” means—</p></intro><level class="para1" eId="section-98-5-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its functions under this Part <ins class="first last" ukl:ChangeId="key-64febbe2d99cf111cb38e622fdba83ed-1498408079067" ukl:CommentaryRef="key-64febbe2d99cf111cb38e622fdba83ed"><noteRef uk:name="commentary" href="#key-64febbe2d99cf111cb38e622fdba83ed" class="commentary"/>or Part 2 of the Payment Card Interchange Fee Regulations 2015</ins> ;</p></content></level><level class="para1" eId="section-98-5-b"><num>(b)</num><content><p>in relation to the Bank of England, its functions under Part 5 of the Banking Act 2009 (<noteRef href="#key-5b0ca3fe5e74789345af35879bf7ea2a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment systems) <ins class="first last" ukl:ChangeId="key-79ab573602ed6e98e3f98db1cea9fe74-1695297797443" ukl:CommentaryRef="key-79ab573602ed6e98e3f98db1cea9fe74"><noteRef uk:name="commentary" href="#key-79ab573602ed6e98e3f98db1cea9fe74" class="commentary"/>or Part 5A of that Act (wholesale cash distribution)</ins>;</p></content></level><level class="para1" eId="section-98-5-c"><num><ins class="substitution first" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c"><noteRef uk:name="commentary" href="#key-2bda1875485f3cd591fae39043f9820c" class="commentary"/>(c)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">in relation to the FCA—</ins></p></intro><level class="para2" eId="section-98-5-c-i"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);</ins></p></content></level><level class="para2" eId="section-98-5-c-ii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00360" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2015/1911</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under the Electronic Money Regulations 2011 (</ins><ref eId="c00361" href="http://www.legislation.gov.uk/id/uksi/2011/99"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2011/99</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iv"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iv)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">its functions in regulating—</ins></p></intro><level class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level><level class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level></level></level><level class="para1" eId="section-98-5-d"><num>(d)</num><content><p>in relation to the PRA, the functions conferred on it by or under FSMA 2000 (see section <ins class="substitution first last" ukl:ChangeId="key-12e0b10ce29c10d7311b504cad335773-1498415101442" ukl:CommentaryRef="key-12e0b10ce29c10d7311b504cad335773"><noteRef uk:name="commentary" href="#key-12e0b10ce29c10d7311b504cad335773" class="commentary"/>2AB(3)</ins> of that Act).</p></content></level></subsection><subsection eId="section-98-6"><num>(6)</num><intro><p>“<term refersTo="#term-objectives" eId="term-objectives">Objectives</term>” means—</p></intro><level class="para1" eId="section-98-6-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its payment systems objectives <ins class="first last" ukl:ChangeId="key-d45b0ac96cfb811b194dbc73caf9dfe3-1498408162305" ukl:CommentaryRef="key-d45b0ac96cfb811b194dbc73caf9dfe3"><noteRef uk:name="commentary" href="#key-d45b0ac96cfb811b194dbc73caf9dfe3" class="commentary"/>and ensuring compliance with the interchange fee regulation (see Part 2 of the Payment Card Interchange Fee Regulations 2015)</ins> ;</p></content></level><level class="para1" eId="section-98-6-b"><num>(b)</num><content><p>in relation to the Bank of England, its Financial Stability Objective under section 2A of the Bank of England Act 1998;</p></content></level><level class="para1" eId="section-98-6-c"><num>(c)</num><content><p>in relation to the FCA, its strategic objective and operational objectives under section 1B of FSMA 2000 <ins class="first last" ukl:ChangeId="key-dda5a1b83d9cd2db2303d5db120a97f4-1498408197615" ukl:CommentaryRef="key-dda5a1b83d9cd2db2303d5db120a97f4"><noteRef uk:name="commentary" href="#key-dda5a1b83d9cd2db2303d5db120a97f4" class="commentary"/>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)</ins> ;</p></content></level><level class="para1" eId="section-98-6-d"><num>(d)</num><content><p>in relation to the PRA, its general objective under section 2B of that Act.</p></content></level></subsection><subsection eId="section-98-7"><num><ins class="first" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7"><noteRef uk:name="commentary" href="#key-f50ad5ff0cebb7c4e2f2dafa0fe068e7" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">In subsection (6) “the interchange fee regulation” means Regulation (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">EU</ins></abbr><ins class="last" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-98-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-98-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-98-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-98-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-1-c"><num>(c)</num><content><p>the FCA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-1-d"><num>(d)</num><content><p>the PRA.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-2"><num>(2)</num><intro><p>The regulators must co-ordinate the exercise of their relevant functions (see subsection (5)) with a view to ensuring—</p></intro><level class="para1" eId="section-98-2-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-98-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-2-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-2-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-3"><num>(3)</num><intro><p>The duty in subsection (2) applies only to the extent that compliance with the duty—</p></intro><level class="para1" eId="section-98-3-a"><num>(a)</num><content><p>is compatible with the advancement by each regulator of any of its objectives, and</p></content></level><level class="para1" eId="section-98-3-b"><num>(b)</num><content><p>does not impose a burden on the regulators that is disproportionate to the benefits of compliance.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-3-a"><num>(a)</num><content><p>is compatible with the advancement by each regulator of any of its objectives, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-3-b"><num>(b)</num><content><p>does not impose a burden on the regulators that is disproportionate to the benefits of compliance.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-4"><num>(4)</num><intro><p>A function conferred on a regulator relates to matters of common regulatory interest if—</p></intro><level class="para1" eId="section-98-4-a"><num>(a)</num><content><p>another regulator exercises similar or related functions in relation to the same persons,</p></content></level><level class="para1" eId="section-98-4-b"><num>(b)</num><content><p>another regulator exercises functions which relate to different persons but relate to similar subject-matter, or</p></content></level><level class="para1" eId="section-98-4-c"><num>(c)</num><content><p>its exercise could affect the advancement by another regulator of any of its objectives.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-4-a"><num>(a)</num><content><p>another regulator exercises similar or related functions in relation to the same persons,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-4-b"><num>(b)</num><content><p>another regulator exercises functions which relate to different persons but relate to similar subject-matter, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-4-c"><num>(c)</num><content><p>its exercise could affect the advancement by another regulator of any of its objectives.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-98-5"><num>(5)</num><intro><p>“<term refersTo="#term-relevant-functions" eId="term-relevant-functions">Relevant functions</term>” means—</p></intro><level class="para1" eId="section-98-5-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its functions under this Part <ins class="first last" ukl:ChangeId="key-64febbe2d99cf111cb38e622fdba83ed-1498408079067" ukl:CommentaryRef="key-64febbe2d99cf111cb38e622fdba83ed"><noteRef uk:name="commentary" href="#key-64febbe2d99cf111cb38e622fdba83ed" class="commentary"/>or Part 2 of the Payment Card Interchange Fee Regulations 2015</ins> ;</p></content></level><level class="para1" eId="section-98-5-b"><num>(b)</num><content><p>in relation to the Bank of England, its functions under Part 5 of the Banking Act 2009 (<noteRef href="#key-5b0ca3fe5e74789345af35879bf7ea2a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment systems) <ins class="first last" ukl:ChangeId="key-79ab573602ed6e98e3f98db1cea9fe74-1695297797443" ukl:CommentaryRef="key-79ab573602ed6e98e3f98db1cea9fe74"><noteRef uk:name="commentary" href="#key-79ab573602ed6e98e3f98db1cea9fe74" class="commentary"/>or Part 5A of that Act (wholesale cash distribution)</ins>;</p></content></level><level class="para1" eId="section-98-5-c"><num><ins class="substitution first" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c"><noteRef uk:name="commentary" href="#key-2bda1875485f3cd591fae39043f9820c" class="commentary"/>(c)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">in relation to the FCA—</ins></p></intro><level class="para2" eId="section-98-5-c-i"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);</ins></p></content></level><level class="para2" eId="section-98-5-c-ii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00360" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2015/1911</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under the Electronic Money Regulations 2011 (</ins><ref eId="c00361" href="http://www.legislation.gov.uk/id/uksi/2011/99"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2011/99</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iv"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iv)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">its functions in regulating—</ins></p></intro><level class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level><level class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level></level></level><level class="para1" eId="section-98-5-d"><num>(d)</num><content><p>in relation to the PRA, the functions conferred on it by or under FSMA 2000 (see section <ins class="substitution first last" ukl:ChangeId="key-12e0b10ce29c10d7311b504cad335773-1498415101442" ukl:CommentaryRef="key-12e0b10ce29c10d7311b504cad335773"><noteRef uk:name="commentary" href="#key-12e0b10ce29c10d7311b504cad335773" class="commentary"/>2AB(3)</ins> of that Act).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-98-5-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its functions under this Part <ins class="first last" ukl:ChangeId="key-64febbe2d99cf111cb38e622fdba83ed-1498408079067" ukl:CommentaryRef="key-64febbe2d99cf111cb38e622fdba83ed"><noteRef uk:name="commentary" href="#key-64febbe2d99cf111cb38e622fdba83ed" class="commentary"/>or Part 2 of the Payment Card Interchange Fee Regulations 2015</ins> ;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-98-5-b"><num>(b)</num><content><p>in relation to the Bank of England, its functions under Part 5 of the Banking Act 2009 (<noteRef href="#key-5b0ca3fe5e74789345af35879bf7ea2a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment systems) <ins class="first last" ukl:ChangeId="key-79ab573602ed6e98e3f98db1cea9fe74-1695297797443" ukl:CommentaryRef="key-79ab573602ed6e98e3f98db1cea9fe74"><noteRef uk:name="commentary" href="#key-79ab573602ed6e98e3f98db1cea9fe74" class="commentary"/>or Part 5A of that Act (wholesale cash distribution)</ins>;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-98-5-c"><num><ins class="substitution first" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c"><noteRef uk:name="commentary" href="#key-2bda1875485f3cd591fae39043f9820c" class="commentary"/>(c)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">in relation to the FCA—</ins></p></intro><level class="para2" eId="section-98-5-c-i"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);</ins></p></content></level><level class="para2" eId="section-98-5-c-ii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00360" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2015/1911</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under the Electronic Money Regulations 2011 (</ins><ref eId="c00361" href="http://www.legislation.gov.uk/id/uksi/2011/99"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2011/99</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level><level class="para2" eId="section-98-5-c-iv"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iv)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">its functions in regulating—</ins></p></intro><level class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level><level class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-98-5-c-i"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-98-5-c-ii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00360" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2015/1911</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-98-5-c-iii"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">the functions conferred on it by or under the Electronic Money Regulations 2011 (</ins><ref eId="c00361" href="http://www.legislation.gov.uk/id/uksi/2011/99"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2011/99</ins></ref><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-98-5-c-iv"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(iv)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">its functions in regulating—</ins></p></intro><level class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level><level class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para3" eId="section-98-5-c-iv-a"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">credit institutions where authorised under Part 4A of FSMA 2000, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para3" eId="section-98-5-c-iv-b"><num><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">authorised payment institutions under the Payment Services Regulations 2017 (</ins><ref eId="c00362" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins class="substitution" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">S.I. 2017/752</ins></ref><ins class="substitution last" ukl:ChangeId="key-2bda1875485f3cd591fae39043f9820c-1695297770870" ukl:CommentaryRef="key-2bda1875485f3cd591fae39043f9820c">).</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-98-5-d"><num>(d)</num><content><p>in relation to the PRA, the functions conferred on it by or under FSMA 2000 (see section <ins class="substitution first last" ukl:ChangeId="key-12e0b10ce29c10d7311b504cad335773-1498415101442" ukl:CommentaryRef="key-12e0b10ce29c10d7311b504cad335773"><noteRef uk:name="commentary" href="#key-12e0b10ce29c10d7311b504cad335773" class="commentary"/>2AB(3)</ins> of that Act).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-98-6"><num>(6)</num><intro><p>“<term refersTo="#term-objectives" eId="term-objectives">Objectives</term>” means—</p></intro><level class="para1" eId="section-98-6-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its payment systems objectives <ins class="first last" ukl:ChangeId="key-d45b0ac96cfb811b194dbc73caf9dfe3-1498408162305" ukl:CommentaryRef="key-d45b0ac96cfb811b194dbc73caf9dfe3"><noteRef uk:name="commentary" href="#key-d45b0ac96cfb811b194dbc73caf9dfe3" class="commentary"/>and ensuring compliance with the interchange fee regulation (see Part 2 of the Payment Card Interchange Fee Regulations 2015)</ins> ;</p></content></level><level class="para1" eId="section-98-6-b"><num>(b)</num><content><p>in relation to the Bank of England, its Financial Stability Objective under section 2A of the Bank of England Act 1998;</p></content></level><level class="para1" eId="section-98-6-c"><num>(c)</num><content><p>in relation to the FCA, its strategic objective and operational objectives under section 1B of FSMA 2000 <ins class="first last" ukl:ChangeId="key-dda5a1b83d9cd2db2303d5db120a97f4-1498408197615" ukl:CommentaryRef="key-dda5a1b83d9cd2db2303d5db120a97f4"><noteRef uk:name="commentary" href="#key-dda5a1b83d9cd2db2303d5db120a97f4" class="commentary"/>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)</ins> ;</p></content></level><level class="para1" eId="section-98-6-d"><num>(d)</num><content><p>in relation to the PRA, its general objective under section 2B of that Act.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-98-6-a"><num>(a)</num><content><p>in relation to the Payment Systems Regulator, its payment systems objectives <ins class="first last" ukl:ChangeId="key-d45b0ac96cfb811b194dbc73caf9dfe3-1498408162305" ukl:CommentaryRef="key-d45b0ac96cfb811b194dbc73caf9dfe3"><noteRef uk:name="commentary" href="#key-d45b0ac96cfb811b194dbc73caf9dfe3" class="commentary"/>and ensuring compliance with the interchange fee regulation (see Part 2 of the Payment Card Interchange Fee Regulations 2015)</ins> ;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-6-b"><num>(b)</num><content><p>in relation to the Bank of England, its Financial Stability Objective under section 2A of the Bank of England Act 1998;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-98-6-c"><num>(c)</num><content><p>in relation to the FCA, its strategic objective and operational objectives under section 1B of FSMA 2000 <ins class="first last" ukl:ChangeId="key-dda5a1b83d9cd2db2303d5db120a97f4-1498408197615" ukl:CommentaryRef="key-dda5a1b83d9cd2db2303d5db120a97f4"><noteRef uk:name="commentary" href="#key-dda5a1b83d9cd2db2303d5db120a97f4" class="commentary"/>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)</ins> ;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-6-d"><num>(d)</num><content><p>in relation to the PRA, its general objective under section 2B of that Act.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-98-7"><num><ins class="first" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7"><noteRef uk:name="commentary" href="#key-f50ad5ff0cebb7c4e2f2dafa0fe068e7" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">In subsection (6) “the interchange fee regulation” means Regulation (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">EU</ins></abbr><ins class="last" ukl:ChangeId="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7-1498408042326" ukl:CommentaryRef="key-f50ad5ff0cebb7c4e2f2dafa0fe068e7">) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99"><num>99</num><heading>Memorandum of understanding</heading><subsection eId="section-99-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-99-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-99-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-99-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-99-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection><subsection eId="section-99-2"><num>(2)</num><intro><p>The regulators must prepare and maintain a memorandum which describes in general terms—</p></intro><level class="para1" eId="section-99-2-a"><num>(a)</num><content><p>the role of each regulator in relation to the exercise of relevant functions which relate to matters of common regulatory interest, and</p></content></level><level class="para1" eId="section-99-2-b"><num>(b)</num><content><p>how the regulators intend to comply with section 98 in relation to the exercise of such functions.</p></content></level></subsection><subsection eId="section-99-3"><num>(3)</num><content><p>The regulators must review the memorandum at least once in each calendar year.</p></content></subsection><subsection eId="section-99-4"><num>(4)</num><content><p>The regulators must give the Treasury a copy of the memorandum and any revised memorandum.</p></content></subsection><subsection eId="section-99-5"><num>(5)</num><content><p>The Treasury must lay before Parliament a copy of any document received by them under this section.</p></content></subsection><subsection eId="section-99-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-99-7"><num>(7)</num><intro><p>The memorandum need not relate to any aspect of compliance with section 98 if the regulators consider—</p></intro><level class="para1" eId="section-99-7-a"><num>(a)</num><content><p>that publication of information about that aspect would be against the public interest, or</p></content></level><level class="para1" eId="section-99-7-b"><num>(b)</num><content><p>that that aspect is a technical or operational matter not affecting the public.</p></content></level></subsection><subsection eId="section-99-8"><num>(8)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-99-8-a"><num>(a)</num><content><p>the reference in subsection (2)(a) to matters of common regulatory interest is to be read in accordance with section 98(4), and</p></content></level><level class="para1" eId="section-99-8-b"><num>(b)</num><content><p>references to relevant functions are to be read in accordance with section 98(5).</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-1"><num>(1)</num><intro><p>The following are regulators for the purposes of this section—</p></intro><level class="para1" eId="section-99-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level><level class="para1" eId="section-99-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level><level class="para1" eId="section-99-1-c"><num>(c)</num><content><p>the FCA;</p></content></level><level class="para1" eId="section-99-1-d"><num>(d)</num><content><p>the PRA.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-a"><num>(a)</num><content><p>the Payment Systems Regulator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-b"><num>(b)</num><content><p>the Bank of England;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-c"><num>(c)</num><content><p>the FCA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-d"><num>(d)</num><content><p>the PRA.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-2"><num>(2)</num><intro><p>The regulators must prepare and maintain a memorandum which describes in general terms—</p></intro><level class="para1" eId="section-99-2-a"><num>(a)</num><content><p>the role of each regulator in relation to the exercise of relevant functions which relate to matters of common regulatory interest, and</p></content></level><level class="para1" eId="section-99-2-b"><num>(b)</num><content><p>how the regulators intend to comply with section 98 in relation to the exercise of such functions.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-2-a"><num>(a)</num><content><p>the role of each regulator in relation to the exercise of relevant functions which relate to matters of common regulatory interest, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-2-b"><num>(b)</num><content><p>how the regulators intend to comply with section 98 in relation to the exercise of such functions.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-3"><num>(3)</num><content><p>The regulators must review the memorandum at least once in each calendar year.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-4"><num>(4)</num><content><p>The regulators must give the Treasury a copy of the memorandum and any revised memorandum.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-5"><num>(5)</num><content><p>The Treasury must lay before Parliament a copy of any document received by them under this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-7"><num>(7)</num><intro><p>The memorandum need not relate to any aspect of compliance with section 98 if the regulators consider—</p></intro><level class="para1" eId="section-99-7-a"><num>(a)</num><content><p>that publication of information about that aspect would be against the public interest, or</p></content></level><level class="para1" eId="section-99-7-b"><num>(b)</num><content><p>that that aspect is a technical or operational matter not affecting the public.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-7-a"><num>(a)</num><content><p>that publication of information about that aspect would be against the public interest, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-7-b"><num>(b)</num><content><p>that that aspect is a technical or operational matter not affecting the public.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-8"><num>(8)</num><intro><p>In this section—</p></intro><level class="para1" eId="section-99-8-a"><num>(a)</num><content><p>the reference in subsection (2)(a) to matters of common regulatory interest is to be read in accordance with section 98(4), and</p></content></level><level class="para1" eId="section-99-8-b"><num>(b)</num><content><p>references to relevant functions are to be read in accordance with section 98(5).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-8-a"><num>(a)</num><content><p>the reference in subsection (2)(a) to matters of common regulatory interest is to be read in accordance with section 98(4), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-8-b"><num>(b)</num><content><p>references to relevant functions are to be read in accordance with section 98(5).</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-100"><num>100</num><heading>Power of Bank to require Regulator to refrain from specified action</heading><subsection eId="section-100-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-100-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-100-3"><num>(3)</num><intro><p>The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>have serious consequences for business or other interests in the United Kingdom, or</p></content></level><level class="para1" eId="section-100-3-c"><num>(c)</num><content><p>have an adverse effect on the Bank's ability to act in its capacity as a monetary authority.</p></content></level></subsection><subsection eId="section-100-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-100-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-100-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-100-7"><num>(7)</num><content><p>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 <noteRef href="#key-18f87d6628824c5766e1b9a7da26f848" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-3"><num>(3)</num><intro><p>The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-100-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-100-3-b"><num>(b)</num><content><p>have serious consequences for business or other interests in the United Kingdom, or</p></content></level><level class="para1" eId="section-100-3-c"><num>(c)</num><content><p>have an adverse effect on the Bank's ability to act in its capacity as a monetary authority.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-3-b"><num>(b)</num><content><p>have serious consequences for business or other interests in the United Kingdom, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-3-c"><num>(c)</num><content><p>have an adverse effect on the Bank's ability to act in its capacity as a monetary authority.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-4"><num>(4)</num><content><p>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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-100-7"><num>(7)</num><content><p>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 <noteRef href="#key-18f87d6628824c5766e1b9a7da26f848" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-101"><num>101</num><heading>Power of FCA to require Regulator to refrain from specified action</heading><subsection eId="section-101-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the FCA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-101-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-101-3"><num>(3)</num><content><p>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).</p></content></subsection><subsection eId="section-101-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-101-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-101-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-101-7"><num>(7)</num><content><p>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 <noteRef href="#key-cec808fc7fbcf9bd0f3b0c2066c008ee" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the FCA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-3"><num>(3)</num><content><p>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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-4"><num>(4)</num><content><p>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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-101-7"><num>(7)</num><content><p>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 <noteRef href="#key-cec808fc7fbcf9bd0f3b0c2066c008ee" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102"><num>102</num><heading>Power of PRA to require Regulator to refrain from specified action</heading><subsection eId="section-102-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the PRA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection><subsection eId="section-102-2"><num>(2)</num><intro><p>The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to—</p></intro><level class="para1" eId="section-102-2-a"><num>(a)</num><content><p>a class of PRA-authorised persons, or</p></content></level><level class="para1" eId="section-102-2-b"><num>(b)</num><content><p>a particular PRA-authorised person.</p></content></level></subsection><subsection eId="section-102-3"><num>(3)</num><intro><p>The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content><p>result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-c"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom, or</p></content></level><level class="para1" eId="section-102-3-d"><num>(d)</num><content><p>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).</p></content></level></subsection><subsection eId="section-102-4"><num>(4)</num><content><p>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).</p></content></subsection><subsection eId="section-102-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-102-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection><subsection eId="section-102-7"><num>(7)</num><content><p>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 <noteRef href="#key-ea601705a6b7aa4d408abb82ce180745" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection><subsection eId="section-102-8"><num>(8)</num><content><p>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.</p></content></subsection><subsection eId="section-102-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-core-services" eId="term-core-services">core services</term>” has the same meaning as in FSMA 2000 (see section 142C of that Act), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” has the same meaning as in FSMA 2000 (see section 2B(5) of that Act).</p></content></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-1"><num>(1)</num><content><p>Where the first, second and third conditions are met, the PRA may give a direction under this section to the Payment Systems Regulator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-2"><num>(2)</num><intro><p>The first condition is that the Payment Systems Regulator is proposing to exercise any of its powers under this Part in relation to—</p></intro><level class="para1" eId="section-102-2-a"><num>(a)</num><content><p>a class of PRA-authorised persons, or</p></content></level><level class="para1" eId="section-102-2-b"><num>(b)</num><content><p>a particular PRA-authorised person.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-a"><num>(a)</num><content><p>a class of PRA-authorised persons, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-b"><num>(b)</num><content><p>a particular PRA-authorised person.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-3"><num>(3)</num><intro><p>The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—</p></intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content><p>result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level><level class="para1" eId="section-102-3-c"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom, or</p></content></level><level class="para1" eId="section-102-3-d"><num>(d)</num><content><p>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).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-3-a"><num>(a)</num><content><p>threaten the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-3-b"><num>(b)</num><content><p>result in the failure of a PRA-authorised person in a way that would have an adverse effect on the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-3-c"><num>(c)</num><content><p>threaten the continuity of core services provided in the United Kingdom, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-3-d"><num>(d)</num><content><p>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).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-4"><num>(4)</num><content><p>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).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-6"><num>(6)</num><content><p>The direction may be expressed to have effect during a specified period or until revoked.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102-7"><num>(7)</num><content><p>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 <noteRef href="#key-ea601705a6b7aa4d408abb82ce180745" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... international obligation of the United Kingdom.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-8"><num>(8)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-9"><num>(9)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-core-services" eId="term-core-services">core services</term>” has the same meaning as in FSMA 2000 (see section 142C of that Act), and</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pra-authorised-person" eId="term-pra-authorised-person">PRA-authorised person</term>” has the same meaning as in FSMA 2000 (see section 2B(5) of that Act).</p></content></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-98993d455083ae8e7c2fd39da4be89e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, is to be read in accordance with section 183 of the Banking Act 2009;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><content><p><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">“</ins><term refersTo="#term-investment-bank-insolvency"><ins ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">investment bank insolvency</ins></term><ins class="last" ukl:ChangeId="key-45a8511cbefa8be492ef5c3fe2250cea-1498413499737" ukl:CommentaryRef="key-45a8511cbefa8be492ef5c3fe2250cea">” means any procedure established by regulations under section 233 of the Banking Act 2009.</ins></p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><intro><p>The board is to consist of the following members—</p></intro><level class="para1" eId="schedule-4-paragraph-2-2-a"><num>(a)</num><content><p>a member to chair it, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-b"><num>(b)</num><content><p>a member to be the Managing Director, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-c"><num>(c)</num><content><p>one or more other members appointed by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>The persons who may be appointed under sub-paragraph (2) include persons who are members of the FCA's governing body.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-5"><num>(5)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-6"><num>(6)</num><content><p>A person appointed under sub-paragraph (2)(c) is liable to removal from office by the FCA.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-4-paragraph-5-1"><num>(1)</num><intro><p>The Regulator may make arrangements for any of its functions to be discharged by—</p></intro><level class="para1" eId="schedule-4-paragraph-5-1-a"><num>(a)</num><content><p>a committee, sub-committee, officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-1-b"><num>(b)</num><content><p>an officer or member of staff of the FCA.</p></content></level><wrapUp><p>This is subject to sub-paragraphs (2) to (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-5-2"><num>(2)</num><content><p>In exercising any functions within sub-paragraph (3), the Regulator must act through its board.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-5-3"><num>(3)</num><intro><p>The functions referred to in sub-paragraph (2) are—</p></intro><level class="para1" eId="schedule-4-paragraph-5-3-a"><num>(a)</num><content><p>giving general directions under section 54;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-b"><num>(b)</num><content><p>imposing generally-imposed requirements under section 55.</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-c"><num><ins class="first" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"><noteRef uk:name="commentary" href="#key-b7a3182a9a00b243c6eef3b3b3d589f6" class="commentary"/>(c)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making technical standards in accordance with section 97A; and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-d"><num><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">(d)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment </ins><abbr title="et cetera" xml:lang="la"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">etc.</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">) (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins class="last" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit) Regulations 2018.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-5-4"><num>(4)</num><content><p>The function of issuing general guidance may not be discharged by an officer or member of staff of the Regulator or of the FCA.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-4-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-2"><num>(2)</num><intro><p>The Comptroller and Auditor General must—</p></intro><level class="para1" eId="schedule-4-paragraph-8-2-a"><num>(a)</num><content><p>examine, certify and report on accounts received under this paragraph, and</p></content></level><level class="para1" eId="schedule-4-paragraph-8-2-b"><num>(b)</num><content><p>send a copy of the certified accounts and the report to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-8-3"><num>(3)</num><content><p>The Treasury must lay the copy of the certified accounts and the report before Parliament.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-4"><num>(4)</num><content><p>The Regulator must send a copy of the certified accounts and the report to the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “<term refersTo="#term-annual-accounts" eId="term-annual-accounts">annual accounts</term>” has the meaning given by section 471 of the Companies Act 2006.</p></content></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-8-paragraph-10-1"><num>(1)</num><content><p>Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (7), after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ea)</num><content><p>in relation to the Financial Conduct Authority, section 234I of the Financial Services and Markets Act 2000;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (8), after “the Office of Rail Regulation,” insert <quotedText>“
the Financial Conduct Authority,
”</quotedText>.</mod></p></content></subparagraph></paragraph>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-f48949237bd2d22d9b0b209d30fe732f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-8f9732073e8954dc5d8b1e285fb57b83-1505817568316" ukl:CommentaryRef="key-8f9732073e8954dc5d8b1e285fb57b83"><noteRef uk:name="commentary" href="#key-8f9732073e8954dc5d8b1e285fb57b83" class="commentary"/>a</ins> 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;</p></content></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-technical-standards"><heading><ins class="first" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><noteRef uk:name="commentary" href="#key-dc6b3a1cfe6a5619652300e707df9abb" class="commentary"/>Technical Standards</ins></heading><section eId="section-97A"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97A.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Technical standards</ins></heading><subsection eId="section-97A-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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 </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity to make </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation (the “original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power”) by regulations made under section 8 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection><subsection eId="section-97A-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The power to make technical standards includes power to modify, amend or revoke—</ins></p></intro><level class="para1" eId="section-97A-2-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any technical standards made by the Payment Systems Regulator under that power;</ins></p></content></level><level class="para1" eId="section-97A-2-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation made by an </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity under the original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power which forms part of </ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><ins class="substitution first last" ukl:ChangeId="key-32a67e8c3d86d56c86583365876d8a48-1706700933025" ukl:CommentaryRef="key-32a67e8c3d86d56c86583365876d8a48"><noteRef uk:name="commentary" href="#key-32a67e8c3d86d56c86583365876d8a48" class="commentary"/>assimilated</ins></ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> law.</ins></p></content></level></subsection><subsection eId="section-97A-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection><subsection eId="section-97A-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of this section, “</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation” has the meaning given in section 14 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection></section><section eId="section-97B"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97B.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Standards instruments</ins></heading><subsection eId="section-97B-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection><subsection eId="section-97B-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument must specify the provision under which the instrument is being made.</ins></p></content></subsection><subsection eId="section-97B-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">To the extent that a standards instrument does not comply with subsection (2), it is void.</ins></p></content></subsection><subsection eId="section-97B-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection><subsection eId="section-97B-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury must lay before Parliament a copy of each standards instrument made under this section.</ins></p></content></subsection><subsection eId="section-97B-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a standards instrument.</ins></p></content></subsection></section><section eId="section-97C"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97C.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Treasury approval</ins></heading><subsection eId="section-97C-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument may be made only if it has been approved by the Treasury.</ins></p></content></subsection><subsection eId="section-97C-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury may refuse to approve a standards instrument if subsection (3) applies.</ins></p></content></subsection><subsection eId="section-97C-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">This subsection applies if it appears to the Treasury that the instrument would—</ins></p></intro><level class="para1" eId="section-97C-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">have implications for public funds (within the meaning of section 78(2) of the Banking Act 2009); or</ins></p></content></level><level class="para1" eId="section-97C-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">prejudice any current or proposed negotiations for an international agreement between the United Kingdom and one or more other countries, international organisations or institutions.</ins></p></content></level></subsection><subsection eId="section-97C-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of subsection (3), “international organisations” includes the European Union.</ins></p></content></subsection><subsection eId="section-97C-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection><subsection eId="section-97C-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Provision of a draft standards instrument to the Treasury for consultation does not amount to submission of the instrument for approval.</ins></p></content></subsection><subsection eId="section-97C-7"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(7)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">If the Treasury do not approve the instrument, they must—</ins></p></intro><level class="para1" eId="section-97C-7-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">set out in the notice given under subsection (5) the Treasury’s reasons for not approving the instrument;</ins></p></content></level><level class="para1" eId="section-97C-7-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">lay before Parliament—</ins></p></intro><level class="para2" eId="section-97C-7-b-i"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(i)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of that notice;</ins></p></content></level><level class="para2" eId="section-97C-7-b-ii"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(ii)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.</ins></p></content></level></level></subsection><subsection eId="section-97C-8"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(8)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection></section><section eId="section-97D"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97D.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Application of section 104 of this Act and Part 9A of the Financial Services and Markets Act 2000</ins></heading><subsection eId="section-97D-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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—</ins></p></intro><level class="para1" eId="section-97D-1-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”);</ins></p></content></level><level class="para1" eId="section-97D-1-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></level></subsection><subsection eId="section-97D-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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).</ins></p></content></subsection><subsection eId="section-97D-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The provisions referred to in subsection (2) are—</ins></p></intro><level class="para1" eId="section-97D-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 137T (general supplementary powers) (ignoring paragraph (b));</ins></p></content></level><level class="para1" eId="section-97D-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138E (limit on effect of contravening rules) (ignoring subsection (3));</ins></p></content></level><level class="para1" eId="section-97D-3-c"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(c)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138F (notification of rules) (ignoring subsection (2));</ins></p></content></level><level class="para1" eId="section-97D-3-d"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(d)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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)).</ins></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-97A"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97A.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Technical standards</ins></heading><subsection eId="section-97A-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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 </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity to make </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation (the “original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power”) by regulations made under section 8 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection><subsection eId="section-97A-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The power to make technical standards includes power to modify, amend or revoke—</ins></p></intro><level class="para1" eId="section-97A-2-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any technical standards made by the Payment Systems Regulator under that power;</ins></p></content></level><level class="para1" eId="section-97A-2-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation made by an </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity under the original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power which forms part of </ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><ins class="substitution first last" ukl:ChangeId="key-32a67e8c3d86d56c86583365876d8a48-1706700933025" ukl:CommentaryRef="key-32a67e8c3d86d56c86583365876d8a48"><noteRef uk:name="commentary" href="#key-32a67e8c3d86d56c86583365876d8a48" class="commentary"/>assimilated</ins></ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> law.</ins></p></content></level></subsection><subsection eId="section-97A-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection><subsection eId="section-97A-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of this section, “</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation” has the meaning given in section 14 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97A-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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 </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity to make </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation (the “original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power”) by regulations made under section 8 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-97A-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The power to make technical standards includes power to modify, amend or revoke—</ins></p></intro><level class="para1" eId="section-97A-2-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any technical standards made by the Payment Systems Regulator under that power;</ins></p></content></level><level class="para1" eId="section-97A-2-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation made by an </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity under the original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power which forms part of </ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><ins class="substitution first last" ukl:ChangeId="key-32a67e8c3d86d56c86583365876d8a48-1706700933025" ukl:CommentaryRef="key-32a67e8c3d86d56c86583365876d8a48"><noteRef uk:name="commentary" href="#key-32a67e8c3d86d56c86583365876d8a48" class="commentary"/>assimilated</ins></ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> law.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97A-2-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any technical standards made by the Payment Systems Regulator under that power;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-97A-2-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">any </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation made by an </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> entity under the original </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> power which forms part of </ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"><ins class="substitution first last" ukl:ChangeId="key-32a67e8c3d86d56c86583365876d8a48-1706700933025" ukl:CommentaryRef="key-32a67e8c3d86d56c86583365876d8a48"><noteRef uk:name="commentary" href="#key-32a67e8c3d86d56c86583365876d8a48" class="commentary"/>assimilated</ins></ins><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> law.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97A-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97A-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of this section, “</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">EU</ins></abbr><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb"> tertiary legislation” has the meaning given in section 14 of the European Union (Withdrawal) Act 2018.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97B.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Standards instruments</ins></heading><subsection eId="section-97B-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection><subsection eId="section-97B-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument must specify the provision under which the instrument is being made.</ins></p></content></subsection><subsection eId="section-97B-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">To the extent that a standards instrument does not comply with subsection (2), it is void.</ins></p></content></subsection><subsection eId="section-97B-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection><subsection eId="section-97B-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury must lay before Parliament a copy of each standards instrument made under this section.</ins></p></content></subsection><subsection eId="section-97B-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a standards instrument.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument must specify the provision under which the instrument is being made.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">To the extent that a standards instrument does not comply with subsection (2), it is void.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury must lay before Parliament a copy of each standards instrument made under this section.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97B-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a standards instrument.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97C.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Treasury approval</ins></heading><subsection eId="section-97C-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument may be made only if it has been approved by the Treasury.</ins></p></content></subsection><subsection eId="section-97C-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury may refuse to approve a standards instrument if subsection (3) applies.</ins></p></content></subsection><subsection eId="section-97C-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">This subsection applies if it appears to the Treasury that the instrument would—</ins></p></intro><level class="para1" eId="section-97C-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">have implications for public funds (within the meaning of section 78(2) of the Banking Act 2009); or</ins></p></content></level><level class="para1" eId="section-97C-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">prejudice any current or proposed negotiations for an international agreement between the United Kingdom and one or more other countries, international organisations or institutions.</ins></p></content></level></subsection><subsection eId="section-97C-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of subsection (3), “international organisations” includes the European Union.</ins></p></content></subsection><subsection eId="section-97C-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection><subsection eId="section-97C-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Provision of a draft standards instrument to the Treasury for consultation does not amount to submission of the instrument for approval.</ins></p></content></subsection><subsection eId="section-97C-7"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(7)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">If the Treasury do not approve the instrument, they must—</ins></p></intro><level class="para1" eId="section-97C-7-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">set out in the notice given under subsection (5) the Treasury’s reasons for not approving the instrument;</ins></p></content></level><level class="para1" eId="section-97C-7-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">lay before Parliament—</ins></p></intro><level class="para2" eId="section-97C-7-b-i"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(i)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of that notice;</ins></p></content></level><level class="para2" eId="section-97C-7-b-ii"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(ii)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.</ins></p></content></level></level></subsection><subsection eId="section-97C-8"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(8)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">A standards instrument may be made only if it has been approved by the Treasury.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The Treasury may refuse to approve a standards instrument if subsection (3) applies.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">This subsection applies if it appears to the Treasury that the instrument would—</ins></p></intro><level class="para1" eId="section-97C-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">have implications for public funds (within the meaning of section 78(2) of the Banking Act 2009); or</ins></p></content></level><level class="para1" eId="section-97C-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">prejudice any current or proposed negotiations for an international agreement between the United Kingdom and one or more other countries, international organisations or institutions.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97C-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">have implications for public funds (within the meaning of section 78(2) of the Banking Act 2009); or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97C-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">prejudice any current or proposed negotiations for an international agreement between the United Kingdom and one or more other countries, international organisations or institutions.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-4"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(4)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">For the purposes of subsection (3), “international organisations” includes the European Union.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-5"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(5)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-6"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(6)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Provision of a draft standards instrument to the Treasury for consultation does not amount to submission of the instrument for approval.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-7"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(7)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">If the Treasury do not approve the instrument, they must—</ins></p></intro><level class="para1" eId="section-97C-7-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">set out in the notice given under subsection (5) the Treasury’s reasons for not approving the instrument;</ins></p></content></level><level class="para1" eId="section-97C-7-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">lay before Parliament—</ins></p></intro><level class="para2" eId="section-97C-7-b-i"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(i)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of that notice;</ins></p></content></level><level class="para2" eId="section-97C-7-b-ii"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(ii)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.</ins></p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97C-7-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">set out in the notice given under subsection (5) the Treasury’s reasons for not approving the instrument;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97C-7-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">lay before Parliament—</ins></p></intro><level class="para2" eId="section-97C-7-b-i"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(i)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of that notice;</ins></p></content></level><level class="para2" eId="section-97C-7-b-ii"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(ii)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.</ins></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-97C-7-b-i"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(i)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of that notice;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-97C-7-b-ii"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(ii)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">a copy of any statement made by the Payment Systems Regulator as to its reasons for wishing to make the instrument.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97C-8"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(8)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97D"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">97D.</ins></num><heading><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">Application of section 104 of this Act and Part 9A of the Financial Services and Markets Act 2000</ins></heading><subsection eId="section-97D-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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—</ins></p></intro><level class="para1" eId="section-97D-1-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”);</ins></p></content></level><level class="para1" eId="section-97D-1-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></level></subsection><subsection eId="section-97D-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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).</ins></p></content></subsection><subsection eId="section-97D-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The provisions referred to in subsection (2) are—</ins></p></intro><level class="para1" eId="section-97D-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 137T (general supplementary powers) (ignoring paragraph (b));</ins></p></content></level><level class="para1" eId="section-97D-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138E (limit on effect of contravening rules) (ignoring subsection (3));</ins></p></content></level><level class="para1" eId="section-97D-3-c"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(c)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138F (notification of rules) (ignoring subsection (2));</ins></p></content></level><level class="para1" eId="section-97D-3-d"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(d)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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)).</ins></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97D-1"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(1)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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—</ins></p></intro><level class="para1" eId="section-97D-1-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”);</ins></p></content></level><level class="para1" eId="section-97D-1-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97D-1-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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”);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97D-1-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97D-2"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(2)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-97D-3"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(3)</ins></num><intro><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">The provisions referred to in subsection (2) are—</ins></p></intro><level class="para1" eId="section-97D-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 137T (general supplementary powers) (ignoring paragraph (b));</ins></p></content></level><level class="para1" eId="section-97D-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138E (limit on effect of contravening rules) (ignoring subsection (3));</ins></p></content></level><level class="para1" eId="section-97D-3-c"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(c)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138F (notification of rules) (ignoring subsection (2));</ins></p></content></level><level class="para1" eId="section-97D-3-d"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(d)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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)).</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97D-3-a"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(a)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 137T (general supplementary powers) (ignoring paragraph (b));</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97D-3-b"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(b)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138E (limit on effect of contravening rules) (ignoring subsection (3));</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97D-3-c"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(c)</ins></num><content><p><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">section 138F (notification of rules) (ignoring subsection (2));</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-97D-3-d"><num><ins ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">(d)</ins></num><content><p><ins class="last" ukl:ChangeId="key-dc6b3a1cfe6a5619652300e707df9abb-1544460023344" ukl:CommentaryRef="key-dc6b3a1cfe6a5619652300e707df9abb">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)).</ins></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-consultation-accountability-and-oversight"><heading><i>Consultation, accountability and oversight</i></heading><section eId="section-102B"><num><ins class="first" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d"><noteRef uk:name="commentary" href="#key-516322097f0876cec59b72e8e7eb670d" class="commentary"/>102B</ins></num><heading><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Matters to consider when imposing generally applicable requirements</ins></heading><subsection eId="section-102B-1"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(1)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">This section applies where the Payment Systems Regulator proposes to impose a generally applicable requirement (as defined by section 104(1)).</ins></p></content></subsection><subsection eId="section-102B-2"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(2)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">The Regulator must have regard to any specified matters that are relevant to the imposition of the requirement in question.</ins></p></content></subsection><subsection eId="section-102B-3"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(3)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">“</ins><term refersTo="#term-specified"><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Specified</ins></term><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">” means specified in regulations made by the Treasury for the purposes of this section.</ins></p></content></subsection><subsection eId="section-102B-4"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(4)</ins></num><intro><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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—</ins></p></intro><level class="para1" eId="section-102B-4-a"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(a)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the power under which the function is carried out;</ins></p></content></level><level class="para1" eId="section-102B-4-b"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(b)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the persons to whom the carrying out of the function apply;</ins></p></content></level><level class="para1" eId="section-102B-4-c"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(c)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the activities or subject-matter to which the function relates.</ins></p></content></level></subsection><subsection eId="section-102B-5"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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.</ins></p></content></subsection></section><section eId="section-103"><num>103</num><heading>Regulator's general duty to consult</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—</p></intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content><p>the extent to which its general policies and practices are consistent with its general duties under section 49, and</p></content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content><p>how its payment systems objectives may best be achieved.</p></content></level></subsection><subsection eId="section-103-2"><num>(2)</num><intro><p>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” for the purposes of this section—</p></intro><level class="para1" eId="section-103-2-a"><num>(a)</num><content><p>participants in regulated payment systems, and</p></content></level><level class="para1" eId="section-103-2-b"><num>(b)</num><content><p>those who use, or are likely to use, services provided by regulated payment systems.</p></content></level></subsection><subsection eId="section-103-3"><num>(3)</num><content><p>Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.</p></content></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).</p></content></subsection><subsection eId="section-103-5A"><num><ins class="first" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6"><noteRef uk:name="commentary" href="#key-e3bf7f20a32230f5fac2f1698f44d2c6" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></subsection><subsection eId="section-103-5B"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5B)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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.</ins></p></content></subsection><subsection eId="section-103-5C"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5C)</ins></num><intro><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">Regulations under subsection (5B) may make provision in respect of a panel—</ins></p></intro><level class="para1" eId="section-103-5C-a"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(a)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">generally, or</ins></p></content></level><level class="para1" eId="section-103-5C-b"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></level></subsection><subsection eId="section-103-6"><num>(6)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-103-6-a"><num>(a)</num><content><p>consider representations that are made to it in accordance with arrangements made under this section, and</p></content></level><level class="para1" eId="section-103-6-b"><num>(b)</num><content><p>from time to time publish, in such manner as it thinks fit, responses to the representations.</p></content></level></subsection></section><section eId="section-104"><num>104</num><heading>Consultation in relation to generally applicable requirements</heading><subsection eId="section-104-1"><num>(1)</num><intro><p>In this <ins class="substitution first last" ukl:ChangeId="key-aa5a86e0cfa2d91b7c2190860abee606-1695298093734" ukl:CommentaryRef="key-aa5a86e0cfa2d91b7c2190860abee606"><noteRef uk:name="commentary" href="#key-aa5a86e0cfa2d91b7c2190860abee606" class="commentary"/>Part</ins> references to imposing a generally applicable requirement are to—</p></intro><level class="para1" eId="section-104-1-a"><num>(a)</num><content><p>giving a general direction under section 54, or</p></content></level><level class="para1" eId="section-104-1-b"><num>(b)</num><content><p>imposing a generally-imposed requirement under section 55,</p></content></level><wrapUp><p>and references to the requirement are to be read accordingly.</p></wrapUp></subsection><subsection eId="section-104-2"><num>(2)</num><intro><p>Before imposing a generally applicable requirement, the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-104-2-a"><num>(a)</num><content><p>consult the Bank of England, the FCA and the PRA, and</p></content></level><level class="para1" eId="section-104-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-104-3"><num>(3)</num><intro><p>The draft must be accompanied by—</p></intro><level class="para1" eId="section-104-3-a"><num>(a)</num><content><p>a cost benefit analysis,</p></content></level><level class="para1" eId="section-104-3-b"><num>(b)</num><content><p>an explanation of the purpose of the proposed requirement,</p></content></level><level class="para1" eId="section-104-3-ba"><num><ins class="first" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63"><noteRef uk:name="commentary" href="#key-d5a5267ce5a0e78b546feb61715a6f63" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63">an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the proposed requirement,</ins></p></content></level><level class="para1" eId="section-104-3-c"><num>(c)</num><content><p>an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and</p></content></level><level class="para1" eId="section-104-3-d"><num>(d)</num><content><p>notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.</p></content></level></subsection><subsection eId="section-104-4"><num>(4)</num><content><p>Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).</p></content></subsection><subsection eId="section-104-5"><num>(5)</num><intro><p>If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="section-104-5-a"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3)(d), and</p></content></level><level class="para1" eId="section-104-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subsection><subsection eId="section-104-5A"><num><ins class="first" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab"><noteRef uk:name="commentary" href="#key-310457b8f9a986625320a8dded3872ab" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection><subsection eId="section-104-5B"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5B)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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).</ins></p></content></subsection><subsection eId="section-104-5C"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5C)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">In this section “</ins><term refersTo="#term-data-protection-legislation"><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">data protection legislation</ins></term><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).</ins></p></content></subsection><subsection eId="section-104-5D"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5D)</ins></num><content><p><ins class="last" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection><subsection eId="section-104-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-104-7"><num>(7)</num><intro><p>For the purposes of this section a “cost benefit analysis” is—</p></intro><level class="para1" eId="section-104-7-a"><num>(a)</num><intro><p>an analysis of the costs together with an analysis of the benefits that will arise—</p></intro><level class="para2" eId="section-104-7-a-i"><num>(i)</num><content><p>if the proposed requirement is imposed, or</p></content></level><level class="para2" eId="section-104-7-a-ii"><num>(ii)</num><content><p>if subsection (6) applies, from the requirement imposed, and</p></content></level></level><level class="para1" eId="section-104-7-b"><num>(b)</num><content><p>subject to subsection (8), an estimate of those costs and of those benefits.</p></content></level></subsection><subsection eId="section-104-8"><num>(8)</num><intro><p>If, in the opinion of the Payment Systems Regulator—</p></intro><level class="para1" eId="section-104-8-a"><num>(a)</num><content><p>the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or</p></content></level><level class="para1" eId="section-104-8-b"><num>(b)</num><content><p>it is not reasonably practicable to produce an estimate,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-104-9"><num>(9)</num><content><p>The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).</p></content></subsection><subsection eId="section-104-10"><num>(10)</num><content><p>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.</p></content></subsection><subsection eId="section-104-11"><num>(11)</num><intro><p>Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—</p></intro><level class="para1" eId="section-104-11-a"><num>(a)</num><content><p>there will be no increase in costs, or</p></content></level><level class="para1" eId="section-104-11-b"><num>(b)</num><content><p>there will be an increase in costs but the increase will be of minimal significance.</p></content></level></subsection><subsection eId="section-104-12"><num>(12)</num><intro><p>In subsection (11) the “<term refersTo="#term-appropriate-comparison" eId="term-appropriate-comparison">appropriate comparison</term>” means—</p></intro><level class="para1" eId="section-104-12-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-104-12-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-104-12A"><num><ins class="first" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6"><noteRef uk:name="commentary" href="#key-c8b0a72b17dfefbc8f51bec6ff84b2f6" class="commentary"/>(12A)</ins></num><content><p><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection><subsection eId="section-104-12B"><num><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">(12B)</ins></num><content><p><ins class="last" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection></section><section eId="section-104A"><num><ins class="first" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268"><noteRef uk:name="commentary" href="#key-4f6d1291d9ec5d3cfde30af3d579d268" class="commentary"/>104A</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Requirements in connection with public consultations</ins></heading><subsection eId="section-104A-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Payment Systems Regulator issues a public consultation.</ins></p></content></subsection><subsection eId="section-104A-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104A-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104A-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection><subsection eId="section-104A-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section a “statutory panel”—</ins></p></intro><level class="para1" eId="section-104A-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the Payment Systems Regulator, means a panel established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104A-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the FCA, has the meaning given by section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104A-5-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the PRA, has the meaning given by section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection></section><section eId="section-104B"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104B</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Duty of Regulator to review generally applicable requirements</ins></heading><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must keep under review generally any generally applicable requirements.</ins></p></content></section><section eId="section-104C"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104C</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy relating to review of requirements</ins></heading><subsection eId="section-104C-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must prepare and publish a statement of its policy with respect to its review of requirements under section 104B.</ins></p></content></subsection><subsection eId="section-104C-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104C-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under section 104B, and</ins></p></content></level><level class="para1" eId="section-104C-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the arrangements to ensure that those representations are considered.</ins></p></content></level></subsection><subsection eId="section-104C-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section “</ins><term refersTo="#term-relevant-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">relevant panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” means—</ins></p></intro><level class="para1" eId="section-104C-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the Payment Systems Regulator established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104C-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104C-3-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the PRA mentioned in section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection><subsection eId="section-104C-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104C-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104D"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104D</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Requirement to review specified requirements</ins></heading><subsection eId="section-104D-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104D-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the requirement has been in force for at least 12 months,</ins></p></content></level><level class="para1" eId="section-104D-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the Treasury consider that it is in the public interest that the requirement is reviewed, and</ins></p></content></level><level class="para1" eId="section-104D-1-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">it does not appear to the Treasury that—</ins></p></intro><level class="para2" eId="section-104D-1-c-i"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(i)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the regulator is carrying out, or proposes to carry out, a review of that requirement, or</ins></p></content></level><level class="para2" eId="section-104D-1-c-ii"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(ii)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.</ins></p></content></level></level></subsection><subsection eId="section-104D-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Treasury must consult the Payment Systems Regulator before giving a direction under subsection (1).</ins></p></content></subsection><subsection eId="section-104D-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104D-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under subsection (1) may—</ins></p></intro><level class="para1" eId="section-104D-4-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify the period within which a review must be carried out;</ins></p></content></level><level class="para1" eId="section-104D-4-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">determine the scope and conduct of a review;</ins></p></content></level><level class="para1" eId="section-104D-4-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">require the provision of interim reports during the carrying out of a review.</ins></p></content></level></subsection><subsection eId="section-104D-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Provision made in a direction under subsection (4)(b) may include a requirement—</ins></p></intro><level class="para1" eId="section-104D-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator;</ins></p></content></level><level class="para1" eId="section-104D-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for any such appointment to be made only with the approval of the Treasury.</ins></p></content></level></subsection><subsection eId="section-104D-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after giving the direction the Treasury must—</ins></p></intro><level class="para1" eId="section-104D-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the direction, and</ins></p></content></level><level class="para1" eId="section-104D-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subsection><subsection eId="section-104D-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Subsection (6) does not apply where the Treasury consider that publication of the direction would be against the public interest.</ins></p></content></subsection><subsection eId="section-104D-8"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(8)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under this section may be varied or revoked by the giving of a further direction.</ins></p></content></subsection></section><section eId="section-104E"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104E</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Report on certain reviews</ins></heading><subsection eId="section-104E-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Treasury have given a direction to the Payment Systems Regulator under section 104D(1) to carry out a review.</ins></p></content></subsection><subsection eId="section-104E-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104E-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether the requirements under review advance one or more of the payment systems objectives;</ins></p></content></level><level class="para1" eId="section-104E-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether and to what extent the requirements are functioning effectively and achieving their intended purpose;</ins></p></content></level><level class="para1" eId="section-104E-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any amendments need to be made to the requirements and, if so, what those amendments should be;</ins></p></content></level><level class="para1" eId="section-104E-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any requirements should be withdrawn (with or without replacement);</ins></p></content></level><level class="para1" eId="section-104E-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any other action should be taken and, if so, what that action should be.</ins></p></content></level></subsection><subsection eId="section-104E-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after receiving the report the Treasury must—</ins></p></intro><level class="para1" eId="section-104E-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the report, and</ins></p></content></level><level class="para1" eId="section-104E-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the report in such manner as the Treasury think fit.</ins></p></content></level></subsection><subsection eId="section-104E-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104F"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104F</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Power of Treasury to require the imposition of generally applicable requirements</ins></heading><subsection eId="section-104F-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104F-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Regulations under this section may—</ins></p></intro><level class="para1" eId="section-104F-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify matters that the requirement must cover;</ins></p></content></level><level class="para1" eId="section-104F-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify a period within which the requirement must be made.</ins></p></content></level></subsection><subsection eId="section-104F-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">But except so far as permitted by subsection (2), regulations under this section may not require the requirement to be imposed—</ins></p></intro><level class="para1" eId="section-104F-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in a specified form or with specified content, or</ins></p></content></level><level class="para1" eId="section-104F-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">to achieve or advance a specified outcome.</ins></p></content></level></subsection><subsection eId="section-104F-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104G"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104G</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Consultation with the FCA Cost Benefit Analysis Panel</ins></heading><subsection eId="section-104G-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104G-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of a cost benefit analysis under section 104(3)(a) or (6);</ins></p></content></level><level class="para1" eId="section-104G-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of its statement of policy under section 104H.</ins></p></content></level></subsection><subsection eId="section-104G-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104G-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The FCA Cost Benefit Analysis Panel must—</ins></p></intro><level class="para1" eId="section-104G-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3)(a) and (6), and</ins></p></content></level><level class="para1" eId="section-104G-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such review.</ins></p></content></level></subsection><subsection eId="section-104G-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must consider representations that are made to it by the FCA Cost Benefit Analysis Panel.</ins></p></content></subsection><subsection eId="section-104G-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must from time to time publish in such manner as it thinks fit responses to the representations.</ins></p></content></subsection><subsection eId="section-104G-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section references to the “</ins><term refersTo="#term-fca-cost-benefit-analysis-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">FCA Cost Benefit Analysis Panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” are to the panel established under section 138IA of FSMA 2000.</ins></p></content></subsection></section><section eId="section-104H"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104H</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy in relation to cost benefit analyses</ins></heading><subsection eId="section-104H-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104H-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104H-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the methodology adopted in preparing cost benefit analyses;</ins></p></content></level><level class="para1" eId="section-104H-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies;</ins></p></content></level><level class="para1" eId="section-104H-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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;</ins></p></content></level><level class="para1" eId="section-104H-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) are considered;</ins></p></content></level><level class="para1" eId="section-104H-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></level></subsection><subsection eId="section-104H-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may include whatever other information in relation to cost benefit analyses that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection><subsection eId="section-104H-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection><subsection eId="section-104H-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection><subsection eId="section-104H-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-104I"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104I</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy on panel appointments</ins></heading><subsection eId="section-104I-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection><subsection eId="section-104I-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104I-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the process adopted for making appointments;</ins></p></content></level><level class="para1" eId="section-104I-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters considered in determining who is appointed.</ins></p></content></level></subsection><subsection eId="section-104I-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may provide whatever other information in relation to the making of appointments that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection><subsection eId="section-104I-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection><subsection eId="section-104I-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection><subsection eId="section-104I-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Before publishing a statement under this section the Payment Systems Regulator must—</ins></p></intro><level class="para1" eId="section-104I-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">consult the Treasury about the proposed statement, and</ins></p></content></level><level class="para1" eId="section-104I-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">have regard to any representations the Treasury make in response to the consultation.</ins></p></content></level></subsection><subsection eId="section-104I-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section><section eId="section-105"><num>105</num><heading>Independent inquiries</heading><subsection eId="section-105-1"><num>(1)</num><content><p>Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.</p></content></subsection><subsection eId="section-105-2"><num>(2)</num><content><p><mod>In subsection (1), for “two” substitute <quotedText>“
three
”</quotedText>.</mod></p></content></subsection><subsection eId="section-105-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>The third case is where it appears to the Treasury that—</p></intro><level class="para1"><num>(a)</num><content><p>events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-105-4"><num>(4)</num><content><p><mod>In section 83(1) (interpretation), after the definition of “regulated activity” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“<term refersTo="#term-regulated-payment-system">regulated payment system</term>” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section><section eId="section-106"><num>106</num><heading>Investigations into regulatory failure</heading><subsection eId="section-106-1"><num>(1)</num><content><p>Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.</p></content></subsection><subsection eId="section-106-2"><num>(2)</num><content><p><mod>After section 76 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>76A</num><heading>Duty of Payment Systems Regulator to investigate and report on possible regulatory failure</heading><subsection><num>(1)</num><intro><p>Subsection (3) applies where it appears to the Payment Systems Regulator that—</p></intro><level class="para1"><num>(a)</num><intro><p>events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—</p></intro><level class="para2"><num>(i)</num><content><p>participants in the payment system, or</p></content></level><level class="para2"><num>(ii)</num><content><p>those who use, or are likely to use, the services provided by the payment system, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.</p></content></subsection><subsection><num>(3)</num><content><p>The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-participant">participant</term>”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-106-5"><num>(3)</num><intro><p>In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—</p></intro><level class="para1" eId="section-106-5-a"><num>(a)</num><content><p><mod>in subsection (1)(a), for “either regulator” substitute <quotedText>“
a regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-106-5-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-5-c"><num>(c)</num><content><p><mod>the heading of that section becomes <quotedText>“
<b>Power of Treasury to require regulator to undertake investigation</b>
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-106-6"><num>(4)</num><content><p><mod>In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-7"><num>(5)</num><content><p><mod>In section 79 (conclusion of investigation), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-8"><num>(6)</num><content><p><mod>In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-9"><num>(7)</num><content><p><mod>In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>section 76A(4);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-106-10"><num>(8)</num><intro><p>In section 83(1) (interpretation)—</p></intro><level class="para1" eId="section-106-10-a"><num>(a)</num><content><p><mod>after the definition of “listed securities” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;</p></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-10-b"><num>(b)</num><content><p><mod>in the definition of “regulator”, for “or the PRA” substitute <quotedText>“
, the PRA or the Payment Systems Regulator
