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After section 145 of the Banking Act 2009 insert— |
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“145A | Power to direct bank administrator |
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(1) | This section applies where— |
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(a) | a bank administration order has been made, and |
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(b) | the Treasury are of the opinion that anything done, or proposed |
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to be done, in connection with the exercise of one or more of the |
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stabilisation powers may constitute the granting of aid to which |
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any of the provisions of Article 107 or 108 of TFEU applies |
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(2) | The Treasury may, in writing, direct the bank administrator to take |
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specified action to enable the United Kingdom to fulfil any of the |
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purposes specified in subsection (3). |
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(a) | to inform the European Commission that State aid has been, |
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may have been, or may be, given; |
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(b) | to obtain a decision from the Commission whether State aid— |
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(ii) | would be given, if the action proposed was taken; |
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(c) | to apply for approval that such aid is, or would be, compatible |
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with the internal market, within the meaning of Article 107 of |
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(d) | to comply with any requirements to enable an investigation |
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under Article 108 of TFEU to be carried out; |
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(e) | to comply with any undertaking given to the European |
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Commission in connection with the application for approval |
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referred to in paragraph (c); |
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(f) | to comply with any requests from the Commission relating to |
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the application for approval, including the provision of |
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(g) | to comply with any undertakings given to the Commission, or |
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conditions imposed by the Commission, where approval has |
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(4) | Before giving a direction under this section the Treasury must consult |
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(5) | The bank administrator must comply with the direction within the |
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period of time specified in the direction, or if no period of time is |
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specified, as soon as reasonably practicable. |
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(6) | A direction under this section is enforceable on an application made by |
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the Treasury, by injunction or, in Scotland, by an order for specific |
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performance under section 45 of the Court of Session Act 1988. |
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(7) | A direction may specify circumstances in which the bank administrator |
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is immune from liability in damages. |
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(8) | Immunity by virtue of subsection (7) does not extend to action— |
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(b) | in contravention of section 6(1) of the Human Rights Act 1998. |
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(9) | If the United Kingdom has made, or proposes to make, an application |
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to the Council of the European Union under Article 108 of the TFEU, |
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references in subsection (3) to the Commission are to be read as |
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including references to the Council. |
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(10) | In this section “TFEU” means the Treaty on the Functioning of the |
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Inter-bank payment systems |
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88 | Inter-bank payment systems |
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(1) | Part 5 of the Banking Act 2009 (inter-bank payment systems) is amended as |
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(2) | After section 186 insert— |
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“186A | Amendment of recognition order |
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(1) | The Treasury may amend a recognition order. |
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(2) | Before amending a recognition order the Treasury must— |
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(a) | consult the Bank of England, |
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(b) | notify the operator of the recognised inter-bank payment |
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(c) | consider any representations made. |
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(3) | In addition, the Treasury— |
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(a) | must consult the FCA before amending a recognition order in |
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respect of a payment system the operator of which— |
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(i) | is, or has applied to become, a recognised investment |
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(ii) | has, or has applied for, a Part 4A permission, and |
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(b) | if the operator has, or has applied for, a Part 4A permission for |
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the carrying on of a PRA-regulated activity, must also consult |
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(4) | The Treasury must consider any request by the operator of a recognised |
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inter-bank payment system for the amendment of its recognition |
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(3) | For section 191 substitute— |
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(1) | The Bank of England may give directions in writing to the operator of |
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a recognised inter-bank system. |
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(a) | require or prohibit the taking of specified action in the operation |
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(b) | set standards to be met in the operation of the system. |
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(3) | If a direction is given for the purpose of resolving or reducing a threat |
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to the stability of the UK financial system, the operator (including its |
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officers and staff) has immunity from liability in damages in respect of |
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action or inaction in accordance with the direction. |
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(4) | A direction given for the purpose mentioned in subsection (3) must— |
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(a) | include a statement that it is given for that purpose, and |
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(b) | inform the operator of the effect of that subsection. |
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(5) | The Treasury may by order confer immunity on any person from |
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liability in damages in respect of action or inaction in accordance with |
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a direction (including a direction given for the purpose mentioned in |
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(a) | is to be made by statutory instrument, and |
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(b) | is subject to annulment in pursuance of a resolution of either |
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(7) | An immunity conferred by or under this section does not extend to |
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(b) | in contravention of section 6(1) of the Human Rights Act 1998.” |
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(4) | In section 186 (procedure)— |
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(a) | for subsection (2) substitute— |
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“(2) | In addition, the Treasury— |
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(a) | must consult the FCA before making a recognition order |
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in respect of a payment system the operator of which— |
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(i) | is, or has applied to become, a recognised |
