appearing to it to be best calculated to bring it to the attention of
the public.

6B If the consumer financial education body considers that it has
information that, in its opinion, would or might be of assistance to
5the FCA in advancing one or more of the FCA’s operational
objectives, it must disclose that information to the FCA.”

7 In paragraph 7 (budget) for “Authority”, in each place, substitute “FCA”.

8 In paragraph 8 (annual plan)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) 10in sub-paragraph (6), after paragraph (d) insert—

“(da) the Smaller Business Practitioner Panel;”.

9 In paragraph 9 (annual reports)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) at the end insert—

“(5) 15The Treasury may—

(a) require the consumer financial education body to
comply with any provision of the Companies Act
2006 about accounts and their audit which would
not otherwise apply to it, or

(b) 20direct that any provision of that Act about accounts
and their audit is to apply to the consumer financial
education body with such modifications as are
specified in the direction, whether or not the
provision would otherwise apply to it.

(6) 25Compliance 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.

(7) Proceedings under sub-paragraph (6) may be brought only
30by the Treasury.”

10 After paragraph 9 insert—

“Audit of accounts

9A (1) The consumer financial education body must send a copy of its
35annual accounts to the Comptroller and Auditor General and the
Treasury as soon as is reasonably practicable.

(2) The Comptroller and Auditor General must—

(a) examine, certify and report to the Treasury on accounts
received under this paragraph, and

(b) 40send a copy of the certified accounts and the report to the
Treasury.

(3) The Treasury must lay the copy of the certified accounts and the
report before Parliament.

(4) The consumer financial education body must send a copy of the
45certified accounts and the report to the FCA.

(5) Except as provided for by paragraph 9(5), the consumer financial
education body 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.

(6) 5In this paragraph “annual accounts” has the meaning given by
section 471 of the Companies Act 2006.”

11 In paragraph 11 (meaning of “relevant costs”) for “Authority” substitute
“FCA”.

12 In paragraph 12 (funding) for “Authority”, in each place, substitute “FCA”.

13 10In paragraph 13 (funding by consumer credit licensees), in sub-paragraph
(5)(a), for “Authority” substitute “FCA”.

14 In paragraph 15 (reviews of use of resources), for “Authority”, in each place,
substitute “FCA”.

15 In the title to the Schedule, in the marginal reference, for “Section 6A”
15substitute “Section 3R”.

Section 43

SCHEDULE 16 Provision of financial services by members of the professions

1 In section 325 (general duty)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) 20in the heading, for “Authority’s” substitute “FCA’s”.

2 In section 328 (directions relating to the general prohibition), for
“Authority”, in each place, substitute “FCA”.

3 In section 329 (orders relating to the general prohibition), for “Authority”, in
each place, substitute “FCA”.

4 25In section 330 (consultation)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) for subsection (10) substitute—

“(10) Cost benefit analysis” means—

(a) an analysis of the costs together with an analysis of
30the benefits that will arise—

(i) if the proposed direction is given, or

(ii) if subsection (5)(b) applies, from the direction
that has been given, and

(b) subject to subsection (10A), an estimate of those costs
35and of those benefits.

(10A) If, in the opinion of the FCA—

(a) the costs or benefits referred to in subsection (10)
cannot reasonably be estimated, or

(b) it is not reasonably practicable to produce an
40estimate,

the cost benefit analysis need not estimate them, but must
include a statement of the FCA’s opinion and an explanation
of it.”

5 In section 331 (procedure for making orders), for “Authority”, in each place,
5substitute “FCA”.

6 In section 332 (rules relating to persons to whom the general prohibition
does not apply), for “Authority”, in each place, substitute “FCA”.

Section 90

SCHEDULE 17 Amendments of Banking Act 2009 related to Part 2 of this Act

10Part 1 Amendments of Part 1 of the Act

1 Part 1 of the Banking Act 2009 is amended as follows.

2 (1) Section 1 (overview) is amended as follows.

(2) In subsection (5), for paragraph (c) and the “and” before it, substitute—

“(c) 15the Prudential Regulation Authority, and

(d) the Financial Conduct Authority.”

(3) In the Table, after the entry relating to sections 82 and 83, insert—

3 In section 2 (interpretation: “bank”), for “Part 4” substitute “Part 4A”.

4 20In section 3 (interpretation: other expressions), for the definition of “the
FSA” and the “and” following it, substitute—

• ““the PRA” means the Prudential Regulation Authority,

• “the FCA” means the Financial Conduct Authority, and”.

