|
| |
|
body other than an overseas investment exchange or overseas |
| |
| |
| |
(i) | for “the Authority”, in both places, substitute “the regulator |
| |
| 5 |
(ii) | for “the exchange” substitute “the body”, and |
| |
(c) | in paragraph (b), for “the exchange” substitute “the body”. |
| |
(6) | In subsection (3), for “the Authority” substitute “the regulator concerned”. |
| |
(7) | In subsection (4), for “the Authority” substitute “an appropriate regulator”. |
| |
(8) | In the heading, for “Authority’s” substitute “Appropriate regulator’s”. |
| 10 |
15 (1) | Section 297 (revoking recognition) is amended as follows. |
| |
(2) | In subsections (1) and (2), for “the Authority” substitute “the appropriate |
| |
| |
| |
(a) | in the opening words— |
| 15 |
(i) | for “the Authority” substitute “the appropriate regulator”, |
| |
| |
(ii) | omit “which is a recognised investment exchange”, |
| |
(b) | in paragraphs (a) and (b), after “exchange” insert “or (as the case may |
| |
be) of a clearing house”, and |
| 20 |
(c) | in paragraph (c), for the words from “directly applicable” to the end |
| |
substitute “directly applicable EU regulation specified (or of a |
| |
description specified) in an order made by the Treasury”. |
| |
(4) | In subsection (2C), at the end insert “or overseas clearing house”. |
| |
(5) | In subsection (5), for “the Authority” substitute “the appropriate regulator”. |
| 25 |
16 | In section 298 (directions and revocation: procedure), in subsections (1), |
| |
(2)(a), (3), (5), (6), (7) (in both places) and (8), for “the Authority” substitute |
| |
“the appropriate regulator”. |
| |
17 | In section 299 (complaints about recognised bodies), in subsections (1) and |
| |
(2), for “Authority” substitute “appropriate regulator”. |
| 30 |
18 | In section 300A (power to disallow excessive regulatory provision)— |
| |
(a) | in subsection (1), for the words from “with” to the end substitute |
| |
| |
(a) | its business as an investment exchange, |
| |
(b) | the provision by it of clearing services, or |
| 35 |
(c) | the provision by it of services falling within section |
| |
285(2)(b) or (3)(b).”, and |
| |
(b) | in subsections (2) (in both places) and (4), and in the heading, for |
| |
“Authority” substitute “appropriate regulator”. |
| |
19 | In section 300B (duty to notify proposal to make regulatory provision), in |
| 40 |
subsections (1) to (3), for “Authority” substitute “appropriate regulator”. |
| |
20 | In section 300C (restriction on making provision before Authority decides |
| |
whether to act), in subsections (1), (2)(a), (3) (in both places), (4)(a) and (b), |
| |
and in the heading, for “Authority” substitute “appropriate regulator”. |
| |
|
| |
|
| |
|
21 (1) | Section 300D (consideration by Authority whether to disallow proposed |
| |
provision) is amended as follows. |
| |
(2) | In subsections (1) to (4) and (5)(a) and (b), for “Authority” substitute |
| |
| |
| 5 |
(a) | in the opening words, for “the Authority” substitute “the appropriate |
| |
| |
| |
(i) | for “the Authority’s” substitute “the appropriate |
| |
| 10 |
(ii) | for “the Authority” substitute “the regulator concerned”, and |
| |
(c) | in paragraph (c)(i) and (ii), for “the Authority” substitute “the |
| |
| |
(4) | In the heading, for “Authority” substitute “appropriate regulator”. |
| |
22 (1) | Section 301 (supervision of certain contracts) is amended as follows. |
| 15 |
(2) | In subsection (2), for “the Authority” substitute “the Bank of England”. |
| |
| |
(a) | for “the Authority”, in the first place, substitute “the FCA or the Bank |
| |
| |
(b) | for “the Authority”, in the second place, substitute “the Bank”. |
| 20 |
(4) | In subsections (4)(a), (6)(a), (7) and (9), for “Authority” substitute “Bank of |
| |
| |
23 | In section 301A (obligation to notify the Authority: acquisitions of control), |
| |
in subsections (1) and (2), and in the heading, for “the Authority” substitute |
| |
| 25 |
24 | In section 301B (requirements for s.301A notices), in subsections (1) to (3), for |
| |
