Financial Services Bill

Session 2010 - 12
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Other Bills before Parliament

Financial Services Bill

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
291

      (5)
In sub-paragraph (7)—
(a)
for “the Authority”, in the first place, substitute “a regulator”, and
(b)
for “the Authority”, in the second place, substitute “the appropriate
regulator”.
      (6)
In sub-paragraphs (8) to (11), for “Authority” substitute “appropriate
5
regulator”.
      (7)
In sub-paragraph (12)—
(a)
for “the Authority”, in the first place, substitute “a regulator”, and
(b)
for “the Authority”, in the second place, substitute “the appropriate
regulator”.
10
      (8)
In sub-paragraph (13), for “Authority” substitute “appropriate regulator”.
      (9)
In sub-paragraph (14)—
(a)
for “the Authority”, in the first place, substitute “a regulator”, and
(b)
for “the Authority”, in the second place, substitute “the appropriate
regulator”.
15
     (10)
In sub-paragraph (15), for “Authority” substitute “appropriate regulator”.
     (11)
In sub-paragraph (16)—
(a)
for “the Authority”, in the first place, substitute “a regulator”, and
(b)
for “the Authority”, in the second place, substitute “the appropriate
regulator”.
20
     (12)
After sub-paragraph (16) insert—
  “(16A)
If either regulator makes an application to the court under any of
the provisions mentioned in sub-paragraphs (5), (7), (12), (14) or
(16) in relation to a PRA-regulated company, the other regulator is
entitled to be heard on the application.”
25
     (13)
In sub-paragraph (17), for “Authority” substitute “appropriate regulator”.
     (14)
After sub-paragraph (17) insert—
  “(17A)
“The appropriate regulator” means—
(a)
for the purposes of sub-paragraphs (2) to (8) and (10) to
(17)—
30
(i)
where the regulated company is a PRA-regulated
company, each of the Financial Conduct Authority
and the Prudential Regulation Authority, and
(ii)
in any other case, the Financial Conduct Authority;
(b)
for the purposes of sub-paragraph (9)—
35
(i)
where the regulated company is a PRA-regulated
company, the Financial Conduct Authority or the
Prudential Regulation Authority, and
(ii)
in any other case, the Financial Conduct
Authority.”
40
     (15)
In sub-paragraph (18)—
(a)
for the definition of “the Authority” and the “and” following it

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
292

substitute—
““PRA-authorised person” has the meaning given by
section 2B(5) of the Financial Services and Markets
Act 2000;
“PRA-regulated activity” has the meaning given by
5
section 22A of the Financial Services and Markets Act
2000;
“PRA-regulated company” means a regulated company
which—
(a)
is, or has been, a PRA-authorised person,
10
(b)
is, or has been, an appointed representative
within the meaning given by section 39 of the
the Financial Services and Markets Act 2000,
whose principal (or one of whose principals)
is, or was, a PRA-authorised person, or
15
(c)
is carrying on, or has carried on, a PRA-
regulated activity in contravention of the
general prohibition;”.
(b)
after the definition of “regulated company” insert—
““regulator” means the Financial Conduct Authority or the
20
Prudential Regulation Authority.”
     (16)
In the italic heading, for “Financial Services Authority” substitute “Financial
Conduct Authority and Prudential Regulation Authority”.
52    (1)
Schedule B1 (administration) is amended as follows.
      (2)
In paragraph 40 (dismissal of pending winding-up petition), in sub-
25
paragraph (2)(b), for “Financial Services Authority” substitute “Financial
Conduct Authority or Prudential Regulation Authority”.
      (3)
In paragraph 42 (moratorium on insolvency proceedings), in sub-paragraph
(4)(b), for “Financial Services Authority” substitute “Financial Conduct
Authority or Prudential Regulation Authority”.
30
      (4)
In paragraph 82 (public interest winding-up), in sub-paragraph (1)(b), for
“Financial Services Authority” substitute “Financial Conduct Authority or
Prudential Regulation Authority”.
Debtors (Scotland) Act 1987 (c. 18)
53
In section 73F of the Debtors (Scotland) Act 1987 (protection of minimum
35
balance in bank accounts), in subsection (5)(b), for “Part 4” substitute “Part
4A”.
Housing (Scotland) Act 1987 (c. 26)
54
In section 338 of the Housing (Scotland) Act 1987 (interpretation), in
subsection (1)—
40
(a)
in the definition of “bank”, for “Part 4” substitute “Part 4A”, and
(b)
in the definition of “insurance company” for “Part 4” substitute “Part
4A”.

