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| “3IA | Power of PRA in relation to with-profits policies |
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| (1) | Where the first, second and third conditions are met, the PRA may give a |
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| direction under this section to the FCA. |
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| (2) | The first condition is that the FCA is proposing to exercise any of its |
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| regulatory powers in relation to with-profits insurers, a class of with- |
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| profits insurers or a particular with-profits insurer. |
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| (3) | In subsection (2) “regulatory powers”, in relation to the FCA, means its |
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| powers in relation to the regulation of authorised persons, including its |
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| powers under Part 24 (insolvency) but not its powers in relation to consent |
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| for the purposes of section 55F or 55I. |
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| (4) | The second condition is that the proposed exercise of the power relates to |
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| the provision of financial benefits under with-profits policies at the |
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| discretion of the insurer, or affects or may affect the amount, timing or |
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| distribution of financial benefits that are so provided or the entitlement to |
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| future benefits that are so provided. |
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| (5) | The third condition is that the PRA is of the opinion that the giving of the |
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| direction is desirable in order to advance the PRA’s general objective or its |
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| |
| (6) | A direction under this section is a direction requiring the FCA not to |
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| exercise the power or not to exercise it in a specified manner. |
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| (7) | The direction may be expressed to have effect during a specified period or |
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| (8) | The FCA is not required to comply with a direction under this section if or |
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| to the extent that in the opinion of the FCA compliance would be |
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| incompatible with any EU obligation or any other international obligation |
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| |
| (9) | Subsections (1) to (8) apply only if the effecting or carrying out of with- |
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| profits policies is a PRA-regulated activity. |
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| (10) | In this section “with-profits insurer” and “with-profits policy” have the |
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| same meaning as they have for the purposes of section 3F.” |
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46 | Page 33, line 40, at end insert “or 3IA” |
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47 | Page 33, line 42, at end insert “or 3IA” |
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48 | Page 33, line 43, after “3I” insert “or 3IA” |
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49 | Page 34, line 1, at end insert “or 3IA” |
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50 | Page 34, line 2, after “3I” insert “or 3IA” |
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51 | Page 34, line 4, after “3I” insert “or 3IA” |
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52 | Page 34, line 6, after “3I” insert “or 3IA” |
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53 | Page 34, line 7, at end insert— |
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| (a) | publish the direction and statement, or the notice, in such manner |
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| |
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| |
| | |
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| (b) | where the direction or notice relates to a particular authorised |
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| person or a particular with-profits insurer, give a copy of the |
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| direction and statement, or the notice, to that person.” |
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54 | Page 34, leave out lines 14 to 19 |
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55 | Page 34, leave out lines 20 to 28 and insert— |
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| “(7) | Subsection (3A) does not apply where the PRA, after consulting the |
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| Treasury, decides that compliance with that subsection would be against |
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| the public interest, and at any time when this subsection excludes the |
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| application of subsection (3A) in relation to a direction under section 3I, |
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| subsection (5) also does not apply. |
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| (8) | Where the PRA decides that compliance with subsection (3A) would be |
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| against the public interest, it must from time to time review that decision |
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| and if it subsequently decides that compliance is no longer against the |
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| (a) | comply with that subsection, and |
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| (b) | in the case of a direction under section 3I, notify the Treasury for the |
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| purposes of subsection (5).” |
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56 | Page 35, line 37, at end insert “or 3IA” |
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57 | Page 37, line 16, leave out from “with” to “that” in line 18 and insert— |
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| “(a) | a local weights and measures authority in England, Wales |
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| |
| (b) | the Department of Enterprise, Trade and Investment in |
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| | for the provision by the authority or department to the FCA of |
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| services which relate to activities to which this subsection applies. |
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| (5A) | Subsection (5) applies to activities” |
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58 | Page 37, line 22, leave out “22(1A)” and insert “22(1A)(a)” |
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59 | Page 38, line 29, at end insert “, or |
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| (b) | the setting of a specified benchmark.”,” |
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60 | Page 38, line 30, after “(1A),” insert— |
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| “( ) | after subsection (5) insert— |
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| “(6) | “Benchmark” means an index, rate or price that— |
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| (a) | is determined from time to time by reference to the |
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| |
| (b) | is made available to the public (whether free of |
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| charge or on payment), and |
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| (c) | is used for reference for purposes that include one or |
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| |
| (i) | determining the interest payable, or other |
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| sums due, under loan agreements or under |
