(3) But subsection (1) does not apply to functions under the following
sections of the Enterprise Act 2002—

(none) section 166 (duty to maintain register of undertakings and
orders);

(none) 5section 171 (duty to publish guidance).

(4) So far as is necessary for the purposes of, or in connection with,
subsections (1) and (2)—

(a) references in Part 4 of the Enterprise Act 2002 to the CMA
(including references in provisions of that Act applied by that
10Part) are to be read as including references to the FCA, and

(b) references in that Part to section 5 of that Act are to be read as
including references to section 234M of this Act.

(5) But subsection (4) does not apply—

(a) in relation to section 166 or 171 of that Act, or

(b) 15where the context otherwise requires.

(6) Section 130A of the Enterprise Act 2002 has effect in relation to the
FCA by virtue of subsections (1) and (2) as if—

(a) in subsection (2)(a) of that section, the reference to the
acquisition or supply of goods or services of one or more than
20one description in the United Kingdom were a reference to
the acquisition or provision in the United Kingdom of
financial services, and

(b) in subsection (2)(b) of that section, the reference to the extent
to which steps can and should be taken were a reference to
25the extent to which steps that might include steps under Part
4 of that Act can and should be taken.

(7) Before the CMA or the FCA first exercises any of the concurrent
functions in relation to any matter, it must consult the other.

(8) Neither the CMA nor the FCA may exercise any of the concurrent
30functions in relation to any matter if any of those functions have been
exercised in relation to that matter by the other.

234J The FCA’s functions under the Competition Act 1998

(1) The functions to which this subsection applies are to be concurrent
functions of the FCA and the CMA.

(2) 35Subsection (1) applies to the functions of the CMA under the
provisions of Part 1 of the Competition Act 1998, so far as relating to
any of the following that relate to the provision of financial
services—

(a) agreements, decisions or concerted practices of the kind
40mentioned in section 2(1) of that Act,

(b) conduct of the kind mentioned in section 18(1) of that Act,

(c) agreements, decisions or concerted practices of the kind
mentioned in Article 101(1) of the Treaty on the Functioning
of the European Union, and

(d) 45conduct which amounts to abuse of the kind mentioned in
Article 102 of the Treaty on the Functioning of the European
Union.

(3) But subsection (1) does not apply to functions under the following
provisions of that Act—

(none) section 31D(1) to (6) (duty to publish guidance);

(none) section 38(1) to (6) (duty to publish guidance about
5penalties);

(none) section 40B(1) to (4) (duty to publish statement of policy on
penalties);

(none) section 51 (rules).

(4) So far as necessary for the purposes of, or in connection with, the
10provisions of subsections (1) and (2), references to the CMA in Part 1
of the Competition Act 1998 are to be read as including references to
the FCA.

(5) But subsection (4) does not apply—

(a) in relation to sections 31D(1) to (6), 38(1) to (6), 40B(1) to (4),
1551, 52(6) and (8) and 54 of that Act, or

(b) where the context otherwise requires.

234K Duty to consider exercise of powers under Competition Act 1998

(1) Before exercising a power listed in subsection (3), the FCA must
consider whether it would be more appropriate to proceed under the
20Competition Act 1998.

(2) The FCA must not exercise such a power if it considers that it would
be more appropriate to proceed under the Competition Act 1998.

(3) Those powers are—

(a) the power under section 55J(2) to vary or cancel a Part 4A
25permission;

(b) the power under section 55L to impose a requirement on an
authorised person with a Part 4A permission, or to vary a
requirement imposed under that section;

(c) the power to take action under section 88E;

(d) 30the power to take action under section 89U;

(e) the power to give a direction under section 192C;

(f) the power to impose a requirement under section 196.

234L Provision of information and assistance to a CMA group

(1) For the purpose of assisting a CMA group in carrying out a relevant
35investigation, the FCA must give the CMA group—

(a) any relevant information which the FCA has in its
possession, and

(b) any other assistance which the CMA group may reasonably
require in relation to any matters falling within the scope of
40the investigation.

(2) A “relevant investigation” is an investigation carried out on a
reference made by the FCA under section 131 of the Enterprise Act
2002 by virtue of section 234I.

(3) “Relevant information”, in relation to a relevant investigation, is
45information—

(a) which relates to matters falling within the scope of the
investigation, and

(b) which—

(i) is requested by the CMA group for the purpose of the
5investigation, or

(ii) in the FCA’s opinion, it would be appropriate to give
to the CMA group for that purpose.

