Financial Services Bill (HC Bill 323)

Financial Services BillPage 270

3 In paragraph 2 (constitution) for “Authority”, in each place, substitute
“FCA”.

4 In paragraph 4 (discharge of functions by others), in sub-paragraph (1)(a),
for “section 6A(1)” substitute “section 3R(3)”.

5 5In paragraph 5 in sub-paragraph (1), for “section 6A(1)” substitute “section
3R(3)”.

6 For paragraph 6 (and the italic heading before it) substitute—

Discharge of functions: considerations

6 10In discharging the consumer financial education function the
consumer financial education body must have regard to the duty
of the FCA to advance its operational objectives.

Relationship with the FCA

6A (1) 15The consumer financial education body and the FCA must each
take such steps as it considers appropriate to co-operate with the
other in the exercise of their functions under this Act.

(2) The consumer financial education body and the FCA must
prepare and maintain a memorandum describing how they intend
20to comply with sub-paragraph (1).

(3) The consumer financial education body must ensure that the
memorandum as currently in force is published in the way
appearing to it to be best calculated to bring it to the attention of
the public.

6B 25If the consumer financial education body considers that it has
information that, in its opinion, would or might be of assistance to
the FCA in advancing one or more of the FCA’s operational
objectives, it must disclose that information to the FCA.

7 In paragraph 7 (budget) for “Authority”, in each place, substitute “FCA”.

8 30In paragraph 8 (annual plan)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) in sub-paragraph (6), after paragraph (d) insert—

(da) the Smaller Business Practitioner Panel;.

9 In paragraph 9 (annual reports)—

(a) 35for “Authority”, in each place, substitute “FCA”, and

(b) at the end insert—

(5) The Treasury may—

(a) require the consumer financial education body to
comply with any provision of the Companies Act
402006 about accounts and their audit which would
not otherwise apply to it, or

(b) direct that any provision of that Act about accounts
and their audit is to apply to the consumer financial
education body with such modifications as are

Financial Services BillPage 271

specified in the direction, whether or not the
provision would otherwise apply to it.

(6) Compliance with any requirement under sub-paragraph
(5)(a) or (b) is enforceable by injunction or, in Scotland, an
5order for specific performance under section 45 of the
Court of Session Act 1988.

(7) Proceedings under sub-paragraph (6) may be brought only
by the Treasury.

10 After paragraph 9 insert—

10

Audit of accounts

9A (1) The consumer financial education body must send a copy of its
annual accounts to the Comptroller and Auditor General and the
Treasury as soon as is reasonably practicable.

(2) 15The Comptroller and Auditor General must—

(a) examine, certify and report on accounts received under
this paragraph, and

(b) send a copy of the certified accounts and the report to the
Treasury.

(3) 20The Treasury must lay the copy of the certified accounts and the
report before Parliament.

(4) The consumer financial education body must send a copy of the
certified accounts and the report to the FCA.

(5) Except as provided for by paragraph 9(5), the consumer financial
25education body is exempt from the requirements of Part 16 of the
Companies Act 2006 (audit) and its balance sheet must contain a
statement to that effect.

(6) In this paragraph “annual accounts” has the meaning given by
section 471 of the Companies Act 2006.

11 30In paragraph 11 (meaning of “relevant costs”) for “Authority” substitute
“FCA”.

12 In paragraph 12 (funding) for “Authority”, in each place, substitute “FCA”.

13 In paragraph 13 (funding by consumer credit licensees), in sub-paragraph
(5)(a), for “Authority” substitute “FCA”.

14 35In paragraph 15 (reviews of use of resources), for “Authority”, in each place,
substitute “FCA”.

15 In the title to the Schedule, in the marginal reference, for “Section 6A”
substitute “Section 3R”.

Financial Services BillPage 272

Section 43

SCHEDULE 16 Provision of financial services by members of the professions

1 In section 325 (general duty)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) 5in the heading, for “Authority’s” substitute “FCA’s”.

