Financial Services Bill (HL Bill 60)

(2) In subsection (4)—

(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) 5in paragraph (c), for “subsection (7)(b)” substitute “section
138B(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) 10for “section 148(2)” substitute “section 138A(1)”,

(c) in 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
15as it applies to that section”,

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

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

(g) 20in paragraph (e), for “subsection (9)” substitute “section 138A(7)”.

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

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

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

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

14 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) 30in subsection (4)(c), for “Authority’s” substitute “FCA’s”,

(d) in 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) 35in subsection (13), for “Authority’s” substitute “FCA’s”, and

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

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

(a) in subsections (1), (2), (4) and (5), for “Authority” substitute “FCA”,
40and

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

16 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”
45substitute “the FCA”, and

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

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

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

19 5In section 404A (supplementary provision relating to rules under section
404), for “Authority” or “Authority’s”, in each place, substitute “FCA” or
“FCA’s”.

20 (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”.

21 (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.”

22 (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

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

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

24 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,”.

25 (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”.

26 In paragraph 8 of Schedule 6 (additional threshold conditions), in sub-
15paragraph (2)(b), for “the Authority” substitute “such of the FCA or the PRA
as may be specified,”.

Part 2 Amendments of other Acts of Parliament

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

27 20In 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)

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

Agricultural Credits (Scotland) Act 1929 (19 & 20 Geo. 5 c. 13)Agricultural Credits (Scotland) Act 1929 (19 & 20 Geo. 5 c. 13)

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

30Fire Services Act 1947 (c. 41)Fire Services Act 1947 (c. 41)

30 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
the Firefighters’ Pension Scheme (England and Scotland) Order 2004 and the
Fire and Rescue Services Act 2004 (Firefighters’ Pension Scheme) (Wales)
35Order 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)

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

Theft Act 1968 (c. 60)Theft Act 1968 (c. 60)

32 In section 24A of the Theft Act 1968 (dishonestly retaining a wrongful
credit), in subsection (9), for paragraph (c) substitute—

“(c) a person falling within any of paragraphs (a) to (j) of the
5definition of “electronic money issuer” in regulation 2(1) of
the Electronic Money Regulations 2011.”

Decimal Currency Act 1969 (c. 19)Decimal Currency Act 1969 (c. 19)

33 In section 7 of the Decimal Currency Act 1969 (payments under friendly
society and industrial assurance contracts: supplemental), in subsection (5),
10for “section 138” substitute “sections 137A and 137F”.

Employers’ Liability (Compulsory Insurance) Act 1969 (c. 57)Employers’ Liability (Compulsory Insurance) Act 1969 (c. 57)

34 In section 1 of the Employers’ Liability (Compulsory Insurance) Act 1969
(insurance against liability for employees), in subsection (3)(b)(i), for “Part 4”
substitute “Part 4A”.

15Superannuation Act 1972 (c. 11)Superannuation Act 1972 (c. 11)

35 In section 1 of the Superannuation Act 1972 (superannuation schemes: civil
servants), in subsection (9), in the definition of “authorised provider”, for
“Part 4” substitute “Part 4A”.

Employment Agencies Act 1973 (c. 35)Employment Agencies Act 1973 (c. 35)

36 20In section 9 of the Employment Agencies Act 1973 (inspection), in subsection
(1AC), for “Part 4” substitute “Part 4A”.

Consumer Credit Act 1974 (c. 39)Consumer Credit Act 1974 (c. 39)

37 (1) The Consumer Credit Act 1974 is amended as follows.

(2) In section 16 (exempt agreements)—

(a) 25in subsection (3A), in the Table—

(i) for “Financial Services Authority”, in the first place,
substitute “Financial Conduct Authority”, and

(ii) for “and the Financial Services Authority”, substitute “, the
Financial Conduct Authority and the Prudential Regulation
30Authority”, and

(b) in subsection (10), in paragraphs (a)(i) and (b)(i), for “Part 4”
substitute “Part 4A.

(3) In section 25 (licensee to be a fit person), in subsection (1B)—

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

(b) 35for “the Financial Services Authority” substitute “the regulator
which granted the permission under Part 4A”.

(4) In section 35 (the register), in subsection (1A), for “Financial Services
Authority” substitute “Financial Conduct Authority or the Prudential
Regulation Authority”.