“Authority” substitute “FCA”. |
| |
25 | In section 301C (acknowledgement of receipt), in subsections (1) and (2), for |
| |
“Authority” substitute “FCA”. |
| |
26 | In section 301F (assessment: general), in subsections (1) to (3), for |
| 30 |
“Authority” substitute “FCA”. |
| |
27 (1) | Section 301G (assessment: procedure) is amended as follows. |
| |
(2) | In subsections (1) (in both places) and (2) to (5), for “Authority” substitute |
| |
| |
(3) | In subsection (6), for “the Authority’s” substitute “the FCA’s”. |
| 35 |
28 | In section 301H (duration of approval), in subsections (1), (2) and (3) (in both |
| |
places), for “the Authority” substitute “the FCA”. |
| |
29 | In section 301I (objections by the Authority), in subsections (1) to (5), and in |
| |
the heading, for “Authority” substitute “FCA”. |
| |
30 | In section 301J (restriction notices), in subsections (1), (2)(b), (3) and (7), for |
| 40 |
“Authority” substitute “FCA”. |
| |
|
| |
|
| |
|
31 | In section 301K (order for sale of shares), in subsection (1), for “the |
| |
Authority” substitute “the FCA”. |
| |
32 (1) | Section 301L (offences under Chapter) is amended as follows. |
| |
(2) | In subsections (1) and (2) (in both places), for “the Authority” substitute “the |
| |
| 5 |
(3) | In subsection (4), for “the Authority’s” substitute “the FCA’s”. |
| |
(4) | In subsections (5) and (9), for “the Authority” substitute “the FCA”. |
| |
33 | In section 312A (exercise of passport rights by EEA market operator), in |
| |
subsection (1)(b), for “the Authority” substitute “the FCA”. |
| |
34 | In section 312B (removal of passport rights from EEA market operator), in |
| 10 |
subsections (1) (in each place), (3), (4)(b), (5), (6), (7)(a) and (b), (8)(b), (9) to |
| |
(11) and (12) (in both places), for “Authority” substitute “FCA”. |
| |
35 | In section 312C (exercise of passport rights by recognised investment |
| |
exchange), in subsections (2) to (6), for “Authority” substitute “FCA”. |
| |
36 | In section 313 (interpretation), in subsection (4), after “clearing services” |
| 15 |
insert “or services falling within section 285(3)(b)”. |
| |
37 | In section 392 (warning and decisions notices: application of provisions |
| |
relating to third party rights and access to evidence)— |
| |
(a) | in paragraph (a), after “section 280(1),” insert “section 312G(1),”, and |
| |
(b) | in paragraph (b), after “section 280(2),” insert “section 312H(1),”. |
| 20 |
38 | In section 412A (approval and monitoring of trade-matching and reporting |
| |
systems), in subsections (1), (2), (4), (5) (in both places), (6) (in both places) |
| |
and (7), for “Authority” substitute “FCA”. |
| |
39 | In section 412B (procedure for approval and suspension or withdrawal of |
| |
approval), in subsections (1) to (6), (7) (in both places), (8) and (9), for |
| 25 |
“Authority” substitute “FCA”. |
| |
| |
| |
Discipline and enforcement |
| |
| |
| 30 |
1 | FSMA 2000 is amended as follows. |
| |
| |
Authorised persons acting without permission |
| |
2 (1) | Section 20 (authorised persons acting without permission) is amended as |
| |
| 35 |
| |
|
| |
|
| |
|
(a) | in the opening words, after “an authorised person” insert “other than |
| |
a PRA-authorised person”, |
| |
(b) | for paragraph (a) substitute— |
| |
“(a) | given to that person under Part 4A, or”, and |
| |
(c) | in the words after paragraph (b), for “Authority” substitute “ FCA”. |
| 5 |
(3) | After that subsection insert— |
| |
“(1A) | If a PRA-authorised person carries on a regulated activity in the |
| |
United Kingdom, or purports to do so, otherwise than in accordance |
| |
with permission given to the person under Part 4A or resulting from |
| |
any other provision of this Act, the person is to be taken to have |
| 10 |
| |
(a) | a requirement imposed by the FCA, and |
| |
(b) | a requirement imposed by the PRA.” |
| |
(4) | In subsection (2), for “The contravention” substitute “A contravention |
| |
within subsection (1) or (1A)”. |
| 15 |
(5) | In subsection (3), for “the contravention”, in the first place, substitute “a |
