Financial Services Bill (HL Bill 48)

(2) “Relevant requirement” means a requirement imposed—

(a) by or under this Act, or

(b) by a qualifying EU provision specified, or of a description
specified, for the purposes of this subsection by the Treasury
5by order.

(3) The PRA is “the appropriate regulator” in the case of a contravention
of—

(a) a requirement that is imposed under any provision of this Act
by the PRA,

(b) 10a requirement under section 56(6) where the authorised
person concerned is a PRA-authorised person and the
prohibition order concerned is made by the PRA,

(c) a requirement under section 59(1) or (2) where the authorised
person concerned is a PRA-authorised person and the
15approval concerned falls to be given by the PRA.

(4) In the case of a contravention of a requirement that is imposed by a
qualifying EU provision, “the appropriate regulator” for the purpose
of any provision of this Part is whichever of the PRA or the FCA (or
both) is specified by the Treasury by order in relation to the
20qualifying EU provision for the purposes of that provision of this
Part.

(5) In the case of a contravention of a requirement where the
contravention constitutes an offence, the “appropriate regulator” is
whichever of the PRA or the FCA has power to prosecute the offence
25(see section 401).

(6) The FCA is “the appropriate regulator” in the case of a contravention
of any other requirement imposed by or under this Act.

(7) The Treasury may by order amend the provisions defining “the
appropriate regulator”.”

5 30In section 205 (public censure)—

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

(b) for the words from “a requirement” to “may” substitute “a relevant
requirement imposed on the person, it may”.

6 (1) 35Section 206 (financial penalties) is amended as follows.

(2) In subsection (1)—

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

(b) for the words from “a requirement” to “auctioning regulation”
substitute “a relevant requirement imposed on the person,”.

(3) 40In subsection (3), for “Authority” substitute “regulator that imposed the
penalty”.

7 (1) Section 206A (suspending permission to carry on regulated activities etc.) is
amended as follows.

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

(3) After that subsection insert—

“(1A) The power conferred by subsection (1) is also exercisable by the FCA
if it considers that an authorised person has contravened a
requirement imposed on the person by—

(a) 5the Payment Services Regulations 2009, or

(b) the Electronic Money Regulations 2011.”

(4) In subsection (2)—

(a) in the definition of “permission”, for “the Authority” substitute “the
FCA or the PRA”, and

(b) 10omit the definition of “relevant requirement”.

(5) In subsection (6), for “Authority” substitute “appropriate regulator”.

8 In section 207(1) (proposal to take disciplinary measures), for “the
Authority” substitute “a regulator”.

9 In section 208(1) and (4) (decision notice), for “the Authority”, in each place,
15substitute “a regulator”.

10 In section 209 (publication), for “the Authority” substitute “the regulator
concerned”.

11 (1) Section 210 (statements of policy) is amended as follows.

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

(3) 20In subsection (2), for “The Authority’s” substitute “A regulator’s”.

(4) In subsection (3)—

(a) for “The Authority” substitute “A regulator”, and

(b) after “issued” insert “by it”.

(5) In subsection (4), for “replaced, the Authority” substitute “replaced by a
25regulator, the regulator”.

(6) In subsection (5), for “The Authority” substitute “A regulator”.

(7) In subsection (6)—

(a) after “section” insert “by a regulator”, and

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

(8) 30In subsection (7)—

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

(b) after “published” insert “by it”.

(9) In subsection (8), for “Authority” substitute “regulator”.

12 (1) Section 211 (statements of policy: procedure) is amended as follows.

(2) 35In subsection (1)—

(a) for “issuing” substitute “a regulator issues”, and

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

(3) In subsections (2) to (4) and (5) (in both places), for “Authority” substitute
“regulator”.

(4) 40In subsection (6), for “The Authority” substitute “A regulator”.

Part 5 Injunctions and restitution

13 (1) Section 380 (injunctions) is amended as follows.

