Financial Services Bill

Session 2012 - 13
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Financial Services Bill

Financial Services Bill
Schedule 19 — Repeals
312

Schedule 19
Section 95(2)

Repeals

Short title
Extent of repeal

Competition Act 1998
In Schedule 2, paragraph 1 and the italic

heading before it.

5

In Schedule 7, in paragraph 19A(9)—

(a)
“or (in the case of the Financial Services

and Markets Act 2000 (c 8)) an

investigation”, and

(b)
paragraph (m).

10

In Schedule 12, paragraph 8 and the italic

heading before it.

In Schedule 13, in paragraph 26—

(a)
sub-paragraph (1)(a),

(b)
sub-paragraph (2),

15

(c)
in sub-paragraph (3) the words “and

(2)”, and

(d)
sub-paragraph (3)(a).

Insolvency Act 2000
Section 15(2).

Proceeds of Crime Act 2002
In Schedule 11, paragraph 38 and the italic

20

heading before it.

Enterprise Act 2002
Sections 241A(2)(b) and 243(3)(c).

In Schedule 25, sub-paragraphs (2) to (5) and

(10) to (15) of paragraph 40.

Communications Act 2003
In Schedule 16, paragraph 5 and the italic

25

heading before it.

Constitutional Reform Act 2005
In Schedule 7, the entry relating to the Financial

Services and Markets Act 2000.

In Schedule 9, paragraph 70 and the italic

heading before it.

30

Inquiries Act 2005
Section 46.

Companies Act 2006
Section 964(3) and (5).

In Part 2 of Schedule 2, paragraph 38.

In Schedule 11A, paragraph 53.

In Schedule 15, paragraphs 2 and 9.

35

Tribunals, Courts and
In Schedule 6, in the Table in Part 3, the entry

Enforcement Act 2007
relating to the Financial Services and Markets

Tribunal.

Consumers, Estate Agents and
In section 20—

Redress Act 2007
(a)
in subsection (2), in the definition of

40

“designated body”, paragraph (b), and

(b)
subsection (3)(a).

Section 39.

In Schedule 1, paragraph 1(4)(a).

Banking Act 2009
Section 249(4).

45

Financial Services Act 2010
Section 1.

Section 2(2) to (5).

Section 3(2) to (4).

Financial Services Bill
Schedule 20 — Transitional provisions
313

Short title
Extent of repeal

Financial Services Act 2010—
Section 6.

cont.
Section 7.

In Schedule 2, paragraphs 2 to 6, 11 to 14, 27 and

34.

5

Schedule 20
Section 100(1)

Transitional provisions
Interpretation
1
In this Schedule “the relevant commencement” means the time when section
5 comes into force in relation to section 1A(1) of FSMA 2000, (which renames
10
the Financial Services Authority as the Financial Conduct Authority).
References in this Act to FCA or Financial Services Authority
2     (1)
In this Act, unless the context otherwise requires, a reference (however
expressed) to the Financial Services Authority is to be read, in relation to any
time after the relevant commencement, as a reference to the Financial
15
Conduct Authority.
      (2)
In this Act, unless the context otherwise requires, a reference (however
expressed) to the Financial Conduct Authority is to be read, in relation to
any time before the relevant commencement, as a reference to the Financial
Services Authority.
20
Interpretation of documents referring to the Financial Services Authority
3     (1)
In a relevant provision, a reference (however expressed) to the Financial
Services Authority is, in relation to any time after the relevant
commencement, to be read as a reference to the Financial Conduct
Authority, but subject to sub-paragraph (2).
25
      (2)
If the relevant provision is predicated on the continuing exercise by the
Financial Services Authority of a function which has by virtue of this Act
become exercisable by the Prudential Regulation Authority or the Bank of
England, the reference is to be read as being or as the case requires including
a reference to the Prudential Regulation Authority or the Bank.
30
      (3)
Sub-paragraphs (1) and (2) have effect subject to the provisions of any
scheme under paragraph 2 of Schedule 21.
      (4)
In this paragraph “relevant provision” means a provision which—
(a)
has effect before, as well as after, the relevant commencement, and
(b)
is contained in a document other than an enactment.
35
Renaming of companies as Financial Conduct Authority and Prudential Regulation Authority
4     (1)
On the relevant commencement, the registrar of companies for England and
Wales must give effect to section 1A(1) of FSMA 2000 by—

