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Financial Services Act 2012

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This is the original version (as it was originally enacted).

Section 106

SCHEDULE 17Amendments of Banking Act 2009 related to Part 2 of this Act

This schedule has no associated Explanatory Notes

PART 1Amendments of Part 1 of the Act

1Part 1 of the Banking Act 2009 is amended as follows.

2(1)Section 1 (overview) is amended as follows.

(2)In subsection (5), for paragraph (c) and the “and” before it, substitute—

(c)the Prudential Regulation Authority, and

(d)the Financial Conduct Authority.

(3)In the Table, after the entry relating to sections 82 and 83, insert—

Section 83ABanks not regulated by the PRA.

3In section 2 (interpretation: “bank”), for “Part 4” substitute “Part 4A”.

4In section 3 (interpretation: other expressions), for the definition of “the FSA” and the “and” following it, substitute—

  • “the PRA” means the Prudential Regulation Authority,

  • “the FCA” means the Financial Conduct Authority, and.

5In section 4 (special resolution objectives), in subsection (3), for paragraph (b) and the “and” following it, substitute—

(b)the PRA,

(ba)the FCA, and.

6In section 5 (code of practice), in subsection (5), for paragraph (b) and the “and” following it, substitute—

(b)the PRA,

(ba)the FCA, and.

7(1)Section 6 (code of practice: procedure) is amended as follows.

(2)Omit subsections (1) and (2).

(3)For subsection (4) substitute—

(4)Before re-issuing the code of practice the Treasury must consult—

(a)the PRA,

(b)the FCA,

(c)the Bank of England, and

(d)the scheme manager of the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000).

(5)As soon as is reasonably practicable after re-issuing the code of practice the Treasury shall lay a copy before Parliament.

8(1)Section 7 (general conditions) is amended as follows.

(2)In subsection (1), for “FSA” substitute “PRA”.

(3)In subsection (2), omit the words from “(within” to the end.

(4)In subsection (4), for “FSA” substitute “PRA”.

(5)After that subsection insert—

(4A)The threshold conditions” means the threshold conditions, as defined by subsection (1) of section 55B of the Financial Services and Markets Act 2000, for which the PRA is treated as responsible under subsection (2) of that section.

(6)In subsection (5)—

(a)for “FSA” substitute “PRA”, and

(b)at the end of paragraph (a) insert—

(aa)the FCA,.

9In section 8 (specific conditions: private sector purchaser and bridge bank), in subsection (3), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

10In section 9 (specific conditions: temporary public ownership), in subsection (4), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

11In section 10 (Banking Liaison Panel), in subsection (3), for paragraph (c) substitute—

(c)a member appointed by the PRA,

(ca)a member appointed by the FCA,.

12In section 24 (procedure: instruments), in subsection (1), for paragraph (c) and the “and” following it, substitute—

(c)the PRA,

(ca)the FCA, and.

13In section 25 (procedure: orders), in subsection (2), for paragraph (c) and the “and” following it, substitute—

(c)the PRA,

(ca)the FCA, and.

14In section 26 (supplemental instruments), in subsection (5), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

15In section 27 (supplemental orders), in subsection (5), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

16In section 28 (onward transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

17In section 29 (reverse share transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

18In section 30 (bridge bank: share transfers), in subsection (5), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

19In section 31 (bridge bank: reverse share transfer), in subsection (5), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

20In section 41 (procedure), in subsection (1), for paragraph (c) and the “and” following it, substitute—

(c)the PRA,

(ca)the FCA, and.

21In section 42 (supplemental instruments), in subsection (5), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

22In section 43 (onward transfer), in subsection (7), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

23In section 44 (reverse property transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

24In section 45 (temporary public ownership: property transfer), in subsection (8), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

25In section 46 (temporary public ownership: reverse property transfer), in subsection (7), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

26In section 57 (valuation principles), in subsection (4)(a), for “Part 4” substitute “Part 4A”.

27(1)Section 82 (temporary public ownership) is amended as follows.

(2)In subsection (2), for “the FSA are” substitute “the PRA is”.

(3)In subsection (5), for paragraph (a) and the “and” following it, substitute—

(a)the PRA,

(aa)the FCA, and.

28After section 83 insert—

Banks not regulated by PRA

83AModifications of Part

(1)In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

(2)In this section—

  • “FCA-regulated bank” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000;

  • “immediate group” has the meaning given by section 421ZA of the Financial Services and Markets Act 2000;

  • “PRA-authorised person” has the meaning given by section 2B(5) of that Act.

TABLE OF MODIFICATIONS
ProvisionModification
Section 7
(a)

Treat the references to the PRA in subsections (1), (4), (4A) and (5) as references to the FCA.

(b)

Ignore subsection (5)(aa).

(c)

If the bank has as a member of its immediate group a PRA-authorised person the FCA must consult the PRA before determining whether or not Condition 2 is met.

