(This note is not part of the Order)
This Order brings into force on 21st April 2016 certain provisions of the Financial Services (Banking Reform) Act 2013 (c. 33) (“the Act”).
Section 4 (ring-fencing of certain activities) of the Act (partially commenced on 1st March 2014) is brought into force for the additional purpose of inserting section 142H (ring-fencing rules) of the Financial Services and Markets Act 2000 (c. 8) (“FSMA”). Section 133 (power of the FCA and PRA to make rules applying to parent undertakings) of the Act (partially commenced on 31st December 2014) is brought into force for the additional purpose of inserting section 192JA (rules applying to parent undertakings of ring fenced bodies). Sections 142H and 192JA of FSMA relate to the appropriate regulator’s powers to make rules for ring-fenced bodies and parent undertakings of ring-fenced bodies. A ring fenced body is a UK institution that falls within the definition in section 142A of FSMA. This is the tenth commencement order to be made under the Act.
An impact assessment of the effect that ring fencing will have on the costs of business, the voluntary sector and the public sector has been prepared and is available on HM Treasury’s website (www.gov.uk/treasury) or from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ. No separate impact assessment has been produced for this Order.