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Performance of regulated activities |
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1 | Part 5 of FSMA 2000 is amended as follows. |
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2 (1) | Section 58 (applications relating to prohibition orders: procedure and right |
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to refer to Tribunal) is amended as follows. |
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(2) | In subsections (2) to (5), for “Authority” substitute “appropriate regulator”. |
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(3) | After subsection (5) insert— |
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“(6) | “The appropriate regulator” means the regulator to which the |
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3 | In section 59 (approval for particular arrangements), omit subsection (9). |
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4 (1) | Section 60 (applications for approval), for “Authority” or “Authority’s”, in |
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each place, substitute “appropriate regulator” or “appropriate regulator’s”. |
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(2) | For subsection (3) substitute— |
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“(3) | At any time after the application is received and before it is |
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determined, the appropriate regulator may require the applicant to |
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provide it with such further information as it reasonably considers |
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necessary to enable it to determine the application or, as the case |
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requires, to decide whether to give consent.” |
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(3) | In subsection (6), for “Part IV” substitute “Part 4A”. |
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(4) | After subsection (6) insert— |
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“(7) | The PRA must consult the FCA before— |
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(a) | giving a direction under subsection (2)(a) in relation to a class |
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(b) | imposing a requirement under subsection (2)(b) on a class of |
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(8) | The PRA must as soon as practicable notify the FCA of the receipt or |
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withdrawal of an application to the PRA, unless the case is one in |
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which by virtue of arrangements under section 59B the consent of the |
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(9) | “The appropriate regulator”— |
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(a) | in relation to a controlled function which is of a description |
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specified in rules made by the FCA, means the FCA; |
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(b) | in relation to a controlled function which is of a description |
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specified in rules made by the PRA, means the PRA, and for |
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the purposes of subsection (3) also includes the FCA in cases |
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where the consent of the FCA is required.” |
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5 (1) | Section 61 (determination of applications) is amended as follows. |
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(2) | In subsection (1), for “The Authority may grant an application made under |
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section 60” substitute “The regulator to which an application is made under |
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section 60 may grant the application”. |
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(a) | for “the Authority” substitute “the regulator”, and |
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(b) | after “general rules” insert “made by that regulator”. |
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(4) | After subsection (2) insert— |
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“(2A) | Subsections (1) and (2) apply in relation to the giving by the FCA of |
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any required consent as they apply in relation to the grant of the |
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(5) | In subsection (3), for the words from the beginning to “determine” substitute |
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“The regulator to which an application is made under section 60 must, |
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before the end of the period for consideration, determine”. |
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(6) | After subsection (3) insert— |
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“(3A) | “The period for consideration”— |
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(a) | in any case where the application under section 60 is made by |
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a person applying for permission under Part 4A (see section |
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60(6)), means whichever ends last of— |
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(i) | the period within which the application for that |
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permission must be determined under section 55V(1) |
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(ii) | the period of 3 months beginning with the date on |
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which the regulator receives the application under |
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(b) | in any other case, means the period of 3 months beginning |
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with the date on which the regulator receives the application |
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(7) | In subsection (4), for “the Authority”, in each place, substitute “a regulator”. |
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(a) | for “Authority”, in the first place, substitute “regulator to which the |
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application was made”, and |
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(b) | for “Authority”, in the second place, substitute “regulator”. |
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6 (1) | Section 62 (applications for approval: procedure and right to refer to |
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Tribunal) is amended as follows. |
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(2) | In subsection (1), for the words from “If” to “, it” substitute “If the regulator |
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to which an application is made under section 60 (“an application”) decides |
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to grant the application, it”. |
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(3) | In subsections (2) to (4)— |
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(a) | for “the Authority” substitute “the regulator to which an application |
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(b) | for “an application” substitute “the application”. |
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7 (1) | Section 63 (withdrawal of approval) is amended as follows. |
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(a) | for “its approval, the Authority may take into account any matter |
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which it could take into account if it were” substitute “an approval, |
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the FCA or the PRA may take into account any matter which could |
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be taken into account in”, and |
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(b) | at the end insert “(on the assumption, if it is not the case, that the |
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application was one falling to be considered by it)”. |
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(3) | In subsections (3) to (5)— |
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(a) | for “the Authority” substitute “a regulator”, and |
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(b) | for “its approval” substitute “an approval”. |
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8 | In section 63A (performance of controlled functions without approval: |
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power to impose penalties), for “Authority”, in each place, substitute |