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
293

Income and Corporation Taxes Act 1988 (c. 1)
55    (1)
The Income and Corporation Taxes Act 1988 is amended as follows.
      (2)
In section 266 (life assurance premiums), in subsection (2)(a)(i), for “Part 4”
substitute “Part 4A”.
      (3)
In section 376 (qualifying borrowers and qualifying lenders), in subsection
5
(4)(e), for “Part 4” substitute “Part 4A”.
      (4)
In section 376A (the register of qualifying lenders), in subsection (1A)(a), for
“Part 4” substitute “Part 4A”.
      (5)
In section 431 (interpretation: insurance companies), in subsection (2), in the
definition of “insurance company”, for “Part 4” substitute “Part 4A”.
10
      (6)
In section 444AB (transfer schemes)—
(a)
in subsection (2)(b), for “Part 4” substitute “Part 4A”, and
(b)
in subsection (2A)(b), for “Part 4” substitute “Part 4A”.
Access to Medical Reports Act 1988 (c. 28)
56
In section 2 of the Access to Medical Reports Act 1988 (interpretation), in
15
subsection (1), in the definition of “insurer”, for “Part 4” substitute “Part 4A”.
Road Traffic Act 1988 (c. 52)
57
In section 95 of the Road Traffic Act 1988 (notification of refusal of insurance
on grounds of health), in subsection (3)(a), for “Part 4” substitute “Part 4A”.
Water Act 1989 (c. 15)
20
58
In section 174 of the Water Act 1989 (restriction on disclosure of
information), in subsection (2)(e), for “or the Financial Services Authority”
substitute “, the Financial Conduct Authority, the Prudential Regulation
Authority or the Bank of England”.
Companies Act 1989 (c. 40)
25
59
The Companies Act 1989 is amended as follows.
60    (1)
Section 82 (request for assistance by overseas regulatory authority) is
amended as follows.
      (2)
In subsection (2)(a)—
(a)
in sub-paragraph (ii), for “Financial Services Authority” substitute
30
“FCA, the PRA or the Bank of England”, and
(b)
omit sub-paragraph (iii).
      (3)
In subsection (3), for “Financial Services Authority” substitute
“corresponding UK regulator (if any)”.
      (4)
After that subsection insert—
35
“(3A)
In subsection (3), “the corresponding UK regulator” means such one
or more of the FCA, PRA and the Bank of England as appears to the
Secretary of State to exercise functions corresponding to the
regulatory functions for the purposes of which the request is made.”