5 In section 4 (special resolution objectives), in subsection (3), for paragraph
25(b) and the “and” following it, substitute—

“(b) the PRA,

(ba) the FCA, and”.

6 In section 5 (code of practice), in subsection (5), for paragraph (b) and the
“and” following it, substitute—

“(b) 30the PRA,

(ba) the FCA, and”.

7 (1) Section 6 (code of practice: procedure) is amended as follows.

(2) Omit subsections (1) and (2).

(3) For subsection (4) substitute—

“(4) 35Before re-issuing the code of practice the Treasury must consult—

(a) the PRA,

(b) the FCA,

(c) the Bank of England, and

(d) the scheme manager of the Financial Services Compensation
5Scheme (established under Part 15 of the Financial Services
and Markets Act 2000).

(5) As soon as is reasonably practicable after re-issuing the code of
practice the Treasury shall lay a copy before Parliament.”

8 (1) Section 7 (general conditions) is amended as follows.

(2) 10In subsection (1), for “FSA” substitute “PRA”.

(3) In subsection (2), omit the words from “(within” to the end.

(4) In subsection (4), for “FSA” substitute “PRA”.

(5) After that subsection insert—

“(4A) The threshold conditions” means the threshold conditions, as
15defined by subsection (1) of section 55B of the Financial Services and
Markets Act 2000, for which the PRA is treated as responsible under
subsection (2) of that section.”

(6) In subsection (5)—

(a) for “FSA” substitute “PRA”, and

(b) 20at the end of paragraph (a) insert—

“(aa) the FCA,”.

9 In section 8 (specific conditions: private sector purchaser and bridge bank),
in subsection (3), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) 25the FCA, and”.

10 In section 9 (specific conditions: temporary public ownership), in subsection
(4), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

11 30In section 10 (Banking Liaison Panel), in subsection (3), for paragraph (c)
substitute—

“(c) a member appointed by the PRA,

(ca) a member appointed by the FCA,”.

12 In section 24 (procedure: instruments), in subsection (1), for paragraph (c)
35and the “and” following it, substitute—

“(c) the PRA,

(ca) the FCA, and”.

13 In section 25 (procedure: orders), in subsection (2), for paragraph (c) and the
“and” following it, substitute—

“(c) 40the PRA,

(ca) the FCA, and”.

14 In section 26 (supplemental instruments), in subsection (5), for paragraph (a)

and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

15 In section 27 (supplemental orders), in subsection (5), for paragraph (a) and
5the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

16 In section 28 (onward transfer), in subsection (6), for paragraph (a) and the
“and” following it, substitute—

“(a) 10the PRA,

(aa) the FCA, and”.

17 In section 29 (reverse share transfer), in subsection (6), for paragraph (a) and
the “and” following it, substitute—

“(a) the PRA,

(aa) 15the FCA, and”.

18 In section 30 (bridge bank: share transfers), in subsection (5), for paragraph
(a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

19 20In section 31 (bridge bank: reverse share transfer), in subsection (5), for
paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

20 In section 41 (procedure), in subsection (1), for paragraph (c) and the “and”
25following it, substitute—

“(c) the PRA,

(ca) the FCA, and”.

21 In section 42 (supplemental instruments), in subsection (5), for paragraph (a)
and the “and” following it, substitute—

“(a) 30the PRA,

(aa) the FCA, and”.

22 In section 43 (onward transfer), in subsection (7), for paragraph (a) and the
“and” following it, substitute—

“(a) the PRA,

(aa) 35the FCA, and”.

23 In section 44 (reverse property transfer), in subsection (6), for paragraph (a)
and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

24 40In section 45 (temporary public ownership: property transfer), in subsection
(8), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

25 In section 46 (temporary public ownership: reverse property transfer), in

subsection (7), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

26 In section 57 (valuation principles), in subsection (4)(a), for “Part 4”
5substitute “Part 4A”.

27 (1) Section 82 (temporary public ownership) is amended as follows.

(2) In subsection (2), for “the FSA are” substitute “the PRA is”.

(3) In subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) 10the FCA, and”.