”</quotedText>.</mod></p></content></level></subsection></section><section eId="section-107"><num>107</num><heading>Competition scrutiny</heading><subsection eId="section-107-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-107-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><intro><p>the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—</p></intro><level class="para2" eId="section-107-2-b-i"><num>(i)</num><content><p>any general directions given under section 54;</p></content></level><level class="para2" eId="section-107-2-b-ii"><num>(ii)</num><content><p>any generally-imposed requirements under section 55;</p></content></level><level class="para2" eId="section-107-2-b-iii"><num>(iii)</num><content><p>any guidance given under section 96.</p></content></level></level></subsection></section><section eId="section-107A"><num><ins class="first" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"><noteRef uk:name="commentary" href="#key-0a4fd89b480e5fd27184d9c4fb7743ef" class="commentary"/>107A</ins></num><heading><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">International trade obligations</ins></heading><subsection eId="section-107A-1"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection><subsection eId="section-107A-2"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(2)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The Payment Systems Regulator must give written notice to the Treasury of the proposed action before proceeding to take it.</ins></p></content></subsection><subsection eId="section-107A-3"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(3)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (2) applies only if a duty to consult applies in respect of the taking of the relevant action.</ins></p></content></subsection><subsection eId="section-107A-4"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(4)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection </ins><ref href="#"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></ref><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"> the Payment Systems Regulator proposes to take a “relevant action” if it—</ins></p></intro><level class="para1" eId="section-107A-4-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to impose a generally applicable requirement, or</ins></p></content></level><level class="para1" eId="section-107A-4-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to make changes to its general policies and practices.</ins></p></content></level></subsection><subsection eId="section-107A-5"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(5)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection (3) a duty to consult applies in respect of a relevant action if—</ins></p></intro><level class="para1" eId="section-107A-5-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or</ins></p></content></level><level class="para1" eId="section-107A-5-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies.</ins></p></content></level></subsection><subsection eId="section-107A-6"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(6)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The requirement imposed by subsection (2) must be carried out before the duty to consult in respect of the relevant action is carried out.</ins></p></content></subsection><subsection eId="section-107A-7"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(7)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (8) applies in a case where a notice under subsection (2) is not given because of subsection (3).</ins></p></content></subsection><subsection eId="section-107A-8"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(8)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection><subsection eId="section-107A-9"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(9)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">In this section “</ins><term refersTo="#term-international-trade-obligation"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">international trade obligation</ins></term><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">” means an obligation of the United Kingdom that relates to financial services or markets under—</ins></p></intro><level class="para1" eId="section-107A-9-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">a free trade agreement, as defined by section 5(1) of the Trade Act 2021, or</ins></p></content></level><level class="para1" eId="section-107A-9-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.</ins></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-103"><num>103</num><heading>Regulator's general duty to consult</heading><subsection eId="section-103-1"><num>(1)</num><intro><p>The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—</p></intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content><p>the extent to which its general policies and practices are consistent with its general duties under section 49, and</p></content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content><p>how its payment systems objectives may best be achieved.</p></content></level></subsection><subsection eId="section-103-2"><num>(2)</num><intro><p>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” for the purposes of this section—</p></intro><level class="para1" eId="section-103-2-a"><num>(a)</num><content><p>participants in regulated payment systems, and</p></content></level><level class="para1" eId="section-103-2-b"><num>(b)</num><content><p>those who use, or are likely to use, services provided by regulated payment systems.</p></content></level></subsection><subsection eId="section-103-3"><num>(3)</num><content><p>Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.</p></content></subsection><subsection eId="section-103-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-103-5"><num>(5)</num><content><p>The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).</p></content></subsection><subsection eId="section-103-5A"><num><ins class="first" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6"><noteRef uk:name="commentary" href="#key-e3bf7f20a32230f5fac2f1698f44d2c6" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></subsection><subsection eId="section-103-5B"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5B)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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.</ins></p></content></subsection><subsection eId="section-103-5C"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5C)</ins></num><intro><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">Regulations under subsection (5B) may make provision in respect of a panel—</ins></p></intro><level class="para1" eId="section-103-5C-a"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(a)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">generally, or</ins></p></content></level><level class="para1" eId="section-103-5C-b"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></level></subsection><subsection eId="section-103-6"><num>(6)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-103-6-a"><num>(a)</num><content><p>consider representations that are made to it in accordance with arrangements made under this section, and</p></content></level><level class="para1" eId="section-103-6-b"><num>(b)</num><content><p>from time to time publish, in such manner as it thinks fit, responses to the representations.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-1"><num>(1)</num><intro><p>The Payment Systems Regulator must make and maintain effective arrangements for consulting relevant persons on—</p></intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content><p>the extent to which its general policies and practices are consistent with its general duties under section 49, and</p></content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content><p>how its payment systems objectives may best be achieved.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-1-a"><num>(a)</num><content><p>the extent to which its general policies and practices are consistent with its general duties under section 49, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-1-b"><num>(b)</num><content><p>how its payment systems objectives may best be achieved.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-2"><num>(2)</num><intro><p>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” for the purposes of this section—</p></intro><level class="para1" eId="section-103-2-a"><num>(a)</num><content><p>participants in regulated payment systems, and</p></content></level><level class="para1" eId="section-103-2-b"><num>(b)</num><content><p>those who use, or are likely to use, services provided by regulated payment systems.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-2-a"><num>(a)</num><content><p>participants in regulated payment systems, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-2-b"><num>(b)</num><content><p>those who use, or are likely to use, services provided by regulated payment systems.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-3"><num>(3)</num><content><p>Arrangements under this section must include the establishment and maintenance of one or more panels of persons to represent the interests of relevant persons.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-5"><num>(5)</num><content><p>The Treasury's approval is required for the appointment or dismissal of the chair of a panel established under subsection (3).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-6"><num>(6)</num><intro><p>The Payment Systems Regulator must—</p></intro><level class="para1" eId="section-103-6-a"><num>(a)</num><content><p>consider representations that are made to it in accordance with arrangements made under this section, and</p></content></level><level class="para1" eId="section-103-6-b"><num>(b)</num><content><p>from time to time publish, in such manner as it thinks fit, responses to the representations.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-6-a"><num>(a)</num><content><p>consider representations that are made to it in accordance with arrangements made under this section, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-6-b"><num>(b)</num><content><p>from time to time publish, in such manner as it thinks fit, responses to the representations.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-103-5A"><num><ins class="first" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6"><noteRef uk:name="commentary" href="#key-e3bf7f20a32230f5fac2f1698f44d2c6" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-103-5B"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5B)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-103-5C"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(5C)</ins></num><intro><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">Regulations under subsection (5B) may make provision in respect of a panel—</ins></p></intro><level class="para1" eId="section-103-5C-a"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(a)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">generally, or</ins></p></content></level><level class="para1" eId="section-103-5C-b"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-103-5C-a"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(a)</ins></num><content><p><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">generally, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-103-5C-b"><num><ins ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e3bf7f20a32230f5fac2f1698f44d2c6-1695297951813" ukl:CommentaryRef="key-e3bf7f20a32230f5fac2f1698f44d2c6">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).</ins></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-102B"><num><ins class="first" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d"><noteRef uk:name="commentary" href="#key-516322097f0876cec59b72e8e7eb670d" class="commentary"/>102B</ins></num><heading><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Matters to consider when imposing generally applicable requirements</ins></heading><subsection eId="section-102B-1"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(1)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">This section applies where the Payment Systems Regulator proposes to impose a generally applicable requirement (as defined by section 104(1)).</ins></p></content></subsection><subsection eId="section-102B-2"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(2)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">The Regulator must have regard to any specified matters that are relevant to the imposition of the requirement in question.</ins></p></content></subsection><subsection eId="section-102B-3"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(3)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">“</ins><term refersTo="#term-specified"><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Specified</ins></term><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">” means specified in regulations made by the Treasury for the purposes of this section.</ins></p></content></subsection><subsection eId="section-102B-4"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(4)</ins></num><intro><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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—</ins></p></intro><level class="para1" eId="section-102B-4-a"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(a)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the power under which the function is carried out;</ins></p></content></level><level class="para1" eId="section-102B-4-b"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(b)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the persons to whom the carrying out of the function apply;</ins></p></content></level><level class="para1" eId="section-102B-4-c"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(c)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the activities or subject-matter to which the function relates.</ins></p></content></level></subsection><subsection eId="section-102B-5"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102B-1"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(1)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">This section applies where the Payment Systems Regulator proposes to impose a generally applicable requirement (as defined by section 104(1)).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102B-2"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(2)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">The Regulator must have regard to any specified matters that are relevant to the imposition of the requirement in question.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102B-3"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(3)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">“</ins><term refersTo="#term-specified"><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">Specified</ins></term><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">” means specified in regulations made by the Treasury for the purposes of this section.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102B-4"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(4)</ins></num><intro><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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—</ins></p></intro><level class="para1" eId="section-102B-4-a"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(a)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the power under which the function is carried out;</ins></p></content></level><level class="para1" eId="section-102B-4-b"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(b)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the persons to whom the carrying out of the function apply;</ins></p></content></level><level class="para1" eId="section-102B-4-c"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(c)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the activities or subject-matter to which the function relates.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102B-4-a"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(a)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the power under which the function is carried out;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102B-4-b"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(b)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the persons to whom the carrying out of the function apply;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102B-4-c"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(c)</ins></num><content><p><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">the activities or subject-matter to which the function relates.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102B-5"><num><ins ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-516322097f0876cec59b72e8e7eb670d-1695294179355" ukl:CommentaryRef="key-516322097f0876cec59b72e8e7eb670d">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-104"><num>104</num><heading>Consultation in relation to generally applicable requirements</heading><subsection eId="section-104-1"><num>(1)</num><intro><p>In this <ins class="substitution first last" ukl:ChangeId="key-aa5a86e0cfa2d91b7c2190860abee606-1695298093734" ukl:CommentaryRef="key-aa5a86e0cfa2d91b7c2190860abee606"><noteRef uk:name="commentary" href="#key-aa5a86e0cfa2d91b7c2190860abee606" class="commentary"/>Part</ins> references to imposing a generally applicable requirement are to—</p></intro><level class="para1" eId="section-104-1-a"><num>(a)</num><content><p>giving a general direction under section 54, or</p></content></level><level class="para1" eId="section-104-1-b"><num>(b)</num><content><p>imposing a generally-imposed requirement under section 55,</p></content></level><wrapUp><p>and references to the requirement are to be read accordingly.</p></wrapUp></subsection><subsection eId="section-104-2"><num>(2)</num><intro><p>Before imposing a generally applicable requirement, the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-104-2-a"><num>(a)</num><content><p>consult the Bank of England, the FCA and the PRA, and</p></content></level><level class="para1" eId="section-104-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-104-3"><num>(3)</num><intro><p>The draft must be accompanied by—</p></intro><level class="para1" eId="section-104-3-a"><num>(a)</num><content><p>a cost benefit analysis,</p></content></level><level class="para1" eId="section-104-3-b"><num>(b)</num><content><p>an explanation of the purpose of the proposed requirement,</p></content></level><level class="para1" eId="section-104-3-ba"><num><ins class="first" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63"><noteRef uk:name="commentary" href="#key-d5a5267ce5a0e78b546feb61715a6f63" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63">an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the proposed requirement,</ins></p></content></level><level class="para1" eId="section-104-3-c"><num>(c)</num><content><p>an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and</p></content></level><level class="para1" eId="section-104-3-d"><num>(d)</num><content><p>notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.</p></content></level></subsection><subsection eId="section-104-4"><num>(4)</num><content><p>Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).</p></content></subsection><subsection eId="section-104-5"><num>(5)</num><intro><p>If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="section-104-5-a"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3)(d), and</p></content></level><level class="para1" eId="section-104-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subsection><subsection eId="section-104-5A"><num><ins class="first" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab"><noteRef uk:name="commentary" href="#key-310457b8f9a986625320a8dded3872ab" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection><subsection eId="section-104-5B"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5B)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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).</ins></p></content></subsection><subsection eId="section-104-5C"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5C)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">In this section “</ins><term refersTo="#term-data-protection-legislation"><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">data protection legislation</ins></term><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).</ins></p></content></subsection><subsection eId="section-104-5D"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5D)</ins></num><content><p><ins class="last" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection><subsection eId="section-104-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-104-7"><num>(7)</num><intro><p>For the purposes of this section a “cost benefit analysis” is—</p></intro><level class="para1" eId="section-104-7-a"><num>(a)</num><intro><p>an analysis of the costs together with an analysis of the benefits that will arise—</p></intro><level class="para2" eId="section-104-7-a-i"><num>(i)</num><content><p>if the proposed requirement is imposed, or</p></content></level><level class="para2" eId="section-104-7-a-ii"><num>(ii)</num><content><p>if subsection (6) applies, from the requirement imposed, and</p></content></level></level><level class="para1" eId="section-104-7-b"><num>(b)</num><content><p>subject to subsection (8), an estimate of those costs and of those benefits.</p></content></level></subsection><subsection eId="section-104-8"><num>(8)</num><intro><p>If, in the opinion of the Payment Systems Regulator—</p></intro><level class="para1" eId="section-104-8-a"><num>(a)</num><content><p>the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or</p></content></level><level class="para1" eId="section-104-8-b"><num>(b)</num><content><p>it is not reasonably practicable to produce an estimate,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection><subsection eId="section-104-9"><num>(9)</num><content><p>The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).</p></content></subsection><subsection eId="section-104-10"><num>(10)</num><content><p>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.</p></content></subsection><subsection eId="section-104-11"><num>(11)</num><intro><p>Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—</p></intro><level class="para1" eId="section-104-11-a"><num>(a)</num><content><p>there will be no increase in costs, or</p></content></level><level class="para1" eId="section-104-11-b"><num>(b)</num><content><p>there will be an increase in costs but the increase will be of minimal significance.</p></content></level></subsection><subsection eId="section-104-12"><num>(12)</num><intro><p>In subsection (11) the “<term refersTo="#term-appropriate-comparison" eId="term-appropriate-comparison">appropriate comparison</term>” means—</p></intro><level class="para1" eId="section-104-12-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-104-12-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-104-12A"><num><ins class="first" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6"><noteRef uk:name="commentary" href="#key-c8b0a72b17dfefbc8f51bec6ff84b2f6" class="commentary"/>(12A)</ins></num><content><p><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection><subsection eId="section-104-12B"><num><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">(12B)</ins></num><content><p><ins class="last" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-104-1"><num>(1)</num><intro><p>In this <ins class="substitution first last" ukl:ChangeId="key-aa5a86e0cfa2d91b7c2190860abee606-1695298093734" ukl:CommentaryRef="key-aa5a86e0cfa2d91b7c2190860abee606"><noteRef uk:name="commentary" href="#key-aa5a86e0cfa2d91b7c2190860abee606" class="commentary"/>Part</ins> references to imposing a generally applicable requirement are to—</p></intro><level class="para1" eId="section-104-1-a"><num>(a)</num><content><p>giving a general direction under section 54, or</p></content></level><level class="para1" eId="section-104-1-b"><num>(b)</num><content><p>imposing a generally-imposed requirement under section 55,</p></content></level><wrapUp><p>and references to the requirement are to be read accordingly.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-1-a"><num>(a)</num><content><p>giving a general direction under section 54, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-1-b"><num>(b)</num><content><p>imposing a generally-imposed requirement under section 55,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-2"><num>(2)</num><intro><p>Before imposing a generally applicable requirement, the Payment Systems Regulator must—</p></intro><level class="para1" eId="section-104-2-a"><num>(a)</num><content><p>consult the Bank of England, the FCA and the PRA, and</p></content></level><level class="para1" eId="section-104-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-2-a"><num>(a)</num><content><p>consult the Bank of England, the FCA and the PRA, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-2-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-104-3"><num>(3)</num><intro><p>The draft must be accompanied by—</p></intro><level class="para1" eId="section-104-3-a"><num>(a)</num><content><p>a cost benefit analysis,</p></content></level><level class="para1" eId="section-104-3-b"><num>(b)</num><content><p>an explanation of the purpose of the proposed requirement,</p></content></level><level class="para1" eId="section-104-3-ba"><num><ins class="first" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63"><noteRef uk:name="commentary" href="#key-d5a5267ce5a0e78b546feb61715a6f63" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63">an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the proposed requirement,</ins></p></content></level><level class="para1" eId="section-104-3-c"><num>(c)</num><content><p>an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and</p></content></level><level class="para1" eId="section-104-3-d"><num>(d)</num><content><p>notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-3-a"><num>(a)</num><content><p>a cost benefit analysis,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-3-b"><num>(b)</num><content><p>an explanation of the purpose of the proposed requirement,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-3-c"><num>(c)</num><content><p>an explanation of the Payment Systems Regulator's reasons for believing that imposing the requirement is compatible with its duties under section 49, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-104-3-ba"><num><ins class="first" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63"><noteRef uk:name="commentary" href="#key-d5a5267ce5a0e78b546feb61715a6f63" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d5a5267ce5a0e78b546feb61715a6f63-1695298113908" ukl:CommentaryRef="key-d5a5267ce5a0e78b546feb61715a6f63">an explanation of the ways in which having regard to specified matters under section 102B(2) has affected the proposed requirement,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-3-d"><num>(d)</num><content><p>notice that representations about the proposed requirement may be made to the Payment Systems Regulator within a specified time.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-4"><num>(4)</num><content><p>Before imposing the proposed requirement the Payment Systems Regulator must have regard to any representations made to it in accordance with subsection (3)(d).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-5"><num>(5)</num><intro><p>If the Payment Systems Regulator proposes to impose the requirement, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="section-104-5-a"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3)(d), and</p></content></level><level class="para1" eId="section-104-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-5-a"><num>(a)</num><content><p>the representations made to it in accordance with subsection (3)(d), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-5-b"><num>(b)</num><content><p>its response to them.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-104-5A"><num><ins class="first" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab"><noteRef uk:name="commentary" href="#key-310457b8f9a986625320a8dded3872ab" class="commentary"/>(5A)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-7"><num>(7)</num><intro><p>For the purposes of this section a “cost benefit analysis” is—</p></intro><level class="para1" eId="section-104-7-a"><num>(a)</num><intro><p>an analysis of the costs together with an analysis of the benefits that will arise—</p></intro><level class="para2" eId="section-104-7-a-i"><num>(i)</num><content><p>if the proposed requirement is imposed, or</p></content></level><level class="para2" eId="section-104-7-a-ii"><num>(ii)</num><content><p>if subsection (6) applies, from the requirement imposed, and</p></content></level></level><level class="para1" eId="section-104-7-b"><num>(b)</num><content><p>subject to subsection (8), an estimate of those costs and of those benefits.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-7-a"><num>(a)</num><intro><p>an analysis of the costs together with an analysis of the benefits that will arise—</p></intro><level class="para2" eId="section-104-7-a-i"><num>(i)</num><content><p>if the proposed requirement is imposed, or</p></content></level><level class="para2" eId="section-104-7-a-ii"><num>(ii)</num><content><p>if subsection (6) applies, from the requirement imposed, and</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-7-a-i"><num>(i)</num><content><p>if the proposed requirement is imposed, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-7-a-ii"><num>(ii)</num><content><p>if subsection (6) applies, from the requirement imposed, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-7-b"><num>(b)</num><content><p>subject to subsection (8), an estimate of those costs and of those benefits.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104-5B"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5B)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-8"><num>(8)</num><intro><p>If, in the opinion of the Payment Systems Regulator—</p></intro><level class="para1" eId="section-104-8-a"><num>(a)</num><content><p>the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or</p></content></level><level class="para1" eId="section-104-8-b"><num>(b)</num><content><p>it is not reasonably practicable to produce an estimate,</p></content></level><wrapUp><p>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.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-8-a"><num>(a)</num><content><p>the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-8-b"><num>(b)</num><content><p>it is not reasonably practicable to produce an estimate,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104-5C"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5C)</ins></num><content><p><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">In this section “</ins><term refersTo="#term-data-protection-legislation"><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">data protection legislation</ins></term><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-9"><num>(9)</num><content><p>The Payment Systems Regulator may charge a reasonable fee for providing a person with a copy of a draft published under subsection (2)(b).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104-5D"><num><ins ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">(5D)</ins></num><content><p><ins class="last" ukl:ChangeId="key-310457b8f9a986625320a8dded3872ab-1695298028756" ukl:CommentaryRef="key-310457b8f9a986625320a8dded3872ab">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-10"><num>(10)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-11"><num>(11)</num><intro><p>Subsections (3)(a) and (6) do not apply if the Payment Systems Regulator considers that, making the appropriate comparison—</p></intro><level class="para1" eId="section-104-11-a"><num>(a)</num><content><p>there will be no increase in costs, or</p></content></level><level class="para1" eId="section-104-11-b"><num>(b)</num><content><p>there will be an increase in costs but the increase will be of minimal significance.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-11-a"><num>(a)</num><content><p>there will be no increase in costs, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-11-b"><num>(b)</num><content><p>there will be an increase in costs but the increase will be of minimal significance.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-12"><num>(12)</num><intro><p>In subsection (11) the “<term refersTo="#term-appropriate-comparison" eId="term-appropriate-comparison">appropriate comparison</term>” means—</p></intro><level class="para1" eId="section-104-12-a"><num>(a)</num><content><p>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;</p></content></level><level class="para1" eId="section-104-12-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-12-a"><num>(a)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-12-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-104-12A"><num><ins class="first" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6"><noteRef uk:name="commentary" href="#key-c8b0a72b17dfefbc8f51bec6ff84b2f6" class="commentary"/>(12A)</ins></num><content><p><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104-12B"><num><ins ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">(12B)</ins></num><content><p><ins class="last" ukl:ChangeId="key-c8b0a72b17dfefbc8f51bec6ff84b2f6-1695298058357" ukl:CommentaryRef="key-c8b0a72b17dfefbc8f51bec6ff84b2f6">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-105"><num>105</num><heading>Independent inquiries</heading><subsection eId="section-105-1"><num>(1)</num><content><p>Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.</p></content></subsection><subsection eId="section-105-2"><num>(2)</num><content><p><mod>In subsection (1), for “two” substitute <quotedText>“
three
”</quotedText>.</mod></p></content></subsection><subsection eId="section-105-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>The third case is where it appears to the Treasury that—</p></intro><level class="para1"><num>(a)</num><content><p>events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-105-4"><num>(4)</num><content><p><mod>In section 83(1) (interpretation), after the definition of “regulated activity” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“<term refersTo="#term-regulated-payment-system">regulated payment system</term>” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-1"><num>(1)</num><content><p>Section 68 of the Financial Services Act 2012 (cases in which Treasury may arrange independent inquiries) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-2"><num>(2)</num><content><p><mod>In subsection (1), for “two” substitute <quotedText>“
three
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-105-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro><p>The third case is where it appears to the Treasury that—</p></intro><level class="para1"><num>(a)</num><content><p>events have occurred in relation to a regulated payment system which caused or risked causing significant damage to business or other interests throughout the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-105-4"><num>(4)</num><content><p><mod>In section 83(1) (interpretation), after the definition of “regulated activity” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>“<term refersTo="#term-regulated-payment-system">regulated payment system</term>” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act);</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106"><num>106</num><heading>Investigations into regulatory failure</heading><subsection eId="section-106-1"><num>(1)</num><content><p>Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.</p></content></subsection><subsection eId="section-106-2"><num>(2)</num><content><p><mod>After section 76 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>76A</num><heading>Duty of Payment Systems Regulator to investigate and report on possible regulatory failure</heading><subsection><num>(1)</num><intro><p>Subsection (3) applies where it appears to the Payment Systems Regulator that—</p></intro><level class="para1"><num>(a)</num><intro><p>events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—</p></intro><level class="para2"><num>(i)</num><content><p>participants in the payment system, or</p></content></level><level class="para2"><num>(ii)</num><content><p>those who use, or are likely to use, the services provided by the payment system, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.</p></content></subsection><subsection><num>(3)</num><content><p>The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-participant">participant</term>”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-106-5"><num>(3)</num><intro><p>In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—</p></intro><level class="para1" eId="section-106-5-a"><num>(a)</num><content><p><mod>in subsection (1)(a), for “either regulator” substitute <quotedText>“
a regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-106-5-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-5-c"><num>(c)</num><content><p><mod>the heading of that section becomes <quotedText>“
<b>Power of Treasury to require regulator to undertake investigation</b>
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-106-6"><num>(4)</num><content><p><mod>In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-7"><num>(5)</num><content><p><mod>In section 79 (conclusion of investigation), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-8"><num>(6)</num><content><p><mod>In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection><subsection eId="section-106-9"><num>(7)</num><content><p><mod>In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>section 76A(4);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-106-10"><num>(8)</num><intro><p>In section 83(1) (interpretation)—</p></intro><level class="para1" eId="section-106-10-a"><num>(a)</num><content><p><mod>after the definition of “listed securities” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;</p></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-10-b"><num>(b)</num><content><p><mod>in the definition of “regulator”, for “or the PRA” substitute <quotedText>“
, the PRA or the Payment Systems Regulator
”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-1"><num>(1)</num><content><p>Part 5 of the Financial Services Act 2012 (inquiries and investigations) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106-2"><num>(2)</num><content><p><mod>After section 76 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>76A</num><heading>Duty of Payment Systems Regulator to investigate and report on possible regulatory failure</heading><subsection><num>(1)</num><intro><p>Subsection (3) applies where it appears to the Payment Systems Regulator that—</p></intro><level class="para1"><num>(a)</num><intro><p>events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of—</p></intro><level class="para2"><num>(i)</num><content><p>participants in the payment system, or</p></content></level><level class="para2"><num>(ii)</num><content><p>those who use, or are likely to use, the services provided by the payment system, and</p></content></level></level><level class="para1"><num>(b)</num><intro><p>those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in—</p></intro><level class="para2"><num>(i)</num><content><p>the system established by Part 5 of the Financial Services (Banking Reform) Act 2013 for the regulation of payment systems, or</p></content></level><level class="para2"><num>(ii)</num><content><p>the operation of that system.</p></content></level></level></subsection><subsection><num>(2)</num><content><p>Subsection (3) also applies where the Treasury direct the Payment Systems Regulator that it appears to the Treasury that the conditions in subsection (1) are met in relation to specified events.</p></content></subsection><subsection><num>(3)</num><content><p>The Payment Systems Regulator must carry out an investigation into the events and the circumstances surrounding them and report to the Treasury on the result of the investigation.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (3) does not apply by virtue of subsection (1) if the Treasury direct the Payment Systems Regulator that it is not required to carry out an investigation into the events concerned.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-participant">participant</term>”, in relation to a regulated payment system, has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act).</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106-3"><num>(3)</num><intro><p>In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—</p></intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “either regulator” substitute “a regulator”;</p></content></level><level class="para1" eId="section-106-3-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-3-c"><num>(c)</num><content><p>the heading of that section becomes “<b>Power of Treasury to require regulator to undertake investigation</b>”.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-3-a"><num>(a)</num><content><p>in subsection (1)(a), for “either regulator” substitute “a regulator”;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-106-3-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-3-c"><num>(c)</num><content><p>the heading of that section becomes “<b>Power of Treasury to require regulator to undertake investigation</b>”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-4"><num>(4)</num><content><p>In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute “, 74 or 76A”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106-5"><num>(3)</num><intro><p>In section 77 (power of Treasury to require FCA or PRA to undertake investigation)—</p></intro><level class="para1" eId="section-106-5-a"><num>(a)</num><content><p><mod>in subsection (1)(a), for “either regulator” substitute <quotedText>“
a regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="section-106-5-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-5-c"><num>(c)</num><content><p><mod>the heading of that section becomes <quotedText>“
<b>Power of Treasury to require regulator to undertake investigation</b>
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-5-a"><num>(a)</num><content><p><mod>in subsection (1)(a), for “either regulator” substitute <quotedText>“
a regulator
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-106-5-b"><num>(b)</num><content><p><mod>in subsection (3), omit the “or” at the end of paragraph (b) and after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a regulated payment system.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-5-c"><num>(c)</num><content><p><mod>the heading of that section becomes <quotedText>“
<b>Power of Treasury to require regulator to undertake investigation</b>
”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-6"><num>(4)</num><content><p><mod>In section 78 (conduct of investigation), in subsection (1), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-7"><num>(5)</num><content><p><mod>In section 79 (conclusion of investigation), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106-9"><num>(7)</num><content><p><mod>In section 81 (publication of directions), in subsection (1), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>section 76A(4);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-8"><num>(6)</num><content><p><mod>In section 80 (statements of policy), in subsection (1)(a), for “or 74” substitute <quotedText>“
, 74 or 76A
”</quotedText>.</mod></p></content></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-106-8-a"><num>(a)</num><content><p><mod>after the definition of “listed securities” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content><p>“the Payment Systems Regulator” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;</p></content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-8-b"><num>(b)</num><content><p>in the definition of “regulator”, for “or the PRA” substitute “, the PRA or the Payment Systems Regulator”.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-106-10"><num>(8)</num><intro><p>In section 83(1) (interpretation)—</p></intro><level class="para1" eId="section-106-10-a"><num>(a)</num><content><p><mod>after the definition of “listed securities” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;</p></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-106-10-b"><num>(b)</num><content><p><mod>in the definition of “regulator”, for “or the PRA” substitute <quotedText>“
, the PRA or the Payment Systems Regulator
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-106-10-a"><num>(a)</num><content><p><mod>after the definition of “listed securities” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-the-payment-systems-regulator">the Payment Systems Regulator</term>” means the body established under section 40 of the Financial Services (Banking Reform) Act 2013;</p></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-10-b"><num>(b)</num><content><p><mod>in the definition of “regulator”, for “or the PRA” substitute <quotedText>“
, the PRA or the Payment Systems Regulator
”</quotedText>.</mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-104A"><num><ins class="first" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268"><noteRef uk:name="commentary" href="#key-4f6d1291d9ec5d3cfde30af3d579d268" class="commentary"/>104A</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Requirements in connection with public consultations</ins></heading><subsection eId="section-104A-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Payment Systems Regulator issues a public consultation.</ins></p></content></subsection><subsection eId="section-104A-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104A-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104A-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection><subsection eId="section-104A-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section a “statutory panel”—</ins></p></intro><level class="para1" eId="section-104A-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the Payment Systems Regulator, means a panel established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104A-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the FCA, has the meaning given by section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104A-5-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the PRA, has the meaning given by section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104A-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Payment Systems Regulator issues a public consultation.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104A-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104A-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104A-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104A-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section a “statutory panel”—</ins></p></intro><level class="para1" eId="section-104A-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the Payment Systems Regulator, means a panel established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104A-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the FCA, has the meaning given by section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104A-5-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the PRA, has the meaning given by section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104A-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the Payment Systems Regulator, means a panel established under section 103(3),</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104A-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the FCA, has the meaning given by section 1RA(8) of FSMA 2000, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104A-5-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in relation to the PRA, has the meaning given by section 2NA(8) of FSMA 2000.</ins></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107"><num>107</num><heading>Competition scrutiny</heading><subsection eId="section-107-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-107-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><intro><p>the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—</p></intro><level class="para2" eId="section-107-2-b-i"><num>(i)</num><content><p>any general directions given under section 54;</p></content></level><level class="para2" eId="section-107-2-b-ii"><num>(ii)</num><content><p>any generally-imposed requirements under section 55;</p></content></level><level class="para2" eId="section-107-2-b-iii"><num>(iii)</num><content><p>any guidance given under section 96.</p></content></level></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="section-107-2-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-107-2-b"><num>(b)</num><intro><p>the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—</p></intro><level class="para2" eId="section-107-2-b-i"><num>(i)</num><content><p>any general directions given under section 54;</p></content></level><level class="para2" eId="section-107-2-b-ii"><num>(ii)</num><content><p>any generally-imposed requirements under section 55;</p></content></level><level class="para2" eId="section-107-2-b-iii"><num>(iii)</num><content><p>any guidance given under section 96.</p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-107-2-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-107-2-b"><num>(b)</num><intro><p>the reference to the Payment Systems Regulator's regulating provisions in relation to payment systems is a reference to the following—</p></intro><level class="para2" eId="section-107-2-b-i"><num>(i)</num><content><p>any general directions given under section 54;</p></content></level><level class="para2" eId="section-107-2-b-ii"><num>(ii)</num><content><p>any generally-imposed requirements under section 55;</p></content></level><level class="para2" eId="section-107-2-b-iii"><num>(iii)</num><content><p>any guidance given under section 96.</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-107-2-b-i"><num>(i)</num><content><p>any general directions given under section 54;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-107-2-b-ii"><num>(ii)</num><content><p>any generally-imposed requirements under section 55;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-107-2-b-iii"><num>(iii)</num><content><p>any guidance given under section 96.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104B"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104B</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Duty of Regulator to review generally applicable requirements</ins></heading><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must keep under review generally any generally applicable requirements.</ins></p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104C"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104C</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy relating to review of requirements</ins></heading><subsection eId="section-104C-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must prepare and publish a statement of its policy with respect to its review of requirements under section 104B.</ins></p></content></subsection><subsection eId="section-104C-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104C-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under section 104B, and</ins></p></content></level><level class="para1" eId="section-104C-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the arrangements to ensure that those representations are considered.</ins></p></content></level></subsection><subsection eId="section-104C-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section “</ins><term refersTo="#term-relevant-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">relevant panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” means—</ins></p></intro><level class="para1" eId="section-104C-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the Payment Systems Regulator established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104C-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104C-3-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the PRA mentioned in section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection><subsection eId="section-104C-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104C-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104C-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must prepare and publish a statement of its policy with respect to its review of requirements under section 104B.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104C-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104C-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under section 104B, and</ins></p></content></level><level class="para1" eId="section-104C-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the arrangements to ensure that those representations are considered.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104C-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">how representations (including by a relevant panel) can be made to the Regulator with respect to its review of requirements under section 104B, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104C-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the arrangements to ensure that those representations are considered.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104C-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section “</ins><term refersTo="#term-relevant-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">relevant panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” means—</ins></p></intro><level class="para1" eId="section-104C-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the Payment Systems Regulator established under section 103(3),</ins></p></content></level><level class="para1" eId="section-104C-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and</ins></p></content></level><level class="para1" eId="section-104C-3-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the PRA mentioned in section 2NA(8) of FSMA 2000.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104C-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the Payment Systems Regulator established under section 103(3),</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104C-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the FCA mentioned in section 1RA(8) of FSMA 2000, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104C-3-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">a panel of the PRA mentioned in section 2NA(8) of FSMA 2000.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104C-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104C-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104D</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Requirement to review specified requirements</ins></heading><subsection eId="section-104D-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104D-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the requirement has been in force for at least 12 months,</ins></p></content></level><level class="para1" eId="section-104D-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the Treasury consider that it is in the public interest that the requirement is reviewed, and</ins></p></content></level><level class="para1" eId="section-104D-1-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">it does not appear to the Treasury that—</ins></p></intro><level class="para2" eId="section-104D-1-c-i"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(i)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the regulator is carrying out, or proposes to carry out, a review of that requirement, or</ins></p></content></level><level class="para2" eId="section-104D-1-c-ii"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(ii)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.</ins></p></content></level></level></subsection><subsection eId="section-104D-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Treasury must consult the Payment Systems Regulator before giving a direction under subsection (1).</ins></p></content></subsection><subsection eId="section-104D-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104D-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under subsection (1) may—</ins></p></intro><level class="para1" eId="section-104D-4-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify the period within which a review must be carried out;</ins></p></content></level><level class="para1" eId="section-104D-4-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">determine the scope and conduct of a review;</ins></p></content></level><level class="para1" eId="section-104D-4-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">require the provision of interim reports during the carrying out of a review.</ins></p></content></level></subsection><subsection eId="section-104D-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Provision made in a direction under subsection (4)(b) may include a requirement—</ins></p></intro><level class="para1" eId="section-104D-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator;</ins></p></content></level><level class="para1" eId="section-104D-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for any such appointment to be made only with the approval of the Treasury.</ins></p></content></level></subsection><subsection eId="section-104D-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after giving the direction the Treasury must—</ins></p></intro><level class="para1" eId="section-104D-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the direction, and</ins></p></content></level><level class="para1" eId="section-104D-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subsection><subsection eId="section-104D-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Subsection (6) does not apply where the Treasury consider that publication of the direction would be against the public interest.</ins></p></content></subsection><subsection eId="section-104D-8"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(8)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under this section may be varied or revoked by the giving of a further direction.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104D-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the requirement has been in force for at least 12 months,</ins></p></content></level><level class="para1" eId="section-104D-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the Treasury consider that it is in the public interest that the requirement is reviewed, and</ins></p></content></level><level class="para1" eId="section-104D-1-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">it does not appear to the Treasury that—</ins></p></intro><level class="para2" eId="section-104D-1-c-i"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(i)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the regulator is carrying out, or proposes to carry out, a review of that requirement, or</ins></p></content></level><level class="para2" eId="section-104D-1-c-ii"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(ii)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.</ins></p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the requirement has been in force for at least 12 months,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the Treasury consider that it is in the public interest that the requirement is reviewed, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-1-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">it does not appear to the Treasury that—</ins></p></intro><level class="para2" eId="section-104D-1-c-i"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(i)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the regulator is carrying out, or proposes to carry out, a review of that requirement, or</ins></p></content></level><level class="para2" eId="section-104D-1-c-ii"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(ii)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.</ins></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-104D-1-c-i"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(i)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the regulator is carrying out, or proposes to carry out, a review of that requirement, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-104D-1-c-ii"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(ii)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">if the regulator proposes to carry out a review, the proposals are appropriate for the purposes of carrying out an effective review.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Treasury must consult the Payment Systems Regulator before giving a direction under subsection (1).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under subsection (1) may—</ins></p></intro><level class="para1" eId="section-104D-4-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify the period within which a review must be carried out;</ins></p></content></level><level class="para1" eId="section-104D-4-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">determine the scope and conduct of a review;</ins></p></content></level><level class="para1" eId="section-104D-4-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">require the provision of interim reports during the carrying out of a review.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-4-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify the period within which a review must be carried out;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-4-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">determine the scope and conduct of a review;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-4-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">require the provision of interim reports during the carrying out of a review.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Provision made in a direction under subsection (4)(b) may include a requirement—</ins></p></intro><level class="para1" eId="section-104D-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator;</ins></p></content></level><level class="para1" eId="section-104D-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for any such appointment to be made only with the approval of the Treasury.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-5-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for a review to be carried out by a person appointed by the Payment Systems Regulator who is independent of the Regulator;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-5-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">for any such appointment to be made only with the approval of the Treasury.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after giving the direction the Treasury must—</ins></p></intro><level class="para1" eId="section-104D-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the direction, and</ins></p></content></level><level class="para1" eId="section-104D-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the direction, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104D-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the direction in such manner as the Treasury think fit.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Subsection (6) does not apply where the Treasury consider that publication of the direction would be against the public interest.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104D-8"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(8)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">A direction under this section may be varied or revoked by the giving of a further direction.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104E"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104E</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Report on certain reviews</ins></heading><subsection eId="section-104E-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Treasury have given a direction to the Payment Systems Regulator under section 104D(1) to carry out a review.</ins></p></content></subsection><subsection eId="section-104E-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104E-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether the requirements under review advance one or more of the payment systems objectives;</ins></p></content></level><level class="para1" eId="section-104E-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether and to what extent the requirements are functioning effectively and achieving their intended purpose;</ins></p></content></level><level class="para1" eId="section-104E-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any amendments need to be made to the requirements and, if so, what those amendments should be;</ins></p></content></level><level class="para1" eId="section-104E-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any requirements should be withdrawn (with or without replacement);</ins></p></content></level><level class="para1" eId="section-104E-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any other action should be taken and, if so, what that action should be.</ins></p></content></level></subsection><subsection eId="section-104E-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after receiving the report the Treasury must—</ins></p></intro><level class="para1" eId="section-104E-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the report, and</ins></p></content></level><level class="para1" eId="section-104E-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the report in such manner as the Treasury think fit.</ins></p></content></level></subsection><subsection eId="section-104E-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104E-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">This section applies where the Treasury have given a direction to the Payment Systems Regulator under section 104D(1) to carry out a review.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104E-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104E-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether the requirements under review advance one or more of the payment systems objectives;</ins></p></content></level><level class="para1" eId="section-104E-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether and to what extent the requirements are functioning effectively and achieving their intended purpose;</ins></p></content></level><level class="para1" eId="section-104E-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any amendments need to be made to the requirements and, if so, what those amendments should be;</ins></p></content></level><level class="para1" eId="section-104E-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any requirements should be withdrawn (with or without replacement);</ins></p></content></level><level class="para1" eId="section-104E-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any other action should be taken and, if so, what that action should be.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether the requirements under review advance one or more of the payment systems objectives;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether and to what extent the requirements are functioning effectively and achieving their intended purpose;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any amendments need to be made to the requirements and, if so, what those amendments should be;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any requirements should be withdrawn (with or without replacement);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">whether any other action should be taken and, if so, what that action should be.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104E-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">As soon as practicable after receiving the report the Treasury must—</ins></p></intro><level class="para1" eId="section-104E-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the report, and</ins></p></content></level><level class="para1" eId="section-104E-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the report in such manner as the Treasury think fit.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">lay before Parliament a copy of the report, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104E-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">publish the report in such manner as the Treasury think fit.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104E-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104F"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104F</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Power of Treasury to require the imposition of generally applicable requirements</ins></heading><subsection eId="section-104F-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104F-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Regulations under this section may—</ins></p></intro><level class="para1" eId="section-104F-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify matters that the requirement must cover;</ins></p></content></level><level class="para1" eId="section-104F-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify a period within which the requirement must be made.</ins></p></content></level></subsection><subsection eId="section-104F-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">But except so far as permitted by subsection (2), regulations under this section may not require the requirement to be imposed—</ins></p></intro><level class="para1" eId="section-104F-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in a specified form or with specified content, or</ins></p></content></level><level class="para1" eId="section-104F-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">to achieve or advance a specified outcome.</ins></p></content></level></subsection><subsection eId="section-104F-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104F-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104F-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Regulations under this section may—</ins></p></intro><level class="para1" eId="section-104F-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify matters that the requirement must cover;</ins></p></content></level><level class="para1" eId="section-104F-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify a period within which the requirement must be made.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104F-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify matters that the requirement must cover;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104F-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">specify a period within which the requirement must be made.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104F-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">But except so far as permitted by subsection (2), regulations under this section may not require the requirement to be imposed—</ins></p></intro><level class="para1" eId="section-104F-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in a specified form or with specified content, or</ins></p></content></level><level class="para1" eId="section-104F-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">to achieve or advance a specified outcome.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104F-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">in a specified form or with specified content, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104F-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">to achieve or advance a specified outcome.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104F-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104G</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Consultation with the FCA Cost Benefit Analysis Panel</ins></heading><subsection eId="section-104G-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104G-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of a cost benefit analysis under section 104(3)(a) or (6);</ins></p></content></level><level class="para1" eId="section-104G-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of its statement of policy under section 104H.</ins></p></content></level></subsection><subsection eId="section-104G-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104G-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The FCA Cost Benefit Analysis Panel must—</ins></p></intro><level class="para1" eId="section-104G-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3)(a) and (6), and</ins></p></content></level><level class="para1" eId="section-104G-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such review.</ins></p></content></level></subsection><subsection eId="section-104G-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must consider representations that are made to it by the FCA Cost Benefit Analysis Panel.</ins></p></content></subsection><subsection eId="section-104G-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must from time to time publish in such manner as it thinks fit responses to the representations.</ins></p></content></subsection><subsection eId="section-104G-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section references to the “</ins><term refersTo="#term-fca-cost-benefit-analysis-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">FCA Cost Benefit Analysis Panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” are to the panel established under section 138IA of FSMA 2000.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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—</ins></p></intro><level class="para1" eId="section-104G-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of a cost benefit analysis under section 104(3)(a) or (6);</ins></p></content></level><level class="para1" eId="section-104G-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of its statement of policy under section 104H.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104G-1-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of a cost benefit analysis under section 104(3)(a) or (6);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104G-1-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the preparation of its statement of policy under section 104H.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The FCA Cost Benefit Analysis Panel must—</ins></p></intro><level class="para1" eId="section-104G-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3)(a) and (6), and</ins></p></content></level><level class="para1" eId="section-104G-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such review.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104G-3-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">keep under review how the Payment Systems Regulator is performing generally in carrying out its duties under section 104(3)(a) and (6), and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104G-3-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">provide to the Payment Systems Regulator whatever recommendations the Panel thinks appropriate as a result of such review.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must consider representations that are made to it by the FCA Cost Benefit Analysis Panel.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must from time to time publish in such manner as it thinks fit responses to the representations.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104G-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">In this section references to the “</ins><term refersTo="#term-fca-cost-benefit-analysis-panel"><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">FCA Cost Benefit Analysis Panel</ins></term><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">” are to the panel established under section 138IA of FSMA 2000.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104H</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy in relation to cost benefit analyses</ins></heading><subsection eId="section-104H-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection><subsection eId="section-104H-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104H-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the methodology adopted in preparing cost benefit analyses;</ins></p></content></level><level class="para1" eId="section-104H-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies;</ins></p></content></level><level class="para1" eId="section-104H-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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;</ins></p></content></level><level class="para1" eId="section-104H-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) are considered;</ins></p></content></level><level class="para1" eId="section-104H-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></level></subsection><subsection eId="section-104H-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may include whatever other information in relation to cost benefit analyses that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection><subsection eId="section-104H-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection><subsection eId="section-104H-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection><subsection eId="section-104H-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104H-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the methodology adopted in preparing cost benefit analyses;</ins></p></content></level><level class="para1" eId="section-104H-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies;</ins></p></content></level><level class="para1" eId="section-104H-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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;</ins></p></content></level><level class="para1" eId="section-104H-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) are considered;</ins></p></content></level><level class="para1" eId="section-104H-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104H-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the methodology adopted in preparing cost benefit analyses;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104H-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters to which the Payment Systems Regulator has regard in determining whether section 104(8) applies;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104H-2-c"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(c)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104H-2-d"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(d)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 104(3)(d) are considered;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104H-2-e"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(e)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may include whatever other information in relation to cost benefit analyses that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104H-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">104I</ins></num><heading><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Statement of policy on panel appointments</ins></heading><subsection eId="section-104I-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection><subsection eId="section-104I-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104I-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the process adopted for making appointments;</ins></p></content></level><level class="para1" eId="section-104I-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters considered in determining who is appointed.</ins></p></content></level></subsection><subsection eId="section-104I-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may provide whatever other information in relation to the making of appointments that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection><subsection eId="section-104I-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection><subsection eId="section-104I-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection><subsection eId="section-104I-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Before publishing a statement under this section the Payment Systems Regulator must—</ins></p></intro><level class="para1" eId="section-104I-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">consult the Treasury about the proposed statement, and</ins></p></content></level><level class="para1" eId="section-104I-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">have regard to any representations the Treasury make in response to the consultation.</ins></p></content></level></subsection><subsection eId="section-104I-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-1"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(1)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-2"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(2)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement must provide information about—</ins></p></intro><level class="para1" eId="section-104I-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the process adopted for making appointments;</ins></p></content></level><level class="para1" eId="section-104I-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters considered in determining who is appointed.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104I-2-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">the process adopted for making appointments;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104I-2-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">matters considered in determining who is appointed.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-3"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(3)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The statement may provide whatever other information in relation to the making of appointments that the Payment Systems Regulator considers appropriate.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-4"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(4)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator may alter or replace a statement published under this section.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-5"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(5)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">The Payment Systems Regulator must publish a statement as altered or replaced under subsection (4).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-6"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(6)</ins></num><intro><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">Before publishing a statement under this section the Payment Systems Regulator must—</ins></p></intro><level class="para1" eId="section-104I-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">consult the Treasury about the proposed statement, and</ins></p></content></level><level class="para1" eId="section-104I-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">have regard to any representations the Treasury make in response to the consultation.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104I-6-a"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">consult the Treasury about the proposed statement, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-104I-6-b"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(b)</ins></num><content><p><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">have regard to any representations the Treasury make in response to the consultation.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-104I-7"><num><ins ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">(7)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f6d1291d9ec5d3cfde30af3d579d268-1695294088479" ukl:CommentaryRef="key-4f6d1291d9ec5d3cfde30af3d579d268">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.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-107A"><num><ins class="first" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"><noteRef uk:name="commentary" href="#key-0a4fd89b480e5fd27184d9c4fb7743ef" class="commentary"/>107A</ins></num><heading><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">International trade obligations</ins></heading><subsection eId="section-107A-1"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection><subsection eId="section-107A-2"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(2)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The Payment Systems Regulator must give written notice to the Treasury of the proposed action before proceeding to take it.</ins></p></content></subsection><subsection eId="section-107A-3"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(3)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (2) applies only if a duty to consult applies in respect of the taking of the relevant action.</ins></p></content></subsection><subsection eId="section-107A-4"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(4)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection </ins><ref href="#"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></ref><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"> the Payment Systems Regulator proposes to take a “relevant action” if it—</ins></p></intro><level class="para1" eId="section-107A-4-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to impose a generally applicable requirement, or</ins></p></content></level><level class="para1" eId="section-107A-4-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to make changes to its general policies and practices.</ins></p></content></level></subsection><subsection eId="section-107A-5"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(5)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection (3) a duty to consult applies in respect of a relevant action if—</ins></p></intro><level class="para1" eId="section-107A-5-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or</ins></p></content></level><level class="para1" eId="section-107A-5-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies.</ins></p></content></level></subsection><subsection eId="section-107A-6"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(6)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The requirement imposed by subsection (2) must be carried out before the duty to consult in respect of the relevant action is carried out.</ins></p></content></subsection><subsection eId="section-107A-7"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(7)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (8) applies in a case where a notice under subsection (2) is not given because of subsection (3).</ins></p></content></subsection><subsection eId="section-107A-8"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(8)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection><subsection eId="section-107A-9"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(9)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">In this section “</ins><term refersTo="#term-international-trade-obligation"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">international trade obligation</ins></term><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">” means an obligation of the United Kingdom that relates to financial services or markets under—</ins></p></intro><level class="para1" eId="section-107A-9-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">a free trade agreement, as defined by section 5(1) of the Trade Act 2021, or</ins></p></content></level><level class="para1" eId="section-107A-9-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.</ins></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-1"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-2"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(2)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The Payment Systems Regulator must give written notice to the Treasury of the proposed action before proceeding to take it.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-3"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(3)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (2) applies only if a duty to consult applies in respect of the taking of the relevant action.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-4"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(4)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection </ins><ref href="#"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(1)</ins></ref><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef"> the Payment Systems Regulator proposes to take a “relevant action” if it—</ins></p></intro><level class="para1" eId="section-107A-4-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to impose a generally applicable requirement, or</ins></p></content></level><level class="para1" eId="section-107A-4-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to make changes to its general policies and practices.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-107A-4-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to impose a generally applicable requirement, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-107A-4-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">proposes to make changes to its general policies and practices.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-5"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(5)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">For the purposes of subsection (3) a duty to consult applies in respect of a relevant action if—</ins></p></intro><level class="para1" eId="section-107A-5-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or</ins></p></content></level><level class="para1" eId="section-107A-5-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-107A-5-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the duty imposed by section 104 to publish a draft of a proposed requirement applies in respect of the action, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-107A-5-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">any other duty (whether or not imposed by a provision of this Act) to publish the proposal to take the action in question applies.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-6"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(6)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">The requirement imposed by subsection (2) must be carried out before the duty to consult in respect of the relevant action is carried out.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-7"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(7)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">Subsection (8) applies in a case where a notice under subsection (2) is not given because of subsection (3).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-8"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(8)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-107A-9"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(9)</ins></num><intro><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">In this section “</ins><term refersTo="#term-international-trade-obligation"><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">international trade obligation</ins></term><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">” means an obligation of the United Kingdom that relates to financial services or markets under—</ins></p></intro><level class="para1" eId="section-107A-9-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">a free trade agreement, as defined by section 5(1) of the Trade Act 2021, or</ins></p></content></level><level class="para1" eId="section-107A-9-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-107A-9-a"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(a)</ins></num><content><p><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">a free trade agreement, as defined by section 5(1) of the Trade Act 2021, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-107A-9-b"><num><ins ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-0a4fd89b480e5fd27184d9c4fb7743ef-1706701504956" ukl:CommentaryRef="key-0a4fd89b480e5fd27184d9c4fb7743ef">the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.</ins></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-miscellaneous-and-supplemental"><heading><i>Miscellaneous and supplemental</i></heading><section eId="section-108"><num>108</num><heading>Relationship with Part 8 of the Payment Services Regulations <ins class="substitution first last" ukl:ChangeId="key-153db09439e920bbc318f22f4122013f-1521173431383" ukl:CommentaryRef="key-153db09439e920bbc318f22f4122013f"><noteRef uk:name="commentary" href="#key-153db09439e920bbc318f22f4122013f" class="commentary"/>2017</ins></heading><subsection eId="section-108-1"><num>(1)</num><content><p>The Payment Systems Regulator may not exercise any power under <ins class="substitution first last" ukl:ChangeId="key-0615a37a4b7e0fbdf485cebbd384c22f-1498403799720" ukl:CommentaryRef="key-0615a37a4b7e0fbdf485cebbd384c22f"><noteRef uk:name="commentary" href="#key-0615a37a4b7e0fbdf485cebbd384c22f" class="commentary"/>sections 54 to 58</ins> for the purposes of enabling a <ins class="substitution first last" ukl:ChangeId="key-0654575c003a00c83db1bfa326215559-1521173572792" ukl:CommentaryRef="key-0654575c003a00c83db1bfa326215559"><noteRef uk:name="commentary" href="#key-0654575c003a00c83db1bfa326215559" class="commentary"/>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.</ins></p></content></subsection><subsection eId="section-108-2"><num><noteRef href="#key-9e93ea0248cce04e548d494e56c6c12a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(2)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection></section><section eId="section-109"><num>109</num><heading>Exemption from liability in damages for FCA and PRA</heading><subsection eId="section-109-1"><num>(1)</num><content><p><mod>In paragraph 25 of Schedule 1ZA to FSMA 2000 (FCA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-109-2"><num>(2)</num><content><p><mod>In paragraph 33 of Schedule 1ZB to FSMA 2000 (PRA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-109-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-110"><num>110</num><heading>Interpretation of Part</heading><subsection eId="section-110-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” has the meaning given by section 76(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” has the meaning given by section 76(7);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” has the meaning given by section 71;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designation-order" eId="term-designation-order">designation order</term>” has the meaning given by section 43;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 41(2A);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset-exchange-provider"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset exchange provider</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 182(5B) of the Banking Act 2009;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-direct-access" eId="term-direct-access">direct access</term>”, in relation to a payment system, is to be read in accordance with section 42(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-document" eId="term-document">document</term>” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form or in a form from which it can readily be produced in visible and legible form;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>” has the meaning given by section 54(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” has the meaning given by section 96(3);</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e"><noteRef uk:name="commentary" href="#key-e56b28736fdd2a607fb787fcf86bb81e" class="commentary"/>“</ins><term refersTo="#term-generally-applicable-requirement"><ins ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">generally applicable requirement</ins></term><ins class="last" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">” has the meaning given by section 104(1);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>” has the meaning given by section 55(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">infrastructure provider</term>”, in relation to a payment system, has the meaning given by section 42(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a payment system, has the meaning given by section 42(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-participant" eId="term-participant">participant</term>”, in relation to a payment system, has the meaning given by section 42 (and references to participation in a payment system are to be read in accordance with that section);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">payment service provider</term>”, in relation to a payment system, has the meaning given by section 42(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” has the meaning given by section 41;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-62e88238ec0b70822df799d8477bf602" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-1ef995254441eb52226a075fde25cef5-1505812360373" ukl:CommentaryRef="key-1ef995254441eb52226a075fde25cef5"><noteRef uk:name="commentary" href="#key-1ef995254441eb52226a075fde25cef5" class="commentary"/>a</ins> payment system (within the meaning of Part 5 of the Banking Act 2009) specified as a recognised system for the purposes of that Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-payment-system" eId="term-regulated-payment-system">regulated payment system</term>” means a payment system designated as a regulated payment system by a designation order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-uk-financial-system" eId="term-the-uk-financial-system">the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system</term>” has the meaning given by section 1I of FSMA 2000.</p></content></hcontainer></subsection><subsection eId="section-110-2"><num>(2)</num><content><p>References in this Part to the Payment Systems Regulator's payment systems objectives are to be read in accordance with section 49(2).</p></content></subsection><subsection eId="section-110-3"><num>(3)</num><content><p>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.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-108"><num>108</num><heading>Relationship with Part 8 of the Payment Services Regulations <ins class="substitution first last" ukl:ChangeId="key-153db09439e920bbc318f22f4122013f-1521173431383" ukl:CommentaryRef="key-153db09439e920bbc318f22f4122013f"><noteRef uk:name="commentary" href="#key-153db09439e920bbc318f22f4122013f" class="commentary"/>2017</ins></heading><subsection eId="section-108-1"><num>(1)</num><content><p>The Payment Systems Regulator may not exercise any power under <ins class="substitution first last" ukl:ChangeId="key-0615a37a4b7e0fbdf485cebbd384c22f-1498403799720" ukl:CommentaryRef="key-0615a37a4b7e0fbdf485cebbd384c22f"><noteRef uk:name="commentary" href="#key-0615a37a4b7e0fbdf485cebbd384c22f" class="commentary"/>sections 54 to 58</ins> for the purposes of enabling a <ins class="substitution first last" ukl:ChangeId="key-0654575c003a00c83db1bfa326215559-1521173572792" ukl:CommentaryRef="key-0654575c003a00c83db1bfa326215559"><noteRef uk:name="commentary" href="#key-0654575c003a00c83db1bfa326215559" class="commentary"/>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.</ins></p></content></subsection><subsection eId="section-108-2"><num><noteRef href="#key-9e93ea0248cce04e548d494e56c6c12a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(2)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-108-1"><num>(1)</num><content><p>The Payment Systems Regulator may not exercise any power under <ins class="substitution first last" ukl:ChangeId="key-0615a37a4b7e0fbdf485cebbd384c22f-1498403799720" ukl:CommentaryRef="key-0615a37a4b7e0fbdf485cebbd384c22f"><noteRef uk:name="commentary" href="#key-0615a37a4b7e0fbdf485cebbd384c22f" class="commentary"/>sections 54 to 58</ins> for the purposes of enabling a <ins class="substitution first last" ukl:ChangeId="key-0654575c003a00c83db1bfa326215559-1521173572792" ukl:CommentaryRef="key-0654575c003a00c83db1bfa326215559"><noteRef uk:name="commentary" href="#key-0654575c003a00c83db1bfa326215559" class="commentary"/>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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-108-2"><num><noteRef href="#key-9e93ea0248cce04e548d494e56c6c12a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(2)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-109"><num>109</num><heading>Exemption from liability in damages for FCA and PRA</heading><subsection eId="section-109-1"><num>(1)</num><content><p><mod>In paragraph 25 of Schedule 1ZA to FSMA 2000 (FCA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-109-2"><num>(2)</num><content><p><mod>In paragraph 33 of Schedule 1ZB to FSMA 2000 (PRA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection><subsection eId="section-109-3"><num>(3)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-109-1"><num>(1)</num><content><p><mod>In paragraph 25 of Schedule 1ZA to FSMA 2000 (FCA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-109-2"><num>(2)</num><content><p><mod>In paragraph 33 of Schedule 1ZB to FSMA 2000 (PRA's exemption from liability in damages), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(1A)</num><content><p>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).</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-3"><num>(3)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-110"><num>110</num><heading>Interpretation of Part</heading><subsection eId="section-110-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” has the meaning given by section 76(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” has the meaning given by section 76(7);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” has the meaning given by section 71;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designation-order" eId="term-designation-order">designation order</term>” has the meaning given by section 43;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 41(2A);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset-exchange-provider"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset exchange provider</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 182(5B) of the Banking Act 2009;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-direct-access" eId="term-direct-access">direct access</term>”, in relation to a payment system, is to be read in accordance with section 42(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-document" eId="term-document">document</term>” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form or in a form from which it can readily be produced in visible and legible form;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>” has the meaning given by section 54(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” has the meaning given by section 96(3);</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e"><noteRef uk:name="commentary" href="#key-e56b28736fdd2a607fb787fcf86bb81e" class="commentary"/>“</ins><term refersTo="#term-generally-applicable-requirement"><ins ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">generally applicable requirement</ins></term><ins class="last" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">” has the meaning given by section 104(1);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>” has the meaning given by section 55(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">infrastructure provider</term>”, in relation to a payment system, has the meaning given by section 42(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a payment system, has the meaning given by section 42(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-participant" eId="term-participant">participant</term>”, in relation to a payment system, has the meaning given by section 42 (and references to participation in a payment system are to be read in accordance with that section);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">payment service provider</term>”, in relation to a payment system, has the meaning given by section 42(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” has the meaning given by section 41;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-62e88238ec0b70822df799d8477bf602" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-1ef995254441eb52226a075fde25cef5-1505812360373" ukl:CommentaryRef="key-1ef995254441eb52226a075fde25cef5"><noteRef uk:name="commentary" href="#key-1ef995254441eb52226a075fde25cef5" class="commentary"/>a</ins> payment system (within the meaning of Part 5 of the Banking Act 2009) specified as a recognised system for the purposes of that Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-payment-system" eId="term-regulated-payment-system">regulated payment system</term>” means a payment system designated as a regulated payment system by a designation order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-uk-financial-system" eId="term-the-uk-financial-system">the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system</term>” has the meaning given by section 1I of FSMA 2000.</p></content></hcontainer></subsection><subsection eId="section-110-2"><num>(2)</num><content><p>References in this Part to the Payment Systems Regulator's payment systems objectives are to be read in accordance with section 49(2).</p></content></subsection><subsection eId="section-110-3"><num>(3)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-110-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-cat-appealable-decision" eId="term-cat-appealable-decision">CAT-appealable decision</term>” has the meaning given by section 76(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-appealable-decision" eId="term-cma-appealable-decision">CMA-appealable decision</term>” has the meaning given by section 76(7);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-compliance-failure" eId="term-compliance-failure">compliance failure</term>” has the meaning given by section 71;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designation-order" eId="term-designation-order">designation order</term>” has the meaning given by section 43;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298326590" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 41(2A);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71"><noteRef uk:name="commentary" href="#key-ab054e3762c1db4fcd045c02c394dc71" class="commentary"/>“</ins><term refersTo="#term-digital-settlement-asset-exchange-provider"><ins ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">digital settlement asset exchange provider</ins></term><ins class="last" ukl:ChangeId="key-ab054e3762c1db4fcd045c02c394dc71-1695298340734" ukl:CommentaryRef="key-ab054e3762c1db4fcd045c02c394dc71">” has the meaning given by section 182(5B) of the Banking Act 2009;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-direct-access" eId="term-direct-access">direct access</term>”, in relation to a payment system, is to be read in accordance with section 42(6);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-document" eId="term-document">document</term>” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form or in a form from which it can readily be produced in visible and legible form;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-direction" eId="term-general-direction">general direction</term>” has the meaning given by section 54(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-general-guidance" eId="term-general-guidance">general guidance</term>” has the meaning given by section 96(3);</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e"><noteRef uk:name="commentary" href="#key-e56b28736fdd2a607fb787fcf86bb81e" class="commentary"/>“</ins><term refersTo="#term-generally-applicable-requirement"><ins ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">generally applicable requirement</ins></term><ins class="last" ukl:ChangeId="key-e56b28736fdd2a607fb787fcf86bb81e-1695298363795" ukl:CommentaryRef="key-e56b28736fdd2a607fb787fcf86bb81e">” has the meaning given by section 104(1);</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-generally-imposed-requirement" eId="term-generally-imposed-requirement">generally-imposed requirement</term>” has the meaning given by section 55(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-provider" eId="term-infrastructure-provider">infrastructure provider</term>”, in relation to a payment system, has the meaning given by section 42(4);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a payment system, has the meaning given by section 42(3);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-participant" eId="term-participant">participant</term>”, in relation to a payment system, has the meaning given by section 42 (and references to participation in a payment system are to be read in accordance with that section);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-service-provider" eId="term-payment-service-provider">payment service provider</term>”, in relation to a payment system, has the meaning given by section 42(5);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” has the meaning given by section 41;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-62e88238ec0b70822df799d8477bf602" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-1ef995254441eb52226a075fde25cef5-1505812360373" ukl:CommentaryRef="key-1ef995254441eb52226a075fde25cef5"><noteRef uk:name="commentary" href="#key-1ef995254441eb52226a075fde25cef5" class="commentary"/>a</ins> payment system (within the meaning of Part 5 of the Banking Act 2009) specified as a recognised system for the purposes of that Part;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-payment-system" eId="term-regulated-payment-system">regulated payment system</term>” means a payment system designated as a regulated payment system by a designation order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-uk-financial-system" eId="term-the-uk-financial-system">the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system</term>” has the meaning given by section 1I of FSMA 2000.</p></content></hcontainer></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-110-2"><num>(2)</num><content><p>References in this Part to the Payment Systems Regulator's payment systems objectives are to be read in accordance with section 49(2).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-110-3"><num>(3)</num><content><p>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.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-5-crossheading-recommendations"><heading><ins class="first" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"><noteRef uk:name="commentary" href="#key-e0bd16cf20812c070727a00ad247ccf3" class="commentary"/>Recommendations</ins></heading><section eId="section-102A"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">102A</ins></num><heading><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Recommendations by Treasury in connection with general duties</ins></heading><subsection eId="section-102A-1"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(1)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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—</ins></p></intro><level class="para1" eId="section-102A-1-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">how to advance one or more of its payment systems objectives,</ins></p></content></level><level class="para1" eId="section-102A-1-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the application of the regulatory principles in section 53, and</ins></p></content></level><level class="para1" eId="section-102A-1-c"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(c)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">its exercise of functions under—</ins></p></intro><level class="para2" eId="section-102A-1-c-i"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(i)</ins></num><content><p>
<ref eId="c00363" href="http://www.legislation.gov.uk/european/regulation/2015/0751"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Regulation (EU) 2015/751</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"> of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,</ins></p></content></level><level class="para2" eId="section-102A-1-c-ii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(ii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00364" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2015/1911</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">), or</ins></p></content></level><level class="para2" eId="section-102A-1-c-iii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(iii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Services Regulations 2017 (</ins><ref eId="c00365" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2017/752</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">).</ins></p></content></level></level></subsection><subsection eId="section-102A-2"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(2)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must make recommendations under subsection (1) at least once in each Parliament.</ins></p></content></subsection><subsection eId="section-102A-3"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(3)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Payment Systems Regulator must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—</ins></p></intro><level class="para1" eId="section-102A-3-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">action that the Regulator has taken or intends to take in accordance with the recommendation, or</ins></p></content></level><level class="para1" eId="section-102A-3-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation.</ins></p></content></level></subsection><subsection eId="section-102A-4"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(4)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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).</ins></p></content></subsection><subsection eId="section-102A-5"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(5)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection><subsection eId="section-102A-6"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(6)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Subsection (5) does not apply if the Treasury have notified the Payment Systems Regulator in writing that no update (or further update) is required.</ins></p></content></subsection><subsection eId="section-102A-7"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(7)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection><subsection eId="section-102A-8"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(8)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must—</ins></p></intro><level class="para1" eId="section-102A-8-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and</ins></p></content></level><level class="para1" eId="section-102A-8-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">lay a copy of it before Parliament.</ins></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">102A</ins></num><heading><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Recommendations by Treasury in connection with general duties</ins></heading><subsection eId="section-102A-1"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(1)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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—</ins></p></intro><level class="para1" eId="section-102A-1-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">how to advance one or more of its payment systems objectives,</ins></p></content></level><level class="para1" eId="section-102A-1-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the application of the regulatory principles in section 53, and</ins></p></content></level><level class="para1" eId="section-102A-1-c"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(c)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">its exercise of functions under—</ins></p></intro><level class="para2" eId="section-102A-1-c-i"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(i)</ins></num><content><p>
