|
|
| |
| | |
|
| (i) | is requested by the CMA group for the purpose of |
|
| |
| (ii) | in the FCA’s opinion, it would be appropriate to |
|
| give to the CMA group for that purpose. |
|
| (4) | A CMA group, in carrying out a relevant investigation, must take |
|
| into account any information given to it under this section. |
|
| (5) | In this section “CMA group” has the same meaning as in |
|
| Schedule 4 to the Enterprise and Regulatory Reform Act 2013. |
|
| 234M | Function of keeping market under review |
|
| (1) | For the purpose of the functions conferred on it by sections 234I |
|
| to 234L the FCA is to have the function of keeping under review |
|
| the market for financial services. |
|
| (2) | The function conferred by subsection (1) is to be carried out with |
|
| a view to (among other things) ensuring that the FCA has |
|
| sufficient information to take informed decisions and to carry out |
|
| its other functions effectively. |
|
| 234N | Exclusion of general duties |
|
| (1) | Section 1B (the FCA’s general duties) does not apply in relation |
|
| to anything done by the FCA in the carrying out of its functions |
|
| by virtue of sections 234I to 234L. |
|
| (2) | But in the carrying out of any functions by virtue of sections 234I |
|
| to 234L, the FCA may have regard to any of the matters in respect |
|
| of which a duty is imposed by section 1B if it is a matter to which |
|
| the CMA is entitled to have regard in the carrying out of those |
|
| |
| 234O | Supplementary provision |
|
| (1) | If any question arises as to whether, by virtue of section 234I or |
|
| 234J, any functions fall to be, or are capable of being, carried out |
|
| by the FCA in relation to any particular case, that question is to |
|
| be referred to, and determined by, the Treasury. |
|
| (2) | No objection is to be taken to anything done under the |
|
| Competition Act 1998 or Part 4 of the Enterprise Act 2002 by or |
|
| in relation to the FCA on the ground that it should have been |
|
| done by or in relation to the CMA.” |
|
| 4 | In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from |
|
| specified action), in subsection (3)(a), after “55I” insert “, a power |
|
| conferred on it by sections 234I to 234M”. |
|
| 5 | In section 348 of FSMA 2000 (restrictions on disclosure of confidential |
|
| information by FCA, PRA etc), after subsection (6) insert— |
|
| “(7) | Nothing in this section applies to information received by a |
|
| primary recipient for the purposes of, or in the discharge of, any |
|
| functions of the FCA under the Competition Act 1998 or the |
|
| Enterprise Act 2002 by virtue of Part 16A of this Act. |
|
| | (For provision about the disclosure of such information, see Part |
|
| 9 of the Enterprise Act 2002.)” |
|
|
|
| |
| | |
|
| 6 | In section 354A of FSMA 2000 (FCA’s duty to co-operate with others), |
|
| after subsection (2) insert— |
|
| “(2A) | Subsection (1) does not apply in relation to the Competition and |
|
| Markets Authority in a case where the FCA has made a reference |
|
| under section 131 of the Enterprise Act 2002 as a result of section |
|
| 234I (but see section 234L).” |
|
| 7 (1) | Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is |
|
| |
| (2) | In paragraph 8 (arrangements for discharging functions), after sub- |
|
| |
| “(5) | In respect of the exercise of a function under Part 1 of the |
|
| Competition Act 1998, the power in sub-paragraph (1) is |
|
| subject to provision in rules made under section 51 of that Act |
|
| by virtue of paragraph 1A of Schedule 9 to that Act.” |
|
| (3) | In paragraph 23 (fees), after sub-paragraph (2) insert— |
|
| “(2A) | The functions referred to in sub-paragraph (1)(a) include |
|
| functions of the FCA under the Competition Act 1998 or the |
|
| Enterprise Act 2002 as a result of Part 16A of this Act; but this |
|
| sub-paragraph is not to be regarded as limiting the effect of the |
|
| definition of “functions” in paragraph 1.” |
|
| |
| Amendments of other legislation |
|
| Company Directors Disqualification Act 1986 |
|
| 8 | In section 9E of the Company Directors Disqualification Act 1986 |
|
| (interpretation of sections 9A to 9D), in subsection (2), after paragraph |
|
| |
| “(h) | the Financial Conduct Authority.” |
|
| |
| 9 | In section 54 of the Competition Act 1998 (regulators), in subsection (1), |
|
| after paragraph (i) insert— |
|
| “(j) | the Financial Conduct Authority.” |
|
| |
| 10 (1) | Section 136 of the Enterprise Act 2002 (investigations and reports on |
|
| market investigation references) is amended as follows. |
|
| (2) | In subsection (7), after paragraph (e) insert— |
|
| “(ea) | in relation to the Financial Conduct Authority, section |
|
| 234J of the Financial Services and Markets Act 2000;”. |
|
| (3) | In subsection (8), after “the Office of Rail Regulation,” insert “the |
|
