Bank of England and Financial Services Bill [HL]

“(1A)    Where they consider that to do so would contribute to the discharge
by the court of directors of any of its oversight functions, the non-
executive directors of the Bank (or a majority of them) may
arrange—

(a)   for a review to be conducted under this section in relation to
any matter by a person appointed by those directors, and

(b)   for the person conducting the review to make one or more
reports to the court of directors.””

“(a)   include duties and powers conferred on the court of
directors by section 9A (financial stability strategy), but

(b)   except as mentioned in paragraph (a),”

“(3)     The court of directors retains responsibility for a duty or power
which it delegates under this paragraph.””

“(3A)    An examination under this section is not to be concerned with the
merits of—

(a)   policy decisions taken by the Financial Policy Committee,
the Monetary Policy Committee or the Prudential
Regulation Committee;

(b)   policy decisions taken by a committee or other body within
the Bank for the time being having responsibilities for the
supervision of payment systems, settlement systems or
clearing houses, so far as the decisions relate to that
supervision.

(3B)    Subject to subsection (3C), an examination under this section is not
to be concerned with the merits of policy decisions taken by a
committee or other body within the Bank for the time being having
responsibilities for the exercise of any of the Bank’s resolution
functions, so far as the decisions relate to those functions.

(3C)    Where the Bank has exercised relevant resolution functions in
relation to a financial institution, subsection (3B) does not prevent
an examination under this section being concerned with the merits
of policy decisions within that subsection which are relevant to the
Bank’s exercise of its resolution functions in relation to that
institution (whether or not those policy decisions are also relevant
to other financial institutions).

(3D)    “Relevant resolution functions” are—

(a)   any of the stabilisation powers;

(b)   any of the Bank’s functions (other than its functions as the
Prudential Regulation Authority) under or by virtue of—

(i)   Part 2 or 3, or section 233, of the Banking Act 2009,

(ii)   Part 6 of the Financial Services (Banking Reform) Act
2013.”

“( )     For the purposes of this section—

“resolution functions” means the Bank’s functions (other than
its functions as the Prudential Regulation Authority) under
or by virtue of—

(a)   Parts 1 to 3, and section 233, of the Banking Act 2009,

(b)   Part 6 of the Financial Services (Banking Reform) Act
2013,

(c)   the Bank Recovery and Resolution (No. 2) Order
2014 (S.I. 2014/3348);

“stabilisation powers” has the same meaning as in the Banking
Act 2009 (see section 1(4) of that Act).”

“7E Memorandum of understanding

(1)     The Bank and the Comptroller must prepare and maintain a
memorandum of understanding about examinations under section
7D.

(2)     The memorandum must in particular include provision—

(a)   as to functions of the Bank in respect of which the
Comptroller will not usually consider it appropriate to carry
out an examination;

(b)   identifying the committees or other bodies referred to in
section 7D(3A)(b) and (3B);

(c)   establishing a procedure for resolving in a timely fashion
any dispute between the Bank and the Comptroller as to
whether a matter is (under section 7D(3) to (3C)) a matter
with which an examination under section 7D is not to be
concerned;

(d)   for the publication of the views of the Bank and the
Comptroller as to whether a matter is such a matter, in cases
where a dispute between them cannot be resolved.”

“Recommendations

1JA Recommendations by Treasury in connection with general duties

(1)     The Treasury may at any time by notice in writing to the FCA make
recommendations to the FCA about aspects of the economic policy
of Her Majesty’s Government to which the FCA should have regard
when considering—

(a)   how to act in a way which is compatible with its strategic
objective,

(b)   how to advance one or more of its operational objectives,

(c)   how to discharge the duty in section 1B(4) (duty to promote
effective competition in the interests of consumers),

(d)   the application of the regulatory principles in section 3B,
and

(e)   the matter mentioned in section 1B(5)(b) (importance of
taking action to minimise the extent to which it is possible
for a business to be used for a purpose connected with
financial crime).

(2)     The Treasury must make recommendations under subsection (1) at
least once in each Parliament.

(3)     The Treasury must—

(a)   publish in such manner as they think fit any notice given
under subsection (1), and

(b)   lay a copy of it before Parliament.””

“(f)   how far competition is delivering diversity of provision,
including diversity of ownership, geography, community
and size.

“(3A)    “Mutual society” has the same meaning as in section 138K.””

(a)   provision made under section 59AB(2) which modifies,
excludes or applies with modifications any provision of
primary legislation;

(b)   ”.”

“(4A)    Before one regulator varies an approval which was last
varied by the other regulator, it must consult the other
regulator.””

“( )     Regulations under subsection (3) may make the provision
mentioned in subsection (6)(c) only with the consent of the Council
of Lloyd’s.”

  “In subsection (2)(a)—

(a)   references to a member, or a survivor of a member, of a
pension scheme include a member, or a survivor of a
member, of a pension scheme for which the PPF has
assumed responsibility under Part 2 of the Pensions Act
2004 or Part 3 of the Pensions (Northern Ireland) Order 2005
(S.I. 2005/255 (N.I. 1)), but

(b)   in relation to such a member or survivor, the reference to the
flexible benefits that may be provided is to be read as a
reference to the money purchase benefits (within the
meaning of that Act or that Order) that may be provided by
the PPF by virtue of sections 161 and 170 of that Act or
articles 145 and 154 of that Order.

(2B)    ”

““PPF” means the Board of the Pension Protection Fund;”.”

“137FBA           FCA general rules: advice about transferring or otherwise
dealing with annuity payments

(1)     The FCA must make general rules requiring specified authorised
persons to check that an individual—

(a)   who has a right to payments under a relevant annuity, and

(b)   if the Treasury make regulations under subsection (3), who
is not an exempt person by virtue of those regulations,

has received appropriate advice before transferring or otherwise
dealing with the right to those payments.

(2)     The reference in subsection (1) to a right to payments under a
relevant annuity does not include a contingent right to such
payments.

(3)     The Treasury may by regulations provide that an individual whose
financial circumstances meet criteria specified in the regulations is
an exempt person for the purposes of subsection (1)(b).

(4)     Regulations made under subsection (3) may (amongst other things)
specify criteria based on the proportion of the individual’s financial
resources that is represented by the payments under the relevant
annuity or the value of that annuity.

(5)     The rules made by virtue of subsection (1) may include provision—

(a)   about what specified authorised persons must do to check
that an individual has received appropriate advice for the
purposes of those rules;

(b)   about when the check must be carried out.

(6)     For the purposes of this section—

(a)   “relevant annuity” means an annuity specified (by type,
value or otherwise) as a relevant annuity in regulations
made by the Treasury;

(b)   “appropriate advice” means advice specified (by reference
to the person giving the advice or otherwise) as appropriate
advice in regulations made by the Treasury;

(c)   “specified authorised person” means an authorised person
of a description specified in rules made by virtue of
subsection (1).

(7)     If regulations under subsection (3) or (6)(a) make provision about
the value of an annuity, the regulations may also make provision
about the basis on which the value of an annuity is to be calculated.”

“(ab)   section 137FBA;”;

“(ccb)   an activity of the kind specified by article 53E of that
Order (advising on conversion or transfer of pension
benefits);”.

“(3GA)   A representative is also to be treated as representing other
counterparties for the purposes of paragraph (1) where the
representative gives advice (in circumstances constituting
the carrying on of an activity of the kind specified by article
53E of that Order) on behalf of other counterparties.”