2 In section 328 (directions relating to the general prohibition), for
“Authority”, in each place, substitute “FCA”.

3 In section 329 (orders relating to the general prohibition), for “Authority”, in
each place, substitute “FCA”.

4 10In section 330 (consultation)—

(a) for “Authority”, in each place, substitute “FCA”, and

(b) for subsection (10) substitute—

(10) Cost benefit analysis” means—

(a) an analysis of the costs together with an analysis of
15the benefits that will arise—

(i) if the proposed direction is given, or

(ii) if subsection (5)(b) applies, from the direction
that has been given, and

(b) subject to subsection (10A), an estimate of those costs
20and of those benefits.

(10A) If, in the opinion of the FCA—

(a) the costs or benefits referred to in subsection (10)
cannot reasonably be estimated, or

(b) it is not reasonably practicable to produce an
25estimate,

the cost benefit analysis need not estimate them, but must
include a statement of the FCA’s opinion and an explanation
of it.

5 In section 331 (procedure for making orders), for “Authority”, in each place,
30substitute “FCA”.

6 In section 332 (rules relating to persons to whom the general prohibition
does not apply), for “Authority”, in each place, substitute “FCA”.

Section 90

SCHEDULE 17 Amendments of Banking Act 2009 related to Part 2 of this Act

35Part 1 Amendments of Part 1 of the Act

1 Part 1 of the Banking Act 2009 is amended as follows.

Financial Services BillPage 273

2 (1) Section 1 (overview) is amended as follows.

(2) In subsection (5), for paragraph (c) and the “and” before it, substitute—

(c) the Prudential Regulation Authority, and

(d) the Financial Conduct Authority.

(3) 5In the Table, after the entry relating to sections 82 and 83, insert—

Section 83A Banks not regulated by the PRA.

3 In section 2 (interpretation: “bank”), for “Part 4” substitute “Part 4A”.

4 In section 3 (interpretation: other expressions), for the definition of “the
FSA” and the “and” following it, substitute—

  • 10“the PRA” means the Prudential Regulation Authority,

  • “the FCA” means the Financial Conduct Authority, and.

5 In section 4 (special resolution objectives), in subsection (3), for paragraph
(b) and the “and” following it, substitute—

(b) the PRA,

(ba) 15the FCA, and.

6 In section 5 (code of practice), in subsection (5), for paragraph (b) and the
“and” following it, substitute—

(b) the PRA,

(ba) the FCA, and.

7 (1) 20Section 6 (code of practice: procedure) is amended as follows.

(2) Omit subsections (1) and (2).

(3) For subsection (4) substitute—

(4) Before re-issuing the code of practice the Treasury must consult—

(a) the PRA,

(b) 25the FCA,

(c) the Bank of England, and

(d) the scheme manager of the Financial Services Compensation
Scheme (established under Part 15 of the Financial Services
and Markets Act 2000).

(5) 30As soon as is reasonably practicable after re-issuing the code of
practice the Treasury shall lay a copy before Parliament.

8 (1) Section 7 (general conditions) is amended as follows.

(2) In subsection (1), for “FSA” substitute “PRA”.

(3) In subsection (2), omit the words from “(within” to the end.

(4) 35In subsection (4), for “FSA” substitute “PRA”.

(5) After that subsection insert—

(4A) The threshold conditions” means the threshold conditions, as
defined by subsection (1) of section 55B of the Financial Services and

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Markets Act 2000, for which the PRA is treated as responsible under
subsection (2) of that section.

(6) In subsection (5)—

(a) for “FSA” substitute “PRA”, and

(b) 5at the end of paragraph (a) insert—

(aa) the FCA,.

9 In section 8 (specific conditions: private sector purchaser and bridge bank),
in subsection (3), for paragraph (a) and the “and” following it, substitute—

(a) the PRA,

(aa) 10the FCA, and.

10 In section 9 (specific conditions: temporary public ownership), in subsection
(4), for paragraph (a) and the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

11 15In section 10 (Banking Liaison Panel), in subsection (3), for paragraph (c)
substitute—

(c) a member appointed by the PRA,

(ca) a member appointed by the FCA,.