<ref eId="c00363" href="http://www.legislation.gov.uk/european/regulation/2015/0751"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Regulation (EU) 2015/751</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"> of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,</ins></p></content></level><level class="para2" eId="section-102A-1-c-ii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(ii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00364" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2015/1911</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">), or</ins></p></content></level><level class="para2" eId="section-102A-1-c-iii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(iii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Services Regulations 2017 (</ins><ref eId="c00365" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2017/752</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">).</ins></p></content></level></level></subsection><subsection eId="section-102A-2"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(2)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must make recommendations under subsection (1) at least once in each Parliament.</ins></p></content></subsection><subsection eId="section-102A-3"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(3)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Payment Systems Regulator must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—</ins></p></intro><level class="para1" eId="section-102A-3-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">action that the Regulator has taken or intends to take in accordance with the recommendation, or</ins></p></content></level><level class="para1" eId="section-102A-3-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation.</ins></p></content></level></subsection><subsection eId="section-102A-4"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(4)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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).</ins></p></content></subsection><subsection eId="section-102A-5"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(5)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection><subsection eId="section-102A-6"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(6)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Subsection (5) does not apply if the Treasury have notified the Payment Systems Regulator in writing that no update (or further update) is required.</ins></p></content></subsection><subsection eId="section-102A-7"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(7)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection><subsection eId="section-102A-8"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(8)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must—</ins></p></intro><level class="para1" eId="section-102A-8-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and</ins></p></content></level><level class="para1" eId="section-102A-8-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">lay a copy of it before Parliament.</ins></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-1"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(1)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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—</ins></p></intro><level class="para1" eId="section-102A-1-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">how to advance one or more of its payment systems objectives,</ins></p></content></level><level class="para1" eId="section-102A-1-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the application of the regulatory principles in section 53, and</ins></p></content></level><level class="para1" eId="section-102A-1-c"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(c)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">its exercise of functions under—</ins></p></intro><level class="para2" eId="section-102A-1-c-i"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(i)</ins></num><content><p>
<ref eId="c00363" href="http://www.legislation.gov.uk/european/regulation/2015/0751"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Regulation (EU) 2015/751</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"> of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,</ins></p></content></level><level class="para2" eId="section-102A-1-c-ii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(ii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00364" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2015/1911</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">), or</ins></p></content></level><level class="para2" eId="section-102A-1-c-iii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(iii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Services Regulations 2017 (</ins><ref eId="c00365" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2017/752</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">).</ins></p></content></level></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-1-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">how to advance one or more of its payment systems objectives,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-1-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the application of the regulatory principles in section 53, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-1-c"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(c)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">its exercise of functions under—</ins></p></intro><level class="para2" eId="section-102A-1-c-i"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(i)</ins></num><content><p>
<ref eId="c00363" href="http://www.legislation.gov.uk/european/regulation/2015/0751"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Regulation (EU) 2015/751</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"> of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,</ins></p></content></level><level class="para2" eId="section-102A-1-c-ii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(ii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00364" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2015/1911</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">), or</ins></p></content></level><level class="para2" eId="section-102A-1-c-iii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(iii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Services Regulations 2017 (</ins><ref eId="c00365" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2017/752</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">).</ins></p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-102A-1-c-i"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(i)</ins></num><content><p>
<ref eId="c00363" href="http://www.legislation.gov.uk/european/regulation/2015/0751"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Regulation (EU) 2015/751</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3"> of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-102A-1-c-ii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(ii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Card Interchange Fee Regulations 2015 (</ins><ref eId="c00364" href="http://www.legislation.gov.uk/id/uksi/2015/1911"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2015/1911</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">), or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-102A-1-c-iii"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(iii)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the Payment Services Regulations 2017 (</ins><ref eId="c00365" href="http://www.legislation.gov.uk/id/uksi/2017/752"><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">S.I. 2017/752</ins></ref><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">).</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-2"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(2)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must make recommendations under subsection (1) at least once in each Parliament.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-3"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(3)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Payment Systems Regulator must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—</ins></p></intro><level class="para1" eId="section-102A-3-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">action that the Regulator has taken or intends to take in accordance with the recommendation, or</ins></p></content></level><level class="para1" eId="section-102A-3-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-3-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">action that the Regulator has taken or intends to take in accordance with the recommendation, or</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-3-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">the reasons why the Regulator has not acted or does not intend to act in accordance with the recommendation.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-4"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(4)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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).</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-5"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(5)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-6"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(6)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">Subsection (5) does not apply if the Treasury have notified the Payment Systems Regulator in writing that no update (or further update) is required.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-7"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(7)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-102A-8"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(8)</ins></num><intro><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">The Treasury must—</ins></p></intro><level class="para1" eId="section-102A-8-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and</ins></p></content></level><level class="para1" eId="section-102A-8-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">lay a copy of it before Parliament.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-8-a"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(a)</ins></num><content><p><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">publish in such manner as they think fit any notice given under subsection (1), (3) or (5), and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-102A-8-b"><num><ins ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-e0bd16cf20812c070727a00ad247ccf3-1695294134905" ukl:CommentaryRef="key-e0bd16cf20812c070727a00ad247ccf3">lay a copy of it before Parliament.</ins></p></content></level>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-6"><num><b>PART 6</b></num><heading>Special administration for operators of certain infrastructure systems</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-introductory"><heading><i>Introductory</i></heading><section eId="section-111"><num>111</num><heading>Financial market <ins class="first last" ukl:ChangeId="key-4ed1adb1f49756428d9d113872a91224-1695293286941" ukl:CommentaryRef="key-4ed1adb1f49756428d9d113872a91224"><noteRef uk:name="commentary" href="#key-4ed1adb1f49756428d9d113872a91224" class="commentary"/>and cash</ins> infrastructure administration</heading><intro><p>This Part—</p></intro><level class="para1" eId="section-111-a"><num>(a)</num><content><p>provides for a procedure to be known as FMI administration, <noteRef href="#key-ff6de9ed2cb5960f77293d1450804137" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-111-b"><num>(b)</num><content><p>restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, <ins class="first" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781"><noteRef uk:name="commentary" href="#key-680202928df71148a196a66de1bde781" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-111-c"><num><ins ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">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).</ins></p></content></level></section><section eId="section-112"><num>112</num><heading>Interpretation: infrastructure companies</heading><subsection eId="section-112-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by this section.</p></content></subsection><subsection eId="section-112-2"><num>(2)</num><intro><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">Infrastructure company</term>” means a company which is—</p></intro><level class="para1" eId="section-112-2-a"><num>(a)</num><content><p>the operator of a recognised <noteRef href="#key-41aa8c9414f6f719d8ce5ad13f3b9d83" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, other than an operator excluded by subsection (3),</p></content></level><level class="para1" eId="section-112-2-aa"><num><ins class="first" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4"><noteRef uk:name="commentary" href="#key-f3ac6905eca864f80af69b70b05b2ce4" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4">a recognised DSA service provider,</ins></p></content></level><level class="para1" eId="section-112-2-b"><num><ins class="substitution first" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef uk:name="commentary" href="#key-e6635be400504884571a83f8bf35e4ef" class="commentary"/>(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">a recognised CSD </ins><noteRef href="#key-a7d11d4c45451ed4f6dedcd85050d250" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">..., </ins><ins class="substitution last" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef href="#key-b1df5a5cd6248a134f273aea29970a11" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</ins></p></content></level><level class="para1" eId="section-112-2-ba"><num><ins class="first" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c"><noteRef uk:name="commentary" href="#key-883de0de087adc816d81b7c0e9780f1c" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c">a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or</ins></p></content></level><level class="para1" eId="section-112-2-c"><num>(c)</num><content><p>a company designated by the Treasury under subsection (4).</p></content></level></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>But a company is not an infrastructure company if it is a recognised central counterparty, as defined by section 285 of FSMA 2000.</p></content></subsection><subsection eId="section-112-4"><num>(4)</num><intro><p>The Treasury may by order designate a company for the purposes of subsection (2)(c) if—</p></intro><level class="para1" eId="section-112-4-a"><num>(a)</num><content><p>the company provides services to a person falling within subsection <ins class="substitution first last" ukl:ChangeId="key-355dea63502060ea0da6dfa3df5cf9ab-1695298680672" ukl:CommentaryRef="key-355dea63502060ea0da6dfa3df5cf9ab"><noteRef uk:name="commentary" href="#key-355dea63502060ea0da6dfa3df5cf9ab" class="commentary"/>(2)(a), (b) or (ba)</ins>, and</p></content></level><level class="para1" eId="section-112-4-b"><num>(b)</num><content><p>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 <noteRef href="#key-49abcff9f913a77a493a4fe03da57917" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in question <ins class="first last" ukl:ChangeId="key-07cd03836d93edd6bde6fb6ebe0d057c-1695298628356" ukl:CommentaryRef="key-07cd03836d93edd6bde6fb6ebe0d057c"><noteRef uk:name="commentary" href="#key-07cd03836d93edd6bde6fb6ebe0d057c" class="commentary"/>or, in the case of a person falling within subsection (2)(ba), a relevant function</ins>.</p></content></level></subsection><subsection eId="section-112-5"><num>(5)</num><content><p>An order under subsection (4) must specify the recognised <noteRef href="#key-a2c1e7d6df06ed1cec82d4a2b77ac729" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in connection with which the company is designated.</p></content></subsection><subsection eId="section-112-6"><num>(6)</num><intro><p>Before designating a company under subsection (4), the Treasury must consult—</p></intro><level class="para1" eId="section-112-6-a"><num>(a)</num><content><p>the company to be designated,</p></content></level><level class="para1" eId="section-112-6-b"><num>(b)</num><content><p>the person within subsection <ins class="substitution first last" ukl:ChangeId="key-c05f2ab87fc2d89f4547cc187752e492-1695298708268" ukl:CommentaryRef="key-c05f2ab87fc2d89f4547cc187752e492"><noteRef uk:name="commentary" href="#key-c05f2ab87fc2d89f4547cc187752e492" class="commentary"/>(2)(a), (b) or (ba)</ins> to whom the company provides services,</p></content></level><level class="para1" eId="section-112-6-c"><num>(c)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-112-6-d"><num>(d)</num><content><p>if the company is a PRA-authorised person, the PRA and the FCA, and</p></content></level><level class="para1" eId="section-112-6-e"><num>(e)</num><content><p>if the company is an authorised person other than a PRA-authorised person, the FCA.</p></content></level></subsection><subsection eId="section-112-7"><num><ins class="first" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966"><noteRef uk:name="commentary" href="#key-12f62440a02ebd8f3d80bdf6e67f0966" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">In subsection (4)(b), “</ins><term refersTo="#term-relevant-function"><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">relevant function</ins></term><ins class="last" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">” means a function performed by the person in relation to wholesale cash distribution.</ins></p></content></subsection></section><section eId="section-113"><num>113</num><heading>Interpretation: other expressions</heading><subsection eId="section-113-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company registered under the Companies Act 2006;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-98993d455083ae8e7c2fd39da4be89e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, is to be read in accordance with section 183 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-e4ced469bccebec12ac4110292092d9f-1518180568714" ukl:CommentaryRef="key-e4ced469bccebec12ac4110292092d9f"><noteRef uk:name="commentary" href="#key-e4ced469bccebec12ac4110292092d9f" class="commentary"/>“recognised CSD” has the meaning given by section 285 of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800"><noteRef uk:name="commentary" href="#key-b9e412194e4da265b0119da8023c2800" class="commentary"/>“</ins><term refersTo="#term-recognised-dsa-service-provider"><ins ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">recognised DSA service provider</ins></term><ins class="last" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-f48949237bd2d22d9b0b209d30fe732f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-8f9732073e8954dc5d8b1e285fb57b83-1505817568316" ukl:CommentaryRef="key-8f9732073e8954dc5d8b1e285fb57b83"><noteRef uk:name="commentary" href="#key-8f9732073e8954dc5d8b1e285fb57b83" class="commentary"/>a</ins> 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;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an infrastructure company falling within subsection (2)(a) of section 112, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system,</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an infrastructure company falling within subsection (2)(b) of that section, the securities settlement system,</p></content></level><level class="para1"><num>(c)</num><content><p> <ins class="first last" ukl:ChangeId="key-5370fb0938994899cc6daf0c4f612839-1695298821606" ukl:CommentaryRef="key-5370fb0938994899cc6daf0c4f612839"><noteRef uk:name="commentary" href="#key-5370fb0938994899cc6daf0c4f612839" class="commentary"/>in relation to an infrastructure company falling within subsection (2)(ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,</ins> </p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a company designated under subsection (4) of that section, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system falling within paragraph (b) of that subsection;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"><noteRef uk:name="commentary" href="#key-c3b43263dd55a8c8f7312dc6188c18fc" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section </ins><ref href="#"><ins ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc">206E</ins></ref><ins class="last" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"> of the Banking Act 2009.</ins> </p></content></hcontainer></subsection><subsection eId="section-113-2"><num>(2)</num><content><p>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.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-fmi-administration-orders"><heading><i>FMI administration orders</i></heading><section eId="section-114"><num>114</num><heading>FMI administration orders</heading><subsection eId="section-114-1"><num>(1)</num><intro><p>In this Part “<term refersTo="#term-fmi-administration-order" eId="term-fmi-administration-order">FMI administration order</term>” means an order which—</p></intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content><p>is made by the court in relation to an infrastructure company, and</p></content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content><p>A person appointed as mentioned in subsection (1)(b) is referred to in this Part as an FMI administrator.</p></content></subsection><subsection eId="section-114-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-115"><num>115</num><heading>Objective of FMI administration</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>Where an FMI administrator is appointed in relation to the operator of a recognised <noteRef href="#key-1a375e71247948fd7dd9d837c1ff75fc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system <ins class="first last" ukl:ChangeId="key-6b08701c137da209df6df0494269fe71-1695298993943" ukl:CommentaryRef="key-6b08701c137da209df6df0494269fe71"><noteRef uk:name="commentary" href="#key-6b08701c137da209df6df0494269fe71" class="commentary"/>, or a recognised DSA service provider,</ins> <noteRef href="#key-16cff4466bf740986cbac0114c01a5fb" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., the objective of the FMI administration is—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>to ensure that the system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299013526" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins> is and continues to be maintained and operated as an efficient and effective system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299030071" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins>,</p></content></level><level class="para1" eId="section-115-1-b"><num><noteRef href="#key-5e89436f2b8da3690b37b3ace492afd5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , and</p></content></level><level class="para1" eId="section-115-1-c"><num>(c)</num><content><p>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 <noteRef href="#key-5099ac511d1277250b834f06f2d9bf5b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>....</p></content></level></subsection><subsection eId="section-115-1A"><num><ins class="first" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7"><noteRef uk:name="commentary" href="#key-d035c9429968b576778e103fda141cf7" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">Where an FMI administrator is appointed in relation to a recognised CSD </ins><noteRef href="#key-88534898094cbea10a64dfd7600bd245" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">..., the objective of the FMI administration is—</ins></p></intro><level class="para1" eId="section-115-1A-a"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(a)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the system is and continues to be maintained and operated as an efficient and effective system,</ins></p></content></level><level class="para1" eId="section-115-1A-b"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(b)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the protected activities continue to be carried on, and</ins></p></content></level><level class="para1" eId="section-115-1A-c"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">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.</ins></p></content></level></subsection><subsection eId="section-115-1B"><num><ins class="first" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae"><noteRef uk:name="commentary" href="#key-4f9b59c364a59bc2f3e2913aa712f6ae" class="commentary"/>(1B)</ins></num><intro><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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—</ins></p></intro><level class="para1" eId="section-115-1B-a"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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</ins></p></content></level><level class="para1" eId="section-115-1B-b"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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.</ins></p></content></level></subsection><subsection eId="section-115-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-115-2-a"><num>(a)</num><content><p>to ensure that services falling within that subsection continue to be provided, and</p></content></level><level class="para1" eId="section-115-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The protected activities referred to in subsection <ins class="substitution first last" ukl:ChangeId="key-3ab775bc16449cb48a9c98013706f071-1518438274916" ukl:CommentaryRef="key-3ab775bc16449cb48a9c98013706f071"><noteRef uk:name="commentary" href="#key-3ab775bc16449cb48a9c98013706f071" class="commentary"/>(1A)(b)</ins> are such activities as the Bank of England may from time to time direct, which must be—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>regulated activities falling within section <ins class="substitution first last" ukl:ChangeId="key-c04122e32285d46c9bae4a3d0066282c-1518438378776" ukl:CommentaryRef="key-c04122e32285d46c9bae4a3d0066282c"><noteRef uk:name="commentary" href="#key-c04122e32285d46c9bae4a3d0066282c" class="commentary"/>285(3D)</ins> of FSMA 2000, or</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>related activities which are necessary for the efficient carrying on of any of those regulated activities.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>The specified means are—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the rescue as a going concern of the company subject to the FMI administration order, and</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>transfers falling within subsection (5).</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>A transfer falls within this subsection if it is a transfer as a going concern—</p></intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content><p>to another company, or</p></content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content><p>as respects different parts of the undertaking of the company subject to the FMI administration order, to two or more different companies,</p></content></level><wrapUp><p>of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the FMI administration.</p></wrapUp></subsection><subsection eId="section-115-6"><num>(6)</num><intro><p>The means by which transfers falling within subsection (5) may be effected include, in particular—</p></intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content><p>the transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).</p></content></level></subsection><subsection eId="section-115-7"><num>(7)</num><intro><p>The objective of the FMI administration may be achieved by transfers falling within subsection (5) only to the extent that—</p></intro><level class="para1" eId="section-115-7-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-115-7-b"><num>(b)</num><content><p>the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers, or</p></content></level><level class="para1" eId="section-115-7-c"><num>(c)</num><content><p>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.</p></content></level></subsection></section><section eId="section-116"><num>116</num><heading>Application for FMI administration order</heading><subsection eId="section-116-1"><num>(1)</num><content><p>An application for an FMI administration order may be made to the court by the Bank of England.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>An application must nominate a person to be appointed as the FMI administrator.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>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).</p></content></subsection></section><section eId="section-117"><num>117</num><heading>Powers of court</heading><subsection eId="section-117-1"><num>(1)</num><intro><p>The court may make an FMI administration order in relation to an infrastructure company if satisfied—</p></intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content><p>that the company is unable to pay its debts,</p></content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content><p>that the company is likely to be unable to pay its debts, or</p></content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><intro><p>On an application for an FMI administration order, the court may—</p></intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content><p>grant the application;</p></content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content><p>dismiss the application;</p></content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content><p>adjourn the application (generally or to a specified date);</p></content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content><p>make an interim order;</p></content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content><p>treat the application as a winding-up petition and make any order which the court could make under section 125 of the 1986 Act;</p></content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content><p>make any other order which the court thinks appropriate.</p></content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro><p>An interim order under subsection (3)(d) may, in particular—</p></intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content><p>restrict the exercise of a power of the company or of its directors;</p></content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content><p>make provision conferring a discretion on the court or on a person qualified to act as an insolvency practitioner in relation to the company.</p></content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content><p>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).</p></content></subsection></section><section eId="section-118"><num>118</num><heading>FMI administrators</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>The FMI administrator of a company—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>is an officer of the court, and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>in exercising and performing powers and duties in relation to the company, is the company's agent.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-118-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content><p>the interests of the company's creditors as a whole, and</p></content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content><p>subject to those interests, the interests of the company's members as a whole.</p></content></level></subsection></section><section eId="section-119"><num>119</num><heading>Continuity of supply</heading><subsection eId="section-119-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><intro><p>After the commencement of FMI administration, the supplier—</p></intro><level class="para1" eId="section-119-2-a"><num>(a)</num><intro><p>must not terminate a supply unless—</p></intro><level class="para2" eId="section-119-2-a-i"><num>(i)</num><content><p>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,</p></content></level><level class="para2" eId="section-119-2-a-ii"><num>(ii)</num><content><p>the FMI administrator consents to the termination, or</p></content></level><level class="para2" eId="section-119-2-a-iii"><num>(iii)</num><content><p>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,</p></content></level></level><level class="para1" eId="section-119-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-119-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-119-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-119-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-119-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-119-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-commencement-of-fmi-administration" eId="term-commencement-of-fmi-administration">commencement of FMI administration</term>” means the making of the FMI administration order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-supplier" eId="term-supplier">supplier</term>” means the person controlling the provision of a supply to the infrastructure company, and includes a company that is a group undertaking (as defined by section 1161(5) of the Companies Act 2006) in respect of the infrastructure company;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-supply" eId="term-supply">supply</term>” means a supply of any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>computer hardware or software used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(b)</num><content><p> <ins class="first last" ukl:ChangeId="key-2fc666c857cd677dda52431d484e3408-1695299399800" ukl:CommentaryRef="key-2fc666c857cd677dda52431d484e3408"><noteRef uk:name="commentary" href="#key-2fc666c857cd677dda52431d484e3408" class="commentary"/>in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods or services used by the person in connection with wholesale cash distribution activities;</ins> </p></content></level><level class="para1"><num>(c)</num><content><p>financial data;</p></content></level><level class="para1"><num>(d)</num><content><p>infrastructure permitting electronic communication services;</p></content></level><level class="para1"><num>(e)</num><content><p>data processing;</p></content></level><level class="para1"><num>(f)</num><content><p>access to secure data networks used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(g)</num><content><p>staff.</p></content></level></hcontainer></subsection></section><section eId="section-120"><num>120</num><heading>Power to direct FMI administrator</heading><subsection eId="section-120-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-120-2"><num>(2)</num><intro><p>In deciding whether to give a direction under this section, the Bank of England must have regard to the public interest in—</p></intro><level class="para1" eId="section-120-2-a"><num>(a)</num><content><p>the protection and enhancement of the stability of the financial system of the United Kingdom, and</p></content></level><level class="para1" eId="section-120-2-b"><num>(b)</num><content><p>the maintenance of public confidence in that system.</p></content></level></subsection><subsection eId="section-120-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-120-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><intro><p>Those persons are—</p></intro><level class="para1" eId="section-120-6-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-120-6-b"><num>(b)</num><content><p>the company in FMI administration;</p></content></level><level class="para1" eId="section-120-6-c"><num>(c)</num><content><p>the officers or staff of the company.</p></content></level></subsection><subsection eId="section-120-7"><num>(7)</num><intro><p>Immunity conferred by this section does not extend to action or inaction—</p></intro><level class="para1" eId="section-120-7-a"><num>(a)</num><content><p>in bad faith, or</p></content></level><level class="para1" eId="section-120-7-b"><num>(b)</num><content><p>in contravention of section 6(1) of the Human Rights Act 1998.</p></content></level></subsection><subsection eId="section-120-8"><num>(8)</num><content><p>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 <noteRef href="#key-45ee4c3a60854606ceded48dc44b13a2" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment system <ins class="first" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"><noteRef uk:name="commentary" href="#key-6d8a1e84978ae1fa701ba104fb169681" class="commentary"/>or section </ins><ref href="#"><ins ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681">206M</ins></ref><ins class="last" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"> of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act</ins>.</p></content></subsection></section><section eId="section-121"><num>121</num><heading>Conduct of administration, transfer schemes <abbr title="et cetera" xml:lang="la">etc.</abbr></heading><subsection eId="section-121-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>Schedule 7 (which makes provision for transfer schemes to achieve the objective of an FMI administration) has effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p>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).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-restrictions-on-other-insolvency-procedures"><heading><i>Restrictions on other insolvency procedures</i></heading><section eId="section-122"><num>122</num><heading>Restriction on winding-up orders and voluntary winding up</heading><subsection eId="section-122-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-122-1-a"><num>(a)</num><content><p>the petitioner has notified the Bank of England that the petition has been presented, and</p></content></level><level class="para1" eId="section-122-1-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection><subsection eId="section-122-2"><num>(2)</num><intro><p>A resolution for the voluntary winding up of an infrastructure company may not be made unless—</p></intro><level class="para1" eId="section-122-2-a"><num>(a)</num><content><p>the infrastructure company has applied to the court under this section,</p></content></level><level class="para1" eId="section-122-2-b"><num>(b)</num><content><p>the company has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-122-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection></section><section eId="section-123"><num>123</num><heading>Restriction on making of ordinary administration orders</heading><subsection eId="section-123-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><intro><p>The court must dismiss the application if—</p></intro><level class="para1" eId="section-123-2-a"><num>(a)</num><content><p>an FMI administration order is in force in relation to the company, or</p></content></level><level class="para1" eId="section-123-2-b"><num>(b)</num><content><p>an FMI administration order has been made in relation to the company but is not yet in force.</p></content></level></subsection><subsection eId="section-123-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-123-3-a"><num>(a)</num><content><p>the applicant has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-123-3-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection><subsection eId="section-123-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-123-5"><num>(5)</num><content><p>“<term refersTo="#term-ordinary-administration-application" eId="term-ordinary-administration-application">Ordinary administration application</term>” means an application under paragraph 12 of Schedule B1 to the 1986 Act.</p></content></subsection></section><section eId="section-124"><num>124</num><heading>Restriction on enforcement of security</heading><intro><p>A person may not take any step to enforce a security over property of an infrastructure company unless—</p></intro><level class="para1" eId="section-124-a"><num>(a)</num><content><p>notice of the intention to do so has been given to the Bank of England, and</p></content></level><level class="para1" eId="section-124-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice was received by the Bank has ended.</p></content></level></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-powers-to-participate-in-part-26a-proceedings"><heading><ins class="first" ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f"><noteRef uk:name="commentary" href="#key-a311dff8472996bb8fb6c858b4ff632f" class="commentary"/>Powers to participate in Part 26A proceedings</ins></heading><section eId="section-124A"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">124A</ins></num><heading><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Powers of Bank to participate in Part 26A proceedings</ins></heading><subsection eId="section-124A-1"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(1)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-2"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(2)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A relevant applicant must give notice to the Bank of England of—</ins></p></intro><level class="para1" eId="section-124A-2-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and</ins></p></content></level><level class="para1" eId="section-124A-2-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></level></subsection><subsection eId="section-124A-3"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(3)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-4"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(4)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">In this section “relevant applicant”, in relation to a company, means—</ins></p></intro><level class="para1" eId="section-124A-4-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">the company;</ins></p></content></level><level class="para1" eId="section-124A-4-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is being wound up, the liquidator;</ins></p></content></level><level class="para1" eId="section-124A-4-c"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(c)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is in administration, the administrator.</ins></p></content></level></subsection><subsection eId="section-124A-5"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(5)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-6"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(6)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Any notice or other document required to be sent to a creditor of the company must also be sent to the Bank of England.</ins></p></content></subsection><subsection eId="section-124A-7"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(7)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A person appointed for the purpose by the Bank of England is entitled—</ins></p></intro><level class="para1" eId="section-124A-7-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;</ins></p></content></level><level class="para1" eId="section-124A-7-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to make representations as to any matter for decision at such a meeting.</ins></p></content></level></subsection><subsection eId="section-124A-8"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-financial-support-for-companies-in-fmi-administration"><heading><i>Financial support for companies in FMI administration</i></heading><section eId="section-125"><num>125</num><heading>Loans</heading><subsection eId="section-125-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>The Treasury may, out of money provided by Parliament, make loans to the company for achieving the objective in section 115.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>A loan under this section may be made on such terms as the Treasury think fit.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of this section.</p></content></subsection></section><section eId="section-126"><num>126</num><heading>Indemnities</heading><subsection eId="section-126-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection><subsection eId="section-126-2"><num>(2)</num><intro><p>The Treasury may agree to indemnify persons in respect of one or both of the following—</p></intro><level class="para1" eId="section-126-2-a"><num>(a)</num><content><p>liabilities incurred in connection with the exercise of powers and duties by the FMI administrator;</p></content></level><level class="para1" eId="section-126-2-b"><num>(b)</num><content><p>loss or damage sustained in that connection.</p></content></level></subsection><subsection eId="section-126-3"><num>(3)</num><content><p>The agreement may be made in whatever manner, and on whatever terms, the Treasury think fit.</p></content></subsection><subsection eId="section-126-4"><num>(4)</num><content><p>As soon as practicable after agreeing to indemnify persons under this section, the Treasury must lay before Parliament a statement of the agreement.</p></content></subsection><subsection eId="section-126-5"><num>(5)</num><intro><p>If sums are paid by the Treasury in consequence of an indemnity agreed to under this section, the infrastructure company must pay the Treasury—</p></intro><level class="para1" eId="section-126-5-a"><num>(a)</num><content><p>such amounts in or towards the repayment to them of those sums as the Treasury may direct, and</p></content></level><level class="para1" eId="section-126-5-b"><num>(b)</num><content><p>interest, at such rates as they may direct, on amounts outstanding under this subsection.</p></content></level></subsection><subsection eId="section-126-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-126-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-7-a"><num>(a)</num><content><p>as soon as practicable after the end of the financial year in which that sum is paid out, and</p></content></level><level class="para1" eId="section-126-7-b"><num>(b)</num><content><p>(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.</p></content></level></subsection><subsection eId="section-126-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-8-a"><num>(a)</num><content><p>before the beginning of that year, the whole of that sum has been repaid to the Treasury under subsection (5), and</p></content></level><level class="para1" eId="section-126-8-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-9"><num>(9)</num><intro><p>The power of the Treasury to agree to indemnify persons—</p></intro><level class="para1" eId="section-126-9-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-9-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-10"><num>(10)</num><intro><p>For the purposes of this section each of the following is a relevant person—</p></intro><level class="para1" eId="section-126-10-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-b"><num>(b)</num><content><p>an employee of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-c"><num>(c)</num><content><p>a member or employee of a firm of which the FMI administrator is a member;</p></content></level><level class="para1" eId="section-126-10-d"><num>(d)</num><content><p>a member or employee of a firm of which the FMI administrator is an employee;</p></content></level><level class="para1" eId="section-126-10-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-126-10-f"><num>(f)</num><content><p>a body corporate which is the employer of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-g"><num>(g)</num><content><p>an officer, employee or member of such a body corporate.</p></content></level></subsection><subsection eId="section-126-11"><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1" eId="section-126-11-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-11-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-12"><num>(12)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of subsection (5).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-interpretation"><heading><i>Interpretation</i></heading><section eId="section-127"><num>127</num><heading>Interpretation of Part</heading><subsection eId="section-127-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-1986-act" eId="term-the-1986-act">the 1986 Act</term>” means the Insolvency Act 1986;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-business" eId="term-business">business</term>”, “<term refersTo="#term-member" eId="term-member">member</term>”, “<term refersTo="#term-property" eId="term-property">property</term>” and “<term refersTo="#term-security" eId="term-security">security</term>” have the same meaning as in the 1986 Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-court" eId="term-the-court">the court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in England and Wales and Northern Ireland, the High Court;</p></content></level><level class="para1"><num>(b)</num><content><p>in Scotland, the Court of Session;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“FMI administration order” and “FMI administrator” are to be read in accordance with section 114;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by section 112;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-activity" eId="term-regulated-activity">regulated activity</term>” has the same meaning as in FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” has the meaning given by section 113.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-73d386ba1def5c75f138c0248d15a7b6-1695299631997" ukl:CommentaryRef="key-73d386ba1def5c75f138c0248d15a7b6"><noteRef uk:name="commentary" href="#key-73d386ba1def5c75f138c0248d15a7b6" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.</ins> </p></content></hcontainer></subsection><subsection eId="section-127-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-127-3"><num>(3)</num><content><p>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.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-application-of-part-to-northern-ireland"><heading><i>Application of Part to Northern Ireland</i></heading><section eId="section-128"><num>128</num><heading>Northern Ireland</heading><subsection eId="section-128-1"><num>(1)</num><content><p>This section makes provision about this Part in its application to Northern Ireland.</p></content></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p>Section 127(3) is to have effect as if the reference to Northern Ireland were a reference to England and Wales or Scotland.</p></content></subsection></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-introductory"><heading><i>Introductory</i></heading><section eId="section-111"><num>111</num><heading>Financial market <ins class="first last" ukl:ChangeId="key-4ed1adb1f49756428d9d113872a91224-1695293286941" ukl:CommentaryRef="key-4ed1adb1f49756428d9d113872a91224"><noteRef uk:name="commentary" href="#key-4ed1adb1f49756428d9d113872a91224" class="commentary"/>and cash</ins> infrastructure administration</heading><intro><p>This Part—</p></intro><level class="para1" eId="section-111-a"><num>(a)</num><content><p>provides for a procedure to be known as FMI administration, <noteRef href="#key-ff6de9ed2cb5960f77293d1450804137" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-111-b"><num>(b)</num><content><p>restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, <ins class="first" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781"><noteRef uk:name="commentary" href="#key-680202928df71148a196a66de1bde781" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-111-c"><num><ins ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">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).</ins></p></content></level></section><section eId="section-112"><num>112</num><heading>Interpretation: infrastructure companies</heading><subsection eId="section-112-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by this section.</p></content></subsection><subsection eId="section-112-2"><num>(2)</num><intro><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">Infrastructure company</term>” means a company which is—</p></intro><level class="para1" eId="section-112-2-a"><num>(a)</num><content><p>the operator of a recognised <noteRef href="#key-41aa8c9414f6f719d8ce5ad13f3b9d83" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, other than an operator excluded by subsection (3),</p></content></level><level class="para1" eId="section-112-2-aa"><num><ins class="first" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4"><noteRef uk:name="commentary" href="#key-f3ac6905eca864f80af69b70b05b2ce4" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4">a recognised DSA service provider,</ins></p></content></level><level class="para1" eId="section-112-2-b"><num><ins class="substitution first" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef uk:name="commentary" href="#key-e6635be400504884571a83f8bf35e4ef" class="commentary"/>(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">a recognised CSD </ins><noteRef href="#key-a7d11d4c45451ed4f6dedcd85050d250" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">..., </ins><ins class="substitution last" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef href="#key-b1df5a5cd6248a134f273aea29970a11" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</ins></p></content></level><level class="para1" eId="section-112-2-ba"><num><ins class="first" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c"><noteRef uk:name="commentary" href="#key-883de0de087adc816d81b7c0e9780f1c" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c">a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or</ins></p></content></level><level class="para1" eId="section-112-2-c"><num>(c)</num><content><p>a company designated by the Treasury under subsection (4).</p></content></level></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>But a company is not an infrastructure company if it is a recognised central counterparty, as defined by section 285 of FSMA 2000.</p></content></subsection><subsection eId="section-112-4"><num>(4)</num><intro><p>The Treasury may by order designate a company for the purposes of subsection (2)(c) if—</p></intro><level class="para1" eId="section-112-4-a"><num>(a)</num><content><p>the company provides services to a person falling within subsection <ins class="substitution first last" ukl:ChangeId="key-355dea63502060ea0da6dfa3df5cf9ab-1695298680672" ukl:CommentaryRef="key-355dea63502060ea0da6dfa3df5cf9ab"><noteRef uk:name="commentary" href="#key-355dea63502060ea0da6dfa3df5cf9ab" class="commentary"/>(2)(a), (b) or (ba)</ins>, and</p></content></level><level class="para1" eId="section-112-4-b"><num>(b)</num><content><p>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 <noteRef href="#key-49abcff9f913a77a493a4fe03da57917" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in question <ins class="first last" ukl:ChangeId="key-07cd03836d93edd6bde6fb6ebe0d057c-1695298628356" ukl:CommentaryRef="key-07cd03836d93edd6bde6fb6ebe0d057c"><noteRef uk:name="commentary" href="#key-07cd03836d93edd6bde6fb6ebe0d057c" class="commentary"/>or, in the case of a person falling within subsection (2)(ba), a relevant function</ins>.</p></content></level></subsection><subsection eId="section-112-5"><num>(5)</num><content><p>An order under subsection (4) must specify the recognised <noteRef href="#key-a2c1e7d6df06ed1cec82d4a2b77ac729" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in connection with which the company is designated.</p></content></subsection><subsection eId="section-112-6"><num>(6)</num><intro><p>Before designating a company under subsection (4), the Treasury must consult—</p></intro><level class="para1" eId="section-112-6-a"><num>(a)</num><content><p>the company to be designated,</p></content></level><level class="para1" eId="section-112-6-b"><num>(b)</num><content><p>the person within subsection <ins class="substitution first last" ukl:ChangeId="key-c05f2ab87fc2d89f4547cc187752e492-1695298708268" ukl:CommentaryRef="key-c05f2ab87fc2d89f4547cc187752e492"><noteRef uk:name="commentary" href="#key-c05f2ab87fc2d89f4547cc187752e492" class="commentary"/>(2)(a), (b) or (ba)</ins> to whom the company provides services,</p></content></level><level class="para1" eId="section-112-6-c"><num>(c)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-112-6-d"><num>(d)</num><content><p>if the company is a PRA-authorised person, the PRA and the FCA, and</p></content></level><level class="para1" eId="section-112-6-e"><num>(e)</num><content><p>if the company is an authorised person other than a PRA-authorised person, the FCA.</p></content></level></subsection><subsection eId="section-112-7"><num><ins class="first" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966"><noteRef uk:name="commentary" href="#key-12f62440a02ebd8f3d80bdf6e67f0966" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">In subsection (4)(b), “</ins><term refersTo="#term-relevant-function"><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">relevant function</ins></term><ins class="last" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">” means a function performed by the person in relation to wholesale cash distribution.</ins></p></content></subsection></section><section eId="section-113"><num>113</num><heading>Interpretation: other expressions</heading><subsection eId="section-113-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company registered under the Companies Act 2006;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-98993d455083ae8e7c2fd39da4be89e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, is to be read in accordance with section 183 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-e4ced469bccebec12ac4110292092d9f-1518180568714" ukl:CommentaryRef="key-e4ced469bccebec12ac4110292092d9f"><noteRef uk:name="commentary" href="#key-e4ced469bccebec12ac4110292092d9f" class="commentary"/>“recognised CSD” has the meaning given by section 285 of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800"><noteRef uk:name="commentary" href="#key-b9e412194e4da265b0119da8023c2800" class="commentary"/>“</ins><term refersTo="#term-recognised-dsa-service-provider"><ins ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">recognised DSA service provider</ins></term><ins class="last" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-f48949237bd2d22d9b0b209d30fe732f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-8f9732073e8954dc5d8b1e285fb57b83-1505817568316" ukl:CommentaryRef="key-8f9732073e8954dc5d8b1e285fb57b83"><noteRef uk:name="commentary" href="#key-8f9732073e8954dc5d8b1e285fb57b83" class="commentary"/>a</ins> 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;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an infrastructure company falling within subsection (2)(a) of section 112, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system,</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an infrastructure company falling within subsection (2)(b) of that section, the securities settlement system,</p></content></level><level class="para1"><num>(c)</num><content><p> <ins class="first last" ukl:ChangeId="key-5370fb0938994899cc6daf0c4f612839-1695298821606" ukl:CommentaryRef="key-5370fb0938994899cc6daf0c4f612839"><noteRef uk:name="commentary" href="#key-5370fb0938994899cc6daf0c4f612839" class="commentary"/>in relation to an infrastructure company falling within subsection (2)(ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,</ins> </p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a company designated under subsection (4) of that section, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system falling within paragraph (b) of that subsection;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"><noteRef uk:name="commentary" href="#key-c3b43263dd55a8c8f7312dc6188c18fc" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section </ins><ref href="#"><ins ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc">206E</ins></ref><ins class="last" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"> of the Banking Act 2009.</ins> </p></content></hcontainer></subsection><subsection eId="section-113-2"><num>(2)</num><content><p>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.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-111"><num>111</num><heading>Financial market <ins class="first last" ukl:ChangeId="key-4ed1adb1f49756428d9d113872a91224-1695293286941" ukl:CommentaryRef="key-4ed1adb1f49756428d9d113872a91224"><noteRef uk:name="commentary" href="#key-4ed1adb1f49756428d9d113872a91224" class="commentary"/>and cash</ins> infrastructure administration</heading><intro><p>This Part—</p></intro><level class="para1" eId="section-111-a"><num>(a)</num><content><p>provides for a procedure to be known as FMI administration, <noteRef href="#key-ff6de9ed2cb5960f77293d1450804137" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-111-b"><num>(b)</num><content><p>restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, <ins class="first" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781"><noteRef uk:name="commentary" href="#key-680202928df71148a196a66de1bde781" class="commentary"/>and</ins></p></content></level><level class="para1" eId="section-111-c"><num><ins ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">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).</ins></p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-111-a"><num>(a)</num><content><p>provides for a procedure to be known as FMI administration, <noteRef href="#key-ff6de9ed2cb5960f77293d1450804137" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-111-b"><num>(b)</num><content><p>restricts the powers of persons other than the Bank of England in relation to the insolvency of infrastructure companies, <ins class="first" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781"><noteRef uk:name="commentary" href="#key-680202928df71148a196a66de1bde781" class="commentary"/>and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-111-c"><num><ins ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-680202928df71148a196a66de1bde781-1596807630659" ukl:CommentaryRef="key-680202928df71148a196a66de1bde781">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).</ins></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-112"><num>112</num><heading>Interpretation: infrastructure companies</heading><subsection eId="section-112-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by this section.</p></content></subsection><subsection eId="section-112-2"><num>(2)</num><intro><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">Infrastructure company</term>” means a company which is—</p></intro><level class="para1" eId="section-112-2-a"><num>(a)</num><content><p>the operator of a recognised <noteRef href="#key-41aa8c9414f6f719d8ce5ad13f3b9d83" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, other than an operator excluded by subsection (3),</p></content></level><level class="para1" eId="section-112-2-aa"><num><ins class="first" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4"><noteRef uk:name="commentary" href="#key-f3ac6905eca864f80af69b70b05b2ce4" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4">a recognised DSA service provider,</ins></p></content></level><level class="para1" eId="section-112-2-b"><num><ins class="substitution first" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef uk:name="commentary" href="#key-e6635be400504884571a83f8bf35e4ef" class="commentary"/>(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">a recognised CSD </ins><noteRef href="#key-a7d11d4c45451ed4f6dedcd85050d250" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">..., </ins><ins class="substitution last" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef href="#key-b1df5a5cd6248a134f273aea29970a11" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</ins></p></content></level><level class="para1" eId="section-112-2-ba"><num><ins class="first" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c"><noteRef uk:name="commentary" href="#key-883de0de087adc816d81b7c0e9780f1c" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c">a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or</ins></p></content></level><level class="para1" eId="section-112-2-c"><num>(c)</num><content><p>a company designated by the Treasury under subsection (4).</p></content></level></subsection><subsection eId="section-112-3"><num>(3)</num><content><p>But a company is not an infrastructure company if it is a recognised central counterparty, as defined by section 285 of FSMA 2000.</p></content></subsection><subsection eId="section-112-4"><num>(4)</num><intro><p>The Treasury may by order designate a company for the purposes of subsection (2)(c) if—</p></intro><level class="para1" eId="section-112-4-a"><num>(a)</num><content><p>the company provides services to a person falling within subsection <ins class="substitution first last" ukl:ChangeId="key-355dea63502060ea0da6dfa3df5cf9ab-1695298680672" ukl:CommentaryRef="key-355dea63502060ea0da6dfa3df5cf9ab"><noteRef uk:name="commentary" href="#key-355dea63502060ea0da6dfa3df5cf9ab" class="commentary"/>(2)(a), (b) or (ba)</ins>, and</p></content></level><level class="para1" eId="section-112-4-b"><num>(b)</num><content><p>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 <noteRef href="#key-49abcff9f913a77a493a4fe03da57917" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in question <ins class="first last" ukl:ChangeId="key-07cd03836d93edd6bde6fb6ebe0d057c-1695298628356" ukl:CommentaryRef="key-07cd03836d93edd6bde6fb6ebe0d057c"><noteRef uk:name="commentary" href="#key-07cd03836d93edd6bde6fb6ebe0d057c" class="commentary"/>or, in the case of a person falling within subsection (2)(ba), a relevant function</ins>.</p></content></level></subsection><subsection eId="section-112-5"><num>(5)</num><content><p>An order under subsection (4) must specify the recognised <noteRef href="#key-a2c1e7d6df06ed1cec82d4a2b77ac729" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in connection with which the company is designated.</p></content></subsection><subsection eId="section-112-6"><num>(6)</num><intro><p>Before designating a company under subsection (4), the Treasury must consult—</p></intro><level class="para1" eId="section-112-6-a"><num>(a)</num><content><p>the company to be designated,</p></content></level><level class="para1" eId="section-112-6-b"><num>(b)</num><content><p>the person within subsection <ins class="substitution first last" ukl:ChangeId="key-c05f2ab87fc2d89f4547cc187752e492-1695298708268" ukl:CommentaryRef="key-c05f2ab87fc2d89f4547cc187752e492"><noteRef uk:name="commentary" href="#key-c05f2ab87fc2d89f4547cc187752e492" class="commentary"/>(2)(a), (b) or (ba)</ins> to whom the company provides services,</p></content></level><level class="para1" eId="section-112-6-c"><num>(c)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-112-6-d"><num>(d)</num><content><p>if the company is a PRA-authorised person, the PRA and the FCA, and</p></content></level><level class="para1" eId="section-112-6-e"><num>(e)</num><content><p>if the company is an authorised person other than a PRA-authorised person, the FCA.</p></content></level></subsection><subsection eId="section-112-7"><num><ins class="first" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966"><noteRef uk:name="commentary" href="#key-12f62440a02ebd8f3d80bdf6e67f0966" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">In subsection (4)(b), “</ins><term refersTo="#term-relevant-function"><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">relevant function</ins></term><ins class="last" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">” means a function performed by the person in relation to wholesale cash distribution.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-1"><num>(1)</num><content><p>In this Part “<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by this section.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-112-2"><num>(2)</num><intro><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">Infrastructure company</term>” means a company which is—</p></intro><level class="para1" eId="section-112-2-a"><num>(a)</num><content><p>the operator of a recognised <noteRef href="#key-41aa8c9414f6f719d8ce5ad13f3b9d83" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, other than an operator excluded by subsection (3),</p></content></level><level class="para1" eId="section-112-2-aa"><num><ins class="first" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4"><noteRef uk:name="commentary" href="#key-f3ac6905eca864f80af69b70b05b2ce4" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4">a recognised DSA service provider,</ins></p></content></level><level class="para1" eId="section-112-2-b"><num><ins class="substitution first" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef uk:name="commentary" href="#key-e6635be400504884571a83f8bf35e4ef" class="commentary"/>(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">a recognised CSD </ins><noteRef href="#key-a7d11d4c45451ed4f6dedcd85050d250" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">..., </ins><ins class="substitution last" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef href="#key-b1df5a5cd6248a134f273aea29970a11" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</ins></p></content></level><level class="para1" eId="section-112-2-ba"><num><ins class="first" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c"><noteRef uk:name="commentary" href="#key-883de0de087adc816d81b7c0e9780f1c" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c">a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or</ins></p></content></level><level class="para1" eId="section-112-2-c"><num>(c)</num><content><p>a company designated by the Treasury under subsection (4).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-112-2-a"><num>(a)</num><content><p>the operator of a recognised <noteRef href="#key-41aa8c9414f6f719d8ce5ad13f3b9d83" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, other than an operator excluded by subsection (3),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-112-2-b"><num><ins class="substitution first" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef uk:name="commentary" href="#key-e6635be400504884571a83f8bf35e4ef" class="commentary"/>(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">a recognised CSD </ins><noteRef href="#key-a7d11d4c45451ed4f6dedcd85050d250" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins class="substitution" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef">..., </ins><ins class="substitution last" ukl:ChangeId="key-e6635be400504884571a83f8bf35e4ef-1518179508631" ukl:CommentaryRef="key-e6635be400504884571a83f8bf35e4ef"><noteRef href="#key-b1df5a5cd6248a134f273aea29970a11" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-112-2-aa"><num><ins class="first" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4"><noteRef uk:name="commentary" href="#key-f3ac6905eca864f80af69b70b05b2ce4" class="commentary"/>(aa)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f3ac6905eca864f80af69b70b05b2ce4-1695298518165" ukl:CommentaryRef="key-f3ac6905eca864f80af69b70b05b2ce4">a recognised DSA service provider,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-112-2-c"><num>(c)</num><content><p>a company designated by the Treasury under subsection (4).</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-112-2-ba"><num><ins class="first" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c"><noteRef uk:name="commentary" href="#key-883de0de087adc816d81b7c0e9780f1c" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-883de0de087adc816d81b7c0e9780f1c-1695298592894" ukl:CommentaryRef="key-883de0de087adc816d81b7c0e9780f1c">a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-3"><num>(3)</num><content><p>But a company is not an infrastructure company if it is a recognised central counterparty, as defined by section 285 of FSMA 2000.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-112-4"><num>(4)</num><intro><p>The Treasury may by order designate a company for the purposes of subsection (2)(c) if—</p></intro><level class="para1" eId="section-112-4-a"><num>(a)</num><content><p>the company provides services to a person falling within subsection <ins class="substitution first last" ukl:ChangeId="key-355dea63502060ea0da6dfa3df5cf9ab-1695298680672" ukl:CommentaryRef="key-355dea63502060ea0da6dfa3df5cf9ab"><noteRef uk:name="commentary" href="#key-355dea63502060ea0da6dfa3df5cf9ab" class="commentary"/>(2)(a), (b) or (ba)</ins>, and</p></content></level><level class="para1" eId="section-112-4-b"><num>(b)</num><content><p>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 <noteRef href="#key-49abcff9f913a77a493a4fe03da57917" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in question <ins class="first last" ukl:ChangeId="key-07cd03836d93edd6bde6fb6ebe0d057c-1695298628356" ukl:CommentaryRef="key-07cd03836d93edd6bde6fb6ebe0d057c"><noteRef uk:name="commentary" href="#key-07cd03836d93edd6bde6fb6ebe0d057c" class="commentary"/>or, in the case of a person falling within subsection (2)(ba), a relevant function</ins>.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-112-4-a"><num>(a)</num><content><p>the company provides services to a person falling within subsection <ins class="substitution first last" ukl:ChangeId="key-355dea63502060ea0da6dfa3df5cf9ab-1695298680672" ukl:CommentaryRef="key-355dea63502060ea0da6dfa3df5cf9ab"><noteRef uk:name="commentary" href="#key-355dea63502060ea0da6dfa3df5cf9ab" class="commentary"/>(2)(a), (b) or (ba)</ins>, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-112-4-b"><num>(b)</num><content><p>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 <noteRef href="#key-49abcff9f913a77a493a4fe03da57917" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in question <ins class="first last" ukl:ChangeId="key-07cd03836d93edd6bde6fb6ebe0d057c-1695298628356" ukl:CommentaryRef="key-07cd03836d93edd6bde6fb6ebe0d057c"><noteRef uk:name="commentary" href="#key-07cd03836d93edd6bde6fb6ebe0d057c" class="commentary"/>or, in the case of a person falling within subsection (2)(ba), a relevant function</ins>.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-112-5"><num>(5)</num><content><p>An order under subsection (4) must specify the recognised <noteRef href="#key-a2c1e7d6df06ed1cec82d4a2b77ac729" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system in connection with which the company is designated.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-112-6"><num>(6)</num><intro><p>Before designating a company under subsection (4), the Treasury must consult—</p></intro><level class="para1" eId="section-112-6-a"><num>(a)</num><content><p>the company to be designated,</p></content></level><level class="para1" eId="section-112-6-b"><num>(b)</num><content><p>the person within subsection <ins class="substitution first last" ukl:ChangeId="key-c05f2ab87fc2d89f4547cc187752e492-1695298708268" ukl:CommentaryRef="key-c05f2ab87fc2d89f4547cc187752e492"><noteRef uk:name="commentary" href="#key-c05f2ab87fc2d89f4547cc187752e492" class="commentary"/>(2)(a), (b) or (ba)</ins> to whom the company provides services,</p></content></level><level class="para1" eId="section-112-6-c"><num>(c)</num><content><p>the Bank of England,</p></content></level><level class="para1" eId="section-112-6-d"><num>(d)</num><content><p>if the company is a PRA-authorised person, the PRA and the FCA, and</p></content></level><level class="para1" eId="section-112-6-e"><num>(e)</num><content><p>if the company is an authorised person other than a PRA-authorised person, the FCA.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-112-6-a"><num>(a)</num><content><p>the company to be designated,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-112-6-b"><num>(b)</num><content><p>the person within subsection <ins class="substitution first last" ukl:ChangeId="key-c05f2ab87fc2d89f4547cc187752e492-1695298708268" ukl:CommentaryRef="key-c05f2ab87fc2d89f4547cc187752e492"><noteRef uk:name="commentary" href="#key-c05f2ab87fc2d89f4547cc187752e492" class="commentary"/>(2)(a), (b) or (ba)</ins> to whom the company provides services,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-112-6-c"><num>(c)</num><content><p>the Bank of England,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-112-6-d"><num>(d)</num><content><p>if the company is a PRA-authorised person, the PRA and the FCA, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-112-6-e"><num>(e)</num><content><p>if the company is an authorised person other than a PRA-authorised person, the FCA.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-112-7"><num><ins class="first" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966"><noteRef uk:name="commentary" href="#key-12f62440a02ebd8f3d80bdf6e67f0966" class="commentary"/>(7)</ins></num><content><p><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">In subsection (4)(b), “</ins><term refersTo="#term-relevant-function"><ins ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">relevant function</ins></term><ins class="last" ukl:ChangeId="key-12f62440a02ebd8f3d80bdf6e67f0966-1695298473183" ukl:CommentaryRef="key-12f62440a02ebd8f3d80bdf6e67f0966">” means a function performed by the person in relation to wholesale cash distribution.</ins></p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-113"><num>113</num><heading>Interpretation: other expressions</heading><subsection eId="section-113-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company registered under the Companies Act 2006;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-98993d455083ae8e7c2fd39da4be89e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, is to be read in accordance with section 183 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-e4ced469bccebec12ac4110292092d9f-1518180568714" ukl:CommentaryRef="key-e4ced469bccebec12ac4110292092d9f"><noteRef uk:name="commentary" href="#key-e4ced469bccebec12ac4110292092d9f" class="commentary"/>“recognised CSD” has the meaning given by section 285 of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800"><noteRef uk:name="commentary" href="#key-b9e412194e4da265b0119da8023c2800" class="commentary"/>“</ins><term refersTo="#term-recognised-dsa-service-provider"><ins ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">recognised DSA service provider</ins></term><ins class="last" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-f48949237bd2d22d9b0b209d30fe732f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-8f9732073e8954dc5d8b1e285fb57b83-1505817568316" ukl:CommentaryRef="key-8f9732073e8954dc5d8b1e285fb57b83"><noteRef uk:name="commentary" href="#key-8f9732073e8954dc5d8b1e285fb57b83" class="commentary"/>a</ins> 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;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an infrastructure company falling within subsection (2)(a) of section 112, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system,</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an infrastructure company falling within subsection (2)(b) of that section, the securities settlement system,</p></content></level><level class="para1"><num>(c)</num><content><p> <ins class="first last" ukl:ChangeId="key-5370fb0938994899cc6daf0c4f612839-1695298821606" ukl:CommentaryRef="key-5370fb0938994899cc6daf0c4f612839"><noteRef uk:name="commentary" href="#key-5370fb0938994899cc6daf0c4f612839" class="commentary"/>in relation to an infrastructure company falling within subsection (2)(ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,</ins> </p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a company designated under subsection (4) of that section, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system falling within paragraph (b) of that subsection;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"><noteRef uk:name="commentary" href="#key-c3b43263dd55a8c8f7312dc6188c18fc" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section </ins><ref href="#"><ins ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc">206E</ins></ref><ins class="last" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"> of the Banking Act 2009.</ins> </p></content></hcontainer></subsection><subsection eId="section-113-2"><num>(2)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-113-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company registered under the Companies Act 2006;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-98993d455083ae8e7c2fd39da4be89e7" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, is to be read in accordance with section 183 of the Banking Act 2009;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-e4ced469bccebec12ac4110292092d9f-1518180568714" ukl:CommentaryRef="key-e4ced469bccebec12ac4110292092d9f"><noteRef uk:name="commentary" href="#key-e4ced469bccebec12ac4110292092d9f" class="commentary"/>“recognised CSD” has the meaning given by section 285 of FSMA 2000;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800"><noteRef uk:name="commentary" href="#key-b9e412194e4da265b0119da8023c2800" class="commentary"/>“</ins><term refersTo="#term-recognised-dsa-service-provider"><ins ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">recognised DSA service provider</ins></term><ins class="last" ukl:ChangeId="key-b9e412194e4da265b0119da8023c2800-1695298792037" ukl:CommentaryRef="key-b9e412194e4da265b0119da8023c2800">” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;</ins> </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-f48949237bd2d22d9b0b209d30fe732f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” means <ins class="substitution first last" ukl:ChangeId="key-8f9732073e8954dc5d8b1e285fb57b83-1505817568316" ukl:CommentaryRef="key-8f9732073e8954dc5d8b1e285fb57b83"><noteRef uk:name="commentary" href="#key-8f9732073e8954dc5d8b1e285fb57b83" class="commentary"/>a</ins> 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;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to an infrastructure company falling within subsection (2)(a) of section 112, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system,</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to an infrastructure company falling within subsection (2)(b) of that section, the securities settlement system,</p></content></level><level class="para1"><num>(c)</num><content><p> <ins class="first last" ukl:ChangeId="key-5370fb0938994899cc6daf0c4f612839-1695298821606" ukl:CommentaryRef="key-5370fb0938994899cc6daf0c4f612839"><noteRef uk:name="commentary" href="#key-5370fb0938994899cc6daf0c4f612839" class="commentary"/>in relation to an infrastructure company falling within subsection (2)(ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,</ins> </p></content></level><level class="para1"><num>(d)</num><content><p>in relation to a company designated under subsection (4) of that section, the recognised <noteRef href="#key-c86ee75a220cc48838b52ccf41776fcc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system or securities settlement system falling within paragraph (b) of that subsection;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” means a computer-based system, and procedures, which enable title to units of a security to be evidenced and transferred without a written instrument, and which facilitate supplementary and incidental matters.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"><noteRef uk:name="commentary" href="#key-c3b43263dd55a8c8f7312dc6188c18fc" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section </ins><ref href="#"><ins ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc">206E</ins></ref><ins class="last" ukl:ChangeId="key-c3b43263dd55a8c8f7312dc6188c18fc-1695298852782" ukl:CommentaryRef="key-c3b43263dd55a8c8f7312dc6188c18fc"> of the Banking Act 2009.</ins> </p></content></hcontainer></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-2"><num>(2)</num><content><p>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.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-fmi-administration-orders"><heading><i>FMI administration orders</i></heading><section eId="section-114"><num>114</num><heading>FMI administration orders</heading><subsection eId="section-114-1"><num>(1)</num><intro><p>In this Part “<term refersTo="#term-fmi-administration-order" eId="term-fmi-administration-order">FMI administration order</term>” means an order which—</p></intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content><p>is made by the court in relation to an infrastructure company, and</p></content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content><p>A person appointed as mentioned in subsection (1)(b) is referred to in this Part as an FMI administrator.</p></content></subsection><subsection eId="section-114-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-115"><num>115</num><heading>Objective of FMI administration</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>Where an FMI administrator is appointed in relation to the operator of a recognised <noteRef href="#key-1a375e71247948fd7dd9d837c1ff75fc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system <ins class="first last" ukl:ChangeId="key-6b08701c137da209df6df0494269fe71-1695298993943" ukl:CommentaryRef="key-6b08701c137da209df6df0494269fe71"><noteRef uk:name="commentary" href="#key-6b08701c137da209df6df0494269fe71" class="commentary"/>, or a recognised DSA service provider,</ins> <noteRef href="#key-16cff4466bf740986cbac0114c01a5fb" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., the objective of the FMI administration is—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>to ensure that the system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299013526" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins> is and continues to be maintained and operated as an efficient and effective system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299030071" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins>,</p></content></level><level class="para1" eId="section-115-1-b"><num><noteRef href="#key-5e89436f2b8da3690b37b3ace492afd5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , and</p></content></level><level class="para1" eId="section-115-1-c"><num>(c)</num><content><p>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 <noteRef href="#key-5099ac511d1277250b834f06f2d9bf5b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>....</p></content></level></subsection><subsection eId="section-115-1A"><num><ins class="first" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7"><noteRef uk:name="commentary" href="#key-d035c9429968b576778e103fda141cf7" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">Where an FMI administrator is appointed in relation to a recognised CSD </ins><noteRef href="#key-88534898094cbea10a64dfd7600bd245" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">..., the objective of the FMI administration is—</ins></p></intro><level class="para1" eId="section-115-1A-a"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(a)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the system is and continues to be maintained and operated as an efficient and effective system,</ins></p></content></level><level class="para1" eId="section-115-1A-b"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(b)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the protected activities continue to be carried on, and</ins></p></content></level><level class="para1" eId="section-115-1A-c"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">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.</ins></p></content></level></subsection><subsection eId="section-115-1B"><num><ins class="first" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae"><noteRef uk:name="commentary" href="#key-4f9b59c364a59bc2f3e2913aa712f6ae" class="commentary"/>(1B)</ins></num><intro><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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—</ins></p></intro><level class="para1" eId="section-115-1B-a"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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</ins></p></content></level><level class="para1" eId="section-115-1B-b"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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.</ins></p></content></level></subsection><subsection eId="section-115-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-115-2-a"><num>(a)</num><content><p>to ensure that services falling within that subsection continue to be provided, and</p></content></level><level class="para1" eId="section-115-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The protected activities referred to in subsection <ins class="substitution first last" ukl:ChangeId="key-3ab775bc16449cb48a9c98013706f071-1518438274916" ukl:CommentaryRef="key-3ab775bc16449cb48a9c98013706f071"><noteRef uk:name="commentary" href="#key-3ab775bc16449cb48a9c98013706f071" class="commentary"/>(1A)(b)</ins> are such activities as the Bank of England may from time to time direct, which must be—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>regulated activities falling within section <ins class="substitution first last" ukl:ChangeId="key-c04122e32285d46c9bae4a3d0066282c-1518438378776" ukl:CommentaryRef="key-c04122e32285d46c9bae4a3d0066282c"><noteRef uk:name="commentary" href="#key-c04122e32285d46c9bae4a3d0066282c" class="commentary"/>285(3D)</ins> of FSMA 2000, or</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>related activities which are necessary for the efficient carrying on of any of those regulated activities.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>The specified means are—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the rescue as a going concern of the company subject to the FMI administration order, and</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>transfers falling within subsection (5).</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>A transfer falls within this subsection if it is a transfer as a going concern—</p></intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content><p>to another company, or</p></content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content><p>as respects different parts of the undertaking of the company subject to the FMI administration order, to two or more different companies,</p></content></level><wrapUp><p>of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the FMI administration.</p></wrapUp></subsection><subsection eId="section-115-6"><num>(6)</num><intro><p>The means by which transfers falling within subsection (5) may be effected include, in particular—</p></intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content><p>the transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).</p></content></level></subsection><subsection eId="section-115-7"><num>(7)</num><intro><p>The objective of the FMI administration may be achieved by transfers falling within subsection (5) only to the extent that—</p></intro><level class="para1" eId="section-115-7-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-115-7-b"><num>(b)</num><content><p>the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers, or</p></content></level><level class="para1" eId="section-115-7-c"><num>(c)</num><content><p>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.</p></content></level></subsection></section><section eId="section-116"><num>116</num><heading>Application for FMI administration order</heading><subsection eId="section-116-1"><num>(1)</num><content><p>An application for an FMI administration order may be made to the court by the Bank of England.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>An application must nominate a person to be appointed as the FMI administrator.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>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).</p></content></subsection></section><section eId="section-117"><num>117</num><heading>Powers of court</heading><subsection eId="section-117-1"><num>(1)</num><intro><p>The court may make an FMI administration order in relation to an infrastructure company if satisfied—</p></intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content><p>that the company is unable to pay its debts,</p></content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content><p>that the company is likely to be unable to pay its debts, or</p></content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><intro><p>On an application for an FMI administration order, the court may—</p></intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content><p>grant the application;</p></content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content><p>dismiss the application;</p></content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content><p>adjourn the application (generally or to a specified date);</p></content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content><p>make an interim order;</p></content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content><p>treat the application as a winding-up petition and make any order which the court could make under section 125 of the 1986 Act;</p></content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content><p>make any other order which the court thinks appropriate.</p></content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro><p>An interim order under subsection (3)(d) may, in particular—</p></intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content><p>restrict the exercise of a power of the company or of its directors;</p></content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content><p>make provision conferring a discretion on the court or on a person qualified to act as an insolvency practitioner in relation to the company.</p></content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content><p>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).</p></content></subsection></section><section eId="section-118"><num>118</num><heading>FMI administrators</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>The FMI administrator of a company—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>is an officer of the court, and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>in exercising and performing powers and duties in relation to the company, is the company's agent.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-118-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content><p>the interests of the company's creditors as a whole, and</p></content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content><p>subject to those interests, the interests of the company's members as a whole.</p></content></level></subsection></section><section eId="section-119"><num>119</num><heading>Continuity of supply</heading><subsection eId="section-119-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><intro><p>After the commencement of FMI administration, the supplier—</p></intro><level class="para1" eId="section-119-2-a"><num>(a)</num><intro><p>must not terminate a supply unless—</p></intro><level class="para2" eId="section-119-2-a-i"><num>(i)</num><content><p>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,</p></content></level><level class="para2" eId="section-119-2-a-ii"><num>(ii)</num><content><p>the FMI administrator consents to the termination, or</p></content></level><level class="para2" eId="section-119-2-a-iii"><num>(iii)</num><content><p>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,</p></content></level></level><level class="para1" eId="section-119-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-119-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-119-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-119-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-119-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-119-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-commencement-of-fmi-administration" eId="term-commencement-of-fmi-administration">commencement of FMI administration</term>” means the making of the FMI administration order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-supplier" eId="term-supplier">supplier</term>” means the person controlling the provision of a supply to the infrastructure company, and includes a company that is a group undertaking (as defined by section 1161(5) of the Companies Act 2006) in respect of the infrastructure company;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-supply" eId="term-supply">supply</term>” means a supply of any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>computer hardware or software used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(b)</num><content><p> <ins class="first last" ukl:ChangeId="key-2fc666c857cd677dda52431d484e3408-1695299399800" ukl:CommentaryRef="key-2fc666c857cd677dda52431d484e3408"><noteRef uk:name="commentary" href="#key-2fc666c857cd677dda52431d484e3408" class="commentary"/>in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods or services used by the person in connection with wholesale cash distribution activities;</ins> </p></content></level><level class="para1"><num>(c)</num><content><p>financial data;</p></content></level><level class="para1"><num>(d)</num><content><p>infrastructure permitting electronic communication services;</p></content></level><level class="para1"><num>(e)</num><content><p>data processing;</p></content></level><level class="para1"><num>(f)</num><content><p>access to secure data networks used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(g)</num><content><p>staff.</p></content></level></hcontainer></subsection></section><section eId="section-120"><num>120</num><heading>Power to direct FMI administrator</heading><subsection eId="section-120-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-120-2"><num>(2)</num><intro><p>In deciding whether to give a direction under this section, the Bank of England must have regard to the public interest in—</p></intro><level class="para1" eId="section-120-2-a"><num>(a)</num><content><p>the protection and enhancement of the stability of the financial system of the United Kingdom, and</p></content></level><level class="para1" eId="section-120-2-b"><num>(b)</num><content><p>the maintenance of public confidence in that system.</p></content></level></subsection><subsection eId="section-120-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-120-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><intro><p>Those persons are—</p></intro><level class="para1" eId="section-120-6-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-120-6-b"><num>(b)</num><content><p>the company in FMI administration;</p></content></level><level class="para1" eId="section-120-6-c"><num>(c)</num><content><p>the officers or staff of the company.</p></content></level></subsection><subsection eId="section-120-7"><num>(7)</num><intro><p>Immunity conferred by this section does not extend to action or inaction—</p></intro><level class="para1" eId="section-120-7-a"><num>(a)</num><content><p>in bad faith, or</p></content></level><level class="para1" eId="section-120-7-b"><num>(b)</num><content><p>in contravention of section 6(1) of the Human Rights Act 1998.</p></content></level></subsection><subsection eId="section-120-8"><num>(8)</num><content><p>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 <noteRef href="#key-45ee4c3a60854606ceded48dc44b13a2" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment system <ins class="first" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"><noteRef uk:name="commentary" href="#key-6d8a1e84978ae1fa701ba104fb169681" class="commentary"/>or section </ins><ref href="#"><ins ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681">206M</ins></ref><ins class="last" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"> of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act</ins>.</p></content></subsection></section><section eId="section-121"><num>121</num><heading>Conduct of administration, transfer schemes <abbr title="et cetera" xml:lang="la">etc.</abbr></heading><subsection eId="section-121-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>Schedule 7 (which makes provision for transfer schemes to achieve the objective of an FMI administration) has effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p>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).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114"><num>114</num><heading>FMI administration orders</heading><subsection eId="section-114-1"><num>(1)</num><intro><p>In this Part “<term refersTo="#term-fmi-administration-order" eId="term-fmi-administration-order">FMI administration order</term>” means an order which—</p></intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content><p>is made by the court in relation to an infrastructure company, and</p></content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content><p>A person appointed as mentioned in subsection (1)(b) is referred to in this Part as an FMI administrator.</p></content></subsection><subsection eId="section-114-3"><num>(3)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-1"><num>(1)</num><intro><p>In this Part “<term refersTo="#term-fmi-administration-order" eId="term-fmi-administration-order">FMI administration order</term>” means an order which—</p></intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content><p>is made by the court in relation to an infrastructure company, and</p></content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-114-1-a"><num>(a)</num><content><p>is made by the court in relation to an infrastructure company, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-114-1-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-2"><num>(2)</num><content><p>A person appointed as mentioned in subsection (1)(b) is referred to in this Part as an FMI administrator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-3"><num>(3)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-115"><num>115</num><heading>Objective of FMI administration</heading><subsection eId="section-115-1"><num>(1)</num><intro><p>Where an FMI administrator is appointed in relation to the operator of a recognised <noteRef href="#key-1a375e71247948fd7dd9d837c1ff75fc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system <ins class="first last" ukl:ChangeId="key-6b08701c137da209df6df0494269fe71-1695298993943" ukl:CommentaryRef="key-6b08701c137da209df6df0494269fe71"><noteRef uk:name="commentary" href="#key-6b08701c137da209df6df0494269fe71" class="commentary"/>, or a recognised DSA service provider,</ins> <noteRef href="#key-16cff4466bf740986cbac0114c01a5fb" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., the objective of the FMI administration is—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>to ensure that the system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299013526" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins> is and continues to be maintained and operated as an efficient and effective system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299030071" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins>,</p></content></level><level class="para1" eId="section-115-1-b"><num><noteRef href="#key-5e89436f2b8da3690b37b3ace492afd5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , and</p></content></level><level class="para1" eId="section-115-1-c"><num>(c)</num><content><p>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 <noteRef href="#key-5099ac511d1277250b834f06f2d9bf5b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>....</p></content></level></subsection><subsection eId="section-115-1A"><num><ins class="first" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7"><noteRef uk:name="commentary" href="#key-d035c9429968b576778e103fda141cf7" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">Where an FMI administrator is appointed in relation to a recognised CSD </ins><noteRef href="#key-88534898094cbea10a64dfd7600bd245" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">..., the objective of the FMI administration is—</ins></p></intro><level class="para1" eId="section-115-1A-a"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(a)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the system is and continues to be maintained and operated as an efficient and effective system,</ins></p></content></level><level class="para1" eId="section-115-1A-b"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(b)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the protected activities continue to be carried on, and</ins></p></content></level><level class="para1" eId="section-115-1A-c"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">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.