Solicitors Act 1974 (c. 47)Solicitors Act 1974 (c. 47)

38 In section 87 of the Solicitors Act 1974 (interpretation), in the definition of
“bank” in subsection (1) and in subsection (1A)(a), for “Part 4” substitute
“Part 4A”.

5House of Commons Disqualification Act 1975 (c. 24)1975 (c. 24)

39 In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975
(other disqualifying offices)—

(a) omit the entry “Member of the governing body of the Financial
Services Authority”, and

(b) 10at the appropriate place in each case insert—

• “Member of the governing body of the Financial
  Conduct Authority;”;

• “Member of the governing body of the Prudential
  Regulation Authority;”.

15Northern Ireland Assembly Disqualification Act 1975 (c. 25)1975 (c. 25)

40 In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (other disqualifying offices)—

(a) omit the entry “Member of the governing body of the Financial
Services Authority”, and

(b) 20at the appropriate place in each case insert—

• “Member of the governing body of the Financial
  Conduct Authority;”;

• “Member of the governing body of the Prudential
  Regulation Authority;”.

25Police Pensions Act 1976 (c. 35)Police Pensions Act 1976 (c. 35)

41 In section 8A of the Police Pensions Act 1976 (information in connection with
police pensions etc.), in subsection (2)(a), for “section 150” substitute “section
138D”.

Judicial Pensions Act 1981 (c. 20)Judicial Pensions Act 1981 (c. 20)

42 30In section 33A of the Judicial Pensions Act 1981 (voluntary contributions), in
subsection (9), in paragraph (a) of the definition of “authorised provider”,
for “Part 4” substitute “Part 4A”.

Lloyd’s Act 1982 (c. xiv)

43 In section 7 of the Lloyd’s Act 1982 (the Disciplinary Committee and the
35Appeal Tribunal), in subsection (1A)(c), for “Financial Services Authority”
substitute “Prudential Regulation Authority or the Financial Conduct
Authority”.

Inheritance Tax Act 1984 (c. 51)Inheritance Tax Act 1984 (c. 51)

44 In section 59 of the Inheritance Tax Act 1984 (qualifying interest in
40possession), in subsection (3)(b)(i), for “Part 4” substitute “Part 4A”.

Companies Act 1985 (c. 6)Companies Act 1985 (c. 6)

45 The Companies Act 1985 is amended as follows.

46 In Schedule 15C (specified persons), for paragraph 7 substitute—

“7 The Financial Conduct Authority.

7A 5The Prudential Regulation Authority.

7B The Bank of England.”

47 (1) Schedule 15D (disclosures) is amended as follows.

(2) In paragraph 28 for “Financial Services Authority” substitute “Financial
Conduct Authority or the Prudential Regulation Authority”.

(3) 10In paragraph 29 for “competent authority” substitute “Financial Conduct
Authority”.

(4) In paragraph 43, for paragraph (a) substitute—

“(a) a decision of the Financial Conduct Authority;

(aa) a decision of the Prudential Regulation Authority;”.

15Trustee Savings Banks Act 1985 (c. 58)Trustee Savings Banks Act 1985 (c. 58)

48 In Part 3 of Schedule 1 to the Trustee Savings Banks Act 1985
(supplementary transfer provisions), in paragraph 11(4A)(a), for “Part 4”
substitute “Part 4A”.

Administration of Justice Act 1985 (c. 61)Administration of Justice Act 1985 (c. 61)

49 20In section 21 of the Administration of Justice Act 1985 (professional
indemnity and compensation), in subsection (5)(a), for “Part 4” substitute
“Part 4A”.

Housing Act 1985 (c. 68)Housing Act 1985 (c. 68)

50 In section 622 of the Housing Act 1985 (minor definitions: general), in
25subsection (1), in the definitions of “authorised deposit taker”, “authorised
insurer” and “authorised mortgage lender”, for “Part 4” substitute “Part 4A”.

Insolvency Act 1986 (c. 45)Insolvency Act 1986 (c. 45)

51 The Insolvency Act 1986 is amended as follows.

52 (1) Section 4A (approval of proposed voluntary arrangement) is amended as
30follows.

(2) In subsection (5), for “Financial Services Authority” substitute “appropriate
regulator”.

(3) After that subsection insert—

“(5A) The appropriate regulator” means—

(a) 35where the regulated company is a PRA-regulated company
within the meaning of paragraph 44 of Schedule A1, the
Financial Conduct Authority and the Prudential Regulation
Authority, and

(b) in any other case, the Financial Conduct Authority.”

