Financial Services Bill (HL Bill 25)

Financial Services BillPage 190

(b) to repay the principal of, and pay any interest on, any
relevant borrowing and to meet relevant commencement
expenses, and

(c) to maintain adequate reserves.

(2) 5The “qualifying functions” of the PRA are—

(a) its functions under or as a result of this Act, and

(b) its functions under or as a result of a qualifying EU
provision that is specified, or of a description specified, for
the purposes of this sub-paragraph by the Treasury by
10order.

(3) In sub-paragraph (1)(b)

  • “relevant borrowing” means any money borrowed by the
    PRA which has been used for the purpose of meeting
    expenses incurred in relation to its assumption of
    15functions under this Act, and

  • “relevant commencement expenses” means expenses
    incurred by the PRA, the FCA or the Bank of England—

    (a)

    in preparation for the exercise of functions by the
    PRA under this Act, or

    (b)

    20for the purpose of facilitating the exercise by the PRA
    of those functions or otherwise in connection with
    their exercise by it.

(4) For the purposes of sub-paragraph (3) it is irrelevant when the
borrowing of the money, the incurring of the expenses or the
25assumption of functions took place (and, in particular, it is
irrelevant if expenses were incurred by the FCA at a time when it
was known as the Financial Services Authority).

(5) In fixing the amount of any fee which is to be payable to the PRA,
no account is to be taken of any sums which the PRA receives, or
30expects to receive, by way of penalties imposed by it under this
Act.

(6) Any fee which is owed to the PRA under any provision made by
or under this Act may be recovered as a debt due to the PRA.

Services for which fees may not be charged

29 35The power conferred by paragraph 28 may not be used to
require—

(a) a fee to be paid in respect of the discharge of any of the
PRA’s functions under paragraph 13, 14, 19 or 20 of
Schedule 3, or

(b) 40a fee to be paid by any person whose application for
approval under section 59 has been granted.

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Part 4 Miscellaneous

Exemption from liability in damages

30 (1) None of the following is to be liable in damages for anything done
5or omitted in the discharge, or purported discharge, of the PRA’s
functions—

(a) the PRA;

(b) any person (“P”) who is, or is acting as, an officer of, or
member of the staff of, the PRA or a member of its
10governing body;

(c) any person who could be held vicariously liable for things
done or omitted by P, but only in so far as the liability
relates to P’s conduct.

(2) Sub-paragraph (1) does not apply—

(a) 15if the act or omission is shown to have been in bad faith, or

(b) so as to prevent an award of damages made in respect of
an act or omission on the ground that the act or omission
was unlawful as a result of section 6(1) of the Human
Rights Act 1998.

20Accredited financial investigators

31 For the purposes of this Act anything done by an accredited
financial investigator within the meaning of the Proceeds of Crime
Act 2002 who—

(a) is, or is acting as, an officer of, or member of the staff of, the
25PRA or a member of its governing body, or

(b) is appointed by the PRA under section 167 or 168 to
conduct an investigation,

is to be treated as done in the exercise or discharge of a function of
the PRA.

30Amounts required by rules to be paid to the PRA

32 Any amount (other than a fee) which is required by rules to be
paid to the PRA may be recovered as a debt due to the PRA.

Section 10

SCHEDULE 4 EEA passport rights and treaty rights

35Part 1 Amendments of Schedule 3 to FSMA 2000: EEA passport rights

Introductory

1 Schedule 3 to FSMA 2000 (EEA passport rights) is amended as follows.

Financial Services BillPage 192

Exercise of passport rights by EEA firms

2 (1) Paragraph 13 (establishment) is amended as follows.

(2) In sub-paragraphs (1) and (1A), for “Authority”, in each place, substitute
“appropriate UK regulator”.

(3) 5After sub-paragraph (1A) insert—

(1B) Where the PRA receives a consent notice, it must give a copy to the
FCA without delay.

(1C) Where the FCA receives a consent notice it must in prescribed
cases give a copy to the PRA without delay.

(1D) 10In a case where the FCA is the appropriate UK regulator, the
consent of the PRA is required for any notice by the FCA for the
purposes of sub-paragraph (1)(ba) which relates to—

(a) a PRA-regulated activity,

(b) a PRA-authorised person, or

(c) 15a person whose immediate group includes a PRA-
authorised person.

(1E) If the FCA—

(a) receives a consent notice, or

(b) receives under sub-paragraph (1B) a copy of a consent
20notice,

it must prepare for the firm’s supervision.