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

(3) 5In subsection (6)(a)—

(a) in the opening words, for “Authority” substitute “appropriate
regulator”,

(b) in sub-paragraph (i), for the words from “any directly applicable” to
“auctioning regulation” substitute “a qualifying EU provision
10specified, or of a description specified, for the purposes of this
subsection by the Treasury by order”, and

(c) in sub-paragraph (ii), for the words from “which the Authority” to
the end substitute “mentioned in section 402(1)”.

(4) In subsection (7), omit paragraph (a) (and the “and” at the end of it).

(5) 15After subsection (7) insert—

“(8) The PRA is the “appropriate regulator” in the case of a contravention
of—

(a) a requirement that is imposed by the PRA under any
provision of this Act,

(b) 20a requirement under section 56(6) where the authorised
person concerned is a PRA-authorised person and the
prohibition order concerned is made by the PRA, or

(c) a requirement under section 59(1) or (2) where the authorised
person concerned is a PRA-authorised person and the
25approval concerned falls to be given by the PRA.

(9) In the case of a contravention of a requirement that is imposed by a
qualifying EU provision, “the appropriate regulator” is whichever of
the PRA or the FCA (or both) is specified by the Treasury by order in
relation to the qualifying EU provision for the purposes of this
30section.

(10) In the case of a contravention of a requirement where the
contravention constitutes an offence under this Act, the “appropriate
regulator” is whichever of the PRA or the FCA has power to
prosecute the offence (see section 401).

(11) 35The FCA is the “appropriate regulator” in the case of a contravention
of any other requirement.

(12) The Treasury may by order amend the definition of “appropriate
regulator”.”

14 (1) Section 381 (injunctions in case of market abuse) is amended as follows.

(2) 40In subsections (1) to (3), for “Authority” substitute “FCA”.

(3) In subsection (4), after “The court” insert “may”.

15 (1) Section 382 (restitution orders) is amended as follows.

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

(3) In subsections (2) and (3), for “Authority” substitute “regulator concerned”.

(4) In subsection (7), for “Authority” substitute “appropriate regulator”.

(5) In subsection (9)(a)—

(a) in the opening words, for “Authority” substitute “appropriate
5regulator”,

(b) in sub-paragraph (i), for the words from “any directly applicable” to
“auctioning regulation” substitute “a qualifying EU provision
specified, or of a description specified, for the purposes of this
subsection by the Treasury by order”, and

(c) 10in sub-paragraph (ii), for the words from “which the Authority” to
the end substitute “mentioned in section 402(1)”.

(6) In subsection (10), omit paragraph (a) (and the “and” at the end of it).

(7) After subsection (10) insert—

“(11) The PRA is the “appropriate regulator” in the case of a contravention
15of—

(a) a requirement that is imposed by the PRA under any
provision of this Act,

(b) a requirement under section 56(6) where the authorised
person concerned is a PRA-authorised person and the
20prohibition order concerned is made by the PRA, or

(c) a requirement under section 59(1) or (2) where the authorised
person concerned is a PRA-authorised person and the
approval concerned falls to be given by the PRA.

(12) In the case of a contravention of a requirement that is imposed by a
25qualifying EU provision, “the appropriate regulator” is whichever of
the PRA or the FCA (or both) is specified by the Treasury by order in
relation to the qualifying EU provision for the purposes of this
section.

(13) In the case of a contravention of a requirement where the
30contravention constitutes an offence under this Act, the “appropriate
regulator” is the regulator which has power to prosecute the offence
(see section 401).

(14) The FCA is the “appropriate regulator” in the case of a contravention
of any other requirement.

(15) 35The Treasury may by order amend the definition of “appropriate
regulator”.”

16 In section 383(1), (4), (5) and (9) (restitution orders in case of market abuse),
for “ Authority” substitute “FCA”.

17 (1) Section 384 (power of Authority to require restitution) is amended as
40follows.

(2) In subsection (1)—

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

(b) after “authorised person” insert “or recognised investment
exchange”.

