http://www.legislation.gov.uk/ukpga/2013/33/section/30/notesExplanatory Notes to Financial Services (Banking Reform) Act 2013Her Majesty’s TreasuryKing's Printer of Acts of Parliament2018-08-30 33 18 December 2013 195 Section 30 repeals sections 64 and 65 of FSMA, and insert new sections 64A and 64B into FSMA. Subsection (1) of section 64A gives the FCA the power to make rules about the conduct of persons it has approved to perform a controlled function and of anyone employed in the relevant authorised person, at whatever level. Subsections (2) and (3) give the PRA a power to make rules about the conduct of persons it has approved to perform senior management functions in PRA-authorised firms and of anyone employed in a relevant authorised person that is PRA-authorised. (The FCA can approve people to perform controlled functions in relation to PRA-authorised firms and the PRA can make rules of conduct applying to such people, if they are performing a senior management function.) Subsections (4) and (5) make clear that the rules can only relate to the conduct of individuals while working for the authorised person who applied for their approval to perform controlled functions, or, if the individual is not an approved person, his or her employer. Subsection (6) ensures that the definition of “employee” will be broad enough to capture someone who, although they are formally self-employed or employed by some other person, are in practice in a position equivalent to an employee, e.g. sub-contractors, employees of sub-contractors or employees of a company in the same group as the firm which is responsible for employing the staff who work for group companies. 196 New section 64B imposes an obligation on RAPs to notify all their employees, and approved persons, of any rules which the regulators have made under section 64A of FSMA which relate to them, and to ensure that the persons concerned understand how the rules apply to them. Where the RAP becomes aware (or suspects) that any of their employees, or approved persons, has breached the rules, the RAP must inform the regulator of this fact.