(1F) If the PRA—

(a) receives a consent notice, or

(b) receives under sub-paragraph (1C) a copy of a consent
25notice which identifies PRA-regulated activities or relates
to a PRA-authorised person,

it must prepare for the firm’s supervision.

(4) In sub-paragraph (2)—

(a) for “Authority” substitute “appropriate UK regulator”, and

(b) 30omit paragraph (a).

(5) In sub-paragraph (3), for “Authority” substitute “appropriate UK regulator”.

(6) In sub-paragraph (4), after the definition of “applicable provisions” insert—

  • “the appropriate UK regulator” means whichever of the FCA
    and the PRA is the competent authority for the purposes of
    35the relevant single market directive;.

3 (1) Paragraph 14 (services) is amended as follows.

(2) In sub-paragraph (1), for “Authority”, in each place, substitute “appropriate
UK regulator”.

(3) After sub-paragraph (1) insert—

(1A) 40Relevant notice” means—

(a) a regulator’s notice, or

Financial Services BillPage 193

(b) where none is required by sub-paragraph (1), a notice
informing the appropriate UK regulator of the firm’s
intention to provide services in the United Kingdom.

(1B) Where the PRA receives a relevant notice, it must give a copy to
5the FCA without delay.

(1C) Where the FCA receives a relevant notice, it must in prescribed
cases give a copy to the PRA without delay.

(1D) If the FCA—

(a) receives a relevant notice, or

(b) 10receives under sub-paragraph (1B) a copy of a relevant
notice,

it must prepare for the firm’s supervision.

(1E) If the PRA—

(a) receives a relevant notice, or

(b) 15receives under sub-paragraph (1C) a copy of a relevant
notice which identifies PRA-regulated activities or relates
to a PRA-authorised person,

it must, unless the firm falls within paragraph 5(e), prepare for the
firm’s supervision.

(4) 20For sub-paragraph (2) substitute—

(2) If the appropriate UK regulator has received a relevant notice, it
must, unless the firm falls within paragraph 5(a) or (e), notify the
firm of the applicable provisions (if any).

(5) Omit sub-paragraph (2A).

(6) 25In sub-paragraph (3)—

(a) for “(2)(b)” substitute “(2)”, and

(b) for the words from “Authority” to the end substitute “appropriate
UK regulator received the relevant notice”.

(7) In sub-paragraph (4), after the definition of “applicable provisions” insert—

  • 30“the appropriate UK regulator” means whichever of the FCA
    and the PRA is the competent authority for the purposes of
    the relevant single market directive;.

4 (1) Paragraph 15A (application for approval to manage UCITS) is amended as
follows.

(2) 35For “Authority” or “Authority’s”, in each place, substitute “appropriate UK
regulator” or “appropriate UK regulator’s”.

(3) After sub-paragraph (6) insert—

(6A) If—

(a) the FCA is the appropriate UK regulator, and

(b) 40the firm is, or the firm’s immediate group includes, a PRA-
authorised person,

the FCA must give the PRA a copy of the notice under sub-
paragraph (4).

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(4) In sub-paragraph (7), before the definition of “specified” insert—

  • “the appropriate UK regulator” means whichever of the FCA
    and the PRA is the competent authority for the purposes of
    the UCITS directive;.

5 (1) 5Paragraph 15B (representations and references to the Tribunal) is amended
as follows.

(2) For “Authority”, in both places, substitute “appropriate UK regulator”.

(3) After sub-paragraph (3) insert—

(4) In this paragraph “the appropriate UK regulator” has the same
10meaning as in paragraph 15A.

6 In paragraph 15C (information to home state regulator), in sub-paragraph
(1), for “Authority” substitute “appropriate UK regulator, as defined in
paragraph 15A(7),”.

7 In paragraph 17 (continuing regulation of EEA firms)—

(a) 15before paragraph (a) insert—

(za) require the FCA and the PRA to notify
each other about EEA firms qualifying
for authorisation;, and

(b) in paragraph (c), for “the Authority” substitute “the FCA or the
20PRA”.

8 In paragraph 18 (giving up right to authorisation), in paragraph (b), for “Part
IV permission” substitute “Part 4A permission”.

Exercise of passport rights by UK firms

9 In Part 3 (exercise of passport rights by UK firms), before the italic heading
25before paragraph 19 insert—

Meaning of “the appropriate UK regulator”

18A In this Part of this Schedule “the appropriate UK regulator”
means—

(a) where the UK firm is a PRA-authorised person, the PRA;

(b) 30in any other case, the FCA.