Financial Services Bill
Schedule 20 — Transitional provisions
314

(a)
entering the new name on the register of companies in place of the
former name, and
(b)
issuing a new certificate of incorporation altered to take account of
the new name.
      (2)
On the coming into force of section 5 so far as it relates to section 2A(1) of
5
FSMA 2000, (which renames the Prudential Regulation Authority Limited as
the Prudential Regulation Authority), the registrar of companies for
England and Wales must give effect to that provision by—
(a)
entering the new name on the register of companies in place of the
former name, and
10
(b)
issuing a new certificate of incorporation altered to take account of
the new name.
Threshold conditions
5
Before section 9 comes into force in relation to section 55B of FSMA 2000 (the
threshold conditions), the Treasury must make an order under section 55C
15
of that Act which—
(a)
amends or replaces Parts 1 and 2 of Schedule 6 to that Act, and
(b)
makes provision as to which of the conditions set out in those Parts
of that Schedule are to relate to the discharge by each regulator of its
functions.
20
Consultation
6
In relation to the first order under section 9K of the Bank of England Act
1998, subsection (2) of that section (which relates to consultation) does not
apply.
7     (1)
This paragraph applies where a provision of Part 5 or 6 of this Act, or an
25
amendment of FSMA 2000 made by any provision of this Act, imposes on
the FCA, the PRA or the Bank of England, in connection with the making or
issuing of any rules or other instrument or document—
(a)
a public consultation requirement, or
(b)
a requirement (however expressed) to consult particular persons.
30
      (2)
The requirement may be satisfied—
(a)
by things done (wholly or in part) before the commencement of the
provision in question or the passing of this Act, and
(b)
by things done by the Financial Services Authority or the Bank of
England or by both of them.
35
      (3)
“Public consultation requirement” means a requirement (however
expressed) to publish a draft of the instrument or other document with or
without other material and to invite representations about it.
8     (1)
The first order under section 22A of FSMA 2000 may, if it imposes on the
PRA a public consultation requirement in relation to any statement of policy
40
required by the order to be prepared by the PRA, provide that in relation to
the first statement of policy the requirement may be satisfied—
(a)
by things done (wholly or in part) before the commencement of the
order or the passing of this Act, and
(b)
by things done by the Financial Services Authority or the Bank of
45
England or by both of them.

Financial Services Bill
Schedule 21 — Transfer schemes
Part 1 — Property, rights and liabilities of Financial Services Authority
315

      (2)
“Public consultation requirement” has the same meaning as in paragraph 7.
Information
9     (1)
The FSA may disclose to the PRA any information which the FSA considers
that it is necessary or expedient to disclose to the PRA in preparation for the
commencement of any provision of this Act conferring functions on the
5
PRA.
      (2)
Section 348 of FSMA 2000 (restrictions on disclosure of confidential
information) has effect subject to sub-paragraph (1).
Postal Services Act 2000
10    (1)
The following amendments of the Postal Services Act 2000 have effect until
10
the repeal by the Postal Services Act 2011 of the provisions amended has
been brought into force for all purposes.
      (2)
In section 7 of the Postal Services Act 2000 (exceptions), in subsection (5), in
the definition of “deposit taker”, for “Part 4” substitute “Part 4A”.
      (3)
In Schedule 7 of that Act (disclosure of information), for paragraph 3(2)(s)
15
substitute—
“(s)
the Financial Conduct Authority,
(sa)
the Prudential Regulation Authority,”.
Schedule 21
Section 100(2)

Transfer schemes
20
Part 1
Property, rights and liabilities of Financial Services Authority
Interpretation
1
In this Part of this Schedule—
“the Bank” means the Bank of England;
25
“the FSA” means the Financial Services Authority.
Transfer schemes
2     (1)
The FSA must make one or more schemes under this paragraph for the
transfer of property, rights and liabilities of the FSA—
(a)
to the PRA or the Bank,
30
(b)
to the PRA and the Bank, to be held jointly, or
(c)
to the FSA and either the PRA or the Bank or both, to be held jointly.
      (2)
A scheme under this paragraph made by the FSA is not to be capable of
coming into force unless it is approved by the Treasury.
      (3)
The FSA may not submit a scheme under this paragraph to the Treasury for
35
their approval without the consent of the Bank.

Financial Services Bill
Schedule 21 — Transfer schemes
Part 1 — Property, rights and liabilities of Financial Services Authority
316

      (4)
Sub-paragraph (5) applies if—
(a)
the FSA fails, before such time as may be notified to it by the
Treasury as the latest time for submission of a scheme under this
paragraph in connection with the transfer by or under this Act of
specified functions of the FSA to the PRA, to the Bank, or to the FSA
5
and the PRA, to submit such a scheme to the Treasury for their
approval, or
(b)
the Treasury decide not to approve a scheme that has been submitted
to them by the FSA (either with or without modifications).
      (5)
Where this sub-paragraph applies, the Treasury may, after consultation with
10
the FSA and the Bank, make a scheme under this paragraph for the transfer
of such of the FSA’s property, rights and liabilities as appear to them
appropriate to be transferred as mentioned in sub-paragraph (1) in
consequence of the transfer of functions by or under this Act.
      (6)
The property, rights and liabilities which are the subject of a scheme under
15
this paragraph are transferred in accordance with the provisions of the
scheme on such day as the scheme may specify.
      (7)
The FSA must provide the Treasury with all such information and other
assistance as they may reasonably require for the purposes of, or otherwise
in connection with, the exercise of any power conferred on the Treasury by
20
this paragraph.
      (8)
In the following provisions of this Part of this Schedule a scheme under this
paragraph is referred to as a “transfer scheme”.
3
The property, rights and liabilities that may be the subject of a transfer
scheme include—
25
(a)
any that would otherwise be incapable of being transferred or
assigned, and
(b)
rights and liabilities under a contract of employment.
4
A transfer scheme may—
(a)
apportion, or provide for the apportionment of, property, rights and
30
liabilities,
(b)
define the property, rights and liabilities to be transferred by
specifying them or by describing them (including describing them
by reference to functions that are transferred by or under this Act);
(c)
contain provision for the payment of compensation by the PRA or
35
the Bank to the FSA;
(d)
contain provision for the payment of compensation by the FSA, the
PRA or the Bank to any person whose interests are adversely affected
by the scheme;
(e)
contain supplemental, incidental, transitional and consequential
40
provision.
5
A transfer scheme which relates to rights and liabilities under a contract of
employment—
(a)
must provide for the transfer to which the scheme relates to be
treated as if it were a relevant transfer for the purposes of the
45
Transfer of Undertakings (Protection of Employment) Regulations
2006 (“TUPE”), but
(b)
may, in connection with functions becoming exercisable (alone or
jointly) by the PRA—