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| other contracts relating to investments; |
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| (ii) | determining the price at which investments |
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| may be bought or sold or the value of |
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| |
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| |
| | |
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| (iii) | measuring the performance of |
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61 | Page 39, line 16, leave out “22(1A)” and insert “22(1A)(a)” |
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62 | Page 39, line 33, at end insert— |
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| Regulated activities relating to the setting of benchmarks |
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| 24E | The matters with respect to which provisions may be made |
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| under section 22(1A)(b) include, in particular, those described in |
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| general terms in this Part of this Schedule. |
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| 24F | Providing any information or expression of opinion that— |
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| (a) | is required by another person in connection with the |
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| determination of a benchmark, and |
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| (b) | is provided to that person for that purpose. |
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| 24G(1) | Administering the arrangements for determining a benchmark. |
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| (2) | Collecting, analysing or processing information or expressions of |
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| opinion for the purpose of the determination of a benchmark. |
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| Determining or publishing benchmark or publishing connected information |
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| 24H(1) | Determining a benchmark. |
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| (2) | Publishing a benchmark or information connected with a |
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| |
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63 | Insert the following new Clause— |
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| | “Appointed representatives |
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| (1) | Section 39 of FSMA 2000 (appointed representatives) is amended as |
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| |
| (2) | After subsection (1B) insert— |
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| “(1C) | Subsection (1D) applies where an authorised person (“A”)— |
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| (a) | has permission under Part 4A, or permission resulting from |
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| any other provision of this Act, only in relation to one or |
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| more qualifying activities, |
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| (b) | is a party to a contract with another authorised person (A’s |
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| (i) | permits or requires A to carry on business of a |
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| prescribed description (“the relevant business”), and |
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| | |
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| (ii) | complies with such requirements as may be |
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| (c) | is someone for whose activities in carrying on the whole or |
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| part of the relevant business A’s principal has accepted |
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| responsibility in writing. |
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| (1D) | Sections 20(1) and (1A) and 23(1A) do not apply in relation to the |
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| carrying on by A of a relevant additional activity. |
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| (1E) | In subsections (1C) and (1D)— |
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| (a) | “qualifying activity” means a regulated activity which is of |
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| a prescribed kind and relates— |
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| (i) | to rights under a contract of the kind mentioned in |
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| paragraph 23 of Schedule 2, other than one under |
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| which the obligation of the borrower to repay is |
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| |
| (ii) | to rights under a contract of the kind mentioned in |
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| paragraph 23B of that Schedule; |
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| (b) | “relevant additional activity” means a regulated activity |
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| (i) | is not one to which A’s permission relates, and |
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| (ii) | is comprised in the carrying on of the business for |
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| which A’s principal has accepted responsibility.” |
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| (3) | For subsection (2) substitute— |
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| “(2) | In this Act “appointed representative” means— |
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| (a) | a person who is exempt as a result of subsection (1), or |
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| (b) | a person carrying on a regulated activity in circumstances |
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| where, as a result of subsection (1D), sections 20(1) and (1A) |
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| and 23(1A) do not apply.”” |
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64 | Page 42, line 31, after “in” insert “or specified under” |
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65 | Page 42, line 35, after “in” insert “or specified under” |
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66 | Page 46, line 1, leave out “considers” and insert “appears to it” |
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67 | Page 48, line 8, at end insert— |
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| “(6A) | Without prejudice to the generality of subsections (1) and (2), the FCA may, |
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| in relation to an authorised person who has permission to carry on the |
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| regulated activity specified in article 24A of the Financial Services and |
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| Markets Act 2000 (Regulated Activities) Order 2001 (which relates to bids |
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| in emission allowance auctions), exercise its power under this section to |
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| vary the Part 4A permission of the person concerned by removing that |
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| activity from those to which the permission relates if it appears to the FCA |
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| that the person has seriously and systematically infringed the provisions of |
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| paragraph 2 or 3 of Article 59 of the emission allowance auctioning |
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| |
68 | Page 49, line 27, at end insert— |
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| “(5A) | The FCA may refuse an application under subsection (5) if it appears to it |
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| that it is desirable to do so in order to advance any of its operational |
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| |
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