10 (1) Paragraph 19 (establishment) is amended as follows.

(2) For “Authority”, in each place, substitute “appropriate UK regulator”.

(3) After sub-paragraph (7B) insert—

(7C) Where the PRA is the appropriate UK regulator, it must consult the
35FCA before deciding whether to give a consent notice, except where
sub-paragraph (7A) applies.

(7D) Where the FCA is the appropriate UK regulator, it must consult the
PRA before deciding whether to give a consent notice in relation to a
UK firm whose immediate group includes a PRA-authorised
40person.

11 (1) Paragraph 20 (services) is amended as follows.

Financial Services BillPage 195

(2) For “Authority”, in each place, substitute “appropriate UK regulator”.

(3) After sub-paragraph (3A) insert—

(3AA) Where the PRA is the appropriate UK regulator, it must consult
the FCA before deciding whether to give a consent notice.

(3AB) 5Where the FCA is the appropriate UK regulator, it must consult
the PRA before deciding whether to give a consent notice in
relation to a UK firm whose immediate group includes a PRA-
authorised person.

12 In paragraph 20ZA (information for host state regulator), for “Authority”, in
10each place, substitute “appropriate UK regulator”.

13 In paragraph 20B (notice of intention to market), for “Authority”, in each
place, substitute “appropriate UK regulator”.

14 In paragraph 22 (continuing regulation of UK firms), in sub-paragraph (3)—

(a) for “the Authority’s consent” substitute “the consent of the FCA or
15the PRA”, and

(b) in paragraph (b), for “the Authority” substitute “the FCA or the
PRA”.

15 (1) Paragraph 23 (power to impose requirements) is amended as follows.

(2) For “the Authority”, in each place, substitute “the FCA”.

(3) 20In sub-paragraph (1)(a), for “Part IV permission” substitute “Part 4A
permission”.

(4) In sub-paragraphs (2) and (2A), for “section 45” substitute “section 55L or
55M”.

(5) After sub-paragraph (2A) insert—

(2B) 25This paragraph does not affect any duty of the FCA to consult the
PRA before exercising its power under section 55L or 55M.

16 (1) Paragraph 24 (which relates to UK firms exercising rights under the banking
consolidation directive) is amended as follows.

(2) In sub-paragraph (1)(a), for “Part IV permission” substitute “Part 4A
30permission”.

(3) In sub-paragraph (2)—

(a) for “the Authority”, in the first place, substitute “either regulator”,

(b) in paragraph (a), for “Part IV permission” substitute “Part 4A
permission”, and

(c) 35in paragraph (b), for “the Authority” substitute “that regulator”.

17 After paragraph 24 insert—

Arrangements between FCA and PRA

24A (1) The regulators may make arrangements about—

(a) how they will consult each other when required to do so by
40paragraph 19(7C) or (7D) or 20(3AA) or (3AB) or by
regulations under paragraph 22;

Financial Services BillPage 196

(b) how each of them will act in response to any advice or
representations received from the other.

(2) The arrangements may require one regulator to obtain the consent
of the other in specified circumstances before—

(a) 5giving a consent notice under paragraph 19 or 20, or

(b) exercising specified functions under regulations under
paragraph 22.

(3) The arrangements must be in writing, and must specify—

(a) the EEA rights to which they relate, and

(b) 10the date on which they come into force.

(4) Where arrangements are in force under this paragraph, the
regulators must exercise functions in accordance with the
arrangements.

(5) The regulators must publish any arrangements under this
15paragraph in such manner as they think fit.

18 In paragraph 25 (information to be included in the public record) for
“Authority” substitute “FCA”.

19 In paragraph 26 (UK management companies: delegation of functions), for
“Authority”, in each place, substitute “appropriate UK regulator”.

20 20In paragraph 27 (UK management companies: withdrawal of authorisation),
for “Authority”, in each place, substitute “appropriate UK regulator”.

21 In paragraph 28 (management companies: request for information), for
“Authority”, in each place, substitute “appropriate UK regulator”.

Part 2 25Amendments of Schedule 4 to FSMA 2000: Treaty rights

22 Schedule 4 to FSMA 2000 (Treaty rights) is amended as follows.

23 (1) Paragraph 3 (exercise of Treaty rights) is amended as follows.

(2) In sub-paragraph (2), for “Authority” substitute “appropriate UK regulator”.