</ins></p></content></level></subsection><subsection eId="section-115-1B"><num><ins class="first" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae"><noteRef uk:name="commentary" href="#key-4f9b59c364a59bc2f3e2913aa712f6ae" class="commentary"/>(1B)</ins></num><intro><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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—</ins></p></intro><level class="para1" eId="section-115-1B-a"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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</ins></p></content></level><level class="para1" eId="section-115-1B-b"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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.</ins></p></content></level></subsection><subsection eId="section-115-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-115-2-a"><num>(a)</num><content><p>to ensure that services falling within that subsection continue to be provided, and</p></content></level><level class="para1" eId="section-115-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-115-3"><num>(3)</num><intro><p>The protected activities referred to in subsection <ins class="substitution first last" ukl:ChangeId="key-3ab775bc16449cb48a9c98013706f071-1518438274916" ukl:CommentaryRef="key-3ab775bc16449cb48a9c98013706f071"><noteRef uk:name="commentary" href="#key-3ab775bc16449cb48a9c98013706f071" class="commentary"/>(1A)(b)</ins> are such activities as the Bank of England may from time to time direct, which must be—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>regulated activities falling within section <ins class="substitution first last" ukl:ChangeId="key-c04122e32285d46c9bae4a3d0066282c-1518438378776" ukl:CommentaryRef="key-c04122e32285d46c9bae4a3d0066282c"><noteRef uk:name="commentary" href="#key-c04122e32285d46c9bae4a3d0066282c" class="commentary"/>285(3D)</ins> of FSMA 2000, or</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>related activities which are necessary for the efficient carrying on of any of those regulated activities.</p></content></level></subsection><subsection eId="section-115-4"><num>(4)</num><intro><p>The specified means are—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the rescue as a going concern of the company subject to the FMI administration order, and</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>transfers falling within subsection (5).</p></content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro><p>A transfer falls within this subsection if it is a transfer as a going concern—</p></intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content><p>to another company, or</p></content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content><p>as respects different parts of the undertaking of the company subject to the FMI administration order, to two or more different companies,</p></content></level><wrapUp><p>of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the FMI administration.</p></wrapUp></subsection><subsection eId="section-115-6"><num>(6)</num><intro><p>The means by which transfers falling within subsection (5) may be effected include, in particular—</p></intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content><p>the transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).</p></content></level></subsection><subsection eId="section-115-7"><num>(7)</num><intro><p>The objective of the FMI administration may be achieved by transfers falling within subsection (5) only to the extent that—</p></intro><level class="para1" eId="section-115-7-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-115-7-b"><num>(b)</num><content><p>the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers, or</p></content></level><level class="para1" eId="section-115-7-c"><num>(c)</num><content><p>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.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-115-1"><num>(1)</num><intro><p>Where an FMI administrator is appointed in relation to the operator of a recognised <noteRef href="#key-1a375e71247948fd7dd9d837c1ff75fc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system <ins class="first last" ukl:ChangeId="key-6b08701c137da209df6df0494269fe71-1695298993943" ukl:CommentaryRef="key-6b08701c137da209df6df0494269fe71"><noteRef uk:name="commentary" href="#key-6b08701c137da209df6df0494269fe71" class="commentary"/>, or a recognised DSA service provider,</ins> <noteRef href="#key-16cff4466bf740986cbac0114c01a5fb" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., the objective of the FMI administration is—</p></intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content><p>to ensure that the system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299013526" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins> is and continues to be maintained and operated as an efficient and effective system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299030071" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins>,</p></content></level><level class="para1" eId="section-115-1-b"><num><noteRef href="#key-5e89436f2b8da3690b37b3ace492afd5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , and</p></content></level><level class="para1" eId="section-115-1-c"><num>(c)</num><content><p>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 <noteRef href="#key-5099ac511d1277250b834f06f2d9bf5b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>....</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-115-1-a"><num>(a)</num><content><p>to ensure that the system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299013526" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins> is and continues to be maintained and operated as an efficient and effective system <ins class="first last" ukl:ChangeId="key-ac037ccd1c6b3be2ff72845103c0c939-1695299030071" ukl:CommentaryRef="key-ac037ccd1c6b3be2ff72845103c0c939"><noteRef uk:name="commentary" href="#key-ac037ccd1c6b3be2ff72845103c0c939" class="commentary"/>or provider</ins>,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1-b"><num><noteRef href="#key-5e89436f2b8da3690b37b3ace492afd5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1-c"><num>(c)</num><content><p>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 <noteRef href="#key-5099ac511d1277250b834f06f2d9bf5b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>....</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="section-115-2-a"><num>(a)</num><content><p>to ensure that services falling within that subsection continue to be provided, and</p></content></level><level class="para1" eId="section-115-2-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-2-a"><num>(a)</num><content><p>to ensure that services falling within that subsection continue to be provided, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-2-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-115-1A"><num><ins class="first" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7"><noteRef uk:name="commentary" href="#key-d035c9429968b576778e103fda141cf7" class="commentary"/>(1A)</ins></num><intro><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">Where an FMI administrator is appointed in relation to a recognised CSD </ins><noteRef href="#key-88534898094cbea10a64dfd7600bd245" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">..., the objective of the FMI administration is—</ins></p></intro><level class="para1" eId="section-115-1A-a"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(a)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the system is and continues to be maintained and operated as an efficient and effective system,</ins></p></content></level><level class="para1" eId="section-115-1A-b"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(b)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the protected activities continue to be carried on, and</ins></p></content></level><level class="para1" eId="section-115-1A-c"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">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.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1A-a"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(a)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the system is and continues to be maintained and operated as an efficient and effective system,</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1A-b"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(b)</ins></num><content><p><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">to ensure that the protected activities continue to be carried on, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1A-c"><num><ins ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d035c9429968b576778e103fda141cf7-1518438182715" ukl:CommentaryRef="key-d035c9429968b576778e103fda141cf7">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.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-115-3"><num>(3)</num><intro><p>The protected activities referred to in subsection <ins class="substitution first last" ukl:ChangeId="key-3ab775bc16449cb48a9c98013706f071-1518438274916" ukl:CommentaryRef="key-3ab775bc16449cb48a9c98013706f071"><noteRef uk:name="commentary" href="#key-3ab775bc16449cb48a9c98013706f071" class="commentary"/>(1A)(b)</ins> are such activities as the Bank of England may from time to time direct, which must be—</p></intro><level class="para1" eId="section-115-3-a"><num>(a)</num><content><p>regulated activities falling within section <ins class="substitution first last" ukl:ChangeId="key-c04122e32285d46c9bae4a3d0066282c-1518438378776" ukl:CommentaryRef="key-c04122e32285d46c9bae4a3d0066282c"><noteRef uk:name="commentary" href="#key-c04122e32285d46c9bae4a3d0066282c" class="commentary"/>285(3D)</ins> of FSMA 2000, or</p></content></level><level class="para1" eId="section-115-3-b"><num>(b)</num><content><p>related activities which are necessary for the efficient carrying on of any of those regulated activities.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-115-3-a"><num>(a)</num><content><p>regulated activities falling within section <ins class="substitution first last" ukl:ChangeId="key-c04122e32285d46c9bae4a3d0066282c-1518438378776" ukl:CommentaryRef="key-c04122e32285d46c9bae4a3d0066282c"><noteRef uk:name="commentary" href="#key-c04122e32285d46c9bae4a3d0066282c" class="commentary"/>285(3D)</ins> of FSMA 2000, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-3-b"><num>(b)</num><content><p>related activities which are necessary for the efficient carrying on of any of those regulated activities.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-115-1B"><num><ins class="first" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae"><noteRef uk:name="commentary" href="#key-4f9b59c364a59bc2f3e2913aa712f6ae" class="commentary"/>(1B)</ins></num><intro><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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—</ins></p></intro><level class="para1" eId="section-115-1B-a"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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</ins></p></content></level><level class="para1" eId="section-115-1B-b"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1B-a"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(a)</ins></num><content><p><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-115-1B-b"><num><ins ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">(b)</ins></num><content><p><ins class="last" ukl:ChangeId="key-4f9b59c364a59bc2f3e2913aa712f6ae-1695298965338" ukl:CommentaryRef="key-4f9b59c364a59bc2f3e2913aa712f6ae">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.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-4"><num>(4)</num><intro><p>The specified means are—</p></intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the rescue as a going concern of the company subject to the FMI administration order, and</p></content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content><p>transfers falling within subsection (5).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-4-a"><num>(a)</num><content><p>the rescue as a going concern of the company subject to the FMI administration order, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-4-b"><num>(b)</num><content><p>transfers falling within subsection (5).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-5"><num>(5)</num><intro><p>A transfer falls within this subsection if it is a transfer as a going concern—</p></intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content><p>to another company, or</p></content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content><p>as respects different parts of the undertaking of the company subject to the FMI administration order, to two or more different companies,</p></content></level><wrapUp><p>of so much of that undertaking as it is appropriate to transfer for the purpose of achieving the objective of the FMI administration.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-5-a"><num>(a)</num><content><p>to another company, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-5-b"><num>(b)</num><content><p>as respects different parts of the undertaking of the company subject to the FMI administration order, to two or more different companies,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-6"><num>(6)</num><intro><p>The means by which transfers falling within subsection (5) may be effected include, in particular—</p></intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content><p>the transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-6-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-6-b"><num>(b)</num><content><p>the transfer to a company of securities of a wholly-owned subsidiary to which there has been a transfer falling within paragraph (a).</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-7"><num>(7)</num><intro><p>The objective of the FMI administration may be achieved by transfers falling within subsection (5) only to the extent that—</p></intro><level class="para1" eId="section-115-7-a"><num>(a)</num><content><p>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,</p></content></level><level class="para1" eId="section-115-7-b"><num>(b)</num><content><p>the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers, or</p></content></level><level class="para1" eId="section-115-7-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-7-a"><num>(a)</num><content><p>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,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-7-b"><num>(b)</num><content><p>the rescue of that company as a going concern will not achieve that objective or will not do so without such transfers, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-115-7-c"><num>(c)</num><content><p>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.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116"><num>116</num><heading>Application for FMI administration order</heading><subsection eId="section-116-1"><num>(1)</num><content><p>An application for an FMI administration order may be made to the court by the Bank of England.</p></content></subsection><subsection eId="section-116-2"><num>(2)</num><content><p>An application must nominate a person to be appointed as the FMI administrator.</p></content></subsection><subsection eId="section-116-3"><num>(3)</num><content><p>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).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-1"><num>(1)</num><content><p>An application for an FMI administration order may be made to the court by the Bank of England.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-2"><num>(2)</num><content><p>An application must nominate a person to be appointed as the FMI administrator.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-3"><num>(3)</num><content><p>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).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117"><num>117</num><heading>Powers of court</heading><subsection eId="section-117-1"><num>(1)</num><intro><p>The court may make an FMI administration order in relation to an infrastructure company if satisfied—</p></intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content><p>that the company is unable to pay its debts,</p></content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content><p>that the company is likely to be unable to pay its debts, or</p></content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-117-3"><num>(3)</num><intro><p>On an application for an FMI administration order, the court may—</p></intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content><p>grant the application;</p></content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content><p>dismiss the application;</p></content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content><p>adjourn the application (generally or to a specified date);</p></content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content><p>make an interim order;</p></content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content><p>treat the application as a winding-up petition and make any order which the court could make under section 125 of the 1986 Act;</p></content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content><p>make any other order which the court thinks appropriate.</p></content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro><p>An interim order under subsection (3)(d) may, in particular—</p></intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content><p>restrict the exercise of a power of the company or of its directors;</p></content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content><p>make provision conferring a discretion on the court or on a person qualified to act as an insolvency practitioner in relation to the company.</p></content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content><p>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).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-1"><num>(1)</num><intro><p>The court may make an FMI administration order in relation to an infrastructure company if satisfied—</p></intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content><p>that the company is unable to pay its debts,</p></content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content><p>that the company is likely to be unable to pay its debts, or</p></content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-1-a"><num>(a)</num><content><p>that the company is unable to pay its debts,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-1-b"><num>(b)</num><content><p>that the company is likely to be unable to pay its debts, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-1-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-3"><num>(3)</num><intro><p>On an application for an FMI administration order, the court may—</p></intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content><p>grant the application;</p></content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content><p>dismiss the application;</p></content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content><p>adjourn the application (generally or to a specified date);</p></content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content><p>make an interim order;</p></content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content><p>treat the application as a winding-up petition and make any order which the court could make under section 125 of the 1986 Act;</p></content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content><p>make any other order which the court thinks appropriate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-3-a"><num>(a)</num><content><p>grant the application;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-3-b"><num>(b)</num><content><p>dismiss the application;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-3-c"><num>(c)</num><content><p>adjourn the application (generally or to a specified date);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-3-d"><num>(d)</num><content><p>make an interim order;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-3-e"><num>(e)</num><content><p>treat the application as a winding-up petition and make any order which the court could make under section 125 of the 1986 Act;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-3-f"><num>(f)</num><content><p>make any other order which the court thinks appropriate.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-4"><num>(4)</num><intro><p>An interim order under subsection (3)(d) may, in particular—</p></intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content><p>restrict the exercise of a power of the company or of its directors;</p></content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content><p>make provision conferring a discretion on the court or on a person qualified to act as an insolvency practitioner in relation to the company.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-4-a"><num>(a)</num><content><p>restrict the exercise of a power of the company or of its directors;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-117-4-b"><num>(b)</num><content><p>make provision conferring a discretion on the court or on a person qualified to act as an insolvency practitioner in relation to the company.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-5"><num>(5)</num><content><p>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).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118"><num>118</num><heading>FMI administrators</heading><subsection eId="section-118-1"><num>(1)</num><intro><p>The FMI administrator of a company—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>is an officer of the court, and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>in exercising and performing powers and duties in relation to the company, is the company's agent.</p></content></level></subsection><subsection eId="section-118-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-118-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content><p>the interests of the company's creditors as a whole, and</p></content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content><p>subject to those interests, the interests of the company's members as a whole.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-1"><num>(1)</num><intro><p>The FMI administrator of a company—</p></intro><level class="para1" eId="section-118-1-a"><num>(a)</num><content><p>is an officer of the court, and</p></content></level><level class="para1" eId="section-118-1-b"><num>(b)</num><content><p>in exercising and performing powers and duties in relation to the company, is the company's agent.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-1-a"><num>(a)</num><content><p>is an officer of the court, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-1-b"><num>(b)</num><content><p>in exercising and performing powers and duties in relation to the company, is the company's agent.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content><p>the interests of the company's creditors as a whole, and</p></content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content><p>subject to those interests, the interests of the company's members as a whole.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-3-a"><num>(a)</num><content><p>the interests of the company's creditors as a whole, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-3-b"><num>(b)</num><content><p>subject to those interests, the interests of the company's members as a whole.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-119"><num>119</num><heading>Continuity of supply</heading><subsection eId="section-119-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-119-2"><num>(2)</num><intro><p>After the commencement of FMI administration, the supplier—</p></intro><level class="para1" eId="section-119-2-a"><num>(a)</num><intro><p>must not terminate a supply unless—</p></intro><level class="para2" eId="section-119-2-a-i"><num>(i)</num><content><p>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,</p></content></level><level class="para2" eId="section-119-2-a-ii"><num>(ii)</num><content><p>the FMI administrator consents to the termination, or</p></content></level><level class="para2" eId="section-119-2-a-iii"><num>(iii)</num><content><p>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,</p></content></level></level><level class="para1" eId="section-119-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-119-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection><subsection eId="section-119-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-119-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-119-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-119-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-commencement-of-fmi-administration" eId="term-commencement-of-fmi-administration">commencement of FMI administration</term>” means the making of the FMI administration order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-supplier" eId="term-supplier">supplier</term>” means the person controlling the provision of a supply to the infrastructure company, and includes a company that is a group undertaking (as defined by section 1161(5) of the Companies Act 2006) in respect of the infrastructure company;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-supply" eId="term-supply">supply</term>” means a supply of any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>computer hardware or software used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(b)</num><content><p> <ins class="first last" ukl:ChangeId="key-2fc666c857cd677dda52431d484e3408-1695299399800" ukl:CommentaryRef="key-2fc666c857cd677dda52431d484e3408"><noteRef uk:name="commentary" href="#key-2fc666c857cd677dda52431d484e3408" class="commentary"/>in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods or services used by the person in connection with wholesale cash distribution activities;</ins> </p></content></level><level class="para1"><num>(c)</num><content><p>financial data;</p></content></level><level class="para1"><num>(d)</num><content><p>infrastructure permitting electronic communication services;</p></content></level><level class="para1"><num>(e)</num><content><p>data processing;</p></content></level><level class="para1"><num>(f)</num><content><p>access to secure data networks used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(g)</num><content><p>staff.</p></content></level></hcontainer></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-2"><num>(2)</num><intro><p>After the commencement of FMI administration, the supplier—</p></intro><level class="para1" eId="section-119-2-a"><num>(a)</num><intro><p>must not terminate a supply unless—</p></intro><level class="para2" eId="section-119-2-a-i"><num>(i)</num><content><p>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,</p></content></level><level class="para2" eId="section-119-2-a-ii"><num>(ii)</num><content><p>the FMI administrator consents to the termination, or</p></content></level><level class="para2" eId="section-119-2-a-iii"><num>(iii)</num><content><p>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,</p></content></level></level><level class="para1" eId="section-119-2-b"><num>(b)</num><content><p>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</p></content></level><level class="para1" eId="section-119-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-2-a"><num>(a)</num><intro><p>must not terminate a supply unless—</p></intro><level class="para2" eId="section-119-2-a-i"><num>(i)</num><content><p>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,</p></content></level><level class="para2" eId="section-119-2-a-ii"><num>(ii)</num><content><p>the FMI administrator consents to the termination, or</p></content></level><level class="para2" eId="section-119-2-a-iii"><num>(iii)</num><content><p>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,</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-119-2-a-i"><num>(i)</num><content><p>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,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-119-2-a-ii"><num>(ii)</num><content><p>the FMI administrator consents to the termination, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-119-2-a-iii"><num>(iii)</num><content><p>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,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-2-b"><num>(b)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-2-c"><num>(c)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-119-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-commencement-of-fmi-administration" eId="term-commencement-of-fmi-administration">commencement of FMI administration</term>” means the making of the FMI administration order;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-supplier" eId="term-supplier">supplier</term>” means the person controlling the provision of a supply to the infrastructure company, and includes a company that is a group undertaking (as defined by section 1161(5) of the Companies Act 2006) in respect of the infrastructure company;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-supply" eId="term-supply">supply</term>” means a supply of any of the following—</p></intro><level class="para1"><num>(a)</num><content><p>computer hardware or software used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(b)</num><content><p> <ins class="first last" ukl:ChangeId="key-2fc666c857cd677dda52431d484e3408-1695299399800" ukl:CommentaryRef="key-2fc666c857cd677dda52431d484e3408"><noteRef uk:name="commentary" href="#key-2fc666c857cd677dda52431d484e3408" class="commentary"/>in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods or services used by the person in connection with wholesale cash distribution activities;</ins> </p></content></level><level class="para1"><num>(c)</num><content><p>financial data;</p></content></level><level class="para1"><num>(d)</num><content><p>infrastructure permitting electronic communication services;</p></content></level><level class="para1"><num>(e)</num><content><p>data processing;</p></content></level><level class="para1"><num>(f)</num><content><p>access to secure data networks used by the infrastructure company in connection with the operation of the relevant system;</p></content></level><level class="para1"><num>(g)</num><content><p>staff.</p></content></level></hcontainer></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“<term refersTo="#term-payment-system" eId="term-payment-system">payment system</term>” has the meaning given by section 41;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After section 48A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Bail-in option</i></heading><section><num>48B</num><heading>Special bail-in provision</heading><subsection><num>(1)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, means any of the following (or any combination of the following)—</p></intro><level class="para1"><num>(a)</num><content><p>provision cancelling a liability owed by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provision modifying, or changing the form of, a liability owed by the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that a contract under which the bank has a liability is to have effect as if a specified right had been exercised under it.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, also includes any associated provision (see subsection (3)) that the Bank of England may think it appropriate to make in consequence of any provision under subsection (1) that—</p></intro><level class="para1"><num>(a)</num><content><p>is made in the same resolution instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>has been made in another resolution instrument in respect of the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-associated-provision">Associated provision</term>” means provision cancelling or modifying a contract under which a banking group company has a liability.</p></content></subsection><subsection><num>(4)</num><intro><p>A power to make special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>may be exercised only for the purpose of, or in connection with, reducing, deferring or cancelling a liability of the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>may not be exercised so as to affect any excluded liability.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The following rules apply to the interpretation of subsection (1).</p></intro><level class="para1"><num>1</num><content><p>The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability.</p></content></level><level class="para1"><num>2</num><content><p>The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability.</p></content></level><level class="para1"><num>3</num><intro><p>The reference to changing the form of a liability owed by the bank, includes, for example—</p></intro><level class="para2"><num>(a)</num><content><p>converting an instrument under which the bank owes a liability from one form or class to another,</p></content></level><level class="para2"><num>(b)</num><content><p>replacing such an instrument with another instrument of a different form or class, or</p></content></level><level class="para2"><num>(c)</num><content><p>creating a new security (of any form or class) in connection with the modification of such an instrument.</p></content></level></level></subsection><subsection><num>(6)</num><intro><p>Examples of special bail-in provision include—</p></intro><level class="para1"><num>(a)</num><content><p>provision that transactions or events of any specified kind have or do not have (directly or indirectly) specified consequences or are to be treated in a specified manner for specified purposes;</p></content></level><level class="para1"><num>(b)</num><content><p>provision discharging persons from further performance of obligations under a contract and dealing with the consequences of persons being so discharged.</p></content></level></subsection><subsection><num>(7)</num><content><p>The form and class of the instrument (“the resulting instrument”) into which an instrument is converted, or with which it is replaced, do not matter for the purposes of paragraphs (a) and (b) of rule 3 in subsection (5); for instance, the resulting instrument may (if it is a security) fall within Class 1 or any other Class in section 14.</p></content></subsection><subsection><num>(8)</num><intro><p>The following liabilities of the bank are “excluded liabilities”—</p></intro><level class="para1"><num>(a)</num><content><p>liabilities representing protected deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>any liability, so far as it is secured;</p></content></level><level class="para1"><num>(c)</num><content><p>liabilities that the bank has by virtue of holding client assets;</p></content></level><level class="para1"><num>(d)</num><content><p>liabilities with an original maturity of less than 7 days owed by the bank to a credit institution or investment firm;</p></content></level><level class="para1"><num>(e)</num><content><p>liabilities arising from participation in designated settlement systems and owed to such systems or to operators of, or participants in, such systems;</p></content></level><level class="para1"><num>(f)</num><content><p>liabilities owed to central counterparties recognised by the European Securities and Markets Authority in accordance with Article 25 of Regulation (EU) 648/2012 of the European Parliament and the Council;</p></content></level><level class="para1"><num>(g)</num><content><p>liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration;</p></content></level><level class="para1"><num>(h)</num><content><p>liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits;</p></content></level><level class="para1"><num>(i)</num><content><p>liabilities owed to creditors arising from the provision to the bank of goods or services (other than financial services) that are critical to the daily functioning of the bank's operations.</p></content></level></subsection><subsection><num>(9)</num><intro><p>The following special rules apply in cases involving banking group companies—</p></intro><level class="para1"><num>(a)</num><content><p>a liability mentioned in subsection (8)(d) is not an excluded liability if the credit institution or investment firm to which the liability is owed is a banking group company in relation to the bank (see section 81D);</p></content></level><level class="para1"><num>(b)</num><content><p>in subsection (8)(i) the reference to creditors does not include companies which are banking group companies in relation to the bank.</p></content></level></subsection></section><section><num>48C</num><heading>Meaning of “protected deposit”</heading><subsection><num>(1)</num><content><p>A deposit is “protected” so far as it is covered by the Financial Services Compensation Scheme.</p></content></subsection><subsection><num>(2)</num><intro><p>A deposit is “protected” so far as it is covered by a scheme which—</p></intro><level class="para1"><num>(a)</num><content><p>operates outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is comparable to the Financial Services Compensation Scheme.</p></content></level></subsection><subsection><num>(3)</num><content><p>If one or both of subsections (1) and (2) apply to a deposit, the amount of the deposit “protected” is the highest amount which results from either of those subsections.</p></content></subsection><subsection><num>(4)</num><content><p>In subsections (1) and (2) and section 48B(8)(a), “<term refersTo="#term-deposit">deposit</term>” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544), but ignoring the exclusions in article 6.</p></content></subsection></section><section><num>48D</num><heading>General interpretation of section 48B</heading><subsection><num>(1)</num><intro><p>In section 48B—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-client-assets">client assets</term>” means assets which the bank has undertaken to hold on trust for, or on behalf of, a client;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-contract">contract</term>” includes any instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-credit-institution">credit institution</term>” means any credit institution as defined in Article 4.1(1) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council, other than an entity mentioned in Article 2.5(2) to (23) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-settlement-system">designated settlement system</term>” means a system designated in accordance with Directive <ref eId="c00004" href="http://www.legislation.gov.uk/european/directive/1998/0026">98/26/<abbr class="acronym" title="European Community">EC</abbr></ref> of the European Parliament and of the Council (as amended by Directives <ref eId="c00005" href="http://www.legislation.gov.uk/european/directive/2009/0044">2009/44/<abbr class="acronym" title="European Community">EC</abbr></ref> and 2010/78/<abbr class="acronym" title="European Union">EU</abbr>);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-employee">employee</term>” includes the holder of an office;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investment-firm">investment firm</term>” means an investment firm as defined in Article 4.1(2) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council that is subject to the initial capital requirement specified in Article 28(2) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pension-scheme">pension scheme</term>” includes any arrangement for the payment of pensions, allowances and gratuities;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-secured">secured</term>” means secured against property or rights, or otherwise covered by collateral arrangements.</p></content></hcontainer></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-assets">assets</term>” has the same meaning as in section 232(4) (ignoring for these purposes section 232(5A)(b));</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-collateral-arrangements">collateral arrangements</term>” includes arrangements which are title transfer collateral arrangements for the purposes of section 48.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of section 48B(8)(h), a benefit under a pension scheme is discretionary so far as the employee's right to the benefit resulted from the exercise of a discretion.</p></content></subsection></section><section><num>48E</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a resolution instrument containing special bail-in provision (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the resolution instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section><section><num>48F</num><heading>Power to amend definition of “excluded liabilities”</heading><subsection><num>(1)</num><intro><p>The Treasury may by order amend section 48B(8) by—</p></intro><level class="para1"><num>(a)</num><content><p>adding to the list of excluded liabilities;</p></content></level><level class="para1"><num>(b)</num><content><p>amending or omitting any paragraph of that subsection, other than paragraphs (a) to (c).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury may by order amend section 48C or 48D.</p></content></subsection><subsection><num>(3)</num><content><p>The powers conferred by subsections (1) and (2) include power to make consequential and transitional provision.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury must consult before laying a draft order under this section before Parliament.</p></content></subsection></section><section><num>48G</num><heading>Priority between creditors</heading><subsection><num>(1)</num><content><p>The Treasury may, for the purpose of ensuring that the treatment of liabilities in any instrument that contains special bail-in provision is aligned to an appropriate degree with the treatment of liabilities on an insolvency, by order specify matters or principles to which the Bank of England is to be required to have regard in making any such instrument.</p></content></subsection><subsection><num>(2)</num><content><p>An order may, for example, specify the insolvency treatment principles (as defined in section 48E(4)) or alternative principles.</p></content></subsection><subsection><num>(3)</num><content><p>An order may specify the meaning of “insolvency” for one or more purposes of the order.</p></content></subsection><subsection><num>(4)</num><content><p>An order may amend sections 44C(4) and 48E(4).</p></content></subsection><subsection><num>(5)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48H</num><heading>Business reorganisation plans</heading><subsection><num>(1)</num><intro><p>A resolution instrument may require a bail-in administrator, or one or more directors of the bank, to—</p></intro><level class="para1"><num>(a)</num><content><p>draw up a business reorganisation plan with respect to the bank, and</p></content></level><level class="para1"><num>(b)</num><content><p>submit it to the Bank of England within the period allowed by (or under) the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-business-reorganisation-plan">Business reorganisation plan</term>” means a plan that includes—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the factors that caused Condition 1 in section 7 to be met in the case of the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>a description of the measures to be adopted with a view to restoring the viability of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>a timetable for the implementation of those measures.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where a person has submitted a business reorganisation plan to the Bank of England under subsection (1) (or has re-submitted a plan under subsection (4)), the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must approve the plan if satisfied that the plan is appropriately designed for meeting the objective mentioned in subsection (2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>must otherwise require the person to amend the plan in a specified manner.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the Bank of England has required a person to amend a business re-organisation plan, the person must re-submit the amended plan within the period allowed by (or under) the resolution instrument.</p></content></subsection><subsection><num>(5)</num><intro><p>Before deciding what action to take under subsection (3) the Bank of England must (for each submission or re-submission of a plan) consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>A business reorganisation plan may include recommendations by the person submitting the plan as to the exercise by the Bank of England of any of its powers under this Part in relation to the bank.</p></content></subsection><subsection><num>(7)</num><intro><p>Where a resolution instrument contains provision under subsection (1), the instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>specify further matters (in addition to those mentioned in subsection (2)) that must be dealt with in the business reorganisation plan;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about the timing of actions to be taken in connection with the making and approval of the plan;</p></content></level><level class="para1"><num>(c)</num><content><p>enable any provision that the Bank of England has power under paragraph (a) or (b) to make in the instrument to be made instead in an agreement between the Bank of England and the person required to draw up the business reorganisation plan.</p></content></level></subsection><subsection><num>(8)</num><content><p>For the purposes of subsection (2)(b) the viability of a bank is to be assessed by reference to whether the bank satisfies, and (if so) for how long it may be expected to continue to satisfy, the threshold conditions (as defined in section 55B of the Financial Services and Markets Act 2000).</p></content></subsection></section><section><num>48I</num><heading>Bail-in administrator: further functions</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise a bail-in administrator to manage the bank's business (or confer on a bail-in administrator any other power with respect to the management of the bank's business);</p></content></level><level class="para1"><num>(b)</num><content><p>authorise a bail-in administrator to exercise any other powers of the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>confer on a bail-in administrator any other power the Bank of England may consider appropriate;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that the exercise of any power conferred by the instrument in accordance with this section is to be subject to conditions specified in the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may require a bail-in administrator to make reports to the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>on any matter specified in the instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>at the times or intervals specified in the instrument.</p></content></level></subsection><subsection><num>(3)</num><content><p>If a resolution instrument specifies a matter in accordance with subsection (2)(a), it may provide for further requirements as to the contents of the report on that matter to be specified in an agreement between the Bank of England and the bail-in administrator.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require a bail-in administrator to consult specified persons before exercising specified functions (and may specify particular matters on which the specified person must be consulted);</p></content></level><level class="para1"><num>(b)</num><content><p>provide that a bail-in administrator is not to exercise specified functions without the consent of a specified person.</p></content></level></subsection></section><section><num>48J</num><heading>Bail-in administrator: supplementary</heading><subsection><num>(1)</num><content><p>A bail-in administrator may do anything necessary or desirable for the purposes of or in connection with the performance of the functions of the office.</p></content></subsection><subsection><num>(2)</num><content><p>A bail-in administrator is not a servant or agent of the Crown (and, in particular, is not a civil servant).</p></content></subsection><subsection><num>(3)</num><intro><p>Where a bail-in administrator is appointed under this Part, the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must make provision in a resolution instrument for resignation and replacement of the bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>may remove the bail-in administrator from office only (i) on the ground of incapacity or misconduct, or (ii) on the ground that there is no further need for a person to perform the functions conferred on the bail-in administrator.</p></content></level></subsection></section><section><num>48K</num><heading>Bail-in administrator: money</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for the payment of remuneration and allowances to a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>Provision made under subsection (1) may provide that the amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>to be paid by the Bank of England, or</p></content></level><level class="para1"><num>(b)</num><content><p>to be determined by the Bank of England and paid by the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>A bail-in administrator is not liable for damages in respect of anything done in good faith for the purposes of or in connection with the functions of the office (subject to section 8 of the Human Rights Act 1998).</p></content></subsection></section><section><num>48L</num><heading>Powers in relation to securities</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>cancel or modify any securities to which this subsection applies;</p></content></level><level class="para1"><num>(b)</num><content><p>convert any such securities from one form or class into another.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) applies to securities issued by the bank that fall within Class 1 in section 14.</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make provision with respect to rights attaching to securities issued by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for the listing of securities issued by the bank to be discontinued.</p></content></level></subsection><subsection><num>(4)</num><content><p>The reference in subsection (1)(b) to converting securities from one form or class into another includes creating a new security in connection with the modification of an existing security.</p></content></subsection><subsection><num>(5)</num><intro><p>The provision that may be made under subsection (3)(a) includes, for example—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights attaching to securities are to be treated as having been exercised;</p></content></level><level class="para1"><num>(b)</num><content><p>provision that the Bank of England, or a bail-in administrator, is to be treated as authorised to exercise specified rights attaching to securities;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that specified rights attaching to securities may not be exercised for a period specified in the instrument.</p></content></level></subsection><subsection><num>(6)</num><content><p>In subsection (3)(b) the reference to “listing” is to listing under section 74 of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(7)</num><content><p>The provision that may be made under this section in relation to any securities is in addition to any provision that the Bank of England may have power to make in relation to them under section 48B.</p></content></subsection></section><section><num>48M</num><heading>Termination rights, <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-default-event-provision">default event provision</term>” has the same meaning as in section 22.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may provide for subsection (3) or (4) to apply (but need not apply either).</p></content></subsection><subsection><num>(3)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies.</p></content></subsection><subsection><num>(4)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies except so far as the instrument provides otherwise.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsections (3) and (4) a reference to the resolution instrument is a reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the instrument,</p></content></level><level class="para1"><num>(b)</num><content><p>anything that is done by the instrument or is to be, or may be, done under or by virtue of the instrument, and</p></content></level><level class="para1"><num>(c)</num><content><p>any action or decision taken or made under this or another enactment in so far as it resulted in, or was connected to, the making of the instrument.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Provision under subsection (2) may apply subsection (3) or (4)—</p></intro><level class="para1"><num>(a)</num><content><p>generally or only for specified purposes, cases or circumstances, or</p></content></level><level class="para1"><num>(b)</num><content><p>differently for different purposes, cases or circumstances.</p></content></level></subsection><subsection><num>(7)</num><content><p>A thing is not done by virtue of a resolution instrument for the purposes of subsection (5)(b) merely by virtue of being done under a contract or other agreement rights or obligations under which have been affected by the instrument.</p></content></subsection></section><section><num>48N</num><heading>Directors</heading><subsection><num>(1)</num><intro><p>A resolution instrument may enable the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>to remove a director of a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(c)</num><content><p>to terminate the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(d)</num><content><p>to appoint a director of a specified bank.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) also applies to a director of any undertaking which is a banking group company in respect of a specified bank.</p></content></subsection><subsection><num>(3)</num><content><p>Appointments under subsection (1)(d) are to be on terms and conditions agreed with the Bank of England.</p></content></subsection></section><section><num>48O</num><heading>Directions in or under resolution instrument</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require one or more directors of the bank to comply with any general or specific directions that may be set out in the instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>enable the Bank of England to give written directions (whether general or specific) to one or more directors of the bank.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A director—</p></intro><level class="para1"><num>(a)</num><content><p>is not to be regarded as failing to comply with any duty owed to any person (for example, a shareholder, creditor or employee of the bank) by virtue of any action or inaction in compliance with a direction given under subsection (1)(a) or (b);</p></content></level><level class="para1"><num>(b)</num><content><p>is to be immune from liability in damages in respect of action or inaction in accordance with a direction.</p></content></level></subsection><subsection><num>(3)</num><content><p>A director must comply with a direction within the period of time specified in the direction, or if no period of time is specified, as soon as reasonably practicable.</p></content></subsection><subsection><num>(4)</num><content><p>A direction under subsection (1)(a) or (b) is enforceable on an application made by the Bank of England, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.</p></content></subsection></section><section><num>48P</num><heading>Orders for safeguarding certain financial arrangements</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-protected-arrangements">protected arrangements</term>” means security interests, title transfer collateral arrangements, set-off arrangements and netting arrangements.</p></content></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-netting-arrangements">netting arrangements</term>” means arrangements under which a number of claims or obligations can be converted into a net claim or obligation, and includes, in particular, “close-out” netting arrangements, under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-security-interests">security interests</term>” means arrangements under which one person acquires, by way of security, an actual or contingent interest in the property of another;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-set-off-arrangements">set-off arrangements</term>” means arrangements under which two or more debts, claims or obligations can be set off against each other;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-title-transfer-collateral-arrangements">title transfer collateral arrangements</term>” means arrangements under which Person 1 transfers assets to Person 2 on terms providing for Person 2 to transfer assets if specified obligations are discharged.</p></content></hcontainer></subsection><subsection><num>(3)</num><intro><p>The Treasury may by order—</p></intro><level class="para1"><num>(a)</num><content><p>restrict the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(b)</num><content><p>impose conditions on the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(c)</num><content><p>require any instrument that makes special bail-in provision to include specified provision, or provision to a specified effect, in respect of or for purposes connected with protected arrangements;</p></content></level><level class="para1"><num>(d)</num><content><p>provide for an instrument to be void or voidable, or for other consequences to arise, if or in so far as the instrument is made or purported to be made in contravention of a provision of the order (or of another order under this section);</p></content></level><level class="para1"><num>(e)</num><intro><p>specify principles to which the Bank of England is to be required to have regard in exercising specified powers—</p></intro><level class="para2"><num>(i)</num><content><p>that involve protected arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>where the exercise of the powers might affect protected arrangements.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>References to exercising a power within the scope of paragraph (a) or (b) of subsection (3) are to making an instrument containing provision made in reliance on section 12A(3)(a) or 44B (special bail-in provision).</p></content></subsection><subsection><num>(5)</num><intro><p>An order may apply to protected arrangements generally or only to arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>of a specified kind, or</p></content></level><level class="para1"><num>(b)</num><content><p>made or applying in specified circumstances.</p></content></level></subsection><subsection><num>(6)</num><content><p>An order may include provision for determining which arrangements are to be, or not to be, treated as protected arrangements; in particular, an order may provide for arrangements to be classified not according to their description by the parties but according to one or more indications of how they are treated, or are intended to be treated, in commercial practice.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes arrangements which—</p></intro><level class="para1"><num>(a)</num><content><p>are formed wholly or partly by one or more contracts or trusts;</p></content></level><level class="para1"><num>(b)</num><content><p>arise under or are wholly or partly governed by the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1"><num>(c)</num><content><p>wholly or partly arise automatically as a matter of law;</p></content></level><level class="para1"><num>(d)</num><content><p>involve any number of parties;</p></content></level><level class="para1"><num>(e)</num><content><p>operate partly by reference to other arrangements between parties.</p></content></level></subsection><subsection><num>(8)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48Q</num><heading>Continuity</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for anything (including legal proceedings) that relates to anything affected by the instrument and is in the process of being done immediately before the instrument takes effect to be continued from the time the instrument takes effect.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may modify references (express or implied) in an instrument or document.</p></content></subsection><subsection><num>(3)</num><content><p>A resolution instrument may require or permit any person to provide information and assistance to the Bank of England or another person, for the purposes of or in connection with provision made or to be made in that or another resolution instrument.</p></content></subsection></section><section><num>48R</num><heading>Execution and registration of instruments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>A resolution instrument may permit or require the execution, issue or delivery of an instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may provide for any provision in the instrument to have effect irrespective of—</p></intro><level class="para1"><num>(a)</num><content><p>whether an instrument has been produced, delivered, transferred or otherwise dealt with;</p></content></level><level class="para1"><num>(b)</num><content><p>registration.</p></content></level></subsection><subsection><num>(3)</num><content><p>A resolution instrument may provide for the effect of an instrument executed, issued or delivered in accordance with the resolution instrument.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>entitle a person to be registered in respect of a security;</p></content></level><level class="para1"><num>(b)</num><content><p>require a person to effect registration.</p></content></level></subsection></section><section><num>48S</num><heading>Resolution instruments: general matters</heading><subsection><num>(1)</num><content><p>Provision made in a resolution instrument takes effect despite any restriction arising by virtue of contract or legislation or in any other way.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may include incidental, consequential or transitional provision.</p></content></subsection><subsection><num>(3)</num><intro><p>In relying on subsection (2) a resolution instrument—</p></intro><level class="para1"><num>(a)</num><content><p>may make provision generally or only for specified purposes, cases or circumstances, and</p></content></level><level class="para1"><num>(b)</num><content><p>may make different provision for different purposes, cases or circumstances.</p></content></level></subsection></section><section><num>48T</num><heading>Procedure</heading><subsection><num>(1)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument in respect of a bank the Bank of England must send a copy to—</p></intro><level class="para1"><num>(a)</num><content><p>the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(c)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(d)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(e)</num><content><p>any other person specified in the code of practice under section 5.</p></content></level></subsection><subsection><num>(2)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument the Bank of England must publish a copy—</p></intro><level class="para1"><num>(a)</num><content><p>on the Bank's internet website, and</p></content></level><level class="para1"><num>(b)</num><content><p>in two newspapers, chosen by the Bank of England to maximise the likelihood of the instrument coming to the attention of persons likely to be affected.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where the Treasury receive a copy of a resolution instrument under subsection (1) they must lay a copy before Parliament.</p></content></subsection></section><section><num>48U</num><heading>Supplemental resolution instruments</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) with respect to a bank.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make, with respect to the bank, one or more resolution instruments designated by the Bank of England as supplemental resolution instruments.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a supplemental resolution instrument (but it is to be treated in the same way as a resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a supplemental resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>The possibility of making a supplemental resolution instrument in reliance on subsection (2) is without prejudice to the possibility of making a new instrument in accordance with section 12A(2) (and not in reliance on subsection (2) above).</p></content></subsection></section><section><num>48V</num><heading>Onward transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) providing for securities issued by a specified bank to be transferred to any person.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more onward transfer resolution instruments.</p></content></subsection><subsection><num>(3)</num><intro><p>An onward transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><intro><p>provides for the transfer of—</p></intro><level class="para2"><num>(i)</num><content><p>securities which were issued by the bank before the original instrument and have been transferred by the original instrument or a supplemental resolution instrument, or</p></content></level><level class="para2"><num>(ii)</num><content><p>securities which were issued by the bank after the original instrument;</p></content></level></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities issued by the bank (whether the transfer has been or is to be effected by that instrument, by another instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>An onward transfer resolution instrument may not transfer securities to the transferor under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to an onward transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making an onward transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 48U applies where the Bank of England has made an onward transfer resolution instrument.</p></content></subsection></section><section><num>48W</num><heading>Reverse transfer</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England has made an instrument (“the original instrument”) that is either—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument providing for the transfer of securities issued by a bank to a person (“<term refersTo="#term-the-transferee">the transferee</term>”), or</p></content></level><level class="para1"><num>(b)</num><content><p>an onward transfer resolution instrument (see section 48V) providing for the transfer of securities issued by a bank to a person (“the onward transferee”).</p></content></level></subsection><subsection><num>(2)</num><content><p>In a case falling within subsection (1)(a) the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the transferee (whether or not they were transferred by the original instrument).</p></content></subsection><subsection><num>(3)</num><content><p>In a case falling within subsection (1)(b), the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the onward transferee.</p></content></subsection><subsection><num>(4)</num><intro><p>A reverse transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities which are, or could be or could have been, transferred under paragraph (a).</p></content></level></subsection><subsection><num>(5)</num><content><p>Except where subsection (6) applies, the Bank of England may make a reverse transfer resolution instrument under subsection (2) only with the written consent of the transferee.</p></content></subsection><subsection><num>(6)</num><intro><p>This subsection applies where the transferee is—</p></intro><level class="para1"><num>(a)</num><content><p>a bail-in administrator, or</p></content></level><level class="para1"><num>(b)</num><content><p>a person who is not to be authorised to exercise any rights attaching to the securities except on the Bank of England's instructions.</p></content></level></subsection><subsection><num>(7)</num><content><p>The Bank of England may make a reverse transfer resolution instrument under subsection (3) only with the written consent of the onward transferee.</p></content></subsection><subsection><num>(8)</num><content><p>Sections 7 and 8A do not apply to a reverse transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes including for the purposes of an application of a power under this Part).</p></content></subsection><subsection><num>(9)</num><intro><p>Before making a reverse transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(10)</num><content><p>Section 48U applies where the Bank of England has made a reverse transfer resolution instrument.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p><mod>After section 81B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81BA</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition 1 is that the PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of a bank in the same group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition 2 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition 3 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.</p></content></subsection><subsection><num>(5)</num><intro><p>Before determining whether Condition 2 is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>In exercising a stabilisation power in reliance on this section the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><content><p><mod>After section 81C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81CA</num><heading>Section 81BA: supplemental</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has power under section 81BA to exercise a stabilisation power in respect of a banking group company.</p></content></subsection><subsection><num>(2)</num><content><p>The provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 and 8A) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.</p></content></subsection><subsection><num>(3)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions in this Act relating to resolution instruments are to be read in accordance with the general rule in subsection (4), but</p></content></level><level class="para1"><num>(b)</num><content><p>that is subject to the modifications in subsection (5);</p></content></level><wrapUp><p>and provisions in this Act and any other enactment are to be read with any modifications that may be necessary as a result of paragraphs (a) and (b).</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>The general rule is that the provisions in this Act relating to resolution instruments (including supplemental resolution instruments) are to be read (so far as the context permits)—</p></intro><level class="para1"><num>(a)</num><content><p>as applying in relation to the bank as they apply in relation to the parent undertaking, and</p></content></level><level class="para1"><num>(b)</num><content><p>so, in particular, as allowing any provision that may be made in a resolution instrument in relation to the parent undertaking to be made (also or instead) in relation to the bank.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>section 41A (transfer of property subsequent to resolution instrument) applies as if the reference in subsection (2) to the bank were to the parent undertaking, the bank and any other bank which is or was in the same group;</p></content></level><level class="para1"><num>(b)</num><intro><p>section 48V (onward transfer)—</p></intro><level class="para2"><num>(i)</num><content><p>applies as if the references in subsection (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group, and with the omission of subsection (4) of that section, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is to be read as permitting the transfer of securities only if they are held by (or for the benefit of) the parent undertaking or a subsidiary company of the parent undertaking;</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 48W (reverse transfer) applies as if the references in subsections (2) and (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group.</p></content></level></subsection><subsection><num>(6)</num><content><p>Where section 48B (special bail-in provision) applies in accordance with subsection (4) (so that section 48B applies in relation to the bank mentioned in section 81BA(2) as it applies in relation to the parent undertaking mentioned in subsection (3)), the provision that may be made in accordance with section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes provision replacing a liability (of any form) of that bank with a security (of any form or class) of the parent undertaking.</p></content></subsection><subsection><num>(7)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2)—</p></intro><level class="para1"><num>(a)</num><content><p>section 214B of the Financial Services and Markets Act 2000 (contribution to costs of special resolution regime) applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference in subsection (1)(b) of that section to the bank, and later references in that section, are treated as including references to any other bank which is a subsidiary undertaking of the parent undertaking (but not the parent undertaking itself).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><intro><p>In section 81D (interpretation: “banking group company” <abbr title="Et cetera" xml:lang="la">etc</abbr>)—</p></intro><level class="para1" eId="schedule-2-paragraph-7-3-a"><num>(a)</num><content><p><mod>in subsection (6), for “, 81C” substitute <quotedText>“
to 81CA
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-7-3-b"><num>(b)</num><content><p><mod>in subsection (7) for “section 81B” substitute <quotedText>“
sections 81B to 81CA
”</quotedText>.</mod></p></content></level></subparagraph></paragraph>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(ii), after “Part 1” insert <quotedText>“
(and Condition 5 has been met, if applicable)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Condition 5—</p></intro><level class="para1"><num>(a)</num><content><p>applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-c"><num>(c)</num><content><p><mod>in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-d"><num>(d)</num><content><p><mod>after subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(ii), after “Part 1” insert <quotedText>“
(and Condition 5 has been met, if applicable)
”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Condition 5—</p></intro><level class="para1"><num>(a)</num><content><p>applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-10-c"><num>(c)</num><content><p><mod>in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="schedule-2-paragraph-10-d"><num>(d)</num><content><p><mod>after subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</p></content></subsection></quotedStructure></mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120"><num>120</num><heading>Power to direct FMI administrator</heading><subsection eId="section-120-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-120-2"><num>(2)</num><intro><p>In deciding whether to give a direction under this section, the Bank of England must have regard to the public interest in—</p></intro><level class="para1" eId="section-120-2-a"><num>(a)</num><content><p>the protection and enhancement of the stability of the financial system of the United Kingdom, and</p></content></level><level class="para1" eId="section-120-2-b"><num>(b)</num><content><p>the maintenance of public confidence in that system.</p></content></level></subsection><subsection eId="section-120-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-120-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-120-5"><num>(5)</num><content><p>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.</p></content></subsection><subsection eId="section-120-6"><num>(6)</num><intro><p>Those persons are—</p></intro><level class="para1" eId="section-120-6-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-120-6-b"><num>(b)</num><content><p>the company in FMI administration;</p></content></level><level class="para1" eId="section-120-6-c"><num>(c)</num><content><p>the officers or staff of the company.</p></content></level></subsection><subsection eId="section-120-7"><num>(7)</num><intro><p>Immunity conferred by this section does not extend to action or inaction—</p></intro><level class="para1" eId="section-120-7-a"><num>(a)</num><content><p>in bad faith, or</p></content></level><level class="para1" eId="section-120-7-b"><num>(b)</num><content><p>in contravention of section 6(1) of the Human Rights Act 1998.</p></content></level></subsection><subsection eId="section-120-8"><num>(8)</num><content><p>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 <noteRef href="#key-45ee4c3a60854606ceded48dc44b13a2" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment system <ins class="first" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"><noteRef uk:name="commentary" href="#key-6d8a1e84978ae1fa701ba104fb169681" class="commentary"/>or section </ins><ref href="#"><ins ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681">206M</ins></ref><ins class="last" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"> of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act</ins>.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-2"><num>(2)</num><intro><p>In deciding whether to give a direction under this section, the Bank of England must have regard to the public interest in—</p></intro><level class="para1" eId="section-120-2-a"><num>(a)</num><content><p>the protection and enhancement of the stability of the financial system of the United Kingdom, and</p></content></level><level class="para1" eId="section-120-2-b"><num>(b)</num><content><p>the maintenance of public confidence in that system.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-2-a"><num>(a)</num><content><p>the protection and enhancement of the stability of the financial system of the United Kingdom, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-2-b"><num>(b)</num><content><p>the maintenance of public confidence in that system.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-5"><num>(5)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-6"><num>(6)</num><intro><p>Those persons are—</p></intro><level class="para1" eId="section-120-6-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-120-6-b"><num>(b)</num><content><p>the company in FMI administration;</p></content></level><level class="para1" eId="section-120-6-c"><num>(c)</num><content><p>the officers or staff of the company.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-6-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-6-b"><num>(b)</num><content><p>the company in FMI administration;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-6-c"><num>(c)</num><content><p>the officers or staff of the company.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-7"><num>(7)</num><intro><p>Immunity conferred by this section does not extend to action or inaction—</p></intro><level class="para1" eId="section-120-7-a"><num>(a)</num><content><p>in bad faith, or</p></content></level><level class="para1" eId="section-120-7-b"><num>(b)</num><content><p>in contravention of section 6(1) of the Human Rights Act 1998.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-7-a"><num>(a)</num><content><p>in bad faith, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-7-b"><num>(b)</num><content><p>in contravention of section 6(1) of the Human Rights Act 1998.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-120-8"><num>(8)</num><content><p>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 <noteRef href="#key-45ee4c3a60854606ceded48dc44b13a2" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...payment system <ins class="first" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"><noteRef uk:name="commentary" href="#key-6d8a1e84978ae1fa701ba104fb169681" class="commentary"/>or section </ins><ref href="#"><ins ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681">206M</ins></ref><ins class="last" ukl:ChangeId="key-6d8a1e84978ae1fa701ba104fb169681-1695299557188" ukl:CommentaryRef="key-6d8a1e84978ae1fa701ba104fb169681"> of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act</ins>.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121"><num>121</num><heading>Conduct of administration, transfer schemes <abbr title="et cetera" xml:lang="la">etc.</abbr></heading><subsection eId="section-121-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-121-2"><num>(2)</num><content><p>Schedule 7 (which makes provision for transfer schemes to achieve the objective of an FMI administration) has effect.</p></content></subsection><subsection eId="section-121-3"><num>(3)</num><content><p>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).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-2"><num>(2)</num><content><p>Schedule 7 (which makes provision for transfer schemes to achieve the objective of an FMI administration) has effect.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-3"><num>(3)</num><content><p>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).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-restrictions-on-other-insolvency-procedures"><heading><i>Restrictions on other insolvency procedures</i></heading><section eId="section-122"><num>122</num><heading>Restriction on winding-up orders and voluntary winding up</heading><subsection eId="section-122-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-122-1-a"><num>(a)</num><content><p>the petitioner has notified the Bank of England that the petition has been presented, and</p></content></level><level class="para1" eId="section-122-1-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection><subsection eId="section-122-2"><num>(2)</num><intro><p>A resolution for the voluntary winding up of an infrastructure company may not be made unless—</p></intro><level class="para1" eId="section-122-2-a"><num>(a)</num><content><p>the infrastructure company has applied to the court under this section,</p></content></level><level class="para1" eId="section-122-2-b"><num>(b)</num><content><p>the company has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-122-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection></section><section eId="section-123"><num>123</num><heading>Restriction on making of ordinary administration orders</heading><subsection eId="section-123-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><intro><p>The court must dismiss the application if—</p></intro><level class="para1" eId="section-123-2-a"><num>(a)</num><content><p>an FMI administration order is in force in relation to the company, or</p></content></level><level class="para1" eId="section-123-2-b"><num>(b)</num><content><p>an FMI administration order has been made in relation to the company but is not yet in force.</p></content></level></subsection><subsection eId="section-123-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-123-3-a"><num>(a)</num><content><p>the applicant has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-123-3-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection><subsection eId="section-123-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-123-5"><num>(5)</num><content><p>“<term refersTo="#term-ordinary-administration-application" eId="term-ordinary-administration-application">Ordinary administration application</term>” means an application under paragraph 12 of Schedule B1 to the 1986 Act.</p></content></subsection></section><section eId="section-124"><num>124</num><heading>Restriction on enforcement of security</heading><intro><p>A person may not take any step to enforce a security over property of an infrastructure company unless—</p></intro><level class="para1" eId="section-124-a"><num>(a)</num><content><p>notice of the intention to do so has been given to the Bank of England, and</p></content></level><level class="para1" eId="section-124-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice was received by the Bank has ended.</p></content></level></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122"><num>122</num><heading>Restriction on winding-up orders and voluntary winding up</heading><subsection eId="section-122-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-122-1-a"><num>(a)</num><content><p>the petitioner has notified the Bank of England that the petition has been presented, and</p></content></level><level class="para1" eId="section-122-1-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection><subsection eId="section-122-2"><num>(2)</num><intro><p>A resolution for the voluntary winding up of an infrastructure company may not be made unless—</p></intro><level class="para1" eId="section-122-2-a"><num>(a)</num><content><p>the infrastructure company has applied to the court under this section,</p></content></level><level class="para1" eId="section-122-2-b"><num>(b)</num><content><p>the company has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-122-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-122-1-a"><num>(a)</num><content><p>the petitioner has notified the Bank of England that the petition has been presented, and</p></content></level><level class="para1" eId="section-122-1-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-1-a"><num>(a)</num><content><p>the petitioner has notified the Bank of England that the petition has been presented, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-1-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-2"><num>(2)</num><intro><p>A resolution for the voluntary winding up of an infrastructure company may not be made unless—</p></intro><level class="para1" eId="section-122-2-a"><num>(a)</num><content><p>the infrastructure company has applied to the court under this section,</p></content></level><level class="para1" eId="section-122-2-b"><num>(b)</num><content><p>the company has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-122-2-c"><num>(c)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-2-a"><num>(a)</num><content><p>the infrastructure company has applied to the court under this section,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-2-b"><num>(b)</num><content><p>the company has notified the Bank of England that the application has been made, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-2-c"><num>(c)</num><content><p>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.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123"><num>123</num><heading>Restriction on making of ordinary administration orders</heading><subsection eId="section-123-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-123-2"><num>(2)</num><intro><p>The court must dismiss the application if—</p></intro><level class="para1" eId="section-123-2-a"><num>(a)</num><content><p>an FMI administration order is in force in relation to the company, or</p></content></level><level class="para1" eId="section-123-2-b"><num>(b)</num><content><p>an FMI administration order has been made in relation to the company but is not yet in force.</p></content></level></subsection><subsection eId="section-123-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-123-3-a"><num>(a)</num><content><p>the applicant has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-123-3-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection><subsection eId="section-123-4"><num>(4)</num><content><p>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.</p></content></subsection><subsection eId="section-123-5"><num>(5)</num><content><p>“<term refersTo="#term-ordinary-administration-application" eId="term-ordinary-administration-application">Ordinary administration application</term>” means an application under paragraph 12 of Schedule B1 to the 1986 Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-2"><num>(2)</num><intro><p>The court must dismiss the application if—</p></intro><level class="para1" eId="section-123-2-a"><num>(a)</num><content><p>an FMI administration order is in force in relation to the company, or</p></content></level><level class="para1" eId="section-123-2-b"><num>(b)</num><content><p>an FMI administration order has been made in relation to the company but is not yet in force.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-2-a"><num>(a)</num><content><p>an FMI administration order is in force in relation to the company, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-2-b"><num>(b)</num><content><p>an FMI administration order has been made in relation to the company but is not yet in force.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="section-123-3-a"><num>(a)</num><content><p>the applicant has notified the Bank of England that the application has been made, and</p></content></level><level class="para1" eId="section-123-3-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-3-a"><num>(a)</num><content><p>the applicant has notified the Bank of England that the application has been made, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-3-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice is received by the Bank has ended.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-4"><num>(4)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-5"><num>(5)</num><content><p>“<term refersTo="#term-ordinary-administration-application" eId="term-ordinary-administration-application">Ordinary administration application</term>” means an application under paragraph 12 of Schedule B1 to the 1986 Act.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124"><num>124</num><heading>Restriction on enforcement of security</heading><intro><p>A person may not take any step to enforce a security over property of an infrastructure company unless—</p></intro><level class="para1" eId="section-124-a"><num>(a)</num><content><p>notice of the intention to do so has been given to the Bank of England, and</p></content></level><level class="para1" eId="section-124-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice was received by the Bank has ended.</p></content></level></section>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-a"><num>(a)</num><content><p>notice of the intention to do so has been given to the Bank of England, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-b"><num>(b)</num><content><p>the period of 14 days beginning with the day on which the notice was received by the Bank has ended.</p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-financial-support-for-companies-in-fmi-administration"><heading><i>Financial support for companies in FMI administration</i></heading><section eId="section-125"><num>125</num><heading>Loans</heading><subsection eId="section-125-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>The Treasury may, out of money provided by Parliament, make loans to the company for achieving the objective in section 115.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>A loan under this section may be made on such terms as the Treasury think fit.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of this section.</p></content></subsection></section><section eId="section-126"><num>126</num><heading>Indemnities</heading><subsection eId="section-126-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection><subsection eId="section-126-2"><num>(2)</num><intro><p>The Treasury may agree to indemnify persons in respect of one or both of the following—</p></intro><level class="para1" eId="section-126-2-a"><num>(a)</num><content><p>liabilities incurred in connection with the exercise of powers and duties by the FMI administrator;</p></content></level><level class="para1" eId="section-126-2-b"><num>(b)</num><content><p>loss or damage sustained in that connection.</p></content></level></subsection><subsection eId="section-126-3"><num>(3)</num><content><p>The agreement may be made in whatever manner, and on whatever terms, the Treasury think fit.</p></content></subsection><subsection eId="section-126-4"><num>(4)</num><content><p>As soon as practicable after agreeing to indemnify persons under this section, the Treasury must lay before Parliament a statement of the agreement.</p></content></subsection><subsection eId="section-126-5"><num>(5)</num><intro><p>If sums are paid by the Treasury in consequence of an indemnity agreed to under this section, the infrastructure company must pay the Treasury—</p></intro><level class="para1" eId="section-126-5-a"><num>(a)</num><content><p>such amounts in or towards the repayment to them of those sums as the Treasury may direct, and</p></content></level><level class="para1" eId="section-126-5-b"><num>(b)</num><content><p>interest, at such rates as they may direct, on amounts outstanding under this subsection.</p></content></level></subsection><subsection eId="section-126-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-126-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-7-a"><num>(a)</num><content><p>as soon as practicable after the end of the financial year in which that sum is paid out, and</p></content></level><level class="para1" eId="section-126-7-b"><num>(b)</num><content><p>(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.</p></content></level></subsection><subsection eId="section-126-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-8-a"><num>(a)</num><content><p>before the beginning of that year, the whole of that sum has been repaid to the Treasury under subsection (5), and</p></content></level><level class="para1" eId="section-126-8-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-9"><num>(9)</num><intro><p>The power of the Treasury to agree to indemnify persons—</p></intro><level class="para1" eId="section-126-9-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-9-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-10"><num>(10)</num><intro><p>For the purposes of this section each of the following is a relevant person—</p></intro><level class="para1" eId="section-126-10-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-b"><num>(b)</num><content><p>an employee of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-c"><num>(c)</num><content><p>a member or employee of a firm of which the FMI administrator is a member;</p></content></level><level class="para1" eId="section-126-10-d"><num>(d)</num><content><p>a member or employee of a firm of which the FMI administrator is an employee;</p></content></level><level class="para1" eId="section-126-10-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-126-10-f"><num>(f)</num><content><p>a body corporate which is the employer of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-g"><num>(g)</num><content><p>an officer, employee or member of such a body corporate.</p></content></level></subsection><subsection eId="section-126-11"><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1" eId="section-126-11-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-11-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-12"><num>(12)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of subsection (5).</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125"><num>125</num><heading>Loans</heading><subsection eId="section-125-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection><subsection eId="section-125-2"><num>(2)</num><content><p>The Treasury may, out of money provided by Parliament, make loans to the company for achieving the objective in section 115.</p></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><p>A loan under this section may be made on such terms as the Treasury think fit.</p></content></subsection><subsection eId="section-125-4"><num>(4)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of this section.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-2"><num>(2)</num><content><p>The Treasury may, out of money provided by Parliament, make loans to the company for achieving the objective in section 115.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-3"><num>(3)</num><content><p>A loan under this section may be made on such terms as the Treasury think fit.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-4"><num>(4)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of this section.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126"><num>126</num><heading>Indemnities</heading><subsection eId="section-126-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection><subsection eId="section-126-2"><num>(2)</num><intro><p>The Treasury may agree to indemnify persons in respect of one or both of the following—</p></intro><level class="para1" eId="section-126-2-a"><num>(a)</num><content><p>liabilities incurred in connection with the exercise of powers and duties by the FMI administrator;</p></content></level><level class="para1" eId="section-126-2-b"><num>(b)</num><content><p>loss or damage sustained in that connection.</p></content></level></subsection><subsection eId="section-126-3"><num>(3)</num><content><p>The agreement may be made in whatever manner, and on whatever terms, the Treasury think fit.</p></content></subsection><subsection eId="section-126-4"><num>(4)</num><content><p>As soon as practicable after agreeing to indemnify persons under this section, the Treasury must lay before Parliament a statement of the agreement.</p></content></subsection><subsection eId="section-126-5"><num>(5)</num><intro><p>If sums are paid by the Treasury in consequence of an indemnity agreed to under this section, the infrastructure company must pay the Treasury—</p></intro><level class="para1" eId="section-126-5-a"><num>(a)</num><content><p>such amounts in or towards the repayment to them of those sums as the Treasury may direct, and</p></content></level><level class="para1" eId="section-126-5-b"><num>(b)</num><content><p>interest, at such rates as they may direct, on amounts outstanding under this subsection.</p></content></level></subsection><subsection eId="section-126-6"><num>(6)</num><content><p>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.</p></content></subsection><subsection eId="section-126-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-7-a"><num>(a)</num><content><p>as soon as practicable after the end of the financial year in which that sum is paid out, and</p></content></level><level class="para1" eId="section-126-7-b"><num>(b)</num><content><p>(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.</p></content></level></subsection><subsection eId="section-126-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-8-a"><num>(a)</num><content><p>before the beginning of that year, the whole of that sum has been repaid to the Treasury under subsection (5), and</p></content></level><level class="para1" eId="section-126-8-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-9"><num>(9)</num><intro><p>The power of the Treasury to agree to indemnify persons—</p></intro><level class="para1" eId="section-126-9-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-9-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-10"><num>(10)</num><intro><p>For the purposes of this section each of the following is a relevant person—</p></intro><level class="para1" eId="section-126-10-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-b"><num>(b)</num><content><p>an employee of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-c"><num>(c)</num><content><p>a member or employee of a firm of which the FMI administrator is a member;</p></content></level><level class="para1" eId="section-126-10-d"><num>(d)</num><content><p>a member or employee of a firm of which the FMI administrator is an employee;</p></content></level><level class="para1" eId="section-126-10-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-126-10-f"><num>(f)</num><content><p>a body corporate which is the employer of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-g"><num>(g)</num><content><p>an officer, employee or member of such a body corporate.</p></content></level></subsection><subsection eId="section-126-11"><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1" eId="section-126-11-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-11-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-126-12"><num>(12)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of subsection (5).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-1"><num>(1)</num><content><p>This section applies where an FMI administration order has been made in relation to an infrastructure company.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-2"><num>(2)</num><intro><p>The Treasury may agree to indemnify persons in respect of one or both of the following—</p></intro><level class="para1" eId="section-126-2-a"><num>(a)</num><content><p>liabilities incurred in connection with the exercise of powers and duties by the FMI administrator;</p></content></level><level class="para1" eId="section-126-2-b"><num>(b)</num><content><p>loss or damage sustained in that connection.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-2-a"><num>(a)</num><content><p>liabilities incurred in connection with the exercise of powers and duties by the FMI administrator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-2-b"><num>(b)</num><content><p>loss or damage sustained in that connection.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-3"><num>(3)</num><content><p>The agreement may be made in whatever manner, and on whatever terms, the Treasury think fit.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-4"><num>(4)</num><content><p>As soon as practicable after agreeing to indemnify persons under this section, the Treasury must lay before Parliament a statement of the agreement.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-5"><num>(5)</num><intro><p>If sums are paid by the Treasury in consequence of an indemnity agreed to under this section, the infrastructure company must pay the Treasury—</p></intro><level class="para1" eId="section-126-5-a"><num>(a)</num><content><p>such amounts in or towards the repayment to them of those sums as the Treasury may direct, and</p></content></level><level class="para1" eId="section-126-5-b"><num>(b)</num><content><p>interest, at such rates as they may direct, on amounts outstanding under this subsection.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-5-a"><num>(a)</num><content><p>such amounts in or towards the repayment to them of those sums as the Treasury may direct, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-5-b"><num>(b)</num><content><p>interest, at such rates as they may direct, on amounts outstanding under this subsection.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-6"><num>(6)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-7-a"><num>(a)</num><content><p>as soon as practicable after the end of the financial year in which that sum is paid out, and</p></content></level><level class="para1" eId="section-126-7-b"><num>(b)</num><content><p>(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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-7-a"><num>(a)</num><content><p>as soon as practicable after the end of the financial year in which that sum is paid out, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-7-b"><num>(b)</num><content><p>(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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-8"><num>(8)</num><intro><p>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—</p></intro><level class="para1" eId="section-126-8-a"><num>(a)</num><content><p>before the beginning of that year, the whole of that sum has been repaid to the Treasury under subsection (5), and</p></content></level><level class="para1" eId="section-126-8-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-8-a"><num>(a)</num><content><p>before the beginning of that year, the whole of that sum has been repaid to the Treasury under subsection (5), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-8-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-9"><num>(9)</num><intro><p>The power of the Treasury to agree to indemnify persons—</p></intro><level class="para1" eId="section-126-9-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-9-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-9-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-9-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-10"><num>(10)</num><intro><p>For the purposes of this section each of the following is a relevant person—</p></intro><level class="para1" eId="section-126-10-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-b"><num>(b)</num><content><p>an employee of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-c"><num>(c)</num><content><p>a member or employee of a firm of which the FMI administrator is a member;</p></content></level><level class="para1" eId="section-126-10-d"><num>(d)</num><content><p>a member or employee of a firm of which the FMI administrator is an employee;</p></content></level><level class="para1" eId="section-126-10-e"><num>(e)</num><content><p>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;</p></content></level><level class="para1" eId="section-126-10-f"><num>(f)</num><content><p>a body corporate which is the employer of the FMI administrator;</p></content></level><level class="para1" eId="section-126-10-g"><num>(g)</num><content><p>an officer, employee or member of such a body corporate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-a"><num>(a)</num><content><p>the FMI administrator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-b"><num>(b)</num><content><p>an employee of the FMI administrator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-c"><num>(c)</num><content><p>a member or employee of a firm of which the FMI administrator is a member;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-d"><num>(d)</num><content><p>a member or employee of a firm of which the FMI administrator is an employee;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-e"><num>(e)</num><content><p>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;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-f"><num>(f)</num><content><p>a body corporate which is the employer of the FMI administrator;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-10-g"><num>(g)</num><content><p>an officer, employee or member of such a body corporate.