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substitute—

(1) In this Part—

(a) “the PRA” means the Prudential Regulation Authority, and

(b) “the FCA” means the Financial Conduct Authority.

32 5In section 95 (application), in subsection (1)(b), for “FSA” substitute “PRA”.

33 In section 96 (grounds for applying), for “FSA”, in each place, substitute
“PRA”.

34 In section 97 (grounds for making), in subsection (1), for “FSA” substitute
“PRA”.

35 10In section 98 (commencement), in subsection (2), for “FSA”, in both places,
substitute “PRA”.

36 (1) Section 100 (liquidation committee) is amended as follows.

(2) For subsection (2) substitute—

(2) The liquidation committee is to consist initially of—

(a) 15two individuals nominated by the Bank of England,

(b) one individual nominated by the PRA,

(c) one individual nominated by the FCA, and

(d) one individual nominated by the FSCS.

(3) In subsection (6)(c), for “and the FSA” substitute “, the PRA and the FCA”.

37 20In section 101 (liquidation committee: supplemental), in subsection (7), for
“FSA” substitute “PRA, the FCA”.

38 In section 103 (general powers, duties and effect), in the Table—

(a) in the entry relating to section 147 of the Insolvency Act 1986, for
“FSA” substitute “PRA”, and

(b) 25in the entry relating to section 241 of that Act, for “FSA” substitute
“PRA”.

39 (1) Section 108 (removal by court) is amended as follows.

(2) In subsection (1)(b), for “FSA” substitute “PRA”.

(3) In subsection (2)—

(a) 30for “FSA” substitute “PRA”, and

(b) after “England” insert “and the FCA”.

(4) In subsection (3), for “FSA” substitute “PRA and the FCA”.

40 In section 109 (removal by creditors), in subsection (4) for “and the FSA”
substitute “, the PRA and the FCA”.

41 35In section 113 (company voluntary arrangement), in subsection (2)(b), for
sub-paragraph (i) substitute—

(i) the PRA,

(ia) the FCA,.

42 In section 115 (dissolution), in subsection (2)(b), for sub-paragraph (i)
40substitute—

(i) the PRA,

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(ia) the FCA,.

43 In section 117 (bank insolvency as alternative order), in subsection (2)(a)—

(a) for “FSA” substitute “PRA”, and

(b) after “England” insert “and the FCA”.

44 (1) 5Section 120 (notice of preliminary steps) is amended as follows.

(2) For “FSA”, in each place (including the heading), substitute “PRA”.

(3) In subsection (10), in paragraph (a), after “England” insert “and the FCA”.

45 After section 129 insert—

129A Banks not regulated by PRA

(1) 10In the application of this Part to an FCA-regulated bank the
modifications specified in the Table apply.

(2) In this section—

TABLE OF MODIFICATIONS
20
Provision Modification
Section 95 Treat the reference to the PRA in
subsection (1) as a reference to the FCA.
Section 96
(a)

Treat the references to the PRA in
25subsections (2) and (3) as references
to the FCA.

(b)

If the bank has as a member of its
immediate group a PRA-authorised
person the Bank of England must
30consult the PRA before applying
for a bank insolvency order.

(c)

The FCA must consult the PRA
before applying for a bank
insolvency order.


35
Section 97 Treat the reference to the PRA in
subsection (1) as a reference to the FCA.
Section 98 Treat the references to the PRA in
subsection (2) as references to the FCA.

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Provision Modification
Section 100
(a)

Treat the reference to two
individuals in subsection (2)(a) as a
reference to one individual.

(b)

5Ignore subsection (2)(b).

(c)

Ignore the reference to the PRA in
subsection (6)(c).


Section 101 Ignore the reference to the PRA in
10subsection (7).
Section 103 In the Table, in the entries relating to
sections 147 and 241 of the Insolvency Act
1986, treat the reference to the PRA as a
reference to the FCA.
Section 108
(a)

15Treat the reference to the PRA in
subsections (1) and (2) as a
reference to the FCA.

(b)

Ignore the duty to consult the FCA
in subsection (2).

(c)

20Ignore the reference to the PRA in
subsection (3).


Section 109 Ignore the reference to the PRA in
subsection (4).
Section 113 25Ignore subsection (2)(b)(i).
Section 115 Ignore subsection (2)(b)(i).
Section 117
(a)

Treat the reference to the PRA in
subsection (2) as a reference to the
FCA.

(b)

30Ignore the duty to obtain the
consent of the FCA in subsection
(2)(a).


Section 120
(a)

Treat the references to the PRA in
35subsections (5), (7) and (10) as
references to the FCA.

(b)

Ignore the duty to inform the FCA
in subsection (10)(a).


