Financial Services and Markets Act 2023

PART 2 U.K. Amendments to Part 6 of the Financial Services (Banking Reform) Act 2013

2 U.K. Part 6 of the Financial Services (Banking Reform) Act 2013 (special administration for operators of certain infrastructure systems) is amended as follows.

Commencement Information

I1 Sch. 9 para. 2 in force at 29.8.2023, see s. 86(2)(d)

3 U.K. In section 111 (financial market infrastructure administration), in the heading, after “market” insert “and cash”.

Commencement Information

I2 Sch. 9 para. 3 in force at 29.8.2023, see s. 86(2)(d)

4 (1) Section 112 (interpretation: infrastructure companies) is amended as follows. U.K.

(2) In subsection (2), omit the “or” at the end of paragraph (b) and insert—

“(ba) a person recognised for the purposes of Part 5A of the Banking Act 2009 (wholesale cash distribution) as having systemic significance, or”.

(3) In subsection (4)—

(a) in paragraph (a), for “(2)(a) or (b)” substitute “(2)(a), (b) or (ba)”;

(b) in paragraph (b), after “question” insert “or, in the case of a person falling within subsection (2)(ba), a relevant function”.

(4) In subsection (6), in paragraph (b), for “(2)(a) or (b)” substitute “(2)(a), (b) or (ba)”.

(5) After subsection (6) insert—

“(7) In subsection (4)(b), “relevant function” means a function performed by the person in relation to wholesale cash distribution.”

Commencement Information

I3 Sch. 9 para. 4 in force at 29.8.2023, see s. 86(2)(d)

5 U.K. In section 113 (interpretation: other expressions), in subsection (1)—

(a) in the definition of “the relevant system”, after paragraph (b) insert—

“(ba)

in relation to an infrastructure company falling within subsection (2)(ba) of that section, any system used by the company to facilitate or control wholesale cash distribution,”;

(b) at the end insert—

• ““wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 206E of the Banking Act 2009.”

Commencement Information

I4 Sch. 9 para. 5 in force at 29.8.2023, see s. 86(2)(d)

6 U.K. In section 115 (objective of FMI administration), after subsection (1A) insert—

“(1B) Where an FMI administrator is appointed in relation to a company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, the objective of the FMI administration is—

(a) to ensure that the functions performed by the person in relation to wholesale cash distribution are and continue to be performed efficiently and effectively, and

(b) to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose or those purposes.”

Commencement Information

I5 Sch. 9 para. 6 in force at 29.8.2023, see s. 86(2)(d)

7 U.K. In section 119 (continuity of supply), in subsection (6), in the definition of “supply”, after paragraph (a) insert—

“(aa) in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods or services used by the person in connection with wholesale cash distribution activities;”.

Commencement Information

I6 Sch. 9 para. 7 in force at 29.8.2023, see s. 86(2)(d)

8 U.K. In section 120 (power to direct FMI administrator), in subsection (8), at the end insert “or section 206M of that Act (directions) in relation to a person recognised for the purposes of Part 5A of that Act”.

Commencement Information

I7 Sch. 9 para. 8 in force at 29.8.2023, see s. 86(2)(d)

9 U.K. In section 127 (interpretation of Part), in subsection (1), at the end insert—

• ““wholesale cash distribution” and “wholesale cash distribution activities” have the meanings given by section 113.”

Commencement Information

I8 Sch. 9 para. 9 in force at 29.8.2023, see s. 86(2)(d)