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-11"><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1" eId="section-126-11-a"><num>(a)</num><content><p>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</p></content></level><level class="para1" eId="section-126-11-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-11-a"><num>(a)</num><content><p>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</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-11-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-12"><num>(12)</num><content><p>The Treasury must pay into the Consolidated Fund sums received by them as a result of subsection (5).</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-powers-to-participate-in-part-26a-proceedings"><heading><ins class="first" ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f"><noteRef uk:name="commentary" href="#key-a311dff8472996bb8fb6c858b4ff632f" class="commentary"/>Powers to participate in Part 26A proceedings</ins></heading><section eId="section-124A"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">124A</ins></num><heading><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Powers of Bank to participate in Part 26A proceedings</ins></heading><subsection eId="section-124A-1"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(1)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-2"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(2)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A relevant applicant must give notice to the Bank of England of—</ins></p></intro><level class="para1" eId="section-124A-2-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and</ins></p></content></level><level class="para1" eId="section-124A-2-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></level></subsection><subsection eId="section-124A-3"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(3)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-4"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(4)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">In this section “relevant applicant”, in relation to a company, means—</ins></p></intro><level class="para1" eId="section-124A-4-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">the company;</ins></p></content></level><level class="para1" eId="section-124A-4-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is being wound up, the liquidator;</ins></p></content></level><level class="para1" eId="section-124A-4-c"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(c)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is in administration, the administrator.</ins></p></content></level></subsection><subsection eId="section-124A-5"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(5)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-6"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(6)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Any notice or other document required to be sent to a creditor of the company must also be sent to the Bank of England.</ins></p></content></subsection><subsection eId="section-124A-7"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(7)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A person appointed for the purpose by the Bank of England is entitled—</ins></p></intro><level class="para1" eId="section-124A-7-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;</ins></p></content></level><level class="para1" eId="section-124A-7-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to make representations as to any matter for decision at such a meeting.</ins></p></content></level></subsection><subsection eId="section-124A-8"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">124A</ins></num><heading><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Powers of Bank to participate in Part 26A proceedings</ins></heading><subsection eId="section-124A-1"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(1)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-2"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(2)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A relevant applicant must give notice to the Bank of England of—</ins></p></intro><level class="para1" eId="section-124A-2-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and</ins></p></content></level><level class="para1" eId="section-124A-2-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></level></subsection><subsection eId="section-124A-3"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(3)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-4"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(4)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">In this section “relevant applicant”, in relation to a company, means—</ins></p></intro><level class="para1" eId="section-124A-4-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">the company;</ins></p></content></level><level class="para1" eId="section-124A-4-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is being wound up, the liquidator;</ins></p></content></level><level class="para1" eId="section-124A-4-c"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(c)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is in administration, the administrator.</ins></p></content></level></subsection><subsection eId="section-124A-5"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(5)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection><subsection eId="section-124A-6"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(6)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Any notice or other document required to be sent to a creditor of the company must also be sent to the Bank of England.</ins></p></content></subsection><subsection eId="section-124A-7"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(7)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A person appointed for the purpose by the Bank of England is entitled—</ins></p></intro><level class="para1" eId="section-124A-7-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;</ins></p></content></level><level class="para1" eId="section-124A-7-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to make representations as to any matter for decision at such a meeting.</ins></p></content></level></subsection><subsection eId="section-124A-8"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-1"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(1)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-2"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(2)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A relevant applicant must give notice to the Bank of England of—</ins></p></intro><level class="para1" eId="section-124A-2-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and</ins></p></content></level><level class="para1" eId="section-124A-2-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-2-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-2-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-3"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(3)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-4"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(4)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">In this section “relevant applicant”, in relation to a company, means—</ins></p></intro><level class="para1" eId="section-124A-4-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">the company;</ins></p></content></level><level class="para1" eId="section-124A-4-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is being wound up, the liquidator;</ins></p></content></level><level class="para1" eId="section-124A-4-c"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(c)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is in administration, the administrator.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-4-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">the company;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-4-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is being wound up, the liquidator;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-4-c"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(c)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">if the company is in administration, the administrator.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-5"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(5)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-6"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(6)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">Any notice or other document required to be sent to a creditor of the company must also be sent to the Bank of England.</ins></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-7"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(7)</ins></num><intro><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">A person appointed for the purpose by the Bank of England is entitled—</ins></p></intro><level class="para1" eId="section-124A-7-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;</ins></p></content></level><level class="para1" eId="section-124A-7-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to make representations as to any matter for decision at such a meeting.</ins></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-7-a"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(a)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-124A-7-b"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(b)</ins></num><content><p><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">to make representations as to any matter for decision at such a meeting.</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-124A-8"><num><ins ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a311dff8472996bb8fb6c858b4ff632f-1596808453465" ukl:CommentaryRef="key-a311dff8472996bb8fb6c858b4ff632f">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.</ins></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-interpretation"><heading><i>Interpretation</i></heading><section eId="section-127"><num>127</num><heading>Interpretation of Part</heading><subsection eId="section-127-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-1986-act" eId="term-the-1986-act">the 1986 Act</term>” means the Insolvency Act 1986;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-business" eId="term-business">business</term>”, “<term refersTo="#term-member" eId="term-member">member</term>”, “<term refersTo="#term-property" eId="term-property">property</term>” and “<term refersTo="#term-security" eId="term-security">security</term>” have the same meaning as in the 1986 Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-court" eId="term-the-court">the court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in England and Wales and Northern Ireland, the High Court;</p></content></level><level class="para1"><num>(b)</num><content><p>in Scotland, the Court of Session;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“FMI administration order” and “FMI administrator” are to be read in accordance with section 114;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by section 112;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-activity" eId="term-regulated-activity">regulated activity</term>” has the same meaning as in FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” has the meaning given by section 113.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-73d386ba1def5c75f138c0248d15a7b6-1695299631997" ukl:CommentaryRef="key-73d386ba1def5c75f138c0248d15a7b6"><noteRef uk:name="commentary" href="#key-73d386ba1def5c75f138c0248d15a7b6" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.</ins> </p></content></hcontainer></subsection><subsection eId="section-127-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-127-3"><num>(3)</num><content><p>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.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-127"><num>127</num><heading>Interpretation of Part</heading><subsection eId="section-127-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-1986-act" eId="term-the-1986-act">the 1986 Act</term>” means the Insolvency Act 1986;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-business" eId="term-business">business</term>”, “<term refersTo="#term-member" eId="term-member">member</term>”, “<term refersTo="#term-property" eId="term-property">property</term>” and “<term refersTo="#term-security" eId="term-security">security</term>” have the same meaning as in the 1986 Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-court" eId="term-the-court">the court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in England and Wales and Northern Ireland, the High Court;</p></content></level><level class="para1"><num>(b)</num><content><p>in Scotland, the Court of Session;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“FMI administration order” and “FMI administrator” are to be read in accordance with section 114;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by section 112;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-activity" eId="term-regulated-activity">regulated activity</term>” has the same meaning as in FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” has the meaning given by section 113.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-73d386ba1def5c75f138c0248d15a7b6-1695299631997" ukl:CommentaryRef="key-73d386ba1def5c75f138c0248d15a7b6"><noteRef uk:name="commentary" href="#key-73d386ba1def5c75f138c0248d15a7b6" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.</ins> </p></content></hcontainer></subsection><subsection eId="section-127-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-127-3"><num>(3)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-127-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-the-1986-act" eId="term-the-1986-act">the 1986 Act</term>” means the Insolvency Act 1986;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-business" eId="term-business">business</term>”, “<term refersTo="#term-member" eId="term-member">member</term>”, “<term refersTo="#term-property" eId="term-property">property</term>” and “<term refersTo="#term-security" eId="term-security">security</term>” have the same meaning as in the 1986 Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-the-court" eId="term-the-court">the court</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in England and Wales and Northern Ireland, the High Court;</p></content></level><level class="para1"><num>(b)</num><content><p>in Scotland, the Court of Session;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“FMI administration order” and “FMI administrator” are to be read in accordance with section 114;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-infrastructure-company" eId="term-infrastructure-company">infrastructure company</term>” has the meaning given by section 112;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-operator" eId="term-operator">operator</term>”, in relation to a recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system, has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-recognised-...-payment-system">recognised <noteRef href="#key-4d3a55f91fa2ade61c3dcdce46755454" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... payment system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-regulated-activity" eId="term-regulated-activity">regulated activity</term>” has the same meaning as in FSMA 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-relevant-system" eId="term-the-relevant-system">the relevant system</term>” has the meaning given by section 113;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-securities-settlement-system" eId="term-securities-settlement-system">securities settlement system</term>” has the meaning given by section 113.</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first last" ukl:ChangeId="key-73d386ba1def5c75f138c0248d15a7b6-1695299631997" ukl:CommentaryRef="key-73d386ba1def5c75f138c0248d15a7b6"><noteRef uk:name="commentary" href="#key-73d386ba1def5c75f138c0248d15a7b6" class="commentary"/>“wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.</ins> </p></content></hcontainer></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-3"><num>(3)</num><content><p>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.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-6-crossheading-application-of-part-to-northern-ireland"><heading><i>Application of Part to Northern Ireland</i></heading><section eId="section-128"><num>128</num><heading>Northern Ireland</heading><subsection eId="section-128-1"><num>(1)</num><content><p>This section makes provision about this Part in its application to Northern Ireland.</p></content></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p>Section 127(3) is to have effect as if the reference to Northern Ireland were a reference to England and Wales or Scotland.</p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128"><num>128</num><heading>Northern Ireland</heading><subsection eId="section-128-1"><num>(1)</num><content><p>This section makes provision about this Part in its application to Northern Ireland.</p></content></subsection><subsection eId="section-128-2"><num>(2)</num><content><p>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.</p></content></subsection><subsection eId="section-128-3"><num>(3)</num><content><p>Section 127(3) is to have effect as if the reference to Northern Ireland were a reference to England and Wales or Scotland.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-1"><num>(1)</num><content><p>This section makes provision about this Part in its application to Northern Ireland.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-2"><num>(2)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-3"><num>(3)</num><content><p>Section 127(3) is to have effect as if the reference to Northern Ireland were a reference to England and Wales or Scotland.</p></content></subsection>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-7"><num><b>PART 7</b></num><heading>Miscellaneous</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-competition"><heading><i>Competition</i></heading><section eId="section-129"><num>129</num><heading>Functions of FCA under competition legislation</heading><content><p>Schedule 8 (which contains provision conferring on the FCA functions under competition legislation) has effect.</p></content></section><section eId="section-130"><num>130</num><heading>Competition as a secondary objective of the PRA</heading><subsection eId="section-130-1"><num>(1)</num><content><p><mod>For section 2H of FSMA 2000 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2H</num><heading>Secondary competition objective and duty to have regard to regulatory principles</heading><subsection><num>(1)</num><content><p>When discharging its general functions in a way that advances its objectives (see section 2F), the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities.</p></content></subsection><subsection><num>(2)</num><content><p>In discharging its general functions, the PRA must also have regard to the regulatory principles in section 3B.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-130-2"><num>(2)</num><content><p><mod>In section 3B (regulatory principles to be applied by both regulators), in subsection (1), for “2H(1)(a)” substitute <quotedText>“
2H(2)
”</quotedText>.</mod></p></content></subsection><subsection eId="section-130-3"><num>(3)</num><intro><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority)—</p></intro><level class="para1" eId="section-130-3-a"><num>(a)</num><intro><p>in paragraph 19 (annual report), in sub-paragraph (1)—</p></intro><level class="para2" eId="section-130-3-a-i"><num>(i)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>how it has complied with section 2H(1),</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-130-3-a-ii"><num>(ii)</num><content><p>in paragraph (c), omit the words from “and of” onwards, and</p></content></level></level><level class="para1" eId="section-130-3-b"><num>(b)</num><content><p><mod>in paragraph 20 (consultation about annual report), in sub-paragraph (1)(c), for the words from “and the PRA” onwards substitute <quotedText>“
and the PRA has facilitated effective competition in accordance with section 2H and has considered the regulatory principles in section 3B
”</quotedText>.</mod></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-consumers"><heading><i>Consumers</i></heading><section eId="section-131"><num>131</num><heading>Duty of FCA to make rules restricting charges for high-cost short-term credit</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>In section 137C of FSMA 2000 (FCA general rules: cost of credit and duration of credit agreements), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The FCA must make rules by virtue of subsection (1)(a)(ii) and (b) in relation to one or more specified descriptions of regulated credit agreement appearing to the FCA to involve the provision of high-cost short-term credit, with a view to securing an appropriate degree of protection for borrowers against excessive charges.</p></content></subsection><subsection><num>(1B)</num><content><p>Before the FCA publishes a draft of any rules to be made by virtue of subsection (1)(a)(ii) or (b), it must consult the Treasury.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p><mod>In Schedule 1ZA to FSMA 2000, in paragraph 11 (FCA's annual report), in sub-paragraph (1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(ha)</num><content><p>any rules that it has made as a result of section 137C during the period to which the report relates and the kinds of regulated credit agreement (within the meaning of that section) to which the rules apply,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-132"><num>132</num><heading>Role of FCA Consumer Panel in relation to PRA</heading><content><p><mod>In section 1Q of FSMA 2000 (the Consumer Panel), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>If it appears to the Consumer Panel that any matter being considered by it is relevant to the extent to which the general policies and practices of the PRA are consistent with the PRA's general duties under sections 2B to 2H, it may communicate to the PRA any views relating to that matter.</p></content></subsection><subsection><num>(5B)</num><content><p>The PRA may arrange to meet any of the FCA's expenditure on the Consumer Panel which is attributable to the Panel's functions under subsection (5A).</p></content></subsection></quotedStructure></mod></p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-parent-undertakings"><heading><i>Parent undertakings</i></heading><section eId="section-133"><num>133</num><heading>Power of FCA and PRA to make rules applying to parent undertakings</heading><subsection eId="section-133-1"><num>(1)</num><content><p><mod>After section 192J of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules applying to parent undertakings of ring-fenced bodies</i></heading><section><num>192JA</num><heading>Rules applying to parent undertakings of ring-fenced bodies</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make such rules applying to bodies corporate falling within subsection (2) as appear to the regulator to be necessary or expedient for the group ring-fencing purposes.</p></content></subsection><subsection><num>(2)</num><intro><p>A body corporate falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it is incorporated in the United Kingdom or has a place of business in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>it is a parent undertaking of a ring-fenced body, and</p></content></level><level class="para1"><num>(c)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “group ring-fencing purposes” are the purposes set out in section 142H(4).</p></content></subsection><subsection><num>(4)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the parent undertaking of a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules requiring parent undertakings to facilitate resolution</i></heading><section><num>192JB</num><heading>Rules requiring parent undertakings to facilitate resolution</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make rules requiring a qualifying parent undertaking to make arrangements that would in the opinion of the regulator allow or facilitate the exercise of the resolution powers in relation to the qualifying parent undertaking or any of its subsidiary undertakings in the event of a situation arising where all or part of the business of the parent undertaking or the subsidiary undertaking encounters or is likely to encounter financial difficulties.</p></content></subsection><subsection><num>(2)</num><intro><p>The “resolution powers” are—</p></intro><level class="para1"><num>(a)</num><content><p>the powers conferred on the Treasury and the Bank of England by or under Parts 1 to 3 of the Banking Act 2009, and</p></content></level><level class="para1"><num>(b)</num><content><p>any similar powers exercisable by an authority outside the United Kingdom.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The arrangements that may be required include arrangements relating to—</p></intro><level class="para1"><num>(a)</num><content><p>the issue of debt instruments by the parent undertaking;</p></content></level><level class="para1"><num>(b)</num><content><p>the provision to a subsidiary undertaking (“S”) or a transferee by the parent undertaking, or by any other subsidiary undertaking of the parent undertaking, of such services and facilities as would be required to enable S or the transferee to operate the business, or part of the business, effectively.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(b) “<term refersTo="#term-transferee">transferee</term>” means a person to whom all or part of the business of the parent undertaking or the subsidiary undertaking could be transferred as a result of the exercise of the resolution powers.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” has the same meaning as in section 142Y.</p></content></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include one or more PRA-authorised persons but do not include any authorised person that is not a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(c)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking do not include any PRA-authorised person, the FCA;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the PRA or the FCA.</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-133-2"><num>(2)</num><intro><p>In section 192K of FSMA 2000 (power to impose penalty or issue censure)—</p></intro><level class="para1" eId="section-133-2-a"><num>(a)</num><content><p><mod>in subsection (1), after “section 192J” insert <quotedText>“
or 192JB
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-133-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>This section also applies if a regulator is satisfied that a person (“P”) who is or has been a parent undertaking of a ring-fenced body has contravened a provision of rules made by that regulator under section 192JA.</p></content></subsection></quotedStructure></mod></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-meetings-with-auditors"><heading><i>Meetings with auditors</i></heading><section eId="section-134"><num>134</num><heading>Duty to meet auditors of certain institutions</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Part 22 of FSMA 2000 (auditors and actuaries) is amended as follows.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><content><p><mod>After section 339A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>339B</num><heading> Duty to meet auditors of certain institutions</heading><subsection><num>(1)</num><intro><p>The FCA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The PRA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>The annual report of each regulator must include the number of meetings that have taken place during the period to which the report relates between the regulator and auditors of PRA-authorised persons to which section 339C applies.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) “<term refersTo="#term-the-annual-report">the annual report</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the FCA, every report which it is required by paragraph 11 of Schedule 1ZA to make to the Treasury, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the PRA, every report which it is required by paragraph 19 of Schedule 1ZB to make to the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-auditor">auditor</term>” means an auditor appointed under or as a result of a statutory provision.</p></content></subsection></section><section><num>339C</num><heading>PRA-authorised persons to which this section applies</heading><subsection><num>(1)</num><intro><p>This section applies to a PRA-authorised person which—</p></intro><level class="para1"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1"><num>(b)</num><content><p>meets condition A or B,</p></content></level><level class="para1"><num>(c)</num><content><p>is not an insurer or a credit union, and</p></content></level><level class="para1"><num>(d)</num><content><p>is, in the opinion of the PRA, important to the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system.</p></content></level></subsection><subsection><num>(2)</num><content><p>Condition A is that the person has permission under Part 4A to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person is an investment firm that has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1"><num>(b)</num><content><p>when carried on by the person, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-insurer">insurer</term>” means an institution which is authorised under this Act to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;</p></content></level><level class="para1"><num>(c)</num><content><p>“<term refersTo="#term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection><num>(5)</num><content><p>Subsections (2), (3) and (4)(b) are to be read in accordance with Schedule 2, taken together with any order under section 22.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-134-3"><num>(3)</num><content><p><mod>The italic cross-heading before section 339A becomes <quotedText>“
<i>General duties of regulator</i>
”</quotedText>.</mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-fees-to-meet-treasury-expenditure"><heading><i>Fees to meet Treasury expenditure</i></heading><section eId="section-135"><num>135</num><heading>Fees to meet Treasury expenditure relating to international organisations</heading><subsection eId="section-135-1"><num>(1)</num><content><p><mod>After section 410 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Fees to meet Treasury expenses</i></heading><section><num>410A</num><heading>Fees to meet certain expenses of the Treasury</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1"><num>(a)</num><content><p>enable the Treasury from time to time by direction to require the FCA, the PRA or the Bank of England (each a “regulator”) to require the payment of fees by relevant persons, or such class of relevant person as may be specified in, or determined by the regulator in accordance with, the direction, for the purpose of meeting relevant expenses incurred by the Treasury;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about how the regulator to which a direction is given is to comply with the direction;</p></content></level><level class="para1"><num>(c)</num><content><p>require the regulator to pay to the Treasury, by such time or times as may be specified in the direction, the amount of any fees received by the regulator.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“Relevant expenses” are expenses (including any expenses of a capital nature) which are attributable to United Kingdom membership of, or Treasury participation in, a prescribed international organisation so far as those expenses—</p></intro><level class="para1"><num>(a)</num><content><p>represent a contribution (by way of subscription or otherwise) to the resources of the international organisation, and</p></content></level><level class="para1"><num>(b)</num><content><p>are in the opinion of the Treasury attributable to functions of the organisation which relate to financial stability or financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulations must provide for the charging of fees in pursuance of a direction given under the regulations to the FCA or the PRA to be by rules made by that regulator.</p></content></subsection><subsection><num>(4)</num><intro><p>The provisions of Chapter 2 of Part 9A apply to rules of the FCA or the PRA providing for the charging of fees in pursuance of a direction given under the regulations—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the FCA, as they apply to rules relating to the payment of fees under paragraph 23 of Schedule 1ZA;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the PRA, as they apply to rules relating to the payment of fees under paragraph 31 of Schedule 1ZB.</p></content></level></subsection><subsection><num>(5)</num><content><p>Paragraph 36(1) of Schedule 17A applies to the charging of fees by the Bank of England in pursuance of a direction given to the Bank under the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>make provision about what is, or is not, to be regarded as an expense;</p></content></level><level class="para1"><num>(b)</num><content><p>specify requirements that the Treasury must comply with before giving a direction;</p></content></level><level class="para1"><num>(c)</num><content><p>enable a direction to be varied or revoked by a subsequent direction;</p></content></level><level class="para1"><num>(d)</num><content><p>confer functions on a regulator.</p></content></level></subsection><subsection><num>(7)</num><intro><p>An amount payable to a regulator as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>any provision of rules made by the FCA or the PRA as a result of the regulations, or</p></content></level><level class="para1"><num>(b)</num><content><p>the imposition of fees by the Bank of England as a result of a direction given under the regulations to the Bank,</p></content></level><wrapUp><p>may be recovered as a debt due to the regulator.</p></wrapUp></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-relevant-persons">Relevant persons</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a direction given to the PRA, PRA-authorised persons;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a direction given to the FCA, authorised persons and recognised investment exchanges who (in either case) are not PRA-authorised persons;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of a direction given to the Bank of England, recognised clearing houses, other than those falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(9)</num><content><p>This section is subject to section 410B.</p></content></subsection></section><section><num>410B</num><heading>Directions in pursuance of section 410A</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-a-fees-direction">a fees direction</term>” means a direction given by the Treasury as a result of regulations under section 410A.</p></content></subsection><subsection><num>(2)</num><content><p>Before giving a fees direction to the FCA, the PRA or the Bank of England (each a “regulator”), the Treasury must consult the regulator concerned.</p></content></subsection><subsection><num>(3)</num><intro><p>A fees direction must—</p></intro><level class="para1"><num>(a)</num><content><p>be in writing;</p></content></level><level class="para1"><num>(b)</num><content><p>except in the case of a direction that revokes a previous direction or a direction that varies a previous direction without affecting the total amount intended to be raised by the fees, specify the total amount intended to be raised by the fees to be charged by the regulator and explain how that amount is calculated;</p></content></level><level class="para1"><num>(c)</num><content><p>contain such other information as may be prescribed.</p></content></level></subsection><subsection><num>(4)</num><content><p>As soon as practicable after giving a fees direction, the Treasury must lay before Parliament a copy of the direction.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>In section 3A of FSMA 2000 (meaning of “regulator”), in subsection (3)—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (a), and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the meaning of “regulator” in sections 410A and 410B (fees to meet certain expenses of Treasury).</p></content></level></quotedStructure></mod></p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-parliamentary-control-of-statutory-instruments-under-fsma-2000"><heading><i>Parliamentary control of statutory instruments under </i>FSMA 2000</heading><section eId="section-136"><num>136</num><heading>Amendments of section 429 of FSMA 2000</heading><subsection eId="section-136-1"><num>(1)</num><content><p>Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is amended as follows.</p></content></subsection><subsection eId="section-136-2"><num>(2)</num><intro><p>In subsection (1)(a) (orders subject to affirmative procedure)—</p></intro><level class="para1" eId="section-136-2-a"><num><noteRef href="#key-fb91f2533f3c485ee98e14ee811818be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-136-2-b"><num>(b)</num><content><p><mod>for “144(4), 192(b) or (e), 138K(6)(c)” substitute <quotedText>“
138K(6)(c), 144(4), 192(b) or (e)
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-136-3"><num>(3)</num><content><p><mod>In subsection (2) (regulations subject to affirmative procedure), after “90B,” insert <quotedText>“
142W,
”</quotedText>.</mod></p></content></subsection><subsection eId="section-136-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Regulations to which subsection (2B) applies are not to be made unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.</p></content></subsection><subsection><num>(2B)</num><content><p>This subsection applies to regulations which contain provision made under section 410A, other than provision made only by virtue of subsection (2) of that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-136-5"><num>(5)</num><content><p><mod>In subsection (8), for “or 23A” substitute <quotedText>“
, 23A or 142Z
”</quotedText>.</mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-bank-of-england"><heading><i>Bank of England</i></heading><section eId="section-137"><num>137</num><heading>Accounts of Bank of England and its wholly-owned subsidiaries</heading><subsection eId="section-137-1"><num>(1)</num><content><p>The Bank of England Act 1998 is amended as follows.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p><mod>In section 7 (accounts), in subsection (4), for the words from “appropriate” to the end substitute <quotedText>“
necessary to do so having regard to the Financial Stability Objective
”</quotedText>.</mod></p></content></subsection><subsection eId="section-137-3"><num>(3)</num><content><p><mod>After section 7 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>7A</num><heading>Accounts of companies wholly owned by the Bank</heading><subsection><num>(1)</num><content><p>If the Bank considers it necessary to do so having regard to the Financial Stability Objective, the Bank may by direction to a qualifying company exclude the application to the qualifying company of any of the relevant Companies Act requirements.</p></content></subsection><subsection><num>(2)</num><content><p>The relevant Companies Act requirements are the requirements to which the directors of the qualifying company would otherwise be subject under the Companies Act 2006 (except sections 412 and 413 (directors' benefits)) in relation to the preparation of accounts under section 394 of that Act.</p></content></subsection><subsection><num>(3)</num><content><p>A direction under subsection (1) may relate to one or more specified accounting periods of the qualifying company, or to a specified accounting period and all subsequent accounting periods of the qualifying company.</p></content></subsection><subsection><num>(4)</num><content><p>The Bank must consult the Treasury before giving a direction under subsection (1).</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury may by notice in writing to the Bank require it to publish in such manner as it thinks fit such information relating to the accounts of a qualifying company as the Treasury may specify in the notice.</p></content></subsection><subsection><num>(6)</num><content><p>The information specified in a notice under subsection (5) may include information which as a result of a direction under subsection (1) was excluded from accounts prepared in accordance with the Companies Act 2006.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury must consult the Bank before giving a notice under subsection (5).</p></content></subsection><subsection><num>(8)</num><content><p>A direction under subsection (1) or a notice under subsection (5) may be revoked by a subsequent direction or notice (as the case may be).</p></content></subsection><subsection><num>(9)</num><intro><p>“<term refersTo="#term-qualifying-company">Qualifying company</term>” means any company which is wholly owned by the Bank other than—</p></intro><level class="para1"><num>(a)</num><content><p>the Prudential Regulation Authority, or</p></content></level><level class="para1"><num>(b)</num><content><p>a company which is a bridge bank for the purposes of section 12(3) of the Banking Act 2009.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of subsection (9), a company is wholly owned by the Bank if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a company of which no person other than the Bank or a nominee of the Bank is a member, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a wholly-owned subsidiary of a company within paragraph (a).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-building-societies"><heading><i>Building societies</i></heading><section eId="section-138"><num>138</num><heading>Building societies</heading><content><p>Schedule 9 (which contains provision about building societies) has effect.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-claims-management-services"><heading><i>Claims management services</i></heading><section eId="section-139"><num><noteRef href="#key-c4947653a2291915eaed7829b13a936e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>139</num><heading>Power to impose penalties on persons providing claims management services</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section><section eId="section-140"><num><noteRef href="#key-d7549e95c5a7e6826be2406be0719696" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>140</num><heading>Recovery of expenditure incurred by Office for Legal Complaints</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-minor-amendments"><heading><i>Minor amendments</i></heading><section eId="section-141"><num>141</num><heading>Minor amendments</heading><content><p>Schedule 10 (which contains amendments of, or connected with, the Financial Services Act 2012 and amendments of provisions amended by that Act) has effect.</p></content></section></hcontainer></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-competition"><heading><i>Competition</i></heading><section eId="section-129"><num>129</num><heading>Functions of FCA under competition legislation</heading><content><p>Schedule 8 (which contains provision conferring on the FCA functions under competition legislation) has effect.</p></content></section><section eId="section-130"><num>130</num><heading>Competition as a secondary objective of the PRA</heading><subsection eId="section-130-1"><num>(1)</num><content><p><mod>For section 2H of FSMA 2000 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2H</num><heading>Secondary competition objective and duty to have regard to regulatory principles</heading><subsection><num>(1)</num><content><p>When discharging its general functions in a way that advances its objectives (see section 2F), the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities.</p></content></subsection><subsection><num>(2)</num><content><p>In discharging its general functions, the PRA must also have regard to the regulatory principles in section 3B.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-130-2"><num>(2)</num><content><p><mod>In section 3B (regulatory principles to be applied by both regulators), in subsection (1), for “2H(1)(a)” substitute <quotedText>“
2H(2)
”</quotedText>.</mod></p></content></subsection><subsection eId="section-130-3"><num>(3)</num><intro><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority)—</p></intro><level class="para1" eId="section-130-3-a"><num>(a)</num><intro><p>in paragraph 19 (annual report), in sub-paragraph (1)—</p></intro><level class="para2" eId="section-130-3-a-i"><num>(i)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>how it has complied with section 2H(1),</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-130-3-a-ii"><num>(ii)</num><content><p>in paragraph (c), omit the words from “and of” onwards, and</p></content></level></level><level class="para1" eId="section-130-3-b"><num>(b)</num><content><p><mod>in paragraph 20 (consultation about annual report), in sub-paragraph (1)(c), for the words from “and the PRA” onwards substitute <quotedText>“
and the PRA has facilitated effective competition in accordance with section 2H and has considered the regulatory principles in section 3B
”</quotedText>.</mod></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129"><num>129</num><heading>Functions of FCA under competition legislation</heading><content><p>Schedule 8 (which contains provision conferring on the FCA functions under competition legislation) has effect.</p></content></section>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-130"><num>130</num><heading>Competition as a secondary objective of the PRA</heading><subsection eId="section-130-1"><num>(1)</num><content><p><mod>For section 2H of FSMA 2000 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2H</num><heading>Secondary competition objective and duty to have regard to regulatory principles</heading><subsection><num>(1)</num><content><p>When discharging its general functions in a way that advances its objectives (see section 2F), the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities.</p></content></subsection><subsection><num>(2)</num><content><p>In discharging its general functions, the PRA must also have regard to the regulatory principles in section 3B.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-130-2"><num>(2)</num><content><p><mod>In section 3B (regulatory principles to be applied by both regulators), in subsection (1), for “2H(1)(a)” substitute <quotedText>“
2H(2)
”</quotedText>.</mod></p></content></subsection><subsection eId="section-130-3"><num>(3)</num><intro><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority)—</p></intro><level class="para1" eId="section-130-3-a"><num>(a)</num><intro><p>in paragraph 19 (annual report), in sub-paragraph (1)—</p></intro><level class="para2" eId="section-130-3-a-i"><num>(i)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>how it has complied with section 2H(1),</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-130-3-a-ii"><num>(ii)</num><content><p>in paragraph (c), omit the words from “and of” onwards, and</p></content></level></level><level class="para1" eId="section-130-3-b"><num>(b)</num><content><p><mod>in paragraph 20 (consultation about annual report), in sub-paragraph (1)(c), for the words from “and the PRA” onwards substitute <quotedText>“
and the PRA has facilitated effective competition in accordance with section 2H and has considered the regulatory principles in section 3B
”</quotedText>.</mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-130-1"><num>(1)</num><content><p><mod>For section 2H of FSMA 2000 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>2H</num><heading>Secondary competition objective and duty to have regard to regulatory principles</heading><subsection><num>(1)</num><content><p>When discharging its general functions in a way that advances its objectives (see section 2F), the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities.</p></content></subsection><subsection><num>(2)</num><content><p>In discharging its general functions, the PRA must also have regard to the regulatory principles in section 3B.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-2"><num>(2)</num><content><p><mod>In section 3B (regulatory principles to be applied by both regulators), in subsection (1), for “2H(1)(a)” substitute <quotedText>“
2H(2)
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-130-3"><num>(3)</num><intro><p>In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority)—</p></intro><level class="para1" eId="section-130-3-a"><num>(a)</num><intro><p>in paragraph 19 (annual report), in sub-paragraph (1)—</p></intro><level class="para2" eId="section-130-3-a-i"><num>(i)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>how it has complied with section 2H(1),</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-130-3-a-ii"><num>(ii)</num><content><p>in paragraph (c), omit the words from “and of” onwards, and</p></content></level></level><level class="para1" eId="section-130-3-b"><num>(b)</num><content><p><mod>in paragraph 20 (consultation about annual report), in sub-paragraph (1)(c), for the words from “and the PRA” onwards substitute <quotedText>“
and the PRA has facilitated effective competition in accordance with section 2H and has considered the regulatory principles in section 3B
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-130-3-a"><num>(a)</num><intro><p>in paragraph 19 (annual report), in sub-paragraph (1)—</p></intro><level class="para2" eId="section-130-3-a-i"><num>(i)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>how it has complied with section 2H(1),</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para2" eId="section-130-3-a-ii"><num>(ii)</num><content><p>in paragraph (c), omit the words from “and of” onwards, and</p></content></level></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-130-3-a-i"><num>(i)</num><content><p><mod>after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>how it has complied with section 2H(1),</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-130-3-a-ii"><num>(ii)</num><content><p>in paragraph (c), omit the words from “and of” onwards, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-3-b"><num>(b)</num><content><p><mod>in paragraph 20 (consultation about annual report), in sub-paragraph (1)(c), for the words from “and the PRA” onwards substitute <quotedText>“
and the PRA has facilitated effective competition in accordance with section 2H and has considered the regulatory principles in section 3B
”</quotedText>.</mod></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-consumers"><heading><i>Consumers</i></heading><section eId="section-131"><num>131</num><heading>Duty of FCA to make rules restricting charges for high-cost short-term credit</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>In section 137C of FSMA 2000 (FCA general rules: cost of credit and duration of credit agreements), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The FCA must make rules by virtue of subsection (1)(a)(ii) and (b) in relation to one or more specified descriptions of regulated credit agreement appearing to the FCA to involve the provision of high-cost short-term credit, with a view to securing an appropriate degree of protection for borrowers against excessive charges.</p></content></subsection><subsection><num>(1B)</num><content><p>Before the FCA publishes a draft of any rules to be made by virtue of subsection (1)(a)(ii) or (b), it must consult the Treasury.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p><mod>In Schedule 1ZA to FSMA 2000, in paragraph 11 (FCA's annual report), in sub-paragraph (1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(ha)</num><content><p>any rules that it has made as a result of section 137C during the period to which the report relates and the kinds of regulated credit agreement (within the meaning of that section) to which the rules apply,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>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.</p></content></subsection></section><section eId="section-132"><num>132</num><heading>Role of FCA Consumer Panel in relation to PRA</heading><content><p><mod>In section 1Q of FSMA 2000 (the Consumer Panel), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>If it appears to the Consumer Panel that any matter being considered by it is relevant to the extent to which the general policies and practices of the PRA are consistent with the PRA's general duties under sections 2B to 2H, it may communicate to the PRA any views relating to that matter.</p></content></subsection><subsection><num>(5B)</num><content><p>The PRA may arrange to meet any of the FCA's expenditure on the Consumer Panel which is attributable to the Panel's functions under subsection (5A).</p></content></subsection></quotedStructure></mod></p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131"><num>131</num><heading>Duty of FCA to make rules restricting charges for high-cost short-term credit</heading><subsection eId="section-131-1"><num>(1)</num><content><p><mod>In section 137C of FSMA 2000 (FCA general rules: cost of credit and duration of credit agreements), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The FCA must make rules by virtue of subsection (1)(a)(ii) and (b) in relation to one or more specified descriptions of regulated credit agreement appearing to the FCA to involve the provision of high-cost short-term credit, with a view to securing an appropriate degree of protection for borrowers against excessive charges.</p></content></subsection><subsection><num>(1B)</num><content><p>Before the FCA publishes a draft of any rules to be made by virtue of subsection (1)(a)(ii) or (b), it must consult the Treasury.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-131-2"><num>(2)</num><content><p><mod>In Schedule 1ZA to FSMA 2000, in paragraph 11 (FCA's annual report), in sub-paragraph (1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(ha)</num><content><p>any rules that it has made as a result of section 137C during the period to which the report relates and the kinds of regulated credit agreement (within the meaning of that section) to which the rules apply,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection><subsection eId="section-131-3"><num>(3)</num><content><p>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.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131-1"><num>(1)</num><content><p><mod>In section 137C of FSMA 2000 (FCA general rules: cost of credit and duration of credit agreements), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>The FCA must make rules by virtue of subsection (1)(a)(ii) and (b) in relation to one or more specified descriptions of regulated credit agreement appearing to the FCA to involve the provision of high-cost short-term credit, with a view to securing an appropriate degree of protection for borrowers against excessive charges.</p></content></subsection><subsection><num>(1B)</num><content><p>Before the FCA publishes a draft of any rules to be made by virtue of subsection (1)(a)(ii) or (b), it must consult the Treasury.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131-2"><num>(2)</num><content><p><mod>In Schedule 1ZA to FSMA 2000, in paragraph 11 (FCA's annual report), in sub-paragraph (1), after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(ha)</num><content><p>any rules that it has made as a result of section 137C during the period to which the report relates and the kinds of regulated credit agreement (within the meaning of that section) to which the rules apply,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-131-3"><num>(3)</num><content><p>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.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-132"><num>132</num><heading>Role of FCA Consumer Panel in relation to PRA</heading><content><p><mod>In section 1Q of FSMA 2000 (the Consumer Panel), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><content><p>If it appears to the Consumer Panel that any matter being considered by it is relevant to the extent to which the general policies and practices of the PRA are consistent with the PRA's general duties under sections 2B to 2H, it may communicate to the PRA any views relating to that matter.</p></content></subsection><subsection><num>(5B)</num><content><p>The PRA may arrange to meet any of the FCA's expenditure on the Consumer Panel which is attributable to the Panel's functions under subsection (5A).</p></content></subsection></quotedStructure></mod></p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-parent-undertakings"><heading><i>Parent undertakings</i></heading><section eId="section-133"><num>133</num><heading>Power of FCA and PRA to make rules applying to parent undertakings</heading><subsection eId="section-133-1"><num>(1)</num><content><p><mod>After section 192J of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules applying to parent undertakings of ring-fenced bodies</i></heading><section><num>192JA</num><heading>Rules applying to parent undertakings of ring-fenced bodies</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make such rules applying to bodies corporate falling within subsection (2) as appear to the regulator to be necessary or expedient for the group ring-fencing purposes.</p></content></subsection><subsection><num>(2)</num><intro><p>A body corporate falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it is incorporated in the United Kingdom or has a place of business in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>it is a parent undertaking of a ring-fenced body, and</p></content></level><level class="para1"><num>(c)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “group ring-fencing purposes” are the purposes set out in section 142H(4).</p></content></subsection><subsection><num>(4)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the parent undertaking of a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules requiring parent undertakings to facilitate resolution</i></heading><section><num>192JB</num><heading>Rules requiring parent undertakings to facilitate resolution</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make rules requiring a qualifying parent undertaking to make arrangements that would in the opinion of the regulator allow or facilitate the exercise of the resolution powers in relation to the qualifying parent undertaking or any of its subsidiary undertakings in the event of a situation arising where all or part of the business of the parent undertaking or the subsidiary undertaking encounters or is likely to encounter financial difficulties.</p></content></subsection><subsection><num>(2)</num><intro><p>The “resolution powers” are—</p></intro><level class="para1"><num>(a)</num><content><p>the powers conferred on the Treasury and the Bank of England by or under Parts 1 to 3 of the Banking Act 2009, and</p></content></level><level class="para1"><num>(b)</num><content><p>any similar powers exercisable by an authority outside the United Kingdom.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The arrangements that may be required include arrangements relating to—</p></intro><level class="para1"><num>(a)</num><content><p>the issue of debt instruments by the parent undertaking;</p></content></level><level class="para1"><num>(b)</num><content><p>the provision to a subsidiary undertaking (“S”) or a transferee by the parent undertaking, or by any other subsidiary undertaking of the parent undertaking, of such services and facilities as would be required to enable S or the transferee to operate the business, or part of the business, effectively.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(b) “<term refersTo="#term-transferee">transferee</term>” means a person to whom all or part of the business of the parent undertaking or the subsidiary undertaking could be transferred as a result of the exercise of the resolution powers.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” has the same meaning as in section 142Y.</p></content></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include one or more PRA-authorised persons but do not include any authorised person that is not a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(c)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking do not include any PRA-authorised person, the FCA;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the PRA or the FCA.</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-133-2"><num>(2)</num><intro><p>In section 192K of FSMA 2000 (power to impose penalty or issue censure)—</p></intro><level class="para1" eId="section-133-2-a"><num>(a)</num><content><p><mod>in subsection (1), after “section 192J” insert <quotedText>“
or 192JB
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-133-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>This section also applies if a regulator is satisfied that a person (“P”) who is or has been a parent undertaking of a ring-fenced body has contravened a provision of rules made by that regulator under section 192JA.</p></content></subsection></quotedStructure></mod></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-133"><num>133</num><heading>Power of FCA and PRA to make rules applying to parent undertakings</heading><subsection eId="section-133-1"><num>(1)</num><content><p><mod>After section 192J of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules applying to parent undertakings of ring-fenced bodies</i></heading><section><num>192JA</num><heading>Rules applying to parent undertakings of ring-fenced bodies</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make such rules applying to bodies corporate falling within subsection (2) as appear to the regulator to be necessary or expedient for the group ring-fencing purposes.</p></content></subsection><subsection><num>(2)</num><intro><p>A body corporate falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it is incorporated in the United Kingdom or has a place of business in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>it is a parent undertaking of a ring-fenced body, and</p></content></level><level class="para1"><num>(c)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “group ring-fencing purposes” are the purposes set out in section 142H(4).</p></content></subsection><subsection><num>(4)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the parent undertaking of a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules requiring parent undertakings to facilitate resolution</i></heading><section><num>192JB</num><heading>Rules requiring parent undertakings to facilitate resolution</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make rules requiring a qualifying parent undertaking to make arrangements that would in the opinion of the regulator allow or facilitate the exercise of the resolution powers in relation to the qualifying parent undertaking or any of its subsidiary undertakings in the event of a situation arising where all or part of the business of the parent undertaking or the subsidiary undertaking encounters or is likely to encounter financial difficulties.</p></content></subsection><subsection><num>(2)</num><intro><p>The “resolution powers” are—</p></intro><level class="para1"><num>(a)</num><content><p>the powers conferred on the Treasury and the Bank of England by or under Parts 1 to 3 of the Banking Act 2009, and</p></content></level><level class="para1"><num>(b)</num><content><p>any similar powers exercisable by an authority outside the United Kingdom.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The arrangements that may be required include arrangements relating to—</p></intro><level class="para1"><num>(a)</num><content><p>the issue of debt instruments by the parent undertaking;</p></content></level><level class="para1"><num>(b)</num><content><p>the provision to a subsidiary undertaking (“S”) or a transferee by the parent undertaking, or by any other subsidiary undertaking of the parent undertaking, of such services and facilities as would be required to enable S or the transferee to operate the business, or part of the business, effectively.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(b) “<term refersTo="#term-transferee">transferee</term>” means a person to whom all or part of the business of the parent undertaking or the subsidiary undertaking could be transferred as a result of the exercise of the resolution powers.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” has the same meaning as in section 142Y.</p></content></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include one or more PRA-authorised persons but do not include any authorised person that is not a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(c)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking do not include any PRA-authorised person, the FCA;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the PRA or the FCA.</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-133-2"><num>(2)</num><intro><p>In section 192K of FSMA 2000 (power to impose penalty or issue censure)—</p></intro><level class="para1" eId="section-133-2-a"><num>(a)</num><content><p><mod>in subsection (1), after “section 192J” insert <quotedText>“
or 192JB
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-133-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>This section also applies if a regulator is satisfied that a person (“P”) who is or has been a parent undertaking of a ring-fenced body has contravened a provision of rules made by that regulator under section 192JA.</p></content></subsection></quotedStructure></mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-133-1"><num>(1)</num><content><p><mod>After section 192J of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules applying to parent undertakings of ring-fenced bodies</i></heading><section><num>192JA</num><heading>Rules applying to parent undertakings of ring-fenced bodies</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make such rules applying to bodies corporate falling within subsection (2) as appear to the regulator to be necessary or expedient for the group ring-fencing purposes.</p></content></subsection><subsection><num>(2)</num><intro><p>A body corporate falls within this subsection if—</p></intro><level class="para1"><num>(a)</num><content><p>it is incorporated in the United Kingdom or has a place of business in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>it is a parent undertaking of a ring-fenced body, and</p></content></level><level class="para1"><num>(c)</num><content><p>it is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “group ring-fencing purposes” are the purposes set out in section 142H(4).</p></content></subsection><subsection><num>(4)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the parent undertaking of a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>in any other case, the FCA.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Rules requiring parent undertakings to facilitate resolution</i></heading><section><num>192JB</num><heading>Rules requiring parent undertakings to facilitate resolution</heading><subsection><num>(1)</num><content><p>The appropriate regulator may make rules requiring a qualifying parent undertaking to make arrangements that would in the opinion of the regulator allow or facilitate the exercise of the resolution powers in relation to the qualifying parent undertaking or any of its subsidiary undertakings in the event of a situation arising where all or part of the business of the parent undertaking or the subsidiary undertaking encounters or is likely to encounter financial difficulties.</p></content></subsection><subsection><num>(2)</num><intro><p>The “resolution powers” are—</p></intro><level class="para1"><num>(a)</num><content><p>the powers conferred on the Treasury and the Bank of England by or under Parts 1 to 3 of the Banking Act 2009, and</p></content></level><level class="para1"><num>(b)</num><content><p>any similar powers exercisable by an authority outside the United Kingdom.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The arrangements that may be required include arrangements relating to—</p></intro><level class="para1"><num>(a)</num><content><p>the issue of debt instruments by the parent undertaking;</p></content></level><level class="para1"><num>(b)</num><content><p>the provision to a subsidiary undertaking (“S”) or a transferee by the parent undertaking, or by any other subsidiary undertaking of the parent undertaking, of such services and facilities as would be required to enable S or the transferee to operate the business, or part of the business, effectively.</p></content></level></subsection><subsection><num>(4)</num><content><p>In subsection (3)(b) “<term refersTo="#term-transferee">transferee</term>” means a person to whom all or part of the business of the parent undertaking or the subsidiary undertaking could be transferred as a result of the exercise of the resolution powers.</p></content></subsection><subsection><num>(5)</num><content><p>“<term refersTo="#term-debt-instrument">Debt instrument</term>” has the same meaning as in section 142Y.</p></content></subsection><subsection><num>(6)</num><intro><p>“<term refersTo="#term-the-appropriate-regulator">The appropriate regulator</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include a ring-fenced body that is a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking include one or more PRA-authorised persons but do not include any authorised person that is not a PRA-authorised person, the PRA;</p></content></level><level class="para1"><num>(c)</num><content><p>where the subsidiary undertakings of the qualifying parent undertaking do not include any PRA-authorised person, the FCA;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the PRA or the FCA.</p></content></level></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-133-2"><num>(2)</num><intro><p>In section 192K of FSMA 2000 (power to impose penalty or issue censure)—</p></intro><level class="para1" eId="section-133-2-a"><num>(a)</num><content><p><mod>in subsection (1), after “section 192J” insert <quotedText>“
or 192JB
”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-133-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>This section also applies if a regulator is satisfied that a person (“P”) who is or has been a parent undertaking of a ring-fenced body has contravened a provision of rules made by that regulator under section 192JA.</p></content></subsection></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-2-a"><num>(a)</num><content><p><mod>in subsection (1), after “section 192J” insert <quotedText>“
or 192JB
”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-133-2-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>This section also applies if a regulator is satisfied that a person (“P”) who is or has been a parent undertaking of a ring-fenced body has contravened a provision of rules made by that regulator under section 192JA.</p></content></subsection></quotedStructure></mod></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-meetings-with-auditors"><heading><i>Meetings with auditors</i></heading><section eId="section-134"><num>134</num><heading>Duty to meet auditors of certain institutions</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Part 22 of FSMA 2000 (auditors and actuaries) is amended as follows.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><content><p><mod>After section 339A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>339B</num><heading> Duty to meet auditors of certain institutions</heading><subsection><num>(1)</num><intro><p>The FCA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The PRA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>The annual report of each regulator must include the number of meetings that have taken place during the period to which the report relates between the regulator and auditors of PRA-authorised persons to which section 339C applies.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) “<term refersTo="#term-the-annual-report">the annual report</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the FCA, every report which it is required by paragraph 11 of Schedule 1ZA to make to the Treasury, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the PRA, every report which it is required by paragraph 19 of Schedule 1ZB to make to the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-auditor">auditor</term>” means an auditor appointed under or as a result of a statutory provision.</p></content></subsection></section><section><num>339C</num><heading>PRA-authorised persons to which this section applies</heading><subsection><num>(1)</num><intro><p>This section applies to a PRA-authorised person which—</p></intro><level class="para1"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1"><num>(b)</num><content><p>meets condition A or B,</p></content></level><level class="para1"><num>(c)</num><content><p>is not an insurer or a credit union, and</p></content></level><level class="para1"><num>(d)</num><content><p>is, in the opinion of the PRA, important to the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system.</p></content></level></subsection><subsection><num>(2)</num><content><p>Condition A is that the person has permission under Part 4A to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person is an investment firm that has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1"><num>(b)</num><content><p>when carried on by the person, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-insurer">insurer</term>” means an institution which is authorised under this Act to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;</p></content></level><level class="para1"><num>(c)</num><content><p>“<term refersTo="#term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection><num>(5)</num><content><p>Subsections (2), (3) and (4)(b) are to be read in accordance with Schedule 2, taken together with any order under section 22.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-134-3"><num>(3)</num><content><p><mod>The italic cross-heading before section 339A becomes <quotedText>“
<i>General duties of regulator</i>
”</quotedText>.</mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-134"><num>134</num><heading>Duty to meet auditors of certain institutions</heading><subsection eId="section-134-1"><num>(1)</num><content><p>Part 22 of FSMA 2000 (auditors and actuaries) is amended as follows.</p></content></subsection><subsection eId="section-134-2"><num>(2)</num><content><p><mod>After section 339A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>339B</num><heading> Duty to meet auditors of certain institutions</heading><subsection><num>(1)</num><intro><p>The FCA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The PRA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>The annual report of each regulator must include the number of meetings that have taken place during the period to which the report relates between the regulator and auditors of PRA-authorised persons to which section 339C applies.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) “<term refersTo="#term-the-annual-report">the annual report</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the FCA, every report which it is required by paragraph 11 of Schedule 1ZA to make to the Treasury, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the PRA, every report which it is required by paragraph 19 of Schedule 1ZB to make to the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-auditor">auditor</term>” means an auditor appointed under or as a result of a statutory provision.</p></content></subsection></section><section><num>339C</num><heading>PRA-authorised persons to which this section applies</heading><subsection><num>(1)</num><intro><p>This section applies to a PRA-authorised person which—</p></intro><level class="para1"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1"><num>(b)</num><content><p>meets condition A or B,</p></content></level><level class="para1"><num>(c)</num><content><p>is not an insurer or a credit union, and</p></content></level><level class="para1"><num>(d)</num><content><p>is, in the opinion of the PRA, important to the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system.</p></content></level></subsection><subsection><num>(2)</num><content><p>Condition A is that the person has permission under Part 4A to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person is an investment firm that has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1"><num>(b)</num><content><p>when carried on by the person, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-insurer">insurer</term>” means an institution which is authorised under this Act to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;</p></content></level><level class="para1"><num>(c)</num><content><p>“<term refersTo="#term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection><num>(5)</num><content><p>Subsections (2), (3) and (4)(b) are to be read in accordance with Schedule 2, taken together with any order under section 22.</p></content></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-134-3"><num>(3)</num><content><p><mod>The italic cross-heading before section 339A becomes <quotedText>“
<i>General duties of regulator</i>
”</quotedText>.</mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-1"><num>(1)</num><content><p>Part 22 of FSMA 2000 (auditors and actuaries) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-134-2"><num>(2)</num><content><p><mod>After section 339A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>339B</num><heading> Duty to meet auditors of certain institutions</heading><subsection><num>(1)</num><intro><p>The FCA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(2)</num><intro><p>The PRA must make arrangements for meetings to take place at least once a year between—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the auditor of any PRA-authorised person to which section 339C applies.</p></content></level></subsection><subsection><num>(3)</num><content><p>The annual report of each regulator must include the number of meetings that have taken place during the period to which the report relates between the regulator and auditors of PRA-authorised persons to which section 339C applies.</p></content></subsection><subsection><num>(4)</num><intro><p>In subsection (3) “<term refersTo="#term-the-annual-report">the annual report</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to the FCA, every report which it is required by paragraph 11 of Schedule 1ZA to make to the Treasury, and</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to the PRA, every report which it is required by paragraph 19 of Schedule 1ZB to make to the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-auditor">auditor</term>” means an auditor appointed under or as a result of a statutory provision.</p></content></subsection></section><section><num>339C</num><heading>PRA-authorised persons to which this section applies</heading><subsection><num>(1)</num><intro><p>This section applies to a PRA-authorised person which—</p></intro><level class="para1"><num>(a)</num><content><p>is a <abbr class="acronym" title="United Kingdom">UK</abbr> institution,</p></content></level><level class="para1"><num>(b)</num><content><p>meets condition A or B,</p></content></level><level class="para1"><num>(c)</num><content><p>is not an insurer or a credit union, and</p></content></level><level class="para1"><num>(d)</num><content><p>is, in the opinion of the PRA, important to the stability of the <abbr class="acronym" title="United Kingdom">UK</abbr> financial system.</p></content></level></subsection><subsection><num>(2)</num><content><p>Condition A is that the person has permission under Part 4A to carry on the regulated activity of accepting deposits.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition B is that—</p></intro><level class="para1"><num>(a)</num><content><p>the person is an investment firm that has permission under Part 4A to carry on the regulated activity of dealing in investments as principal, and</p></content></level><level class="para1"><num>(b)</num><content><p>when carried on by the person, that activity is a PRA-regulated activity.</p></content></level></subsection><subsection><num>(4)</num><intro><p>In this section—</p></intro><level class="para1"><num>(a)</num><content><p>“<term refersTo="#term-uk-institution"><abbr class="acronym" title="United Kingdom">UK</abbr> institution</term>” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-insurer">insurer</term>” means an institution which is authorised under this Act to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;</p></content></level><level class="para1"><num>(c)</num><content><p>“<term refersTo="#term-credit-union">credit union</term>” 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.</p></content></level></subsection><subsection><num>(5)</num><content><p>Subsections (2), (3) and (4)(b) are to be read in accordance with Schedule 2, taken together with any order under section 22.</p></content></subsection></section></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-3"><num>(3)</num><content><p><mod>The italic cross-heading before section 339A becomes <quotedText>“
<i>General duties of regulator</i>
”</quotedText>.</mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-fees-to-meet-treasury-expenditure"><heading><i>Fees to meet Treasury expenditure</i></heading><section eId="section-135"><num>135</num><heading>Fees to meet Treasury expenditure relating to international organisations</heading><subsection eId="section-135-1"><num>(1)</num><content><p><mod>After section 410 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Fees to meet Treasury expenses</i></heading><section><num>410A</num><heading>Fees to meet certain expenses of the Treasury</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1"><num>(a)</num><content><p>enable the Treasury from time to time by direction to require the FCA, the PRA or the Bank of England (each a “regulator”) to require the payment of fees by relevant persons, or such class of relevant person as may be specified in, or determined by the regulator in accordance with, the direction, for the purpose of meeting relevant expenses incurred by the Treasury;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about how the regulator to which a direction is given is to comply with the direction;</p></content></level><level class="para1"><num>(c)</num><content><p>require the regulator to pay to the Treasury, by such time or times as may be specified in the direction, the amount of any fees received by the regulator.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“Relevant expenses” are expenses (including any expenses of a capital nature) which are attributable to United Kingdom membership of, or Treasury participation in, a prescribed international organisation so far as those expenses—</p></intro><level class="para1"><num>(a)</num><content><p>represent a contribution (by way of subscription or otherwise) to the resources of the international organisation, and</p></content></level><level class="para1"><num>(b)</num><content><p>are in the opinion of the Treasury attributable to functions of the organisation which relate to financial stability or financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulations must provide for the charging of fees in pursuance of a direction given under the regulations to the FCA or the PRA to be by rules made by that regulator.</p></content></subsection><subsection><num>(4)</num><intro><p>The provisions of Chapter 2 of Part 9A apply to rules of the FCA or the PRA providing for the charging of fees in pursuance of a direction given under the regulations—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the FCA, as they apply to rules relating to the payment of fees under paragraph 23 of Schedule 1ZA;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the PRA, as they apply to rules relating to the payment of fees under paragraph 31 of Schedule 1ZB.</p></content></level></subsection><subsection><num>(5)</num><content><p>Paragraph 36(1) of Schedule 17A applies to the charging of fees by the Bank of England in pursuance of a direction given to the Bank under the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>make provision about what is, or is not, to be regarded as an expense;</p></content></level><level class="para1"><num>(b)</num><content><p>specify requirements that the Treasury must comply with before giving a direction;</p></content></level><level class="para1"><num>(c)</num><content><p>enable a direction to be varied or revoked by a subsequent direction;</p></content></level><level class="para1"><num>(d)</num><content><p>confer functions on a regulator.</p></content></level></subsection><subsection><num>(7)</num><intro><p>An amount payable to a regulator as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>any provision of rules made by the FCA or the PRA as a result of the regulations, or</p></content></level><level class="para1"><num>(b)</num><content><p>the imposition of fees by the Bank of England as a result of a direction given under the regulations to the Bank,</p></content></level><wrapUp><p>may be recovered as a debt due to the regulator.</p></wrapUp></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-relevant-persons">Relevant persons</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a direction given to the PRA, PRA-authorised persons;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a direction given to the FCA, authorised persons and recognised investment exchanges who (in either case) are not PRA-authorised persons;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of a direction given to the Bank of England, recognised clearing houses, other than those falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(9)</num><content><p>This section is subject to section 410B.</p></content></subsection></section><section><num>410B</num><heading>Directions in pursuance of section 410A</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-a-fees-direction">a fees direction</term>” means a direction given by the Treasury as a result of regulations under section 410A.</p></content></subsection><subsection><num>(2)</num><content><p>Before giving a fees direction to the FCA, the PRA or the Bank of England (each a “regulator”), the Treasury must consult the regulator concerned.</p></content></subsection><subsection><num>(3)</num><intro><p>A fees direction must—</p></intro><level class="para1"><num>(a)</num><content><p>be in writing;</p></content></level><level class="para1"><num>(b)</num><content><p>except in the case of a direction that revokes a previous direction or a direction that varies a previous direction without affecting the total amount intended to be raised by the fees, specify the total amount intended to be raised by the fees to be charged by the regulator and explain how that amount is calculated;</p></content></level><level class="para1"><num>(c)</num><content><p>contain such other information as may be prescribed.</p></content></level></subsection><subsection><num>(4)</num><content><p>As soon as practicable after giving a fees direction, the Treasury must lay before Parliament a copy of the direction.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>In section 3A of FSMA 2000 (meaning of “regulator”), in subsection (3)—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (a), and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the meaning of “regulator” in sections 410A and 410B (fees to meet certain expenses of Treasury).</p></content></level></quotedStructure></mod></p></content></level></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135"><num>135</num><heading>Fees to meet Treasury expenditure relating to international organisations</heading><subsection eId="section-135-1"><num>(1)</num><content><p><mod>After section 410 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Fees to meet Treasury expenses</i></heading><section><num>410A</num><heading>Fees to meet certain expenses of the Treasury</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1"><num>(a)</num><content><p>enable the Treasury from time to time by direction to require the FCA, the PRA or the Bank of England (each a “regulator”) to require the payment of fees by relevant persons, or such class of relevant person as may be specified in, or determined by the regulator in accordance with, the direction, for the purpose of meeting relevant expenses incurred by the Treasury;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about how the regulator to which a direction is given is to comply with the direction;</p></content></level><level class="para1"><num>(c)</num><content><p>require the regulator to pay to the Treasury, by such time or times as may be specified in the direction, the amount of any fees received by the regulator.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“Relevant expenses” are expenses (including any expenses of a capital nature) which are attributable to United Kingdom membership of, or Treasury participation in, a prescribed international organisation so far as those expenses—</p></intro><level class="para1"><num>(a)</num><content><p>represent a contribution (by way of subscription or otherwise) to the resources of the international organisation, and</p></content></level><level class="para1"><num>(b)</num><content><p>are in the opinion of the Treasury attributable to functions of the organisation which relate to financial stability or financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulations must provide for the charging of fees in pursuance of a direction given under the regulations to the FCA or the PRA to be by rules made by that regulator.</p></content></subsection><subsection><num>(4)</num><intro><p>The provisions of Chapter 2 of Part 9A apply to rules of the FCA or the PRA providing for the charging of fees in pursuance of a direction given under the regulations—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the FCA, as they apply to rules relating to the payment of fees under paragraph 23 of Schedule 1ZA;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the PRA, as they apply to rules relating to the payment of fees under paragraph 31 of Schedule 1ZB.</p></content></level></subsection><subsection><num>(5)</num><content><p>Paragraph 36(1) of Schedule 17A applies to the charging of fees by the Bank of England in pursuance of a direction given to the Bank under the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>make provision about what is, or is not, to be regarded as an expense;</p></content></level><level class="para1"><num>(b)</num><content><p>specify requirements that the Treasury must comply with before giving a direction;</p></content></level><level class="para1"><num>(c)</num><content><p>enable a direction to be varied or revoked by a subsequent direction;</p></content></level><level class="para1"><num>(d)</num><content><p>confer functions on a regulator.</p></content></level></subsection><subsection><num>(7)</num><intro><p>An amount payable to a regulator as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>any provision of rules made by the FCA or the PRA as a result of the regulations, or</p></content></level><level class="para1"><num>(b)</num><content><p>the imposition of fees by the Bank of England as a result of a direction given under the regulations to the Bank,</p></content></level><wrapUp><p>may be recovered as a debt due to the regulator.</p></wrapUp></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-relevant-persons">Relevant persons</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a direction given to the PRA, PRA-authorised persons;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a direction given to the FCA, authorised persons and recognised investment exchanges who (in either case) are not PRA-authorised persons;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of a direction given to the Bank of England, recognised clearing houses, other than those falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(9)</num><content><p>This section is subject to section 410B.</p></content></subsection></section><section><num>410B</num><heading>Directions in pursuance of section 410A</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-a-fees-direction">a fees direction</term>” means a direction given by the Treasury as a result of regulations under section 410A.</p></content></subsection><subsection><num>(2)</num><content><p>Before giving a fees direction to the FCA, the PRA or the Bank of England (each a “regulator”), the Treasury must consult the regulator concerned.</p></content></subsection><subsection><num>(3)</num><intro><p>A fees direction must—</p></intro><level class="para1"><num>(a)</num><content><p>be in writing;</p></content></level><level class="para1"><num>(b)</num><content><p>except in the case of a direction that revokes a previous direction or a direction that varies a previous direction without affecting the total amount intended to be raised by the fees, specify the total amount intended to be raised by the fees to be charged by the regulator and explain how that amount is calculated;</p></content></level><level class="para1"><num>(c)</num><content><p>contain such other information as may be prescribed.</p></content></level></subsection><subsection><num>(4)</num><content><p>As soon as practicable after giving a fees direction, the Treasury must lay before Parliament a copy of the direction.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection><subsection eId="section-135-2"><num>(2)</num><intro><p>In section 3A of FSMA 2000 (meaning of “regulator”), in subsection (3)—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (a), and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the meaning of “regulator” in sections 410A and 410B (fees to meet certain expenses of Treasury).</p></content></level></quotedStructure></mod></p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135-1"><num>(1)</num><content><p><mod>After section 410 of FSMA 2000 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Fees to meet Treasury expenses</i></heading><section><num>410A</num><heading>Fees to meet certain expenses of the Treasury</heading><subsection><num>(1)</num><intro><p>The Treasury may by regulations—</p></intro><level class="para1"><num>(a)</num><content><p>enable the Treasury from time to time by direction to require the FCA, the PRA or the Bank of England (each a “regulator”) to require the payment of fees by relevant persons, or such class of relevant person as may be specified in, or determined by the regulator in accordance with, the direction, for the purpose of meeting relevant expenses incurred by the Treasury;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about how the regulator to which a direction is given is to comply with the direction;</p></content></level><level class="para1"><num>(c)</num><content><p>require the regulator to pay to the Treasury, by such time or times as may be specified in the direction, the amount of any fees received by the regulator.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“Relevant expenses” are expenses (including any expenses of a capital nature) which are attributable to United Kingdom membership of, or Treasury participation in, a prescribed international organisation so far as those expenses—</p></intro><level class="para1"><num>(a)</num><content><p>represent a contribution (by way of subscription or otherwise) to the resources of the international organisation, and</p></content></level><level class="para1"><num>(b)</num><content><p>are in the opinion of the Treasury attributable to functions of the organisation which relate to financial stability or financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>The regulations must provide for the charging of fees in pursuance of a direction given under the regulations to the FCA or the PRA to be by rules made by that regulator.</p></content></subsection><subsection><num>(4)</num><intro><p>The provisions of Chapter 2 of Part 9A apply to rules of the FCA or the PRA providing for the charging of fees in pursuance of a direction given under the regulations—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the FCA, as they apply to rules relating to the payment of fees under paragraph 23 of Schedule 1ZA;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of the PRA, as they apply to rules relating to the payment of fees under paragraph 31 of Schedule 1ZB.</p></content></level></subsection><subsection><num>(5)</num><content><p>Paragraph 36(1) of Schedule 17A applies to the charging of fees by the Bank of England in pursuance of a direction given to the Bank under the regulations.</p></content></subsection><subsection><num>(6)</num><intro><p>The regulations may in particular—</p></intro><level class="para1"><num>(a)</num><content><p>make provision about what is, or is not, to be regarded as an expense;</p></content></level><level class="para1"><num>(b)</num><content><p>specify requirements that the Treasury must comply with before giving a direction;</p></content></level><level class="para1"><num>(c)</num><content><p>enable a direction to be varied or revoked by a subsequent direction;</p></content></level><level class="para1"><num>(d)</num><content><p>confer functions on a regulator.</p></content></level></subsection><subsection><num>(7)</num><intro><p>An amount payable to a regulator as a result of—</p></intro><level class="para1"><num>(a)</num><content><p>any provision of rules made by the FCA or the PRA as a result of the regulations, or</p></content></level><level class="para1"><num>(b)</num><content><p>the imposition of fees by the Bank of England as a result of a direction given under the regulations to the Bank,</p></content></level><wrapUp><p>may be recovered as a debt due to the regulator.</p></wrapUp></subsection><subsection><num>(8)</num><intro><p>“<term refersTo="#term-relevant-persons">Relevant persons</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of a direction given to the PRA, PRA-authorised persons;</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of a direction given to the FCA, authorised persons and recognised investment exchanges who (in either case) are not PRA-authorised persons;</p></content></level><level class="para1"><num>(c)</num><content><p>in the case of a direction given to the Bank of England, recognised clearing houses, other than those falling within paragraph (a) or (b).</p></content></level></subsection><subsection><num>(9)</num><content><p>This section is subject to section 410B.</p></content></subsection></section><section><num>410B</num><heading>Directions in pursuance of section 410A</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-a-fees-direction">a fees direction</term>” means a direction given by the Treasury as a result of regulations under section 410A.</p></content></subsection><subsection><num>(2)</num><content><p>Before giving a fees direction to the FCA, the PRA or the Bank of England (each a “regulator”), the Treasury must consult the regulator concerned.</p></content></subsection><subsection><num>(3)</num><intro><p>A fees direction must—</p></intro><level class="para1"><num>(a)</num><content><p>be in writing;</p></content></level><level class="para1"><num>(b)</num><content><p>except in the case of a direction that revokes a previous direction or a direction that varies a previous direction without affecting the total amount intended to be raised by the fees, specify the total amount intended to be raised by the fees to be charged by the regulator and explain how that amount is calculated;</p></content></level><level class="para1"><num>(c)</num><content><p>contain such other information as may be prescribed.</p></content></level></subsection><subsection><num>(4)</num><content><p>As soon as practicable after giving a fees direction, the Treasury must lay before Parliament a copy of the direction.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-135-2"><num>(2)</num><intro><p>In section 3A of FSMA 2000 (meaning of “regulator”), in subsection (3)—</p></intro><level class="para1" eId="section-135-2-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (a), and</p></content></level><level class="para1" eId="section-135-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the meaning of “regulator” in sections 410A and 410B (fees to meet certain expenses of Treasury).</p></content></level></quotedStructure></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-2-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (a), and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-135-2-b"><num>(b)</num><content><p><mod>after paragraph (b) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>the meaning of “regulator” in sections 410A and 410B (fees to meet certain expenses of Treasury).</p></content></level></quotedStructure></mod></p></content></level>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-parliamentary-control-of-statutory-instruments-under-fsma-2000"><heading><i>Parliamentary control of statutory instruments under </i>FSMA 2000</heading><section eId="section-136"><num>136</num><heading>Amendments of section 429 of FSMA 2000</heading><subsection eId="section-136-1"><num>(1)</num><content><p>Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is amended as follows.</p></content></subsection><subsection eId="section-136-2"><num>(2)</num><intro><p>In subsection (1)(a) (orders subject to affirmative procedure)—</p></intro><level class="para1" eId="section-136-2-a"><num><noteRef href="#key-fb91f2533f3c485ee98e14ee811818be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-136-2-b"><num>(b)</num><content><p><mod>for “144(4), 192(b) or (e), 138K(6)(c)” substitute <quotedText>“
138K(6)(c), 144(4), 192(b) or (e)
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-136-3"><num>(3)</num><content><p><mod>In subsection (2) (regulations subject to affirmative procedure), after “90B,” insert <quotedText>“
142W,
”</quotedText>.</mod></p></content></subsection><subsection eId="section-136-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Regulations to which subsection (2B) applies are not to be made unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.</p></content></subsection><subsection><num>(2B)</num><content><p>This subsection applies to regulations which contain provision made under section 410A, other than provision made only by virtue of subsection (2) of that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-136-5"><num>(5)</num><content><p><mod>In subsection (8), for “or 23A” substitute <quotedText>“
, 23A or 142Z
”</quotedText>.</mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-136"><num>136</num><heading>Amendments of section 429 of FSMA 2000</heading><subsection eId="section-136-1"><num>(1)</num><content><p>Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is amended as follows.</p></content></subsection><subsection eId="section-136-2"><num>(2)</num><intro><p>In subsection (1)(a) (orders subject to affirmative procedure)—</p></intro><level class="para1" eId="section-136-2-a"><num><noteRef href="#key-fb91f2533f3c485ee98e14ee811818be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-136-2-b"><num>(b)</num><content><p><mod>for “144(4), 192(b) or (e), 138K(6)(c)” substitute <quotedText>“
138K(6)(c), 144(4), 192(b) or (e)
”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-136-3"><num>(3)</num><content><p><mod>In subsection (2) (regulations subject to affirmative procedure), after “90B,” insert <quotedText>“
142W,
”</quotedText>.</mod></p></content></subsection><subsection eId="section-136-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Regulations to which subsection (2B) applies are not to be made unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.</p></content></subsection><subsection><num>(2B)</num><content><p>This subsection applies to regulations which contain provision made under section 410A, other than provision made only by virtue of subsection (2) of that section.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-136-5"><num>(5)</num><content><p><mod>In subsection (8), for “or 23A” substitute <quotedText>“
, 23A or 142Z
”</quotedText>.</mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-136-1"><num>(1)</num><content><p>Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-136-2"><num>(2)</num><intro><p>In subsection (1)(a) (orders subject to affirmative procedure)—</p></intro><level class="para1" eId="section-136-2-a"><num><noteRef href="#key-fb91f2533f3c485ee98e14ee811818be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-136-2-b"><num>(b)</num><content><p><mod>for “144(4), 192(b) or (e), 138K(6)(c)” substitute <quotedText>“
138K(6)(c), 144(4), 192(b) or (e)