(4) A CMA group, in carrying out a relevant investigation, must take
into account any information given to it under this section.

(5) 10In this section “CMA group” has the same meaning as in Schedule 4
to the Enterprise and Regulatory Reform Act 2013.

234M Function of keeping market under review

(1) For the purpose of the functions conferred on it by sections 234I to
234L the FCA is to have the function of keeping under review the
15market for financial services.

(2) The function conferred by subsection (1) is to be carried out with a
view to (among other things) ensuring that the FCA has sufficient
information to take informed decisions and to carry out its other
functions effectively.

234N 20Exclusion of general duties

(1) Section 1B (the FCA’s general duties) does not apply in relation to
anything done by the FCA in the carrying out of its functions by
virtue of sections 234I to 234L.

(2) But in the carrying out of any functions by virtue of sections 234I to
25234L, the FCA may have regard to any of the matters in respect of
which a duty is imposed by section 1B if it is a matter to which the
CMA is entitled to have regard in the carrying out of those functions.

234O Supplementary provision

(1) If any question arises as to whether, by virtue of section 234I or 234J,
30any functions fall to be, or are capable of being, carried out by the
FCA in relation to any particular case, that question is to be referred
to, and determined by, the Treasury.

(2) No objection is to be taken to anything done under the Competition
Act 1998 or Part 4 of the Enterprise Act 2002 by or in relation to the
35FCA on the ground that it should have been done by or in relation to
the CMA.”

4 In section 3I of FSMA 2000 (power of PRA to require FCA to refrain from
specified action), in subsection (3)(a), after “55I” insert “, a power conferred
on it by sections 234I to 234M”.

5 40In section 348 of FSMA 2000 (restrictions on disclosure of confidential
information by FCA, PRA etc), after subsection (6) insert—

“(7) Nothing in this section applies to information received by a primary
recipient for the purposes of, or in the discharge of, any functions of
the FCA under the Competition Act 1998 or the Enterprise Act 2002
45by virtue of Part 16A of this Act.

(For provision about the disclosure of such information, see Part 9 of
the Enterprise Act 2002.)”

6 In section 354A of FSMA 2000 (FCA’s duty to co-operate with others), after
subsection (2) insert—

“(2A) 50Subsection (1) does not apply in relation to the Competition and
Markets Authority in a case where the FCA has made a reference
under section 131 of the Enterprise Act 2002 as a result of section 234I
(but see section 234L).”

7 (1) Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended
55as follows.

(2) In paragraph 8 (arrangements for discharging functions), after sub-
paragraph (4) insert—

“(5) In respect of the exercise of a function under Part 1 of the
Competition Act 1998, the power in sub-paragraph (1) is subject to
60provision in rules made under section 51 of that Act by virtue of
paragraph 1A of Schedule 9 to that Act.”

(3) In paragraph 23 (fees), after sub-paragraph (2) insert—

“(2A) The functions referred to in sub-paragraph (1)(a) include functions
of the FCA under the Competition Act 1998 or the Enterprise Act
652002 as a result of Part 16A of this Act; but this sub-paragraph is
not to be regarded as limiting the effect of the definition of
“functions” in paragraph 1.”

Part 2 Amendments of other legislation

70Company Directors Disqualification Act 1986

8 In section 9E of the Company Directors Disqualification Act 1986
(interpretation of sections 9A to 9D), in subsection (2), after paragraph (g)
insert—

“(h) the Financial Conduct Authority.”

75Competition Act 1998

9 In section 54 of the Competition Act 1998 (regulators), in subsection (1), after
paragraph (i) insert—

“(j) the Financial Conduct Authority.”

Enterprise Act 2002

10 (1) 80Section 136 of the Enterprise Act 2002 (investigations and reports on market
investigation references) is amended as follows.

(2) In subsection (7), after paragraph (e) insert—

“(ea) in relation to the Financial Conduct Authority, section 234J of
the Financial Services and Markets Act 2000;”.

(3) 85In subsection (8), after “the Office of Rail Regulation,” insert “the Financial
Conduct Authority,”.

Enterprise and Regulatory Reform Act 2013

11 In section 52(4) of the Enterprise and Regulatory Reform Act 2013 (power to
remove concurrent competition functions of sectoral regulators), after
paragraph (g) insert—

“(h) 5the Financial Conduct Authority.”

