Financial Services (Banking Reform) Act 2013

10 Independent review of proprietary trading

(1) The Treasury must, after receiving the report of the PRA under section 9 but before the end of the initial period, appoint one or more persons (“the review panel”) to carry out a review of proprietary trading engaged in (whether or not as a regulated activity) by relevant authorised persons.

(2) The initial period is the period of 2 years beginning with the first day on which section 142G of FSMA 2000 is fully in force.

(3) The members of the review panel must be persons—

(a) who appear to the Treasury to be independent of the PRA, the FCA, the Bank of England and the Treasury, and

(b) who do not appear to the Treasury to have any financial or other interests that could reasonably be regarded as affecting their suitability to serve as members of the review panel.

(4) In appointing the members of the review panel, the Treasury must have regard to the need to ensure that the review panel (considered as a whole) has the necessary experience to undertake the review.

(5) Before appointing the members of the review panel, the Treasury must consult the chair of the Treasury Committee of the House of Commons.

(6) The reference in subsection (5) to the Treasury Committee of the House of Commons—

(a) if the name of that Committee is changed, is a reference to that Committee by its new name, and

(b) if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, is to be treated as a reference to the Committee by which the functions are exercisable;

and any question arising under paragraph (a) or (b) is to be determined by the Speaker of the House of Commons.

(7) If the review panel consists of two or more members, the Treasury must appoint one of them to be the chair of the panel.

(8) The review panel must, within a reasonable time after the end of the initial period, make a written report to the Treasury—

(a) stating whether the panel agrees with the conclusions reached by the PRA in its report under section 9,

(b) stating whether the panel recommends any further restrictions on any kind of proprietary trading in relation to relevant authorised persons, and

(c) making such other recommendations as the panel thinks fit.

(9) The Treasury must—

(a) lay a copy of the report before Parliament, and

(b) publish the report in such manner as they think fit.

(10) Any expenses reasonably incurred in the conduct of the review are to be paid by the Treasury out of money provided by Parliament.

(11) This section is to be read with the interpretative provisions in section 11.