Financial Services (Banking Reform) Act 2013

1. INTRODUCTION

2. Summary and Background

   1. Background

   2. Summary

3. Territorial Extent and Application

4. Commentary

   1. Part 1 – Ring-Fencing

      1. Ring-fencing

         1. Section 2: Modification of objectives of the Financial Conduct Authority

         2. Section 3: Amendment of PRA power of direction

         3. Section 4: Ring-fencing of certain activities

         4. Section 5: PRA annual report

         5. Section 6: Ring-fencing transfer schemes

         6. Section 7: Building societies: power to make provision about ring-fencing

         7. Section 8: Independent review of operation of legislation relating to ring-fencing

         8. Section 9: PRA review of proprietary trading

         9. Section 10: Independent review of proprietary trading

         10. Section 11: Reviews of proprietary trading: interpretation

         11. Section 12: Right to obtain documents and information

   2. Part 2 – Depositor Preference and the Financial Services Compensation Scheme

      1. Depositor preference

         1. Section 13: Preferential debts: Great Britain

      2. Financial Services Compensation Scheme

         1. Section 14: Discharge of functions by scheme manager

         2. Section 15: Power to require information

         3. Section 16: Scheme manager: appointment of accounting officer

   3. Part 3 – Bail-in Stabilisation Option

      1. Section 17: Bail-in stabilisation option

   4. Part 4 – Conduct of Persons Working in Financial Services Sector

      1. Amendments of FSMA

         1. Section 18: Functions for which approval is required

         2. Section 19: Senior Management Functions

         3. Section 20: Statements of responsibilities

         4. Section 21: Vetting by relevant authorised persons of candidates for approval

         5. Section 22: Determination of applications for approval

         6. Section 23: Power to give approval subject to conditions or for a limited period

         7. Section 24: Changes in responsibilities of senior managers

         8. Section 25: Duty to notify regulator of grounds for withdrwal of approval

         9. Section 26: Variation of approval

         10. Section 27: Statement of policy

         11. Section 28: Extension of limitation periods for imposing sanctions

         12. Section 29: Certification of employees by relevant authorised persons

         13. Section 30: Rules of conduct

         14. Section 31: Requirement to notify regulator of disciplinary action

         15. Section 32: Definition of misconduct

         16. Section 33: Meaning of “relevant authorised person”

         17. Section 34: Recording information about senior managers

         18. Section 35 and Schedule 3: Consequential amendments relating to Part 4

         19. Section 36: Offence relating to a decision causing a financial institution to fail

         20. Section 37: Section 36: interpretation

         21. Section 38: Institution of proceedings

   5. Part 5 – Regulation of Payment Systems

      1. Overview

         1. Section 39: Overview

      2. The Payment Systems Regulator

         1. Section 40 and Schedule 4: The Payment Systems Regulator

      3. “Payment system” etc

         1. Section 41: Meaning of “payment system”

         2. Section 42: Participants in payment systems etc

      4. Designation as a regulated payment system

         1. Sections 43 to 48: Designation orders

      5. General duties of Regulator

         1. Sections 49 to 53: Duties of Regulator

      6. Regulatory and competition functions

         1. Sections 54 to 58: Powers of Regulator

         2. Sections 59: The Regulator’s functions under Part 4 of the Enterprise Act 2002

         3. Section 60: Restrictions on exercise of functions under Part 4 of the Enterprise Act 2002

         4. Section 61: The Regulator’s functions under the Competition Act 1998

         5. Section 62: Duty to consider exercise of powers under Competition Act 1998

         6. Sections 63 to 67: The Regulator’s competition powers

      7. Complaints

         1. Sections 68 to 70: Complaints

         2. Sections 71 to 79 and Schedule 5: Enforcement and appeals

         3. Section 80: Enforcement of requirement to dispose of interest in payment system

         4. Sections 81 to 90: Information and investigation powers

         5. Sections 91 to 95: Disclosure of information

         6. Section 96: Guidance

         7. Section 97: Reports

         8. Sections 98 to 102: Relationships between the regulators

         9. Sections 103 to 107: Consultation and accountability

         10. Sections 108 to 110: Miscellaneous and supplemental

   6. Part 6 – Special Administration for Operators of Certain Infrastructure Systems

      1. Section 115: Objective of FMI administration

      2. Section 116: Application for an FMI administration order

      3. Section 117: Powers of court

      4. Section 118: FMI administrators

      5. Section 119: Continuity of supply

      6. Section 120: Power to direct FMI administrator

      7. Sections 121 and Schedules 6 and 7: Conduct of administration, transfer schemes etc.

      8. Section 122: Restriction on winding-up orders and voluntary winding-up

      9. Section 123: Restriction on making of ordinary administration orders

      10. Section 124: Restrictions on enforcement of security

      11. Section 125: Loans

      12. Section 126: Indemnities

      13. Section 127: Interpretation of Part

      14. Section 128: Northern Ireland

   7. Part 7 – Miscellaneous

      1. Competition

         1. Section 129 and Schedule 8: Functions of FCA under competition legislation

         2. Section 130: Competition as a secondary objective of the PRA

         3. Section 131: Duty of FCA to make rules restricting charges for high-cost short term credit

         4. Section 132: Role of FCA Consumer Panel in relation to PRA

      2. Parent undertakings

         1. Section 133: Power of FCA and PRA to make rules applying to parent undertakings

         2. Section 134: Duty to meet auditors of certain institutions

      3. Fees to meet Treasury expenditure

         1. Section 135: Fees to meet Treasury expenditure

      4. Parliamentary control of statutory instruments under FSMA 2000

         1. Section 136: Amendments of section 429 of FSMA 2000

      5. Bank of England

         1. Section 137: Accounts of Bank of England and its wholly-owned subsidiaries

      6. Building Societies

         1. Section 138: Building Societies

      7. Claims Management Services

         1. Section 139: Power to impose penalties on persons providing claims management services

         2. Section 140: Recovery of expenditure incurred by Office for Legal Complaints

      8. Minor Amendments

         1. Section 141: Minor amendments

      9. Final Provisions

         1. Section 142: Orders and regulations: general

         2. Section 143: Orders and regulations: parliamentary control

         3. Section 144: Interpretation

         4. Section 145: Power to make further consequential amendments

         5. Section 146: Transitional provisions and savings

         6. Section 147: Extent

         7. Section 148: Commencement and short title

5. Commencement

6. Hansard References