12 In Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (the
Competition and Markets Authority), in paragraph 16 (concurrency report),
at the end of sub-paragraph (7) insert—

“(i) the Financial Conduct Authority.”

Section 128

10SCHEDULE 9 Building societies

Introductory

1 The Building Societies Act 1986 is amended as follows.

Exclusion of small business deposits from funding limit

2 (1) 15Section 7 (the funding limit) is amended as follows.

(2) In subsection (3), omit the “and” at the end of paragraph (a) and after that
paragraph insert—

“(aa) subject to subsection (3A), the principal of, and interest
accrued on, sums deposited with the society or any
20subsidiary undertaking of the society by a small business (see
subsection (10));”.

(3) After subsection (3) insert—

“(3A) In respect of any day by reference to which the value of X falls to be
calculated for the purposes of subsection (1) in relation to the society,
25the total amount to be disregarded under subsection (3)(aa) may not
exceed 10% of the amount that would, in the absence of subsection
(3)(aa), be the value of X on that day.”

(4) After subsection (6) insert—

“(6ZA) Where a person declares that the person is a small business, the
30person shall, unless the contrary is shown, be conclusively presumed
for the purposes of this section to be a small business.”

(5) After subsection (9) insert—

“(10) In this section “small business” means any person (other than an
individual acting as a sole trader) carrying on a business which had
35a turnover in the relevant financial year of less than £1,000,000.

(11) For the purposes of subsection (10)—

(a) the “relevant financial year”, in relation to any day by
reference to which the value of X falls to be calculated for the

purposes of subsection (1) in relation to a building society,
means the last financial year ending before that day;

(b) “turnover”, in relation to a small business, means the amount
derived from the provision of goods and services falling
5within the business’s ordinary activities, after deduction of
trade discounts, value added tax and any other taxes based
on the amounts so derived;

(c) in respect of any relevant financial year, the reference to
£1,000,000 includes the equivalent amount in any other
10currency, calculated as at the last day of that year.

(12) The Treasury may, by order made by statutory instrument, amend
the figure for the time being specified in subsections (10) and (11)(c).

(13) A statutory instrument containing an order under subsection (12) is
subject to annulment in pursuance of a resolution of either House of
15Parliament.”

3 (1) In article 3 of the Building Societies Act 1986 (Substitution of Specified
Amounts and Modification of the Funding Limits Calculation) Order 2007
(S.I. 2007/860S.I. 2007/860), in paragraph 3, for “the modification required by this article”
substitute “the modifications required by this article and by section
207(3)(aa)”.

(2) The amendment by this paragraph of a provision contained in subordinate
legislation is without prejudice to any power to amend that provision by
subordinate legislation.

Ability to create floating charges

4 (1) 25Omit section 9B (restriction on creation of floating charges).

(2) In Schedule 15A (application of other companies insolvency legislation to
building societies), omit the following paragraphs—

(a) paragraph 18 (which modifies section 15 of the Insolvency Act 1986);

(b) paragraph 20 (which modifies section 19 of that Act);

(c) 30paragraph 40 (which modifies Article 28 of the Insolvency (Northern
Ireland) Order 1989);

(d) paragraph 42 (which modifies Article 31 of that Order).

(3) In consequence of the amendment made by sub-paragraph (1)—

(a) in section 1(1A)(b), for “, 9A and 9B” substitute “and 9A”;

(b) 35in the Building Societies Act 1997, omit section 11;

(c) in section 11(3) of the Banking (Special Provisions) Act 2008, for
paragraph (c) substitute—

“(c) sections 8 and 9A of the Building Societies Act 1986
(restrictions on raising funds and borrowing and on
40transactions involving derivative instruments etc);”;

(d) in section 251 of the Banking Act 2009, omit subsection (7);

(e) in the Financial Services Act 2012, omit section 55.

Annual business statements

5 (1) Section 74 (duty of directors to prepare annual business statement) is
45amended as follows.

(2) In subsection (4), omit the words from “and other officers” to “them”.

(3) In subsection (8), omit “or other officer”.

Summary financial statements

6 (1) Section 76 (summary financial statement for members and depositors) is
5amended as follows.