53 In section 422 (order relating to formerly authorised banks), in subsection
(1)—

(a) for “Financial Services Authority” substitute “Financial Conduct
5Authority and the Prudential Regulation Authority”, and

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

54 (1) Paragraph 44 of Schedule A1 (moratorium where directors propose
voluntary arrangement; modifications relating to regulated companies) is
amended as follows.

(2) 10In sub-paragraphs (2) to (4), for “Authority” substitute “appropriate
regulator”.

(3) In sub-paragraph (5)—

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

(b) for “the Authority”, in the second place, substitute “the appropriate
15regulator”.

(4) In sub-paragraph (6), for “Authority” substitute “appropriate regulator”.

(5) In sub-paragraph (7)—

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

(b) for “the Authority”, in the second place, substitute “the appropriate
20regulator”.

(6) In sub-paragraphs (8) to (11), for “Authority” substitute “appropriate
regulator”.

(7) In sub-paragraph (12)—

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

(b) 25for “the Authority”, in the second place, substitute “the appropriate
regulator”.

(8) In sub-paragraph (13), for “Authority” substitute “appropriate regulator”.

(9) In sub-paragraph (14)—

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

(b) 30for “the Authority”, in the second place, substitute “the appropriate
regulator”.

(10) In sub-paragraph (15), for “Authority” substitute “appropriate regulator”.

(11) In sub-paragraph (16)—

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

(b) 35for “the Authority”, in the second place, substitute “the appropriate
regulator”.

(12) After sub-paragraph (16) insert—

“(16A) If either regulator makes an application to the court under any of
the provisions mentioned in sub-paragraphs (5), (7), (12), (14) or
40(16) in relation to a PRA-regulated company, the other regulator is
entitled to be heard on the application.”

(13) In sub-paragraph (17), for “Authority” substitute “appropriate regulator”.

(14) After sub-paragraph (17) insert—

“(17A) The appropriate regulator” means—

(a) for the purposes of sub-paragraphs (2) to (8) and (10) to
(17)—

(i) 5where the regulated company is a PRA-regulated
company, each of the Financial Conduct Authority
and the Prudential Regulation Authority, and

(ii) in any other case, the Financial Conduct Authority;

(b) for the purposes of sub-paragraph (9)—

(i) 10where the regulated company is a PRA-regulated
company, the Financial Conduct Authority or the
Prudential Regulation Authority, and

(ii) in any other case, the Financial Conduct
Authority.”

(15) 15In sub-paragraph (18)—

(a) for the definition of “the Authority” and the “and” following it
substitute—

• ““PRA-authorised person” has the meaning given by
  section 2B(5) of the Financial Services and Markets
  20Act 2000;

• “PRA-regulated activity” has the meaning given by
  section 22A of the Financial Services and Markets Act
  2000;

• “PRA-regulated company” means a regulated company
  25which—

  (a)

  is, or has been, a PRA-authorised person,

  (b)

  is, or has been, an appointed representative
  within the meaning given by section 39 of the
  the Financial Services and Markets Act 2000,
  30whose principal (or one of whose principals)
  is, or was, a PRA-authorised person, or

  (c)

  is carrying on, or has carried on, a PRA-
  regulated activity in contravention of the
  general prohibition;”.

(b) 35after the definition of “regulated company” insert—

• ““regulator” means the Financial Conduct Authority or the
  Prudential Regulation Authority.”

(16) In the italic heading, for “Financial Services Authority” substitute “Financial
Conduct Authority and Prudential Regulation Authority”.

55 (1) 40Schedule B1 (administration) is amended as follows.

(2) In paragraph 40 (dismissal of pending winding-up petition), in sub-
paragraph (2)(b), for “Financial Services Authority” substitute “Financial
Conduct Authority or Prudential Regulation Authority”.

(3) In paragraph 42 (moratorium on insolvency proceedings), in sub-paragraph
45(4)(b), for “Financial Services Authority” substitute “Financial Conduct
Authority or Prudential Regulation Authority”.

(4) In paragraph 82 (public interest winding-up), in sub-paragraph (1)(b), for
“Financial Services Authority” substitute “Financial Conduct Authority or
Prudential Regulation Authority”.

