Bank of England and Financial Services Bill (HL Bill 75)

13 There may be continued by or in relation to the Bank, in its capacity as the
Prudential Regulation Authority, anything (including legal proceedings)
that—

(a) relates to a transferred function or transferred property, and

(b) 5is in the process of being done by or in relation to the company
immediately before the function or property is transferred.

Section 18

SCHEDULE 4 Extension of relevant authorised persons regime to all authorised persons

Amendments of Financial Services and Markets Act 2000

1 10The Financial Services and Markets Act 2000 is amended as follows.

2 (1) Section 59 (approval for particular arrangements) is amended as follows.

(2) For subsection (6A) substitute—

“(6A) If the FCA is satisfied that a function of a description specified in
rules made by the FCA under subsection (3)(a) or (b) is a senior
15management function as defined in section 59ZA, the FCA must
designate the function in the rules as a senior management function.””

(3) Omit subsections (6B) and (6C).

3 After section 59ZA insert—

“59ZB Designated senior management functions

20For the purposes of this Part the following are “designated senior
management functions”—

(a) a function of a description specified in rules made by the FCA
under section 59(3)(a) or (b) which is designated as a senior
management function by the FCA under section 59(6A);

(b) 25a function of a description specified in rules made by the PRA
under section 59(3)(a).””

4 (1) Section 60 (applications for approval) is amended as follows.

(2) In subsection (2A), omit—

(a) the “and” at the end of paragraph (a);

(b) 30paragraph (b).

(3) Omit subsection (2C).

(4) Omit subsection (6A).

5 (1) Section 60A (vetting of candidates by relevant authorised persons) is
amended as follows.

(2) 35In the heading omit “relevant”.

(3) In subsection (1) for “a relevant” substitute “an”.

(4) Omit subsection (3).

6 (1) Section 61 (determination of applications) is amended as follows.

(2) In subsection (1)(b), omit from “in relation” to ““relevant senior” and insert
“(a “senior”.

(3) In subsections (2B) and (3ZA) omit “relevant”.

(4) 5Omit subsections (6) and (7).

7 In section 62A(4) (changes in responsibilities of senior managers -
definitions) omit the definition of “designated senior management
function”.

8 In section 63(2A) (authorised person’s duty to review approvals)—

(a) 10omit “relevant” in the first place it occurs;

(b) omit the words after paragraph (b).

9 In the heading of section 63ZA (variation of senior manager’s approval at
request of relevant authorised person) omit “relevant”.

10 (1) Section 63ZB (variation of senior manager’s approval on initiative of
15regulator) is amended as follows.

(2) In subsection (1), for “a relevant” substitute “an”.

(3) In subsection (2)—

(a) for “a relevant” substitute “an”;

(b) in paragraph (a)(ii) omit “relevant”.

(4) 20Omit subsections (5) and (6).

11 (1) Section 63E (certification of employees by relevant authorised persons) is
amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (1), for “A relevant” substitute “An”.

(4) 25In subsection (3) for “a relevant”, in each place it occurs, substitute “an”.

(5) In subsection (4) omit “relevant” in each place it occurs.

(6) In subsection (6)(b) omit “relevant”.

(7) In subsection (8) omit the definition of “relevant PRA-authorised person”.

(8) Omit subsection (10).

12 (1) 30Section 63F (issuing of certificates) is amended as follows.

(2) In subsection (1) for “A relevant” substitute “An”.

(3) In subsection (2) omit “relevant”.

(4) In subsection (4) for “a relevant” substitute “an”.

(5) In subsection (6) for “a relevant” substitute “an”.

(6) 35In subsection (7) for “A relevant” substitute “An”.

13 (1) Section 64A (rules of conduct) is amended as follows.

(2) In subsection (1)(b), for the words from “relevant” to the end substitute
“authorised persons”.

(3) In subsection (2)(c) omit “relevant”.

(4) In subsection (3) omit the definition of “relevant PRA-authorised person”.

14 (1) 5Section 64B (conduct rules) is amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (2) omit “relevant” in the first place it occurs.

(4) In subsection (3) for “a relevant” substitute “an”.

(5) Omit subsection (7).

15 (1) 10Section 64C (requirement to notify regulator of disciplinary action) is
amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (1)—

(a) in paragraph (a) for “a relevant”, in the first place it occurs, substitute
15“an”;

(b) in the words after paragraph (b) omit “relevant”.

(4) In subsection (3)—

(a) in paragraph (a) omit “relevant authorised persons that are”;

(b) in paragraph (b) omit “relevant”.

(5) 20Omit subsection (5).

16 (1) Section 66A (misconduct: action by FCA) is amended as follows.

(2) In subsection (2)(b)(ii) for “a relevant” substitute “an”.

(3) In subsection (3)(b)(ii) omit “in the case of a relevant authorised person,”.

(4) In subsection (5)(a) for “a relevant” substitute “an”.

(5) 25In subsection (7)—

(a) in the definition of “senior manager”, for “a relevant” substitute “an”;

(b) omit the definition of “designated senior management function”.

(6) Omit subsection (9).

17 (1) Section 66B (misconduct: action by PRA) is amended as follows.

(2) 30In subsection (2)(b)(ii) omit “relevant”.

(3) In subsection (3)(b), for sub-paragraph (ii) substitute—

“(“ii) an employee of the PRA-authorised person.””

(4) In subsection (5)(a) omit “relevant”.

(5) In subsection (7)—

(a) 35in the definition of “senior manager”, omit “relevant”;

(b) omit the definition of “designated senior management function”.

(6) In subsection (8) omit the definition of “relevant PRA-authorised person”.

(7) Omit subsection (9).

18 Omit section 71A (meaning of “relevant authorised person”).

19 (1) Section 347 (record of authorised persons etc) is amended as follows.

(2) In subsection (2)—

(a) 5in paragraph (g)(iv), omit “in a case where the authorised person
concerned is a relevant authorised person,”;

(b) in paragraph (h) for “a relevant” substitute “an”.

(3) In subsection (8A)—

(a) omit the definition of “relevant authorised person”;

(b) 10in the definition of “senior manager”, for “a relevant” substitute “an”;

(c) in the definition of “designated senior management function”, for the
words from “means” to the end substitute “has the meaning given by
section 59ZB”.

20 In section 415B(5) (consultation in relation to enforcement action), in the
15definition of “relevant senior management function”, for the words from
“has been” to the end substitute “is a designated senior management
function as defined by section 59ZB)”.

21 In section 429(1)(a) (orders subject to affirmative resolution procedure) omit
“71A(4),”.

20Consequential amendments of other Acts

22 (1) The Financial Services (Banking Reform) Act 2013 is amended as follows.

(2) Omit section 18(4) (which inserts the subsections substituted or omitted by
paragraph 2).

(3) Omit section 20(3) (which inserts the subsection omitted by paragraph 4(4)).

(4) 25Omit section 23(6) (which inserts the subsections omitted by paragraph
6(4)).

(5) Omit section 33 (which inserts the section omitted by paragraph 18).

(6) For section 37(8) (interpretation) substitute-

“(8) “Senior management function” means—

(a) 30a function of a description specified in rules made by the FCA
under section 59(3)(a) or (b) of FSMA 2000 which is
designated as a senior management function by the FCA
under section 59(6A) of that Act;

(b) a function of a description specified in rules made by the PRA
35under section 59(3)(a) of that Act.””

(7) Omit section 136(2)(a) (which inserts the words omitted by paragraph 21).