(2) After subsection (8A) insert—

“(8AA) The society shall also—

(a) publish the summary financial statement and (where
applicable) the auditor’s report on a web site, and

(b) 10ensure that the statement and (where applicable) the report
may be accessed on the web site until the publication of the
next summary financial statement.”

(3) After subsection (8D) insert—

“(8E) If, at any time during the period beginning with the publication of
15the summary financial statement and ending with the publication of
the next summary financial statement, an individual for the first time
subscribes for shares in the society, the society shall at that time
notify the individual of the information in subsection (8C)(c)(i) to
(iii).

(8F) 20In a case where subsection (8E) applies, the society is not required
under section 115B (right to hard copy version) to send the
individual a version of the summary financial statement or (where
applicable) the auditor’s report in hard copy form (within the
meaning of that section).”

(4) 25Omit subsections (9) to (9E).

(5) In subsection (11), for “subsection (9)” substitute “subsection (8AA) or (8E)”.

7 In consequence of the amendments made by paragraph 6—

(a) in section 78(6), for “subsections (8) and (9) of section 76 extend”
substitute “subsection (8) of section 76 extends”;

(b) 30in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary
financial statement,”.

Transfers of business: distributions and share rights

8 (1) Section 100 (regulated terms etc: distributions and share rights) is amended
as follows.

(2) 35For subsection (8) substitute—

“(8) The terms of a transfer of a society’s business may confer a right to
acquire shares in the successor on a member of the society only if the
member—

(a) held shares in the society throughout the period of two years
40ending with the qualifying day, or

(b) on that day, holds deferred shares in the society that are of a
class described in the transfer agreement;

and it is unlawful for any right in relation to shares to be conferred
in contravention of this subsection.”

(3) In subsection (9), for the words from “who” to “and” substitute “who—

(a) held shares in the society throughout the period of two years
5ending with the qualifying day, or

(b) on that day, hold deferred shares in the society that are of a
class described in the transfer agreement;

and”.

Methods of communicating with members etc

9 10After section 115 insert—

“115A Deemed agreement to use of web site

(1) For the purposes of this Act, a person is to be taken to have agreed
with a building society to access a document, information or facility
on a web site if—

(a) 15the person has been asked individually by the society to
agree to access documents, information or facilities generally,
or documents, information or facilities of the description in
question, on a web site, and

(b) the society has not received a response within the period of
2028 days beginning with the date on which the society’s
request was received.

This is subject to subsections (2) to (4).

(2) A person is not to be taken to have so agreed if the society’s request—

(a) did not state clearly what the effect of a failure to respond
25would be, or

(b) was sent less than 12 months after a previous request made to
the person for the purposes of this section in respect of the
same or a similar description of document, information or
facility.

(3) 30A person who is taken to have made an agreement by virtue of
subsection (1) may revoke the agreement.

(4) Subsection (1) does not apply in relation to the following
documents—

(a) a statement required to be sent to members by paragraph 1(1)
35of Schedule 16 (statements in connection with proposed
mergers);

(b) a merger statement (within the meaning of Part 2 of that
Schedule) required to be sent to members by paragraph 3 of
that Schedule;

(c) 40a transfer statement or transfer summary (within the
meaning of Part 1 of Schedule 17) required to be sent to
members by paragraph 4(1) or (2) of that Schedule;

(d) a transfer proposal notification (within the meaning of Part
1A of Schedule 17) required to be sent to members by
45paragraph 5B(1) of that Schedule.

115B Right to hard copy version

(1) Where a person has received a document or information from a
building society otherwise than in hard copy form, the person is
entitled to require the society to send the person a version of the
5document or information in hard copy form.

(2) The society must send the document or information in hard copy
form within 21 days of receipt of the request from the person.

(3) The society may not make a charge for providing the document or
information in that form.

(4) 10Subsection (1) does not apply if the recipient of the document or
information is the FCA or the PRA.

(5) A building society that fails to comply with this section is to be
treated as having contravened rules made under section 137A of the
Financial Services and Markets Act 2000.

(6) 15For the purposes of this section a person is treated as receiving a
document or information from a building society if—

(a) the society is required by this Act to send the document or
information to the person, and

(b) the requirement to send it is treated as satisfied.

(7) 20For the purposes of this section—

(a) a document or information is sent or supplied in hard copy
form if it is sent or supplied in a paper copy or similar form
capable of being read, and

(b) a document or information can be read only if it can be read
25with the naked eye, or (to the extent that it consists of images)
it can be seen with the naked eye.

