Financial Services Bill

Session 2012 - 13
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Financial Services Bill

Financial Services Bill
Schedule 15 — The consumer financial education body
272

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
In paragraph 5 in sub-paragraph (1), for “section 6A(1)” substitute “section
5
3R(3)”.
6
For paragraph 6 (and the italic heading before it) substitute—
“Discharge of functions: considerations
6
In discharging the consumer financial education function the
consumer financial education body must have regard to the duty
10
of the FCA to advance its operational objectives.
Relationship with the FCA
6A    (1)
The 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.
15
      (2)
The consumer financial education body and the FCA must
prepare and maintain a memorandum describing how they intend
to 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
20
appearing to it to be best calculated to bring it to the attention of
the public.
6B
If 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
25
objectives, it must disclose that information to the FCA.”
7
In paragraph 7 (budget) for “Authority”, in each place, substitute “FCA”.
8
In paragraph 8 (annual plan)—
(a)
for “Authority”, in each place, substitute “FCA”, and
(b)
in sub-paragraph (6), after paragraph (d) insert—
30
“(da)
the Smaller Business Practitioner Panel;”.
9
In paragraph 9 (annual reports)—
(a)
for “Authority”, in each place, substitute “FCA”, and
(b)
at the end insert—
    “(5)
The Treasury may—
35
(a)
require the consumer financial education body to
comply with any provision of the Companies Act
2006 about accounts and their audit which would
not otherwise apply to it, or
(b)
direct that any provision of that Act about accounts
40
and their audit is to apply to the consumer financial
education body with such modifications as are

Financial Services Bill
Schedule 15 — The consumer financial education body
273

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
order for specific performance under section 45 of the
5
Court of Session Act 1988.
      (7)
Proceedings under sub-paragraph (6) may be brought only
by the Treasury.”
10
After paragraph 9 insert—
“Audit of accounts
10
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)
The Comptroller and Auditor General must—
(a)
examine, certify and report on accounts received under
15
this paragraph, and
(b)
send a copy of the certified accounts and the report to the
Treasury.
      (3)
The Treasury must lay the copy of the certified accounts and the
report before Parliament.
20
      (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
education body is exempt from the requirements of Part 16 of the
Companies Act 2006 (audit) and its balance sheet must contain a
25
statement to that effect.
      (6)
In this paragraph “annual accounts” has the meaning given by
section 471 of the Companies Act 2006.”
11
In paragraph 11 (meaning of “relevant costs”) for “Authority” substitute
“FCA”.
30
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
In paragraph 15 (reviews of use of resources), for “Authority”, in each place,
substitute “FCA”.
35
15
In the title to the Schedule, in the marginal reference, for “Section 6A”
substitute “Section 3R”.

Financial Services Bill
Schedule 17 — Amendments of Banking Act 2009 related to Part 2 of this Act
Part 1 — Amendments of Part 1 of the Act
274

Schedule 16
Section 43

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)
in the heading, for “Authority’s” substitute “FCA’s”.
5
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
In section 330 (consultation)—
10
(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
the benefits that will arise—
15
(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
and of those benefits.
20
(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
estimate,
25

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,
substitute “FCA”.
30
6
In section 332 (rules relating to persons to whom the general prohibition
does not apply), for “Authority”, in each place, substitute “FCA”.
Schedule 17
Section 90

Amendments of Banking Act 2009 related to Part 2 of this Act
Part 1
35
Amendments of Part 1 of the Act
1
Part 1 of the Banking Act 2009 is amended as follows.

Financial Services Bill
Schedule 17 — Amendments of Banking Act 2009 related to Part 2 of this Act
Part 1 — Amendments of Part 1 of the Act
275

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

“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—
““the PRA” means the Prudential Regulation Authority,
10
“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)
the FCA, and”.
15
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)
Section 6 (code of practice: procedure) is amended as follows.
20
      (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)
the FCA,
25
(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)
As soon as is reasonably practicable after re-issuing the code of
30
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)
In subsection (4), for “FSA” substitute “PRA”.
35
      (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

Financial Services Bill
Schedule 17 — Amendments of Banking Act 2009 related to Part 2 of this Act
Part 1 — Amendments of Part 1 of the Act
276

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)
at the end of paragraph (a) insert—
5
“(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)
the FCA, and”.
10
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
In section 10 (Banking Liaison Panel), in subsection (3), for paragraph (c)
15
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)
and the “and” following it, substitute—
20
“(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)
the PRA,
25
(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)
the FCA, and”.
30
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
In section 28 (onward transfer), in subsection (6), for paragraph (a) and the
35
“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
the “and” following it, substitute—
40
“(a)
the PRA,
(aa)
the FCA, and”.
18
In section 30 (bridge bank: share transfers), in subsection (5), for paragraph

Financial Services Bill
Schedule 17 — Amendments of Banking Act 2009 related to Part 2 of this Act
Part 1 — Amendments of Part 1 of the Act
277

(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
paragraph (a) and the “and” following it, substitute—
5
“(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)
the PRA,
10
(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)
the FCA, and”.
15
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
In section 44 (reverse property transfer), in subsection (6), for paragraph (a)
20
and the “and” following it, substitute—
“(a)
the PRA,
(aa)
the FCA, and”.
24
In section 45 (temporary public ownership: property transfer), in subsection
(8), for paragraph (a) and the “and” following it, substitute—
25
“(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)
the PRA,
30
(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)
In subsection (2), for “the FSA are” substitute “the PRA is”.
35
      (3)
In subsection (5), for paragraph (a) and the “and” following it, substitute—
“(a)
the PRA,
(aa)
the FCA, and”.

Financial Services Bill
Schedule 17 — Amendments of Banking Act 2009 related to Part 2 of this Act
Part 1 — Amendments of Part 1 of the Act
278

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
modifications specified in the Table apply.
5
(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;
“immediate group” has the meaning given by section 421ZA of
10
the Financial Services and Markets Act 2000;
“PRA-authorised person” has the meaning given by section
2B(5) of that Act.
TABLE OF MODIFICATIONS
15

Provision
Modification

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

20

group 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

as a member of its immediate group a PRA-

25

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
Ignore subsection (1)(c).

30

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
Subsection (6)(a) does not apply unless the bank has

35

26A
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-

authorised person.

40