(3) 45In subsections (2) and (4), for “Authority” substitute “FCA”.

(4) In subsection (5)—

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

(b) for “Authority”, in each of the other places, substitute “regulator
5concerned”.

(5) In subsection (6), for “Authority” substitute “regulator concerned”.

(6) In subsection (7)—

(a) in paragraph (a), for the words from “any directly applicable” to
“auctioning regulation” substitute “a qualifying EU provision
10specified, or of a description specified, for the purposes of this
subsection by the Treasury by order”, and

(b) in paragraph (b), for the words from “in relation to which” to the end
substitute “mentioned in section 402(1)”.

(7) Omit subsection (8).

(8) 15After subsection (8) insert—

“(9) The PRA is the “appropriate regulator” in the case of a contravention
of—

(a) a requirement that is imposed by the PRA under any
provision of this Act,

(b) 20a requirement under section 56(6) where the authorised
person concerned is a PRA-authorised person and the
prohibition order concerned is made by the PRA, or

(c) a requirement under section 59(1) or (2) where the authorised
person concerned is a PRA-authorised person and the
25approval concerned falls to be given by the PRA.

(10) In the case of a contravention of a requirement that is imposed by a
qualifying EU provision, “the appropriate regulator” is whichever of
the PRA or the FCA (or both) is specified by the Treasury by order in
relation to the qualifying EU provision for the purposes of this
30section.

(11) In the case of a contravention of a requirement where the
contravention constitutes an offence under this Act, the “appropriate
regulator” is the regulator which has power to prosecute the offence
(see section 401).

(12) 35The FCA is the “appropriate regulator” in the case of a contravention
of any other requirement.

(13) The Treasury may by order amend the definition of “appropriate
regulator”.”

(9) In the heading, for “Authority” substitute “FCA or PRA”.

(10) 40In the italic heading before section 384, for “Authority” substitute “FCA or
PRA”.

18 (1) Section 385 (warning notices) is amended as follows.

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

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

19 In section 386(1) and (3) (decision notices), for “Authority” substitute
“regulator”.

Part 6 Notice procedures

20 (1) 5Section 387 (warning notices) is amended as follows.

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

(3) After subsection (1) insert—

“(1A) Where the PRA is the regulator concerned and the FCA proposes to
10refuse consent for the purposes of section 55F, 55I or 59 or to give
conditional consent as mentioned in section 55F(5) or 55I(8), the
warning notice given by the PRA must—

(a) state that fact, and

(b) give the reasons for the FCA’s proposal.”

(4) 15In subsection (2)—

(a) for “The warning” substitute “A warning”,

(b) for “28 days” substitute “14 days”, and

(c) for “Authority” substitute “regulator concerned”.

(5) In subsection (3), for “The Authority” substitute “The regulator concerned”.

(6) 20After subsection (3) insert—

“(3A) Where the PRA receives any representations in response to a
warning notice given by it under section 55X(1) or (2) or 62(2) in a
case falling within subsection (1A) it must—

(a) if the representations are in writing, give a copy to the FCA,
25or

(b) if they are not in writing and have not been given directly to
the FCA by the person making them, provide the FCA with a
record of them.”

(7) In subsection (4), for “The Authority” substitute “The regulator concerned”.

21 (1) 30Section 388 (decision notices) is amended as follows.

(2) In subsection (1)(b), for “the Authority’s reasons” substitute “the reasons of
the regulator giving the notice (“the regulator concerned”)”.

(3) After subsection (1) insert—

“(1A) Where the PRA is the regulator concerned and the FCA has decided
35to refuse consent for the purposes of section 55F, 55I or 59 or to give
conditional consent as mentioned in section 55F(5) or 55I(8), the
decision notice given by the PRA must—

(a) state that fact, and

(b) give the reasons for the FCA’s decision.”

(4) 40In subsections (3) and (4), for “The Authority” substitute “The regulator
concerned”.