115C Other agreed forms of communication

(1) A document or information that is sent or supplied by a building
society otherwise than in hard copy form or electronically or by
30means of a web site is validly sent or supplied if it is sent or supplied
in a form or manner that has been agreed by the intended recipient.

(2) For the purposes of this section “hard copy form” is to be read in
accordance with section 115B(7).”

10 In the following provisions, omit “, in a manner agreed between him and the
35society,”—

(none) section 60(7B)(c),

(none) section 61(7D)(c),

(none) section 68(6B)(c),

(none) section 69(15B)(c),

(none) 40section 76(8C)(c).

11 In section 81(3B)(c), omit “, in a manner agreed for the purpose between him
and the society,”.

12 (1) Schedule 2 is amended as follows.

(2) In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the
society,”.

(3) In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between
him and the society for that purpose,”.

(4) 5In paragraph 24(1B)(b), omit “in a manner agreed between the society and
that member,”.

(5) In paragraph 32(2D)(c), omit “, in a manner agreed between the society and
the member,”.

(6) In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between
10him and the society”.

13 In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner
agreed between the society and that person,”.

14 (1) Schedule 11 is amended as follows.

(2) In paragraph 4(9C)(c), omit “, in a manner agreed between him and the
15society,”.

(3) In paragraph 7(7C)(c), for “in a manner agreed between the society and that
person, he” substitute “the person”.

(4) In paragraph 8(3B)(c), omit “, in a manner agreed between him and the
society for the purpose,”.

20Financial year

15 (1) Section 117 (financial year of building societies) is amended as follows.

(2) For subsection (1) substitute—

“(1) A building society’s financial years (apart from its final financial
year) are determined according to its year-end date in each calendar
25year.

For provision about a building society’s final financial year, see
subsection (1G).

(1A) The year-end date of a building society established before 25th
August 1894 is—

(a) 30the date up to which, as at 1st January 1987, the accounts of
the society were annually made up, or

(b) if the society has, at any time before the day on which
subsection (1) comes into force (“the relevant day”), altered
its financial year in exercise of a power within subsection
35(1B), 31st December.

(1B) The powers referred to in subsection (1A)(b) are—

(a) the power conferred by section 70(2) of the Building Societies
Act 1960,

(b) the power conferred by section 128(2) of the Building
40Societies Act 1962, and

(c) the power conferred by subsection (3) of this section (as it had
effect immediately before the relevant day).

(1C) The year-end date of a building society established on or after 25th
August 1894 and before the relevant day is 31st December.

(1D) The year-end date of a building society established on or after the
relevant day is the last day of the month in which the anniversary of
5its establishment falls.

(1E) The financial year of a building society established before the
relevant day is the period of 12 months ending with the year-end
date of the society (but see subsection (1G)).

(1F) In the case of a building society established on or after the relevant
10day—

(a) the initial financial year of the society shall be the period of
more than 6 months, but not more than 18 months, beginning
with the date of its establishment and ending with its year-
end date, and

(b) 15its subsequent financial years are successive periods of 12
months beginning immediately after the end of the previous
financial year and ending with its year-end date (but see
subsection (1G)).

(1G) The final financial year of a building society is a period of less than
2012 months that begins immediately after the end of the previous
financial year and ends with the date as at which the society makes
up its final accounts.

(1H) This section has effect subject to section 117A (alteration of financial
year).”

(3) 25Omit subsections (2) and (3).

16 After section 117 insert—

“117A Alteration of financial year

(1) A building society may by notice given to the FCA specify a new
year-end date.

(2) 30A notice given under subsection (1) has effect in relation to—

(a) the financial year in which the notice is given (“the current
financial year”), and

(b) subsequent financial years.

(3) The notice must state whether the current financial year—

(a) 35is to be shortened, so as to come to an end on the first occasion
on which the new year-end date falls or fell after the
beginning of the current financial year, or

(b) is to be extended, so as to come to an end on the second
occasion on which that date falls or fell after the beginning of
40the current financial year.

(4) A notice extending a building society’s financial year is not effective
if given less than 5 years after the end of an earlier financial year of
the society that was extended under this section.

(5) A financial year of a building society may not be extended so as to
45exceed 18 months and a notice under subsection (1) is ineffective if