| Financial Conduct Authority,”. |
|
|
|
| |
| | |
|
| Enterprise and Regulatory Reform Act 2013 |
|
| 11 | In section 52(4) of the Enterprise and Regulatory Reform Act 2013 |
|
| (power to remove concurrent competition functions of sectoral |
|
| regulators), after paragraph (g) insert— |
|
| “(h) | the Financial Conduct Authority.” |
|
| 12 | In Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (the |
|
| Competition and Markets Authority), in paragraph 16 (concurrency |
|
| report), at the end of sub-paragraph (7) insert— |
|
| “(i) | the Financial Conduct Authority.”” |
|
180 | Insert the following new Schedule— |
|
| |
| |
| 1 | The Building Societies Act 1986 is amended as follows. |
|
| Exclusion of small business deposits from funding limit |
|
| 2 (1) | Section 7 (the funding limit) is amended as follows. |
|
| (2) | In subsection (3), omit the “and” at the end of paragraph (a) and after that |
|
| |
| “(aa) | subject to subsection (3A), the principal of, and interest |
|
| accrued on, sums deposited with the society or any |
|
| subsidiary undertaking of the society by a small business |
|
| |
| (3) | After subsection (3) insert— |
|
| “(3A) | In respect of any day by reference to which the value of X falls to |
|
| be calculated for the purposes of subsection (1) in relation to the |
|
| society, the total amount to be disregarded under subsection |
|
| (3)(aa) may not exceed 10% of the amount that would, in the |
|
| absence of subsection (3)(aa), be the value of X on that day.” |
|
| (4) | After subsection (6) insert— |
|
| “(6ZA) | Where a person declares that the person is a small business, the |
|
| person shall, unless the contrary is shown, be conclusively |
|
| presumed for the purposes of this section to be a small business.” |
|
| (5) | After subsection (9) insert— |
|
| “(10) | In this section “small business” means any person (other than an |
|
| individual acting as a sole trader) carrying on a business which |
|
| had a turnover in the relevant financial year of less than |
|
| |
| (11) | For the purposes of subsection (10)— |
|
| (a) | the “relevant financial year”, in relation to any day by |
|
| reference to which the value of X falls to be calculated for |
|
| the purposes of subsection (1) in relation to a building |
|
| society, means the last financial year ending before that |
|
| |
|
|
| |
| | |
|
| (b) | “turnover”, in relation to a small business, means the |
|
| amount derived from the provision of goods and services |
|
| falling within the business’s ordinary activities, after |
|
| deduction of trade discounts, value added tax and any |
|
| other taxes based on the amounts so derived; |
|
| (c) | in respect of any relevant financial year, the reference to |
|
| £1,000,000 includes the equivalent amount in any other |
|
| currency, calculated as at the last day of that year. |
|
| (12) | The Treasury may, by order made by statutory instrument, |
|
| amend the figure for the time being specified in subsections (10) |
|
| |
| (13) | A statutory instrument containing an order under subsection (12) |
|
| is subject to annulment in pursuance of a resolution of either |
|
| |
| 3 (1) | In article 3 of the Building Societies Act 1986 (Substitution of Specified |
|
| Amounts and Modification of the Funding Limits Calculation) Order |
|
| 2007 (S.I. 2007/860), in paragraph 3, for “the modification required by |
|
| this article” substitute “the modifications required by this article and by |
|
| |
| (2) | The amendment by this paragraph of a provision contained in |
|
| subordinate legislation is without prejudice to any power to amend that |
|
| provision by subordinate legislation. |
|
| Ability to create floating charges |
|
| 4 (1) | Omit section 9B (restriction on creation of floating charges). |
|
| (2) | In Schedule 15A (application of other companies insolvency legislation |
|
| to building societies), omit the following paragraphs— |
|
| (a) | paragraph 18 (which modifies section 15 of the Insolvency Act |
|
| |
| (b) | paragraph 20 (which modifies section 19 of that Act); |
|
| (c) | paragraph 40 (which modifies Article 28 of the Insolvency |
|
| (Northern Ireland) Order 1989); |
|
| (d) | paragraph 42 (which modifies Article 31 of that Order). |
|
| (3) | In consequence of the amendment made by sub-paragraph (1)— |
|
| (a) | in section 1(1A)(b), for “, 9A and 9B” substitute “and 9A”; |
|
| (b) | in the Building Societies Act 1997, omit section 11; |
|
| (c) | in section 11(3) of the Banking (Special Provisions) Act 2008, for |
|
| paragraph (c) substitute— |
|
| “(c) | sections 8 and 9A of the Building Societies Act |
|
| 1986 (restrictions on raising funds and borrowing |
|
| and on transactions involving derivative |
|
| |
| (d) | in section 251 of the Banking Act 2009, omit subsection (7); |
|
| (e) | in the Financial Services Act 2012, omit section 55. |
|
| Annual business statements |