Financial Services Bill
Schedule 21 — Transfer schemes
Part 2 — Property, rights and liabilities of Office of Fair Trading
317

(i)
provide for the transfer of rights and liabilities under a
contract of employment to the Bank, and
(ii)
provide for TUPE to have effect as if the relevant transfer
were a transfer to the Bank.
Part 2
5
Property, rights and liabilities of Office of Fair Trading
Interpretation
6
In this Part of this Schedule “the OFT” means the Office of Fair Trading.
Transfer schemes
7     (1)
This paragraph applies if after the passing of this Act the Treasury make an
10
order under section 22 of FSMA 2000 which has the effect that an activity—
(a)
ceases to be an activity in respect of which a licence under section 21
of the Consumer Credit Act 1974 is required or would be required
but for the exemption conferred by subsection (2), (3) or (4) of that
section or paragraph 15(3) of Schedule 3 to FSMA 2000, and
15
(b)
becomes a regulated activity for the purposes of FSMA 2000.
      (2)
The OFT must make one or more schemes under this paragraph for the
transfer of property, rights and liabilities of the OFT to the FCA.
      (3)
A scheme under this paragraph made by the OFT is not to be capable of
coming into force unless it is approved by the Treasury and the Secretary of
20
State.
      (4)
The OFT may not submit a scheme under this paragraph to the Treasury or
the Secretary of State for their approval without the consent of the FCA.
      (5)
Sub-paragraph (6) applies if —
(a)
the OFT fails, before such time as may be notified to it by the
25
Treasury as the latest time for submission of a scheme under this
paragraph in connection with an order falling within sub-paragraph
(1), to submit such a scheme to the Treasury and the Secretary of
State for their approval, or
(b)
the Treasury or the Secretary of State decide not to approve a scheme
30
that has been submitted to them by the OFT (either with or without
modifications).
      (6)
Where this sub-paragraph applies, the Treasury may, with the approval of
the Secretary of State, make a scheme under this paragraph for the transfer
to the FCA of such of the OFT’s property, rights and liabilities as appear to
35
the Treasury appropriate to be transferred to the FCA in consequence of the
order falling within sub-paragraph (1).
      (7)
The property, rights and liabilities which are the subject of a scheme under
this paragraph are transferred in accordance with the provisions of the
scheme on such day as the scheme may specify.
40
      (8)
The OFT must provide the Treasury or the Secretary of State with all such
information and other assistance as either of them may reasonably require
for the purposes of, or otherwise in connection with, the exercise of any
power conferred on the Treasury or the Secretary of State by this paragraph.

Financial Services Bill
Schedule 21 — Transfer schemes
Part 2 — Property, rights and liabilities of Office of Fair Trading
318

      (9)
In the following provisions of this Part of this Schedule a scheme under this
paragraph is referred to as a “transfer scheme”.
8
The property, rights and liabilities that may be the subject of a transfer
scheme include—
(a)
any that would not otherwise be capable of being transferred or
5
assigned, and
(b)
rights and liabilities under a contract of employment.
9
A transfer scheme may—
(a)
apportion, or provide for the apportionment of, property, rights and
liabilities,
10
(b)
define the property, rights and liabilities to be transferred by
specifying them or by describing them (including describing them
by reference to functions that are transferred by the order falling
within paragraph 7(1));
(c)
contain provision for the payment of compensation by the FCA to
15
the OFT;
(d)
contain provision for the payment of compensation by the OFT or the
FCA to any person whose interests are adversely affected by the
scheme;
(e)
contain supplemental, incidental, transitional and consequential
20
provision.
10
A transfer scheme which relates to rights and liabilities under a contract of
employment must provide for the transfer to which the scheme relates to be
treated as if it were a relevant transfer for the purposes of the Transfer of
Undertakings (Protection of Employment) Regulations 2006.
25