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5 | Page 3, leave out lines 16 to 20 and insert— |
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| “(2) | The member appointed under subsection (1)(d) is to be a person who has |
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| executive responsibility within the Bank for the analysis of threats to |
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| |
6 | Page 3, line 28, leave out “court of directors” and insert “Oversight Committee” |
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7 | Page 3, line 28, at end insert “Financial Policy” |
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8 | Page 3, leave out lines 30 and 31 |
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9 | Page 3, line 32, after “the” insert “Financial Policy” |
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10 | Page 3, line 35, leave out from first “to” to end of line 36 and insert— |
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| “(a) | contributing to the achievement by the Bank of the Financial |
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| |
| (b) | subject to that, supporting the economic policy of Her |
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| Majesty’s Government, including its objectives for growth |
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| |
11 | Page 3, line 37, leave out “of that objective” and insert “by the Bank of the Financial |
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| |
12 | Page 4, line 4, leave out “(1)” and insert “(1)(a)” |
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13 | Page 4, line 21, at end insert— |
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| “9CA | Specification of matters relevant to economic policy |
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| (1) | The Treasury may by notice in writing to the Financial Policy |
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| Committee specify for the purposes of section 9C(1)(b) what the |
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| economic policy of Her Majesty’s Government is to be taken to be. |
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| (2) | The Treasury must specify under subsection (1) the matter |
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| |
| (a) | before the end of the period of 30 days beginning with the |
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| day on which section 9C comes into force, and |
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| (b) | at least once in every calendar year following that in which |
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| the first notice under that subsection is given. |
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| (3) | Where the Treasury give notice under this section they must— |
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| (a) | publish the notice in such manner as they think fit, and |
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| (b) | lay a copy of it before Parliament.” |
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14 | Page 4, line 29, at end insert— |
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| “( ) | the responsibility of the Committee in relation to support |
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| for the economic policy of Her Majesty’s Government, |
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| including its objectives for growth and employment;” |
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15 | Page 5, line 13, leave out from “while” to “seek” in line 14 and insert “complying |
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| |
16 | Page 10, line 18, at end insert— |
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| |
| | |
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| |
| 9QA | Duty to prepare explanation |
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| (1) | In connection with the exercise of any of the specified powers, the |
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| Financial Policy Committee must prepare an explanation of— |
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| (a) | the reasons for the Committee’s decision to exercise the |
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| power, in the way in which it is being exercised, and |
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| (b) | the Committee’s reasons for believing that the exercise of |
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| the power, in the way in which it is being exercised, is |
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| compatible with the duties of the Committee under the |
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| |
| (i) | section 9C(1) (as read with section 9C(4)), and |
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| |
| (2) | The specified powers are— |
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| (a) | the power to give a direction under section 9G; |
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| (b) | the power to make recommendations under section 9N, so |
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| far as relating to the exercise of the Bank’s functions in |
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| relation to payment systems, settlement systems and |
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| |
| (c) | the power to make recommendations under section 9O, so |
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| far as relating to the exercise by the Treasury of their power |
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| to make orders under any of the provisions mentioned in |
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| subsection (2) of that section; |
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| (d) | the power to make recommendations under section 9P. |
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| (3) | The explanation required by subsection (1) in relation to the duty in |
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| section 9E(3)(a) must include an estimate of the costs and an |
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| estimate of the benefits that would arise from compliance with the |
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| direction or recommendation in question, unless in the opinion of |
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| the Committee it is not reasonably practicable to include such an |
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| |
17 | Page 10, line 18, at end insert— |
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| |
| 9QB | Duty to review directions and recommendations |
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| (1) | The Financial Policy Committee must— |
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| (a) | before the end of each review period, review each direction |
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| given by it under section 9G, other than a direction revoked |
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| before the end of the review period, and |
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| (b) | prepare a summary of its conclusions. |
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| |
| (a) | in relation to the first review, the period of 12 months |
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| beginning with the day on which the direction was given, |
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| |
| (b) | in relation to subsequent reviews, the period of 12 months |
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| beginning with the day on which the previous review was |
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| |
| (3) | The Financial Policy Committee must maintain arrangements for |
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| the review at regular intervals of any recommendations that it has |
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|
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| |
| | |
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| made under any of sections 9N to 9Q and are of continuing |
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| |
| (4) | The purpose of a review is— |
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| (a) | in the case of a direction, to consider whether the direction |
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| |
| (b) | in the case of a recommendation, to consider whether the |
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| recommendation ought to be withdrawn.” |
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18 | Page 12, line 9, leave out “Committee’s objectives” and insert “objectives set out in |
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| section 9C(1)(a) and (b)” |
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19 | Page 12, line 9, at end insert— |
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| “(4A) | If during the reporting period the Committee has made any |
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| decision in relation to which section 9QA requires the preparation |
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| of an explanation, the financial stability report must include the |
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| |
20 | Page 12, line 9, at end insert— |
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| “(4B) | If during the reporting period the Committee has completed the |
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| review of a direction or recommendation, the financial stability |
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| report must include a summary of the review.” |
