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Miscellaneous amendments of FSMA 2000 |
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42 | The consumer financial education body |
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Schedule 15 contains amendments of FSMA 2000 relating to the consumer |
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financial education body. |
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43 | Members of the professions |
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Schedule 16 contains miscellaneous amendments of FSMA 2000 relating to |
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financial services provided by members of the professions. |
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44 | International obligations |
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In section 410 of FSMA 2000 (international obligations), in subsection (4), for |
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paragraphs (a) and (b) substitute— |
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(ab) | the Bank of England when exercising functions conferred on it |
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45 | Interpretation of FSMA 2000 |
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(1) | In section 417 of FSMA 2000 (definitions), in subsection (1)— |
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(a) | omit the definition of “the Authority”, |
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(b) | in the definition of “control of information rules” for “section 147(1)” |
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substitute “section 137N”, |
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(c) | after the definition of “exempt person” insert— |
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““the FCA” means the Financial Conduct Authority;”, |
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(d) | in the definition of “financial promotion rules” for “section 145” |
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substitute “section 137P”, |
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(e) | for the definition of “general rules” substitute— |
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(a) | in relation to the FCA, has the meaning given in |
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(b) | in relation to the PRA, has the meaning given in |
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(f) | omit the definition of “money laundering rules”; |
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(g) | for the definition of “Part IV permission” substitute— |
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““Part 4A permission” has the meaning given in section |
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(h) | after the definition of “partnership” insert— |
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““the PRA” means the Prudential Regulation Authority; |
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“PRA-authorised person” has the meaning given in section |
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“PRA-regulated activity” has the meaning given in section |
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(i) | in the definition of “price stabilising rules” for “section 144” substitute |
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(j) | after that definition insert— |
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““principal” in relation to an appointed representative, is |
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to be read in accordance with section 39;”, |
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(k) | in the definition of “regulating provisions” for “section “159(1)” |
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substitute “section 140A”, |
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(l) | after that definition insert— |
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““regulator” has the meaning given in section 3A(2);”, |
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(m) | omit the definitions of “regulatory objectives” and “regulatory |
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(n) | for the definition of “rule” substitute— |
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““rule” means a rule made by the FCA or the PRA under |
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(o) | in the definition of “rule-making instrument” for “section 153” |
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substitute “section 138G”, |
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(p) | for the definition of “threshold conditions” substitute— |
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““threshold conditions”, in relation to a regulated activity, |
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has the meaning given in section 55B(1);”, |
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(q) | in the definition of “UK authorised person” for “section 178(4)” |
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substitute “section 191G(1)”, and |
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(r) | in the definition of “the UK financial system” for “section 3” substitute |
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(2) | After section 421 of FSMA 2000 insert— |
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In this Act “immediate group”, in relation to a person (“A”), means— |
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(b) | a parent undertaking of A; |
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(c) | a subsidiary undertaking of A; |
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(d) | a subsidiary undertaking of a parent undertaking of A; |
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(e) | a parent undertaking of a subsidiary undertaking of A.” |
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(3) | After section 425B of FSMA 2000 insert— |
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“425C | “Qualifying EU provision” |
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(1) | In this Act “qualifying EU provision” means a provision of— |
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(a) | a directly applicable EU regulation, or |
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(b) | an EU decision for whose enforcement the United Kingdom is |
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required by an EU obligation to make provision. |
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(2) | In subsection (1)(b) “EU decision” means a decision under an EU |
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directive or EU regulation.” |
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46 | Parliamentary control of statutory instruments |
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(1) | Section 429 of FSMA 2000 (Parliamentary control of statutory instruments) is |
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(2) | In subsection (1) (orders subject to the affirmative resolution procedure)— |
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(i) | after “section” insert “1J, 3B(4), 55C,”, |
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(ii) | after “or (e),” insert “138K(6)(c), 192B(6), 204A(7), 213(1A),”, and |
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|
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(iii) | after “236(5),” insert “285(4), 380(12), 382(15), 384(13),”, and |
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(a) | after “under section” insert “3G(1), 137C(1)(b),”, |
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(b) | after “165A(2)(d)” insert “, 192A(4)”, and |
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(c) | after “which” insert “section 22B or”. |
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47 | Mutual societies: power to transfer functions |
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(1) | The Treasury may by order amend the legislation relating to mutual societies |
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for any of the relevant purposes. |
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(2) | “The legislation relating to mutual societies” means— |
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(a) | the Industrial and Provident Societies Act 1965; |
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(b) | the Industrial and Provident Societies 1967; |
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(c) | the Friendly and Industrial and Provident Societies Act 1968; |
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(d) | the Industrial and Provident Societies Act (Northern Ireland) 1969; |
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(e) | the Friendly Societies Act 1974; |
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(f) | the Credit Unions Act 1979; |
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(g) | the Credit Unions (Northern Ireland) Order 1985; |
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(h) | the Building Societies Act 1986; |
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(i) | the Friendly Societies Act 1992. |
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(3) | The relevant purposes are— |
