|
| |
|
(a) | makes a resolution instrument that transfers securities issued |
| |
by a bank (or a bank’s parent undertaking), in accordance |
| |
| |
(b) | later makes a property transfer instrument from the bank or |
| |
from another bank which is or was in the same group as the |
| 5 |
bank, in accordance with section 41A(2). |
| |
(2) | This Part applies to the transferor under the property transfer |
| |
instrument made in accordance with section 41A(2) as to the |
| |
transferor under a property transfer instrument made in accordance |
| |
| 10 |
(3) | For that purpose this Part applies with any modifications specified |
| |
by the Treasury in regulations; and any regulations— |
| |
(a) | are to be made by statutory instrument, and |
| |
(b) | may not be made unless a draft has been laid before and |
| |
approved by resolution of each House of Parliament.” |
| 15 |
31 | In section 220 (insolvency etc), after subsection (4) insert— |
| |
“(4A) | The fact that ownership of an authorised bank is transferred or |
| |
otherwise changed as a result of a resolution instrument (or an |
| |
instrument treated as a resolution instrument) does not itself prevent |
| |
the bank from relying on section 213.” |
| 20 |
32 | In section 259 (statutory instruments)— |
| |
(a) | in the Table in subsection (3), in Part 1, in the entry relating to section |
| |
60 for “Third party compensation” substitute “Third party |
| |
compensation: partial property transfers”; |
| |
(b) | in the Table in subsection (3), in Part 1, at the appropriate places |
| 25 |
| |
|
|
|
| |
|
| |
|
(c) | in the Table in subsection (3), in Part 3, at the appropriate place |
| |
| |
|
(d) | in subsection (5), after paragraph (d) insert— |
| |
“(da) | section 60A (special resolution regime: instruments |
| |
containing special bail-in provision),”; |
| |
(e) | in subsection (5), after paragraph (k) insert— |
| |
“(ka) | section 152A (bank administration: property transfer |
| 10 |
from transferred institution),”. |
| |
33 | In section 261 (index of defined terms), in the Table, at the appropriate places |
| |
| |
|
|
|
| |
Modification of Investment Bank Special Administration Regulations 2011 |
| |
34 (1) | This paragraph modifies the application of the Investment Bank Special |
| |
Administration Regulations 2011 (S.I. 2011/245) (“the regulations”) in cases |
| |
where a resolution instrument has been made under section 12A of the |
| 25 |
Banking Act 2009 with respect to the investment bank in the relevant 3- |
| |
| |
(2) | In sub-paragraph (1) “the relevant 3-month period” means the 3 months |
| |
ending with the date on which the FCA receives the notification under |
| |
Condition 1 in regulation 8 of the regulations. |
| 30 |
(3) | In their application to those cases, the regulations have effect with the |
| |
modifications in sub-paragraph (4); and any enactment that refers to the |
| |
regulations is to be read accordingly. |
| |
(4) | In regulation 8 (in its application to those cases)— |
| |
(a) | in paragraph (5)(c)(ii), for “appropriate regulator” substitute “Bank |
| 35 |
of England” and after “notice” insert “and the appropriate |
| |
| |
|
| |
|
| |
|
(b) | in paragraph (6), omit sub-paragraph (a) (but continue to read “that” |
| |
in sub-paragraph (b) as a reference to the insolvency procedure to |
| |
which the notice relates); |
| |
(c) | after paragraph (6) insert— |
| |
“(6A) | Where the FCA receives notice under Condition 1, it must |
| 5 |
also inform the Bank of England of the contents of the notice. |
| |
(6B) | Where the Bank of England receives notice under paragraph |
| |
(6A), it must, within the period in Condition 3, inform the |
| |
person who gave the notice and the appropriate regulator |
| |
whether or not it consents to the insolvency procedure to |
| 10 |
which the notice relates going ahead.” |
| |
| |
| |
Consequential amendments relating to Part 4 |
| |
Financial Services and Markets Act 2000 |
| |
1 (1) | Section 59 of FSMA 2000 (approval for particular arrangements) is amended |
| 15 |
| |
(2) | In subsection (1), for the words from “the appropriate regulator” to the end |
| |
substitute “that person is acting in accordance with an approval given by the |
| |
appropriate regulator under this section.” |
| |
(3) | In subsection (2), for the words from “the appropriate regulator” to the end |
| 20 |
substitute “that person is acting in accordance with an approval given by the |
| |
appropriate regulator under this section.” |
| |
2 (1) | Section 59A of FSMA 2000 (specifying functions as controlled functions: |
