Bank of England and Financial Services Act 2016
PART 1The Bank of England
Governance
1Membership of court of directors
2Term of office of non-executive directors
3Abolition of Oversight Committee
4Functions of non-executive directors
5Financial stability strategy
6Financial Policy Committee: status and membership
7Monetary Policy Committee: membership
8Monetary Policy Committee: procedure
Financial arrangements
9Audit
10Activities indemnified by Treasury
11Examinations and reviews
Prudential regulation
12Bank to act as Prudential Regulation Authority
13Prudential Regulation Committee
14Accounts relating to Bank’s functions as Prudential Regulation Authority
15Transfer of property etc to Bank
Consequential and transitional provision
16Amendments relating to Part 1
17Saving and transitional provision relating to Part 1
PART 2Financial services
The regulators
18Appointment of Financial Conduct Authority chief executive
19Treasury recommendations to Financial Conduct Authority
20Regulatory principles: diversity
Conduct of persons working in financial services sector
21Extension of relevant authorised persons regime to all authorised persons
22Rules about controlled functions: power to make transitional provision
23Administration of senior managers regime
24Rules of conduct
25Misconduct
26Decisions causing a financial institution to fail: meaning of insolvency
Enforceability of agreements
27Enforceability of agreements relating to credit
28Enforceability of agreements made through unauthorised persons
Illegal money lending
29Illegal money lending
Money laundering
30Money laundering
Transformer vehicles
31Transformer vehicles
Pensions
32Pensions guidance
33Advice about transferring or otherwise dealing with annuity payments
34Independent advice on conversions and transfers of pension benefits: appointed representatives
35Early exit pension charges
Information about resolution planning
36Duty of Bank to provide information to Treasury
Financial Services and Markets Act 2000 consequential amendments
37Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001
PART 3Miscellaneous and general
Banknotes in Scotland and Northern Ireland
38Banks authorised to issue banknotes in Scotland and Northern Ireland
General
39Consequential provision
40Extent
41Commencement
42Short title
SCHEDULES
SCHEDULE 1Prudential Regulation Committee
SCHEDULE 2Amendments relating to Part 1
PART 1Bank of England Act 1998
1The Bank of England Act 1998 is amended as follows....
2In section 2 (functions of court of directors), for subsection...
3In section 2A(2) (financial stability objective) for “, the Financial...
4(1) Section 3A (oversight functions) is amended as follows.
5(1) Section 3C (reviews) is amended as follows.
6In section 3D(1) (publication of reports of performance reviews) for...
7In section 3E(2) (recommendations resulting from review) for “Oversight Committee”...
8(1) Section 3F (oversight: further provisions) is amended as follows....
9(1) Section 4 (annual report by the Bank) is amended...
10Omit section 7A(9)(a) (definition of “qualifying company”).
11In section 9B(4) (Financial Policy Committee) for “Oversight Committee” substitute...
12In section 9O (FPC recommendations within the Bank), after subsection...
13(1) Section 9Y (directions requiring information or documents) is amended...
14(1) Section 9Z (further provisions about directions under section 9Y)...
15In section 14 (publications of statements about decisions)—
16(1) Section 16 (functions of Oversight Committee) is amended as...
17In section 18(6) (reports) after “as soon as” insert “reasonably”....
18In section 40(2) (orders) after “under—” insert— section 1A(1), ....
19(1) Schedule 1 (court of directors) is amended as follows....
20(1) Schedule 2A (Financial Policy Committee) is amended as follows....
21(1) Schedule 3 (Monetary Policy Committee) is amended as follows....
22(1) Schedule 7 (restriction on disclosure of information) is amended...
PART 2Other Acts
23Bank of England Act 1946 (c. 27)
24House of Commons Disqualification Act 1975 (c. 24)
25Northern Ireland Assembly Disqualification Act 1975 (c. 25)
26Financial Services and Markets Act 2000 (c. 8)
27Omit section 2O (independent reviews of PRA).
28Omit section 2P (right to obtain documents etc for purposes...
29In section 3C (duty to follow principles of good governance),...
30(1) Section 3Q (co-operation by FCA and PRA with Bank...
31In section 3R(2) (arrangements for provision of services by and...
32After section 3S insert— Interpretation Interpretation In this Part “enactment” includes— (a) an enactment contained in...
33(1) Section 137J (rules about recovery plans) is amended as...
34(1) Section 137K (rules about resolution packs) is amended as...