12 In section 24 (procedure: instruments), in subsection (1), for paragraph (c)
20and the “and” following it, substitute—

(c) the PRA,

(ca) the FCA, and.

13 In section 25 (procedure: orders), in subsection (2), for paragraph (c) and the
“and” following it, substitute—

(c) 25the PRA,

(ca) the FCA, and.

14 In section 26 (supplemental instruments), in subsection (5), for paragraph (a)
and the “and” following it, substitute—

(a) the PRA,

(aa) 30the FCA, and.

15 In section 27 (supplemental orders), in subsection (5), for paragraph (a) and
the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

16 35In section 28 (onward transfer), in subsection (6), for paragraph (a) and the
“and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

17 In section 29 (reverse share transfer), in subsection (6), for paragraph (a) and
40the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

18 In section 30 (bridge bank: share transfers), in subsection (5), for paragraph

Financial Services BillPage 275

(a) and the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

19 In section 31 (bridge bank: reverse share transfer), in subsection (5), for
5paragraph (a) and the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

20 In section 41 (procedure), in subsection (1), for paragraph (c) and the “and”
following it, substitute—

(c) 10the PRA,

(ca) the FCA, and.

21 In section 42 (supplemental instruments), in subsection (5), for paragraph (a)
and the “and” following it, substitute—

(a) the PRA,

(aa) 15the FCA, and.

22 In section 43 (onward transfer), in subsection (7), for paragraph (a) and the
“and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

23 20In section 44 (reverse property transfer), in subsection (6), for paragraph (a)
and the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

24 In section 45 (temporary public ownership: property transfer), in subsection
25(8), for paragraph (a) and the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

25 In section 46 (temporary public ownership: reverse property transfer), in
subsection (7), for paragraph (a) and the “and” following it, substitute—

(a) 30the PRA,

(aa) the FCA, and.

26 In section 57 (valuation principles), in subsection (4)(a), for “Part 4”
substitute “Part 4A”.

27 (1) Section 82 (temporary public ownership) is amended as follows.

(2) 35In subsection (2), for “the FSA are” substitute “the PRA is”.

(3) In subsection (5), for paragraph (a) and the “and” following it, substitute—

(a) the PRA,

(aa) the FCA, and.

Financial Services BillPage 276

28 After section 83 insert—

Banks not regulated by PRA

83A Modifications of Part

(1) In the application of this Part to an FCA-regulated bank the
5modifications specified in the Table apply.

(2) In this section—

  • “FCA-regulated bank” means a bank which does not carry on
    any activity which is a PRA-regulated activity for the
    purposes of the Financial Services and Markets Act 2000;

  • 10“immediate group” has the meaning given by section 421ZA of
    the Financial Services and Markets Act 2000;

  • “PRA-authorised person” has the meaning given by section
    2B(5) of that Act.

TABLE OF MODIFICATIONS
Provision 15Modification
Section 7
(a)

Treat the references to the PRA in subsections
(1), (4), (4A) and (5) as references to the FCA.

(b)

Ignore subsection (5)(aa).

(c)

If the bank has as a member of its immediate
20group a PRA-authorised person the FCA
must consult the PRA before determining
whether or not Condition 2 is met.


Section 8 Subsection (3)(a) does not apply unless the bank has
25as a member of its immediate group a PRA-
authorised person.
Section 9 Subsection (4)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 24 30Ignore subsection (1)(c).
Section 25 Ignore subsection (2)(c).
Section 26 Subsection (5)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section
26A
35Subsection (6)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 27 Subsection (5)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
40authorised person.

Financial Services BillPage 277

Provision Modification
Section 28 Subsection (6)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 29 5Subsection (6)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 30 Subsection (5)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
10authorised person.
Section 31 Subsection (5)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 41 Ignore subsection (1)(c).
Section 42 15Subsection (5)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section
42A
Subsection (6)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
20authorised person.
Section 43 Subsection (7)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 44 Subsection (6)(a) does not apply unless the bank has
25as a member of its immediate group a PRA-
authorised person.
Section 45 Subsection (8)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 46 30Subsection (7)(a) does not apply unless the bank has
as a member of its immediate group a PRA-
authorised person.
Section 82
(a)

Treat the reference to the PRA in subsection
(2) as a reference to the FCA.