40Part 3 Amendments of Part 3 to the Act

46 Part 3 of the Banking Act 2009 is amended as follows.

47 In section 147 (administrator’s proposals), in subsection (6), for “FSA”
substitute “PRA and a copy of it to the FCA”.

48 45In section 153 (successful rescue), in subsection (3), for “FSA” substitute
“PRA and the FCA”.

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49 In section 157 (other processes), in subsection (1), for “Before exercising an
insolvency power in respect of a residual bank the FSA” substitute “Before
the PRA or the FCA exercises an insolvency power in respect of a residual
bank, whichever of them is exercising the power”.

50 5After section 157 insert—

157A Banks not regulated by PRA

(1) In the application of this Part to an FCA-regulated bank the
modifications specified in the Table apply.

(2) In this section “FCA-regulated bank” means a bank which does not
10carry on any activity which is a PRA-regulated activity for the
purposes of the Financial Services and Markets Act 2000.

TABLE OF MODIFICATIONS
Provision Modification
Section 147 The bank administrator must send the
15statement to the FCA (and need not send a
copy of it to the PRA).
Section 153 Ignore the reference to the PRA in
subsection (3).
Section 157 Ignore the reference to the PRA in
20subsection (1).

51 In section 166 (interpretation: general), for subsection (2) substitute—

(2) In this Part—

25Part 4 Amendments of Parts 4 to 6 of the Act

52 Parts 4 to 6 of the Banking Act 2009 are amended as follows.

53 (1) Section 183 (interpretation of Part 5) is amended as follows.

(2) In paragraph (c)—

(a) 30for “section 3(2)” substitute “section 1I”, and

(b) omit “(market confidence)”.

(3) For paragraph (e), and the “and” before it, substitute—

(e) the FCA” means the Financial Conduct Authority,

(f) “Part 4A permission” has the meaning given by section 55A
35of the Financial Services and Markets Act 2000,

(g) “the PRA” means the Prudential Regulation Authority,

(h) “PRA-regulated activity” has the meaning given by section
22A of the Financial Services and Markets Act 2000, and

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(i) “recognised investment exchange” has the meaning given by
section 285 of that Act.

54 In section 223 (termination of right to issue), in subsections (5) and (6), for
“Part 4” substitute “Part 4A”.

55 (1) 5Section 232 (definition) is amended as follows.

(2) In subsections (2) and (6)(a), for “Part 4” substitute “Part 4A”.

(3) In subsection (5B), in the definition of “rules”, for “section 139(1)” substitute
“section 137B(1)”.

(4) After subsection (6) insert—

(7) 10The Treasury may by order amend the definition of “investment
activity” in subsection (5B), including by defining that term by
reference to rules or guidance made by the PRA or the FCA under the
Financial Services and Markets Act 2000.

56 In section 234 (regulations: details), for subsection (8)(b) substitute—

(b) 15the Prudential Regulation Authority,

(ba) the Financial Conduct Authority,.

57 In section 235 (regulations: procedure), at the end insert—

(6) An order under section 232(7)—

(a) is to be made by statutory instrument, and

(b) 20is subject to annulment in pursuance of a resolution of either
House of Parliament.

58 In section 246 (information), in subsection (2)—

(a) for paragraph (b) substitute—

(b) the Prudential Regulation Authority;

(ba) 25the Financial Conduct Authority;, and

(b) in paragraph (d), for “or the Financial Services Authority” substitute,
“the Prudential Regulation Authority or the Financial Conduct
Authority”.

59 (1) Section 249 (functions) is amended as follows.

(2) 30In subsection (1)—

(a) for “Financial Services Authority” substitute “Prudential Regulation
Authority or the Financial Conduct Authority”, and

(b) for “the Authority” substitute “that authority”.

(3) In subsection (2), for “Financial Services Authority” substitute “Prudential
35Regulation Authority or the Financial Conduct Authority”.

(4) Omit subsection (3).

60 In section 250 (information), for “Financial Services Authority” substitute
“Prudential Regulation Authority.”

61 (1) Section 259 (statutory instruments) is amended as follows.

(2) 40In the entry in the Table relating to section 232, for “232” substitute “232(6)”.

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(3) After that entry insert—

232(7) Investment banks: definition
of investment activity
Negative
resolution.

(4) In the entry in the Table relating to section 249, for “FSA—” substitute “PRA
5or FCA—”.

62 In the Table in section 261 (index of defined terms)—

(a) after the entry relating to “enactment” insert—

FCA 3, 93, 166 & 183

(b) omit the entry relating to the FSA, and

(c) 10after the entry relating to “partial property transfer” insert—

PRA 3, 93, 166 & 183.

Section 95(1)

SCHEDULE 18 Further minor and consequential amendments

Part 1 15Amendments of FSMA 2000

1 FSMA 2000 is amended as follows.

2 (1) Section 33 (withdrawal of authorisation) is amended as follows.