(3) After that sub-paragraph insert—

(2A) 30In sub-paragraph (2) “the appropriate UK regulator” means—

(a) where any of the activities to which the notification under
that sub-paragraph relates is a PRA-regulated activity, the
PRA;

(b) in any other case, the FCA.

(2B) 35Where the PRA receives a notification under sub-paragraph (2), it
must give a copy to the FCA without delay.

(2C) Where the FCA receives a notification under sub-paragraph (2), it
must in prescribed cases give a copy to the PRA without delay.

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24 After paragraph 3 insert—

Notification between UK regulators

3A Regulations may require the PRA and the FCA to notify each other
about Treaty firms qualifying for authorisation.

25 (1) 5Paragraph 4 (permission) is amended as follows.

(2) In sub-paragraph (3)—

(a) for “a Part IV permission” substitute “a Part 4A permission”, and

(b) for “Authority” substitute “appropriate UK regulator”.

(3) In sub-paragraph (4), for “Authority” substitute “appropriate UK regulator”.

(4) 10After that sub-paragraph insert—

(5) The appropriate UK regulator” means—

(a) where the Treaty firm is a PRA-authorised person, the
FCA or the PRA;

(b) in any other case, the FCA.

26 (1) 15Paragraph 5 (notice to Authority) is amended as follows.

(2) In sub-paragraph (2), for “the Authority” substitute “the appropriate UK
regulator”.

(3) After sub-paragraph (2) insert—

(2A) The appropriate UK regulator” means—

(a) 20where any of the activities to which the notice relates is a
PRA-regulated activity, the PRA;

(b) in any other case, the FCA.

(2B) Where the PRA receives a notice under sub-paragraph (2), it must
give a copy to the FCA without delay.

(2C) 25Where the FCA receives a notice under sub-paragraph (2) from—

(a) a PRA-authorised person, or

(b) a person whose immediate group includes a PRA-
authorised person,

it must give a copy to the PRA without delay.

(4) 30For sub-paragraph (4) substitute—

(4) Subsections (1), (4) and (8) of section 55U apply to a notice under
sub-paragraph (2) as they apply to an application for a Part 4A
permission.

(5) In the italic heading immediately before paragraph 5, for “Authority”
35substitute “UK regulator”.

Part 3 Amendments of sections 34 and 35 of FSMA 2000: EEA firms and Treaty firms

27 (1) Section 34 of FSMA 2000 (EEA firms) is amended as follows.

(2) In subsection (2), for “the Authority” substitute “the appropriate regulator”.

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(3) After that subsection insert—

(2A) In subsection (2) “the appropriate regulator” means—

(a) in the case of a PRA-authorised person, the PRA, and

(b) in any other case, the FCA.

(4) 5In subsection (3), for “Part IV permission” substitute “Part 4A permission”.

28 (1) Section 35 of FSMA 2000 (Treaty firms) is amended as follows.

(2) In subsection (2), for “the Authority” substitute “the appropriate regulator”.

(3) After that subsection insert—

(2A) In subsection (2) “the appropriate regulator” means—

(a) 10in the case of a PRA-authorised person, the PRA, and

(b) in any other case, the FCA.

(4) In subsection (3), for “Part IV permission” substitute “Part 4A permission”.

Part 4 Amendments of Part 13 of FSMA 2000: Powers of intervention

29 15Part 13 of FSMA 2000 (incoming firms: intervention by Authority) is
amended as follows.

30 In the heading to Part 13, for “Authority” substitute “FCA or PRA”.

31 In section 193 (interpretation of Part 13), in subsection (1), in the definition
of “power of intervention”, for “the Authority” substitute “the FCA or the
20PRA”.

32 (1) Section 194 (general grounds on which power of intervention is exercisable)
is amended as follows.

(2) In subsection (1)—

(a) for “Authority”, in each place, substitute “appropriate regulator”,

(b) 25in paragraph (c), for the words from “meet” to the end substitute
“advance—

(i) in the case of the FCA, one or more of its
operational objectives, and

(ii) in the case of the PRA, any of its objectives.

(3) 30After subsection (1A) insert—

(1B) The appropriate regulator” means—

(a) where the incoming firm is a PRA-authorised person, the
FCA or the PRA;

(b) in any other case, the FCA.

(4) 35In subsection (3), for “Authority”, in each place, substitute “FCA”.

33 (1) Section 194A (contravention by relevant EEA firm with UK branch of
requirement under markets in financial instruments directive) is amended
as follows.