22 In section 389(1) (notices of discontinuance)—

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

(b) in paragraphs (a) and (b), after “notice” insert “given by it”.

23 (1) Section 390 (final notices) is amended as follows.

(2) 5In subsection (1)—

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

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

(3) In subsection (2)—

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

(b) 10for “the Authority”, in the second place, substitute “the regulator”,
and

(c) for “a final notice” substitute “the notice required by subsection
(2A)”.

(4) After that subsection insert—

“(2A) 15The notice required by this subsection is—

(a) in a case where the regulator is acting in accordance with a
direction given by the Tribunal under section 133(6)(b), or by
the court on an appeal from a decision by the Tribunal under
section 133(6), a further decision notice, and

(b) 20in any other case, a final notice.”.

(5) In subsections (9) and (10), for “the Authority” substitute “the regulator
giving the notice”.

24 (1) Section 391 (publication) is amended as follows.

(2) For subsection (1) substitute—

“(1) 25In the case of a warning notice falling within subsection (1ZB)—

(a) neither the regulator giving the notice nor a person to whom
it is given or copied may publish the notice;

(b) a person to whom the notice is given or copied may not
publish any details concerning the notice unless the regulator
30giving the notice has published those details; and

(c) after consulting the persons to whom the notice is given or
copied, the regulator giving the notice may publish such
information about the matter to which the notice relates as it
considers appropriate.

(1ZA) 35In the case of a warning notice not falling within subsection (1ZB),
neither the regulator giving the notice nor a person to whom it is
given or copied may publish the notice or any details concerning it.

(1ZB) A warning notice falls within this subsection if it is given under—

(a) section 63B;

(b) 40section 67;

(c) section 87M;

(d) section 88B;

(e) section 89K;

(f) section 89R;

(g) 45section 92;

(h) section 126;

(i) section 131H;

(j) section 192L;

(k) section 207;

(l) 5section 312G;

(m) section 345B (whether as a result of section 345(2) or 345A(3)
or section 249(1)).”

(3) In subsections (1A), (2) and (3), for “Authority” substitute “regulator giving
the notice”.

(4) 10In subsection (4)—

(a) for “The Authority” substitute “The regulator giving a decision or
final notice”, and

(b) for “a decision notice or final notice” substitute “the notice”.

(5) In subsection (5), for “Authority” substitute “regulator giving the notice”.

(6) 15For subsection (6) substitute—

“(6) The FCA may not publish information under this section if, in its
opinion, publication of the information would be—

(a) unfair to the person with respect to whom the action was
taken (or was proposed to be taken),

(b) 20prejudicial to the interests of consumers, or

(c) detrimental to the stability of the UK financial system.

(6A) The PRA may not publish information under this section if, in its
opinion, publication of the information would be—

(a) unfair to the person with respect to whom the action was
25taken (or was proposed to be taken),

(b) prejudicial to the safety and soundness of PRA-authorised
persons, or

(c) in a case where section 2C applies, prejudicial to securing the
appropriate degree of protection for policyholders.”

(7) 30In subsection (7), for “Authority” substitute “regulator”.

(8) In subsection (7A), for “the Authority” substitute “a regulator”.

25 (1) Section 392 (application of sections 393 and 394) is amended as follows.

(2) In paragraph (a)—

(a) for “54(1)” substitute “55Z(1)”, and

(b) 35after “131H(1),” insert “192L(1),”.

(3) In paragraph (b)—

(a) for “54(2)” substitute “55Z(2)”, and

(b) after “131H(4),” insert “192L(4),”.

26 (1) Section 393 (third party rights) is amended as follows.

(2) 40In subsections (1)(b) and (2), for “Authority” substitute “regulator giving the
notice”.

(3) In subsection (3)—

(a) for “28 days” substitute “14 days”, and

(b) for “the Authority” substitute “the regulator giving the notice”.

