Financial Services Bill

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Financial Services Bill

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 1 — Amendments of FSMA 2000
284

5     (1)
Section 39 (exemption of appointed representatives) is amended as follows.
      (2)
In 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
5
(b)
a qualifying EU provision that is specified, or of a description
specified, 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
10
is to be treated as having been done or omitted by the authorised
person.”
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
15
carry out investigations), for “83, 85, 87G or 98” substitute “85 or 87G”.
8     (1)
In 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—
20
(a)
sections 237 to 239;
(b)
sections 242 to 252A;
(c)
sections 254 to 262 (including the heading to section 259);
(d)
section 264;
(e)
section 266;
25
(f)
sections 271 to 283B.
9     (1)
Section 249 (disqualification of auditor for breach of trust scheme rules) is
amended as follows.
      (2)
In subsection (1) for the words from “it may” to the end substitute “it may
do one or more of the following—
30
(a)
disqualify the auditor from being the auditor of any
authorised unit trust scheme or authorised open-ended
investment company;
(b)
publish a statement to the effect that it appears to the FCA
that the auditor has failed to comply with the duty;
35
(c)
impose on the auditor a penalty, payable to the FCA, of such
amount as the FCA considers appropriate.”
      (3)
For subsection (2) substitute—
“(2)
Sections 345B to 345E have effect in relation to the taking of action
under subsection (1) as they have effect in relation to the taking of
40
action under section 345(2).”
      (4)
For the heading substitute “Disciplinary measures”.
10    (1)
Section 250 (modification or waiver of rules) is amended as follows.
      (2)
In subsection (4)—

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 1 — Amendments of FSMA 2000
285

(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)”, and
(c)
in paragraph (c), for “subsection (7)(b)” substitute “section
138B(3)(c)”.
5
      (3)
In 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)
10
of 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
15
138B(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)”.
11
In section 257 (directions), in subsection (5), for “section 150” substitute
20
“section 138D”.
12
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”.
25
13
In 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”,
30
(e)
in 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”,
(h)
in subsection (13), for “Authority’s” substitute “FCA’s”, and
(i)
in the heading, for “Authority’s” substitute “FCA’s”.
35
14
In section 269 (procedure: application for variation or revocation of
direction)—
(a)
in subsections (1), (2), (4) and (5), for “Authority” substitute “FCA”,
and
(b)
in subsection (6), for “The Authority” substitute “The FCA”.
40
15
In section 270 (schemes authorised in designated countries or territories)—
(a)
in subsection (1), in each place, for “Authority” substitute “FCA”,
(b)
in subsections (2)(b) and (5) (in both places), for “the Authority”
substitute “the FCA”, and
(c)
in subsection (6), for “Authority” substitute “FCA”.
45

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 1 — Amendments of FSMA 2000
286

16
In section 284 (power to investigate), in subsection (11), for “the Authority”
substitute “the FCA”.
17
In section 404 (consumer redress scheme), for “Authority”, in each place,
substitute “FCA”.
18
In section 404A (supplementary provision relating to rules under section
5
404), for “Authority” or “Authority’s”, in each place, substitute “FCA” or
“FCA’s”.
19    (1)
Section 404F (definitions etc.) is amended as follows.
      (2)
For “Authority”, in each place, substitute “FCA”.
      (3)
In subsection (8), for paragraph (a) substitute—
10
“(a)
the variation under section 55H or 55J of a Part 4A
permission,
(aa)
the imposition or variation of a requirement under section
55L, or”.
20    (1)
Section 405 (directions) is amended as follows.
15
      (2)
In subsection (1)—
(a)
for “Authority” substitute “appropriate regulator”, and
(b)
in paragraph (a), for “Part IV” substitute “Part 4A”.
      (3)
After subsection (4) insert—
“(4A)
In this section “the appropriate regulator” is the regulator to which
20
the application for permission under Part 4A is made.”
21    (1)
Section 407 (consequences of a direction under section 405) is amended as
follows.
      (2)
For “Authority”, in each place, substitute “appropriate regulator”.
      (3)
In subsection (1), in paragraph (a), for “subsections (7) to (9) of section 52 do”
25
substitute “section 55X does”.
      (4)
In subsection (2), in paragraph (a), for “section 52(1) and (2)” substitute
“subsections (1) to (3) of section 55V”.
      (5)
After subsection (3) insert—
“(4)
In this section “the appropriate regulator” has the same meaning as
30
in section 405.”
22
In section 409 (Gibraltar), in subsection (2), for “Part IV permission”
substitute “Part 4A permission”.
23
In section 415 (jurisdiction in civil proceedings), in subsection (1), for
paragraph (a) substitute—
35
“(a)
the FCA,
(aa)
the PRA,
(ab)
the Bank of England,”.
24    (1)
Section 415A (interpretation of powers under the Act) is amended as
follows.
40
      (2)
For “Authority” substitute “FCA, the PRA or the Bank of England”.

