|
| |
|
Power of Bank to require FCA or PRA to provide information |
| |
9V | Directions requiring information or documents |
| |
(1) | The Bank may exercise the powers conferred by this section where it |
| |
considers that information or documents are reasonably required in |
| |
connection with the exercise by the Bank of its functions in pursuance |
| 5 |
of the Financial Stability Objective. |
| |
(2) | The Bank may give a direction to the FCA or the PRA (“the regulator”) |
| |
| |
(a) | to provide the Bank with specified information or information |
| |
of a specified description, or |
| 10 |
(b) | to produce to the Bank specified documents or documents of a |
| |
| |
(3) | The direction may relate to information or documents which are held |
| |
by persons other than the regulator and which the regulator has power |
| |
to obtain or whose production the regulator has power to require. |
| 15 |
(4) | Any information or documents to which the direction relates are— |
| |
(a) | where the information or documents are held by a person in |
| |
relation to whom the powers conferred by subsections (1) and |
| |
(3) of section 165 of FSMA 2000 are exercisable, to be taken to be |
| |
information or documents to which that section applies by |
| 20 |
virtue of subsection (4) of that section, and |
| |
(b) | where they are held by a person to whom section 165A of FSMA |
| |
2000 applies and the direction is given to the PRA, to be taken |
| |
to be information or documents to which that section applies by |
| |
virtue of subsection (3) of that section. |
| 25 |
(5) | The information or documents must be provided or produced before |
| |
the end of such period as may be specified. |
| |
(6) | The Bank may require any information provided under this section to |
| |
be provided in such form as it may require. |
| |
(7) | The Bank may require— |
| 30 |
(a) | any information provided, whether in a document or otherwise, |
| |
to be verified in such manner as it may require; |
| |
(b) | any document produced to be authenticated in such manner as |
| |
| |
9W | Further provisions about directions under section 9V |
| 35 |
(1) | In the exercise of its functions under section 9V, the Bank must have |
| |
regard to 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. |
| 40 |
(2) | Before giving a direction under section 9V to the FCA or the PRA (“the |
| |
regulator”), the Bank must consult the regulator. |
| |
(3) | A direction under section 9V must be in writing, and may be revoked |
| |
| |
|
| |
|
| |
|
(4) | As soon as practicable after giving a direction under section 9V, the |
| |
Bank must publish the direction in such manner as it thinks appropriate |
| |
for bringing the direction to the attention of persons (other than the |
| |
regulator to which it is given) who may be affected by it. |
| |
(5) | Subsection (4) does not require the publication of information whose |
| 5 |
publication at the time required by that subsection would in the |
| |
opinion of the Bank be against the public interest. |
| |
(6) | Where the Bank decides under subsection (5) that publication of any |
| |
information would be against the public interest, it must from time to |
| |
time review that decision and if it subsequently decides that |
| 10 |
publication is no longer against the public interest it must comply with |
| |
| |
| |
9X | Interpretation of Part 1A |
| |
| 15 |
“the FCA” means the Financial Conduct Authority; |
| |
“financial assistance” has the meaning given by section 257(1) of |
| |
| |
“the Financial Policy Committee” means the Financial Policy |
| |
Committee of the Bank of England; |
| 20 |
“the financial sector” means financial institutions generally; |
| |
“FSMA 2000” means the Financial Services and Markets Act 2000; |
| |
“the PRA” means the Prudential Regulation Authority; |
| |
“systemic risk” has the meaning given by section 9C(5); |
| |
“the UK economy” means the economy of the United Kingdom; |
| 25 |
“the UK financial system” means the financial system of the |
| |
| |
(2) | After Schedule 2 to the Bank of England Act 1998 insert as Schedule 2A the |
| |
Schedule set out in Part 1 of Schedule 1 to this Act. |
| |
(3) | The further amendments relating to the Financial Policy Committee in Part 2 |
| 30 |
of Schedule 1 have effect. |
| |
(4) | Sections 2B and 2C of the Bank of England Act 1998 (which relate to the |
| |
establishment and procedure of the Financial Stability Committee) are |
| |
| |
4 | Further amendments relating to Bank of England |
| 35 |
Schedule 2 contains further amendments relating to the Bank of England. |
| |
|
| |
|
| |
|
| |
Amendments of Financial Services and Markets Act 2000 |
| |
Financial Conduct Authority and Prudential Regulation Authority |
| |
| |
(1) | For sections 1 to 18 of the Financial Services and Markets Act 2000 (in this Act |
| 5 |
referred to as “FSMA 2000”) substitute— |
| |
| |
| |
| |
The Financial Conduct Authority |
| 10 |
The Financial Conduct Authority |
| |
1A | The Financial Conduct Authority |
| |
(1) | The body corporate previously known as the Financial Services |
| |
Authority is renamed as the Financial Conduct Authority. |
| |
(2) | The Financial Conduct Authority is in this Act referred to as “the FCA”. |
| 15 |
(3) | The FCA is to have the functions conferred on it by or under this Act. |
| |
(4) | The FCA must comply with the requirements as to its constitution set |
| |
| |
(5) | Schedule 1ZA also makes provision about the status of the FCA and the |
| |
exercise of certain of its functions. |
| 20 |
(6) | References in this Act or any other enactment to functions conferred on |
| |
the FCA by or under this Act include references to functions conferred |
| |
| |
(a) | the Insolvency Act 1986, |
| |
(b) | the Banking Act 2009, or |