28 After section 83 insert—

“Banks not regulated by PRA

83A Modifications of Part

(1) In the application of this Part to an FCA-regulated bank the
15modifications specified in the Table apply.

(2) In this section—

• “FCA-regulated bank” means a bank which does not carry on
  any activity which is a PRA-regulated activity for the
  purposes of the Financial Services and Markets Act 2000;

• 20“immediate group” has the meaning given by section 421ZA of
  the Financial Services and Markets Act 2000;

• “PRA-authorised person” has the meaning given by section
  2B(5) of that Act.

Part 2 Amendments of Part 2 of the Act

29 Part 2 of the Banking Act 2009 is amended as follows.

30 In section 91 (interpretation: “bank”), for “Part 4” substitute “Part 4A”.

31 10In section 93 (interpretation: other expressions), for subsection (1)
substitute—

“(1) In this Part—

(a) “the PRA” means the Prudential Regulation Authority, and

(b) “the FCA” means the Financial Conduct Authority.”

32 15In section 95 (application), in subsection (1)(b), for “FSA” substitute “PRA”.

33 In section 96 (grounds for applying), for “FSA”, in each place, substitute
“PRA”.

34 In section 97 (grounds for making), in subsection (1), for “FSA” substitute
“PRA”.

35 20In section 98 (commencement), in subsection (2), for “FSA”, in both places,
substitute “PRA”.

36 (1) Section 100 (liquidation committee) is amended as follows.

(2) For subsection (2) substitute—

“(2) The liquidation committee is to consist initially of—

(a) 25two individuals nominated by the Bank of England,

(b) one individual nominated by the PRA,

(c) one individual nominated by the FCA, and

(d) one individual nominated by the FSCS.”

(3) In subsection (6)(c), for “and the FSA” substitute “, the PRA and the FCA”.

37 30In section 101 (liquidation committee: supplemental), in subsection (7), for
“FSA” substitute “PRA, the FCA”.

38 In section 103 (general powers, duties and effect), in the Table—

(a) in the entry relating to section 147 of the Insolvency Act 1986, for
“FSA” substitute “PRA”, and

(b) 35in the entry relating to section 241 of that Act, for “FSA” substitute
“PRA”.

39 (1) Section 108 (removal by court) is amended as follows.

(2) In subsection (1)(b), for “FSA” substitute “PRA”.

(3) In subsection (2)—

(a) for “FSA” substitute “PRA”, and

(b) after “England” insert “and the FCA”.

(4) In subsection (3), for “FSA” substitute “PRA and the FCA”.

40 In section 109 (removal by creditors), in subsection (4) for “and the FSA”
5substitute “, the PRA and the FCA”.

41 In section 113 (company voluntary arrangement), in subsection (2)(b), for
sub-paragraph (i) substitute—

“(i) the PRA,

(ia) the FCA,”.

42 10In section 115 (dissolution), in subsection (2)(b), for sub-paragraph (i)
substitute—

“(i) the PRA,

(ia) the FCA,”.

43 In section 117 (bank insolvency as alternative order), in subsection (2)(a)—

(a) 15for “FSA” substitute “PRA”, and

(b) after “England” insert “and the FCA”.

44 (1) Section 120 (notice of preliminary steps) is amended as follows.

(2) For “FSA”, in each place (including the heading), substitute “PRA”.

(3) In subsection (10), in paragraph (a), after “England” insert “and the FCA”.

45 20After section 129 insert—

“129A Banks not regulated by PRA

(1) In the application of this Part to an FCA-regulated bank the
modifications specified in the Table apply.

(2) In this section—

• 25“FCA-regulated bank” means a bank which does not carry on
  any activity which is a PRA-regulated activity for the
  purposes of the Financial Services and Markets Act 2000;

• “immediate group” has the meaning given by section 421ZA of
  the Financial Services and Markets Act 2000;

• 30“PRA-authorised person” has the meaning given by section
  2B(5) of that Act.

15Part 3 Amendments of Part 3 to the Act

46 Part 3 of the Banking Act 2009 is amended as follows.

47 In section 147 (administrator’s proposals), in subsection (6), for “FSA”
substitute “PRA and a copy of it to the FCA”.

48 20In section 153 (successful rescue), in subsection (3), for “FSA” substitute
“PRA and the FCA”.

