F1PART 1AThe Regulators
CHAPTER 1The Financial Conduct Authority
F2Modifications applying if core activity not regulated by PRA
S. 1IA and cross-heading inserted (1.1.2019) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 2, 148(5); S.I. 2018/1306, art. 2(b)
1IAModifications applying if core activity not regulated by PRA
1
If and so long as any regulated activity is a core activity (see section 142B) without also being a PRA-regulated activity (see section 22A), the provisions of this Chapter are to have effect subject to the following modifications.
2
Section 1B is to have effect as if—
a
in subsection (3), after paragraph (c) there were inserted—
d
in relation to the matters mentioned in section 1EA(2), the continuity objective (see section 1EA).
b
in subsection (4), for “or the integrity objective,” there were substituted “, the integrity objective or (in relation to the matters mentioned in section 1EA(2)) the continuity objective,”
.
3
After section 1E there is to be taken to be inserted—
1EAContinuity objective
1
In relation to the matters mentioned in subsection (2), the continuity objective is: protecting the continuity of the provision in the United Kingdom of core services (see section 142C).
2
Those matters are—
a
Part 9B (ring-fencing);
b
ring-fenced bodies (see section 142A);
c
any body corporate incorporated in the United Kingdom that has a ring-fenced body as a member of its group;
d
applications under Part 4A which, if granted, would result, or would be capable of resulting, in a person becoming a ring-fenced body.
3
The FCA's continuity objective is to be advanced primarily by—
a
seeking to ensure that the business of ring-fenced bodies is carried on in a way that avoids any adverse effect on the continuity of the provision in the United Kingdom of core services,
b
seeking to ensure that the business of ring-fenced bodies is protected from risks (arising in the United Kingdom or elsewhere) that could adversely affect the continuity of the provision in the United Kingdom of core services, and
c
seeking to minimise the risk that the failure of a ring-fenced body or of a member of a ring-fenced body's group could adversely affect the continuity of the provision in the United Kingdom of core services.
4
In subsection (3)(c), “failure” is to be read in accordance with section 2J(3) to (4).
Pt. 1A substituted for Pt. 1 (24.1.2013 for specified purposes, 19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 6(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c)(2), Sch. Pts. 2, 3, 4; S.I. 2013/423, art. 3, Sch.