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21 | Page 12, line 14, leave out “subsection (3) or (4)” and insert “subsections (3) to (4B)” |
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|
22 | Page 15, line 25, leave out “or” |
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23 | Page 15, line 26, at end insert “or |
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| (d) | a qualifying EU provision that is specified, or of a |
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| description specified, for the purposes of this subsection by |
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| |
24 | Page 17, line 2, at end insert— |
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| “(ea) | the differing expectations that consumers may have in relation to |
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| different kinds of investment or other transaction;” |
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25 | Page 17, line 31, at end insert— |
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| “( ) | the ease with which consumers who may wish to use those services, |
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| including consumers in areas affected by social or economic |
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| deprivation, can access them,” |
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26 | Page 19, line 7, leave out “or” |
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27 | Page 19, line 8, at end insert “, or |
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| (d) | the financing of terrorism.” |
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28 | Page 21, line 7, after “The” insert “FCA” |
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29 | Page 21, line 9, after “the” insert “FCA” |
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30 | Page 21, line 11, after third “the” insert “FCA” |
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31 | Page 21, line 15, after second “the” insert “FCA” |
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32 | Page 21, line 19, after second “the” insert “FCA” |
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33 | Page 24, line 20, leave out “or” |
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| |
| | |
34 | Page 24, line 21, at end insert “or |
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| (d) | a qualifying EU provision that is specified, or of a |
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| description specified, for the purposes of this subsection by |
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| |
35 | Page 25, line 35, at end insert— |
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| |
| |
| (a) | determine its strategy in relation to its objectives, and |
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| (b) | from time to time review, and if necessary revise, the |
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| |
| (2) | Before determining or revising its strategy, the PRA must consult |
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| the court of directors of the Bank of England about a draft of the |
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| strategy or of the revisions. |
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| (3) | The PRA must determine its strategy within 12 months of the |
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| coming into force of this section. |
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| (4) | The PRA must carry out and complete a review of its strategy |
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| before the end of each relevant period. |
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| (5) | The relevant period is 12 months beginning with the date on which |
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| the previous review was completed, except that in the case of the |
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| first review the relevant period is the period of 12 months |
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| beginning with the date on which the strategy was determined |
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| |
| (6) | The PRA must publish its strategy. |
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| (7) | If the strategy is revised the PRA must publish the revised strategy. |
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| (8) | Publication under subsection (6) or (7) is to be in such manner as the |
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| |
36 | Page 26, line 8, at end insert “, and |
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| (b) | the need to minimise any adverse effect on competition in the |
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| relevant markets that may result from the manner in which the PRA |
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| discharges those functions. |
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| (2) | In subsection (1)(b) “the relevant markets” means the markets for services |
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| provided by PRA-authorised persons in carrying on regulated activities.” |
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37 | Page 27, leave out lines 13 to 16 |
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38 | Page 27, line 16, at end insert— |
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| “2KA | The PRA Practitioner Panel |
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| (1) | Arrangements under section 2K must include the establishment and |
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| maintenance of a panel of persons (to be known as “the PRA Practitioner |
|
| Panel”) to represent the interests of practitioners. |
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| (2) | The PRA must appoint one of the members of the PRA Practitioner Panel |
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| |
| (3) | The Treasury’s approval is required for the appointment or dismissal of the |
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| |
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|
| |
| | |
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| (4) | The PRA must appoint to the PRA Practitioner Panel such persons |
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| representing PRA-authorised persons as it considers appropriate. |
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| (5) | The PRA may appoint to the PRA Practitioner Panel such other persons as |
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| it considers appropriate.” |
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39 | Page 28, line 36, leave out “2G” and insert “2G(1)(a)” |
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40 | Page 29, line 2, at end insert— |
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| “( ) | the desirability of sustainable growth in the economy of the United |
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| Kingdom in the medium or long term;” |
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41 | Page 29, line 8, at end insert— |
|
| “(da) | the desirability where appropriate of each regulator exercising its |
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| functions in a way that recognises differences in the nature of, and |
|
| objectives of, businesses carried on by different persons subject to |
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| requirements imposed by or under this Act;” |
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42 | Page 29, line 40, leave out “2G” and insert “2G(1)(a)” |
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43 | Page 31, line 28, leave out from beginning to end of line 11 on page 32 and insert— |
|
| “(1) | The regulators must prepare and maintain a memorandum which |
|
| describes in general terms— |
|
| (a) | the role of each regulator in relation to the exercise of functions |
|
| conferred by or under this Act so far as they relate to with-profits |
|
| |
| (b) | how the regulators intend to comply with section 3D in relation to |
|
| the exercise of those functions so far as they relate to the effecting or |
|
| carrying out of with-profits policies by with-profits insurers. |
|
| (2) | The memorandum required by this section may be combined with the |
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| memorandum required by section 3E. |
|
| (3) | If the memorandum required by this section is contained in a separate |
|
| document, the PRA and the FCA must publish the memorandum as |
|
| currently in force in such manner as they think fit. |
|
| (4) | Subsections (1) to (3) apply only if the effecting or carrying out of with- |
|
| profits policies is a PRA-regulated activity. |
|
| (5) | For the purposes of this section— |
|
| (a) | a “with-profits policy” is a contract of insurance under which the |
|
| policyholder is eligible to receive a financial benefit at the discretion |
|
| |
| (b) | a “with-profits insurer” is a PRA-authorised person who has a Part |
|
| 4A permission, or permission resulting from any other provision of |
|
| this Act, relating to the effecting or carrying out of with-profits |
|
| policies (whether or not the permission also relates to contracts of |
|
| insurance of other kinds). |
|
| (6) | The Treasury may by order amend the definition of “with-profits policy” |
|
| applying for the purposes of this section.” |
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44 | Page 32, leave out line 21 |
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45 | Page 33, line 39, at end insert— |
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|