(b)

35Ignore subsection (5)(a).


Part 2 Amendments of Part 2 of the Act

29 Part 2 of the Banking Act 2009 is amended as follows.

30 40In section 91 (interpretation: “bank”), for “Part 4” substitute “Part 4A”.

31 In section 93 (interpretation: other expressions), for subsection (1)

Financial Services BillPage 278

substitute—

(1) In this Part—

(a) “the PRA” means the Prudential Regulation Authority, and

(b) “the FCA” means the Financial Conduct Authority.

32 5In section 95 (application), in subsection (1)(b), for “FSA” substitute “PRA”.

33 In section 96 (grounds for applying), for “FSA”, in each place, substitute
“PRA”.

34 In section 97 (grounds for making), in subsection (1), for “FSA” substitute
“PRA”.

35 10In section 98 (commencement), in subsection (2), for “FSA”, in both places,
substitute “PRA”.

36 (1) Section 100 (liquidation committee) is amended as follows.

(2) For subsection (2) substitute—

(2) The liquidation committee is to consist initially of—

(a) 15two individuals nominated by the Bank of England,

(b) one individual nominated by the PRA,

(c) one individual nominated by the FCA, and

(d) one individual nominated by the FSCS.

(3) In subsection (6)(c), for “and the FSA” substitute “, the PRA and the FCA”.

37 20In section 101 (liquidation committee: supplemental), in subsection (7), for
“FSA” substitute “PRA, the FCA”.

38 In section 103 (general powers, duties and effect), in the Table—

(a) in the entry relating to section 147 of the Insolvency Act 1986, for
“FSA” substitute “PRA”, and

(b) 25in the entry relating to section 241 of that Act, for “FSA” substitute
“PRA”.

39 (1) Section 108 (removal by court) is amended as follows.

(2) In subsection (1)(b), for “FSA” substitute “PRA”.

(3) In subsection (2)—

(a) 30for “FSA” substitute “PRA”, and

(b) after “England” insert “and the FCA”.

(4) In subsection (3), for “FSA” substitute “PRA and the FCA”.

40 In section 109 (removal by creditors), in subsection (4) for “and the FSA”
substitute “, the PRA and the FCA”.

41 35In section 113 (company voluntary arrangement), in subsection (2)(b), for
sub-paragraph (i) substitute—

(i) the PRA,

(ia) the FCA,.

42 In section 115 (dissolution), in subsection (2)(b), for sub-paragraph (i)
40substitute—

(i) the PRA,

Financial Services BillPage 279

(ia) the FCA,.

43 In section 117 (bank insolvency as alternative order), in subsection (2)(a)—

(a) for “FSA” substitute “PRA”, and

(b) after “England” insert “and the FCA”.

44 (1) 5Section 120 (notice of preliminary steps) is amended as follows.

(2) For “FSA”, in each place (including the heading), substitute “PRA”.

(3) In subsection (10), in paragraph (a), after “England” insert “and the FCA”.

45 After section 129 insert—

129A Banks not regulated by PRA

(1) 10In the application of this Part to an FCA-regulated bank the
modifications specified in the Table apply.

(2) In this section—

  • “FCA-regulated bank” means a bank which does not carry on
    any activity which is a PRA-regulated activity for the
    15purposes of the Financial Services and Markets Act 2000;

  • “immediate group” has the meaning given by section 421ZA of
    the Financial Services and Markets Act 2000;

  • “PRA-authorised person” has the meaning given by section
    2B(5) of that Act.

TABLE OF MODIFICATIONS
20
Provision Modification
Section 95 Treat the reference to the PRA in
subsection (1) as a reference to the FCA.
Section 96
(a)

Treat the references to the PRA in
25subsections (2) and (3) as references
to the FCA.