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9 | In section 63B (procedure and right to refer to Tribunal), for “the Authority”, |
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in each place, substitute “a regulator”. |
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10 (1) | Section 63C (statement of policy) is amended as follows. |
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(2) | In subsection (1), for “The Authority” substitute “Each regulator”. |
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(3) | In subsections (2) and (3), for “The Authority’s” substitute “Each |
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(4) | In subsection (4), for “the Authority” substitute “the regulator that has |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “issued” insert “by it”. |
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(6) | In subsection (6), for “replaced, the Authority” substitute “replaced by a |
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regulator, the regulator”. |
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(7) | In subsection (7), for “The Authority” substitute “A regulator”. |
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(a) | after “section” insert “by a regulator”, and |
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(b) | for “Authority”, in both places, substitute “regulator”. |
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(9) | In subsection (9), for “Authority” substitute “regulator”. |
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(a) | for “the Authority” substitute “a regulator”, and |
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(b) | after “published” insert “by it”. |
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11 (1) | Section 63D (statement of policy: procedure) is amended as follows. |
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(a) | for “issuing” substitute “a regulator issues”, and |
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(b) | for “Authority”, in both places, substitute “regulator”. |
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(3) | In subsections (2), (3), (4) and (5) (in both places), for “Authority” substitute |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “published” insert “by it”. |
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12 (1) | Section 64 (conduct of approved persons: statement and codes) is amended |
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(a) | for “the Authority” substitute “a regulator”, and |
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(b) | after “subsection (1)” insert “or (1A)”. |
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(3) | In subsection (3)(a) to (c), for “Authority” substitute “regulator issuing the |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “issued” insert “by it”. |
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(a) | after “replaced” insert “by a regulator”, and |
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(b) | for “Authority” substitute “regulator”. |
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(a) | for “the Authority”, in the first place, substitute “the regulator that |
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(b) | for “the Authority”, in the second place, substitute “that regulator”. |
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(7) | In subsection (10), for “The Authority” substitute “A regulator”. |
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(8) | In subsection (11), for paragraph (b) substitute— |
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“(b) | is to be treated for the purposes of section 1B(6)(a) as part of |
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the FCA’s rule-making functions (where the power is |
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exercisable by the FCA) and is to be treated for the purposes |
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of section 2I(1)(a) as part of the PRA’s rule-making functions |
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(where the power is exercisable by the PRA).” |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “published” insert “by it”. |
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(10) | For subsection (13) substitute— |
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“(13) | Any expression which is used both in this section and section 59 has |
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the same meaning in this section as in that section.” |
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13 (1) | Section 65 (statements and codes: procedure) is amended as follows. |
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(2) | For subsection (1) substitute— |
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“(1) | Before a regulator issues a statement or code under section 64, it |
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(a) | consult the other regulator; and |
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(b) | after doing so, publish a draft of the statement or code in the |
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way appearing to it to be best calculated to bring the |
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statement or code to the attention of the public. |
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(1A) | The duty of the FCA to consult the PRA under subsection (1)(a) |
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applies only in so far as the statement or code applies to persons in |
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relation to whom approval is given under section 59 in respect of the |
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performance by them of significant-influence functions (within the |
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meaning of that section) in relation to the carrying on by PRA- |
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authorised persons of regulated activities.” |
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(3) | In subsection (2)(b), for “the Authority” substitute “the regulator publishing |
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(a) | for “issuing” substitute “a regulator issues”, and |
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(b) | for “the Authority” substitute “it”. |
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(5) | In subsection (4), for “the Authority” substitute “a regulator”. |
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(a) | for “the Authority”, in the first place, substitute “the regulator |
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issuing the statement or code”, and |
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(b) | for “the Authority”, in the second place, substitute “the regulator”. |
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(7) | In subsection (6), for “the Authority” substitute “the regulator concerned”. |
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(8) | For subsection (7) substitute— |
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“(7) | Subsections (1)(b) and (2) to (6) do not apply in relation to— |
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(a) | a statement or code issued by the FCA if it considers that the |
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delay involved in complying with them would be prejudicial |
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to the interests of consumers, as defined in section 425A; or |
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(b) | a statement or code issued by the PRA if it considers that the |
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delay involved in complying with them would— |
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(i) | be prejudicial to the safety and soundness of PRA- |
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(ii) | in a case where section 2C applies, be prejudicial to |
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securing the appropriate degree of protection for |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “published” insert “by it”. |
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(10) | For subsection (11) substitute— |
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“(11) | “Cost benefit analysis” means— |
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(a) | an analysis of the costs together with an analysis of the |
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benefits that will arise— |
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(i) | if the proposed statement or code is issued, or |
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(ii) | if subsection (5)(b) applies, from the statement or |
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code that has been issued, and |
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(b) | subject to subsection (11A), an estimate of those costs and of |
