Textual Amendments
F1Pt. 5A inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 1
(1)The Bank of England may publish principles to which recognised persons must have regard in performing relevant functions in relation to wholesale cash distribution activities.
(2)Different principles may be published in relation to—
(a)different wholesale cash distribution activities;
(b)different relevant functions;
(c)persons recognised as having market significance only and persons recognised as also having systemic significance.
(3)Before publishing such principles, the Bank must—
(a)consult such persons as appear to the Bank to be representative of persons likely to be affected by the principles, and
(b)obtain the approval of the Treasury.
(1)The Bank of England may publish codes of practice about the performance by recognised persons of relevant functions in relation to wholesale cash distribution activities.
(2)Different codes of practice may be published in relation to—
(a)different wholesale cash distribution activities;
(b)different relevant functions;
(c)persons recognised as having market significance only and persons recognised as also having systemic significance.
(3)Before publishing a code of practice, the Bank of England must consult such persons as appear to the Bank to be representative of persons likely to be affected by the code.
(1)The Bank of England may give directions in writing to a recognised person.
(2)A direction may—
(a)require or prohibit the taking of specified action in relation to the performance of a specified relevant function in relation to a specified wholesale cash distribution activity;
(b)set standards to be met in the performance of a specified relevant function in relation to a specified wholesale cash distribution activity.
(3)Subsection (4) applies if a direction is given to a recognised person for the purpose of resolving or reducing a threat to the stability of the UK financial system.
(4)The recognised person (including the recognised person’s officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction.
(5)A direction given for the purpose mentioned in subsection (3) must—
(a)include a statement that it is given for that purpose, and
(b)inform the recognised person of the effect of subsection (4).
(6)The Treasury may by regulations confer immunity on any person from liability in damages in respect of action or inaction in accordance with a direction under this section (including a direction given for the purpose mentioned in subsection (3)).
(7)Regulations under subsection (6)—
(a)are to be made by statutory instrument, and
(b)are subject to annulment in pursuance of a resolution of either House of Parliament.
(8)An immunity conferred by or under this section does not extend to action or inaction—
(a)in bad faith, or
(b)in contravention of section 6(1) of the Human Rights Act 1998.
(9)In this section, “specified” means specified in the direction.
(1)In exercising powers under this Part, the Bank of England must have regard to any action that the FCA, PRA or Payment Systems Regulator has taken or could take.
(2)The Bank of England must—
(a)consult the FCA before taking action under this Part in respect of a person who is, or has applied to be, an FCA-regulated person;
(b)consult the PRA before taking action under this Part in respect of a person who has, or has applied for, Part 4A permission for the carrying on of a PRA-regulated activity;
(c)consult the Payment Systems Regulator before taking action under this Part in respect of a participant in a regulated payment system.
(3)In subsection (2)(c), “participant” and “regulated payment system” have the same meanings as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act).
(4)If the FCA, PRA or Payment Systems Regulator gives the Bank of England notice that it is considering taking action in respect of a person mentioned in subsection (2), the Bank may not take action under this Part in respect of the person unless—
(a)the FCA, PRA or Payment Systems Regulator (as the case may be) consents, or
(b)the notice is withdrawn.]