Bank of England and Financial Services Act 2016

Section 21

SCHEDULE 4 U.K. Extension of relevant authorised persons regime to all authorised persons

Amendments of Financial Services and Markets Act 2000 U.K.

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

Commencement Information

I1 Sch. 4 para. 1 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I2 Sch. 4 para. 1 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I3 Sch. 4 para. 1 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(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 management 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).

Commencement Information

I4 Sch. 4 para. 2 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I5 Sch. 4 para. 2 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I6 Sch. 4 para. 2 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

3 U.K. After section 59ZA insert—

“59ZB Designated senior management functions

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

Commencement Information

I7 Sch. 4 para. 3 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I8 Sch. 4 para. 3 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I9 Sch. 4 para. 3 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(2) In subsection (2A), omit—

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

(b) paragraph (b).

(3) Omit subsection (2C).

(4) Omit subsection (6A).

Commencement Information

I10 Sch. 4 para. 4 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I11 Sch. 4 para. 4 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I12 Sch. 4 para. 4 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(2) In the heading omit “relevant”.

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

(4) Omit subsection (3).

Commencement Information

I13 Sch. 4 para. 5 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I14 Sch. 4 para. 5 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I15 Sch. 4 para. 5 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

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

Commencement Information

I16 Sch. 4 para. 6 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I17 Sch. 4 para. 6 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I18 Sch. 4 para. 6 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

Commencement Information

I19 Sch. 4 para. 7 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I20 Sch. 4 para. 7 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I21 Sch. 4 para. 7 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

8 U.K. In section 63(2A) (authorised person's duty to review approvals)—

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

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

Commencement Information

I22 Sch. 4 para. 8 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I23 Sch. 4 para. 8 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I24 Sch. 4 para. 8 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

Commencement Information

I25 Sch. 4 para. 9 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I26 Sch. 4 para. 9 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I27 Sch. 4 para. 9 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

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

Commencement Information

I28 Sch. 4 para. 10 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I29 Sch. 4 para. 10 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I30 Sch. 4 para. 10 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(2) In the heading omit “relevant”.

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

(4) In 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).

Commencement Information

I31 Sch. 4 para. 11 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I32 Sch. 4 para. 11 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

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

Commencement Information

I33 Sch. 4 para. 12 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I34 Sch. 4 para. 12 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I35 Sch. 4 para. 12 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(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”.

Commencement Information

I36 Sch. 4 para. 13 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I37 Sch. 4 para. 13 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I38 Sch. 4 para. 13 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(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).

Commencement Information

I39 Sch. 4 para. 14 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I40 Sch. 4 para. 14 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I41 Sch. 4 para. 14 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(2) In the heading omit “relevant”.

(3) In subsection (1)—

(a) in paragraph (a) for “a relevant”, in the first place it occurs, substitute “ 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) Omit subsection (5).

Commencement Information

I42 Sch. 4 para. 15 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I43 Sch. 4 para. 15 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I44 Sch. 4 para. 15 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(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) In 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).

Commencement Information

I45 Sch. 4 para. 16 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I46 Sch. 4 para. 16 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I47 Sch. 4 para. 16 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(2) In 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) in 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).

Commencement Information

I48 Sch. 4 para. 17 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I49 Sch. 4 para. 17 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I50 Sch. 4 para. 17 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

Commencement Information

I51 Sch. 4 para. 18 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I52 Sch. 4 para. 18 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I53 Sch. 4 para. 18 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2) (with reg. 7)

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

(2) In subsection (2)—

(a) in 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) in 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. ”

Commencement Information

I54 Sch. 4 para. 19 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I55 Sch. 4 para. 19 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I56 Sch. 4 para. 19 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2)

20 U.K. In section 415B(5) (consultation in relation to enforcement action), in the definition 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). ”

Commencement Information

I57 Sch. 4 para. 20 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I58 Sch. 4 para. 20 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I59 Sch. 4 para. 20 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2)

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

Commencement Information

I60 Sch. 4 para. 21 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I61 Sch. 4 para. 21 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I62 Sch. 4 para. 21 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2)

Consequential amendments of Financial Services (Banking Reform) Act 2013 U.K.

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

(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) Omit 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) a 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 under section 59(3)(a) of that Act.”

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

Commencement Information

I63 Sch. 4 para. 22 in force at 13.9.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(2) (with regs. 3-6)

I64 Sch. 4 para. 22 in force at 10.12.2018 for specified purposes by S.I. 2018/990, reg. 2(1)(3) (with regs. 3-6)

I65 Sch. 4 para. 22 in force at 18.7.2019 for specified purposes by S.I. 2019/1136, reg. 2(2)