| 25 |
(c) | the Financial Services Act 2012. |
| |
| |
1B | The FCA’s general duties |
| |
(1) | In discharging its general functions the FCA must, so far as is |
| |
reasonably possible, act in a way which— |
| 30 |
(a) | is compatible with its strategic objective, and |
| |
(b) | advances one or more of its operational objectives. |
| |
(2) | The FCA’s strategic objective is: ensuring that the relevant markets (see |
| |
section 1F) function well. |
| |
(3) | The FCA’s operational objectives are— |
| 35 |
|
| |
|
| |
|
(a) | the consumer protection objective (see section 1C); |
| |
(b) | the integrity objective (see section 1D); |
| |
(c) | the competition objective (see section 1E). |
| |
(4) | The FCA must, so far as is compatible with acting in a way which |
| |
advances the consumer protection objective or the integrity objective, |
| 5 |
discharge its general functions in a way which promotes effective |
| |
competition in the interests of consumers. |
| |
(5) | In discharging its general functions the FCA must have regard to— |
| |
(a) | the regulatory principles in section 3B, and |
| |
(b) | the importance of taking action intended to minimise the extent |
| 10 |
to which it is possible for a business carried on— |
| |
(i) | by an authorised person or a recognised investment |
| |
| |
(ii) | in contravention of the general prohibition, |
| |
| to be used for a purpose connected with financial crime. |
| 15 |
(6) | For the purposes of this Chapter, the FCA’s general functions are— |
| |
(a) | its function of making rules under this Act (considered as a |
| |
| |
(b) | its function of preparing and issuing codes under this Act |
| |
| 20 |
(c) | its functions in relation to the giving of general guidance under |
| |
this Act (considered as a whole), and |
| |
(d) | its function of determining the general policy and principles by |
| |
reference to which it performs particular functions under this |
| |
| 25 |
(7) | Except to the extent that an order under section 47 of the Financial |
| |
Services Act 2012 (orders relating to mutual societies functions) so |
| |
provides, the FCA’s general functions do not include functions that are |
| |
transferred functions within the meaning of section 48 of that Act. |
| |
(8) | “General guidance” has the meaning given in section 139B(5). |
| 30 |
1C | The consumer protection objective |
| |
(1) | The consumer protection objective is: securing an appropriate degree of |
| |
protection for consumers. |
| |
(2) | In considering what degree of protection for consumers may be |
| |
appropriate, the FCA must have regard to— |
| 35 |
(a) | the differing degrees of risk involved in different kinds of |
| |
investment or other transaction; |
| |
(b) | the differing degrees of experience and expertise that different |
| |
| |
(c) | the needs that consumers may have for the timely provision of |
| 40 |
information and advice that is accurate and fit for purpose; |
| |
(d) | the general principle that consumers should take responsibility |
| |
| |
(e) | the general principle that those providing regulated financial |
| |
services should be expected to provide consumers with a level |
| 45 |
of care that is appropriate having regard to the degree of risk |
| |
|
| |
|
| |
|
involved in relation to the investment or other transaction and |
| |
the capabilities of the consumers in question; |
| |
(f) | any information which the consumer financial education body |
| |
has provided to the FCA in the exercise of the consumer |
| |
financial education function; |
| 5 |
(g) | any information which the scheme operator of the ombudsman |
| |
scheme has provided to the FCA pursuant to section 232A. |
| |
1D | The integrity objective |
| |
(1) | The integrity objective is: protecting and enhancing the integrity of the |
| |
| 10 |
(2) | The “integrity” of the UK financial system includes— |
| |
(a) | its soundness, stability and resilience, |
| |
(b) | its not being used for a purpose connected with financial crime, |
| |
(c) | its not being affected by behaviour that amounts to market |
| |
| 15 |
(d) | the orderly operation of the financial markets, and |
| |
(e) | the transparency of the price formation process in those |
| |
| |
1E | The competition objective |
| |
(1) | The competition objective is: promoting effective competition in the |
| 20 |
interests of consumers in the markets for— |
| |
(a) | regulated financial services, or |
| |
(b) | services provided by a recognised investment exchange in |
| |
carrying on regulated activities in respect of which it is by virtue |
| |
of section 285(2) exempt from the general prohibition. |
| 25 |
(2) | The matters to which the FCA may have regard in considering the |
| |
effectiveness of competition in the market for any services mentioned |
| |
in subsection (1) include— |
| |
(a) | the needs of different consumers who use or may use those |
| |
services, including their need for information that enables them |
| 30 |
to make informed choices, |
| |
(b) | the ease with which consumers who obtain those services can |
| |
change the person from whom they obtain them, |
| |
(c) | the ease with which new entrants can enter the market, and |
| |
(d) | how far competition is encouraging innovation. |
| 35 |
Interpretation of terms used in relation to FCA’s general duties |
| |
1F | Meaning of “relevant markets” in strategic objective |
| |
In section 1B(2) “the relevant markets” means— |
| |
(a) | the financial markets, |
| |
(b) | the markets for regulated financial services (see section 1H(2)), |
| 40 |
| |
(c) | the markets for services that are provided by persons other than |
| |
authorised persons in carrying on regulated activities but are |
| |
provided without contravening the general prohibition. |
| |
|
| |
|