| |
supplementary) is amended as follows. |
| |
(2) | In subsection (1)(a) and (b), for “significant-influence” substitute “senior |
| 25 |
| |
(3) | After subsection (3) insert— |
| |
“(3A) | “Senior management function” has the meaning given by section |
| |
| |
3 (1) | Section 63 of FSMA 2000 (withdrawal of approval) is amended as follows. |
| 30 |
(2) | In subsection (1A)(a), for “significant-influence function” substitute |
| |
“relevant senior management function”. |
| |
(3) | For subsection (1B) substitute— |
| |
“(1B) | In subsection (1A) “relevant senior management function” means a |
| |
function which the PRA is satisfied is a senior management function |
| 35 |
as defined in section 59ZA (whether or not the function has been |
| |
designated as such by the FCA).” |
| |
4 | In section 63A of FSMA 2000 (power to impose penalties), in subsection (2), |
| |
|
| |
|
| |
|
for paragraph (b) substitute— |
| |
“(b) | P, when performing the function, is not acting in accordance |
| |
with an approval given under section 59.” |
| |
5 (1) | Section 66 of FSMA 2000 (disciplinary powers) is amended as follows. |
| |
(2) | In subsection (3), for paragraph (ab) (and the “or” following it) substitute— |
| 5 |
“(ab) | impose, for such period as it considers appropriate, any |
| |
conditions in relation to any such approval which it considers |
| |
| |
(ac) | limit the period for which any such approval is to have |
| |
| 10 |
(3) | In subsection (3A), for “restriction” substitute “condition”. |
| |
(4) | In subsection (3B), for “or restriction” substitute “, condition or limitation”. |
| |
(5) | In subsection (3C), for “restriction” substitute “condition”. |
| |
| |
(a) | in paragraph (a), for “or restriction” substitute “, condition or |
| 15 |
| |
(b) | omit the “or” at the end of paragraph (a), |
| |
(c) | in paragraph (b), for “restriction” substitute “condition”, and |
| |
(d) | after that paragraph insert— |
| |
“(c) | vary a limitation so as to increase the period for which |
| 20 |
the approval is to have effect.” |
| |
(7) | In subsection (9), for “restriction” substitute “condition”. |
| |
6 (1) | Section 67 of FSMA 2000 (disciplinary measures: procedure and right to |
| |
refer to Tribunal) is amended as follows. |
| |
(2) | In subsection (1), for “or (ab)” substitute “, (ab) or (ac)”. |
| 25 |
(3) | In subsection (2A), for “restriction” (in both places) substitute “condition”. |
| |
(4) | After subsection (2A) insert— |
| |
“(2B) | A warning notice about a proposal to limit the period for which an |
| |
approval is to have effect must state the length of that period.” |
| |
(5) | In subsection (4), for “or (ab)” substitute “, (ab) or (ac)”. |
| 30 |
(6) | In subsection (5A), for “restriction” (in both places) substitute “condition”. |
| |
(7) | After subsection (5A) insert— |
| |
“(5B) | A decision notice about limiting the period for which an approval is |
| |
to have effect must state the length of that period.” |
| |
(8) | In subsection (7), for “or (ab)” substitute “, (ab) or (ac)”. |
| 35 |
7 | In section 69 of FSMA 2000 (statement of policy), in subsection (1)— |
| |
(a) | in paragraph (a), for “or restrictions” substitute “, conditions or |
| |
| |
(b) | omit the “and” at the end of paragraph (b); |
| |
(c) | in paragraph (c), for “restrictions” substitute “conditions”; |
| 40 |
|
| |
|
| |
|
(d) | at the end of paragraph (c) insert “; and |
| |
(d) | the period for which approvals under section 59 are to |
| |
have effect as a result of a limitation under section |
| |
| |
8 | In section 138A of FSMA 2000 (modification or waiver of rules), in |
| 5 |
subsection (2), before paragraph (a) insert— |
| |
“(za) | rules made by either regulator under section 64A (rules of |
| |
| |
9 | In section 138D of FSMA 2000 (actions for damages), in subsection (5), before |
| |
| 10 |
“(za) | rules under section 64A (rules of conduct);”. |
| |
10 | In section 140A of FSMA 2000 (interpretation), in the definition of |
| |
| |
| |
(i) | omit sub-paragraph (iii), and |
| 15 |
(ii) | in sub-paragraph (iv), omit “64 or”; |
| |
(b) | in paragraph (b), omit sub-paragraphs (ii) and (iii). |
| |
11 | In section 347 of FSMA 2000 (the record of authorised persons etc.), for |
| |
subsection (9) substitute— |
| |
“(9) | “Relevant authorised person”, in relation to an approved person, |
| 20 |
means the person on whose application approval was given.” |
| |
12 | In section 387 of FSMA 2000 (warning notices), in subsection (1A), for “or |
| |