49 In section 157 (other processes), in subsection (1), for “Before exercising an
insolvency power in respect of a residual bank the FSA” substitute “Before
the PRA or the FCA exercises an insolvency power in respect of a residual
25bank, whichever of them is exercising the power”.

50 After section 157 insert—

“157A Banks not regulated by PRA

(1) In the application of this Part to an FCA-regulated bank the
modifications specified in the Table apply.

(2) 30In this section “FCA-regulated bank” means a bank which does not
carry on any activity which is a PRA-regulated activity for the
purposes of the Financial Services and Markets Act 2000.

51 In section 166 (interpretation: general), for subsection (2) substitute—

“(2) 5In this Part—

• “the FCA” means the Financial Conduct Authority, and

• “the PRA” means the Prudential Regulation Authority.”

Part 4 Amendments of Parts 4 to 6 of the Act

52 10Parts 4 to 6 of the Banking Act 2009 are amended as follows.

53 (1) Section 183 (interpretation of Part 5) is amended as follows.

(2) In paragraph (c)—

(a) for “section 3(2)” substitute “section 1I”, and

(b) omit “(market confidence)”.

(3) 15For paragraph (e), and the “and” before it, substitute—

“(e) the FCA” means the Financial Conduct Authority,

(f) “Part 4A permission” has the meaning given by section 55A
of the Financial Services and Markets Act 2000,

(g) “the PRA” means the Prudential Regulation Authority,

(h) 20“PRA-regulated activity” has the meaning given by section
22A of the Financial Services and Markets Act 2000, and

(i) “recognised investment exchange” has the meaning given by
section 285 of that Act.”

54 In section 223 (termination of right to issue), in subsections (5) and (6), for
25“Part 4” substitute “Part 4A”.

55 (1) Section 232 (definition) is amended as follows.

(2) In subsections (2) and (6)(a), for “Part 4” substitute “Part 4A”.

(3) In subsection (5B), in the definition of “rules”, for “section 139(1)” substitute
“section 137B(1)”.

(4) 30After subsection (6) insert—

“(7) The Treasury may by order amend the definition of “investment
activity” in subsection (5B), including by defining that term by
reference to rules or guidance made by the PRA or the FCA under the
Financial Services and Markets Act 2000.”

56 35In section 234 (regulations: details), for subsection (8)(b) substitute—

“(b) the Prudential Regulation Authority,

(ba) the Financial Conduct Authority,”.

57 In section 235 (regulations: procedure), at the end insert—

“(6) An order under section 232(7)—

(a) is to be made by statutory instrument, and

(b) is subject to annulment in pursuance of a resolution of either
House of Parliament.”

58 In section 246 (information), in subsection (2)—

(a) 5for paragraph (b) substitute—

“(b) the Prudential Regulation Authority;

(ba) the Financial Conduct Authority;”, and

(b) in paragraph (d), for “or the Financial Services Authority” substitute,
“the Prudential Regulation Authority or the Financial Conduct
10Authority”.

59 (1) Section 249 (functions) is amended as follows.

(2) In subsection (1)—

(a) for “Financial Services Authority” substitute “Prudential Regulation
Authority or the Financial Conduct Authority”, and

(b) 15for “the Authority” substitute “that authority”.

(3) In subsection (2), for “Financial Services Authority” substitute “Prudential
Regulation Authority or the Financial Conduct Authority”.

(4) Omit subsection (3).

60 In section 250 (information), for “Financial Services Authority” substitute
20“Prudential Regulation Authority.”

61 (1) Section 259 (statutory instruments) is amended as follows.

(2) In the entry in the Table relating to section 232, for “232” substitute “232(6)”.

(3) After that entry insert—

(4) In the entry in the Table relating to section 249, for “FSA—” substitute “PRA
or FCA—”.

62 In the Table in section 261 (index of defined terms)—

(a) after the entry relating to “enactment” insert—

(b) omit the entry relating to the FSA, and

(c) after the entry relating to “partial property transfer” insert—

Section 94

SCHEDULE 18 35Further minor and consequential amendments

Part 1 Amendments of FSMA 2000

1 FSMA 2000 is amended as follows.

2 (1) Section 33 (withdrawal of authorisation) is amended as follows.

(2) 40In subsection (1)(a), for “Part IV permission” substitute “Part 4A
permission”.

(3) In subsection (2), for “Authority” substitute “appropriate regulator”.