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(11A) | If, in the opinion of the regulator concerned— |
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(a) | the costs or benefits referred to in subsection (11) cannot |
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reasonably be estimated, or |
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(b) | it is not reasonably practicable to produce an estimate, |
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| the cost benefit analysis need not estimate them, but must include a |
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statement of the opinion of the regulator concerned and an |
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14 (1) | Section 66 (disciplinary powers) is amended as follows. |
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(a) | in the opening words— |
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(i) | for “The Authority” substitute “A regulator”, and |
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(ii) | after “this section” insert “(whether or not it has given its |
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approval in relation to the person)”, and |
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(b) | in paragraphs (a) and (b), for “ Authority” substitute “ regulator”. |
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(3) | For subsection (2) substitute— |
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“(2) | For the purposes of action by the FCA, a person is guilty of |
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misconduct if, while an approved person— |
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(a) | the person has failed to comply with a statement of principle |
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issued by the FCA under section 64, or |
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(b) | the person has been knowingly concerned in a contravention |
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by the relevant authorised person of a requirement imposed |
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on that authorised person— |
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(i) | by or under this Act, or |
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(ii) | by any qualifying EU provision specified, or of a |
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description specified, for the purposes of this |
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subsection by the Treasury by order. |
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(2A) | For the purposes of action by the PRA, a person is guilty of |
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misconduct if, while an approved person in respect of the |
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performance of a significant-influence function in relation to the |
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carrying on by a PRA-authorised person of a regulated activity— |
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(a) | the person has failed to comply with a statement of principle |
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issued by the PRA under section 64, or |
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(b) | the person has been knowingly concerned in a contravention |
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by the relevant authorised person of a requirement imposed |
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on that authorised person— |
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(i) | by or under this Act, or |
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(ii) | by any qualifying EU provision specified, or of a |
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description specified, for the purposes of this |
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subsection by the Treasury by order.” |
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(4) | In subsection (3), for “ Authority” substitute “regulator”. |
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(5) | In subsection (3D), for “The Authority” substitute “The regulator taking |
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action under this section”. |
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(a) | for “The Authority”, in the first place, substitute “A regulator”, and |
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(b) | for “the Authority”, in the second place, substitute “the regulator”. |
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(7) | In subsection (5)(a), for “the Authority” substitute “a regulator”. |
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(8) | For subsection (6) substitute— |
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“(6) | “Approved person” means a person in relation to whom an approval |
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is given under that section.” |
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15 (1) | Section 67 (disciplinary measures: procedure and right to refer to Tribunal) |
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(2) | In subsections (1) and (4), for “the Authority” substitute “a regulator”. |
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(a) | for “the Authority”, in the first place, substitute “a regulator”, and |
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(b) | for “the Authority”, in the second place, substitute “the regulator”. |
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(a) | for “an approved person (“A”),” substitute “a person (“A”) in relation |
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to whom approval has been given,”, and |
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(b) | omit the second sentence. |
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16 | In section 68 (publication), for “the Authority” substitute “the regulator |
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17 (1) | Section 69 (statement of policy) is amended as follows. |
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(2) | In subsection (1), for “The Authority must” substitute “Each regulator must”. |
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(3) | In subsection (2), for “The Authority’s” substitute “A regulator’s”. |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “issued” insert “by it”. |
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(5) | In subsection (4), for “replaced, the Authority” substitute “replaced by a |
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regulator, the regulator”. |
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(6) | In subsection (5), for “The Authority” substitute “A regulator”. |
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(a) | after “section” insert “by a regulator”, and |
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(b) | for “the Authority”, in both places, substitute “the regulator”. |
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(8) | In subsection (7), for “Authority” substitute “regulator”. |
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(a) | for “the Authority” substitute “a regulator”, and |
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(b) | after “published” insert “by it”. |
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18 (1) | Section 70 (statements of policy: procedure) is amended as follows. |
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(a) | for “issuing” substitute “a regulator issues”, and |
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(b) | for “Authority”, in both places, substitute “regulator”. |
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(3) | In subsections (2), (3), (4) and (5) (in both places), for “Authority” substitute |
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(a) | for “The Authority” substitute “A regulator”, and |
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(b) | after “published” insert “by it”. |
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Control of business transfers |
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1 | Part 7 of FSMA 2000 is amended as follows. |
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2 | Before section 104 insert— |
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“103A | Meaning of “the appropriate regulator” |
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(1) | In this Part “the appropriate regulator” means— |
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(a) | in relation to a scheme in respect of which the authorised |
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person concerned is a PRA-authorised person, the PRA; |
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(b) | in any other case, the FCA. |
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(2) | In this Part, “the authorised person concerned”— |
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