(2) For “Authority” or “Authority’s”, in each place (and in the heading),
40substitute “appropriate regulator” or “appropriate regulator’s”.

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(3) After subsection (7) insert—

(8) Subsection (4) is not to be regarded as requiring the PRA to take
action in relation to the contravention of a requirement falling within
subsection (3) in a case where it is satisfied the the FCA is required to
5act, and is acting or has acted, under subsection (4)—

(a) in relation to that requirement, or

(b) where that requirement is imposed by rules made by the
PRA, in relation to an identical requirement imposed by rules
made by the FCA.”

(9) 10“The appropriate regulator” means—

(a) where the relevant EEA firm is a PRA-authorised person, the
FCA or, subject to subsection (8), the PRA;

(b) in any other case, the FCA.

34 (1) Section 195 (exercise of power in support of overseas regulator) is amended
15as follows.

(2) In subsection (1), for “Authority” substitute “appropriate regulator”.

(3) In subsection (2), for “Authority’s” substitute “appropriate regulator’s”.

(4) After subsection (2) insert—

(2A) The appropriate regulator” means—

(a) 20where the incoming firm is a PRA-authorised person, the
FCA or the PRA;

(b) in any other case, the FCA.

(5) In subsection (4)—

(a) in paragraph (a), for “the Authority” substitute “either regulator”,
25and

(b) omit paragraph (b).

(6) In subsections (5) to (8), for “Authority”, in each place, substitute
“appropriate regulator”.

35 (1) Section 195A (contravention by relevant EEA firm or EEA UCITS of
30directive requirement: home state regulator primarily responsible for
securing compliance) is amended as follows.

(2) For “Authority” or “Authority’s”, in each place, substitute “appropriate
regulator” or “appropriate regulator’s”.

(3) After subsection (11) insert—

(11A) 35Subsection (4) is not to be regarded as requiring the PRA to notify the
home state regulator in relation to the contravention of a
requirement falling within subsection (2) or (3) in a case where the
PRA is satisfied the the FCA is required to act, and is acting or has
acted, under subsection (4) in relation to that requirement.

(4) 40In subsection (12), before the definition of “home state” insert—

  • “the appropriate regulator” means—

    (a)

    where the relevant EEA firm is a PRA-authorised
    person, the FCA or, subject to subsection (11A), the
    PRA;

    Financial Services BillPage 200

    (b)

    in any other case, the FCA;.

36 For section 196 substitute—

196 The power of intervention

(1) If a regulator is entitled to exercise its power of intervention in
5respect of an incoming firm under this Part, it may impose any
requirement in relation to the firm which that regulator could
impose if—

(a) the firm’s permission was a Part 4A permission; and

(b) the regulator was entitled to exercise its power under section
1055L(3) or 55M(3).

(2) The FCA must consult the PRA before exercising its powers by virtue
of this section in relation to—

(a) a PRA-authorised person, or

(b) a member of a group which includes a PRA-authorised
15person.

(3) The PRA must consult the FCA before exercising its powers by virtue
of this section.

37 (1) Section 197 (procedure on exercise of power of intervention) is amended as
follows.

(2) 20In subsection (2), for “Authority” substitute “regulator”.

(3) In subsection (3), for “the Authority” substitute “a regulator”.

(4) In subsection (4)—

(a) in paragraph (c), for “Authority’s” substitute “regulator’s”, and

(b) in paragraph (d), for “Authority” substitute “regulator”.

(5) 25In subsections (5) to (7), for “Authority”, in each place, substitute
“regulator”.

38 (1) Section 198 (power to apply to court for injunction in respect of certain
overseas insurance companies) is amended as follows.

(2) In subsections (1) to (3), for “Authority”, in each place, substitute
30“appropriate regulator”.

(3) After subsection (3) insert—

(3A) The appropriate regulator” means whichever regulator is, at the
time when the request is received, the competent authority for the
purposes of the provision referred to in subsection (1)(a), (b) or (c).

39 (1) 35Section 199 (additional procedure for EEA firms in certain cases) is amended
as follows.

(2) In subsection (1), for “the Authority” substitute “a regulator”.

(3) In subsection (2)(a)(i), for “the Authority” substitute “that regulator”.

(4) In subsections (3) to (10), for “Authority” substitute “regulator”.

