The Financial Services Act 2012 (Transitional Provisions) (Rules and Miscellaneous Provisions) Order 2013

EXPLANATORY NOTE

(This note is not part of the Order)

This Order is made under the Financial Services Act 2012 (c.21) (“the 2012 Act”).

Article 1 provides that the Order comes into force on 20th February 2013, and sets out the interpretation of terms used in the purposes of the Order. Article 1(3) excludes the effect of paragraph 2 of Schedule 20, so that in the period up to 1st April 2013 references to the Financial Conduct Authority (“FCA”) are not treated as meaning the Financial Services Authority (“the Authority”) and vice versa.

Article 2 provides that the FCA, the Prudential Regulation Authority (“PRA”) and the Bank of England may designate various instruments made by the Authority, for example rules; designated instruments are to be treated as if they had been made by the designating body. Article 3 sets out procedural requirements for the designation of an instrument. Article 4 provides that instruments that are not designated before the commencement date cease to have effect.

Article 5 provides for the Authority to appoint persons to discharge, before 1st April 2013, certain functions of the FCA. Article 6(1) specifies the functions that may be discharged by appointed persons; article 6(2) provides that certain functions currently exercisable by the FSA are to be treated as exercisable by the FCA. Article 7 provides for: things done by appointed persons to be treated as if they had been done by the FCA acting through its governing body; certain duties on the FCA to consult various persons to be satisfied by consultation undertaken by the Authority; and for certain provisions relating to members of the governing body of the FCA also to apply to appointed persons. Article 8 sets aside procedural requirements for consultation in respect of rules made by the FCA where the rules replicate threshold conditions in Schedule 6 to the Financial Services and Markets Act 2000 (c.8) (“FSMA 2000”).

Article 9 makes transitional provision in respect of waivers and modifications of rules made under FSMA 2000; article 10 makes transitional provision in respect of applications for a waiver or modification or rules; and article 12 sets out definitions relevant for those purposes.

Article 12 makes transitional provision in respect of the Bank of England Act 1998 (c.11) as amended by the 2012 Act.

A full impact assessment of the effect that these Regulations will have on the costs of business and the voluntary sector is available from, Her Majesty’s Treasury, 1 Horse Guards Road, London SW1A 2HQ or on http://www.hm-treasury.gov.uk/ and is published alongside the Regulations on http://www.legislation.gov.uk/.