(b)

If the bank has as a member of its
immediate group a PRA-authorised
person the Bank of England must
30consult the PRA before applying
for a bank insolvency order.

(c)

The FCA must consult the PRA
before applying for a bank
insolvency order.


35
Section 97 Treat the reference to the PRA in
subsection (1) as a reference to the FCA.
Section 98 Treat the references to the PRA in
subsection (2) as references to the FCA.

Financial Services BillPage 280

Provision Modification
Section 100
(a)

Treat the reference to two
individuals in subsection (2)(a) as a
reference to one individual.

(b)

5Ignore subsection (2)(b).

(c)

Ignore the reference to the PRA in
subsection (6)(c).


Section 101 Ignore the reference to the PRA in
10subsection (7).
Section 103 In the Table, in the entries relating to
sections 147 and 241 of the Insolvency Act
1986, treat the reference to the PRA as a
reference to the FCA.
Section 108
(a)

15Treat the reference to the PRA in
subsections (1) and (2) as a
reference to the FCA.

(b)

Ignore the duty to consult the FCA
in subsection (2).

(c)

20Ignore the reference to the PRA in
subsection (3).


Section 109 Ignore the reference to the PRA in
subsection (4).
Section 113 25Ignore subsection (2)(b)(i).
Section 115 Ignore subsection (2)(b)(i).
Section 117
(a)

Treat the reference to the PRA in
subsection (2) as a reference to the
FCA.

(b)

30Ignore the duty to obtain the
consent of the FCA in subsection
(2)(a).


Section 120
(a)

Treat the references to the PRA in
35subsections (5), (7) and (10) as
references to the FCA.

(b)

Ignore the duty to inform the FCA
in subsection (10)(a).


40Part 3 Amendments of Part 3 to the Act

46 Part 3 of the Banking Act 2009 is amended as follows.

47 In section 147 (administrator’s proposals), in subsection (6), for “FSA”
substitute “PRA and a copy of it to the FCA”.

48 45In section 153 (successful rescue), in subsection (3), for “FSA” substitute
“PRA and the FCA”.

Financial Services BillPage 281

49 In section 157 (other processes), in subsection (1), for “Before exercising an
insolvency power in respect of a residual bank the FSA” substitute “Before
the PRA or the FCA exercises an insolvency power in respect of a residual
bank, whichever of them is exercising the power”.

50 5After section 157 insert—

157A Banks not regulated by PRA

(1) In the application of this Part to an FCA-regulated bank the
modifications specified in the Table apply.

(2) In this section “FCA-regulated bank” means a bank which does not
10carry on any activity which is a PRA-regulated activity for the
purposes of the Financial Services and Markets Act 2000.

TABLE OF MODIFICATIONS
Provision Modification
Section 147 The bank administrator must send the
15statement to the FCA (and need not send a
copy of it to the PRA).
Section 153 Ignore the reference to the PRA in
subsection (3).
Section 157 Ignore the reference to the PRA in
20subsection (1).

51 In section 166 (interpretation: general), for subsection (2) substitute—

(2) In this Part—

  • “the FCA” means the Financial Conduct Authority, and

  • “the PRA” means the Prudential Regulation Authority.

25Part 4 Amendments of Parts 4 to 6 of the Act

52 Parts 4 to 6 of the Banking Act 2009 are amended as follows.

53 (1) Section 183 (interpretation of Part 5) is amended as follows.

(2) In paragraph (c)—

(a) 30for “section 3(2)” substitute “section 1I”, and

(b) omit “(market confidence)”.

(3) For paragraph (e), and the “and” before it, substitute—

(e) the FCA” means the Financial Conduct Authority,

(f) “Part 4A permission” has the meaning given by section 55A
35of the Financial Services and Markets Act 2000,

(g) “the PRA” means the Prudential Regulation Authority,

(h) “PRA-regulated activity” has the meaning given by section
22A of the Financial Services and Markets Act 2000, and

Financial Services BillPage 282

(i) “recognised investment exchange” has the meaning given by
section 285 of that Act.