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
287

      (3)
In the heading to the section and the italic heading before it, for “of the
Authority” substitute “under the Act”.
Part 2
Amendments of other Acts of Parliament
Bankers’ Books Evidence Act 1879 (c. 11)
5
25
In section 9 of the Bankers’ Books Evidence Act 1879 (interpretation), in
subsection (1A)(a), for “Part 4” substitute “Part 4A”.
Agricultural Credits Act 1928 (c. 43)
26
In section 5 of the Agricultural Credits Act 1928 (agricultural charges on
farming stock and assets), in subsection (7), in the definition of “Bank”, for
10
“Part 4” substitute “Part 4A”.
Agricultural Credits (Scotland) Act 1929 (19 & 20 Geo. 5 c. 13)
27
In section 9 of the Agricultural Credits (Scotland) Act 1929 (interpretation),
in subsection (2), in the definition of “Bank”, for “Part 4” substitute “Part
4A”.
15
Fire Services Act 1947 (c. 41)
28
In section 27A of the Fire Services Act 1947 (information in connection with
firemen’s pensions etc.) (as that section continues to have effect by virtue of
the Firefighters’ Pension Scheme (England and Scotland) Order 2004 and the
Fire and Rescue Services Act 2004 (Firefighters’ Pension Scheme) (Wales)
20
Order 2004), in subsection (2)(a), for “section 150” substitute “section 138D”.
Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (c. 65)
29
In section 57 of the Reserve and Auxiliary Forces (Protection of Civil
Interests) Act 1951 (life policies: supplementary provisions), in subsection
(5A), for “section 150” substitute “section 138D”.
25
Theft Act 1968 (c. 60)
30
In section 24A of the Theft Act 1968 (dishonestly retaining a wrongful
credit), in subsection (9), for paragraph (c) substitute—
“(c)
a person falling within any of paragraphs (a) to (j) of the
definition of “electronic money issuer” in regulation 2(1) of
30
the Electronic Money Regulations 2011.”
Decimal Currency Act 1969 (c. 19)
31
In section 7 of the Decimal Currency Act 1969 (payments under friendly
society and industrial assurance contracts: supplemental), in subsection (5),
for “section 138” substitute “sections 137A and 137E”.
35

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
288

Employers’ Liability (Compulsory Insurance) Act 1969 (c. 57)
32
In section 1 of the Employers’ Liability (Compulsory Insurance) Act 1969
(insurance against liability for employees), in subsection (3)(b)(i), for “Part 4”
substitute “Part 4A”.
Superannuation Act 1972 (c. 11)
5
33
In section 1 of the Superannuation Act 1972 (superannuation schemes: civil
servants), in subsection (9), in the definition of “authorised provider”, for
“Part 4” substitute “Part 4A”.
Employment Agencies Act 1973 (c. 35)
34
In section 9 of the Employment Agencies Act 1973 (inspection), in subsection
10
(1AC), for “Part 4” substitute “Part 4A”.
Consumer Credit Act 1974 (c. 39)
35    (1)
The Consumer Credit Act 1974 is amended as follows.
      (2)
In section 16 (exempt agreements)—
(a)
in subsection (3A), in the Table—
15
(i)
for “Financial Services Authority”, in the first place,
substitute “Financial Conduct Authority”, and
(ii)
for “and the Financial Services Authority”, substitute “, the
Financial Conduct Authority and the Prudential Regulation
Authority”, and
20
(b)
in subsection (10), in paragraphs (a)(i) and (b)(i), for “Part 4”
substitute “Part 4A.
      (3)
In section 25 (licensee to be a fit person), in subsection (1B)—
(a)
for “Part 4” substitute “Part 4A”, and
(b)
for “the Financial Services Authority” substitute “the regulator
25
which granted the permission under Part 4A”.
      (4)
In section 35 (the register), in subsection (1A), for “Financial Services
Authority” substitute “Financial Conduct Authority or the Prudential
Regulation Authority”.
Solicitors Act 1974 (c. 47)
30
36
In section 87 of the Solicitors Act 1974 (interpretation), in the definition of
“bank” in subsection (1) and in subsection (1A)(a), for “Part 4” substitute
“Part 4A”.
House of Commons Disqualification Act 1975 (c. 24)
37
In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975
35
(other disqualifying offices)—
(a)
omit the entry “Member of the governing body of the Financial
Services Authority”, and
(b)
at the appropriate place in each case insert—
“Member of the governing body of the Financial
40
Conduct Authority;”;