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
294

      (5)
In subsection (5)—
(a)
for “Financial Services Authority”, in the first place, substitute “FCA
and the PRA”,
(b)
for “Financial Services Authority”, in the second place, substitute
“FCA or the PRA”, and
5
(c)
for “the Authority” substitute “the body giving the notification”.
61    (1)
Section 87 (exceptions from restrictions on disclosure) is amended as
follows.
      (2)
In subsection (2)(b), for sub-paragraph (i) substitute—
“(i)
a decision of the FCA;
10
(iia)
a decision of the PRA;”
      (3)
In subsection (4), in the Table, in the entry relating to the Financial Services
Authority, for “The Financial Services Authority” substitute “The FCA or the
PRA”.
62    (1)
Section 157 (change in default rules) is amended as follows.
15
      (2)
In subsection (1)—
(a)
for “Authority”, in the first place, substitute “appropriate regulator”,
and
(b)
for “Authority”, in the second place, substitute “the regulator”.
      (3)
At the end insert—
20
“(4)
“The appropriate regulator”—
(a)
in relation to a recognised UK investment exchange, means
the FCA, and
(b)
in relation to a recognised UK clearing house, means the
Bank of England.”
25
63    (1)
Section 162 (duty to report on completion of default proceedings) is
amended as follows.
      (2)
In subsections (1) and (1A), for “Authority” substitute “appropriate
regulator”.
      (3)
In subsection (4), for “Authority” substitute “appropriate regulator”.
30
      (4)
At the end insert—
“(7)
“The appropriate regulator”—
(a)
in relation to a recognised investment exchange or a
recognised overseas investment exchange, means the FCA,
and
35
(b)
in relation to a recognised clearing house or a recognised
overseas clearing house, means the Bank of England.”
64    (1)
Section 167 (application to determine whether default proceedings to be
taken) is amended as follows.
      (2)
In subsections (1B), (3) (in both places), (4) and (5) (in both places), for
40
“Authority” substitute “appropriate regulator”.
      (3)
At the end insert—
“(6)
“The appropriate regulator”—

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
295

(a)
in relation to a responsible investment exchange, means the
FCA, and
(b)
in relation to a responsible clearing house, means the Bank of
England.”
65    (1)
Section 169 (supplementary provisions) is amended as follows.
5
      (2)
In subsection (3A), for paragraph (b) and the “and” before it, substitute—
“(b)
in the case of a UK investment exchange, the FCA, and
(c)
in the case of a UK clearing house, the Bank of England.”
      (3)
In subsection (5), for “or the Authority” substitute “, the FCA or the Bank of
England”.
10
66    (1)
Section 176 (power to make provision about certain charges) is amended as
follows.
      (2)
In subsection (2)—
(a)
in paragraph (b), for “Authority” substitute “Bank of England”, and
(b)
in paragraph (d), for “Part 4” substitute “Part 4A”.
15
      (3)
In subsection (6)—
(a)
for “Authority”, in the first place, substitute “Bank of England”, and
(b)
for “Authority”, in the second place, substitute “FCA”.
67    (1)
Section 190 (minor definitions) is amended as follows.
      (2)
Omit the definition of “the Authority”.
20
      (3)
After the definition of “charge” insert—
““the FCA” means the Financial Conduct Authority;”.
      (4)
After the definition of “overseas” insert—
““the PRA” means the Prudential Regulation Authority;”.
68    (1)
Section 191 (index of defined expressions) is amended as follows.
25
      (2)
Omit the entry relating to “the Authority”.
      (3)
After the entry relating to “designated non-member” insert—

“the FCA
Section 190(1)”

      (4)
After the entry relating to “permanent trustee” insert—

“the PRA
Section 190(1)”.

30
Water Industry Act 1991 (c. 56)
69
In section 206 of the Water Industry Act 1991 (restriction on disclosure of
information), in subsection (3)(e), for “or the Financial Services Authority”
substitute “, the Financial Conduct Authority, the Prudential Regulation
Authority or the Bank of England”.
35