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(a) | providing for any function of the FSA to be exercisable by that body |
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(b) | providing for any function of the FSA to be transferred to the PRA; |
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(c) | providing for any function of the FSA to be exercisable by that body |
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corporate as the FCA and also to be exercisable concurrently by the |
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(d) | providing for any function which is exercisable by the FCA or the PRA |
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(whether by virtue of a previous order under this section or otherwise) |
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to be transferred to, or to be exercisable concurrently by, the other |
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(e) | providing for any function which is exercisable by the FCA and the |
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PRA (whether by virtue of a previous order under this section or |
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otherwise) to be exercisable only by one of them; |
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(f) | making provision that appears to the Treasury to be necessary or |
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expedient in consequence of the provisions of this Act. |
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(4) | In relation to the Industrial and Provident Societies Act (Northern Ireland) |
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1969 and the Credit Unions (Northern Ireland) Order 1985, the relevant |
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(a) | providing for any function of a Northern Ireland department or the |
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Registrar of Credit Unions for Northern Ireland to be transferred to the |
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|
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FCA or the PRA, or to both the FCA and PRA to be exercised |
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(b) | providing for any function of a Northern Ireland department or the |
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Registrar of Credit Unions for Northern Ireland which relates to the |
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determination of disputes to be exercisable instead by a court. |
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48 | Further provision that may be included in orders under section 47 |
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(1) | In this section a “transfer order” means an order under section 47 making |
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provision for any of the purposes mentioned in subsection (3)(a) to (e) or (4) of |
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(2) | The additional powers conferred by section 95(2) on a person making an order |
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under this Act include power for the Treasury, when making a transfer order, |
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(a) | such consequential provision as the Treasury consider appropriate; |
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(b) | provision for the transfer of any property, rights or liabilities held, |
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enjoyed or incurred by any person in connection with transferred |
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(c) | provision for the application of the Transfer of Undertakings |
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(Protection of Employment) Regulations 2006 in connection with any |
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(d) | provision for the carrying on and completion by or under the authority |
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of the person to whom the functions are transferred of any proceedings, |
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investigations or other matters commenced, before the order takes |
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effect, by or under the authority of the person from whom the functions |
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(e) | provision amending any enactment relating to transferred functions in |
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connection with their exercise by, or under the authority of, the person |
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to whom they are transferred; |
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(f) | provision requiring either regulator to consult the other, notify the |
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other or obtain the consent of the other in connection with the exercise |
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of transferred functions; |
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(g) | provision for the substitution of the person to whom functions are |
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transferred for the person from whom they are transferred, in any |
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instrument, contract or legal proceedings made or begun before the |
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(3) | A transfer order may provide for— |
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(a) | any provision of FSMA 2000 that would not otherwise apply in relation |
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to transferred functions to apply in relation to those functions with |
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such modifications as may be specified, or |
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(b) | any provision of FSMA 2000 that would otherwise apply in relation to |
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transferred functions not to apply in relation to them or to apply with |
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such modifications as may be specified. |
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(4) | For the purposes of subsections (2) and (3), a transfer order is to be taken to |
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transfer functions to any person by whom any function becomes exercisable by |
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(5) | On or after the making of a transfer order (“the original order”) the Treasury |
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may by order make any incidental, supplemental, consequential or transitional |
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provision or provision by virtue of subsection (2) or (3) which they had power |
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to include in the original order. |
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|
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|
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(6) | The provisions of this section do not limit— |
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(a) | the powers conferred by section 98 or 99(3), or |
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(b) | the powers exercisable under Schedule 21 in connection with a transfer |
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order that transfers functions to the PRA or to the FCA and the PRA. |
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(1) | A certificate issued by the Treasury that property vested in a person |
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immediately before a transfer order takes effect has been transferred as a result |
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of the order is conclusive evidence of the transfer. |
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(2) | “Transfer order” means— |
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(a) | an order under section 47, |
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(b) | an order under section 48(5), or |
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(c) | an order under Part 21 of FSMA 2000 (mutual societies). |
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50 | Repeals in Part 21 of FSMA 2000 |
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(1) | The following provisions of Part 21 of FSMA 2000 are repealed— |
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(a) | in section 334 (the Friendly Societies Commission), subsections (1) and |
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(b) | section 335 (the Registry of Friendly Societies); |
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(c) | section 336 (the Building Societies Commission); |
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(d) | section 337 (the Building Societies Investor Protection Board); |
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(e) | section 338 (industrial and provident societies and credit unions); |
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(f) | section 339 (supplemental provisions). |
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(2) | The repeals in subsection (1) do not have the effect of revoking any order made |
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under any provision of Part 21 of FSMA 2000 before the commencement of this |