55I(8)” substitute “, 55I(8) or 61(2D)”. |
| |
13 | In section 388 of FSMA 2000 (decision notices), in subsection (1A), for “or |
| |
55I(8)” substitute “, 55I(8) or 61(2D)”. |
| 25 |
14 | In section 395 of FSMA 2000 (supervisory notices), in subsection (13), after |
| |
| |
“(aa) | 63ZC(4), (8) or (9)(b);”. |
| |
15 (1) | Section 415B of FSMA 2000 (consultation in relation to taking certain |
| |
enforcement action) is amended as follows. |
| 30 |
| |
(a) | in paragraph (b), for “significant-influence” substitute “relevant |
| |
| |
(b) | omit the definitions appearing after that paragraph. |
| |
(3) | After subsection (4) insert— |
| 35 |
| |
“arrangement” has the same meaning as in section 59; |
| |
“relevant senior management function” means a function which |
| |
the FCA is satisfied is a senior management function as |
| |
defined in section 59ZA (whether or not it has been |
| 40 |
designated as such under section 59(6B) or (6C)).” |
| |
16 | In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), in |
| |
| |
(a) | in paragraph (b), omit “64 or”; |
| |
|
| |
|
| |
|
| |
(i) | after “section” insert “63ZD,”, and |
| |
| |
17 | In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority), in |
| |
| 5 |
| |
| |
(i) | after “section” insert “63ZD,”, and |
| |
| |
Financial Services Act 2012 |
| 10 |
18 | In section 14 of the Financial Services Act 2012, omit subsection (4). |
| |
19 (1) | Section 85 of the Financial Services Act 2012 (relevant functions in relation |
| |
to complaints scheme) is amended as follows. |
| |
| |
(a) | in paragraph (b), omit “64 or”; |
| 15 |
| |
(i) | after “section” insert “63ZD,”, and |
| |
| |
| |
| 20 |
| |
(i) | after “section” insert “63ZD,”, and |
| |
| |
| |
| |
The Payment Systems Regulator |
| 25 |
| |
| |
(a) | “the Regulator” means the Payment Systems Regulator; |
| |
(b) | references to the functions of the Regulator are to functions conferred |
| |
on it by or under this Part. |
| 30 |
| |
2 (1) | The constitution of the Regulator must provide for it to have a board whose |
| |
members are the directors of the Regulator. |
| |
(2) | The board is to consist of the following members— |
| |
(a) | a member to chair it, appointed by the FCA with the approval of the |
| 35 |
| |
(b) | a member to be the Managing Director, appointed by the FCA with |
| |
the approval of the Treasury; |
| |
(c) | one or more other members appointed by the FCA. |
| |
|
| |
|
| |
|
(3) | The persons who may be appointed under sub-paragraph (2) include |
| |
persons who are members of the FCA’s governing body. |
| |
(4) | A person may be appointed under sub-paragraph (2) only if the person has |
| |
knowledge or experience which is likely to be relevant to the exercise by the |
| |
Regulator of its functions. |
| 5 |
(5) | A person appointed under sub-paragraph (2)(a) or (b) is liable to removal |
| |
from office by the FCA (acting with the approval of the Treasury). |
| |
(6) | A person appointed under sub-paragraph (2)(c) is liable to removal from |
| |
| |
| 10 |
3 (1) | The Regulator is not to be regarded as exercising functions on behalf of the |
| |
| |
(2) | The officers and staff of the Regulator are not to be regarded as Crown |
| |
| |
| 15 |
4 (1) | The Regulator must adopt an annual budget which has been approved by |
| |
| |
(2) | The budget must be adopted— |
| |
(a) | in the case of the Regulator’s first financial year, as soon as |
| |
reasonably practicable after it is established, and |
| 20 |
(b) | in the case of each subsequent financial year, before the start of the |
| |
| |
(3) | The Regulator may, with the approval of the FCA, vary the budget for a |
| |
financial year at any time after its adoption. |
| |
(4) | Before adopting or varying a budget, the Regulator must consult— |
| 25 |
| |
(b) | such other persons (if any) as the Regulator considers appropriate. |
| |
(5) | The Regulator must publish each budget, and each variation of a budget, in |
| |
the way it considers appropriate. |
| |
Arrangements for discharging functions |
| 30 |
5 (1) | The Regulator may make arrangements for any of its functions to be |
| |
| |
(a) | a committee, sub-committee, officer or member of staff of the |
| |
| |
(b) | an officer or member of staff of the FCA. |
| 35 |
| This is subject to sub-paragraphs (2) to (4). |
| |
(2) | In exercising any functions within sub-paragraph (3), the Regulator must act |
| |
| |
(3) | The functions referred to in sub-paragraph (2) are— |
| |
(a) | giving general directions under section 44; |
| 40 |
|
| |
|