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
296

Water Resources Act 1991 (c. 57)
70
In section 204 of the Water Resources Act 1991 (restriction on disclosure of
information), in subsection (2)(e), for “or the Financial Services Authority”
substitute “, the Financial Conduct Authority, the Prudential Regulation
Authority or the Bank of England”.
5
Social Security Administration Act 1992 (c. 5)
71    (1)
The Social Security Administration Act 1992 is amended as follows.
      (2)
In section 15A (payment out of benefit of sums in respect of mortgage
interest), in subsection (4), in the definitions of “deposit taker” and “insurer”,
for “Part 4” substitute “Part 4A”.
10
      (3)
In section 109B (power to require information), in subsection (7), in the
definitions of “bank” and “insurer”, for “Part IV” substitute “Part 4A”.
Judicial Pensions and Retirement Act 1993 (c. 8)
72    (1)
The Judicial Pensions and Retirement Act 1993 is amended as follows.
      (2)
In section 10 (additional benefits from voluntary contributions), in
15
subsection (8), in the definitions of “authorised provider” and “insurer”, for
“Part 4” substitute “Part 4A”.
      (3)
In Part 1 of Schedule 2 (transfer of accrued benefits: interpretation), in
paragraph 1, in the definition of “authorised insurer”, for “Part 4” substitute
“Part 4A”.
20
Criminal Justice Act 1993 (c. 36)
73
In Schedule 1 to the Criminal Justice Act 1993 (special defences), in
paragraph 5(2), for “section 144(1)” substitute “section 137O”.
Railways Act 1993 (c. 43)
74    (1)
The Railways Act 1993 is amended as follows.
25
      (2)
In section 145 (restrictions on disclosure of information), in subsection (2)(c),
for “or the Financial Services Authority” substitute “, the Financial Conduct
Authority or the Prudential Regulation Authority”.
      (3)
In section 151 (general interpretation), in subsection (1), in the definition of
“securities”, for “section 74(5)” substitute “section 102A(2)”.
30
Pension Schemes Act 1993 (c. 48)
75    (1)
The Pension Schemes Act 1993 is amended as follows.
      (2)
In section 149 (procedure on an investigation by the Pensions Ombudsman),
in subsection (6)—
(a)
for paragraph (e) substitute—
35
“(e)
the Financial Conduct Authority,
(ea)
the Prudential Regulation Authority,
(eb)
the Bank of England,”, and

Financial Services Bill
Schedule 18 — Further minor and consequential amendments
Part 2 — Amendments of other Acts of Parliament
297

(b)
in paragraph (o), for “a body corporate established in accordance
with paragraph 2(1)” substitute “the body corporate mentioned in
paragraph 2”.
      (3)
In section 158A (disclosures by the Secretary of State), in subsection (1), in
the Table, for the entry relating to the Financial Services Authority
5
substitute—

“The Financial Conduct Authority
Any of its functions.

The Prudential Regulation Authority
Any of its functions.”.

      (4)
In section 180A (insurer and long-term insurance business), in subsection
(1)(a), for “Part 4” substitute “Part 4A”.
10
      (5)
In section 185 (duty to consult before making regulations)—
(a)
in subsection (7), for “the Financial Services Authority” substitute
“the appropriate regulator”, and
(b)
after that subsection insert—
“(7A)
“The appropriate regulator” means—
15
(a)
where the group insurance business to which the
regulations relate consists only of activities which are
PRA-regulated activities, the Prudential Regulation
Authority,
(b)
where the group insurance business to which the
20
regulations relate consists partly of activities which
are PRA-regulated activities and partly of other
regulated activities, the Prudential Regulation
Authority and the Financial Conduct Authority, or
(c)
in any other case, the Financial Conduct Authority.
25
(7B)
In subsection (7A) “regulated activities” and “PRA-regulated
activities” have the same meaning as in the Financial Services
and Markets Act 2000.”
Finance Act 1994 (c. 9)
76    (1)
The Finance Act 1994 is amended as follows.
30
      (2)
In Schedule 7 (insurance premium tax), in paragraph 28B—
(a)
in sub-paragraph (1)—
(i)
for “the Financial Services Authority (“the Authority”)”
substitute “a regulator”, and
(ii)
for “assisting the Authority” substitute “assisting the
35
regulator”, and
(b)
in sub-paragraph (2)—
(i)
for “the Authority”, in the first place, substitute “a regulator”,
and
(ii)
for “the Authority”, in the second place, substitute “the
40
regulator”.
(c)
after that sub-paragraph insert—
“(3)
In this paragraph “regulator” means—