Section 8Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 9Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 24Ignore subsection (1)(c).
Section 25Ignore subsection (2)(c).
Section 26Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 26ASubsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 27Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 28Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 29Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 30Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 31Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 41Ignore subsection (1)(c).
Section 42Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 42ASubsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 43Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 45Subsection (8)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 46Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 81B
(a)

Treat the reference to the PRA in subsection (2) as a reference to the FCA.

(b)

Ignore subsection (6)(b).

Section 82
(a)

Treat the reference to the PRA in subsection (2) as a reference to the FCA.

(b)

Ignore subsection (5)(a).

PART 2Amendments of Part 2 of the Act

29Part 2 of the Banking Act 2009 is amended as follows.

30In section 91 (interpretation: “bank”), for “Part 4” substitute “Part 4A”.

31In section 93 (interpretation: other expressions), for subsection (1) substitute—

(1)In this Part—

(a)“the PRA” means the Prudential Regulation Authority, and

(b)“the FCA” means the Financial Conduct Authority.

32In section 95 (application), in subsection (1)(b), for “FSA” substitute “PRA”.

33In section 96 (grounds for applying), for “FSA”, in each place, substitute “PRA”.

34In section 97 (grounds for making), in subsection (1), for “FSA” substitute “PRA”.

35In section 98 (commencement), in subsection (2), for “FSA”, in both places, substitute “PRA”.

36(1)Section 100 (liquidation committee) is amended as follows.

(2)For subsection (2) substitute—

(2)The liquidation committee is to consist initially of—

(a)two individuals nominated by the Bank of England,

(b)one individual nominated by the PRA,

(c)one individual nominated by the FCA, and

(d)one individual nominated by the FSCS.

(3)In subsection (6)(c), for “and the FSA” substitute “, the PRA and the FCA”.

37In section 101 (liquidation committee: supplemental), in subsection (7), for “FSA” substitute “PRA, the FCA”.

38In section 103 (general powers, duties and effect), in the Table—

(a)in the entry relating to section 147 of the Insolvency Act 1986, for “FSA” substitute “PRA”, and

(b)in the entry relating to section 241 of that Act, for “FSA” substitute “PRA”.

39(1)Section 108 (removal by court) is amended as follows.

(2)In subsection (1)(b), for “FSA” substitute “PRA”.

(3)In subsection (2)—

(a)for “FSA” substitute “PRA”, and

(b)after “England” insert “and the FCA”.

(4)In subsection (3), for “FSA” substitute “PRA and the FCA”.

40In section 109 (removal by creditors), in subsection (4) for “and the FSA” substitute “, the PRA and the FCA”.

41In section 113 (company voluntary arrangement), in subsection (2)(b), for sub-paragraph (i) substitute—

(i)the PRA,

(ia)the FCA,.

42In section 115 (dissolution), in subsection (2)(b), for sub-paragraph (i) substitute—

(i)the PRA,

(ia)the FCA,.

43In section 117 (bank insolvency as alternative order), in subsection (2)(a)—

(a)for “FSA” substitute “PRA”, and

(b)after “England” insert “and the FCA”.

44(1)Section 120 (notice of preliminary steps) is amended as follows.

(2)For “FSA”, in each place (including the heading), substitute “PRA”.

(3)In subsection (6), after “filed” insert “(in Scotland, lodged)”.

(4)In subsection (10), in paragraph (a), after “England” insert “and the FCA”.

45After section 129 insert—

129ABanks not regulated by PRA

(1)In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

(2)In this section—

  • “FCA-regulated bank” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000;

  • “immediate group” has the meaning given by section 421ZA of the Financial Services and Markets Act 2000;

  • “PRA-authorised person” has the meaning given by section 2B(5) of that Act.

TABLE OF MODIFICATIONS
ProvisionModification
Section 95Treat the reference to the PRA in subsection (1) as a reference to the FCA.
Section 96
(a)

Treat the references to the PRA in subsections (2) and (3) as references to the FCA.

(b)

If the bank has as a member of its immediate group a PRA-authorised person the Bank of England must consult the PRA before applying for a bank insolvency order.

(c)

The FCA must consult the PRA before applying for a bank insolvency order.

Section 97Treat the reference to the PRA in subsection (1) as a reference to the FCA.
Section 98Treat the references to the PRA in subsection (2) as references to the FCA.
Section 100
(a)

Treat the reference to two individuals in subsection (2)(a) as a reference to one individual.

(b)

Ignore subsection (2)(b).

(c)

Ignore the reference to the PRA in subsection (6)(c).

Section 101Ignore the reference to the PRA in subsection (7).
Section 103In the Table, in the entries relating to sections 147 and 241 of the Insolvency Act 1986, treat the reference to the PRA as a reference to the FCA.
Section 108
(a)

Treat the reference to the PRA in subsections (1) and (2) as a reference to the FCA.

(b)

Ignore the duty to consult the FCA in subsection (2).

(c)

Ignore the reference to the PRA in subsection (3).