Debtors (Scotland) Act 1987 (c. 18)Debtors (Scotland) Act 1987 (c. 18)

56 5In section 73F of the Debtors (Scotland) Act 1987 (protection of minimum
balance in bank accounts), in subsection (5)(b), for “Part 4” substitute “Part
4A”.

Housing (Scotland) Act 1987 (c. 26)Housing (Scotland) Act 1987 (c. 26)

57 In section 338 of the Housing (Scotland) Act 1987 (interpretation), in
10subsection (1)—

(a) in the definition of “bank”, for “Part 4” substitute “Part 4A”, and

(b) in the definition of “insurance company” for “Part 4” substitute “Part
4A”.

Income and Corporation Taxes Act 1988 (c. 1)Income and Corporation Taxes Act 1988 (c. 1)

58 (1) 15The Income and Corporation Taxes Act 1988 is amended as follows.

(2) In section 266 (life assurance premiums), in subsection (2)(a)(i), for “Part 4”
substitute “Part 4A”.

(3) In section 376 (qualifying borrowers and qualifying lenders), in subsection
(4)(e), for “Part 4” substitute “Part 4A”.

(4) 20In section 376A (the register of qualifying lenders), in subsection (1A)(a), for
“Part 4” substitute “Part 4A”.

(5) In section 431 (interpretation: insurance companies), in subsection (2), in the
definition of “insurance company”, for “Part 4” substitute “Part 4A”.

(6) In section 444AB (transfer schemes)—

(a) 25in subsection (2)(b), for “Part 4” substitute “Part 4A”, and

(b) in subsection (2A)(b), for “Part 4” substitute “Part 4A”.

Access to Medical Reports Act 1988 (c. 28)Access to Medical Reports Act 1988 (c. 28)

59 In section 2 of the Access to Medical Reports Act 1988 (interpretation), in
subsection (1), in the definition of “insurer”, for “Part 4” substitute “Part 4A”.

30Road Traffic Act 1988 (c. 52)Road Traffic Act 1988 (c. 52)

60 In section 95 of the Road Traffic Act 1988 (notification of refusal of insurance
on grounds of health), in subsection (3)(a), for “Part 4” substitute “Part 4A”.

Water Act 1989 (c. 15)Water Act 1989 (c. 15)

61 In section 174 of the Water Act 1989 (restriction on disclosure of
35information), in subsection (2)(e), for “or the Financial Services Authority”
substitute “, the Financial Conduct Authority, the Prudential Regulation
Authority or the Bank of England”.

Companies Act 1989 (c. 40)Companies Act 1989 (c. 40)

62 The Companies Act 1989 is amended as follows.

63 (1) Section 82 (request for assistance by overseas regulatory authority) is
amended as follows.

(2) 5In subsection (2)(a)—

(a) in sub-paragraph (ii), for “Financial Services Authority” substitute
“FCA, the PRA or the Bank of England”, and

(b) omit sub-paragraph (iii).

(3) In subsection (3), for “Financial Services Authority” substitute
10“corresponding UK regulator (if any)”.

(4) After that subsection insert—

“(3A) In subsection (3), “the corresponding UK regulator” means such one
or more of the FCA, PRA and the Bank of England as appears to the
Secretary of State to exercise functions corresponding to the
15regulatory functions for the purposes of which the request is made.”

(5) In subsection (5)—

(a) for “Financial Services Authority”, in the first place, substitute “FCA
and the PRA”,

(b) for “Financial Services Authority”, in the second place, substitute
20“FCA or the PRA”, and

(c) for “the Authority” substitute “the body giving the notification”.

64 (1) Section 87 (exceptions from restrictions on disclosure) is amended as
follows.

(2) In subsection (2)(b), for sub-paragraph (i) substitute—

“(i) 25a decision of the FCA;

(iia) a decision of the PRA;”

(3) In subsection (4), in the Table, in the entry relating to the Financial Services
Authority, for “The Financial Services Authority” substitute “The FCA or the
PRA”.

65 (1) 30Section 157 (change in default rules) is amended as follows.

(2) In subsection (1)—

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

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

(3) 35At the end insert—

“(4) The appropriate regulator”—

(a) in relation to a recognised UK investment exchange, means
the FCA, and

(b) in relation to a recognised UK clearing house, means the
40Bank of England.”

66 (1) Section 162 (duty to report on completion of default proceedings) is
amended as follows.