(4) After that subsection insert—

“(2A) In subsection (2) “the appropriate regulator” means—

(a) 45in the case of a PRA-authorised person, the PRA, and

(b) in any other case, the FCA.”

(5) In the heading, omit “by the Authority”.

3 (1) Section 36 (persons authorised as a result of being concerned in collective
investment schemes) is amended as follows.

(2) 50In subsection (1), for “Authority” substitute “FCA”.

(3) In subsection (2), for “Part IV permission” substitute “Part 4A permission”.

4 In section 38 (exemption orders), in subsection (2), for “Part IV permission”
substitute “Part 4A permission”.

5 (1) Section 39 (exemption of appointed representatives) is amended as follows.

(2) 55In subsection (1B), for “Authority”, in each place, substitute “FCA”.

(3) For subsection (4) substitute—

“(4) In determining whether an authorised person has complied with—

(a) a provision contained in or made under this Act, or

(b) a qualifying EU provision that is specified, or of a description
60specified, for the purposes of this subsection by the Treasury
by order,

anything which a relevant person has done or omitted as respects
business for which the authorised person has accepted responsibility
is to be treated as having been done or omitted by the authorised
65person.”

6 In section 39A (tied agents operating outside the United Kingdom), for
“Authority”, in each place, substitute “FCA”.

7 In section 97(1)(d) (contravention of Part 6 rules: appointment of persons to
carry out investigations), for “83, 85, 87G or 98” substitute “85 or 87G”.

8 (1) 70In each of the provisions of Part 17 (collective investment schemes)
mentioned in sub-paragraph (2), for “Authority”, or “Authority’s”, in each
place, substitute “FCA” or “FCA’s”.

(2) Those provisions are—

(a) sections 237 to 239;

(b) sections 242 to 252A;

(c) sections 254 to 262 (including the heading to section 259);

(d) 5section 264;

(e) section 266;

(f) sections 271 to 283B.

9 (1) Section 250 (modification or waiver of rules) is amended as follows.

(2) In subsection (4)—

(a) 10for “Subsections (3) to (9) and (11) of section 148” substitute “Section
138A and subsections (1) to (3), (5) and (6) of section 138B”,

(b) for “section 148(2)” substitute “section 138A(1)”, and

(c) in paragraph (c), for “subsection (7)(b)” substitute “section
138B(3)(c)”.

(3) 15In subsection (5)—

(a) for “Subsections (3) to (9) and (11) of section 148” substitute “Section
138A and subsections (1) to (3), (5) and (6) of section 138B”,

(b) for “section 148(2)” substitute “section 138A(1)”,

(c) in paragraph (a), for “subsection (4)(a)” substitute “subsection (4)(a)
20of section 138A,

(d) in paragraph (b), for subsection (7)(b) and (11)” substitute “section
138B(3)(c) and the definition of “immediate group” in section 421ZA
as it applies to that section”,

(e) in paragraph (c), for “subsection (7)(b)” substitute “section
25138B(3)(c)”,

(f) in paragraph (d), for “subsection (8)” substitute “section 138B(5)”,
and

(g) in paragraph (e), for “subsection (9)” substitute “section 138A(7)”.

10 In section 257 (directions), in subsection (5), for “section 150” substitute
30“section 138D”.

11 In section 267 (power to suspend promotion of scheme)—

(a) in subsections (1), (2), (4) (in both places) and (5) (in both places), for
“Authority” substitute “FCA”, and

(b) in the heading for “Authority” substitute “FCA”.

12 35In section 268 (section 267: procedure)—

(a) in subsection (2), for “Authority” substitute “FCA”;

(b) in subsection (3), for “the Authority” substitute “the FCA”,

(c) in subsection (4)(c), for “Authority’s” substitute “FCA’s”,

(d) in subsections (4)(d), (5) and (6) for “Authority” substitute “FCA”,

(e) 40in subsection (7), for “The Authority” substitute “The FCA”,

(f) in subsection (8), for “Authority” substitute “FCA”,

(g) in subsection (9), for “The Authority” substitute “The FCA”, and

(h) in subsection (13), for “Authority’s” substitute “FCA’s”.

(13) In section 269 (procedure: application for variation or revocation of direction)—

(a) in subsections (1), (2), (4) and (5), for “Authority” substitute “FCA”,
and