54 In section 223 (termination of right to issue), in subsections (5) and (6), for
“Part 4” substitute “Part 4A”.

55 (1) 5Section 232 (definition) is amended as follows.

(2) In subsections (2) and (6)(a), for “Part 4” substitute “Part 4A”.

(3) In subsection (5B), in the definition of “rules”, for “section 139(1)” substitute
“section 137B(1)”.

(4) After subsection (6) insert—

(7) 10The Treasury may by order amend the definition of “investment
activity” in subsection (5B), including by defining that term by
reference to rules or guidance made by the PRA or the FCA under the
Financial Services and Markets Act 2000.

56 In section 234 (regulations: details), for subsection (8)(b) substitute—

(b) 15the Prudential Regulation Authority,

(ba) the Financial Conduct Authority,.

57 In section 235 (regulations: procedure), at the end insert—

(6) An order under section 232(7)—

(a) is to be made by statutory instrument, and

(b) 20is subject to annulment in pursuance of a resolution of either
House of Parliament.

58 In section 246 (information), in subsection (2)—

(a) for paragraph (b) substitute—

(b) the Prudential Regulation Authority;

(ba) 25the Financial Conduct Authority;, and

(b) in paragraph (d), for “or the Financial Services Authority” substitute,
“the Prudential Regulation Authority or the Financial Conduct
Authority”.

59 (1) Section 249 (functions) is amended as follows.

(2) 30In subsection (1)—

(a) for “Financial Services Authority” substitute “Prudential Regulation
Authority or the Financial Conduct Authority”, and

(b) for “the Authority” substitute “that authority”.

(3) In subsection (2), for “Financial Services Authority” substitute “Prudential
35Regulation Authority or the Financial Conduct Authority”.

(4) Omit subsection (3).

60 In section 250 (information), for “Financial Services Authority” substitute
“Prudential Regulation Authority.”

61 (1) Section 259 (statutory instruments) is amended as follows.

(2) 40In the entry in the Table relating to section 232, for “232” substitute “232(6)”.

Financial Services BillPage 283

(3) After that entry insert—

232(7) Investment banks: definition
of investment activity
Negative
resolution.

(4) In the entry in the Table relating to section 249, for “FSA—” substitute “PRA
5or FCA—”.

62 In the Table in section 261 (index of defined terms)—

(a) after the entry relating to “enactment” insert—

FCA 3, 93, 166 & 183

(b) omit the entry relating to the FSA, and

(c) 10after the entry relating to “partial property transfer” insert—

PRA 3, 93, 166 & 183.

Section 94(1)

SCHEDULE 18 Further minor and consequential amendments

Part 1 15Amendments of FSMA 2000

1 FSMA 2000 is amended as follows.

2 (1) Section 33 (withdrawal of authorisation) is amended as follows.

(2) In subsection (1)(a), for “Part IV permission” substitute “Part 4A
permission”.

(3) 20In subsection (2), for “Authority” substitute “appropriate regulator”.

(4) After that subsection insert—

(2A) In subsection (2) “the appropriate regulator” means—

(a) in the case of a PRA-authorised person, the PRA, and

(b) in any other case, the FCA.

(5) 25In the heading, omit “by the Authority”.

3 (1) Section 36 (persons authorised as a result of being concerned in collective
investment schemes) is amended as follows.

(2) In subsection (1), for “Authority” substitute “FCA”.

(3) In subsection (2), for “Part IV permission” substitute “Part 4A permission”.

4 30In section 38 (exemption orders), in subsection (2), for “Part IV permission”
substitute “Part 4A permission”.

Financial Services BillPage 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) 5a provision contained in or made under this Act, or

(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
10business for which the authorised person has accepted responsibility
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 15In section 97(1)(d) (contravention of Part 6 rules: appointment of persons to
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) 20Those provisions are—

(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) 25section 266;

(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
30do one or more of the following—

(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
35that the auditor has failed to comply with the duty;

(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
40under subsection (1) as they have effect in relation to the taking of
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 BillPage 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
5138B(3)(c)”.

(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)”,