Section 109Ignore the reference to the PRA in subsection (4).
Section 113Ignore subsection (2)(b)(i).
Section 115Ignore subsection (2)(b)(i).
Section 117
(a)

Treat the reference to the PRA in subsection (2) as a reference to the FCA.

(b)

Ignore the duty to obtain the consent of the FCA in subsection (2)(a).

Section 120
(a)

Treat the references to the PRA in subsections (5), (7) and (10) as references to the FCA.

(b)

Ignore the duty to inform the FCA in subsection (10)(a).

PART 3Amendments of Part 3 to the Act

46Part 3 of the Banking Act 2009 is amended as follows.

47In section 147 (administrator's proposals), in subsection (6), for “FSA” substitute “PRA and a copy of it to the FCA”.

48In section 153 (successful rescue), in subsection (3), for “FSA” substitute “PRA and the FCA”.

49In section 157 (other processes), in subsection (1), for “Before exercising an insolvency power in respect of a residual bank the FSA” substitute “Before the PRA or the FCA exercises an insolvency power in respect of a residual bank, whichever of them is exercising the power”.

50After section 157 insert—

157ABanks not regulated by PRA

(1)In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

(2)In this section “FCA-regulated bank” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000.

TABLE OF MODIFICATIONS
ProvisionModification
Section 147The bank administrator must send the statement to the FCA (and need not send a copy of it to the PRA).
Section 153Ignore the reference to the PRA in subsection (3).
Section 157Ignore the reference to the PRA in subsection (1).

51In section 166 (interpretation: general), for subsection (2) substitute—

(2)In this Part—

  • “the FCA” means the Financial Conduct Authority, and

  • “the PRA” means the Prudential Regulation Authority.

PART 4Amendments of Parts 4 to 6 of the Act

52Parts 4 to 6 of the Banking Act 2009 are amended as follows.

53(1)Section 183 (interpretation of Part 5) is amended as follows.

(2)In paragraph (c)—

(a)for “section 3(2)” substitute “section 1I”, and

(b)omit “(market confidence)”.

(3)For paragraph (e), and the “and” before it, substitute—

(e)the FCA” means the Financial Conduct Authority,

(f)“Part 4A permission” has the meaning given by section 55A of the Financial Services and Markets Act 2000,

(g)“the PRA” means the Prudential Regulation Authority,

(h)“PRA-regulated activity” has the meaning given by section 22A of the Financial Services and Markets Act 2000, and

(i)“recognised investment exchange” has the meaning given by section 285 of that Act.

54In section 223 (termination of right to issue), in subsections (5) and (6), for “Part 4” substitute “Part 4A”.

55(1)Section 232 (definition) is amended as follows.

(2)In subsections (2) and (6)(a), for “Part 4” substitute “Part 4A”.

(3)In subsection (5B), in the definition of “rules”, for “section 139(1)” substitute “section 137B(1)”.

(4)After subsection (6) insert—

(7)The Treasury may by order amend the definition of “investment activity” in subsection (5B), including by defining that term by reference to rules or guidance made by the PRA or the FCA under the Financial Services and Markets Act 2000.

56In section 234 (regulations: details), for subsection (8)(b) substitute—

(b)the Prudential Regulation Authority,

(ba)the Financial Conduct Authority,.

57In section 235 (regulations: procedure), at the end insert—

(6)An order under section 232(7)—

(a)is to be made by statutory instrument, and

(b)is subject to annulment in pursuance of a resolution of either House of Parliament.

58In section 246 (information), in subsection (2)—

(a)for paragraph (b) substitute—

(b)the Prudential Regulation Authority;

(ba)the Financial Conduct Authority;, and

(b)in paragraph (d), for “or the Financial Services Authority” substitute, “the Prudential Regulation Authority or the Financial Conduct Authority”.

59(1)Section 249 (functions) is amended as follows.

(2)In subsection (1)—

(a)for “Financial Services Authority” substitute “Prudential Regulation Authority or the Financial Conduct Authority”, and

(b)for “the Authority” substitute “that authority”.

(3)In subsection (2), for “Financial Services Authority” substitute “Prudential Regulation Authority or the Financial Conduct Authority”.

(4)Omit subsection (3).

60In section 250 (information), for “Financial Services Authority” substitute “Prudential Regulation Authority.”

61(1)Section 259 (statutory instruments) is amended as follows.

(2)In the entry in the Table relating to section 232, for “232” substitute “232(6)”.

(3)After that entry insert—

232(7)Investment banks: definition of investment activityNegative resolution.

(4)In the entry in the Table relating to section 249, for “FSA—” substitute “PRA or FCA—”.

62In the Table in section 261 (index of defined terms)—

(a)after the entry relating to “enactment” insert—

FCA3, 93, 166 & 183

(b)omit the entry relating to the FSA, and

(c)after the entry relating to “partial property transfer” insert—

PRA3, 93, 166 & 183.

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