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(5) After subsection (10) insert—

(11) Subsection (3) is not to be regarded as requiring the PRA to take
action in relation to the contravention of a relevant requirement in a
case where it is satisfied that the FCA is required to act, and is acting
5or has acted, under subsection (3)—

(a) in relation to that requirement, or

(b) where that requirement is imposed by rules made by the
PRA, in relation to an identical requirement imposed by rules
made by the FCA.

40 (1) 10Section 199A (management companies: loss of authorisation) is amended as
follows.

(2) In subsection (2), for “Authority”, in both places, substitute “appropriate
regulator”.

(3) For subsection (4) substitute—

(4) 15In this section—

  • “the appropriate regulator” means whichever of the FCA and
    the PRA is the competent authority for the purposes of the
    UCITS directive;

  • “collective investment scheme” has the same meaning as in
    20Part 17.

41 (1) Section 200 (rescission and variation of requirements) is amended as follows.

(2) In subsection (1), for “The Authority” substitute “Either regulator”.

(3) In subsection (2)—

(a) for “the Authority”, in the first place, substitute “either regulator”,
25and

(b) for “the Authority”, in the second place, substitute “the regulator”.

(4) In subsections (3) and (4), for “Authority” substitute “regulator”.

(5) In subsection (5)—

(a) for “the Authority”, in the first place, substitute “either regulator”,
30and

(b) in paragraph (a), for “the Authority” substitute “the regulator”.

42 For section 201 substitute—

201 Effect of certain requirements on other persons

If either regulator, in exercising its power of intervention, imposes on
35an incoming firm a requirement of the kind mentioned in subsection
(4) of section 55P, the requirement has the same effect in relation to
the firm as it would have in relation to an authorised person if it had
been imposed on the authorised person by the regulator acting
under section 55L or 55M.

43 40In section 202 (contravention of requirement imposed under Part 13), in
subsection (1), for “the Authority” substitute “a regulator”.

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Section 13

SCHEDULE 5 Performance of regulated activities

1 Part 5 of FSMA 2000 is amended as follows.

2 (1) Section 58 (applications relating to prohibition orders: procedure and right
5to refer to Tribunal) is amended as follows.

(2) In subsections (2) to (5), for “Authority” substitute “appropriate regulator”.

(3) After subsection (5) insert—

(6) The appropriate regulator” means the regulator to which the
application is made.

3 10In section 59 (approval for particular arrangements), omit subsection (9).

4 (1) Section 60 (applications for approval), for “Authority” or “Authority’s”, in
each place, substitute “appropriate regulator” or “appropriate regulator’s”.

(2) For subsection (3) substitute—

(3) At any time after the application is received and before it is
15determined, the appropriate regulator may require the applicant to
provide it with such further information as it reasonably considers
necessary to enable it to determine the application or, as the case
requires, to decide whether to give consent.

(3) In subsection (6), for “Part IV” substitute “Part 4A”.

(4) 20After subsection (6) insert—

(7) The PRA must consult the FCA before—

(a) giving a direction under subsection (2)(a) in relation to a class
of applicants, or

(b) imposing a requirement under subsection (2)(b) on a class of
25applicants.

(8) The PRA must as soon as practicable notify the FCA of the receipt or
withdrawal of an application to the PRA, unless the case is one in
which by virtue of arrangements under section 59B the consent of the
FCA is not required.

(9) 30“The appropriate regulator”—

(a) in relation to a controlled function which is of a description
specified in rules made by the FCA, means the FCA;

(b) in relation to a controlled function which is of a description
specified in rules made by the PRA, means the PRA, and for
35the purposes of subsection (3) also includes the FCA in cases
where the consent of the FCA is required.

5 (1) Section 61 (determination of applications) is amended as follows.

(2) In subsection (1), for “The Authority may grant an application made under
section 60” substitute “The regulator to which an application is made under
40section 60 may grant the application”.

(3) In subsection (2)—

(a) for “the Authority” substitute “the regulator”, and

Financial Services BillPage 203

(b) after “general rules” insert “made by that regulator”.

(4) After subsection (2) insert—

(2A) Subsections (1) and (2) apply in relation to the giving by the FCA of
any required consent as they apply in relation to the grant of the
5application.

(5) In subsection (3), for the words from the beginning to “determine” substitute
“The regulator to which an application is made under section 60 must,
before the end of the period for consideration, determine”.

(6) After subsection (3) insert—

(3A) 10The period for consideration”—

(a) in any case where the application under section 60 is made by
a person applying for permission under Part 4A (see section
60(6)), means whichever ends last of—