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(ii) | has, or has applied for, a Part 4A permission, and |
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(b) | if the operator has, or has applied for, a Part 4A |
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permission for the carrying on of a PRA-regulated |
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activity, must also consult the PRA.”, and |
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(b) | in subsection (3), for “or the FSA” substitute “, the FCA or the PRA”. |
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(5) | In section 187 (de-recognition), for subsection (4) substitute— |
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“(4) | In addition, the Treasury— |
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(a) | must consult the FCA before revoking a recognition order in |
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respect of a payment system the operator of which— |
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(i) | is, or has applied to become, a recognised investment |
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(ii) | has, or has applied for, a Part 4A permission, and |
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(b) | if the operator has, or has applied for, a Part 4A permission for |
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the carrying on of a PRA-regulated activity, must also consult |
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(6) | In section 192 (role of FSA)— |
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(a) | in subsection (1), for “the FSA” substitute “the FCA or the PRA”, |
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(b) | for subsection (2) substitute— |
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“(2) | The Bank of England— |
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(a) | must consult the FCA before taking action under this |
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Part in respect of a recognised inter-bank payment |
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system the operator of which satisfies section 186(2)(a), |
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(b) | must consult the PRA before taking action under this |
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Part in respect of a recognised inter-bank payment |
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system the operator of which satisfies section |
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(i) | for “the FSA”, in the first place, substitute “the FCA or the PRA”, |
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(ii) | for “the FSA”, in the second place, substitute “it”, |
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(iii) | for “section 186(2)” substitute “section 186(2)(a) or (b)”, and |
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(iv) | in paragraph (a), for “the FSA” substitute “the FCA or (as the |
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case may be) the PRA”, and |
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(d) | in the heading, for “FSA” substitute “FCA and PRA”. |
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(7) | After section 202 insert— |
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(1) | If, on the application of the Bank of England, the court is satisfied— |
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(a) | that there is a reasonable likelihood that there will be a |
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(b) | that there has been a compliance failure and there is a |
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reasonable likelihood that it will continue or be repeated, |
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| the court may make an order restraining the conduct constituting the |
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(2) | If, on the application of the Bank of England, the court is satisfied— |
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(a) | that there has been a compliance failure by the operator of a |
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recognised inter-bank payment system, and |
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(b) | that there are steps which could be taken for remedying the |
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| the court may make an order requiring the operator, and anyone else |
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who appears to have been knowingly concerned in the failure, to take |
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such steps as the court may direct to remedy it. |
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(3) | If, on the application of the Bank of England, the court is satisfied— |
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(a) | that there may have been a compliance failure by the operator |
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of a recognised inter-bank payment system, or |
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(b) | that a person may have been knowingly concerned in a |
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| the court may make an order restraining the operator or person from |
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dealing with any assets which it is satisfied the operator or person is |
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reasonably likely to deal with. |
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(4) | The jurisdiction conferred by this section is exercisable— |
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(a) | in England and Wales and Northern Ireland, by the High Court, |
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(b) | in Scotland, by the Court of Session. |
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(a) | references to an order restraining anything are, in Scotland, to |
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be read as references to an interdict prohibiting that thing, |
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(b) | references to remedying a failure include mitigating its effect, |
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(c) | references to dealing with assets include disposing of them.” |
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(8) | After section 203 insert— |
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(1) | The Bank of England must maintain satisfactory arrangements for— |
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(a) | recording decisions made in the exercise of its functions under |
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(b) | the safe-keeping of those records which it considers ought to be |
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(2) | The duty in subsection (1) does not apply to a decision to issue a notice |
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(1) | At least once a year the Bank of England must make a report to the |
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(a) | the discharge of its functions under this Part, |
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(b) | the extent to which, in its opinion, in discharging those |
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functions its financial stability objective has been met, and |
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(c) | such other matters as the Treasury may from time to time direct. |
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(2) | Subsection (1) does not require the inclusion in the report of any |
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information whose publication would in the opinion of the Bank of |
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England be against the public interest. |
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(3) | The Treasury must lay before Parliament a copy of each report received |
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by them under this section.” |
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(9) | In section 204 (information)— |
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(a) | after subsection (1), insert— |
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“(1A) | The Bank of England may by notice in writing require the |
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operator of a recognised inter-bank payment system to provide |
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information which the Bank requires in connection with the |
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exercise of its functions (whether under this Part or otherwise) |
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in pursuance of its financial stability objective.”, |
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(b) | in subsections (2) and (3), after “notice” insert “under subsection (1) or |
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(c) | in subsection (4), for paragraph (b) substitute— |
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(d) | in paragraph (c) of that subsection, for “or the FSA” substitute “, the |
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(10) | In section 206A (services forming part of recognised inter-bank payment |
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(a) | in subsection (4)(a), for “and the FSA” substitute “, the FCA and the |
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(b) | in subsection (6), for paragraph (b) (and the “and” at the end of it) |
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