| |
contravention within subsection (1) or (1A)”. |
| |
| |
| |
3 (1) | In the provisions of Part 8 (market abuse) mentioned in sub-paragraph (2), |
| 20 |
for “Authority” or “Authority’s”, in each place, substitute “FCA” or “FCA’s”. |
| |
(2) | The provisions are: sections 119, 120 (including the heading), 121 to 130A |
| |
| |
(3) | In section 121 (codes: procedure), for subsection (10) substitute— |
| |
“(10) | “Cost benefit analysis” means— |
| 25 |
(a) | an analysis of the costs together with an analysis of the |
| |
benefits that will arise— |
| |
(i) | if the proposed code is issued, or |
| |
(ii) | if subsection (5)(b) applies, from the code that has |
| |
| 30 |
(b) | subject to subsection (10A), an estimate of those costs and of |
| |
| |
(10A) | If, in the opinion of the FCA— |
| |
(a) | the costs or benefits referred to in subsection (10) cannot |
| |
reasonably be estimated, or |
| 35 |
(b) | it is not reasonably practicable to produce an estimate, |
| |
| the cost benefit analysis need not estimate them, but must include a |
| |
statement of the FCA’s opinion and an explanation of it.” |
| |
|
| |
|
| |
|
| |
| |
4 | In Part 14 (disciplinary measures), before section 205 insert— |
| |
“204A | Meaning of “relevant requirement” and “appropriate regulator” |
| |
(1) | The following definitions apply for the purposes of this Part. |
| 5 |
(2) | “Relevant requirement” means a requirement imposed— |
| |
(a) | by or under this Act, or |
| |
(b) | by a qualifying EU provision specified, or of a description |
| |
specified, for the purposes of this subsection by the Treasury |
| |
| 10 |
(3) | The PRA is “the appropriate regulator” in the case of a contravention |
| |
| |
(a) | a requirement that is imposed under any provision of this Act |
| |
| |
(b) | a requirement under section 56(6) where the authorised |
| 15 |
person concerned is a PRA-authorised person and the |
| |
prohibition order concerned is made by the PRA, |
| |
(c) | a requirement under section 59(1) or (2) where the authorised |
| |
person concerned is a PRA-authorised person and the |
| |
approval concerned falls to be given by the PRA. |
| 20 |
(4) | In the case of a contravention of a requirement that is imposed by a |
| |
qualifying EU provision, “the appropriate regulator” for the purpose |
| |
of any provision of this Part is whichever of the PRA or the FCA (or |
| |
both) is specified by the Treasury by order in relation to the |
| |
qualifying EU provision for the purposes of that provision of this |
| 25 |
| |
(5) | In the case of a contravention of a requirement where the |
| |
contravention constitutes an offence, the “appropriate regulator” is |
| |
whichever of the PRA or the FCA has power to prosecute the offence |
| |
| 30 |
(6) | The FCA is “the appropriate regulator” in the case of a contravention |
| |
of any other requirement imposed by or under this Act. |
| |
(7) | The Treasury may by order amend the provisions defining “the |
| |
| |
5 | In section 205 (public censure)— |
| 35 |
(a) | for “Authority”, in the first place, substitute “appropriate regulator”, |
| |
| |
(b) | for the words from “a requirement” to “may” substitute “a relevant |
| |
requirement imposed on the person, it may”. |
| |
6 (1) | Section 206 (financial penalties) is amended as follows. |
| 40 |
| |
(a) | for “Authority” substitute “appropriate regulator”, and |
| |
(b) | for the words from “a requirement” to “UCITS directive,” substitute |
| |
“a relevant requirement imposed on the person,”. |
| |
|
| |
|
| |
|
(3) | In subsection (3), for “Authority” substitute “regulator that imposed the |
| |
| |
7 (1) | Section 206A (suspending permission to carry on regulated activities etc.) is |
| |
| |
(2) | In subsection (1), for “Authority” substitute “appropriate regulator”. |
| 5 |
(3) | After that subsection insert— |
| |
“(1A) | The power conferred by subsection (1) is also exercisable by the FCA |
| |
if it considers that an authorised person has contravened a |
| |
requirement imposed on the person by— |
| |