35(1) Section 138F (notification of rules) is amended as follows....
36(1) Section 165 (regulators’ power to require information: authorised persons...
37(1) Section 165A (PRA’s power to require information: financial stability)...
38In section 187A(5A) (assessment: consultation by PRA with FCA) for...
39(1) Section 189 (assessment procedure) is amended as follows.
40In section 190(1A) (requests for further information), after “189(1A)” insert...
41In section 192F(3) (consultation between regulators)— (a) for “either regulator”...
42In section 192I(1)(a) (statement of policy relating to directions) after...
43In section 285A(3)(a) (which introduces Part 1 of Schedule 17A)...
44In section 345A (PRA disciplinary measures) omit subsection (6).
45(1) Section 348 (restrictions on disclosure of confidential information) is...
46(1) Section 353A (restriction on disclosing information received from Bank)...
47In section 354B(2) (PRA’s duty to co-operate) for the words...
48Omit section 354C (PRA’s general duty to provide information to...
49In section 417(1) (definitions) after the definition of “authorised person”...
50(1) Schedule 1ZB (Prudential Regulation Authority) is amended as follows....
51(1) Schedule 17A (exercise of Part 18 functions by Bank...
52Banking Act 2009 (c. 1)
53In section 83ZZ (co-operation)— (a) at the end of paragraph...
54(1) Section 83Z1 (delegation of enforcement functions) is amended as...
55In section 89L(2)(c)(i) (application of section 348 of Financial Services...
56(1) Section 96 (ground for applying for bank insolvency order)...
57(1) Section 108 (removal of bank liquidator by court) is...
58In section 117(2)(a) (consents required for making of bank insolvency...
59(1) In section 129A (modifications for banks not regulated by...
60Omit section 204(4)(ba) (Bank may disclose information to PRA).
61Omit section 246(2)(b) (Bank may disclose information to PRA).
62Before section 257 insert— Bank of England” and “Prudential Regulation...
63In section 261 (index of defined terms), at the appropriate...
64Financial Services Act 2012 (c. 21)
65In section 85(8) (definition of relevant functions) for “2A(6)” substitute...
66(1) Section 117 (interpretation) is amended as follows.
67Financial Services (Banking Reform) Act 2013 (c. 33)
68Repeals
SCHEDULE 3Saving and transitional provision relating to Part 1
1Interpretation
2Saving for orders under section 2A(6)(d) of the Financial Services and Markets Act 2000
3Prudential regulation strategy
4Prudential regulation budget
5Annual report
6Information
7Corporation tax: intangible assets
8Construction of enactments
9Construction of other documents
10Continuity: general provision
11(1) Sub-paragraph (2) applies to anything that—
12There may be continued by or in relation to the...
SCHEDULE 4Extension of relevant authorised persons regime to all authorised persons
1Amendments of Financial Services and Markets Act 2000
2(1) Section 59 (approval for particular arrangements) is amended as...
3After section 59ZA insert— Designated senior management functions For the purposes of this Part the following are “designated...
4(1) Section 60 (applications for approval) is amended as follows....
5(1) Section 60A (vetting of candidates by relevant authorised persons)...
6(1) Section 61 (determination of applications) is amended as follows....
7In section 62A(4) (changes in responsibilities of senior managers -...
8In section 63(2A) (authorised person’s duty to review approvals)—
9In the heading of section 63ZA (variation of senior manager’s...
10(1) Section 63ZB (variation of senior manager’s approval on initiative...
11(1) Section 63E (certification of employees by relevant authorised persons)...
12(1) Section 63F (issuing of certificates) is amended as follows....
13(1) Section 64A (rules of conduct) is amended as follows....
14(1) Section 64B (conduct rules) is amended as follows.
15(1) Section 64C (requirement to notify regulator of disciplinary action)...
16(1) Section 66A (misconduct: action by FCA) is amended as...
17(1) Section 66B (misconduct: action by PRA) is amended as...
18Omit section 71A (meaning of “relevant authorised person”).
19(1) Section 347 (record of authorised persons etc) is amended...
20In section 415B(5) (consultation in relation to enforcement action), in...
21In section 429(1)(a) (orders subject to affirmative resolution procedure) omit...
22Consequential amendments of Financial Services (Banking Reform) Act 2013

Bank of England and Financial Services Act 2016

2016 Chapter 14

An Act to make provision about the Bank of England; to make provision about the regulation of financial services; to make provision about the issue of banknotes; and for connected purposes.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—