|
| 5 (1) | Section 74 (duty of directors to prepare annual business statement) is |
|
| |
|
|
| |
| | |
|
| (2) | In subsection (4), omit the words from “and other officers” to “them”. |
|
| (3) | In subsection (8), omit “or other officer”. |
|
| Summary financial statements |
|
| 6 (1) | Section 76 (summary financial statement for members and depositors) is |
|
| |
| (2) | After subsection (8A) insert— |
|
| “(8AA) | The society shall also— |
|
| (a) | publish the summary financial statement and (where |
|
| applicable) the auditor’s report on a web site, and |
|
| (b) | ensure that the statement and (where applicable) the |
|
| report may be accessed on the web site until the |
|
| publication of the next summary financial statement.” |
|
| (3) | After subsection (8D) insert— |
|
| “(8E) | If, at any time during the period beginning with the publication |
|
| of the summary financial statement and ending with the |
|
| publication of the next summary financial statement, an |
|
| individual for the first time subscribes for shares in the society, |
|
| the society shall at that time notify the individual of the |
|
| information in subsection (8C)(c)(i) to (iii). |
|
| (8F) | In a case where subsection (8E) applies, the society is not |
|
| required under section 115B (right to hard copy version) to send |
|
| the individual a version of the summary financial statement or |
|
| (where applicable) the auditor’s report in hard copy form (within |
|
| the meaning of that section).” |
|
| (4) | Omit subsections (9) to (9E). |
|
| (5) | In subsection (11), for “subsection (9)” substitute “subsection (8AA) or |
|
| |
| 7 | In consequence of the amendments made by paragraph 6— |
|
| (a) | in section 78(6), for “subsections (8) and (9) of section 76 extend” |
|
| substitute “subsection (8) of section 76 extends”; |
|
| (b) | in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary |
|
| |
| Transfers of business: distributions and share rights |
|
| 8 (1) | Section 100 (regulated terms etc: distributions and share rights) is |
|
| |
| (2) | For subsection (8) substitute— |
|
| “(8) | The terms of a transfer of a society’s business may confer a right |
|
| to acquire shares in the successor on a member of the society only |
|
| |
| (a) | held shares in the society throughout the period of two |
|
| years ending with the qualifying day, or |
|
| (b) | on that day, holds deferred shares in the society that are |
|
| of a class described in the transfer agreement; |
|
|
|
| |
| | |
|
| | and it is unlawful for any right in relation to shares to be |
|
| conferred in contravention of this subsection.” |
|
| (3) | In subsection (9), for the words from “who” to “and” substitute “who— |
|
| (a) | held shares in the society throughout the period of two |
|
| years ending with the qualifying day, or |
|
| (b) | on that day, hold deferred shares in the society that are of |
|
| a class described in the transfer agreement; |
|
| |
| Methods of communicating with members etc |
|
| 9 | After section 115 insert— |
|
| “115A | Deemed agreement to use of web site |
|
| (1) | For the purposes of this Act, a person is to be taken to have |
|
| agreed with a building society to access a document, information |
|
| or facility on a web site if— |
|
| (a) | the person has been asked individually by the society to |
|
| agree to access documents, information or facilities |
|
| generally, or documents, information or facilities of the |
|
| description in question, on a web site, and |
|
| (b) | the society has not received a response within the period |
|
| of 28 days beginning with the date on which the society’s |
|
| |
| | This is subject to subsections (2) to (4). |
|
| (2) | A person is not to be taken to have so agreed if the society’s |
|
| |
| (a) | did not state clearly what the effect of a failure to respond |
|
| |
| (b) | was sent less than 12 months after a previous request |
|
| made to the person for the purposes of this section in |
|
| respect of the same or a similar description of document, |
|
| |
| (3) | A person who is taken to have made an agreement by virtue of |
|
| subsection (1) may revoke the agreement. |
|
| (4) | Subsection (1) does not apply in relation to the following |
|
| |
| (a) | a statement required to be sent to members by paragraph |
|
| 1(1) of Schedule 16 (statements in connection with |
|
| |
| (b) | a merger statement (within the meaning of Part 2 of that |
|
| Schedule) required to be sent to members by paragraph 3 |
|
| |
| (c) | a transfer statement or transfer summary (within the |
|
| meaning of Part 1 of Schedule 17) required to be sent to |
|
| members by paragraph 4(1) or (2) of that Schedule; |
|
| (d) | a transfer proposal notification (within the meaning of |
|
| Part 1A of Schedule 17) required to be sent to members by |
|
| paragraph 5B(1) of that Schedule. |
|
|