”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-136-2-a"><num><noteRef href="#key-fb91f2533f3c485ee98e14ee811818be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-136-2-b"><num>(b)</num><content><p><mod>for “144(4), 192(b) or (e), 138K(6)(c)” substitute <quotedText>“
138K(6)(c), 144(4), 192(b) or (e)
”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-136-3"><num>(3)</num><content><p><mod>In subsection (2) (regulations subject to affirmative procedure), after “90B,” insert <quotedText>“
142W,
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-136-4"><num>(4)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Regulations to which subsection (2B) applies are not to be made unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.</p></content></subsection><subsection><num>(2B)</num><content><p>This subsection applies to regulations which contain provision made under section 410A, other than provision made only by virtue of subsection (2) of that section.</p></content></subsection></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-136-5"><num>(5)</num><content><p><mod>In subsection (8), for “or 23A” substitute <quotedText>“
, 23A or 142Z
”</quotedText>.</mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-bank-of-england"><heading><i>Bank of England</i></heading><section eId="section-137"><num>137</num><heading>Accounts of Bank of England and its wholly-owned subsidiaries</heading><subsection eId="section-137-1"><num>(1)</num><content><p>The Bank of England Act 1998 is amended as follows.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p><mod>In section 7 (accounts), in subsection (4), for the words from “appropriate” to the end substitute <quotedText>“
necessary to do so having regard to the Financial Stability Objective
”</quotedText>.</mod></p></content></subsection><subsection eId="section-137-3"><num>(3)</num><content><p><mod>After section 7 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>7A</num><heading>Accounts of companies wholly owned by the Bank</heading><subsection><num>(1)</num><content><p>If the Bank considers it necessary to do so having regard to the Financial Stability Objective, the Bank may by direction to a qualifying company exclude the application to the qualifying company of any of the relevant Companies Act requirements.</p></content></subsection><subsection><num>(2)</num><content><p>The relevant Companies Act requirements are the requirements to which the directors of the qualifying company would otherwise be subject under the Companies Act 2006 (except sections 412 and 413 (directors' benefits)) in relation to the preparation of accounts under section 394 of that Act.</p></content></subsection><subsection><num>(3)</num><content><p>A direction under subsection (1) may relate to one or more specified accounting periods of the qualifying company, or to a specified accounting period and all subsequent accounting periods of the qualifying company.</p></content></subsection><subsection><num>(4)</num><content><p>The Bank must consult the Treasury before giving a direction under subsection (1).</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury may by notice in writing to the Bank require it to publish in such manner as it thinks fit such information relating to the accounts of a qualifying company as the Treasury may specify in the notice.</p></content></subsection><subsection><num>(6)</num><content><p>The information specified in a notice under subsection (5) may include information which as a result of a direction under subsection (1) was excluded from accounts prepared in accordance with the Companies Act 2006.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury must consult the Bank before giving a notice under subsection (5).</p></content></subsection><subsection><num>(8)</num><content><p>A direction under subsection (1) or a notice under subsection (5) may be revoked by a subsequent direction or notice (as the case may be).</p></content></subsection><subsection><num>(9)</num><intro><p>“<term refersTo="#term-qualifying-company">Qualifying company</term>” means any company which is wholly owned by the Bank other than—</p></intro><level class="para1"><num>(a)</num><content><p>the Prudential Regulation Authority, or</p></content></level><level class="para1"><num>(b)</num><content><p>a company which is a bridge bank for the purposes of section 12(3) of the Banking Act 2009.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of subsection (9), a company is wholly owned by the Bank if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a company of which no person other than the Bank or a nominee of the Bank is a member, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a wholly-owned subsidiary of a company within paragraph (a).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-137"><num>137</num><heading>Accounts of Bank of England and its wholly-owned subsidiaries</heading><subsection eId="section-137-1"><num>(1)</num><content><p>The Bank of England Act 1998 is amended as follows.</p></content></subsection><subsection eId="section-137-2"><num>(2)</num><content><p><mod>In section 7 (accounts), in subsection (4), for the words from “appropriate” to the end substitute <quotedText>“
necessary to do so having regard to the Financial Stability Objective
”</quotedText>.</mod></p></content></subsection><subsection eId="section-137-3"><num>(3)</num><content><p><mod>After section 7 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>7A</num><heading>Accounts of companies wholly owned by the Bank</heading><subsection><num>(1)</num><content><p>If the Bank considers it necessary to do so having regard to the Financial Stability Objective, the Bank may by direction to a qualifying company exclude the application to the qualifying company of any of the relevant Companies Act requirements.</p></content></subsection><subsection><num>(2)</num><content><p>The relevant Companies Act requirements are the requirements to which the directors of the qualifying company would otherwise be subject under the Companies Act 2006 (except sections 412 and 413 (directors' benefits)) in relation to the preparation of accounts under section 394 of that Act.</p></content></subsection><subsection><num>(3)</num><content><p>A direction under subsection (1) may relate to one or more specified accounting periods of the qualifying company, or to a specified accounting period and all subsequent accounting periods of the qualifying company.</p></content></subsection><subsection><num>(4)</num><content><p>The Bank must consult the Treasury before giving a direction under subsection (1).</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury may by notice in writing to the Bank require it to publish in such manner as it thinks fit such information relating to the accounts of a qualifying company as the Treasury may specify in the notice.</p></content></subsection><subsection><num>(6)</num><content><p>The information specified in a notice under subsection (5) may include information which as a result of a direction under subsection (1) was excluded from accounts prepared in accordance with the Companies Act 2006.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury must consult the Bank before giving a notice under subsection (5).</p></content></subsection><subsection><num>(8)</num><content><p>A direction under subsection (1) or a notice under subsection (5) may be revoked by a subsequent direction or notice (as the case may be).</p></content></subsection><subsection><num>(9)</num><intro><p>“<term refersTo="#term-qualifying-company">Qualifying company</term>” means any company which is wholly owned by the Bank other than—</p></intro><level class="para1"><num>(a)</num><content><p>the Prudential Regulation Authority, or</p></content></level><level class="para1"><num>(b)</num><content><p>a company which is a bridge bank for the purposes of section 12(3) of the Banking Act 2009.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of subsection (9), a company is wholly owned by the Bank if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a company of which no person other than the Bank or a nominee of the Bank is a member, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a wholly-owned subsidiary of a company within paragraph (a).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-137-1"><num>(1)</num><content><p>The Bank of England Act 1998 is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-137-2"><num>(2)</num><content><p><mod>In section 7 (accounts), in subsection (4), for the words from “appropriate” to the end substitute <quotedText>“
necessary to do so having regard to the Financial Stability Objective
”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-137-3"><num>(3)</num><content><p><mod>After section 7 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>7A</num><heading>Accounts of companies wholly owned by the Bank</heading><subsection><num>(1)</num><content><p>If the Bank considers it necessary to do so having regard to the Financial Stability Objective, the Bank may by direction to a qualifying company exclude the application to the qualifying company of any of the relevant Companies Act requirements.</p></content></subsection><subsection><num>(2)</num><content><p>The relevant Companies Act requirements are the requirements to which the directors of the qualifying company would otherwise be subject under the Companies Act 2006 (except sections 412 and 413 (directors' benefits)) in relation to the preparation of accounts under section 394 of that Act.</p></content></subsection><subsection><num>(3)</num><content><p>A direction under subsection (1) may relate to one or more specified accounting periods of the qualifying company, or to a specified accounting period and all subsequent accounting periods of the qualifying company.</p></content></subsection><subsection><num>(4)</num><content><p>The Bank must consult the Treasury before giving a direction under subsection (1).</p></content></subsection><subsection><num>(5)</num><content><p>The Treasury may by notice in writing to the Bank require it to publish in such manner as it thinks fit such information relating to the accounts of a qualifying company as the Treasury may specify in the notice.</p></content></subsection><subsection><num>(6)</num><content><p>The information specified in a notice under subsection (5) may include information which as a result of a direction under subsection (1) was excluded from accounts prepared in accordance with the Companies Act 2006.</p></content></subsection><subsection><num>(7)</num><content><p>The Treasury must consult the Bank before giving a notice under subsection (5).</p></content></subsection><subsection><num>(8)</num><content><p>A direction under subsection (1) or a notice under subsection (5) may be revoked by a subsequent direction or notice (as the case may be).</p></content></subsection><subsection><num>(9)</num><intro><p>“<term refersTo="#term-qualifying-company">Qualifying company</term>” means any company which is wholly owned by the Bank other than—</p></intro><level class="para1"><num>(a)</num><content><p>the Prudential Regulation Authority, or</p></content></level><level class="para1"><num>(b)</num><content><p>a company which is a bridge bank for the purposes of section 12(3) of the Banking Act 2009.</p></content></level></subsection><subsection><num>(10)</num><intro><p>For the purposes of subsection (9), a company is wholly owned by the Bank if—</p></intro><level class="para1"><num>(a)</num><content><p>it is a company of which no person other than the Bank or a nominee of the Bank is a member, or</p></content></level><level class="para1"><num>(b)</num><content><p>it is a wholly-owned subsidiary of a company within paragraph (a).</p></content></level></subsection></section></quotedStructure></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-building-societies"><heading><i>Building societies</i></heading><section eId="section-138"><num>138</num><heading>Building societies</heading><content><p>Schedule 9 (which contains provision about building societies) has effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-138"><num>138</num><heading>Building societies</heading><content><p>Schedule 9 (which contains provision about building societies) has effect.</p></content></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-claims-management-services"><heading><i>Claims management services</i></heading><section eId="section-139"><num><noteRef href="#key-c4947653a2291915eaed7829b13a936e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>139</num><heading>Power to impose penalties on persons providing claims management services</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section><section eId="section-140"><num><noteRef href="#key-d7549e95c5a7e6826be2406be0719696" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>140</num><heading>Recovery of expenditure incurred by Office for Legal Complaints</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-139"><num><noteRef href="#key-c4947653a2291915eaed7829b13a936e" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>139</num><heading>Power to impose penalties on persons providing claims management services</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139-1"><num>(1)</num><content><p>The Schedule to the Compensation Act 2006 (claims management regulations) is amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-139-2"><num>(2)</num><content><p><mod>In paragraph 8 (rules about conduct of authorised persons), in sub-paragraph (2)(b), after sub-paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(ia)</num><content><p>provision enabling the Regulator to require an authorised person to pay a penalty;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-139-3"><num>(3)</num><content><p><mod>In paragraph 9 (codes of practice about conduct of authorised persons), in sub-paragraph (2)(b), after sub-paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para2"><num>(ia)</num><content><p>enable the Regulator to require an authorised person to pay a penalty;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-139-4"><num>(4)</num><content><p><mod>In paragraph 10 (complaints about conduct of authorised persons), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(3)</num><content><p>Regulations under sub-paragraph (1) may enable the Regulator to require an authorised person to pay a penalty.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139-5"><num>(5)</num><content><p>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”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139-6"><num>(6)</num><content><p>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,”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-139-7"><num>(7)</num><content><p><mod>After paragraph 15 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7"><heading>Penalties: supplementary provision</heading><paragraph class="schProv1"><num>16</num><subparagraph><num>(1)</num><content><p>This paragraph applies in any case where regulations include provision enabling the Regulator to require an authorised person to pay a penalty.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>The regulations—</p></intro><level class="para1"><num>(a)</num><content><p>shall include provision about how the Regulator is to determine the amount of a penalty, and</p></content></level><level class="para1"><num>(b)</num><content><p>may, in particular, include provision specifying a minimum or maximum amount.</p></content></level></subparagraph><subparagraph><num>(3)</num><intro><p>The regulations—</p></intro><level class="para1"><num>(a)</num><content><p>shall provide for income from penalties imposed by the Regulator to be paid into the Consolidated Fund, but</p></content></level><level class="para1"><num>(b)</num><content><p>may provide that such income is to be paid into the Consolidated Fund after the deduction of costs incurred by the Regulator in collecting, or enforcing the payment of, such penalties.</p></content></level></subparagraph><subparagraph><num>(4)</num><intro><p>The regulations may also include, in particular—</p></intro><level class="para1"><num>(a)</num><content><p>provision for a penalty imposed by the Regulator to be enforced as a debt;</p></content></level><level class="para1"><num>(b)</num><content><p>provision specifying conditions that must be met before any action to enforce a penalty may be taken.</p></content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-139-8"><num>(8)</num><intro><p>In section 13 of the Compensation Act 2006 (appeals and references to Tribunal)—</p></intro><level class="para1" eId="section-139-8-a"><num>(a)</num><content><p><mod>in subsection (1), omit the “or” at the end of paragraph (d) and after paragraph (e) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(f)</num><content><p>imposes a penalty on the person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-139-8-b"><num>(b)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><intro><p>A person who is appealing to the Tribunal against a decision to impose a penalty may appeal against—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="section-139-8-c"><num>(c)</num><content><p><mod>in subsection (3), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(da)</num><content><p>may require a person to pay a penalty (which may be of a different amount from that of any penalty imposed by the Regulator);</p></content></level><level class="para1"><num>(db)</num><content><p>may vary any date by which a penalty, or any part of a penalty, is required to be paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-139-8-a"><num>(a)</num><content><p><mod>in subsection (1), omit the “or” at the end of paragraph (d) and after paragraph (e) insert <quotedText startQuote="“">, or</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(f)</num><content><p>imposes a penalty on the person.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-139-8-b"><num>(b)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1A)</num><intro><p>A person who is appealing to the Tribunal against a decision to impose a penalty may appeal against—</p></intro><level class="para1"><num>(a)</num><content><p>the imposition of the penalty,</p></content></level><level class="para1"><num>(b)</num><content><p>the amount of the penalty, or</p></content></level><level class="para1"><num>(c)</num><content><p>any date by which the penalty, or any part of it, is required to be paid.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-139-8-c"><num>(c)</num><content><p><mod>in subsection (3), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(da)</num><content><p>may require a person to pay a penalty (which may be of a different amount from that of any penalty imposed by the Regulator);</p></content></level><level class="para1"><num>(db)</num><content><p>may vary any date by which a penalty, or any part of a penalty, is required to be paid;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140"><num><noteRef href="#key-d7549e95c5a7e6826be2406be0719696" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>140</num><heading>Recovery of expenditure incurred by Office for Legal Complaints</heading><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140-1"><num>(1)</num><content><p>The Schedule to the Compensation Act 2006 (claims management regulations) is amended as set out in subsections <ref href="#section-140-2">(2)</ref> and <ref href="#section-140-3">(3)</ref>.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140-2"><num>(2)</num><content><p>The provision in paragraph 7 becomes sub-paragraph (1) of that paragraph.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140-3"><num>(3)</num><content><p><mod>In paragraph 7, after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><content><p>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.</p></content></subparagraph></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140-4"><num>(4)</num><content><p>The Legal Services Act 2007 is amended as set out in subsections (5) and (6).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140-5"><num>(5)</num><content><p><mod>After section 174 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>OLC expenditure relating to claims management services</heading><section><num>174A</num><heading>OLC expenditure relating to claims management services</heading><subsection><num>(1)</num><content><p>This section has effect at any time when no person is designated under section 5(1) of the Compensation Act 2006 (the Regulator in relation to claims management services).</p></content></subsection><subsection><num>(2)</num><content><p>In determining the leviable OLC expenditure for the purposes of section 173, any expenditure incurred, or income received, by the OLC in connection with the exercise of its functions in relation to claims management services is to be disregarded.</p></content></subsection><subsection><num>(3)</num><content><p>The Lord Chancellor may by regulations charge periodic fees for authorised persons for the purposes of meeting any costs incurred by the Lord Chancellor in respect of relevant OLC expenditure.</p></content></subsection><subsection><num>(4)</num><intro><p>“Relevant OLC expenditure” means the difference between—</p></intro><level class="para1"><num>(a)</num><content><p>any expenditure of the OLC incurred in connection with the exercise of its functions in relation to claims management services, and</p></content></level><level class="para1"><num>(b)</num><content><p>the aggregate of the amounts which the OLC pays into the Consolidated Fund under section 175(1)(g), (h) or (n), so far as relating to the exercise of its functions in relation to such services.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Regulations made under subsection (3) may, in particular—</p></intro><level class="para1"><num>(a)</num><content><p>permit the charging of different fees for different cases or circumstances (which may, in particular, be defined wholly or partly by reference to turnover or other criteria relating to an authorised person’s business);</p></content></level><level class="para1"><num>(b)</num><content><p>enable the person exercising functions of the Regulator under section 5(9) of the Compensation Act 2006 to collect fees on behalf of the Lord Chancellor;</p></content></level><level class="para1"><num>(c)</num><content><p>specify the consequences of failure to pay fees (which may include anything which could be specified in regulations under section 9 of that Act as a consequence of a failure to pay fees charged under those regulations).</p></content></level></subsection><subsection><num>(6)</num><content><p>In this section “authorised person” and “claims management services” have the same meaning as in Part 2 of the Compensation Act 2006 (see section 4 of that Act).</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-140-6"><num>(6)</num><content><p><mod>In section 206 (Parliamentary control of orders and regulations), in subsection (4), after paragraph (o) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(oa)</num><content><p>section 174A(3) (power to charge fees on persons providing claims management services);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-7-crossheading-minor-amendments"><heading><i>Minor amendments</i></heading><section eId="section-141"><num>141</num><heading>Minor amendments</heading><content><p>Schedule 10 (which contains amendments of, or connected with, the Financial Services Act 2012 and amendments of provisions amended by that Act) has effect.</p></content></section></hcontainer>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141"><num>141</num><heading>Minor amendments</heading><content><p>Schedule 10 (which contains amendments of, or connected with, the Financial Services Act 2012 and amendments of provisions amended by that Act) has effect.</p></content></section>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-8"><num><b>PART 8</b></num><heading>Final provisions</heading><section eId="section-142"><num>142</num><heading>Orders and regulations: general</heading><subsection eId="section-142-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-142-2"><num>(2)</num><content><p>Subsection (1) does not apply to an order under section 43 (payment systems: designation orders).</p></content></subsection><subsection eId="section-142-3"><num>(3)</num><intro><p>An order or regulations made by the Treasury, the Secretary of State or the Lord Chancellor under this Act may—</p></intro><level class="para1" eId="section-142-3-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-142-3-b"><num>(b)</num><content><p>contain such incidental or transitional provision as the person making the order or regulations considers appropriate.</p></content></level></subsection></section><section eId="section-143"><num>143</num><heading>Orders and regulations: Parliamentary control</heading><subsection eId="section-143-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-143-1-a"><num>(a)</num><content><p>the instrument contains only provision made under section 148 (commencement), or</p></content></level><level class="para1" eId="section-143-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-143-2"><num>(2)</num><intro><p>Subsection (3) applies to a statutory instrument that contains (with or without other provisions)—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>regulations under section 7 (building societies: power to make provision about ring-fencing);</p></content></level><level class="para1" eId="section-143-2-aa"><num><ins class="first" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a"><noteRef uk:name="commentary" href="#key-4a62b6fea9c87a492326148920b4767a" class="commentary"/>(aa)</ins></num><content><p><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">regulations under section 41(2C) (meaning of “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">”);</ins></p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>an order under section 41(4) (meaning of “payment system”);</p></content></level><level class="para1" eId="section-143-2-ba"><num><ins class="first" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231"><noteRef uk:name="commentary" href="#key-a948b59b009aed4455516ef6425b4231" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 102B (matters to consider when imposing generally applicable requirements);</ins></p></content></level><level class="para1" eId="section-143-2-bb"><num><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 104F (power to require imposition of generally applicable requirements);</ins></p></content></level><level class="para1" eId="section-143-2-c"><num>(c)</num><content><p>an order under section 145 (power to make further consequential amendments) that amends or repeals primary legislation;</p></content></level><level class="para1" eId="section-143-2-d"><num>(d)</num><content><p>an order under paragraph 6 of Schedule 6 (conduct of FMI administration).</p></content></level></subsection><subsection eId="section-143-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-143-4"><num>(4)</num><intro><p>In subsection (2)(c) “<term refersTo="#term-primary-legislation" eId="term-primary-legislation">primary legislation</term>” means—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>an Act of Parliament,</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>an Act of the Scottish Parliament,</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>a Measure or Act of the National Assembly for Wales, or</p></content></level><level class="para1" eId="section-143-4-d"><num>(d)</num><content><p>Northern Ireland legislation.</p></content></level></subsection></section><section eId="section-144"><num>144</num><heading>Interpretation</heading><intro><p>In this Act—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>an enactment contained in subordinate legislation,</p></content></level><level class="para1"><num>(b)</num><content><p>an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,</p></content></level><level class="para1"><num>(c)</num><content><p>an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales, and</p></content></level><level class="para1"><num>(d)</num><content><p>an enactment contained in, or in an instrument made under, Northern Ireland legislation;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-fsma-2000" eId="term-fsma-2000">FSMA 2000</term>” means the Financial Services and Markets Act 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-pra" eId="term-the-pra">the PRA</term>” means the Prudential Regulation Authority.</p></content></hcontainer></section><section eId="section-145"><num>145</num><heading>Power to make further consequential amendments</heading><subsection eId="section-145-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-145-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-145-2-a"><num>(a)</num><content><p>any enactment passed or made before the passing of this Act, and</p></content></level><level class="para1" eId="section-145-2-b"><num>(b)</num><content><p>any enactment passed or made on or before the last day of the Session in which this Act is passed.</p></content></level></subsection><subsection eId="section-145-3"><num>(3)</num><content><p>Amendments and repeals made under this section are additional to those made by or under any other provision of this Act.</p></content></subsection></section><section eId="section-146"><num>146</num><heading>Transitional provisions and savings</heading><subsection eId="section-146-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-146-2"><num>(2)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-146-2-a"><num>(a)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-146-2-b"><num>(b)</num><content><p>modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).</p></content></level></subsection></section><section eId="section-147"><num>147</num><heading>Extent</heading><subsection eId="section-147-1"><num>(1)</num><content><p>The provisions of this Act extend to England and Wales, Scotland and Northern Ireland.</p><p>This is subject to subsection (2).</p></content></subsection><subsection eId="section-147-2"><num>(2)</num><intro><p>The amendments made by the following sections have the same extent as the enactments amended—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>section 13 (preferential debts: Great Britain),</p></content></level><level class="para1" eId="section-147-2-b"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-147-2-c"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(c)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection></section><section eId="section-148"><num>148</num><heading>Commencement and short title</heading><subsection eId="section-148-1"><num>(1)</num><content><p>This Part comes into force on the day on which this Act is passed.</p></content></subsection><subsection eId="section-148-2"><num>(2)</num><content><p>The following provisions—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 131, and</p></item><item><p>section 138 and Schedule 9, apart from paragraph 4 of that Schedule,</p></item></blockList><p>come into force at the end of the period of 2 months beginning with the day on which this Act is passed.</p></content></subsection><subsection eId="section-148-3"><num>(3)</num><content><p>Sections 139 and 140(1) to (3) come into force on such day as the Secretary of State may by order appoint.</p></content></subsection><subsection eId="section-148-4"><num>(4)</num><content><p>Section 140(4) to (6) comes into force on such day as the Lord Chancellor may by order appoint.</p></content></subsection><subsection eId="section-148-5"><num>(5)</num><content><p>The remaining provisions of this Act come into force on such day as the Treasury may by order appoint.</p></content></subsection><subsection eId="section-148-6"><num>(6)</num><content><p>Different days may be appointed for different purposes.</p></content></subsection><subsection eId="section-148-7"><num>(7)</num><content><p>This Act may be cited as the Financial Services (Banking Reform) Act 2013.</p></content></subsection></section></part>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142"><num>142</num><heading>Orders and regulations: general</heading><subsection eId="section-142-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-142-2"><num>(2)</num><content><p>Subsection (1) does not apply to an order under section 43 (payment systems: designation orders).</p></content></subsection><subsection eId="section-142-3"><num>(3)</num><intro><p>An order or regulations made by the Treasury, the Secretary of State or the Lord Chancellor under this Act may—</p></intro><level class="para1" eId="section-142-3-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-142-3-b"><num>(b)</num><content><p>contain such incidental or transitional provision as the person making the order or regulations considers appropriate.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-2"><num>(2)</num><content><p>Subsection (1) does not apply to an order under section 43 (payment systems: designation orders).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-3"><num>(3)</num><intro><p>An order or regulations made by the Treasury, the Secretary of State or the Lord Chancellor under this Act may—</p></intro><level class="para1" eId="section-142-3-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level><level class="para1" eId="section-142-3-b"><num>(b)</num><content><p>contain such incidental or transitional provision as the person making the order or regulations considers appropriate.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-3-a"><num>(a)</num><content><p>make different provision for different cases, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-3-b"><num>(b)</num><content><p>contain such incidental or transitional provision as the person making the order or regulations considers appropriate.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-143"><num>143</num><heading>Orders and regulations: Parliamentary control</heading><subsection eId="section-143-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-143-1-a"><num>(a)</num><content><p>the instrument contains only provision made under section 148 (commencement), or</p></content></level><level class="para1" eId="section-143-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection eId="section-143-2"><num>(2)</num><intro><p>Subsection (3) applies to a statutory instrument that contains (with or without other provisions)—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>regulations under section 7 (building societies: power to make provision about ring-fencing);</p></content></level><level class="para1" eId="section-143-2-aa"><num><ins class="first" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a"><noteRef uk:name="commentary" href="#key-4a62b6fea9c87a492326148920b4767a" class="commentary"/>(aa)</ins></num><content><p><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">regulations under section 41(2C) (meaning of “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">”);</ins></p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>an order under section 41(4) (meaning of “payment system”);</p></content></level><level class="para1" eId="section-143-2-ba"><num><ins class="first" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231"><noteRef uk:name="commentary" href="#key-a948b59b009aed4455516ef6425b4231" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 102B (matters to consider when imposing generally applicable requirements);</ins></p></content></level><level class="para1" eId="section-143-2-bb"><num><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 104F (power to require imposition of generally applicable requirements);</ins></p></content></level><level class="para1" eId="section-143-2-c"><num>(c)</num><content><p>an order under section 145 (power to make further consequential amendments) that amends or repeals primary legislation;</p></content></level><level class="para1" eId="section-143-2-d"><num>(d)</num><content><p>an order under paragraph 6 of Schedule 6 (conduct of FMI administration).</p></content></level></subsection><subsection eId="section-143-3"><num>(3)</num><content><p>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.</p></content></subsection><subsection eId="section-143-4"><num>(4)</num><intro><p>In subsection (2)(c) “<term refersTo="#term-primary-legislation" eId="term-primary-legislation">primary legislation</term>” means—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>an Act of Parliament,</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>an Act of the Scottish Parliament,</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>a Measure or Act of the National Assembly for Wales, or</p></content></level><level class="para1" eId="section-143-4-d"><num>(d)</num><content><p>Northern Ireland legislation.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="section-143-1-a"><num>(a)</num><content><p>the instrument contains only provision made under section 148 (commencement), or</p></content></level><level class="para1" eId="section-143-1-b"><num>(b)</num><content><p>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.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-1-a"><num>(a)</num><content><p>the instrument contains only provision made under section 148 (commencement), or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-1-b"><num>(b)</num><content><p>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.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-143-2"><num>(2)</num><intro><p>Subsection (3) applies to a statutory instrument that contains (with or without other provisions)—</p></intro><level class="para1" eId="section-143-2-a"><num>(a)</num><content><p>regulations under section 7 (building societies: power to make provision about ring-fencing);</p></content></level><level class="para1" eId="section-143-2-aa"><num><ins class="first" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a"><noteRef uk:name="commentary" href="#key-4a62b6fea9c87a492326148920b4767a" class="commentary"/>(aa)</ins></num><content><p><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">regulations under section 41(2C) (meaning of “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">”);</ins></p></content></level><level class="para1" eId="section-143-2-b"><num>(b)</num><content><p>an order under section 41(4) (meaning of “payment system”);</p></content></level><level class="para1" eId="section-143-2-ba"><num><ins class="first" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231"><noteRef uk:name="commentary" href="#key-a948b59b009aed4455516ef6425b4231" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 102B (matters to consider when imposing generally applicable requirements);</ins></p></content></level><level class="para1" eId="section-143-2-bb"><num><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 104F (power to require imposition of generally applicable requirements);</ins></p></content></level><level class="para1" eId="section-143-2-c"><num>(c)</num><content><p>an order under section 145 (power to make further consequential amendments) that amends or repeals primary legislation;</p></content></level><level class="para1" eId="section-143-2-d"><num>(d)</num><content><p>an order under paragraph 6 of Schedule 6 (conduct of FMI administration).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-a"><num>(a)</num><content><p>regulations under section 7 (building societies: power to make provision about ring-fencing);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-b"><num>(b)</num><content><p>an order under section 41(4) (meaning of “payment system”);</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-143-2-aa"><num><ins class="first" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a"><noteRef uk:name="commentary" href="#key-4a62b6fea9c87a492326148920b4767a" class="commentary"/>(aa)</ins></num><content><p><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">regulations under section 41(2C) (meaning of “</ins><term refersTo="#term-digital-settlement-asset"><ins ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">digital settlement asset</ins></term><ins class="last" ukl:ChangeId="key-4a62b6fea9c87a492326148920b4767a-1695299708134" ukl:CommentaryRef="key-4a62b6fea9c87a492326148920b4767a">”);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-c"><num>(c)</num><content><p>an order under section 145 (power to make further consequential amendments) that amends or repeals primary legislation;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-d"><num>(d)</num><content><p>an order under paragraph 6 of Schedule 6 (conduct of FMI administration).</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" class="para1" eId="section-143-2-ba"><num><ins class="first" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231"><noteRef uk:name="commentary" href="#key-a948b59b009aed4455516ef6425b4231" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 102B (matters to consider when imposing generally applicable requirements);</ins></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-143-2-bb"><num><ins ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-a948b59b009aed4455516ef6425b4231-1695299801768" ukl:CommentaryRef="key-a948b59b009aed4455516ef6425b4231">regulations under section 104F (power to require imposition of generally applicable requirements);</ins></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-3"><num>(3)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-4"><num>(4)</num><intro><p>In subsection (2)(c) “<term refersTo="#term-primary-legislation" eId="term-primary-legislation">primary legislation</term>” means—</p></intro><level class="para1" eId="section-143-4-a"><num>(a)</num><content><p>an Act of Parliament,</p></content></level><level class="para1" eId="section-143-4-b"><num>(b)</num><content><p>an Act of the Scottish Parliament,</p></content></level><level class="para1" eId="section-143-4-c"><num>(c)</num><content><p>a Measure or Act of the National Assembly for Wales, or</p></content></level><level class="para1" eId="section-143-4-d"><num>(d)</num><content><p>Northern Ireland legislation.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-a"><num>(a)</num><content><p>an Act of Parliament,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-b"><num>(b)</num><content><p>an Act of the Scottish Parliament,</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-c"><num>(c)</num><content><p>a Measure or Act of the National Assembly for Wales, or</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-4-d"><num>(d)</num><content><p>Northern Ireland legislation.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144"><num>144</num><heading>Interpretation</heading><intro><p>In this Act—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</p></intro><level class="para1"><num>(a)</num><content><p>an enactment contained in subordinate legislation,</p></content></level><level class="para1"><num>(b)</num><content><p>an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,</p></content></level><level class="para1"><num>(c)</num><content><p>an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales, and</p></content></level><level class="para1"><num>(d)</num><content><p>an enactment contained in, or in an instrument made under, Northern Ireland legislation;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-fsma-2000" eId="term-fsma-2000">FSMA 2000</term>” means the Financial Services and Markets Act 2000;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-pra" eId="term-the-pra">the PRA</term>” means the Prudential Regulation Authority.</p></content></hcontainer></section>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content><p>“FSMA 2000” means the Financial Services and Markets Act 2000;</p></content></hcontainer>
<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145"><num>145</num><heading>Power to make further consequential amendments</heading><subsection eId="section-145-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-145-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-145-2-a"><num>(a)</num><content><p>any enactment passed or made before the passing of this Act, and</p></content></level><level class="para1" eId="section-145-2-b"><num>(b)</num><content><p>any enactment passed or made on or before the last day of the Session in which this Act is passed.</p></content></level></subsection><subsection eId="section-145-3"><num>(3)</num><content><p>Amendments and repeals made under this section are additional to those made by or under any other provision of this Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-2"><num>(2)</num><intro><p>This section applies to—</p></intro><level class="para1" eId="section-145-2-a"><num>(a)</num><content><p>any enactment passed or made before the passing of this Act, and</p></content></level><level class="para1" eId="section-145-2-b"><num>(b)</num><content><p>any enactment passed or made on or before the last day of the Session in which this Act is passed.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-2-a"><num>(a)</num><content><p>any enactment passed or made before the passing of this Act, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-2-b"><num>(b)</num><content><p>any enactment passed or made on or before the last day of the Session in which this Act is passed.</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-3"><num>(3)</num><content><p>Amendments and repeals made under this section are additional to those made by or under any other provision of this Act.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146"><num>146</num><heading>Transitional provisions and savings</heading><subsection eId="section-146-1"><num>(1)</num><content><p>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.</p></content></subsection><subsection eId="section-146-2"><num>(2)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-146-2-a"><num>(a)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-146-2-b"><num>(b)</num><content><p>modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146-1"><num>(1)</num><content><p>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.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146-2"><num>(2)</num><intro><p>An order under this section may—</p></intro><level class="para1" eId="section-146-2-a"><num>(a)</num><content><p>confer functions on the FCA or the PRA;</p></content></level><level class="para1" eId="section-146-2-b"><num>(b)</num><content><p>modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-146-2-a"><num>(a)</num><content><p>confer functions on the FCA or the PRA;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-146-2-b"><num>(b)</num><content><p>modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-147"><num>147</num><heading>Extent</heading><subsection eId="section-147-1"><num>(1)</num><content><p>The provisions of this Act extend to England and Wales, Scotland and Northern Ireland.</p><p>This is subject to subsection (2).</p></content></subsection><subsection eId="section-147-2"><num>(2)</num><intro><p>The amendments made by the following sections have the same extent as the enactments amended—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>section 13 (preferential debts: Great Britain),</p></content></level><level class="para1" eId="section-147-2-b"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-147-2-c"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(c)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-147-1"><num>(1)</num><content><p>The provisions of this Act extend to England and Wales, Scotland and Northern Ireland.</p><p>This is subject to subsection (2).</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-147-2"><num>(2)</num><intro><p>The amendments made by the following sections have the same extent as the enactments amended—</p></intro><level class="para1" eId="section-147-2-a"><num>(a)</num><content><p>section 13 (preferential debts: Great Britain),</p></content></level><level class="para1" eId="section-147-2-b"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="section-147-2-c"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(c)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-147-2-a"><num>(a)</num><content><p>section 13 (preferential debts: Great Britain),</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-147-2-b"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-147-2-c"><num><noteRef href="#key-123d21a515ff91e08fbacf9bbf98b255" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(c)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-148"><num>148</num><heading>Commencement and short title</heading><subsection eId="section-148-1"><num>(1)</num><content><p>This Part comes into force on the day on which this Act is passed.</p></content></subsection><subsection eId="section-148-2"><num>(2)</num><content><p>The following provisions—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 131, and</p></item><item><p>section 138 and Schedule 9, apart from paragraph 4 of that Schedule,</p></item></blockList><p>come into force at the end of the period of 2 months beginning with the day on which this Act is passed.</p></content></subsection><subsection eId="section-148-3"><num>(3)</num><content><p>Sections 139 and 140(1) to (3) come into force on such day as the Secretary of State may by order appoint.</p></content></subsection><subsection eId="section-148-4"><num>(4)</num><content><p>Section 140(4) to (6) comes into force on such day as the Lord Chancellor may by order appoint.</p></content></subsection><subsection eId="section-148-5"><num>(5)</num><content><p>The remaining provisions of this Act come into force on such day as the Treasury may by order appoint.</p></content></subsection><subsection eId="section-148-6"><num>(6)</num><content><p>Different days may be appointed for different purposes.</p></content></subsection><subsection eId="section-148-7"><num>(7)</num><content><p>This Act may be cited as the Financial Services (Banking Reform) Act 2013.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-1"><num>(1)</num><content><p>This Part comes into force on the day on which this Act is passed.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-148-2"><num>(2)</num><content><p>The following provisions—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 131, and</p></item><item><p>section 138 and Schedule 9, apart from paragraph 4 of that Schedule,</p></item></blockList><p>come into force at the end of the period of 2 months beginning with the day on which this Act is passed.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-3"><num>(3)</num><content><p>Sections 139 and 140(1) to (3) come into force on such day as the Secretary of State may by order appoint.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-4"><num>(4)</num><content><p>Section 140(4) to (6) comes into force on such day as the Lord Chancellor may by order appoint.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-5"><num>(5)</num><content><p>The remaining provisions of this Act come into force on such day as the Treasury may by order appoint.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-6"><num>(6)</num><content><p>Different days may be appointed for different purposes.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-7"><num>(7)</num><content><p>This Act may be cited as the Financial Services (Banking Reform) Act 2013.</p></content></subsection>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="schedules" eId="schedules"><heading>SCHEDULES</heading><hcontainer name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote"><p>
Section 6</p></authorialNote></num><heading>Ring-fencing transfer schemes</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><content><p>Part 7 of FSMA 2000 (control of business transfer schemes) is amended as follows.</p></content></paragraph><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content><p><mod>For “the authorised person concerned”, wherever occurring in Part 7 (including Schedule 12), substitute <quotedText>“
the transferor concerned
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-1-paragraph-3-1"><num>(1)</num><content><p>Section 103A (meaning of “the appropriate regulator”) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1), in paragraph (a), for “a scheme” substitute <quotedText>“
a ring-fencing transfer scheme or a scheme (other than a ring-fencing transfer scheme)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-3"><num>(3)</num><content><p><mod>At the end of subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>in the case of a ring-fencing transfer scheme, means the body to whose business the scheme relates.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 106 (banking business transfer schemes), at the end of subsection (1)(c) insert <quotedText>“
or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p><mod>After section 106A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>106B</num><heading>Ring-fencing transfer scheme</heading><subsection><num>(1)</num><intro><p>A scheme is a ring-fencing transfer scheme if it—</p></intro><level class="para1"><num>(a)</num><intro><p>is one under which the whole or part of the business carried on—</p></intro><level class="para2"><num>(i)</num><content><p>by a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person, or</p></content></level><level class="para2"><num>(ii)</num><content><p>by a qualifying body,</p></content></level><wrapUp><p>is to be transferred to another body (“<term refersTo="#term-the-transferee">the transferee</term>”),</p></wrapUp></level><level class="para1"><num>(b)</num><content><p>is to be made for one or more of the purposes mentioned in subsection (3), and</p></content></level><level class="para1"><num>(c)</num><content><p>is not an excluded scheme or an insurance business transfer scheme.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-qualifying-body">Qualifying body</term>” means a body which—</p></intro><level class="para1"><num>(a)</num><content><p>is incorporated in the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>is a member of the group of a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person, and</p></content></level><level class="para1"><num>(c)</num><content><p>is not itself an authorised person.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The purposes are—</p></intro><level class="para1"><num>(a)</num><content><p>enabling a <abbr class="acronym" title="United Kingdom">UK</abbr> authorised person to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;</p></content></level><level class="para1"><num>(b)</num><content><p>enabling the transferee to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;</p></content></level><level class="para1"><num>(c)</num><content><p>making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the body corporate to whose business the scheme relates becoming a ring-fenced body while one or more other members of its group are not ring-fenced bodies;</p></content></level><level class="para1"><num>(d)</num><content><p>making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the transferee becoming a ring-fenced body while one or more other members of the transferee's group are not ring-fenced bodies.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A scheme is an excluded scheme for the purposes of this section if—</p></intro><level class="para1"><num>(a)</num><content><p>the body to whose business the scheme relates is a building society or credit union, or</p></content></level><level class="para1"><num>(b)</num><content><p>the scheme is a compromise or arrangement to which Part 27 of the Companies Act 2006 (mergers and divisions of public companies) applies.</p></content></level></subsection><subsection><num>(5)</num><content><p>For the purposes of subsection (1)(a) it is immaterial whether or not the business to be transferred is carried on in the United Kingdom.</p></content></subsection><subsection><num>(6)</num><content><p>“<term refersTo="#term-uk-authorised-person"><abbr class="acronym" title="United Kingdom">UK</abbr> authorised person</term>” has the same meaning as in section 105.</p></content></subsection><subsection><num>(7)</num><content><p>“<term refersTo="#term-building-society">Building society</term>” and “<term refersTo="#term-credit-union">credit union</term>” have the same meanings as in section 106.</p></content></subsection><subsection><num>(8)</num><content><p>“<term refersTo="#term-the-ring-fencing-provisions">The ring-fencing provisions</term>” means ring-fencing rules and the duty imposed as a result of section 142G.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><content><p>Section 107 (application for order sanctioning transfer scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or a reclaim fund business transfer scheme” substitute <quotedText>“
, a reclaim fund business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>An application relating to a ring-fencing transfer scheme may be made only with the consent of the PRA.</p></content></subsection><subsection><num>(2B)</num><content><p>In deciding whether to give consent, the PRA must have regard to the scheme report prepared under section 109A in relation to the ring-fencing transfer scheme.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><content><p><mod>For the heading to section 109 substitute <quotedText>“
Scheme reports: insurance business transfer schemes
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><content><p><mod>After section 109 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>109A</num><heading>Scheme reports: ring-fencing transfer schemes</heading><subsection><num>(1)</num><content><p>An application under section 106B in respect of a ring-fencing transfer scheme must be accompanied by a report on the terms of the scheme (a “scheme report”).</p></content></subsection><subsection><num>(2)</num><intro><p>A scheme report may be made only by a person—</p></intro><level class="para1"><num>(a)</num><content><p>appearing to the PRA to have the skills necessary to enable the person to make a proper report, and</p></content></level><level class="para1"><num>(b)</num><content><p>nominated or approved for the purpose by the PRA.</p></content></level></subsection><subsection><num>(3)</num><content><p>A scheme report must be made in a form approved by the PRA.</p></content></subsection><subsection><num>(4)</num><intro><p>A scheme report must state—</p></intro><level class="para1"><num>(a)</num><content><p>whether persons other than the transferor concerned are likely to be adversely affected by the scheme, and</p></content></level><level class="para1"><num>(b)</num><content><p>if so, whether the adverse effect is likely to be greater than is reasonably necessary in order to achieve whichever of the purposes mentioned in section 106B(3) is relevant.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The PRA must consult the FCA before—</p></intro><level class="para1"><num>(a)</num><content><p>nominating or approving a person under subsection (2)(b), or</p></content></level><level class="para1"><num>(b)</num><content><p>approving a form under subsection (3).</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><content><p>Section 110 (right to participate in proceedings) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content><p><mod>In subsection (1), after “section 107” insert <quotedText>“
relating to an insurance business transfer scheme, a banking business transfer scheme or a reclaim fund business transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><content><p><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content><p>Subsections (4) and (5) apply where an application under section 107 relates to a ring-fencing transfer scheme.</p></content></subsection><subsection><num>(4)</num><intro><p>The following are also entitled to be heard—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>where the transferee is an authorised person, the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>any person (“P”) (including an employee of the transferor concerned or of the transferee) who alleges that P would be adversely affected by the carrying out of the scheme.</p></content></level></subsection><subsection><num>(5)</num><intro><p>P is not entitled to be heard by virtue of subsection (4)(c) unless before the hearing P has—</p></intro><level class="para1"><num>(a)</num><content><p>filed (in Scotland, lodged) with the court a written statement of the representations that P wishes the court to consider, and</p></content></level><level class="para1"><num>(b)</num><content><p>served copies of the statement on the PRA and the transferor concerned.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content><p>Section 111 (sanction of court for business transfer schemes) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (1), for “or a reclaim fund business transfer scheme” substitute <quotedText>“
, a reclaim fund business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (2), after paragraph (aa) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>in the case of a ring-fencing transfer scheme, the appropriate certificates have been obtained (as to which see Part 2B of that Schedule);</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 112 (effect of order sanctioning business transfer scheme), in subsection (10), after “transfer scheme” insert <quotedText>“
or ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 112A (rights to terminate <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (1), for “or a banking business transfer scheme” substitute <quotedText>“
, a banking business transfer scheme or a ring-fencing transfer scheme
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In Schedule 12 (transfer schemes: certificates) after Part 2A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><part><num><b>PART 2B</b></num><heading>Ring-fencing transfer schemes</heading><hcontainer name="crossheading" class="schGroup7"><heading>Appropriate certificates</heading><paragraph class="schProv1"><num>9B</num><subparagraph><num>(1)</num><intro><p>For the purposes of section 111(2) the appropriate certificates, in relation to a ring-fencing transfer scheme, are—</p></intro><level class="para1"><num>(a)</num><content><p>a certificate given by the PRA certifying its approval of the application,</p></content></level><level class="para1"><num>(b)</num><content><p>a certificate under paragraph 9C, and</p></content></level><level class="para1"><num>(c)</num><content><p>if sub-paragraph (2) applies, a certificate under paragraph 9D.</p></content></level></subparagraph><subparagraph><num>(2)</num><content><p>This sub-paragraph applies if the transferee is an <abbr class="acronym" title="European Economic Area">EEA</abbr> firm falling within paragraph 5(a) or (b) of Schedule 3.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certificate as to financial resources</heading><paragraph class="schProv1"><num>9C</num><subparagraph><num>(1)</num><content><p>A certificate under this paragraph is one given by the relevant authority and certifying that, taking the proposed transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.</p></content></subparagraph><subparagraph><num>(2)</num><intro><p>“<term refersTo="#term-relevant-authority">Relevant authority</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>if the transferee is a PRA-authorised person with a Part 4A permission or with permission under Schedule 4, the PRA;</p></content></level><level class="para1"><num>(b)</num><content><p>if the transferee is an <abbr class="acronym" title="European Economic Area">EEA</abbr> firm falling within paragraph 5(a) or (b) of Schedule 3, its home state regulator;</p></content></level><level class="para1"><num>(c)</num><content><p>if the transferee does not fall within paragraph (a) or (b) but is subject to regulation in a country or territory outside the United Kingdom, the authority responsible for the supervision of the transferee's business in the place in which the transferee has its head office;</p></content></level><level class="para1"><num>(d)</num><content><p>in any other case, the FCA.</p></content></level></subparagraph><subparagraph><num>(3)</num><content><p>In sub-paragraph (2), any reference to a transferee of a particular description includes a reference to a transferee who will be of that description if the proposed ring-fencing transfer scheme takes effect.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Certificate as to consent of home state regulator</heading><paragraph class="schProv1"><num>9D</num><intro><p>A certificate under this paragraph is one given by the appropriate regulator and certifying that the home state regulator of the transferee has been notified of the proposed scheme and that—</p></intro><level class="para1"><num>(a)</num><content><p>the home state regulator has responded to the notification, or</p></content></level><level class="para1"><num>(b)</num><content><p>the period of 3 months beginning with the notification has elapsed.</p></content></level></paragraph></hcontainer></part></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-2"><num>SCHEDULE 2<authorialNote class="referenceNote"><p>
Section 17</p></authorialNote></num><heading>Bail-in stabilisation option</heading><part eId="schedule-2-part-1"><num><b>PART 1</b></num><heading>Amendments of Banking Act 2009</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content><p>The Banking Act 2009 is amended as follows.</p></content></paragraph><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-new-stabilisation-option-bailin"><heading><i>New stabilisation option: bail-in</i></heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><p><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>12A</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The third stabilisation option is exercised by the use of the power in subsection (2).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more resolution instruments (which may contain provision or proposals of any kind mentioned in subsections (3) to (6)).</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make special bail-in provision with respect to a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, any special bail-in provision made by that or another instrument.</p></content></level></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>provide for securities issued by a specified bank to be transferred to a bail-in administrator (see section 12B) or another person;</p></content></level><level class="para1"><num>(b)</num><content><p>make other provision for the purposes of, or in connection with, the transfer of securities issued by a specified bank (whether or not the transfer has been or is to be effected by that instrument, by another resolution instrument or otherwise).</p></content></level></subsection><subsection><num>(5)</num><content><p>A resolution instrument may set out proposals with regard to the future ownership of a specified bank or of the business of a specified bank, and any other proposals (for example, proposals about making special bail-in provision) that the Bank of England may think appropriate.</p></content></subsection><subsection><num>(6)</num><content><p>A resolution instrument may make any other provision the Bank of England may think it appropriate to make in exercise of specific powers under this Part.</p></content></subsection><subsection><num>(7)</num><intro><p>Provision made in accordance with subsection (4) may relate to—</p></intro><level class="para1"><num>(a)</num><content><p>specified securities, or</p></content></level><level class="para1"><num>(b)</num><content><p>securities of a specified description.</p></content></level></subsection><subsection><num>(8)</num><content><p>Where the Bank of England has exercised the power in subsection (4) to transfer securities to a bail-in administrator, the Bank of England must exercise its functions under this Part (see, in particular, section 48V) with a view to ensuring that any securities held by a person in the capacity of a bail-in administrator are so held only for so long as is, in the Bank of England's opinion, appropriate having regard to the special resolution objectives.</p></content></subsection><subsection><num>(9)</num><content><p>References in this Part to “special bail-in provision” are to provision made in reliance on section 48B.</p></content></subsection></section><section><num>12B</num><heading>Bail-in administrators</heading><subsection><num>(1)</num><content><p>The Bank of England may, in a resolution instrument, appoint an individual or body corporate as a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>A bail-in administrator is appointed—</p></intro><level class="para1"><num>(a)</num><content><p>to hold any securities that may be transferred or issued to that person in the capacity of bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>to perform any other functions that may be conferred under any provision of this Part.</p></content></level></subsection><subsection><num>(3)</num><content><p>The Bank of England may appoint more than one bail-in administrator to perform functions in relation to a bank (but no more than one of them may at any one time be authorised to hold securities as mentioned in subsection (2)(a)).</p></content></subsection><subsection><num>(4)</num><content><p>Securities held by a bail-in administrator (in that capacity, and whether as a result of a resolution instrument or otherwise) are to be held in accordance with the terms of a resolution instrument that transfers those, or other, securities to the bail-in administrator.</p></content></subsection><subsection><num>(5)</num><intro><p>For example, the following provision may be made by virtue of subsection (4)—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights of a bail-in administrator with respect to all or any of the securities are to be exercisable only as directed by the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>provision specifying rights or obligations that the bail-in administrator is, or is not, to have in relation to some or all of the securities.</p></content></level></subsection><subsection><num>(6)</num><content><p>A bail-in administrator must have regard, in performing any functions of the office, to any objectives that may be specified in a resolution instrument.</p></content></subsection><subsection><num>(7)</num><content><p>Where one or more objectives are specified in accordance with subsection (6), the objectives are to be taken to have equal status with each other, unless the contrary is stated in the resolution instrument.</p></content></subsection><subsection><num>(8)</num><content><p>See sections 48I to 48K for further provision about bail-in administrators.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>8A</num><heading>Specific condition: bail-in</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a bank in accordance with section 12A(2) only if satisfied that the condition in subsection (2) is met.</p></content></subsection><subsection><num>(2)</num><intro><p>The condition is that the exercise of the power is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Before determining whether that condition is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(4)</num><content><p>The condition in this section is in addition to the conditions in section 7.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-further-provision-about-the-bailin-option"><heading><i>Further provision about the bail-in option</i></heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><p><mod>After section 48A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading><i>Bail-in option</i></heading><section><num>48B</num><heading>Special bail-in provision</heading><subsection><num>(1)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, means any of the following (or any combination of the following)—</p></intro><level class="para1"><num>(a)</num><content><p>provision cancelling a liability owed by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provision modifying, or changing the form of, a liability owed by the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that a contract under which the bank has a liability is to have effect as if a specified right had been exercised under it.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-special-bail-in-provision">Special bail-in provision</term>”, in relation to a bank, also includes any associated provision (see subsection (3)) that the Bank of England may think it appropriate to make in consequence of any provision under subsection (1) that—</p></intro><level class="para1"><num>(a)</num><content><p>is made in the same resolution instrument, or</p></content></level><level class="para1"><num>(b)</num><content><p>has been made in another resolution instrument in respect of the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>“<term refersTo="#term-associated-provision">Associated provision</term>” means provision cancelling or modifying a contract under which a banking group company has a liability.</p></content></subsection><subsection><num>(4)</num><intro><p>A power to make special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>may be exercised only for the purpose of, or in connection with, reducing, deferring or cancelling a liability of the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>may not be exercised so as to affect any excluded liability.</p></content></level></subsection><subsection><num>(5)</num><intro><p>The following rules apply to the interpretation of subsection (1).</p></intro><level class="para1"><num>1</num><content><p>The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability.</p></content></level><level class="para1"><num>2</num><content><p>The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability.</p></content></level><level class="para1"><num>3</num><intro><p>The reference to changing the form of a liability owed by the bank, includes, for example—</p></intro><level class="para2"><num>(a)</num><content><p>converting an instrument under which the bank owes a liability from one form or class to another,</p></content></level><level class="para2"><num>(b)</num><content><p>replacing such an instrument with another instrument of a different form or class, or</p></content></level><level class="para2"><num>(c)</num><content><p>creating a new security (of any form or class) in connection with the modification of such an instrument.</p></content></level></level></subsection><subsection><num>(6)</num><intro><p>Examples of special bail-in provision include—</p></intro><level class="para1"><num>(a)</num><content><p>provision that transactions or events of any specified kind have or do not have (directly or indirectly) specified consequences or are to be treated in a specified manner for specified purposes;</p></content></level><level class="para1"><num>(b)</num><content><p>provision discharging persons from further performance of obligations under a contract and dealing with the consequences of persons being so discharged.</p></content></level></subsection><subsection><num>(7)</num><content><p>The form and class of the instrument (“the resulting instrument”) into which an instrument is converted, or with which it is replaced, do not matter for the purposes of paragraphs (a) and (b) of rule 3 in subsection (5); for instance, the resulting instrument may (if it is a security) fall within Class 1 or any other Class in section 14.</p></content></subsection><subsection><num>(8)</num><intro><p>The following liabilities of the bank are “excluded liabilities”—</p></intro><level class="para1"><num>(a)</num><content><p>liabilities representing protected deposits;</p></content></level><level class="para1"><num>(b)</num><content><p>any liability, so far as it is secured;</p></content></level><level class="para1"><num>(c)</num><content><p>liabilities that the bank has by virtue of holding client assets;</p></content></level><level class="para1"><num>(d)</num><content><p>liabilities with an original maturity of less than 7 days owed by the bank to a credit institution or investment firm;</p></content></level><level class="para1"><num>(e)</num><content><p>liabilities arising from participation in designated settlement systems and owed to such systems or to operators of, or participants in, such systems;</p></content></level><level class="para1"><num>(f)</num><content><p>liabilities owed to central counterparties recognised by the European Securities and Markets Authority in accordance with Article 25 of Regulation (EU) 648/2012 of the European Parliament and the Council;</p></content></level><level class="para1"><num>(g)</num><content><p>liabilities owed to an employee or former employee in relation to salary or other remuneration, except variable remuneration;</p></content></level><level class="para1"><num>(h)</num><content><p>liabilities owed to an employee or former employee in relation to rights under a pension scheme, except rights to discretionary benefits;</p></content></level><level class="para1"><num>(i)</num><content><p>liabilities owed to creditors arising from the provision to the bank of goods or services (other than financial services) that are critical to the daily functioning of the bank's operations.</p></content></level></subsection><subsection><num>(9)</num><intro><p>The following special rules apply in cases involving banking group companies—</p></intro><level class="para1"><num>(a)</num><content><p>a liability mentioned in subsection (8)(d) is not an excluded liability if the credit institution or investment firm to which the liability is owed is a banking group company in relation to the bank (see section 81D);</p></content></level><level class="para1"><num>(b)</num><content><p>in subsection (8)(i) the reference to creditors does not include companies which are banking group companies in relation to the bank.</p></content></level></subsection></section><section><num>48C</num><heading>Meaning of “protected deposit”</heading><subsection><num>(1)</num><content><p>A deposit is “protected” so far as it is covered by the Financial Services Compensation Scheme.</p></content></subsection><subsection><num>(2)</num><intro><p>A deposit is “protected” so far as it is covered by a scheme which—</p></intro><level class="para1"><num>(a)</num><content><p>operates outside the United Kingdom, and</p></content></level><level class="para1"><num>(b)</num><content><p>is comparable to the Financial Services Compensation Scheme.</p></content></level></subsection><subsection><num>(3)</num><content><p>If one or both of subsections (1) and (2) apply to a deposit, the amount of the deposit “protected” is the highest amount which results from either of those subsections.</p></content></subsection><subsection><num>(4)</num><content><p>In subsections (1) and (2) and section 48B(8)(a), “<term refersTo="#term-deposit">deposit</term>” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544), but ignoring the exclusions in article 6.</p></content></subsection></section><section><num>48D</num><heading>General interpretation of section 48B</heading><subsection><num>(1)</num><intro><p>In section 48B—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-client-assets">client assets</term>” means assets which the bank has undertaken to hold on trust for, or on behalf of, a client;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-contract">contract</term>” includes any instrument;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-credit-institution">credit institution</term>” means any credit institution as defined in Article 4.1(1) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council, other than an entity mentioned in Article 2.5(2) to (23) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-settlement-system">designated settlement system</term>” means a system designated in accordance with Directive <ref eId="c00004" href="http://www.legislation.gov.uk/european/directive/1998/0026">98/26/<abbr class="acronym" title="European Community">EC</abbr></ref> of the European Parliament and of the Council (as amended by Directives <ref eId="c00005" href="http://www.legislation.gov.uk/european/directive/2009/0044">2009/44/<abbr class="acronym" title="European Community">EC</abbr></ref> and 2010/78/<abbr class="acronym" title="European Union">EU</abbr>);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-employee">employee</term>” includes the holder of an office;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-investment-firm">investment firm</term>” means an investment firm as defined in Article 4.1(2) of <ref href="http://www.legislation.gov.uk/european/regulation/2013/0575">Regulation (EU) No 575/2013</ref> of the European Parliament and of the Council that is subject to the initial capital requirement specified in Article 28(2) of <ref href="http://www.legislation.gov.uk/european/directive/2013/0036">Directive 2013/36/EU</ref> of the European Parliament and of the Council;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-pension-scheme">pension scheme</term>” includes any arrangement for the payment of pensions, allowances and gratuities;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-secured">secured</term>” means secured against property or rights, or otherwise covered by collateral arrangements.</p></content></hcontainer></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-assets">assets</term>” has the same meaning as in section 232(4) (ignoring for these purposes section 232(5A)(b));</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-collateral-arrangements">collateral arrangements</term>” includes arrangements which are title transfer collateral arrangements for the purposes of section 48.</p></content></hcontainer></subsection><subsection><num>(3)</num><content><p>For the purposes of section 48B(8)(h), a benefit under a pension scheme is discretionary so far as the employee's right to the benefit resulted from the exercise of a discretion.</p></content></subsection></section><section><num>48E</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a resolution instrument containing special bail-in provision (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the resolution instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section><section><num>48F</num><heading>Power to amend definition of “excluded liabilities”</heading><subsection><num>(1)</num><intro><p>The Treasury may by order amend section 48B(8) by—</p></intro><level class="para1"><num>(a)</num><content><p>adding to the list of excluded liabilities;</p></content></level><level class="para1"><num>(b)</num><content><p>amending or omitting any paragraph of that subsection, other than paragraphs (a) to (c).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury may by order amend section 48C or 48D.</p></content></subsection><subsection><num>(3)</num><content><p>The powers conferred by subsections (1) and (2) include power to make consequential and transitional provision.</p></content></subsection><subsection><num>(4)</num><intro><p>An order under this section—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection><subsection><num>(5)</num><content><p>The Treasury must consult before laying a draft order under this section before Parliament.</p></content></subsection></section><section><num>48G</num><heading>Priority between creditors</heading><subsection><num>(1)</num><content><p>The Treasury may, for the purpose of ensuring that the treatment of liabilities in any instrument that contains special bail-in provision is aligned to an appropriate degree with the treatment of liabilities on an insolvency, by order specify matters or principles to which the Bank of England is to be required to have regard in making any such instrument.</p></content></subsection><subsection><num>(2)</num><content><p>An order may, for example, specify the insolvency treatment principles (as defined in section 48E(4)) or alternative principles.</p></content></subsection><subsection><num>(3)</num><content><p>An order may specify the meaning of “insolvency” for one or more purposes of the order.</p></content></subsection><subsection><num>(4)</num><content><p>An order may amend sections 44C(4) and 48E(4).</p></content></subsection><subsection><num>(5)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48H</num><heading>Business reorganisation plans</heading><subsection><num>(1)</num><intro><p>A resolution instrument may require a bail-in administrator, or one or more directors of the bank, to—</p></intro><level class="para1"><num>(a)</num><content><p>draw up a business reorganisation plan with respect to the bank, and</p></content></level><level class="para1"><num>(b)</num><content><p>submit it to the Bank of England within the period allowed by (or under) the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>“<term refersTo="#term-business-reorganisation-plan">Business reorganisation plan</term>” means a plan that includes—</p></intro><level class="para1"><num>(a)</num><content><p>an assessment of the factors that caused Condition 1 in section 7 to be met in the case of the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>a description of the measures to be adopted with a view to restoring the viability of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>a timetable for the implementation of those measures.</p></content></level></subsection><subsection><num>(3)</num><intro><p>Where a person has submitted a business reorganisation plan to the Bank of England under subsection (1) (or has re-submitted a plan under subsection (4)), the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must approve the plan if satisfied that the plan is appropriately designed for meeting the objective mentioned in subsection (2)(b);</p></content></level><level class="para1"><num>(b)</num><content><p>must otherwise require the person to amend the plan in a specified manner.</p></content></level></subsection><subsection><num>(4)</num><content><p>Where the Bank of England has required a person to amend a business re-organisation plan, the person must re-submit the amended plan within the period allowed by (or under) the resolution instrument.</p></content></subsection><subsection><num>(5)</num><intro><p>Before deciding what action to take under subsection (3) the Bank of England must (for each submission or re-submission of a plan) consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>A business reorganisation plan may include recommendations by the person submitting the plan as to the exercise by the Bank of England of any of its powers under this Part in relation to the bank.</p></content></subsection><subsection><num>(7)</num><intro><p>Where a resolution instrument contains provision under subsection (1), the instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>specify further matters (in addition to those mentioned in subsection (2)) that must be dealt with in the business reorganisation plan;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision about the timing of actions to be taken in connection with the making and approval of the plan;</p></content></level><level class="para1"><num>(c)</num><content><p>enable any provision that the Bank of England has power under paragraph (a) or (b) to make in the instrument to be made instead in an agreement between the Bank of England and the person required to draw up the business reorganisation plan.</p></content></level></subsection><subsection><num>(8)</num><content><p>For the purposes of subsection (2)(b) the viability of a bank is to be assessed by reference to whether the bank satisfies, and (if so) for how long it may be expected to continue to satisfy, the threshold conditions (as defined in section 55B of the Financial Services and Markets Act 2000).</p></content></subsection></section><section><num>48I</num><heading>Bail-in administrator: further functions</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>authorise a bail-in administrator to manage the bank's business (or confer on a bail-in administrator any other power with respect to the management of the bank's business);</p></content></level><level class="para1"><num>(b)</num><content><p>authorise a bail-in administrator to exercise any other powers of the bank;</p></content></level><level class="para1"><num>(c)</num><content><p>confer on a bail-in administrator any other power the Bank of England may consider appropriate;</p></content></level><level class="para1"><num>(d)</num><content><p>provide that the exercise of any power conferred by the instrument in accordance with this section is to be subject to conditions specified in the instrument.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may require a bail-in administrator to make reports to the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>on any matter specified in the instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>at the times or intervals specified in the instrument.</p></content></level></subsection><subsection><num>(3)</num><content><p>If a resolution instrument specifies a matter in accordance with subsection (2)(a), it may provide for further requirements as to the contents of the report on that matter to be specified in an agreement between the Bank of England and the bail-in administrator.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require a bail-in administrator to consult specified persons before exercising specified functions (and may specify particular matters on which the specified person must be consulted);</p></content></level><level class="para1"><num>(b)</num><content><p>provide that a bail-in administrator is not to exercise specified functions without the consent of a specified person.</p></content></level></subsection></section><section><num>48J</num><heading>Bail-in administrator: supplementary</heading><subsection><num>(1)</num><content><p>A bail-in administrator may do anything necessary or desirable for the purposes of or in connection with the performance of the functions of the office.</p></content></subsection><subsection><num>(2)</num><content><p>A bail-in administrator is not a servant or agent of the Crown (and, in particular, is not a civil servant).</p></content></subsection><subsection><num>(3)</num><intro><p>Where a bail-in administrator is appointed under this Part, the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>must make provision in a resolution instrument for resignation and replacement of the bail-in administrator;</p></content></level><level class="para1"><num>(b)</num><content><p>may remove the bail-in administrator from office only (i) on the ground of incapacity or misconduct, or (ii) on the ground that there is no further need for a person to perform the functions conferred on the bail-in administrator.</p></content></level></subsection></section><section><num>48K</num><heading>Bail-in administrator: money</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for the payment of remuneration and allowances to a bail-in administrator.</p></content></subsection><subsection><num>(2)</num><intro><p>Provision made under subsection (1) may provide that the amounts are—</p></intro><level class="para1"><num>(a)</num><content><p>to be paid by the Bank of England, or</p></content></level><level class="para1"><num>(b)</num><content><p>to be determined by the Bank of England and paid by the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>A bail-in administrator is not liable for damages in respect of anything done in good faith for the purposes of or in connection with the functions of the office (subject to section 8 of the Human Rights Act 1998).</p></content></subsection></section><section><num>48L</num><heading>Powers in relation to securities</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>cancel or modify any securities to which this subsection applies;</p></content></level><level class="para1"><num>(b)</num><content><p>convert any such securities from one form or class into another.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) applies to securities issued by the bank that fall within Class 1 in section 14.</p></content></subsection><subsection><num>(3)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>make provision with respect to rights attaching to securities issued by the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>provide for the listing of securities issued by the bank to be discontinued.</p></content></level></subsection><subsection><num>(4)</num><content><p>The reference in subsection (1)(b) to converting securities from one form or class into another includes creating a new security in connection with the modification of an existing security.</p></content></subsection><subsection><num>(5)</num><intro><p>The provision that may be made under subsection (3)(a) includes, for example—</p></intro><level class="para1"><num>(a)</num><content><p>provision that specified rights attaching to securities are to be treated as having been exercised;</p></content></level><level class="para1"><num>(b)</num><content><p>provision that the Bank of England, or a bail-in administrator, is to be treated as authorised to exercise specified rights attaching to securities;</p></content></level><level class="para1"><num>(c)</num><content><p>provision that specified rights attaching to securities may not be exercised for a period specified in the instrument.</p></content></level></subsection><subsection><num>(6)</num><content><p>In subsection (3)(b) the reference to “listing” is to listing under section 74 of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(7)</num><content><p>The provision that may be made under this section in relation to any securities is in addition to any provision that the Bank of England may have power to make in relation to them under section 48B.</p></content></subsection></section><section><num>48M</num><heading>Termination rights, <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-default-event-provision">default event provision</term>” has the same meaning as in section 22.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may provide for subsection (3) or (4) to apply (but need not apply either).</p></content></subsection><subsection><num>(3)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies.</p></content></subsection><subsection><num>(4)</num><content><p>If this subsection applies, the resolution instrument is to be disregarded in determining whether a default event provision applies except so far as the instrument provides otherwise.</p></content></subsection><subsection><num>(5)</num><intro><p>In subsections (3) and (4) a reference to the resolution instrument is a reference to—</p></intro><level class="para1"><num>(a)</num><content><p>the making of the instrument,</p></content></level><level class="para1"><num>(b)</num><content><p>anything that is done by the instrument or is to be, or may be, done under or by virtue of the instrument, and</p></content></level><level class="para1"><num>(c)</num><content><p>any action or decision taken or made under this or another enactment in so far as it resulted in, or was connected to, the making of the instrument.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Provision under subsection (2) may apply subsection (3) or (4)—</p></intro><level class="para1"><num>(a)</num><content><p>generally or only for specified purposes, cases or circumstances, or</p></content></level><level class="para1"><num>(b)</num><content><p>differently for different purposes, cases or circumstances.</p></content></level></subsection><subsection><num>(7)</num><content><p>A thing is not done by virtue of a resolution instrument for the purposes of subsection (5)(b) merely by virtue of being done under a contract or other agreement rights or obligations under which have been affected by the instrument.</p></content></subsection></section><section><num>48N</num><heading>Directors</heading><subsection><num>(1)</num><intro><p>A resolution instrument may enable the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>to remove a director of a specified bank;</p></content></level><level class="para1"><num>(b)</num><content><p>to vary the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(c)</num><content><p>to terminate the service contract of a director of a specified bank;</p></content></level><level class="para1"><num>(d)</num><content><p>to appoint a director of a specified bank.</p></content></level></subsection><subsection><num>(2)</num><content><p>Subsection (1) also applies to a director of any undertaking which is a banking group company in respect of a specified bank.</p></content></subsection><subsection><num>(3)</num><content><p>Appointments under subsection (1)(d) are to be on terms and conditions agreed with the Bank of England.</p></content></subsection></section><section><num>48O</num><heading>Directions in or under resolution instrument</heading><subsection><num>(1)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>require one or more directors of the bank to comply with any general or specific directions that may be set out in the instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>enable the Bank of England to give written directions (whether general or specific) to one or more directors of the bank.</p></content></level></subsection><subsection><num>(2)</num><intro><p>A director—</p></intro><level class="para1"><num>(a)</num><content><p>is not to be regarded as failing to comply with any duty owed to any person (for example, a shareholder, creditor or employee of the bank) by virtue of any action or inaction in compliance with a direction given under subsection (1)(a) or (b);</p></content></level><level class="para1"><num>(b)</num><content><p>is to be immune from liability in damages in respect of action or inaction in accordance with a direction.</p></content></level></subsection><subsection><num>(3)</num><content><p>A director must comply with a direction within the period of time specified in the direction, or if no period of time is specified, as soon as reasonably practicable.</p></content></subsection><subsection><num>(4)</num><content><p>A direction under subsection (1)(a) or (b) is enforceable on an application made by the Bank of England, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.</p></content></subsection></section><section><num>48P</num><heading>Orders for safeguarding certain financial arrangements</heading><subsection><num>(1)</num><content><p>In this section “<term refersTo="#term-protected-arrangements">protected arrangements</term>” means security interests, title transfer collateral arrangements, set-off arrangements and netting arrangements.</p></content></subsection><subsection><num>(2)</num><intro><p>In subsection (1)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-netting-arrangements">netting arrangements</term>” means arrangements under which a number of claims or obligations can be converted into a net claim or obligation, and includes, in particular, “close-out” netting arrangements, under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-security-interests">security interests</term>” means arrangements under which one person acquires, by way of security, an actual or contingent interest in the property of another;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-set-off-arrangements">set-off arrangements</term>” means arrangements under which two or more debts, claims or obligations can be set off against each other;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-title-transfer-collateral-arrangements">title transfer collateral arrangements</term>” means arrangements under which Person 1 transfers assets to Person 2 on terms providing for Person 2 to transfer assets if specified obligations are discharged.</p></content></hcontainer></subsection><subsection><num>(3)</num><intro><p>The Treasury may by order—</p></intro><level class="para1"><num>(a)</num><content><p>restrict the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(b)</num><content><p>impose conditions on the exercise of any power within the scope of this paragraph in cases that involve, or where the exercise of the power might affect, protected arrangements;</p></content></level><level class="para1"><num>(c)</num><content><p>require any instrument that makes special bail-in provision to include specified provision, or provision to a specified effect, in respect of or for purposes connected with protected arrangements;</p></content></level><level class="para1"><num>(d)</num><content><p>provide for an instrument to be void or voidable, or for other consequences to arise, if or in so far as the instrument is made or purported to be made in contravention of a provision of the order (or of another order under this section);</p></content></level><level class="para1"><num>(e)</num><intro><p>specify principles to which the Bank of England is to be required to have regard in exercising specified powers—</p></intro><level class="para2"><num>(i)</num><content><p>that involve protected arrangements, or</p></content></level><level class="para2"><num>(ii)</num><content><p>where the exercise of the powers might affect protected arrangements.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>References to exercising a power within the scope of paragraph (a) or (b) of subsection (3) are to making an instrument containing provision made in reliance on section 12A(3)(a) or 44B (special bail-in provision).</p></content></subsection><subsection><num>(5)</num><intro><p>An order may apply to protected arrangements generally or only to arrangements—</p></intro><level class="para1"><num>(a)</num><content><p>of a specified kind, or</p></content></level><level class="para1"><num>(b)</num><content><p>made or applying in specified circumstances.</p></content></level></subsection><subsection><num>(6)</num><content><p>An order may include provision for determining which arrangements are to be, or not to be, treated as protected arrangements; in particular, an order may provide for arrangements to be classified not according to their description by the parties but according to one or more indications of how they are treated, or are intended to be treated, in commercial practice.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section “<term refersTo="#term-arrangements">arrangements</term>” includes arrangements which—</p></intro><level class="para1"><num>(a)</num><content><p>are formed wholly or partly by one or more contracts or trusts;</p></content></level><level class="para1"><num>(b)</num><content><p>arise under or are wholly or partly governed by the law of a country or territory outside the United Kingdom;</p></content></level><level class="para1"><num>(c)</num><content><p>wholly or partly arise automatically as a matter of law;</p></content></level><level class="para1"><num>(d)</num><content><p>involve any number of parties;</p></content></level><level class="para1"><num>(e)</num><content><p>operate partly by reference to other arrangements between parties.</p></content></level></subsection><subsection><num>(8)</num><intro><p>An order—</p></intro><level class="para1"><num>(a)</num><content><p>is to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>48Q</num><heading>Continuity</heading><subsection><num>(1)</num><content><p>A resolution instrument may provide for anything (including legal proceedings) that relates to anything affected by the instrument and is in the process of being done immediately before the instrument takes effect to be continued from the time the instrument takes effect.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may modify references (express or implied) in an instrument or document.</p></content></subsection><subsection><num>(3)</num><content><p>A resolution instrument may require or permit any person to provide information and assistance to the Bank of England or another person, for the purposes of or in connection with provision made or to be made in that or another resolution instrument.</p></content></subsection></section><section><num>48R</num><heading>Execution and registration of instruments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><content><p>A resolution instrument may permit or require the execution, issue or delivery of an instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>A resolution instrument may provide for any provision in the instrument to have effect irrespective of—</p></intro><level class="para1"><num>(a)</num><content><p>whether an instrument has been produced, delivered, transferred or otherwise dealt with;</p></content></level><level class="para1"><num>(b)</num><content><p>registration.</p></content></level></subsection><subsection><num>(3)</num><content><p>A resolution instrument may provide for the effect of an instrument executed, issued or delivered in accordance with the resolution instrument.</p></content></subsection><subsection><num>(4)</num><intro><p>A resolution instrument may—</p></intro><level class="para1"><num>(a)</num><content><p>entitle a person to be registered in respect of a security;</p></content></level><level class="para1"><num>(b)</num><content><p>require a person to effect registration.</p></content></level></subsection></section><section><num>48S</num><heading>Resolution instruments: general matters</heading><subsection><num>(1)</num><content><p>Provision made in a resolution instrument takes effect despite any restriction arising by virtue of contract or legislation or in any other way.</p></content></subsection><subsection><num>(2)</num><content><p>A resolution instrument may include incidental, consequential or transitional provision.</p></content></subsection><subsection><num>(3)</num><intro><p>In relying on subsection (2) a resolution instrument—</p></intro><level class="para1"><num>(a)</num><content><p>may make provision generally or only for specified purposes, cases or circumstances, and</p></content></level><level class="para1"><num>(b)</num><content><p>may make different provision for different purposes, cases or circumstances.</p></content></level></subsection></section><section><num>48T</num><heading>Procedure</heading><subsection><num>(1)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument in respect of a bank the Bank of England must send a copy to—</p></intro><level class="para1"><num>(a)</num><content><p>the bank,</p></content></level><level class="para1"><num>(b)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(c)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(d)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(e)</num><content><p>any other person specified in the code of practice under section 5.</p></content></level></subsection><subsection><num>(2)</num><intro><p>As soon as is reasonably practicable after making a resolution instrument the Bank of England must publish a copy—</p></intro><level class="para1"><num>(a)</num><content><p>on the Bank's internet website, and</p></content></level><level class="para1"><num>(b)</num><content><p>in two newspapers, chosen by the Bank of England to maximise the likelihood of the instrument coming to the attention of persons likely to be affected.</p></content></level></subsection><subsection><num>(3)</num><content><p>Where the Treasury receive a copy of a resolution instrument under subsection (1) they must lay a copy before Parliament.</p></content></subsection></section><section><num>48U</num><heading>Supplemental resolution instruments</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) with respect to a bank.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make, with respect to the bank, one or more resolution instruments designated by the Bank of England as supplemental resolution instruments.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a supplemental resolution instrument (but it is to be treated in the same way as a resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a supplemental resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(5)</num><content><p>The possibility of making a supplemental resolution instrument in reliance on subsection (2) is without prejudice to the possibility of making a new instrument in accordance with section 12A(2) (and not in reliance on subsection (2) above).</p></content></subsection></section><section><num>48V</num><heading>Onward transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument (“the original instrument”) providing for securities issued by a specified bank to be transferred to any person.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more onward transfer resolution instruments.</p></content></subsection><subsection><num>(3)</num><intro><p>An onward transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><intro><p>provides for the transfer of—</p></intro><level class="para2"><num>(i)</num><content><p>securities which were issued by the bank before the original instrument and have been transferred by the original instrument or a supplemental resolution instrument, or</p></content></level><level class="para2"><num>(ii)</num><content><p>securities which were issued by the bank after the original instrument;</p></content></level></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities issued by the bank (whether the transfer has been or is to be effected by that instrument, by another instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>An onward transfer resolution instrument may not transfer securities to the transferor under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to an onward transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making an onward transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 48U applies where the Bank of England has made an onward transfer resolution instrument.</p></content></subsection></section><section><num>48W</num><heading>Reverse transfer</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England has made an instrument (“the original instrument”) that is either—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument providing for the transfer of securities issued by a bank to a person (“<term refersTo="#term-the-transferee">the transferee</term>”), or</p></content></level><level class="para1"><num>(b)</num><content><p>an onward transfer resolution instrument (see section 48V) providing for the transfer of securities issued by a bank to a person (“the onward transferee”).</p></content></level></subsection><subsection><num>(2)</num><content><p>In a case falling within subsection (1)(a) the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the transferee (whether or not they were transferred by the original instrument).</p></content></subsection><subsection><num>(3)</num><content><p>In a case falling within subsection (1)(b), the Bank of England may make one or more reverse transfer resolution instruments in respect of securities issued by the bank and held by the onward transferee.</p></content></subsection><subsection><num>(4)</num><intro><p>A reverse transfer resolution instrument is a resolution instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of securities which are, or could be or could have been, transferred under paragraph (a).</p></content></level></subsection><subsection><num>(5)</num><content><p>Except where subsection (6) applies, the Bank of England may make a reverse transfer resolution instrument under subsection (2) only with the written consent of the transferee.</p></content></subsection><subsection><num>(6)</num><intro><p>This subsection applies where the transferee is—</p></intro><level class="para1"><num>(a)</num><content><p>a bail-in administrator, or</p></content></level><level class="para1"><num>(b)</num><content><p>a person who is not to be authorised to exercise any rights attaching to the securities except on the Bank of England's instructions.</p></content></level></subsection><subsection><num>(7)</num><content><p>The Bank of England may make a reverse transfer resolution instrument under subsection (3) only with the written consent of the onward transferee.</p></content></subsection><subsection><num>(8)</num><content><p>Sections 7 and 8A do not apply to a reverse transfer resolution instrument (but it is to be treated in the same way as any other resolution instrument for all other purposes including for the purposes of an application of a power under this Part).</p></content></subsection><subsection><num>(9)</num><intro><p>Before making a reverse transfer resolution instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(10)</num><content><p>Section 48U applies where the Bank of England has made a reverse transfer resolution instrument.</p></content></subsection></section></hcontainer></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-transfers-of-property"><heading><i>Transfers of property</i></heading><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><content><p><mod>After section 41 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>41A</num><heading>Transfer of property subsequent to resolution instrument</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a resolution instrument.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more property transfer instruments in respect of property, rights or liabilities of the bank.</p></content></subsection><subsection><num>(3)</num><content><p>Sections 7 and 8A do not apply to a property transfer instrument under subsection (2).</p></content></subsection><subsection><num>(4)</num><intro><p>Before making a property transfer instrument under subsection (2) the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><intro><p>In section 42 (supplemental property transfer instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-5-2-a"><num>(a)</num><content><p><mod>in subsection (1) for “12(2)” substitute <quotedText>“