(2) In subsection (1)(a), for “Part IV permission” substitute “Part 4A
permission”.

(3) 20In subsection (2), for “Authority” substitute “appropriate regulator”.

(4) 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.

(5) 25In the heading, omit “by the Authority”.

3 (1) Section 36 (persons authorised as a result of being concerned in collective
investment schemes) is amended as follows.

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

(3) In subsection (2), for “Part IV permission” substitute “Part 4A permission”.

4 30In section 38 (exemption orders), in subsection (2), for “Part IV permission”
substitute “Part 4A permission”.

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5 (1) Section 39 (exemption of appointed representatives) is amended as follows.

(2) In subsection (1B), for “Authority”, in each place, substitute “FCA”.

(3) For subsection (4) substitute—

(4) In determining whether an authorised person has complied with—

(a) 5a provision contained in or made under this Act, or

(b) a qualifying EU provision that is specified, or of a description
specified, for the purposes of this subsection by the Treasury
by order,

anything which a relevant person has done or omitted as respects
10business for which the authorised person has accepted responsibility
is to be treated as having been done or omitted by the authorised
person.

6 In section 39A (tied agents operating outside the United Kingdom), for
“Authority”, in each place, substitute “FCA”.

7 15In section 97(1)(d) (contravention of Part 6 rules: appointment of persons to
carry out investigations), for “83, 85, 87G or 98” substitute “85 or 87G”.

8 (1) In each of the provisions of Part 17 (collective investment schemes)
mentioned in sub-paragraph (2), for “Authority”, or “Authority’s”, in each
place, substitute “FCA” or “FCA’s”.

(2) 20Those provisions are—

(a) sections 237 to 239;

(b) sections 242 to 252A;

(c) sections 254 to 262 (including the heading to section 259);

(d) section 264;

(e) 25section 266;

(f) sections 271 to 283B.

9 (1) Section 249 (disqualification of auditor for breach of trust scheme rules) is
amended as follows.

(2) In subsection (1) for the words from “it may” to the end substitute “it may
30do one or more of the following—

(a) disqualify the auditor from being the auditor of any
authorised unit trust scheme or authorised open-ended
investment company;

(b) publish a statement to the effect that it appears to the FCA
35that the auditor has failed to comply with the duty;

(c) impose on the auditor a penalty, payable to the FCA, of such
amount as the FCA considers appropriate.

(3) For subsection (2) substitute—

(2) Sections 345B to 345E have effect in relation to the taking of action
40under subsection (1) as they have effect in relation to the taking of
action under section 345(2).

(4) For the heading substitute “Disciplinary measures”.

10 (1) Section 250 (modification or waiver of rules) is amended as follows.

(2) In subsection (4)—

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(a) for “Subsections (3) to (9) and (11) of section 148” substitute “Section
138A and subsections (1) to (3), (5) and (6) of section 138B”,

(b) for “section 148(2)” substitute “section 138A(1)”, and

(c) in paragraph (c), for “subsection (7)(b)” substitute “section
5138B(3)(c)”.

(3) In subsection (5)—

(a) for “Subsections (3) to (9) and (11) of section 148” substitute “Section
138A and subsections (1) to (3), (5) and (6) of section 138B”,

(b) for “section 148(2)” substitute “section 138A(1)”,

(c) 10in paragraph (a), for “subsection (4)(a)” substitute “subsection (4)(a)
of section 138A”,

(d) in paragraph (b), for “subsection (7)(b) and (11)” substitute “section
138B(3)(c) and the definition of “immediate group” in section 421ZA
as it applies to that section”,

(e) 15in paragraph (c), for “subsection (7)(b)” substitute “section
138B(3)(c)”,

(f) in paragraph (d), for “subsection (8)” substitute “section 138B(5)”,
and

(g) in paragraph (e), for “subsection (9)” substitute “section 138A(7)”.

11 20In section 257 (directions), in subsection (5), for “section 150” substitute
“section 138D”.

12 In section 267 (power to suspend promotion of scheme)—

(a) in subsections (1), (2), (4) (in both places) and (5) (in both places), for
“Authority” substitute “FCA”, and

(b) 25in the heading for “Authority” substitute “FCA”.

13 In section 268 (section 267: procedure)—

(a) in subsection (2), for “Authority” substitute “FCA”,

(b) in subsection (3), for “the Authority” substitute “the FCA”,

(c) in subsection (4)(c), for “Authority’s” substitute “FCA’s”,

(d) 30in subsections (4)(d), (5) and (6) for “Authority” substitute “FCA”,

(e) in subsection (7), for “The Authority” substitute “The FCA”,

(f) in subsection (8), for “Authority” substitute “FCA”,

(g) in subsection (9), for “The Authority” substitute “The FCA”,

(h) in subsection (13), for “Authority’s” substitute “FCA’s”, and

(i) 35in the heading, for “Authority’s” substitute “FCA’s”.