(a) | the Payment Services Regulations 2009, or |
| 10 |
(b) | the Electronic Money Regulations 2011.” |
| |
| |
(a) | in the definition of “permission”, for “the Authority” substitute “the |
| |
| |
(b) | omit the definition of “relevant requirement”. |
| 15 |
(5) | In subsection (6), for “Authority” substitute “appropriate regulator”. |
| |
8 | In section 207(1) (proposal to take disciplinary measures), for “the |
| |
Authority” substitute “a regulator”. |
| |
9 | In section 208(1) and (4) (decision notice), for “the Authority”, in each place, |
| |
substitute “a regulator”. |
| 20 |
10 | In section 209 (publication), for “the Authority” substitute “the regulator |
| |
| |
11 (1) | Section 210 (statements of policy) is amended as follows. |
| |
(2) | In subsection (1), for “The Authority” substitute “Each regulator”. |
| |
(3) | In subsection (2), for “The Authority’s” substitute “A regulator’s”. |
| 25 |
| |
(a) | for “The Authority” substitute “A regulator”, and |
| |
(b) | after “issued” insert “by it”. |
| |
(5) | In subsection (4), for “replaced, the Authority” substitute “replaced by a |
| |
regulator, the regulator”. |
| 30 |
(6) | In subsection (5), for “The Authority” substitute “A regulator”. |
| |
| |
(a) | after “section” insert “by a regulator”, and |
| |
(b) | for “Authority”, in both places, substitute “regulator”. |
| |
| 35 |
(a) | for “the Authority” substitute “a regulator”, and |
| |
(b) | after “published” insert “by it”. |
| |
(9) | In subsection (8), for “Authority” substitute “regulator”. |
| |
12 (1) | Section 211 (statements of policy: procedure) is amended as follows. |
| |
| 40 |
|
| |
|
| |
|
(a) | for “issuing” substitute “a regulator issues”, and |
| |
(b) | for “Authority”, in both places, substitute “regulator”. |
| |
(3) | In subsections (2) to (4) and (5) (in both places), for “Authority” substitute |
| |
| |
(4) | In subsection (6), for “The Authority” substitute “A regulator”. |
| 5 |
| |
Injunctions and restitution |
| |
13 (1) | Section 380 (injunctions) is amended as follows. |
| |
(2) | In subsections (1) to (3), for “Authority” substitute “appropriate regulator”. |
| |
(3) | In subsection (6)(a)— |
| 10 |
(a) | in the opening words, for “Authority” substitute “appropriate |
| |
| |
(b) | in sub-paragraph (i), for the words from “any directly applicable” to |
| |
“UCITS directive” substitute “a qualifying EU provision specified, or |
| |
of a description specified, for the purposes of this subsection by the |
| 15 |
| |
(c) | in sub-paragraph (ii), for the words from “which the Authority” to |
| |
the end substitute “mentioned in section 402(1)”. |
| |
(4) | In subsection (7), omit paragraph (a) (and the “and” at the end of it). |
| |
(5) | After subsection (7) insert— |
| 20 |
“(8) | The PRA is the “appropriate regulator” in the case of a contravention |
| |
| |
(a) | a requirement that is imposed by the PRA under any |
| |
| |
(b) | a requirement under section 56(6) where the authorised |
| 25 |
person concerned is a PRA-authorised person and the |
| |
prohibition order concerned is made by the PRA, or |
| |
(c) | a requirement under section 59(1) or (2) where the authorised |
| |
person concerned is a PRA-authorised person and the |
| |
approval concerned falls to be given by the PRA. |
| 30 |
(9) | In the case of a contravention of a requirement that is imposed by a |
| |
qualifying EU provision, “the appropriate regulator” is whichever of |
| |
the PRA or the FCA (or both) is specified by the Treasury by order in |
| |
relation to the qualifying EU provision for the purposes of this |
| |
| 35 |
(10) | In the case of a contravention of a requirement where the |
| |
contravention constitutes an offence under this Act, the “appropriate |
| |
regulator” is whichever of the PRA or the FCA has power to |
| |
prosecute the offence (see section 401). |
| |
(11) | The FCA is the “appropriate regulator” in the case of a contravention |
| 40 |
of any other requirement. |
| |
(12) | The Treasury may by order amend the definition of “appropriate |
| |
| |
|
| |
|