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
289

“Member of the governing body of the Prudential
Regulation Authority;”.
Northern Ireland Assembly Disqualification Act 1975 (c. 25)
38
In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (other disqualifying offices)—
5
(a)
omit the entry “Member of the governing body of the Financial
Services Authority”, and
(b)
at the appropriate place in each case insert—
“Member of the governing body of the Financial
Conduct Authority;”;
10
“Member of the governing body of the Prudential
Regulation Authority;”.
Police Pensions Act 1976 (c. 35)
39
In section 8A of the Police Pensions Act 1976 (information in connection with
police pensions etc.), in subsection (2)(a), for “section 150” substitute “section
15
138D”.
Judicial Pensions Act 1981 (c. 20)
40
In section 33A of the Judicial Pensions Act 1981 (voluntary contributions), in
subsection (9), in paragraph (a) of the definition of “authorised provider”,
for “Part 4” substitute “Part 4A”.
20
Inheritance Tax Act 1984 (c. 51)
41
In section 59 of the Inheritance Tax Act 1984 (qualifying interest in
possession), in subsection (3)(b)(i), for “Part 4” substitute “Part 4A”.
Companies Act 1985 (c. 6)
42
The Companies Act 1985 is amended as follows.
25
43
In Schedule 15C (specified persons), for paragraph 7 substitute—
“7
The Financial Conduct Authority.
7A
The Prudential Regulation Authority.
7B
The Bank of England.”
44    (1)
Schedule 15D (disclosures) is amended as follows.
30
      (2)
In paragraph 28 for “Financial Services Authority” substitute “Financial
Conduct Authority or the Prudential Regulation Authority”.
      (3)
In paragraph 29 for “competent authority” substitute “Financial Conduct
Authority”.
      (4)
In paragraph 43, for paragraph (a) substitute—
35
“(a)
a decision of the Financial Conduct Authority;
(aa)
a decision of the Prudential Regulation Authority;”.

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
290

Trustee Savings Banks Act 1985 (c. 58)
45
In Part 3 of Schedule 1 to the Trustee Savings Banks Act 1985
(supplementary transfer provisions), in paragraph 11(4A)(a), for “Part 4”
substitute “Part 4A”.
Administration of Justice Act 1985 (c. 61)
5
46
In section 21 of the Administration of Justice Act 1985 (professional
indemnity and compensation), in subsection (5)(a), for “Part 4” substitute
“Part 4A”.
Housing Act 1985 (c. 68)
47
In section 622 of the Housing Act 1985 (minor definitions: general), in
10
subsection (1), in the definitions of “authorised deposit taker”, “authorised
insurer” and “authorised mortgage lender”, for “Part 4” substitute “Part 4A”.
Insolvency Act 1986 (c. 45)
48
The Insolvency Act 1986 is amended as follows.
49    (1)
Section 4A (approval of proposed voluntary arrangement) is amended as
15
follows.
      (2)
In subsection (5), for “Financial Services Authority” substitute “appropriate
regulator”.
      (3)
After that subsection insert—
“(5A)
“The appropriate regulator” means—
20
(a)
where the regulated company is a PRA-regulated company
within the meaning of paragraph 44 of Schedule A1, the
Financial Conduct Authority and the Prudential Regulation
Authority, and
(b)
in any other case, the Financial Conduct Authority.”
25
50
In section 422 (order relating to formerly authorised banks), in subsection
(1)—
(a)
for “Financial Services Authority” substitute “Financial Conduct
Authority and the Prudential Regulation Authority”, and
(b)
in paragraph (b), for “Part IV” substitute “Part 4A”.
30
51    (1)
Paragraph 44 of Schedule A1 (moratorium where directors propose
voluntary arrangement; modifications relating to regulated companies) is
amended as follows.
      (2)
In sub-paragraphs (2) to (4), for “Authority” substitute “appropriate
regulator”.
35
      (3)
In sub-paragraph (5)—
(a)
for “the Authority”, in the first place, substitute “a regulator”, and
(b)
for “the Authority”, in the second place, substitute “the appropriate
regulator”.
      (4)
In sub-paragraph (6), for “Authority” substitute “appropriate regulator”.
40