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Building societies: miscellaneous |
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51 | Building societies: creation of floating charges |
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(1) | Section 9B of the Building Societies Act 1986 (restriction on creation of floating |
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charges) is amended as follows. |
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(2) | In subsection (1), at the end insert “unless it complies with the requirements in |
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(3) | After that subsection insert— |
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“(1A) | The requirements are that the floating charge— |
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(a) | is created in favour of a participant in a system, and |
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(b) | is created for the purpose of securing any rights and obligations |
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that may arise in connection with participation in that system.” |
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(4) | After subsection (2) insert— |
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“(3) | In this section “participant” and “system” have the meaning given by |
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Article 2 of Directive 98/26/EC of the European Parliament and of the |
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Council of 19th May 1998 on settlement finality in payment and |
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|
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securities settlement systems (as amended by Directives 2009/44/EC |
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52 | Power to direct transfer of building society’s business |
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(1) | Section 42B of the Building Societies Act 1986 (power to direct transfers of |
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engagements or business) is amended as follows. |
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(a) | before the “or” at the end of paragraph (a) insert— |
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“(aa) | direct the society, within a specified period, to transfer |
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its business under section 97 to an existing or specially |
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formed company that is a subsidiary of another mutual |
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society by a transfer to which provision made by order |
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under section 3 of the 2007 Act (transfers to subsidiaries |
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of other mutuals) applies;”, and |
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(b) | in paragraph (b), for “to an existing company under section 97” |
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substitute “under section 97 to an existing company that is not a |
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subsidiary of another mutual society”. |
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(3) | After subsection (1) insert— |
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(a) | “the 2007 Act” means the Building Societies (Funding) and |
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Mutual Societies (Transfers) Act 2007; |
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(b) | “mutual society” has the same meaning as in section 3 of that |
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(a) | in paragraph (a), for “(1)(b)” substitute “(1)(aa) or (b)”, and |
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(b) | in paragraph (b), after “existing company” insert “, or to a specially |
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formed company that is a subsidiary of another mutual society,”. |
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(5) | In Schedule 8A to that Act (directions under section 42B(4)), in paragraph 9(3), |
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for “section 42B(1)(b)” substitute “section 42B(1)(aa) or (b)”. |
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53 | Interpretation of Part 3 |
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(1) | In this Part “regulator” means the FCA or the PRA. |
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(2) | In this Part a reference to a person’s functions under an enactment includes a |
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reference to the person’s functions under any other enactment as applied by |
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Collaboration between Treasury and Bank of England, FCA or PRA |
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54 | Duty of Bank to notify Treasury of possible need for public funds |
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(1) | Where it appears to the Bank of England that there is a material risk of |
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circumstances within any of the following cases arising, the Bank must |
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immediately notify the Treasury. |
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|
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|
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|
(2) | A notification under subsection (1) or section 55(2) is referred to in this Part as |
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a “public funds notification”. |
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(3) | The first case is where the Treasury or the Secretary of State might reasonably |
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be expected to regard it as appropriate to provide financial assistance to or in |
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respect of a financial institution. |
| 5 |
(4) | The second case is where— |
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(a) | the Treasury, the Bank of England, the PRA, the FCA or the Secretary |
| |
of State might reasonably be expected to regard it as appropriate to |
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exercise any of their respective powers under Parts 1 to 3 of the Banking |
| |
| 10 |
(b) | the Treasury might reasonably be expected to regard it as appropriate |
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to incur expenditure in connection with the exercise of any of those |
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powers (whether by the Treasury, the Bank, the PRA, the FCA or the |
| |
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(5) | The third case is where the scheme manager of the Financial Services |
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Compensation Scheme might reasonably be expected to request— |
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(a) | a loan from the National Loans Fund under section 223B of FSMA 2000, |
| |
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(b) | financial assistance from the Treasury, |
| |
| for the purpose of funding expenses incurred or expected to be incurred under |
| 20 |
the Financial Services Compensation Scheme. |
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(6) | A public funds notification must give a general indication of the matters giving |
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rise to the notification. |
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(7) | A public funds notification must be given or confirmed in writing. |
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55 | Duty of Bank to notify Treasury of changes |
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(1) | This section applies where a public funds notification has been given. |
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(2) | If the Bank of England is of the opinion that the risk to which the notification |
| |
relates continues but that there is a substantial change in the matters which |
| |
gave rise to the notification, the Bank must notify the Treasury. |
| |
(3) | If the Bank of England is of the opinion that the risk to which the notification |
| 30 |
relates has ceased, it must notify the Treasury. |
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(4) | Before giving a notification under subsection (3), the Bank must consult the |
| |
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(5) | A notification under subsection (3) must be given or confirmed in writing. |
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56 | Circumstances in which Treasury power of direction exercisable |
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(1) | This section makes provision about the circumstances in which the Treasury’s |
| |
power of direction under section 57 is exercisable, subject to the provisions of |
| |
| |
(2) | Where a public funds notification has been given, the power of direction is |
| |
exercisable by reference to the notification unless the notification has been |
| 40 |
superseded by a notification under section 55(3). |
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|
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