(4) In subsections (4)(b), (6), (7), (9)(b) and (11)(b), for “the Authority” substitute
“the regulator giving the notice”.

(5) In subsection (12), for “which the Authority must disclose” substitute “to
5which access must be given”.

27 (1) Section 394 (access to Authority material) is amended as follows.

(2) In subsection (1)—

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

(b) 10in paragraph (b), for “, in the opinion of the Authority,” substitute
“, in the regulator’s opinion,”.

(3) In subsection (2), for “the Authority”, in both places, substitute “the
regulator giving the notice”.

(4) In subsection (3), for “The Authority” substitute “The regulator giving the
15notice”.

(5) In subsection (4)—

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

(b) for “the Authority’s” substitute “the regulator’s”.

(6) In subsection (5), for “the Authority” substitute “the regulator giving the
20notice”.

(7) In subsection (6)—

(a) in paragraph (a), for “the Authority” substitute “the regulator giving
the notice”, and

(b) in paragraph (b), for “the Authority in connection with the matter to
25which the notice to which this section applies” substitute “the
regulator giving the notice in connection with the matter to which
that notice”.

(8) In the heading, for “Authority” substitute “FCA or PRA”.

28 (1) Section 395 (the Authority’s procedures) is amended as follows.

(2) 30For subsection (1) substitute—

“(1) Each regulator must determine the procedure that it proposes to
follow in relation to the following—

(a) a decision which gives rise to an obligation to give a
supervisory notice,

(b) 35in the case of the FCA, a decision which—

(i) gives rise to an obligation for it to give a warning
notice or decision notice, or

(ii) gives rise to an obligation for the PRA to include a
statement under section 387(1A) in a warning notice
40or a statement under section 388(1A) in a decision
notice,

(c) in the case of the PRA, a decision which gives rise to an
obligation for it to give a warning notice or decision notice,
other than a decision which depends entirely on a decision of
45the FCA of the kind mentioned in paragraph (b)(ii).”

(3) In subsection (2)—

(a) omit the words from “which gives” to “such notice”, and

(b) at the end insert “, or by 2 or more persons who include a person not
directly involved in establishing that evidence”.

(4) 5In subsection (3), for the words from “taken” to the end substitute “taken
otherwise as mentioned in subsection (2) if the person taking the decision is
of a level of seniority laid down by the procedure and—

“(a) in the case of procedure proposed by the FCA, the FCA
considers that, in the particular case, it is necessary in order
10to advance one or more of its operational objectives, or

(b) in the case of procedure proposed by the PRA, the PRA
considers that, in the particular case, it is necessary in order
to advance any of its objectives.”

(5) In subsection (5)—

(a) 15for “The Authority” substitute “Each regulator”, and

(b) for “the procedure” substitute “its procedure”.

(6) In subsection (6)—

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

(b) for “it” substitute “the statement”.

(7) 20In subsection (7), for “The Authority” substitute “The regulator issuing the
statement”.

(8) In subsection (8)—

(a) for “The Authority” substitute “The regulator issuing a statement
under this section”, and

(b) 25for “any statement which it issues under this section” substitute “the
statement”.

(9) In subsection (9)—

(a) for “giving” substitute “a regulator gives”,

(b) after “decision notice,” insert “other than a warning notice or
30decision notice relating to a decision of the PRA that is required by a
a decision of the FCA of the kind mentioned in subsection (1)(b)(ii)”,
and

(c) for “the Authority” substitute “the regulator”.

(10) After subsection (9) insert—

“(9A) 35When the FCA takes a decision falling within subsection (1)(b)(ii), it
must follow its stated procedure.”

(11) In subsection (10)—

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

(b) for “the procedure” substitute “its procedure”.

(12) 40In subsection (11), for “The Authority’s” substitute “A regulator’s”.

(13) In subsection (13), for paragraph (a) substitute—

“(a) 55Y(4), (7) or (8)(b);”.

(14) In the heading, for “Authority’s” substitute “FCA’s and PRA’s”.