14 In section 269 (procedure: application for variation or revocation of
direction)—

(a) in subsections (1), (2), (4) and (5), for “Authority” substitute “FCA”,
and

(b) 40in subsection (6), for “The Authority” substitute “The FCA”.

15 In section 270 (schemes authorised in designated countries or territories)—

(a) in subsection (1), in each place, for “Authority” substitute “FCA”,

(b) in subsections (2)(b) and (5) (in both places), for “the Authority”
substitute “the FCA”, and

(c) 45in subsection (6), for “Authority” substitute “FCA”.

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16 In section 284 (power to investigate), in subsection (11), for “the Authority”
substitute “the FCA”.

17 In section 404 (consumer redress scheme), for “Authority”, in each place,
substitute “FCA”.

18 5In section 404A (supplementary provision relating to rules under section
404), for “Authority” or “Authority’s”, in each place, substitute “FCA” or
“FCA’s”.

19 (1) Section 404F (definitions etc.) is amended as follows.

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

(3) 10In subsection (8), for paragraph (a) substitute—

(a) the variation under section 55H or 55J of a Part 4A
permission,

(aa) the imposition or variation of a requirement under section
55L, or.

20 (1) 15Section 405 (directions) is amended as follows.

(2) In subsection (1)—

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

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

(c) in paragraphs (c) and (d), for “notice of control” substitute “section
20178 notice”.

(3) In subsection (2)(b), for “notices of control” substitute “section 178 notices”.

(4) After subsection (4) insert—

(4A) The appropriate regulator”—

(a) for the purposes of subsection (1)(a) and (b), is the regulator
25to which the application for permission under Part 4A is
made;

(b) for the purposes of subsection (1)(c) and (d), is the
appropriate regulator as defined in section 178(2A).

(4B) “Section 178 notice” means a notice given under section 178.

21 (1) 30Section 407 (consequences of a direction under section 405) is amended as
follows.

(2) In subsection (1)—

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

(b) in paragraph (a), for “subsections (7) to (9) of section 52 do”
35substitute “section 55X does”, and

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

(3) In subsection (2)—

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

(b) in paragraph (a), for “section 52(1) and (2)” substitute “subsections
40(1) to (3) of section 55V”, and

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

(4) In subsection (3)—

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

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

22 In section 409 (Gibraltar), in subsection (2), for “Part IV permission”
substitute “Part 4A permission”.

23 In section 415 (jurisdiction in civil proceedings), in subsection (1), for
5paragraph (a) substitute—

(a) the FCA,

(aa) the PRA,

(ab) the Bank of England,.

24 (1) Section 415A (interpretation of powers under the Act) is amended as
10follows.

(2) For “Authority” substitute “FCA, the PRA or the Bank of England”.

(3) In the heading to the section and the italic heading before it, for “of the
Authority” substitute “under the Act”.

Part 2 15Amendments of other Acts of Parliament

Bankers’ Books Evidence Act 1879 (c. 11)Bankers’ Books Evidence Act 1879 (c. 11)

25 In section 9 of the Bankers’ Books Evidence Act 1879 (interpretation), in
subsection (1A)(a), for “Part 4” substitute “Part 4A”.

Agricultural Credits Act 1928 (c. 43)Agricultural Credits Act 1928 (c. 43)

26 20In section 5 of the Agricultural Credits Act 1928 (agricultural charges on
farming stock and assets), in subsection (7), in the definition of “Bank”, for
“Part 4” substitute “Part 4A”.

Agricultural Credits (Scotland) Act 1929 (19 @AMP@amp; 20 Geo. 5 c. 13)Agricultural Credits (Scotland) Act 1929 (19 @AMP@amp; 20 Geo. 5 c. 13)

27 In section 9 of the Agricultural Credits (Scotland) Act 1929 (interpretation),
25in subsection (2), in the definition of “Bank”, for “Part 4” substitute “Part
4A”.

Fire Services Act 1947 (c. 41)Fire Services Act 1947 (c. 41)

28 In section 27A of the Fire Services Act 1947 (information in connection with
firemen’s pensions etc.) (as that section continues to have effect by virtue of
30the Firefighters’ Pension Scheme (England and Scotland) Order 2004 and the
Fire and Rescue Services Act 2004 (Firefighters’ Pension Scheme) (Wales)
Order 2004), in subsection (2)(a), for “section 150” substitute “section 138D”.

Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (c. 65)Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (c. 65)

29 In section 57 of the Reserve and Auxiliary Forces (Protection of Civil
35Interests) Act 1951 (life policies: supplementary provisions), in subsection
(5A), for “section 150” substitute “section 138D”.

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