12(2) or 41A(2)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-b"><num>(b)</num><content><p><mod>in subsection (4) for “and 8” substitute <quotedText>“
, 8 and 8A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-5-2-c"><num>(c)</num><content><p><mod>in subsection (6) for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p><mod>After section 44 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>44A</num><heading>Bail in: reverse property transfer</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has made a property transfer instrument in accordance with section 41A(2) (“the original instrument”).</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England may make one or more bail-in reverse property transfer instruments in respect of property, rights or liabilities of the transferee under the original instrument.</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in reverse property transfer instrument is a property transfer instrument which—</p></intro><level class="para1"><num>(a)</num><content><p>provides for a transfer to the transferor under the original instrument;</p></content></level><level class="para1"><num>(b)</num><content><p>makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, or could be or could have been, transferred under paragraph (a) (whether the transfer has been or is to be effected by that instrument or otherwise).</p></content></level></subsection><subsection><num>(4)</num><content><p>The Bank of England may make a bail-in reverse property transfer instrument only with the written consent of the transferee under the original instrument.</p></content></subsection><subsection><num>(5)</num><content><p>Sections 7 and 8A do not apply to a bail-in reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes, including for the purposes of the application of a power under this Part).</p></content></subsection><subsection><num>(6)</num><intro><p>Before making a bail-in reverse property transfer instrument the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the PRA,</p></content></level><level class="para1"><num>(b)</num><content><p>the FCA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the Treasury.</p></content></level></subsection><subsection><num>(7)</num><content><p>Section 42 (supplemental instruments) applies where the Bank of England has made a bail-in reverse property transfer instrument.</p></content></subsection></section><section><num>44B</num><heading>Property transfer instruments: special bail-in provision</heading><subsection><num>(1)</num><content><p>A property transfer instrument under section 12(2) or 41A(2), or an associated supplemental property transfer instrument, may make special bail-in provision with respect to the bank (see section 48B).</p></content></subsection><subsection><num>(2)</num><content><p>The reference in subsection (1) to an “associated” supplemental property transfer instrument is to a supplemental property transfer instrument in relation to which the original instrument (as defined in section 42(1)) is a property transfer instrument under section 12(2) or 41A(2).</p></content></subsection><subsection><num>(3)</num><content><p>In the case of a property transfer instrument under section 12(2), or a supplemental property transfer instrument in relation to which the original instrument is a property transfer instrument under section 12(2), the power under subsection (1) to make the provision described in section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes power to make provision replacing a liability (of any form) of the bank mentioned in subsection (1) with a security (of any form or class) of the bridge bank mentioned in section 12(1).</p></content></subsection><subsection><num>(4)</num><content><p>Where securities of the bridge bank (“B”) are, as a result of subsection (3), held by a person other than the Bank of England, that does not prevent B from being regarded for the purposes of this Part (see particularly section 12(1)) as being wholly owned by the Bank of England, as long as the Bank of England continues to hold all the ordinary shares issued by B.</p></content></subsection></section><section><num>44C</num><heading>Report on special bail-in provision</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes a property transfer instrument containing provision made in reliance on section 44B.</p></content></subsection><subsection><num>(2)</num><content><p>The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision was made in the case of the liabilities concerned.</p></content></subsection><subsection><num>(3)</num><content><p>If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.</p></content></subsection><subsection><num>(4)</num><intro><p>The insolvency treatment principles are that where an instrument includes special bail-in provision—</p></intro><level class="para1"><num>(a)</num><content><p>the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and</p></content></level><level class="para1"><num>(b)</num><content><p>any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.</p></content></level></subsection><subsection><num>(5)</num><content><p>A report must comply with any other requirements as to content that may be specified by the Treasury.</p></content></subsection><subsection><num>(6)</num><content><p>A report must be made as soon as reasonably practicable after the making of the property transfer instrument to which it relates.</p></content></subsection><subsection><num>(7)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-4"><num>(4)</num><content><p><mod>In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert <quotedText>“
, 44A(3)(b)
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-compensation"><heading><i>Compensation</i></heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-2-paragraph-6-1"><num>(1)</num><intro><p>In section 49 (orders)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-1-a"><num>(a)</num><content><p><mod>in subsection (1), for “three” substitute <quotedText>“
four
”</quotedText> and for “and property transfer instruments” substitute <quotedText>“
, property transfer instruments and orders and resolution instruments
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-1-b"><num>(b)</num><content><p><mod>after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>A “bail-in compensation order” is an order establishing a scheme for determining, in accordance with section 52A, whether any transferors or others should be paid compensation.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-2"><num>(2)</num><content><p><mod>In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified classes of creditor,” substitute <quotedText>“
persons of a specified description,
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-3"><num>(3)</num><content><p><mod>After section 52 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>52A</num><heading>Bail-in option</heading><subsection><num>(1)</num><intro><p>Subsection (2) applies if the Bank of England makes—</p></intro><level class="para1"><num>(a)</num><content><p>a resolution instrument under section 12A(2), or</p></content></level><level class="para1"><num>(b)</num><content><p>a property transfer instrument under section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>The Treasury must make a bail-in compensation order (see section 49(2A)).</p></content></subsection><subsection><num>(3)</num><intro><p>A bail-in compensation order may include provision for—</p></intro><level class="para1"><num>(a)</num><content><p>an independent valuer (in which case sections 54 to 56 are to apply);</p></content></level><level class="para1"><num>(b)</num><content><p>valuation principles (in which case section 57(2) to (5) is to apply).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-4"><num>(4)</num><intro><p>In section 53 (onward and reverse transfers), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-4-a"><num>(a)</num><content><p><mod>before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zza)</num><content><p>the Bank of England makes a supplemental share transfer instrument under section 26,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-b"><num>(b)</num><content><p><mod>after paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(zb)</num><content><p>the Treasury makes a supplemental share transfer order under section 27,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-c"><num>(c)</num><content><p><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(dza)</num><content><p>the Bank of England makes a supplemental property transfer instrument under section 42,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-d"><num>(d)</num><content><p><mod>after paragraph (f) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(fa)</num><content><p>the Bank of England makes a reverse property transfer instrument under section 44A(2),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-e"><num>(e)</num><content><p>omit the “or” after paragraph (g);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-f"><num>(f)</num><content><p><mod>after paragraph (h) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Bank of England makes a supplemental resolution instrument under section 48U,</p></content></level><level class="para1"><num>(j)</num><content><p>the Bank of England makes an onward transfer resolution instrument under section 48V(2), or</p></content></level><level class="para1"><num>(k)</num><content><p>the Bank of England makes a reverse transfer resolution instrument under section 48W(2) or (3).</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-4-g"><num>(g)</num><content><p><mod>in the heading, after “<b>transfers</b>” insert <quotedText>“
<b><abbr title="Et cetera" xml:lang="la">etc</abbr></b>
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-5"><num>(5)</num><intro><p>In section 54 (independent valuer)—</p></intro><level class="para1" eId="schedule-2-paragraph-6-5-a"><num>(a)</num><content><p><mod>in subsection (1), after “compensation scheme order” insert <quotedText>“
or bail-in compensation order
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-5-b"><num>(b)</num><content><p><mod>in subsection (4)(b), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-6"><num>(6)</num><content><p><mod>In section 56 (independent valuer: money), in subsection (2)(b) for “or third party compensation order” substitute <quotedText>“
, third party compensation order or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-7"><num>(7)</num><content><p><mod>In section 57 (valuation principles), in subsection (1), after “order” insert <quotedText>“
or bail-in compensation order
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-8"><num>(8)</num><content><p><mod>After section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Further mandatory provision: bail-in provision</heading><subsection><num>(1)</num><intro><p>The Treasury may make regulations about compensation arrangements in the case of—</p></intro><level class="para1"><num>(a)</num><content><p>resolution instruments under section 12A(2) and supplemental resolution instruments under section 48U(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>instruments (made under any provision) that include special bail-in provision.</p></content></level></subsection><subsection><num>(2)</num><intro><p>Regulations may—</p></intro><level class="para1"><num>(a)</num><content><p>require a resolution fund order, a compensation scheme order, a third party compensation order or a bail-in compensation order to include provision of a specified kind or to specified effect;</p></content></level><level class="para1"><num>(b)</num><content><p>make provision that is to be treated as forming part of any such order (whether (i) generally, (ii) only if applied, (iii) unless disapplied, or (iv) subject to express modification).</p></content></level></subsection><subsection><num>(3)</num><intro><p>Regulations may provide for whether compensation is to be paid, and if so what amount is to be paid, to be determined by reference to any factors or combination of factors; in particular, the regulations may provide for entitlement—</p></intro><level class="para1"><num>(a)</num><content><p>to depend in part upon the amounts which are or may be payable under a resolution fund order;</p></content></level><level class="para1"><num>(b)</num><content><p>to be contingent upon the occurrence or non-occurrence of specified events;</p></content></level><level class="para1"><num>(c)</num><content><p>to be determined wholly or partly by an independent valuer (within the meaning of sections 54 to 56) appointed in accordance with a compensation scheme order or bail-in compensation order.</p></content></level></subsection><subsection><num>(4)</num><intro><p>Regulations may make provision about payment including, in particular, provision for payments—</p></intro><level class="para1"><num>(a)</num><content><p>on account subject to terms and conditions;</p></content></level><level class="para1"><num>(b)</num><content><p>by instalment.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section><section><num>60B</num><heading>Principle of no less favourable treatment</heading><subsection><num>(1)</num><content><p>In making regulations under section 60A the Treasury must, in particular, have regard to the desirability of ensuring that pre-resolution shareholders and creditors of a bank do not receive less favourable treatment than they would have received had the bank entered insolvency immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(2)</num><intro><p>References in this section to the initial instrument are—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to compensation arrangements in the case of property transfer instruments under section 12(2), to the first instrument to be made under that provision with respect to the bank;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to compensation arrangements in other cases, to the first resolution instrument to be made under section 12A with respect to the bank.</p></content></level></subsection><subsection><num>(3)</num><content><p>The “pre-resolution shareholders and creditors” of a bank are the persons who held securities issued by the bank, or were creditors of the bank, immediately before the coming into effect of the initial instrument.</p></content></subsection><subsection><num>(4)</num><content><p>References in this section to insolvency include a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) receivership, (vi) composition with creditors, and (vii) a scheme of arrangement.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-6-9"><num>(9)</num><intro><p>In section 61(1) (sources of compensation),—</p></intro><level class="para1" eId="schedule-2-paragraph-6-9-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (c);</p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-b"><num>(b)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>bail-in compensation orders,</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-6-9-c"><num>(c)</num><content><p><mod>after paragraph (d) insert, “, and<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(e)</num><content><p>regulations under section 60A.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-6-10"><num>(10)</num><content><p><mod>In section 62(1) (procedure), omit the “and” at the end of paragraph (b), and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ba)</num><content><p>bail-in compensation orders, and</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-groups"><heading><i>Groups</i></heading><paragraph eId="schedule-2-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-2-paragraph-7-1"><num>(1)</num><content><p><mod>After section 81B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81BA</num><heading>Bail-in option</heading><subsection><num>(1)</num><content><p>The Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.</p></content></subsection><subsection><num>(2)</num><content><p>Condition 1 is that the PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of a bank in the same group.</p></content></subsection><subsection><num>(3)</num><intro><p>Condition 2 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in—</p></intro><level class="para1"><num>(a)</num><content><p>the stability of the financial systems of the United Kingdom,</p></content></level><level class="para1"><num>(b)</num><content><p>the maintenance of public confidence in the stability of those systems,</p></content></level><level class="para1"><num>(c)</num><content><p>the protection of depositors, or</p></content></level><level class="para1"><num>(d)</num><content><p>the protection of any client assets that may be affected.</p></content></level></subsection><subsection><num>(4)</num><content><p>Condition 3 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.</p></content></subsection><subsection><num>(5)</num><intro><p>Before determining whether Condition 2 is met, and if so how to react, the Bank of England must consult—</p></intro><level class="para1"><num>(a)</num><content><p>the Treasury,</p></content></level><level class="para1"><num>(b)</num><content><p>the PRA, and</p></content></level><level class="para1"><num>(c)</num><content><p>the FCA.</p></content></level></subsection><subsection><num>(6)</num><content><p>In exercising a stabilisation power in reliance on this section the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.</p></content></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-2"><num>(2)</num><content><p><mod>After section 81C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81CA</num><heading>Section 81BA: supplemental</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England has power under section 81BA to exercise a stabilisation power in respect of a banking group company.</p></content></subsection><subsection><num>(2)</num><content><p>The provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 and 8A) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.</p></content></subsection><subsection><num>(3)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>the provisions in this Act relating to resolution instruments are to be read in accordance with the general rule in subsection (4), but</p></content></level><level class="para1"><num>(b)</num><content><p>that is subject to the modifications in subsection (5);</p></content></level><wrapUp><p>and provisions in this Act and any other enactment are to be read with any modifications that may be necessary as a result of paragraphs (a) and (b).</p></wrapUp></subsection><subsection><num>(4)</num><intro><p>The general rule is that the provisions in this Act relating to resolution instruments (including supplemental resolution instruments) are to be read (so far as the context permits)—</p></intro><level class="para1"><num>(a)</num><content><p>as applying in relation to the bank as they apply in relation to the parent undertaking, and</p></content></level><level class="para1"><num>(b)</num><content><p>so, in particular, as allowing any provision that may be made in a resolution instrument in relation to the parent undertaking to be made (also or instead) in relation to the bank.</p></content></level></subsection><subsection><num>(5)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“<term refersTo="#term-the-bank">the bank</term>”)—</p></intro><level class="para1"><num>(a)</num><content><p>section 41A (transfer of property subsequent to resolution instrument) applies as if the reference in subsection (2) to the bank were to the parent undertaking, the bank and any other bank which is or was in the same group;</p></content></level><level class="para1"><num>(b)</num><intro><p>section 48V (onward transfer)—</p></intro><level class="para2"><num>(i)</num><content><p>applies as if the references in subsection (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group, and with the omission of subsection (4) of that section, and</p></content></level><level class="para2"><num>(ii)</num><content><p>is to be read as permitting the transfer of securities only if they are held by (or for the benefit of) the parent undertaking or a subsidiary company of the parent undertaking;</p></content></level></level><level class="para1"><num>(c)</num><content><p>section 48W (reverse transfer) applies as if the references in subsections (2) and (3) to “the bank” included the bank, the parent undertaking and any other bank which is or was in the same group.</p></content></level></subsection><subsection><num>(6)</num><content><p>Where section 48B (special bail-in provision) applies in accordance with subsection (4) (so that section 48B applies in relation to the bank mentioned in section 81BA(2) as it applies in relation to the parent undertaking mentioned in subsection (3)), the provision that may be made in accordance with section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes provision replacing a liability (of any form) of that bank with a security (of any form or class) of the parent undertaking.</p></content></subsection><subsection><num>(7)</num><intro><p>Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2)—</p></intro><level class="para1"><num>(a)</num><content><p>section 214B of the Financial Services and Markets Act 2000 (contribution to costs of special resolution regime) applies, and</p></content></level><level class="para1"><num>(b)</num><content><p>the reference in subsection (1)(b) of that section to the bank, and later references in that section, are treated as including references to any other bank which is a subsidiary undertaking of the parent undertaking (but not the parent undertaking itself).</p></content></level></subsection></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-7-3"><num>(3)</num><intro><p>In section 81D (interpretation: “banking group company” <abbr title="Et cetera" xml:lang="la">etc</abbr>)—</p></intro><level class="para1" eId="schedule-2-paragraph-7-3-a"><num>(a)</num><content><p><mod>in subsection (6), for “, 81C” substitute <quotedText>“
to 81CA
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-7-3-b"><num>(b)</num><content><p><mod>in subsection (7) for “section 81B” substitute <quotedText>“
sections 81B to 81CA
”</quotedText>.</mod></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-banks-regulated-by-the-financial-conduct-authority"><heading><i>Banks regulated by the Financial Conduct Authority</i></heading><paragraph eId="schedule-2-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 83A (modifications of Part 1 as it applies to banks not regulated by the Prudential Regulation Authority), in the table in subsection (2) insert the following entries at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 8A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 41A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 44A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 48H</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48U</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48V</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 48W</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Section 81BA</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-recognised-central-counterparties"><heading><i>Recognised central counterparties</i></heading><paragraph eId="schedule-2-paragraph-9" class="schProv1"><num><noteRef href="#key-1ae2b182a6b3fff3e2dd051310b09bab" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>9</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-insolvency-proceedings"><heading><i>Insolvency proceedings</i></heading><paragraph eId="schedule-2-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—</p></intro><level class="para1" eId="schedule-2-paragraph-10-a"><num>(a)</num><content><p><mod>in subsection (7)(b)(ii), after “Part 1” insert <quotedText>“
(and Condition 5 has been met, if applicable)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-b"><num>(b)</num><content><p><mod>after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><intro><p>Condition 5—</p></intro><level class="para1"><num>(a)</num><content><p>applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</p></content></level><level class="para1"><num>(b)</num><content><p>is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-c"><num>(c)</num><content><p><mod>in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-10-d"><num>(d)</num><content><p><mod>after subsection (10) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(11)</num><content><p>References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-state-aid"><heading><i>State aid</i></heading><paragraph eId="schedule-2-paragraph-11" class="schProv1"><num><noteRef href="#key-1388f7f47d63b0c81dc5424d5f05473b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>11</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-part-1-crossheading-other-amendments-of-the-act"><heading><i>Other amendments of the Act</i></heading><paragraph eId="schedule-2-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-2-paragraph-12-1"><num>(1)</num><content><p>Section 1 (overview) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-2"><num>(2)</num><content><p><mod>In subsection (2)(a), for “three” substitute <quotedText>“
four
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The four “stabilisation options” are—</p></intro><level class="para1"><num>(a)</num><content><p>transfer to a private sector purchaser (section 11),</p></content></level><level class="para1"><num>(b)</num><content><p>transfer to a bridge bank (section 12),</p></content></level><level class="para1"><num>(c)</num><content><p>the bail-in option (section 12A), and</p></content></level><level class="para1"><num>(d)</num><content><p>transfer to temporary public ownership (section 13).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-2-paragraph-12-4"><num>(4)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-2-paragraph-12-4-a"><num>(a)</num><content><p><mod>for “three” substitute <quotedText>“
four
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-b"><num>(b)</num><content><p><mod>before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>the resolution instrument powers (sections 12A(2) and 48U to 48W),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-12-4-c"><num>(c)</num><content><p><mod>in paragraph (b), after “33” insert <quotedText>“
, 41A
”</quotedText>.</mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 13 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-14" class="schProv1"><num>14</num><intro><p>In section 17 (share transfers: effect)—</p></intro><level class="para1" eId="schedule-2-paragraph-14-a"><num>(a)</num><content><p><mod>in subsection (1), after “order” insert, <quotedText>“
or by a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-b"><num>(b)</num><content><p><mod>in subsection (5), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-14-c"><num>(c)</num><content><p><mod>in subsection (6), after “order” insert <quotedText>“
or a resolution instrument
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In section 18 (share transfers: continuity), after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6)</num><content><p>This section applies to a resolution instrument as it applies to a share transfer instrument; and in relation to a resolution instrument references in this section to a “transfer” are to a transfer of securities (whether made by that or another resolution instrument) and “<term refersTo="#term-transferor">transferor</term>” and “<term refersTo="#term-transferee">transferee</term>” are to be read accordingly.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-16" class="schProv1"><num>16</num><intro><p>In section 44 (reverse property transfer)—</p></intro><level class="para1" eId="schedule-2-paragraph-16-a"><num>(a)</num><content><p><mod>in subsection (2), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-b"><num>(b)</num><content><p><mod>in subsection (3), after “more” insert <quotedText>“
bridge bank
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-c"><num>(c)</num><content><p><mod>in subsection (4), for “A reverse” substitute <quotedText>“
A bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-d"><num>(d)</num><intro><p>in subsection (4A)—</p></intro><level class="para2" eId="schedule-2-paragraph-16-d-i"><num>(i)</num><content><p><mod>after “make a” insert <quotedText>“
bridge bank
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-2-paragraph-16-d-ii"><num>(ii)</num><content><p><mod>in paragraph (b), for “the reverse” substitute <quotedText>“
the bridge bank reverse
”</quotedText>;</mod></p></content></level></level><level class="para1" eId="schedule-2-paragraph-16-e"><num>(e)</num><content><p><mod>in subsection (5), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-f"><num>(f)</num><content><p><mod>in subsection (6), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-g"><num>(g)</num><content><p><mod>in subsection (7), for “a reverse” substitute <quotedText>“
a bridge bank reverse
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-16-h"><num>(h)</num><content><p><mod>in the heading, for “<b>Reverse</b>” substitute <quotedText>“
<b>Bridge bank: reverse</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-17" class="schProv1"><num>17</num><content><p><mod>In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute <quotedText>“
, 12(2) or 41A(2)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-18" class="schProv1"><num>18</num><intro><p>In section 66 (general continuity obligation: share transfers)—</p></intro><level class="para1" eId="schedule-2-paragraph-18-a"><num>(a)</num><content><p><mod>in subsection (1)(a), after “13(2)” insert <quotedText>“
, or which falls within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-b"><num>(b)</num><content><p><mod>in subsection (1)(d)(i), after “11(2)(a)” insert <quotedText>“
, or in a case falling within subsection (1A)
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-18-c"><num>(c)</num><content><p><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content><p>A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another of securities issued by the bank (and the reference in subsection (1)(b) to “<term refersTo="#term-the-transfer">the transfer</term>” includes such a cancellation or conversion).</p></content></subsection></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-19" class="schProv1"><num>19</num><content><p><mod>In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert <quotedText>“
or resolution instrument
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-20" class="schProv1"><num>20</num><content><p><mod>In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert <quotedText>“
a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-21" class="schProv1"><num>21</num><intro><p>In section 71 (pensions), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-21-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-21-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-22" class="schProv1"><num>22</num><intro><p>In section 72 (enforcement), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-22-a"><num>(a)</num><content><p>omit the “or” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-22-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, or
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a resolution instrument.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-23" class="schProv1"><num>23</num><intro><p>In section 73 (disputes), in subsection (1)—</p></intro><level class="para1" eId="schedule-2-paragraph-23-a"><num>(a)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-2-paragraph-23-b"><num>(b)</num><content><p><mod>after paragraph (c) insert<quotedText startQuote="“">, and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>resolution instruments.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-24" class="schProv1"><num>24</num><content><p><mod>In section 74 (tax), in subsection (6), for “or 45” substitute <quotedText>“
, 45, 48U or 48V
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-25" class="schProv1"><num>25</num><content><p><mod>After section 80 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>80A</num><heading>Transfer for bail-in purposes: report</heading><subsection><num>(1)</num><content><p>This section applies where the Bank of England makes one or more resolution instruments under section 12A(2) in respect of a bank.</p></content></subsection><subsection><num>(2)</num><intro><p>The Bank of England must, on request by the Treasury, report to the Chancellor of the Exchequer about—</p></intro><level class="para1"><num>(a)</num><content><p>the exercise of the power to make a resolution instrument under section 12A(2),</p></content></level><level class="para1"><num>(b)</num><content><p>the activities of the bank, and</p></content></level><level class="para1"><num>(c)</num><content><p>any other matters in relation to the bank that the Treasury may specify.</p></content></level></subsection><subsection><num>(3)</num><content><p>In relation to the matters in subsection (2)(a) and (b), the report must comply with any requirements that the Treasury may specify.</p></content></subsection><subsection><num>(4)</num><content><p>The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-26" class="schProv1"><num>26</num><intro><p>In section 81A (accounting information to be included in reports under sections 80 and 81)—</p></intro><level class="para1" eId="schedule-2-paragraph-26-a"><num>(a)</num><content><p><mod>in subsection (1), for “or 81” substitute <quotedText>“
, 80A(2)(b) or 81
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-26-b"><num>(b)</num><content><p><mod>in the heading, for “<b>and 81</b>” substitute <quotedText>“
<b>, 80A(2)(b) and 81</b>
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-27" class="schProv1"><num>27</num><content><p><mod>In section 85 (temporary public ownership), in subsection (1), for “third” substitute <quotedText>“
fourth
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-28" class="schProv1"><num>28</num><content><p><mod>In section 136 (overview), in the Table in subsection (3), for “152” substitute <quotedText>“
152A
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-29" class="schProv1"><num>29</num><content><p><mod>After section 152 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>152A</num><heading>Property transfer from transferred institution</heading><subsection><num>(1)</num><intro><p>This section applies where the Bank of England—</p></intro><level class="para1"><num>(a)</num><content><p>makes a resolution instrument that transfers securities issued by a bank (or a bank's parent undertaking), in accordance with section 12A(2), and</p></content></level><level class="para1"><num>(b)</num><content><p>later makes a property transfer instrument from the bank or from another bank which is or was in the same group as the bank, in accordance with section 41A(2).</p></content></level></subsection><subsection><num>(2)</num><content><p>This Part applies to the transferor under the property transfer instrument made in accordance with section 41A(2) as to the transferor under a property transfer instrument made in accordance with section 12(2).</p></content></subsection><subsection><num>(3)</num><intro><p>For that purpose this Part applies with any modifications specified by the Treasury in regulations; and any regulations—</p></intro><level class="para1"><num>(a)</num><content><p>are to be made by statutory instrument, and</p></content></level><level class="para1"><num>(b)</num><content><p>may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.</p></content></level></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-30" class="schProv1"><num>30</num><content><p><mod>In section 220 (insolvency <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content><p>The fact that ownership of an authorised bank is transferred or otherwise changed as a result of a resolution instrument (or an instrument treated as a resolution instrument) does not itself prevent the bank from relying on section 213.</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-2-paragraph-31" class="schProv1"><num>31</num><intro><p>In section 259 (statutory instruments)—</p></intro><level class="para1" eId="schedule-2-paragraph-31-a"><num>(a)</num><content><p><mod>in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute <quotedText>“
Third party compensation: partial property transfers
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-b"><num>(b)</num><content><p><mod>in the Table in subsection (3), in Part 1, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48F(1) and (2)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to amend definition of “excluded liabilities”</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48G</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Insolvency treatment principles</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48P</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Safeguarding of certain financial arrangements</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">52A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation orders</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“60A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Third party compensation: instruments containing special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-c"><num>(c)</num><content><p><mod>in the Table in subsection (3), in Part 3, at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:23%"/><default:col span="1" style="width:44%"/><default:col span="1" style="width:33%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">152A</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Property transfer from transferred institution</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Draft affirmative resolution</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-d"><num>(d)</num><content><p><mod>in subsection (5), after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(da)</num><content><p>section 60A (special resolution regime: instruments containing special bail-in provision),</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-2-paragraph-31-e"><num>(e)</num><content><p><mod>in subsection (5), after paragraph (k) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ka)</num><content><p>section 152A (bank administration: property transfer from transferred institution),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></paragraph><paragraph eId="schedule-2-paragraph-32" class="schProv1"><num>32</num><content><p><mod>In section 261 (index of defined terms), in the Table, at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Bail-in compensation order</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">49”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Resolution instrument</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">12A”</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></p><p><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:33%"/><default:col span="1" style="width:67%"/></default:colgroup><default:tbody><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">“Special bail-in provision</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">48B</p></default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph></hcontainer></part><part eId="schedule-2-part-2"><num><b>PART 2</b></num><heading>Modification of Investment Bank Special Administration Regulations 2011</heading><paragraph eId="schedule-2-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-2-paragraph-33-1"><num>(1)</num><content><p>This paragraph modifies the application of the Investment Bank Special Administration Regulations 2011 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2011/245) (“<term refersTo="#term-the-regulations" eId="term-the-regulations">the regulations</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-2"><num>(2)</num><content><p>In sub-paragraph (1) “<term refersTo="#term-the-relevant-3-month-period" eId="term-the-relevant-3-month-period">the relevant 3-month period</term>” means the 3 months ending with the date on which the FCA receives the notification under Condition 1 in regulation 8 of the regulations.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-33-4"><num>(4)</num><intro><p>In regulation 8 (in its application to those cases)—</p></intro><level class="para1" eId="schedule-2-paragraph-33-4-a"><num>(a)</num><content><p><mod>in paragraph (5)(c)(ii), for “appropriate regulator” substitute <quotedText>“
Bank of England
”</quotedText> and after “notice” insert <quotedText>“
and the appropriate regulator
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-b"><num>(b)</num><content><p>in paragraph (6), omit sub-paragraph (a) (but continue to read “that” in sub-paragraph (b) as a reference to the insolvency procedure to which the notice relates);</p></content></level><level class="para1" eId="schedule-2-paragraph-33-4-c"><num>(c)</num><content><p><mod>after paragraph (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(6A)</num><content><p>Where the FCA receives notice under Condition 1, it must also inform the Bank of England of the contents of the notice.</p></content></subsection><subsection><num>(6B)</num><content><p>Where the Bank of England receives notice under paragraph (6A), it must, within the period in Condition 3, inform the person who gave the notice and the appropriate regulator whether or not it consents to the insolvency procedure to which the notice relates going ahead.</p></content></subsection></quotedStructure></mod></p></content></level></subparagraph></paragraph></part></hcontainer><hcontainer name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote"><p>
Section 35</p></authorialNote></num><heading>Consequential amendments relating to Part 4</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-financial-services-and-markets-act-2000"><heading><i>Financial Services and Markets Act 2000</i></heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><content><p>Section 59 of FSMA 2000 (approval for particular arrangements) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><content><p><mod>In subsection (1), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p><mod>In subsection (2), for the words from “the appropriate regulator” to the end substitute <quotedText>“
that person is acting in accordance with an approval given by the appropriate regulator under this section.
”</quotedText></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><content><p>Section 59A of FSMA 2000 (specifying functions as controlled functions: supplementary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1)(a) and (b), for “significant-influence” substitute <quotedText>“
senior management
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>Senior management function” has the meaning given by section 59ZA.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-3-paragraph-3-1"><num>(1)</num><content><p>Section 63 of FSMA 2000 (withdrawal of approval) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-2"><num>(2)</num><content><p><mod>In subsection (1A)(a), for “significant-influence function” substitute <quotedText>“
relevant senior management function
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-3-3"><num>(3)</num><content><p><mod>For subsection (1B) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><content><p>In subsection (1A) “<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the PRA is satisfied is a senior management function as defined in section 59ZA (whether or not the function has been designated as such by the FCA).</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 63A of FSMA 2000 (power to impose penalties), in subsection (2), for paragraph (b) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(b)</num><content><p>P, when performing the function, is not acting in accordance with an approval given under section 59.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-3-paragraph-5-1"><num>(1)</num><content><p>Section 66 of FSMA 2000 (disciplinary powers) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-2"><num>(2)</num><content><p><mod>In subsection (3), for paragraph (ab) (and the “or” following it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ab)</num><content><p>impose, for such period as it considers appropriate, any conditions in relation to any such approval which it considers appropriate;</p></content></level><level class="para1"><num>(ac)</num><content><p>limit the period for which any such approval is to have effect;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-3"><num>(3)</num><content><p><mod>In subsection (3A), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-4"><num>(4)</num><content><p><mod>In subsection (3B), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-5"><num>(5)</num><content><p><mod>In subsection (3C), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-5-6"><num>(6)</num><intro><p>In subsection (3D)—</p></intro><level class="para1" eId="schedule-3-paragraph-5-6-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restriction” substitute <quotedText>“
, condition or limitation
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-b"><num>(b)</num><content><p>omit the “or” at the end of paragraph (a),</p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-c"><num>(c)</num><content><p><mod>in paragraph (b), for “restriction” substitute <quotedText>“
condition
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-5-6-d"><num>(d)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>vary a limitation so as to increase the period for which the approval is to have effect.</p></content></level></quotedStructure></mod></p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-5-7"><num>(7)</num><content><p><mod>In subsection (9), for “restriction” substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-3-paragraph-6-1"><num>(1)</num><content><p>Section 67 of FSMA 2000 (disciplinary measures: procedure and right to refer to Tribunal) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-2"><num>(2)</num><content><p><mod>In subsection (1), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-3"><num>(3)</num><content><p><mod>In subsection (2A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-4"><num>(4)</num><content><p><mod>After subsection (2A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2B)</num><content><p>A warning notice about a proposal to limit the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (4), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-6"><num>(6)</num><content><p><mod>In subsection (5A), for “restriction” (in both places) substitute <quotedText>“
condition
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-7"><num>(7)</num><content><p><mod>After subsection (5A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5B)</num><content><p>A decision notice about limiting the period for which an approval is to have effect must state the length of that period.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-8"><num>(8)</num><content><p><mod>In subsection (7), for “or (ab)” substitute <quotedText>“
, (ab) or (ac)
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><intro><p>In section 69 of FSMA 2000 (statement of policy), in subsection (1)—</p></intro><level class="para1" eId="schedule-3-paragraph-7-a"><num>(a)</num><content><p><mod>in paragraph (a), for “or restrictions” substitute <quotedText>“
, conditions or limitations
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-b"><num>(b)</num><content><p>omit the “and” at the end of paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-7-c"><num>(c)</num><content><p><mod>in paragraph (c), for “restrictions” substitute <quotedText>“
conditions
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-7-d"><num>(d)</num><content><p><mod>at the end of paragraph (c) insert<quotedText startQuote="“">; and
</quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>the period for which approvals under section 59 are to have effect as a result of a limitation under section 66.</p></content></level></quotedStructure></mod></p></content></level></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 138A of FSMA 2000 (modification or waiver of rules), in subsection (2), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="rule" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules made by either regulator under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 138D of FSMA 2000 (actions for damages), in subsection (5), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(za)</num><content><p>rules under section 64A (rules of conduct);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro><p>In section 140A of FSMA 2000 (interpretation), in the definition of “regulating provisions”—</p></intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><intro><p>in paragraph (a)—</p></intro><level class="para2" eId="schedule-3-paragraph-10-a-i"><num>(i)</num><content><p>omit sub-paragraph (iii), and</p></content></level><level class="para2" eId="schedule-3-paragraph-10-a-ii"><num>(ii)</num><content><p>in sub-paragraph (iv), omit “64 or”;</p></content></level></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content><p>in paragraph (b), omit sub-paragraphs (ii) and (iii).</p></content></level></paragraph><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><content><p><mod>In section 347 of FSMA 2000 (the record of authorised persons <abbr title="et cetera" xml:lang="la">etc.</abbr>), in subsection (2)(g), in sub-paragraphs (ii) and (iii), for “relevant authorised person” substitute <quotedText>“
authorised person concerned
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-12" class="schProv1"><num>12</num><content><p><mod>In section 387 of FSMA 2000 (warning notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-13" class="schProv1"><num>13</num><content><p><mod>In section 388 of FSMA 2000 (decision notices), in subsection (1A), for “or 55I(8)” substitute <quotedText>“
, 55I(8) or 61(2D)
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-14" class="schProv1"><num>14</num><content><p><mod>In section 395 of FSMA 2000 (supervisory notices), in subsection (13), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>63ZC(4), (8) or (9)(b);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></paragraph><paragraph eId="schedule-3-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-3-paragraph-15-1"><num>(1)</num><content><p>Section 415B of FSMA 2000 (consultation in relation to taking certain enforcement action) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-15-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-15-2-a"><num>(a)</num><content><p><mod>in paragraph (b), for “significant-influence” substitute <quotedText>“
relevant senior management
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-3-paragraph-15-2-b"><num>(b)</num><content><p>omit the definitions appearing after that paragraph.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-15-3"><num>(3)</num><content><p><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><intro><p>In subsection (4)—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-arrangement">arrangement</term>” has the same meaning as in section 59;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-senior-management-function">relevant senior management function</term>” means a function which the FCA is satisfied is a senior management function as defined in section 59ZA (whether or not it has been designated as such under section 59(6A) or (6B)).</p></content></hcontainer></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-16" class="schProv1"><num>16</num><intro><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in paragraph 8(3)—</p></intro><level class="para1" eId="schedule-3-paragraph-16-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-16-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-16-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-16-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></paragraph><paragraph eId="schedule-3-paragraph-17" class="schProv1"><num><noteRef href="#key-6c864b8740b053ea21e5023af03183be" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>17</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-financial-services-act-2012"><heading><i>Financial Services Act 2012</i></heading><paragraph eId="schedule-3-paragraph-18" class="schProv1"><num>18</num><content><p>In section 14 of the Financial Services Act 2012, omit subsection (4).</p></content></paragraph><paragraph eId="schedule-3-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-3-paragraph-19-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-19-2"><num>(2)</num><intro><p>In subsection (4)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-2-a"><num>(a)</num><content><p>in paragraph (b), omit “64 or”;</p></content></level><level class="para1" eId="schedule-3-paragraph-19-2-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-2-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-2-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph><subparagraph eId="schedule-3-paragraph-19-3"><num>(3)</num><intro><p>In subsection (5)—</p></intro><level class="para1" eId="schedule-3-paragraph-19-3-a"><num>(a)</num><content><p>omit paragraph (b);</p></content></level><level class="para1" eId="schedule-3-paragraph-19-3-b"><num>(b)</num><intro><p>in paragraph (c)(i)—</p></intro><level class="para2" eId="schedule-3-paragraph-19-3-b-i"><num>(i)</num><content><p><mod>after “section” insert <quotedText>“
63ZD,
”</quotedText>, and</mod></p></content></level><level class="para2" eId="schedule-3-paragraph-19-3-b-ii"><num>(ii)</num><content><p>omit “64,”.</p></content></level></level></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-4"><num>SCHEDULE 4<authorialNote class="referenceNote"><p>
Section 40</p></authorialNote></num><heading>The Payment Systems Regulator</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-introductory"><heading><i>Introductory</i></heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><intro><p>In this Schedule—</p></intro><level class="para1" eId="schedule-4-paragraph-1-a"><num>(a)</num><content><p>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-1-b"><num>(b)</num><content><p>references to the functions of the Regulator are to functions conferred on it by or under this Part.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-constitution"><heading><i>Constitution</i></heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><intro><p>The board is to consist of the following members—</p></intro><level class="para1" eId="schedule-4-paragraph-2-2-a"><num>(a)</num><content><p>a member to chair it, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-b"><num>(b)</num><content><p>a member to be the Managing Director, appointed by the FCA with the approval of the Treasury;</p></content></level><level class="para1" eId="schedule-4-paragraph-2-2-c"><num>(c)</num><content><p>one or more other members appointed by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>The persons who may be appointed under sub-paragraph (2) include persons who are members of the FCA's governing body.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-5"><num>(5)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-6"><num>(6)</num><content><p>A person appointed under sub-paragraph (2)(c) is liable to removal from office by the FCA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-status"><heading><i>Status</i></heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>The Regulator is not to be regarded as exercising functions on behalf of the Crown.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><content><p>The officers and staff of the Regulator are not to be regarded as Crown servants.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-budget"><heading><i>Budget</i></heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p>The Regulator must adopt an annual budget which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><intro><p>The budget must be adopted—</p></intro><level class="para1" eId="schedule-4-paragraph-4-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the budget for a financial year at any time after its adoption.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-4"><num>(4)</num><intro><p>Before adopting or varying a budget, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-4-4-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-4-4-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-5"><num>(5)</num><content><p>The Regulator must publish each budget, and each variation of a budget, in the way it considers appropriate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-arrangements-for-discharging-functions"><heading><i>Arrangements for discharging functions</i></heading><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-4-paragraph-5-1"><num>(1)</num><intro><p>The Regulator may make arrangements for any of its functions to be discharged by—</p></intro><level class="para1" eId="schedule-4-paragraph-5-1-a"><num>(a)</num><content><p>a committee, sub-committee, officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-1-b"><num>(b)</num><content><p>an officer or member of staff of the FCA.</p></content></level><wrapUp><p>This is subject to sub-paragraphs (2) to (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-5-2"><num>(2)</num><content><p>In exercising any functions within sub-paragraph (3), the Regulator must act through its board.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-5-3"><num>(3)</num><intro><p>The functions referred to in sub-paragraph (2) are—</p></intro><level class="para1" eId="schedule-4-paragraph-5-3-a"><num>(a)</num><content><p>giving general directions under section 54;</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-b"><num>(b)</num><content><p>imposing generally-imposed requirements under section 55.</p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-c"><num><ins class="first" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"><noteRef uk:name="commentary" href="#key-b7a3182a9a00b243c6eef3b3b3d589f6" class="commentary"/>(c)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making technical standards in accordance with section 97A; and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-5-3-d"><num><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">(d)</ins></num><content><p><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">making </ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit instruments under the Financial Regulators’ Powers (Technical Standards) (Amendment </ins><abbr title="et cetera" xml:lang="la"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">etc.</ins></abbr><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">) (</ins><abbr class="acronym" title="European Union"><ins ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6">EU</ins></abbr><ins class="last" ukl:ChangeId="key-b7a3182a9a00b243c6eef3b3b3d589f6-1544461362360" ukl:CommentaryRef="key-b7a3182a9a00b243c6eef3b3b3d589f6"> Exit) Regulations 2018.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-5-4"><num>(4)</num><content><p>The function of issuing general guidance may not be discharged by an officer or member of staff of the Regulator or of the FCA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-plan"><heading><i>Annual plan</i></heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-4-paragraph-6-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-2"><num>(2)</num><intro><p>The plan must be prepared—</p></intro><level class="para1" eId="schedule-4-paragraph-6-2-a"><num>(a)</num><content><p>in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-2-b"><num>(b)</num><content><p>in the case of each subsequent financial year, before the start of the financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-3"><num>(3)</num><content><p>The Regulator may, with the approval of the FCA, vary the plan in respect of a financial year at any time after its preparation.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-4"><num>(4)</num><intro><p>An annual plan in respect of a financial year must set out—</p></intro><level class="para1" eId="schedule-4-paragraph-6-4-a"><num>(a)</num><content><p>the aims of the Regulator for the year,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-b"><num>(b)</num><content><p>how the extent to which each of those aims is met is to be determined,</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-c"><num>(c)</num><content><p>the relative priorities of each of those aims, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-4-d"><num>(d)</num><content><p>how its resources are to be allocated among the activities to be carried on in connection with the discharge of its functions.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-5"><num>(5)</num><content><p>In sub-paragraph (4) references to aims for a financial year include aims for a longer period that includes that year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-6-6"><num>(6)</num><intro><p>Before preparing or varying an annual plan, the Regulator must consult—</p></intro><level class="para1" eId="schedule-4-paragraph-6-6-a"><num>(a)</num><content><p>the Treasury, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-6-b"><num>(b)</num><content><p>such other persons (if any) as the Regulator considers appropriate.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-6-7"><num>(7)</num><content><p>The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-report"><heading><i>Annual report</i></heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><content><p>At least once a year, the Regulator must make a report to the FCA in relation to the discharge of its functions.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><intro><p>The report must—</p></intro><level class="para1" eId="schedule-4-paragraph-7-2-a"><num>(a)</num><content><p>set out the extent to which the Regulator has met its aims and priorities for the period covered by the report,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-b"><num>(b)</num><content><p>set out the extent to which the Regulator has advanced its payment systems objectives,</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-ba"><num><ins class="first" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b"><noteRef uk:name="commentary" href="#key-d8ba6dc64d472e2f5694c994eaa1726b" class="commentary"/>(ba)</ins></num><content><p><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out any engagement with a statutory panel established under section 103(3),</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-bb"><num><ins ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">(bb)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d8ba6dc64d472e2f5694c994eaa1726b-1695299882822" ukl:CommentaryRef="key-d8ba6dc64d472e2f5694c994eaa1726b">set out how the Regulator has complied with the statement of policy on panel appointments prepared under section 104I in relation to the process for making appointments and the matters considered in determining who is appointed,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-c"><num>(c)</num><content><p>include a copy of its latest accounts, and</p></content></level><level class="para1" eId="schedule-4-paragraph-7-2-d"><num>(d)</num><content><p>comply with any requirement specified in rules made by the FCA.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-3"><num>(3)</num><content><p>The Regulator must publish each report in the way it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-4"><num>(4)</num><content><p>Nothing in this paragraph requires the Regulator to make a report at any time in the period of 12 months beginning with its establishment.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-5"><num>(5)</num><intro><p>The Treasury may—</p></intro><level class="para1" eId="schedule-4-paragraph-7-5-a"><num>(a)</num><content><p>require the Regulator to comply with any provision of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or</p></content></level><level class="para1" eId="schedule-4-paragraph-7-5-b"><num>(b)</num><content><p>direct that any provision of that Act about accounts and their audit is to apply to the Regulator with such modifications as are specified in the direction, whether or not the provision would otherwise apply to it.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-7"><num>(7)</num><content><p>Proceedings under sub-paragraph (6) may be brought only by the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-8"><num>(8)</num><content><p>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).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-other-reports"><heading><ins class="first" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8"><noteRef uk:name="commentary" href="#key-db76788f35b2dee95bce97d608ad08e8" class="commentary"/>Other reports</ins></heading><paragraph eId="schedule-4-paragraph-7A" class="schProv1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">7A</ins></num><subparagraph eId="schedule-4-paragraph-7A-1"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(1)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-2"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury may give a direction under this paragraph requiring information to be published only if the Treasury consider that—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-2-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">the information is reasonably necessary for the purpose of reviewing and scrutinising the discharge of the Regulator’s functions, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-2-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">other available information is not sufficient to meet that purpose.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-3"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(3)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-4"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(4)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">Nothing in this paragraph requires the inclusion in the report of any information whose publication would be against the public interest.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-5"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(5)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may not—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-5-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require a report to be published more than once in each quarter;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-5-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">require the publication of information that is confidential information as defined by section 91(2).</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-6"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(6)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must consult the Regulator before giving a direction under this paragraph.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-7"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(7)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7A-8"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(8)</ins></num><intro><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">The Treasury must—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-7A-8-a"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(a)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">lay before Parliament a copy of a direction given under this paragraph, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-7A-8-b"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(b)</ins></num><content><p><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">publish the direction in such manner as the Treasury think fit.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-7A-9"><num><ins ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">(9)</ins></num><content><p><ins class="last" ukl:ChangeId="key-db76788f35b2dee95bce97d608ad08e8-1695293449157" ukl:CommentaryRef="key-db76788f35b2dee95bce97d608ad08e8">A direction under this paragraph may be varied or revoked by the giving of a further direction.</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-audit-of-accounts"><heading><i>Audit of accounts</i></heading><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-4-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-2"><num>(2)</num><intro><p>The Comptroller and Auditor General must—</p></intro><level class="para1" eId="schedule-4-paragraph-8-2-a"><num>(a)</num><content><p>examine, certify and report on accounts received under this paragraph, and</p></content></level><level class="para1" eId="schedule-4-paragraph-8-2-b"><num>(b)</num><content><p>send a copy of the certified accounts and the report to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-8-3"><num>(3)</num><content><p>The Treasury must lay the copy of the certified accounts and the report before Parliament.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-4"><num>(4)</num><content><p>The Regulator must send a copy of the certified accounts and the report to the FCA.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-8-6"><num>(6)</num><content><p>In this paragraph “<term refersTo="#term-annual-accounts" eId="term-annual-accounts">annual accounts</term>” has the meaning given by section 471 of the Companies Act 2006.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-funding"><heading><i>Funding <ins class="first last" ukl:ChangeId="key-eafdb0dcff0387e7f999fe6dba789f07-1544449698270" ukl:CommentaryRef="key-eafdb0dcff0387e7f999fe6dba789f07"><noteRef uk:name="commentary" href="#key-eafdb0dcff0387e7f999fe6dba789f07" class="commentary"/>(participants in regulated payment systems)</ins> </i></heading><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><intro><p>The purposes are—</p></intro><level class="para1" eId="schedule-4-paragraph-9-2-a"><num>(a)</num><content><p>meeting the relevant costs (see sub-paragraph (3)), and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-2-b"><num>(b)</num><content><p>enabling the Regulator to maintain adequate reserves.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-3"><num>(3)</num><intro><p>In this paragraph “<term refersTo="#term-the-relevant-costs" eId="term-the-relevant-costs">the relevant costs</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-9-3-a"><num>(a)</num><content><p>the expenses incurred, or expected to be incurred, by the Regulator in connection with the discharge of its functions,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-b"><num>(b)</num><content><p>the expenses incurred by the FCA in establishing the Regulator,</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-c"><num>(c)</num><content><p>any other expenses incurred by the FCA in connection with the discharge of its functions under this Part, and</p></content></level><level class="para1" eId="schedule-4-paragraph-9-3-d"><num>(d)</num><content><p>any expenses incurred, or expected to be incurred, by the FCA in connection with the discharge of the Regulator's functions by an officer or member of staff of the FCA under arrangements made under paragraph 5.</p></content></level><wrapUp><p>For the purposes of paragraph (b) it does not matter when the expenses were incurred.</p></wrapUp></subparagraph><subparagraph eId="schedule-4-paragraph-9-4"><num>(4)</num><content><p>Before making any rules under sub-paragraph (1) the FCA must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-5"><num>(5)</num><content><p>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”).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-6"><num>(6)</num><intro><p>The FCA must pay to the Regulator the amounts that it receives under the rules, apart from the following amounts (which it may keep)—</p></intro><level class="para1" eId="schedule-4-paragraph-9-6-a"><num>(a)</num><content><p>amounts in respect of expenses falling within sub-paragraph (3)(b) to (d);</p></content></level><level class="para1" eId="schedule-4-paragraph-9-6-b"><num>(b)</num><content><p>amounts in respect of its collection costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-9-7"><num>(7)</num><content><p>In this paragraph “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the rules.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-8"><num>(8)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-fundingn1"><heading><i><ins class="first" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e"><noteRef uk:name="commentary" href="#key-478faf7e4cd2756f6e2e7c88af07f23e" class="commentary"/>Funding (regulated persons)</ins></i></heading><paragraph eId="schedule-4-paragraph-9A" class="schProv1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">9A</ins></num><subparagraph eId="schedule-4-paragraph-9A-1"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(1)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-2"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(2)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-3"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(3)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">Before making any rules under this paragraph, the Regulator must consult the FCA and the Treasury.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-4"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(4)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">In this paragraph “specified” means specified in the rules.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-5"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(5)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9A-6"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(6)</ins></num><intro><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">The sections referred to in sub-paragraph (5) are—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-9A-6-a"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(a)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 137T (general supplementary powers) as if the reference in paragraph (a) to authorised person were a reference to regulated persons;</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-b"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(b)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138A (modification or waiver of rules) as if the reference to the regulator’s objectives were a reference to the payment systems objectives of the Regulator (within the meaning of section 49);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-c"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(c)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138B (publication of directions under section 138A);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-d"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(d)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138E (limits on effects of contravening rules), ignoring subsection (3);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-e"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(e)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138F (notification of rules), ignoring subsection (2);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-f"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(f)</ins></num><content><p><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138G (rule-making instruments);</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-9A-6-g"><num><ins ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">(g)</ins></num><content><p><ins class="last" ukl:ChangeId="key-478faf7e4cd2756f6e2e7c88af07f23e-1544454264972" ukl:CommentaryRef="key-478faf7e4cd2756f6e2e7c88af07f23e">section 138H (verification of rules).</ins></p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-penalty-receipts"><heading><i>Penalty receipts</i></heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-4-paragraph-10-1"><num>(1)</num><content><p>The Regulator must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-3"><num>(3)</num><intro><p>The Regulator's “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—</p></intro><level class="para1" eId="schedule-4-paragraph-10-3-a"><num>(a)</num><content><p>the exercise, or consideration of the possible exercise, of any of its enforcement powers in particular cases, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-3-b"><num>(b)</num><content><p>the recovery of penalties imposed under section 73.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-4"><num>(4)</num><intro><p>For the purposes of sub-paragraph (3) the Regulator's enforcement powers are—</p></intro><level class="para1" eId="schedule-4-paragraph-10-4-a"><num>(a)</num><content><p>its powers under sections 72 to 75;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-b"><num>(b)</num><content><p>its powers under any other enactment specified by the Treasury by order;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-c"><num>(c)</num><content><p>its powers in relation to the investigation of relevant offences;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-4-d"><num>(d)</num><content><p>its powers in England and Wales or Northern Ireland in relation to the prosecution of relevant offences.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-5"><num>(5)</num><intro><p>In sub-paragraph (4) “<term refersTo="#term-relevant-offences" eId="term-relevant-offences">relevant offences</term>” means—</p></intro><level class="para1" eId="schedule-4-paragraph-10-5-a"><num>(a)</num><content><p>offences under this Part;</p></content></level><level class="para1" eId="schedule-4-paragraph-10-5-b"><num>(b)</num><content><p>any other offences specified by the Treasury by order.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-6"><num>(6)</num><content><p>The Treasury may give directions to the Regulator as to how it is to comply with its duty under sub-paragraph (1).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-7"><num>(7)</num><intro><p>The directions may in particular—</p></intro><level class="para1" eId="schedule-4-paragraph-10-7-a"><num>(a)</num><content><p>specify descriptions of expenditure that are, or are not, to be regarded as incurred in connection with either of the matters mentioned in sub-paragraph (3),</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-b"><num>(b)</num><content><p>relate to the calculation and timing of the deduction in respect of the Regulator's enforcement costs, and</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-c"><num>(c)</num><content><p>specify the time when any payment is required to be made to the Treasury.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-8"><num>(8)</num><intro><p>The directions may also require the Regulator to provide the Treasury at specified times with specified information relating to—</p></intro><level class="para1" eId="schedule-4-paragraph-10-8-a"><num>(a)</num><content><p>penalties that the Regulator has imposed under section 73, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-8-b"><num>(b)</num><content><p>the Regulator's enforcement costs.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-9"><num>(9)</num><content><p>The Treasury must pay into the Consolidated Fund any sums received by them under this paragraph.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-4-paragraph-11-1"><num>(1)</num><content><p>The Regulator must prepare and operate a scheme (“<term refersTo="#term-the-financial-penalty-scheme" eId="term-the-financial-penalty-scheme">the financial penalty scheme</term>”) 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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-2"><num>(2)</num><content><p>The financial penalty scheme may, in particular, make different provision with respect to different classes of participant.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-4"><num>(4)</num><content><p>Up-to-date details of the financial penalty scheme must be set out in a document (the “scheme details”).</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-3"><num>(3)</num><content><p>The draft must be accompanied by notice that representations about the proposals may be made to the Regulator within a specified time.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-4"><num>(4)</num><content><p>Before making the scheme, the Regulator must have regard to any representations made to it in accordance with sub-paragraph (3).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-5"><num>(5)</num><intro><p>If the Regulator makes the proposed scheme, it must publish an account, in general terms, of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-5-a"><num>(a)</num><content><p>the representations made to it in accordance with sub-paragraph (3), and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-5-b"><num>(b)</num><content><p>its response to them.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-7"><num>(7)</num><content><p>The Regulator must, without delay, give the Treasury a copy of any scheme details published by it.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-8"><num>(8)</num><intro><p>The Regulator may charge a reasonable fee for providing a person with a copy of—</p></intro><level class="para1" eId="schedule-4-paragraph-12-8-a"><num>(a)</num><content><p>a draft published under sub-paragraph (2);</p></content></level><level class="para1" eId="schedule-4-paragraph-12-8-b"><num>(b)</num><content><p>scheme details.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-9"><num>(9)</num><content><p>Sub-paragraphs (2) to (6) and (8)(a) also apply to a proposal to alter or replace the financial penalty scheme.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-records"><heading><i>Records</i></heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><intro><p>The Regulator must maintain satisfactory arrangements for—</p></intro><level class="para1" eId="schedule-4-paragraph-13-a"><num>(a)</num><content><p>recording decisions made in the exercise of its functions, and</p></content></level><level class="para1" eId="schedule-4-paragraph-13-b"><num>(b)</num><content><p>the safe-keeping of those records which it considers ought to be preserved.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-exemption-from-liability-in-damages"><heading><i>Exemption from liability in damages</i></heading><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-4-paragraph-14-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-4-paragraph-14-1-a"><num>(a)</num><content><p>the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-b"><num>(b)</num><content><p>any person (“P”) who is, or is acting as, an officer or member of staff of the Regulator;</p></content></level><level class="para1" eId="schedule-4-paragraph-14-1-c"><num>(c)</num><content><p>any person who could be held vicariously liable for things done or omitted by P, but only in so far as the liability relates to P's conduct.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-4"><num>(4)</num><intro><p>Sub-paragraph (1) does not apply—</p></intro><level class="para1" eId="schedule-4-paragraph-14-4-a"><num>(a)</num><content><p>if the act or omission is shown to have been in bad faith, or</p></content></level><level class="para1" eId="schedule-4-paragraph-14-4-b"><num>(b)</num><content><p>so as to prevent an award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act 1998.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-engagement-with-parliamentary-committees"><heading><ins class="first" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8"><noteRef uk:name="commentary" href="#key-7fc4390698beedd582fc19467cf810d8" class="commentary"/>Engagement with Parliamentary Committees</ins></heading><paragraph eId="schedule-4-paragraph-14A" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14A</ins></num><subparagraph eId="schedule-4-paragraph-14A-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where the Regulator issues a relevant consultation.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">For the purposes of this paragraph the Regulator issues a relevant consultation if it—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-2-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes proposed generally applicable requirements under section 104,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-2-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">publishes other proposals about the exercise of any of its general functions.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-4-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">advance the Regulator’s payment systems objectives,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">demonstrate that the Regulator has had regard to the regulatory principles in section 53 when preparing the proposals, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-4-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">engage with matters to which the Regulator must have regard under regulations made under section 102B.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14A-6"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(6)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the relevant Parliamentary Committees are references to—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-6-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Treasury Committee of the House of Commons,</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-6-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Committee of the House of Lords which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-b-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by that House for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-b-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes, and</ins></p></content></level></level><level class="para1" eId="schedule-4-paragraph-14A-6-c"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(c)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Joint Committee of both Houses which—</ins></p></intro><level class="para2" eId="schedule-4-paragraph-14A-6-c-i"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(i)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">is charged with responsibility by those Houses for the purposes of this paragraph, and</ins></p></content></level><level class="para2" eId="schedule-4-paragraph-14A-6-c-ii"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(ii)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">has notified the Regulator that it is a relevant Parliamentary Committee for those purposes.</ins></p></content></level></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-7"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(7)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">References in this paragraph to the Treasury Committee of the House of Commons—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14A-7-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the name of that Committee is changed, are references to that Committee by its new name, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14A-7-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as reference to the Committee by which the functions are exercisable.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14A-8"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(8)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">Any question arising under sub-paragraph (7) is to be determined by the Speaker of the House of Commons.</ins></p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-14B" class="schProv1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">14B</ins></num><subparagraph eId="schedule-4-paragraph-14B-1"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(1)</ins></num><intro><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">This paragraph applies where—</ins></p></intro><level class="para1" eId="schedule-4-paragraph-14B-1-a"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(a)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">the Regulator issues a public consultation, and</ins></p></content></level><level class="para1" eId="schedule-4-paragraph-14B-1-b"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(b)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the Regulator representations in response to the consultation.</ins></p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-14B-2"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(2)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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).</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-3"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(3)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">The Regulator must give to the chair of the Committee concerned a written response to the representations.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-4"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(4)</ins></num><content><p><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14B-5"><num><ins ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">(5)</ins></num><content><p><ins class="last" ukl:ChangeId="key-7fc4390698beedd582fc19467cf810d8-1695293522258" ukl:CommentaryRef="key-7fc4390698beedd582fc19467cf810d8">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.</ins></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-freedom-of-information"><heading><i>Freedom of information</i></heading><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><content><p><mod>In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-equality"><heading><i>Equality</i></heading><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><content><p><mod>In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “<i>Industry, business, finance <abbr title="et cetera" xml:lang="la">etc.</abbr></i>”, at the appropriate place insert— <quotedText>“
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
”</quotedText></mod></p></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-5"><num>SCHEDULE 5<authorialNote class="referenceNote"><p>
Section 79</p></authorialNote></num><heading>Procedure for appeals to the CMA</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-functions-of-cma-to-be-discharged-by-group"><heading><i>Functions of CMA to be discharged by group</i></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><content><p>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.</p></content></paragraph><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p><mod>In paragraph 35(1) (membership of CMA panel), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>at least one person (a “payment systems panel member”) appointed to the CMA panel under paragraph 1(1)(b) for the purpose of being available for selection as a member of a group constituted to carry out functions on behalf of the CMA with respect to an appeal made in accordance with section 79 of the Financial Services (Banking Reform) Act 2013 (a “specialist payment systems group”);</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content><p><mod>In paragraph 38 (membership of CMA groups), after sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><content><p>In the case of a specialist payment systems group, the group must include at least one payment systems member.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><content><p><mod>In paragraph 48 (performance of functions of chair with respect to constitution <abbr title="Et cetera" xml:lang="la">etc</abbr> of CMA group), in sub-paragraph (4)(c), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para2"><num>(v)</num><content><p>Schedule 5 to the Financial Services (Banking Reform) Act 2013.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-application-for-permission-to-bring-appeal"><heading><i>Application for permission to bring appeal</i></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><p>An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content><p>An application for permission to appeal must be accompanied by all such information as may be required by appeal rules.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-3"><num>(3)</num><content><p>Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-4"><num>(4)</num><content><p>A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-5"><num>(5)</num><intro><p>The appellant must send the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-3-5-a"><num>(a)</num><content><p>a copy of the application for permission to appeal at the same time as it is sent to the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-5-b"><num>(b)</num><content><p>such other information as may be required by appeal rules.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-6"><num>(6)</num><content><p>The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-7"><num>(7)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-8"><num>(8)</num><intro><p>The CMA's decision on an application for permission must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-3-8-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-8-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day after the day on which the application for permission was received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-9"><num>(9)</num><intro><p>The grant of permission may be made subject to conditions, which may include—</p></intro><level class="para1" eId="schedule-5-paragraph-3-9-a"><num>(a)</num><content><p>conditions which limit the matters that are to be considered on the appeal in question;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-b"><num>(b)</num><content><p>conditions for the purpose of expediting the determination of the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-3-9-c"><num>(c)</num><content><p>conditions requiring the appeal to be considered together with other appeals (including appeals relating to different matters or decisions and appeals brought by different persons).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-10"><num>(10)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-3-10-a"><num>(a)</num><content><p>the appellant, and</p></content></level><level class="para1" eId="schedule-5-paragraph-3-10-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-3-11"><num>(11)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-12"><num>(12)</num><intro><p>The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-3-12-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-3-12-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-suspension-of-decision"><heading><i>Suspension of decision</i></heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-5-paragraph-4-1"><num>(1)</num><intro><p>The CMA may direct that, pending the determination of an appeal against a decision of the Payment Systems Regulator—</p></intro><level class="para1" eId="schedule-5-paragraph-4-1-a"><num>(a)</num><content><p>the decision is not to have effect, or</p></content></level><level class="para1" eId="schedule-5-paragraph-4-1-b"><num>(b)</num><content><p>the decision is not to have effect to such extent as may be specified in the direction.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-2"><num>(2)</num><intro><p>The power to give a direction under this paragraph is exercisable only where—</p></intro><level class="para1" eId="schedule-5-paragraph-4-2-a"><num>(a)</num><content><p>an application for its exercise has been made by the appellant at the same time as the appellant made an application in accordance with paragraph 3 for permission to bring an appeal against a decision of the Payment Systems Regulator,</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-b"><num>(b)</num><content><p>the Payment Systems Regulator has been given an opportunity of making representations or observations, in accordance with paragraph 5(2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-2-c"><num>(c)</num><content><p>the balance of convenience does not otherwise require effect to be given to the decision pending that determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-3"><num>(3)</num><intro><p>The CMA's decision on an application for a direction under this paragraph must be made—</p></intro><level class="para1" eId="schedule-5-paragraph-4-3-a"><num>(a)</num><content><p>where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end of 10 working days beginning with the first working day after the day on which those representations or observations are received;</p></content></level><level class="para1" eId="schedule-5-paragraph-4-3-b"><num>(b)</num><content><p>in any other case, before the end of 14 working days beginning with the first working day following the day on which the application under sub-paragraph (2)(a) is received.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-5"><num>(5)</num><content><p>The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-4-6"><num>(6)</num><intro><p>A direction under this paragraph must be—</p></intro><level class="para1" eId="schedule-5-paragraph-4-6-a"><num>(a)</num><content><p>given by an authorised member of the CMA, and</p></content></level><level class="para1" eId="schedule-5-paragraph-4-6-b"><num>(b)</num><content><p>published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is given.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-4-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-time-limit-for-representations-and-observations-by-the-regulator"><heading><i>Time limit for representations and observations by the Regulator</i></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Sub-paragraph (2) applies where the Payment Systems Regulator wishes to make representations or observations to the CMA in relation to—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>an application for permission to bring an appeal under paragraph 3;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>an application for a direction under paragraph 4.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-5-3-a"><num>(a)</num><content><p>the Payment Systems Regulator's reasons for the decision in relation to which the appeal is being brought;</p></content></level><level class="para1" eId="schedule-5-paragraph-5-3-b"><num>(b)</num><content><p>any grounds on which that appeal is being brought against that decision.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-5"><num>(5)</num><content><p>The Payment Systems Regulator must send a copy of the representations and observations it makes under this paragraph to the appellant.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-consideration-and-determination-of-appeal-by-group"><heading><i>Consideration and determination of appeal by group</i></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><intro><p>A decision of the group is effective if, and only if—</p></intro><level class="para1" eId="schedule-5-paragraph-6-2-a"><num>(a)</num><content><p>all the members of the group are present when it is made, and</p></content></level><level class="para1" eId="schedule-5-paragraph-6-2-b"><num>(b)</num><content><p>at least two members of the group are in favour of the decision.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-time-limits-for-determining-appeal"><heading><i>Time limits for determining appeal</i></heading><paragraph eId="schedule-5-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-5-paragraph-7-1"><num>(1)</num><content><p>The CMA must determine an appeal within the period of 6 months beginning with the permission date.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-7-2"><num>(2)</num><intro><p>If—</p></intro><level class="para1" eId="schedule-5-paragraph-7-2-a"><num>(a)</num><content><p>the CMA has received representations on the timing of the determination from a party to the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-2-b"><num>(b)</num><content><p>it is satisfied that there are special reasons why the determination cannot be made within the period specified in sub-paragraph (1),</p></content></level><wrapUp><p>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.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-7-3"><num>(3)</num><intro><p>In a case where sub-paragraph (2) applies, the CMA must also—</p></intro><level class="para1" eId="schedule-5-paragraph-7-3-a"><num>(a)</num><content><p>inform the parties to the appeal of the time limit for determining the appeal, and</p></content></level><level class="para1" eId="schedule-5-paragraph-7-3-b"><num>(b)</num><content><p>publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any other persons likely to be affected by the determination.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-7-4"><num>(4)</num><content><p>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).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-matters-to-be-considered-on-appeal"><heading><i>Matters to be considered on appeal</i></heading><paragraph eId="schedule-5-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-5-paragraph-8-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-8-1-a"><num>(a)</num><content><p>any or all matters raised by an appellant that were not raised by that appellant at the time of the relevant application, and</p></content></level><level class="para1" eId="schedule-5-paragraph-8-1-b"><num>(b)</num><content><p>any or all matters raised by the Payment Systems Regulator that were not contained in representations or observations made for the purposes of the appeal in accordance with paragraph 5.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-8-2"><num>(2)</num><content><p>In this paragraph “<term refersTo="#term-relevant-application" eId="term-relevant-application">relevant application</term>” means an application under paragraph 3 or 4.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-production-of-documents-etc"><heading><i>Production of documents <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-5-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-5-paragraph-9-1"><num>(1)</num><intro><p>For the purposes of this Schedule, the CMA may by notice—</p></intro><level class="para1" eId="schedule-5-paragraph-9-1-a"><num>(a)</num><content><p>require a person to produce to the CMA the documents specified or otherwise identified in the notice;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-1-b"><num>(b)</num><content><p>require any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information as may be specified or described in the notice in relation to that business.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-9-2-a"><num>(a)</num><content><p>at the time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-9-2-b"><num>(b)</num><content><p>in a legible form.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-9-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-9-5"><num>(5)</num><intro><p>A notice for the purposes of this paragraph—</p></intro><level class="para1" eId="schedule-5-paragraph-9-5-a"><num>(a)</num><content><p>may be issued on the CMA's behalf by an authorised member of the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-9-5-b"><num>(b)</num><content><p>must include information about the possible consequences of not complying with the notice (as set out in paragraph 13).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-oral-hearings"><heading><i>Oral hearings</i></heading><paragraph eId="schedule-5-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-5-paragraph-10-1"><num>(1)</num><intro><p>For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath—</p></intro><level class="para1" eId="schedule-5-paragraph-10-1-a"><num>(a)</num><content><p>by a person considering an application for permission to bring an appeal under paragraph 3,</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-b"><num>(b)</num><content><p>by a person considering an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-1-c"><num>(c)</num><content><p>by a group with the function of determining an appeal;</p></content></level><wrapUp><p>and, for that purpose, such a person or group may administer oaths.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-10-2"><num>(2)</num><intro><p>The CMA may by notice require a person—</p></intro><level class="para1" eId="schedule-5-paragraph-10-2-a"><num>(a)</num><content><p>to attend at a time and place specified in the notice, and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-2-b"><num>(b)</num><content><p>at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-3"><num>(3)</num><intro><p>At any oral hearing the person or group conducting the hearing may—</p></intro><level class="para1" eId="schedule-5-paragraph-10-3-a"><num>(a)</num><content><p>require the appellant or the Payment Systems Regulator, if present at the hearing, to give evidence or to make representations or observations, or</p></content></level><level class="para1" eId="schedule-5-paragraph-10-3-b"><num>(b)</num><content><p>require a person attending the hearing as a representative of the appellant or of the Payment Systems Regulator to make representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-4"><num>(4)</num><content><p>A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-5"><num>(5)</num><intro><p>If the appellant, the Payment Systems Regulator, or the appellant's or Payment Systems Regulator's representative is not present at a hearing—</p></intro><level class="para1" eId="schedule-5-paragraph-10-5-a"><num>(a)</num><content><p>there is no requirement to give notice to that person under sub-paragraph (2), and</p></content></level><level class="para1" eId="schedule-5-paragraph-10-5-b"><num>(b)</num><content><p>the person or group conducting the hearing may determine the application or appeal without hearing that person's evidence, representations or observations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-10-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-7"><num>(7)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-10-8"><num>(8)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-written-statements"><heading><i>Written statements</i></heading><paragraph eId="schedule-5-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-5-paragraph-11-1"><num>(1)</num><intro><p>The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to—</p></intro><level class="para1" eId="schedule-5-paragraph-11-1-a"><num>(a)</num><content><p>a person who is considering, or is to consider, an application for a direction under paragraph 4, or</p></content></level><level class="para1" eId="schedule-5-paragraph-11-1-b"><num>(b)</num><content><p>a group with the function of determining an appeal.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-11-2"><num>(2)</num><intro><p>The power to require the production of a written statement includes power—</p></intro><level class="para1" eId="schedule-5-paragraph-11-2-a"><num>(a)</num><content><p>to specify the time and place at which it is to be produced, and</p></content></level><level class="para1" eId="schedule-5-paragraph-11-2-b"><num>(b)</num><content><p>to require it to be verified by a statement of truth;</p></content></level><wrapUp><p>and a statement required to be so verified must be disregarded unless it is so verified.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-11-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-11-4"><num>(4)</num><content><p>A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-expert-advice"><heading><i>Expert advice</i></heading><paragraph eId="schedule-5-paragraph-12" class="schProv1"><num>12</num><content><p>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.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-defaults-in-relation-to-evidence"><heading><i>Defaults in relation to evidence</i></heading><paragraph eId="schedule-5-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-5-paragraph-13-1"><num>(1)</num><intro><p>If a person (“<term refersTo="#term-the-defaulter" eId="term-the-defaulter">the defaulter</term>”)—</p></intro><level class="para1" eId="schedule-5-paragraph-13-1-a"><num>(a)</num><content><p>fails to comply with a notice issued or other requirement imposed under paragraph 9, 10 or 11,</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-b"><num>(b)</num><content><p>in complying with a notice under paragraph 11, makes a statement that is false in any material particular, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-1-c"><num>(c)</num><content><p>in providing information verified in accordance with a statement of truth required by appeal rules, provides information that is false in a material particular,</p></content></level><wrapUp><p>an authorised member of the CMA may certify that fact to the court.</p></wrapUp></subparagraph><subparagraph eId="schedule-5-paragraph-13-2"><num>(2)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-3"><num>(3)</num><content><p>In sub-paragraph (2) “<term refersTo="#term-officer" eId="term-officer">officer</term>”, in relation to a limited liability partnership, means a member of the limited liability partnership.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-13-4"><num>(4)</num><intro><p>In this paragraph “<term refersTo="#term-court" eId="term-court">court</term>” means—</p></intro><level class="para1" eId="schedule-5-paragraph-13-4-a"><num>(a)</num><content><p>the High Court, or</p></content></level><level class="para1" eId="schedule-5-paragraph-13-4-b"><num>(b)</num><content><p>in Scotland, the Court of Session.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-5-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-5-paragraph-14-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-14-2"><num>(2)</num><intro><p>A person guilty of an offence under this paragraph is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-14-2-a"><num>(a)</num><intro><p>on summary conviction—</p></intro><level class="para2" eId="schedule-5-paragraph-14-2-a-i"><num>(i)</num><content><p>in England and Wales, to imprisonment for a term not exceeding <ins class="substitution first last" ukl:ChangeId="key-f953ce86e069a302419a3416517b516a-1677579981062" ukl:CommentaryRef="key-f953ce86e069a302419a3416517b516a"><noteRef uk:name="commentary" href="#key-f953ce86e069a302419a3416517b516a" class="commentary"/>the general limit in a magistrates’ court</ins> (or 6 months, if the offence was committed before <ins class="substitution first last" ukl:ChangeId="key-ebc4b66ce032a1665fc2d8f3d3626899-1658396745500" ukl:CommentaryRef="key-ebc4b66ce032a1665fc2d8f3d3626899"><noteRef uk:name="commentary" href="#key-ebc4b66ce032a1665fc2d8f3d3626899" class="commentary"/>2 May 2022</ins>) or a fine, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-ii"><num>(ii)</num><content><p>in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both;</p></content></level><level class="para2" eId="schedule-5-paragraph-14-2-a-iii"><num>(iii)</num><content><p>in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both;</p></content></level></level><level class="para1" eId="schedule-5-paragraph-14-2-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-determination-of-appeal-by-cma"><heading><i>Determination of appeal by CMA</i></heading><paragraph eId="schedule-5-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-5-paragraph-15-1"><num>(1)</num><intro><p>A determination by the CMA on an appeal—</p></intro><level class="para1" eId="schedule-5-paragraph-15-1-a"><num>(a)</num><content><p>must be contained in an order made by the CMA;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-b"><num>(b)</num><content><p>must set out the reasons for the determination;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-c"><num>(c)</num><content><p>takes effect at the time specified in the order or determined in accordance with provision made in the order;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-d"><num>(d)</num><content><p>must be notified by the CMA to the parties to the appeal;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-1-e"><num>(e)</num><intro><p>must be published by the CMA—</p></intro><level class="para2" eId="schedule-5-paragraph-15-1-e-i"><num>(i)</num><content><p>as soon as reasonably practicable after the determination is made;</p></content></level><level class="para2" eId="schedule-5-paragraph-15-1-e-ii"><num>(ii)</num><content><p>in such manner as the CMA considers appropriate for the purpose of bringing the determination to the attention of any person likely to be affected by it (other than a party to the appeal).</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-2"><num>(2)</num><intro><p>The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is—</p></intro><level class="para1" eId="schedule-5-paragraph-15-2-a"><num>(a)</num><content><p>commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or</p></content></level><level class="para1" eId="schedule-5-paragraph-15-2-b"><num>(b)</num><content><p>information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-15-3"><num>(3)</num><content><p>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).</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-15-4"><num>(4)</num><intro><p>The steps must be taken—</p></intro><level class="para1" eId="schedule-5-paragraph-15-4-a"><num>(a)</num><content><p>if a time is specified in (or is to be determined in accordance with) the order, within that time;</p></content></level><level class="para1" eId="schedule-5-paragraph-15-4-b"><num>(b)</num><content><p>in any other case, within a reasonable time.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-appeal-rules"><heading><i>Appeal rules</i></heading><paragraph eId="schedule-5-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-5-paragraph-16-1"><num>(1)</num><content><p>The CMA Board may make rules of procedure regulating the conduct and disposal of appeals.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-2"><num>(2)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-5-paragraph-16-2-a"><num>(a)</num><content><p>the taking of evidence at an oral hearing, or</p></content></level><level class="para1" eId="schedule-5-paragraph-16-2-b"><num>(b)</num><content><p>the making of representations or observations at such a hearing.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-16-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-4"><num>(4)</num><content><p>Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-16-5"><num>(5)</num><content><p>Rules under this paragraph may make different provision for different cases.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-costs"><heading><i>Costs</i></heading><paragraph eId="schedule-5-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-5-paragraph-17-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-2"><num>(2)</num><intro><p>An order under sub-paragraph (1) must require those costs to be paid—</p></intro><level class="para1" eId="schedule-5-paragraph-17-2-a"><num>(a)</num><content><p>where the appeal is allowed in full, by the Payment Systems Regulator;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-b"><num>(b)</num><content><p>where the appeal is dismissed in full, by the appellant;</p></content></level><level class="para1" eId="schedule-5-paragraph-17-2-c"><num>(c)</num><content><p>where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all the circumstances.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-17-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-17-6"><num>(6)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-interpretation"><heading><i>Interpretation</i></heading><paragraph eId="schedule-5-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-5-paragraph-18-1"><num>(1)</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal" eId="term-appeal">appeal</term>” means an appeal made in accordance with section 79;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appeal-rules" eId="term-appeal-rules">appeal rules</term>” means rules of procedure under paragraph 16;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-appellant" eId="term-appellant">appellant</term>” has the meaning given by paragraph 3(4);</p></content></hcontainer><hcontainer name="definition"><intro><p>“authorised member of the CMA”—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to a power exercisable in connection with an appeal in respect of which a group has been constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised by the chair of the CMA to exercise that power;</p></content></level><level class="para1"><num>(b)</num><content><p>in relation to a power exercisable in connection with an application for permission to bring an appeal, or otherwise in connection with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>any member of the CMA Board who is also a member of the CMA panel, or</p></item><item><num>(ii)</num><p>any member of the CMA panel authorised by the Treasury (whether generally or specifically) to exercise the power in question;</p></item></blockList></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma" eId="term-cma">CMA</term>” means the Competition and Markets Authority;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-cma-board" eId="term-cma-board">CMA Board</term>” and “<term refersTo="#term-cma-panel" eId="term-cma-panel">CMA panel</term>” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-group" eId="term-group">group</term>” means a group selected in accordance with paragraph 6;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-statement-of-truth" eId="term-statement-of-truth">statement of truth</term>”, in relation to the production of a statement or provision of information by a person, means a statement that the person believes the facts stated in the statement or information to be true;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-working-day" eId="term-working-day">working day</term>” means any day other than—</p></intro><level class="para1"><num>(a)</num><content><p>Saturday or Sunday;</p></content></level><level class="para1"><num>(b)</num><content><p>Christmas Day or Good Friday;</p></content></level><level class="para1"><num>(c)</num><content><p>a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.</p></content></level></hcontainer></subparagraph><subparagraph eId="schedule-5-paragraph-18-2"><num>(2)</num><intro><p>References in this Schedule to a party to an appeal are references to—</p></intro><level class="para1" eId="schedule-5-paragraph-18-2-a"><num>(a)</num><content><p>the appellant, or</p></content></level><level class="para1" eId="schedule-5-paragraph-18-2-b"><num>(b)</num><content><p>the Payment Systems Regulator.</p></content></level></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote"><p>
Section 121</p></authorialNote></num><heading>Conduct of FMI administration</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><intro><p>The following provisions of this Schedule provide for—</p></intro><level class="para1" eId="schedule-6-paragraph-1-a"><num>(a)</num><content><p>the general powers and duties of FMI administrators (by application of provisions about administrators), and</p></content></level><level class="para1" eId="schedule-6-paragraph-1-b"><num>(b)</num><content><p>the general process and effects of FMI administration (by application of provisions about administration).</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><intro><p>The provisions set out in the Tables apply in relation to FMI administration as in relation to administration, with—</p></intro><level class="para1" eId="schedule-6-paragraph-2-a"><num>(a)</num><content><p>the modifications set out in paragraph 3,</p></content></level><level class="para1" eId="schedule-6-paragraph-2-b"><num>(b)</num><content><p>any other modification specified in the Tables, and</p></content></level><level class="para1" eId="schedule-6-paragraph-2-c"><num>(c)</num><content><p>any other necessary modification.</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><intro><p>The modifications are that—</p></intro><level class="para1" eId="schedule-6-paragraph-3-a"><num>(a)</num><content><p>a reference to the administrator is a reference to the FMI administrator,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-b"><num>(b)</num><content><p>a reference to administration is a reference to FMI administration,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-c"><num>(c)</num><content><p>a reference to an administration application is a reference to an FMI administration application,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-d"><num>(d)</num><content><p>a reference to an administration order is a reference to an FMI administration order,</p></content></level><level class="para1" eId="schedule-6-paragraph-3-e"><num>(e)</num><content><p> <ins class="first last" ukl:ChangeId="key-ffc6d0a190ae4d2742d66fe1103054dd-1498800502644" ukl:CommentaryRef="key-ffc6d0a190ae4d2742d66fe1103054dd"><noteRef uk:name="commentary" href="#key-ffc6d0a190ae4d2742d66fe1103054dd" class="commentary"/>except where otherwise specified in Table 2,</ins> a reference to a company is a reference to the infrastructure company, and</p></content></level><level class="para1" eId="schedule-6-paragraph-3-f"><num>(f)</num><content><p>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.</p></content></level></paragraph><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><content><p>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.</p></content></paragraph><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p>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.</p><tblock class="table" ukl:Orientation="portrait"><num>TABLE 1 OF APPLIED PROVISIONS</num><heading>SCHEDULE B1 TO THE INSOLVENCY ACT 1986</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:16%"/><default:col span="1" style="width:35%"/><default:col span="1" style="width:49%"/></default:colgroup><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Provision of Schedule B1</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Subject</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Modification</i></p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 40(1)(a)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Dismissal of pending winding-up petition</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 41</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Dismissal of administrative or other receiver</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 42</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Moratorium on insolvency proceedings</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-paras. (4) and (5).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 43</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Moratorium on other legal process</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 44(1)(a) and (5)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Interim moratorium</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 46</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Announcement of appointment</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-para. (6)(b) and (c).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 47 and 48</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Statement of affairs</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 49</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Administrator's proposals</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27239"><num>(a)</num><content><p>The administrator must obtain the approval of the Bank of England to any proposals under sub-para. (1).</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27245"><num>(b)</num><content><p>Treat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to the objective in section 115 of this Act.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27251"><num>(c)</num><content><p>Ignore sub-para. (3)(b).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 59</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">General powers</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 60 and Schedule 1</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">General powers</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The exercise of powers under Schedule 1 is subject to section 115 of this Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 61</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Directors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 62</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Power to call meetings of creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 63</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Application to court for directions</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27289"><num>(a)</num><content><p>Before making an application in reliance on this paragraph the FMI administrator must give notice to the Bank of England, which is to be entitled to participate in the proceedings.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27295"><num>(b)</num><content><p>In making directions the court must have regard to the objective in section 115 of this Act.</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 64</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Management powers</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 65</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Distribution to creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 66</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Payments</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 67</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Taking custody of property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 68</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Management</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27331"><num>(a)</num><content><p>Ignore sub-paras. (1) and (3).</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27337"><num>(b)</num><content><p>The Bank of England may apply to the court for the variation or revocation of any directions given by the court.</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 69</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Agency</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 70</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Floating charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 71</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Fixed charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 72</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Hire-purchase property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 73</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Protection for secured and preferential creditors</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 74</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Challenge to administrator's conduct</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">For sub-para. (2) there is to be taken to be substituted—</p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2)</num><content><p>Where a company is in FMI administration, a creditor or member of the company may apply to the court claiming that the FMI administrator is conducting himself or herself in a manner preventing the achievement of the objective of the FMI administration as quickly and efficiently as is reasonably practicable.</p></content></subsection></quotedStructure></mod></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 75</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Misfeasance</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 79</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Court ending administration on application of administrator</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">For sub-paras. (1) to (3) there are to be taken to be substituted—</p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1)</num><content><p>On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an FMI administrator of a company to cease to have effect from a specified time.</p></content></subsection><subsection><num>(2)</num><intro><p>The persons who may apply to the court under sub-paragraph (1) are—</p></intro><level class="para1"><num>(a)</num><content><p>the Bank of England;</p></content></level><level class="para1"><num>(b)</num><content><p>with the consent of the Bank, the FMI administrator.</p></content></level></subsection></quotedStructure></mod></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 84</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Termination: no more assets for distribution</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 85</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Discharge of administration order</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 86</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Notice to Companies Registrar of end of administration</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 87</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Resignation</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 88</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Removal</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 89</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Disqualification</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">The notice under sub-para. (2) must be given to the Bank of England.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 90 and 91</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Replacement</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27477"><num>(a)</num><content><p>Para. 91(1) applies as if the only person who could make an application were the Bank of England.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27483"><num>(b)</num><content><p>Ignore para. 91(2).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 98</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Discharge</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ignore sub-paras. (2)(b) <ins class="first last" ukl:ChangeId="key-a7ccb19c2a9d11f788418d1ed0d899ae-1498799789817" ukl:CommentaryRef="key-a7ccb19c2a9d11f788418d1ed0d899ae"><noteRef uk:name="commentary" href="#key-a7ccb19c2a9d11f788418d1ed0d899ae" class="commentary"/>and (ba)</ins><ins class="substitution first last" ukl:ChangeId="key-633b3dab4193d5558ce99de090cfa1eb-1529849887784" ukl:CommentaryRef="key-633b3dab4193d5558ce99de090cfa1eb"><noteRef uk:name="commentary" href="#key-633b3dab4193d5558ce99de090cfa1eb" class="commentary"/>, (3) and (3A)</ins> .</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 99</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Vacation of office: charges and liabilities</p></default:td><default:td><blockContainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" ukl:Name="BlockText"><p>In the application of sub-para. (3), payments may be made only—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in accordance with directions of the Bank of England, and</p></item><item><num>(b)</num><p>if the Bank is satisfied that they will not prejudice the objective in section 115 of this Act.</p></item></blockList></blockContainer></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 100 to 103</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Joint administrators</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">An application under para. 103 may be made only by the Bank of England.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 104</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Validity</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 106 (and section 430 and Schedule 10)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Fines</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 107 to 109</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Extension of time limits</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 110</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Amendment of provisions about time</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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).</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Para. 111</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Interpretation</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Paras. 112 to 116</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Scotland</p></default:td><default:td/></default:tr></default:tbody></default:table></foreign></tblock><tblock class="table" ukl:Orientation="portrait"><num>TABLE 2 OF APPLIED PROVISIONS</num><heading>OTHER PROVISIONS OF THE INSOLVENCY ACT 1986</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:16%"/><default:col span="1" style="width:35%"/><default:col span="1" style="width:49%"/></default:colgroup><default:tbody><default:tr><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Section</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Subject</i></p></default:th><default:th><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><i>Modification or comment</i></p></default:th></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-03e3ef328582400e96dc33607d92803f-1498799885738" ukl:CommentaryRef="key-03e3ef328582400e96dc33607d92803f"><noteRef uk:name="commentary" href="#key-03e3ef328582400e96dc33607d92803f" class="commentary"/>Section 176ZB </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="last" ukl:ChangeId="key-03e3ef328582400e96dc33607d92803f-1498799885738" ukl:CommentaryRef="key-03e3ef328582400e96dc33607d92803f">Application of proceeds of office-holder claims</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 233</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Utilities</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 234</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Getting in company's property</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 235</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Duty to co-operate with office-holder</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 236</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Inquiry into company's dealings</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 237</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 236: enforcement by court</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 238</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Transactions at an undervalue (England and Wales)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 239</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Preferences (England and Wales)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 240</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Ss. 238 and 239: relevant time</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 241</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Orders under ss. 238 and 239</p></default:td><default:td><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27648"><num>(a)</num><content><p>In considering making an order in reliance on section 241 the court must have regard to the objective in section 115 of this Act.</p></content></level><level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="d25e27654"><num>(b)</num><content><p>Ignore subsections (2A)(a) and (3) to (3C).</p></content></level></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 242</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Gratuitous alienations (Scotland)</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 243</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Unfair preferences (Scotland)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">In considering the grant of a decree under subsection (5) the court must have regard to the objective in section 115 of this Act.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 244</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Extortionate credit transactions</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 245</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Avoidance of floating charges</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 246</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Unenforceability of liens</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14"><noteRef uk:name="commentary" href="#key-775654e74a1f2110fd2b2dcc6cf7fb14" class="commentary"/>Sections 246ZA to 246ZC </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">Administration: penalisation of directors </ins><abbr title="Et cetera" xml:lang="la"><ins class="last" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498799996059" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">etc</ins></abbr></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498800060360" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14"><noteRef uk:name="commentary" href="#key-775654e74a1f2110fd2b2dcc6cf7fb14" class="commentary"/>Section 246ZD </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="last" ukl:ChangeId="key-775654e74a1f2110fd2b2dcc6cf7fb14-1498800060360" ukl:CommentaryRef="key-775654e74a1f2110fd2b2dcc6cf7fb14">Power to assign certain causes of action</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850011382" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Sections 246ZE and 246ZF</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850052582" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Decisions by creditors (company insolvency)</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850082206" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Section 246C</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850104374" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Creditors’ ability to opt out of receiving certain notices</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850125075" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Section 248A</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="first last" ukl:ChangeId="key-1b0cb49a76bce50096823bfb7902fc3c-1529850144778" ukl:CommentaryRef="key-1b0cb49a76bce50096823bfb7902fc3c"><noteRef uk:name="commentary" href="#key-1b0cb49a76bce50096823bfb7902fc3c" class="commentary"/>Meaning of “opted-out creditor”</ins></p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 386 and 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Preferential debts</p></default:td><default:td/></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Section 389</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Offence of acting without being qualified</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution first" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea"><noteRef uk:name="commentary" href="#key-6c46fb10aa0fbef1bc74cb7691e7e3ea" class="commentary"/>Sections 390 to 391T </ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">Authorisation and regulation of insolvency practitioners</ins></p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as an FMI administrator.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(b) For subsection (2) of that section there is to be taken to be substituted—</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">“(2)</ins><span ukl:Name="NonBreakingSpace"> </span><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">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.”.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(c) An order under section 391 has effect in relation to any provision applied for the purposes of FMI administration.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(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.</ins></p><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0"><ins class="substitution last" ukl:ChangeId="key-6c46fb10aa0fbef1bc74cb7691e7e3ea-1498800127691" ukl:CommentaryRef="key-6c46fb10aa0fbef1bc74cb7691e7e3ea">(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.</ins></p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 423 to 425</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Transactions defrauding creditors</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">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.</p></default:td></default:tr><default:tr><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Sections 430 to 432 and Schedule 10</p></default:td><default:td><p xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0">Offences</p></default:td><default:td/></default:tr></default:tbody></default:table></foreign></tblock></content></paragraph><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-6-paragraph-6-1"><num>(1)</num><content><p>The Treasury may by order amend this Schedule so as to make further modifications.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-6-2"><num>(2)</num><intro><p>The further modifications that may be made are confined to such modifications of—</p></intro><level class="para1" eId="schedule-6-paragraph-6-2-a"><num>(a)</num><content><p>the 1986 Act, or</p></content></level><level class="para1" eId="schedule-6-paragraph-6-2-b"><num>(b)</num><content><p>other enactments passed or made before this Act that relate to insolvency or make provision by reference to anything that is or may be done under the 1986 Act,</p></content></level><wrapUp><p>as the Treasury consider appropriate in relation to any provision made by or under this Part of this Act.</p></wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-6-3"><num>(3)</num><content><p>An order under this paragraph may also make modifications of the provisions of this Schedule.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-7"><num>SCHEDULE 7<authorialNote class="referenceNote"><p>
Section 121</p></authorialNote></num><heading>Financial market infrastructure transfer schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-application-of-schedule"><heading><i>Application of Schedule</i></heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><intro><p>This Schedule applies where—</p></intro><level class="para1" eId="schedule-7-paragraph-1-a"><num>(a)</num><content><p>the court has made an FMI administration order in relation to a company (“the old company”), and</p></content></level><level class="para1" eId="schedule-7-paragraph-1-b"><num>(b)</num><content><p>it is proposed that a transfer within section 115(5) be made to another company (“the new company”).</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-interpretation-of-schedule"><heading><i>Interpretation of Schedule</i></heading><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-fmi-transfer-scheme" eId="term-fmi-transfer-scheme">FMI transfer scheme</term>” has the meaning given by paragraph 4(1);</p></content></hcontainer><hcontainer name="definition"><content><p>“the new company” and “the old company” are to be read in accordance with paragraph 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>”, 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.</p></content></hcontainer></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-fmi-administrator-to-act-on-behalf-of-old-company"><heading><i>FMI administrator to act on behalf of old company</i></heading><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p>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.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-making-of-fmi-transfer-schemes"><heading><i>Making of FMI transfer schemes</i></heading><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><intro><p>The old company may—</p></intro><level class="para1" eId="schedule-7-paragraph-4-1-a"><num>(a)</num><content><p>with the consent of the new company, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-1-b"><num>(b)</num><content><p>for the purpose of giving effect to the proposed transfer,</p></content></level><wrapUp><p>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”).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><content><p>Such a scheme may be made only at a time when the FMI administration order is in force in relation to the old company.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><intro><p>An FMI transfer scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways—</p></intro><level class="para1" eId="schedule-7-paragraph-4-3-a"><num>(a)</num><content><p>by specifying or describing them in particular,</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-b"><num>(b)</num><content><p>by identifying them generally by reference to, or to a specified part of, the undertaking of the old company, or</p></content></level><level class="para1" eId="schedule-7-paragraph-4-3-c"><num>(c)</num><content><p>by specifying the manner in which they are to be determined.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p>An FMI transfer scheme is to take effect in accordance with paragraph 7 at the time appointed by the court.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-5"><num>(5)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-6"><num>(6)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-7"><num>(7)</num><intro><p>In deciding whether to approve an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-4-7-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-4-7-b"><num>(b)</num><content><p>any effect that the scheme is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-8"><num>(8)</num><content><p>Before approving an FMI transfer scheme, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-9"><num>(9)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-provision-that-may-be-made-by-a-scheme"><heading><i>Provision that may be made by a scheme</i></heading><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-7-paragraph-5-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision—</p></intro><level class="para1" eId="schedule-7-paragraph-5-1-a"><num>(a)</num><content><p>for the creation, in favour of the old company or the new company, of an interest or right in or in relation to property transferred in accordance with the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-b"><num>(b)</num><content><p>for giving effect to a transfer to the new company by the creation, in favour of that company, of an interest or right in or in relation to property retained by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-c"><num>(c)</num><content><p>for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between the old company and the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-1-d"><num>(d)</num><content><p>in connection with any provision made under this sub-paragraph, provision making incidental provision as to the interests, rights and liabilities of other persons with respect to the property, rights and liabilities to which the scheme relates.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-2"><num>(2)</num><intro><p>The property, rights and liabilities of the old company that may be transferred in accordance with an FMI transfer scheme include—</p></intro><level class="para1" eId="schedule-7-paragraph-5-2-a"><num>(a)</num><content><p>property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-b"><num>(b)</num><content><p>property acquired, and rights and liabilities arising, in the period after the making of the scheme but before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-c"><num>(c)</num><content><p>rights and liabilities arising after it takes effect in respect of matters occurring before it takes effect;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-d"><num>(d)</num><content><p>property situated anywhere in the United Kingdom or elsewhere;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-e"><num>(e)</num><content><p>rights and liabilities under the law of a part of the United Kingdom or of a place outside the United Kingdom <ins class="first last" ukl:ChangeId="key-920080d3d17de662987efbbe57739fe4-1630939297971" ukl:CommentaryRef="key-920080d3d17de662987efbbe57739fe4"><noteRef uk:name="commentary" href="#key-920080d3d17de662987efbbe57739fe4" class="commentary"/>(including under legislation of the European Union)</ins>;</p></content></level><level class="para1" eId="schedule-7-paragraph-5-2-f"><num>(f)</num><content><p>rights and liabilities under an enactment<noteRef href="#key-4a9c2a56c82a63f00857b21fe7c7da23" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... or subordinate legislation.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-3"><num>(3)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-3-a"><num>(a)</num><content><p>no such requirement to obtain a person's consent or concurrence,</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-b"><num>(b)</num><content><p>no such liability in respect of a contravention of any other requirement, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-3-c"><num>(c)</num><content><p>no such interference with any interest or right,</p></content></level><wrapUp><p>as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (4).</p></wrapUp></subparagraph><subparagraph eId="schedule-7-paragraph-5-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-5-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-5-5-a"><num>(a)</num><content><p>to terminate, modify, acquire or claim an interest or right, or</p></content></level><level class="para1" eId="schedule-7-paragraph-5-5-b"><num>(b)</num><content><p>to treat an interest or right as modified or terminated.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-6"><num>(6)</num><intro><p>That entitlement—</p></intro><level class="para1" eId="schedule-7-paragraph-5-6-a"><num>(a)</num><content><p>is not enforceable in relation to that interest or right until after the transfer of the interest or right by the scheme, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-6-b"><num>(b)</num><content><p>is then enforceable in relation to the interest or right only in so far as the scheme contains provision for the interest or right to be transferred subject to whatever confers that entitlement.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-7"><num>(7)</num><intro><p>Sub-paragraphs (3) to (6) have effect where shares in a subsidiary of the old company are transferred—</p></intro><level class="para1" eId="schedule-7-paragraph-5-7-a"><num>(a)</num><content><p>as if the reference in sub-paragraph (4) to the terms on which the old company is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect, and</p></content></level><level class="para1" eId="schedule-7-paragraph-5-7-b"><num>(b)</num><content><p>in relation to an interest or right of the subsidiary, as if the references in sub-paragraph (6) to the transfer of the interest or right included a reference to the transfer of the shares.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-5-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-further-provision-about-transfers"><heading><i>Further provision about transfers</i></heading><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content><p>An FMI transfer scheme may make incidental, supplemental, consequential and transitional provision in connection with the other provisions of the scheme.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><intro><p>An FMI transfer scheme may in particular make provision, in relation to a provision of the scheme—</p></intro><level class="para1" eId="schedule-7-paragraph-6-2-a"><num>(a)</num><content><p>for the new company to be treated as the same person in law as the old company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-b"><num>(b)</num><content><p>for agreements made, transactions effected or other things done by or in relation to the old company to be treated, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, as made, effected or done by or in relation to the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-c"><num>(c)</num><content><p>for references in an agreement, instrument or other document to the old company or to an employee or office holder with the old company to have effect, so far as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, with such modifications as are specified in the scheme;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-d"><num>(d)</num><content><p>that the effect of any transfer in accordance with the scheme in relation to contracts of employment with the old company is not to terminate any of those contracts but is to be that periods of employment with that company are to count for all purposes as periods of employment with the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-6-2-e"><num>(e)</num><content><p>for proceedings commenced by or against the old company to be continued by or against the new company.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><p>Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-5"><num>(5)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-5-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-5-b"><num>(b)</num><content><p>section 64 of the Law of Property Act 1925 (production and safe custody of documents) is to have effect accordingly, and on the basis that the acknowledgement did not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-6"><num>(6)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-6-a"><num>(a)</num><content><p>as if the transfer had been effected by deed, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-6-b"><num>(b)</num><content><p>as if the words “unless specially qualified” were omitted from each of those subsections.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-7"><num>(7)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-6-7-a"><num>(a)</num><content><p>the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right of that other person to production of the document and to delivery of copies of it, and</p></content></level><level class="para1" eId="schedule-7-paragraph-6-7-b"><num>(b)</num><content><p>section 9 of the Conveyancing Act 1881 is to have effect accordingly, and on the basis that the acknowledgement does not contain an expression of contrary intention.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-8"><num>(8)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-effect-of-scheme"><heading><i>Effect of scheme</i></heading><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-7-paragraph-7-1"><num>(1)</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-7-1-a"><num>(a)</num><content><p>the property, interests, rights or liabilities become by virtue of this Schedule the property, interests, rights or liabilities of the transferee at the time appointed by the court for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-7-1-b"><num>(b)</num><content><p>the provisions of that scheme in relation to that property, or those interests, rights or liabilities, have effect from that time.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-7-2"><num>(2)</num><intro><p>In this paragraph “<term refersTo="#term-the-transferee" eId="term-the-transferee">the transferee</term>” means—</p></intro><level class="para1" eId="schedule-7-paragraph-7-2-a"><num>(a)</num><content><p>in relation to property, rights or liabilities transferred by an FMI transfer scheme, the new company;</p></content></level><level class="para1" eId="schedule-7-paragraph-7-2-b"><num>(b)</num><content><p>in relation to interests, rights or liabilities created by such a scheme, the person in whose favour, or in relation to whom, they are created.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-subsequent-modification-of-scheme"><heading><i>Subsequent modification of scheme</i></heading><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-7-paragraph-8-1"><num>(1)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-2"><num>(2)</num><content><p>The notice must specify the time at which it is to take effect (the “modification time”).</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-3"><num>(3)</num><content><p>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.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-4"><num>(4)</num><intro><p>Those modifications may make—</p></intro><level class="para1" eId="schedule-7-paragraph-8-4-a"><num>(a)</num><content><p>any provision that could have been included in the scheme when it took effect at the time appointed for the purposes of paragraph 4(4), and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-4-aa"><num>(aa)</num><content><p>transitional provision in connection with provision falling within paragraph (a).</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-5"><num>(5)</num><intro><p>In deciding whether to modify an FMI transfer scheme, the Bank of England must have regard, in particular, to—</p></intro><level class="para1" eId="schedule-7-paragraph-8-5-a"><num>(a)</num><content><p>the public interest, and</p></content></level><level class="para1" eId="schedule-7-paragraph-8-5-b"><num>(b)</num><content><p>any effect that the modification is likely to have on the interests of third parties.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-8-6"><num>(6)</num><content><p>Before modifying an FMI transfer scheme that has taken effect, the Bank of England must consult the Treasury.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-8-7"><num>(7)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-provision-relating-to-foreign-property"><heading><i>Provision relating to foreign property</i></heading><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-7-paragraph-9-1"><num>(1)</num><intro><p>An FMI transfer scheme may contain provision about—</p></intro><level class="para1" eId="schedule-7-paragraph-9-1-a"><num>(a)</num><content><p>the transfer of foreign property, right and liabilities, and</p></content></level><level class="para1" eId="schedule-7-paragraph-9-1-b"><num>(b)</num><content><p>the creation of foreign property, rights and liabilities.</p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-9-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-application-of-schedule-to-transfers-to-subsidiaries"><heading><i>Application of Schedule to transfers to subsidiaries</i></heading><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><intro><p>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—</p></intro><level class="para1" eId="schedule-7-paragraph-10-a"><num>(a)</num><content><p>paragraph 4(1)(a) were omitted, and</p></content></level><level class="para1" eId="schedule-7-paragraph-10-b"><num>(b)</num><content><p><mod>in paragraph 4(6), for the words from “both” onwards there were substituted <quotedText>“
the old company has consented may be made
”</quotedText>.</mod></p></content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-8"><num>SCHEDULE 8<authorialNote class="referenceNote"><p>
Section 129</p></authorialNote></num><heading>Functions of FCA under competition legislation</heading><part eId="schedule-8-part-1"><num><b>PART 1</b></num><heading>Amendments of Financial Services and Markets Act 2000</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><content><p>Part 16A of FSMA 2000 (consumer protection and competition) is amended as follows.</p></content></paragraph><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><content><p>Omit section 234H (power of FCA to make request to Office of Fair Trading).</p></content></paragraph><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><content><p><mod>After section 234H insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>234I</num><heading>The FCA's functions under Part 4 of the Enterprise Act 2002</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies (“the concurrent functions”) are to be concurrent functions of the FCA and the Competition and Markets Authority (referred to in this Part as “<term refersTo="#term-the-cma">the CMA</term>”).</p></content></subsection><subsection><num>(2)</num><intro><p>Subsection (1) applies to the functions of the CMA under Part 4 of the Enterprise Act 2002 (market investigations), so far as those functions—</p></intro><level class="para1"><num>(a)</num><content><p>are exercisable by the CMA Board (within the meaning of Schedule 4 to the Enterprise and Regulatory Reform Act 2013), and</p></content></level><level class="para1"><num>(b)</num><content><p>relate to the provision of financial services.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following sections of the Enterprise Act 2002—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 166 (duty to maintain register of undertakings and orders);</p></item><item><p>section 171 (duty to publish guidance).</p></item></blockList></content></subsection><subsection><num>(4)</num><intro><p>So far as is necessary for the purposes of, or in connection with, subsections (1) and (2)—</p></intro><level class="para1"><num>(a)</num><content><p>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 FCA, and</p></content></level><level class="para1"><num>(b)</num><content><p>references in that Part to section 5 of that Act are to be read as including references to section 234M of this Act.</p></content></level></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to section 166 or 171 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection><subsection><num>(6)</num><intro><p>Section 130A of the Enterprise Act 2002 has effect in relation to the FCA by virtue of subsections (1) and (2) as if—</p></intro><level class="para1"><num>(a)</num><content><p>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 acquisition or provision in the United Kingdom of financial services, and</p></content></level><level class="para1"><num>(b)</num><content><p>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.</p></content></level></subsection><subsection><num>(7)</num><content><p>Before the CMA or the FCA first exercises any of the concurrent functions in relation to any matter, it must consult the other.</p></content></subsection><subsection><num>(8)</num><content><p>Neither the CMA nor the FCA 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.</p></content></subsection></section><section><num>234J</num><heading>The FCA's functions under the Competition Act 1998</heading><subsection><num>(1)</num><content><p>The functions to which this subsection applies are to be concurrent functions of the FCA and the CMA.</p></content></subsection><subsection><num>(2)</num><intro><p>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 the provision of financial services—</p></intro><level class="para1"><num>(a)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in section 2(1) of that Act,</p></content></level><level class="para1"><num>(b)</num><content><p>conduct of the kind mentioned in section 18(1) of that Act,</p></content></level><level class="para1"><num>(c)</num><content><p>agreements, decisions or concerted practices of the kind mentioned in Article 101(1) of the Treaty on the Functioning of the European Union, and</p></content></level><level class="para1"><num>(d)</num><content><p>conduct which amounts to abuse of the kind mentioned in Article 102 of the Treaty on the Functioning of the European Union.</p></content></level></subsection><subsection><num>(3)</num><content><p>But subsection (1) does not apply to functions under the following provisions of that Act—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 31D(1) to (6) (duty to publish guidance);</p></item><item><p>section 38(1) to (6) (duty to publish guidance about penalties);</p></item><item><p>section 40B(1) to (4) (duty to publish statement of policy on penalties);</p></item><item><p>section 51 (rules).</p></item></blockList></content></subsection><subsection><num>(4)</num><content><p>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 are to be read as including references to the FCA.</p></content></subsection><subsection><num>(5)</num><intro><p>But subsection (4) does not apply—</p></intro><level class="para1"><num>(a)</num><content><p>in relation to sections 31D(1) to (6), 38(1) to (6), 40B(1) to (4), 51, 52(6) and (8) and 54 of that Act, or</p></content></level><level class="para1"><num>(b)</num><content><p>where the context otherwise requires.</p></content></level></subsection></section><section><num>234K</num><heading>Duty to consider exercise of powers under Competition Act 1998</heading><subsection><num>(1)</num><content><p>Before exercising a power listed in subsection (3), the FCA must consider whether it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(2)</num><content><p>The FCA must not exercise such a power if it considers that it would be more appropriate to proceed under the Competition Act 1998.</p></content></subsection><subsection><num>(3)</num><intro><p>Those powers are—</p></intro><level class="para1"><num>(a)</num><content><p>the power under section 55J(2) to vary or cancel a Part 4A permission;</p></content></level><level class="para1"><num>(b)</num><content><p>the power under section 55L to impose a requirement on an authorised person with a Part 4A permission, or to vary a requirement imposed under that section;</p></content></level><level class="para1"><num>(c)</num><content><p>the power to take action under section 88E;</p></content></level><level class="para1"><num>(d)</num><content><p>the power to take action under section 89U;</p></content></level><level class="para1"><num>(e)</num><content><p>the power to give a direction under section 192C;</p></content></level><level class="para1"><num>(f)</num><content><p>the power to impose a requirement under section 196.</p></content></level></subsection></section><section><num>234L</num><heading>Provision of information and assistance to a CMA group</heading><subsection><num>(1)</num><intro><p>For the purpose of assisting a CMA group in carrying out a relevant investigation, the FCA must give the CMA group—</p></intro><level class="para1"><num>(a)</num><content><p>any relevant information which the FCA has in its possession, and</p></content></level><level class="para1"><num>(b)</num><content><p>any other assistance which the CMA group may reasonably require in relation to any matters falling within the scope of the investigation.</p></content></level></subsection><subsection><num>(2)</num><content><p>A “relevant investigation” is an investigation carried out on a reference made by the FCA under section 131 of the Enterprise Act 2002 by virtue of section 234I.</p></content></subsection><subsection><num>(3)</num><intro><p>“<term refersTo="#term-relevant-information">Relevant information</term>”, in relation to a relevant investigation, is information—</p></intro><level class="para1"><num>(a)</num><content><p>which relates to matters falling within the scope of the investigation, and</p></content></level><level class="para1"><num>(b)</num><intro><p>which—</p></intro><level class="para2"><num>(i)</num><content><p>is requested by the CMA group for the purpose of the investigation, or</p></content></level><level class="para2"><num>(ii)</num><content><p>in the FCA's opinion, it would be appropriate to give to the CMA group for that purpose.</p></content></level></level></subsection><subsection><num>(4)</num><content><p>A CMA group, in carrying out a relevant investigation, must take into account any information given to it under this section.</p></content></subsection><subsection><num>(5)</num><content><p>In this section “<term refersTo="#term-cma-group">CMA group</term>” has the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013.</p></content></subsection></section><section><num>234M</num><heading>Function of keeping market under review</heading><subsection><num>(1)</num><content><p>For the purpose of the functions conferred on it by sections 234I to 234L the FCA is to have the function of keeping under review the market for financial services.</p></content></subsection><subsection><num>(2)</num><content><p>The function conferred by subsection (1) is to be carried out with a view to (among other things) ensuring that the FCA has sufficient information to take informed decisions and to carry out its other functions effectively.</p></content></subsection></section><section><num>234N</num><heading>Exclusion of general duties</heading><subsection><num>(1)</num><content><p>Section 1B (the FCA's general duties) does not apply in relation to anything done by the FCA in the carrying out of its functions by virtue of sections 234I to 234L.</p></content></subsection><subsection><num>(2)</num><content><p>But in the carrying out of any functions by virtue of sections 234I to 234L, the FCA may have regard to any of the matters in respect of which a duty is imposed by section 1B if it is a matter to which the CMA is entitled to have regard in the carrying out of those functions.</p></content></subsection></section><section><num>234O</num><heading>Supplementary provision</heading><subsection><num>(1)</num><content><p>If any question arises as to whether, by virtue of section 234I or 234J, any functions fall to be, or are capable of being, carried out by the FCA in relation to any particular case, that question is to be referred to, and determined by, the Treasury.</p></content></subsection><subsection><num>(2)</num><content><p>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 FCA on the ground that it should have been done by or in relation to the CMA.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><content><p><mod>In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from specified action), in subsection (3)(a), after “55I” insert <quotedText>“
, a power conferred on it by sections 234I to 234M
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><content><p><mod>In section 348 of FSMA 2000 (restrictions on disclosure of confidential information by FCA, PRA <abbr title="Et cetera" xml:lang="la">etc</abbr>), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content><p>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 FCA under the Competition Act 1998 or the Enterprise Act 2002 by virtue of Part 16A of this Act.</p><p>(For provision about the disclosure of such information, see Part 9 of the Enterprise Act 2002.)</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 354A of FSMA 2000 (FCA's duty to co-operate with others), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content><p>Subsection (1) does not apply in relation to the Competition and Markets Authority in a case where the FCA has made a reference under section 131 of the Enterprise Act 2002 as a result of section 234I (but see section 234L).</p></content></subsection></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-8-paragraph-7-1"><num>(1)</num><content><p>Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-2"><num>(2)</num><content><p><mod>In paragraph 8 (arrangements for discharging functions), after sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5)</num><content><p>In respect of the exercise of a function under Part 1 of the Competition Act 1998, the power in sub-paragraph (1) is subject to provision in rules made under section 51 of that Act by virtue of paragraph 1A of Schedule 9 to that Act.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-7-3"><num>(3)</num><content><p><mod>In paragraph 23 (fees), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(2A)</num><content><p>The functions referred to in sub-paragraph (1)(a) include functions of the FCA under the Competition Act 1998 or the Enterprise Act 2002 as a result of Part 16A of this Act; but this sub-paragraph is not to be regarded as limiting the effect of the definition of “functions” in paragraph 1.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></part><part eId="schedule-8-part-2"><num><b>PART 2</b></num><heading>Amendments of other legislation</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-company-directors-disqualification-act-1986"><heading><i>Company Directors Disqualification Act 1986</i></heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-competition-act-1998"><heading><i>Competition Act 1998</i></heading><paragraph eId="schedule-8-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(j)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-act-2002"><heading><i>Enterprise Act 2002</i></heading><paragraph eId="schedule-8-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-8-paragraph-10-1"><num>(1)</num><content><p>Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-2"><num>(2)</num><content><p><mod>In subsection (7), after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(ea)</num><content><p>in relation to the Financial Conduct Authority, section 234I of the Financial Services and Markets Act 2000;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-8-paragraph-10-3"><num>(3)</num><content><p><mod>In subsection (8), after “the Office of Rail Regulation,” insert <quotedText>“
the Financial Conduct Authority,
”</quotedText>.</mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-part-2-crossheading-enterprise-and-regulatory-reform-act-2013"><heading><i>Enterprise and Regulatory Reform Act 2013</i></heading><paragraph eId="schedule-8-paragraph-11" class="schProv1"><num>11</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(h)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-8-paragraph-12" class="schProv1"><num>12</num><content><p><mod>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—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(i)</num><content><p>the Financial Conduct Authority.</p></content></level></quotedStructure></mod></p></content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-9"><num>SCHEDULE 9<authorialNote class="referenceNote"><p>
Section 138</p></authorialNote></num><heading>Building societies</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-introductory"><heading><i>Introductory</i></heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><p>The Building Societies Act 1986 is amended as follows.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-exclusion-of-small-business-deposits-from-funding-limit"><heading><i>Exclusion of small business deposits from funding limit</i></heading><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-9-paragraph-2-1"><num>(1)</num><content><p>Section 7 (the funding limit) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>subject to subsection (3A), the principal of, and interest accrued on, sums deposited with the society or any subsidiary undertaking of the society by a small business (see subsection (10));</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-3"><num>(3)</num><content><p><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in the absence of subsection (3)(aa), be the value of X on that day.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-4"><num>(4)</num><content><p><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6ZA)</num><content><p>Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively presumed for the purposes of this section to be a small business.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-2-5"><num>(5)</num><content><p><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(10)</num><content><p>In this section “<term refersTo="#term-small-business">small business</term>” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant financial year of less than £1,000,000.</p></content></subsection><subsection><num>(11)</num><intro><p>For the purposes of subsection (10)—</p></intro><level class="para1"><num>(a)</num><content><p>the “<term refersTo="#term-relevant-financial-year">relevant financial year</term>”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to a building society, means the last financial year ending before that day;</p></content></level><level class="para1"><num>(b)</num><content><p>“<term refersTo="#term-turnover">turnover</term>”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;</p></content></level><level class="para1"><num>(c)</num><content><p>in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency, calculated as at the last day of that year.</p></content></level></subsection><subsection><num>(12)</num><content><p>The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10) and (11)(c).</p></content></subsection><subsection><num>(13)</num><content><p>A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-9-paragraph-3-1"><num>(1)</num><content><p><mod>In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/860), in paragraph 3, for “the modification required by this article” substitute <quotedText>“
the modifications required by this article and by section 7(3)(aa)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-3-2"><num>(2)</num><content><p>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.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-ability-to-create-floating-charges"><heading><i>Ability to create floating charges</i></heading><paragraph eId="schedule-9-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-9-paragraph-4-1"><num>(1)</num><content><p>Omit section 9B (restriction on creation of floating charges).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-4-2"><num>(2)</num><intro><p>In Schedule 15A (application of other companies insolvency legislation to building societies), omit the following paragraphs—</p></intro><level class="para1" eId="schedule-9-paragraph-4-2-a"><num>(a)</num><content><p>paragraph 18 (which modifies section 15 of the Insolvency Act 1986);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-b"><num>(b)</num><content><p>paragraph 20 (which modifies section 19 of that Act);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-c"><num>(c)</num><content><p>paragraph 40 (which modifies Article 28 of the Insolvency (Northern Ireland) Order 1989);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-2-d"><num>(d)</num><content><p>paragraph 42 (which modifies Article 31 of that Order).</p></content></level></subparagraph><subparagraph eId="schedule-9-paragraph-4-3"><num>(3)</num><intro><p>In consequence of the amendment made by sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-9-paragraph-4-3-a"><num>(a)</num><content><p><mod>in section 1(1A)(b), for “, 9A and 9B” substitute <quotedText>“
and 9A
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-b"><num>(b)</num><content><p>in the Building Societies Act 1997, omit section 11;</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-c"><num>(c)</num><content><p><mod>in section 11(3) of the Banking (Special Provisions) Act 2008, for paragraph (c) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(c)</num><content><p>sections 8 and 9A of the Building Societies Act 1986 (restrictions on raising funds and borrowing and on transactions involving derivative instruments <abbr title="Et cetera" xml:lang="la">etc</abbr>);</p></content></level></quotedStructure><inline name="appendText">;</inline></mod></p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-d"><num>(d)</num><content><p>in section 251 of the Banking Act 2009, omit subsection (7);</p></content></level><level class="para1" eId="schedule-9-paragraph-4-3-e"><num>(e)</num><content><p>in the Financial Services Act 2012, omit section 55.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-annual-business-statements"><heading><i>Annual business statements</i></heading><paragraph eId="schedule-9-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-9-paragraph-5-1"><num>(1)</num><content><p>Section 74 (duty of directors to prepare annual business statement) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-2"><num>(2)</num><content><p>In subsection (4), omit the words from “and other officers” to “them”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-5-3"><num>(3)</num><content><p>In subsection (8), omit “or other officer”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-summary-financial-statements"><heading><i>Summary financial statements</i></heading><paragraph eId="schedule-9-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-9-paragraph-6-1"><num>(1)</num><content><p>Section 76 (summary financial statement for members and depositors) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-2"><num>(2)</num><content><p><mod>After subsection (8A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8AA)</num><intro><p>The society shall also—</p></intro><level class="para1"><num>(a)</num><content><p>publish the summary financial statement and (where applicable) the auditor's report on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>ensure that the statement and (where applicable) the report may be accessed on the web site until the publication of the next summary financial statement.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-3"><num>(3)</num><content><p><mod>After subsection (8D) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8E)</num><content><p>If, at any time during the period beginning with the publication of the summary financial statement and ending with the publication of the next summary financial statement, an individual for the first time subscribes for shares in the society, the society shall at that time notify the individual of the information in subsection (8C)(c)(i) to (iii).</p></content></subsection><subsection><num>(8F)</num><content><p>In a case where subsection (8E) applies, the society is not required under section 115B (right to hard copy version) to send the individual a version of the summary financial statement or (where applicable) the auditor's report in hard copy form (within the meaning of that section).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-4"><num>(4)</num><content><p>Omit subsections (9) to (9E).</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-6-5"><num>(5)</num><content><p><mod>In subsection (11), for “subsection (9)” substitute <quotedText>“
subsection (8AA) or (8E)
”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-7" class="schProv1"><num>7</num><intro><p>In consequence of the amendments made by paragraph 6—</p></intro><level class="para1" eId="schedule-9-paragraph-7-a"><num>(a)</num><content><p><mod>in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute <quotedText>“
subsection (8) of section 76 extends
”</quotedText>;</mod></p></content></level><level class="para1" eId="schedule-9-paragraph-7-b"><num>(b)</num><content><p>in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-transfers-of-business-distributions-and-share-rights"><heading><i>Transfers of business: distributions and share rights</i></heading><paragraph eId="schedule-9-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-9-paragraph-8-1"><num>(1)</num><content><p>Section 100 (regulated terms <abbr title="Et cetera" xml:lang="la">etc</abbr>: distributions and share rights) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-2"><num>(2)</num><content><p><mod>For subsection (8) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><intro><p>The terms of a transfer of a society's business may confer a right to acquire shares in the successor on a member of the society only if the member—</p></intro><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, holds deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><wrapUp><p>and it is unlawful for any right in relation to shares to be conferred in contravention of this subsection.</p></wrapUp></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-8-3"><num>(3)</num><content><p><mod>In subsection (9), for the words from “who” to “and” substitute<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><p>who—</p><level class="para1"><num>(a)</num><content><p>held shares in the society throughout the period of two years ending with the qualifying day, or</p></content></level><level class="para1"><num>(b)</num><content><p>on that day, hold deferred shares in the society that are of a class described in the transfer agreement;</p></content></level><p>and</p></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-methods-of-communicating-with-members-etc"><heading><i>Methods of communicating with members <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-9-paragraph-9" class="schProv1"><num>9</num><content><p><mod>After section 115 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>115A</num><heading>Deemed agreement to use of web site</heading><subsection><num>(1)</num><intro><p>For the purposes of this Act, a person is to be taken to have agreed with a building society to access a document, information or facility on a web site if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has been asked individually by the society to agree to access documents, information or facilities generally, or documents, information or facilities of the description in question, on a web site, and</p></content></level><level class="para1"><num>(b)</num><content><p>the society has not received a response within the period of 28 days beginning with the date on which the society's request was received.</p></content></level><wrapUp><p>This is subject to subsections (2) to (4).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>A person is not to be taken to have so agreed if the society's request—</p></intro><level class="para1"><num>(a)</num><content><p>did not state clearly what the effect of a failure to respond would be, or</p></content></level><level class="para1"><num>(b)</num><content><p>was sent less than 12 months after a previous request made to the person for the purposes of this section in respect of the same or a similar description of document, information or facility.</p></content></level></subsection><subsection><num>(3)</num><content><p>A person who is taken to have made an agreement by virtue of subsection (1) may revoke the agreement.</p></content></subsection><subsection><num>(4)</num><intro><p>Subsection (1) does not apply in relation to the following documents—</p></intro><level class="para1"><num>(a)</num><content><p>a statement required to be sent to members by paragraph 1(1) of Schedule 16 (statements in connection with proposed mergers);</p></content></level><level class="para1"><num>(b)</num><content><p>a merger statement (within the meaning of Part 2 of that Schedule) required to be sent to members by paragraph 3 of that Schedule;</p></content></level><level class="para1"><num>(c)</num><content><p>a transfer statement or transfer summary (within the meaning of Part 1 of Schedule 17) required to be sent to members by paragraph 4(1) or (2) of that Schedule;</p></content></level><level class="para1"><num>(d)</num><content><p>a transfer proposal notification (within the meaning of Part 1A of Schedule 17) required to be sent to members by paragraph 5B(1) of that Schedule.</p></content></level></subsection></section><section><num>115B</num><heading>Right to hard copy version</heading><subsection><num>(1)</num><content><p>Where a person has received a document or information from a building society otherwise than in hard copy form, the person is entitled to require the society to send the person a version of the document or information in hard copy form.</p></content></subsection><subsection><num>(2)</num><content><p>The society must send the document or information in hard copy form within 21 days of receipt of the request from the person.</p></content></subsection><subsection><num>(3)</num><content><p>The society may not make a charge for providing the document or information in that form.</p></content></subsection><subsection><num>(4)</num><content><p>Subsection (1) does not apply if the recipient of the document or information is the FCA or the PRA.</p></content></subsection><subsection><num>(5)</num><content><p>A building society that fails to comply with this section is to be treated as having contravened rules made under section 137A of the Financial Services and Markets Act 2000.</p></content></subsection><subsection><num>(6)</num><intro><p>For the purposes of this section a person is treated as receiving a document or information from a building society if—</p></intro><level class="para1"><num>(a)</num><content><p>the society is required by this Act to send the document or information to the person, and</p></content></level><level class="para1"><num>(b)</num><content><p>the requirement to send it is treated as satisfied.</p></content></level></subsection><subsection><num>(7)</num><intro><p>For the purposes of this section—</p></intro><level class="para1"><num>(a)</num><content><p>a document or information is sent or supplied in hard copy form if it is sent or supplied in a paper copy or similar form capable of being read, and</p></content></level><level class="para1"><num>(b)</num><content><p>a document or information can be read only if it can be read with the naked eye, or (to the extent that it consists of images) it can be seen with the naked eye.</p></content></level></subsection></section><section><num>115C</num><heading>Other agreed forms of communication</heading><subsection><num>(1)</num><content><p>A document or information that is sent or supplied by a building society otherwise than in hard copy form or electronically or by means of a web site is validly sent or supplied if it is sent or supplied in a form or manner that has been agreed by the intended recipient.</p></content></subsection><subsection><num>(2)</num><content><p>For the purposes of this section “<term refersTo="#term-hard-copy-form">hard copy form</term>” is to be read in accordance with section 115B(7).</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-9-paragraph-10" class="schProv1"><num>10</num><content><p>In the following provisions, omit “, in a manner agreed between him and the society,”—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 60(7B)(c),</p></item><item><p>section 61(7D)(c),</p></item><item><p>section 68(6B)(c),</p></item><item><p>section 69(15B)(c),</p></item><item><p>section 76(8C)(c).</p></item></blockList></content></paragraph><paragraph eId="schedule-9-paragraph-11" class="schProv1"><num>11</num><content><p>In section 81(3B)(c), omit “, in a manner agreed for the purpose between him and the society,”.</p></content></paragraph><paragraph eId="schedule-9-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-9-paragraph-12-1"><num>(1)</num><content><p>Schedule 2 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-2"><num>(2)</num><content><p>In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-3"><num>(3)</num><content><p>In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between him and the society for that purpose,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-4"><num>(4)</num><content><p>In paragraph 24(1B)(b), omit “in a manner agreed between the society and that member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-5"><num>(5)</num><content><p>In paragraph 32(2D)(c), omit “, in a manner agreed between the society and the member,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-12-6"><num>(6)</num><content><p>In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between him and the society”.</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-13" class="schProv1"><num>13</num><content><p>In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner agreed between the society and that person,”.</p></content></paragraph><paragraph eId="schedule-9-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-9-paragraph-14-1"><num>(1)</num><content><p>Schedule 11 is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-2"><num>(2)</num><content><p>In paragraph 4(9C)(c), omit “, in a manner agreed between him and the society,”.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-3"><num>(3)</num><content><p><mod>In paragraph 7(7C)(c), for “in a manner agreed between the society and that person, he” substitute <quotedText>“
the person
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-14-4"><num>(4)</num><content><p>In paragraph 8(3B)(c), omit “, in a manner agreed between him and the society for the purpose,”.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-9-crossheading-financial-year"><heading><i>Financial year</i></heading><paragraph eId="schedule-9-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-9-paragraph-15-1"><num>(1)</num><content><p>Section 117 (financial year of building societies) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-2"><num>(2)</num><content><p><mod>For subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><content><p>A building society's financial years (apart from its final financial year) are determined according to its year-end date in each calendar year.</p><p>For provision about a building society's final financial year, see subsection (1G).</p></content></subsection><subsection><num>(1A)</num><intro><p>The year-end date of a building society established before 25th August 1894 is—</p></intro><level class="para1"><num>(a)</num><content><p>the date up to which, as at 1st January 1987, the accounts of the society were annually made up, or</p></content></level><level class="para1"><num>(b)</num><content><p>if the society has, at any time before the day on which subsection (1) comes into force (“<term refersTo="#term-the-relevant-day">the relevant day</term>”), altered its financial year in exercise of a power within subsection (1B), 31st December.</p></content></level></subsection><subsection><num>(1B)</num><intro><p>The powers referred to in subsection (1A)(b) are—</p></intro><level class="para1"><num>(a)</num><content><p>the power conferred by section 70(2) of the Building Societies Act 1960,</p></content></level><level class="para1"><num>(b)</num><content><p>the power conferred by section 128(2) of the Building Societies Act 1962, and</p></content></level><level class="para1"><num>(c)</num><content><p>the power conferred by subsection (3) of this section (as it had effect immediately before the relevant day).</p></content></level></subsection><subsection><num>(1C)</num><content><p>The year-end date of a building society established on or after 25th August 1894 and before the relevant day is 31st December.</p></content></subsection><subsection><num>(1D)</num><content><p>The year-end date of a building society established on or after the relevant day is the last day of the month in which the anniversary of its establishment falls.</p></content></subsection><subsection><num>(1E)</num><content><p>The financial year of a building society established before the relevant day is the period of 12 months ending with the year-end date of the society (but see subsection (1G)).</p></content></subsection><subsection><num>(1F)</num><intro><p>In the case of a building society established on or after the relevant day—</p></intro><level class="para1"><num>(a)</num><content><p>the initial financial year of the society shall be the period of more than 6 months, but not more than 18 months, beginning with the date of its establishment and ending with its year-end date, and</p></content></level><level class="para1"><num>(b)</num><content><p>its subsequent financial years are successive periods of 12 months beginning immediately after the end of the previous financial year and ending with its year-end date (but see subsection (1G)).</p></content></level></subsection><subsection><num>(1G)</num><content><p>The final financial year of a building society is a period of less than 12 months that begins immediately after the end of the previous financial year and ends with the date as at which the society makes up its final accounts.</p></content></subsection><subsection><num>(1H)</num><content><p>This section has effect subject to section 117A (alteration of financial year).</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-9-paragraph-15-3"><num>(3)</num><content><p>Omit subsections (2) and (3).</p></content></subparagraph></paragraph><paragraph eId="schedule-9-paragraph-16" class="schProv1"><num>16</num><content><p><mod>After section 117 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>117A</num><heading>Alteration of financial year</heading><subsection><num>(1)</num><content><p>A building society may by notice given to the FCA specify a new year-end date.</p></content></subsection><subsection><num>(2)</num><intro><p>A notice given under subsection (1) has effect in relation to—</p></intro><level class="para1"><num>(a)</num><content><p>the financial year in which the notice is given (“the current financial year”), and</p></content></level><level class="para1"><num>(b)</num><content><p>subsequent financial years.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The notice must state whether the current financial year—</p></intro><level class="para1"><num>(a)</num><content><p>is to be shortened, so as to come to an end on the first occasion on which the new year-end date falls or fell after the beginning of the current financial year, or</p></content></level><level class="para1"><num>(b)</num><content><p>is to be extended, so as to come to an end on the second occasion on which that date falls or fell after the beginning of the current financial year.</p></content></level></subsection><subsection><num>(4)</num><content><p>A notice extending a building society's financial year is not effective if given less than 5 years after the end of an earlier financial year of the society that was extended under this section.</p></content></subsection><subsection><num>(5)</num><content><p>A financial year of a building society may not be extended so as to exceed 18 months and a notice under subsection (1) is ineffective if the current financial year as extended in accordance with the notice would exceed that limit.</p></content></subsection></section></quotedStructure></mod></p></content></paragraph><paragraph eId="schedule-9-paragraph-17" class="schProv1"><num>17</num><content><p>In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).</p></content></paragraph><paragraph eId="schedule-9-paragraph-18" class="schProv1"><num>18</num><content><p>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.</p></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-10"><num>SCHEDULE 10<authorialNote class="referenceNote"><p>
Section 141</p></authorialNote></num><heading>Minor amendments</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-companies-act-1985"><heading><i>Companies Act 1985</i></heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content><p>In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-financial-services-and-markets-act-2000"><heading><i>Financial Services and Markets Act 2000</i></heading><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In section 376 of FSMA 2000 (continuation of contracts of long-term insurance where insurer in liquidation), in subsection (11B), for “PRA-authorised” substitute <quotedText>“
PRA-regulated
”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-10-paragraph-3-1"><num>(1)</num><content><p>Part 25 of FSMA 2000 (injunctions and restitution) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-2"><num>(2)</num><content><p><mod>In section 380 (injunctions), in subsection (6)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-3"><num>(3)</num><content><p><mod>In section 382 (restitution orders), in subsection (9)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph (iii) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(iv)</num><content><p>which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part;</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-3-4"><num>(4)</num><content><p><mod>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) insert<quotedText startQuote="“">or
</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(d)</num><content><p>a requirement which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention constitutes an offence under that Part.</p></content></level></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-10-paragraph-4-1"><num>(1)</num><content><p>In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-2"><num>(2)</num><content><p><mod>In sub-paragraph (3)(b), after “this Act” insert <quotedText>“
or under a provision mentioned in sub-paragraph (4A)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-3"><num>(3)</num><content><p><mod>In sub-paragraph (4), after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>its powers under the relevant competition provisions (as applied by Part 16A of this Act),</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-4"><num>(4)</num><content><p><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4A)</num><intro><p>The relevant competition provisions” are—</p></intro><level class="para1"><num>(a)</num><content><p>section 31E of the Competition Act 1998 (enforcement of commitments);</p></content></level><level class="para1"><num>(b)</num><content><p>section 34 of that Act (enforcement of directions);</p></content></level><level class="para1"><num>(c)</num><content><p>section 36 of that Act (penalties);</p></content></level><level class="para1"><num>(d)</num><content><p>section 40A of that Act (penalties: failure to comply with requirements);</p></content></level><level class="para1"><num>(e)</num><content><p>section 174A of the Enterprise Act 2002 (penalties).</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-4-5"><num>(5)</num><intro><p>In sub-paragraph (5)—</p></intro><level class="para1" eId="schedule-10-paragraph-4-5-a"><num>(a)</num><content><p><mod>in paragraph (a), for “FSMA 2000” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-b"><num>(b)</num><content><p><mod>in paragraph (b), for “that Act” substitute <quotedText>“
this Act
”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-c"><num>(c)</num><content><p>in paragraph (c), omit “of that Act”, and</p></content></level><level class="para1" eId="schedule-10-paragraph-4-5-d"><num>(d)</num><content><p><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(ca)</num><content><p>offences under Part 1 of the Competition Act 1998,</p></content></level><level class="para1"><num>(cb)</num><content><p>offences under Part 4 of the Enterprise Act 2002,</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><p><mod>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 <quotedText>“
subsection (1)
”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-income-tax-act-2007"><heading><i>Income Tax Act 2007</i></heading><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><p><mod>In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute <quotedText>“
Part 4A
”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-banking-act-2009"><heading><i>Banking Act 2009</i></heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num><noteRef href="#key-ec72f71c25d573ecd57141a3c29d6a78" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>7</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></paragraph><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><p><mod>In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert <quotedText>“
payment
”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-financial-services-act-2012"><heading><i>Financial Services Act 2012</i></heading><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><intro><p>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)—</p></intro><level class="para1" eId="schedule-10-paragraph-9-a"><num>(a)</num><content><p><mod>for “their activities,” substitute <quotedText>“
of the carrying on of regulated activities,
”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-10-paragraph-9-b"><num>(b)</num><content><p><mod>for “or for the regulation of collective investment schemes” substitute <quotedText>“
, for the regulation of collective investment schemes or for the regulation of recognised investment exchanges,
”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-10-paragraph-10-1"><num>(1)</num><content><p>Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-2"><num>(2)</num><content><p><mod>For subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro><p>The relevant functions of the FCA or the PRA are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions conferred by or under FSMA 2000, other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-3"><num>(3)</num><content><p><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><intro><p>The relevant functions of the Bank of England are—</p></intro><level class="para1"><num>(a)</num><content><p>its functions under Part 18 of FSMA 2000 (recognised clearing houses) or under Part 5 of the Banking Act 2009 (inter-bank payment systems), other than its legislative functions, and</p></content></level><level class="para1"><num>(b)</num><content><p>such other functions as the Treasury may by order provide.</p></content></level></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-4"><num>(4)</num><content><p><mod>In subsections (4) and (5), for “subsection (2)” substitute <quotedText>“
subsection (2)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-5"><num>(5)</num><content><p><mod>In subsections (6) and (7), for “subsection (3)” substitute <quotedText>“
subsection (3)(a)
”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-10-paragraph-10-6"><num>(6)</num><content><p><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8)</num><content><p>For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA 2000 do not apply.</p></content></subsection></quotedStructure></mod></p></content></subparagraph></paragraph></hcontainer></hcontainer></hcontainer>