http://www.legislation.gov.uk/id/ukpga/2016/14

SCHEDULES

SCHEDULE 2Amendments relating to Part 1

Section 16

PART 1Bank of England Act 1998

I11

The Bank of England Act 1998 is amended as follows.

I162

In section 2 (functions of court of directors), for subsection (5) substitute—

5
Subsections (2) to (4) are subject to—
a
section 2A (Financial Stability Objective);
b
section 11 (objectives in relation to monetary policy);
c
Part 1A of the Financial Services and Markets Act 2000 (objectives and strategy of the Prudential Regulation Authority).

I173

In section 2A(2) (financial stability objective) for “, the Financial Conduct Authority and the Prudential Regulation Authority)” substitute “ and the Financial Conduct Authority) ”.

1

Section 3A (oversight functions) is amended as follows.

2

In subsection (2)(a)—

a

in sub-paragraph (i), after “Act” insert “ , the objectives specified in relation to the Prudential Regulation Authority in Part 1A of the Financial Services and Markets Act 2000 ”;

b

omit the “and” at the end of sub-paragraph (ii);

c

for sub-paragraph (iii) substitute—

iii
the Bank's strategy determined under section 2,
iv
the Bank's financial stability strategy determined under section 9A, and
v
the strategy of the Prudential Regulation Authority determined under section 2E of the Financial Services and Markets Act 2000;

3

In subsection (4) omit paragraphs (c) to (h).

1

Section 3C (reviews) is amended as follows.

2

In subsection (1)—

a

after “of its” insert “ oversight ”;

b

for “Oversight Committee” substitute “ court of directors ”;

c

in paragraphs (a) and (b) for “Committee” substitute “ court of directors ”.

3

In subsection (3)(a) for “by the Committee in the discharge of any of its” substitute “in relation to the discharge of any of the court's”.

4

Omit subsection (4).

5

In subsection (5) for “the Committee must have regard” substitute “ regard must be had ”.

I36

In section 3D(1) (publication of reports of performance reviews) for “Oversight Committee” substitute “ court of directors ”.

I47

In section 3E(2) (recommendations resulting from review) for “Oversight Committee” substitute “ court of directors ”.

8 I51

Section 3F (oversight: further provisions) is amended as follows.

2

In subsection (1)—

I5a

for “Oversight Committee” substitute “ court of directors ”;

I19c

for “or the Monetary Policy Committee” substitute “ , the Monetary Policy Committee or the Prudential Regulation Committee ”.

3

In subsection (2)—

I5a

for “Oversight Committee” substitute “ court of directors ”;

I19b

for “or the Monetary Policy Committee” substitute “ , the Monetary Policy Committee or the Prudential Regulation Committee for the purposes of exercising its oversight functions ”.

4

After subsection (2) insert—

2A
But a member of the court of directors who has any direct or indirect interest (including any reasonably likely future interest) in any dealing or business which falls to be considered by the Prudential Regulation Committee may not, under the powers conferred by this section—
a
obtain access to any documents relating to the dealing or business, or
b
attend any proceedings of the Prudential Regulation Committee relating to any question arising from its consideration of the dealing or business.

5

In subsection (3)—

a

in paragraph (a)—

I19i

after “Policy Committee” insert “ , the Monetary Policy Committee or the Prudential Regulation Committee ”;

I5ii

for “Oversight Committee” substitute “ court of directors ”;

I19b

omit the “or” at the end of paragraph (b);

I19c

at the end of paragraph (c) insert

, or
d
the powers of the Prudential Regulation Committee under paragraph 15(2) of Schedule 6A.

I56

In the heading, for “Committee” substitute “ functions ”.

9 I61

Section 4 (annual report by the Bank) is amended as follows.

I62

For subsection (2)(a) substitute—

a
a report by the court of directors on the matters which it reviews, monitors or otherwise considers in the performance of its oversight functions (as defined by section 3A(2)),

I203

In subsection (2)(b)—

a

for “statement” substitute “ statements ”;

b

after “7(2)” insert “ and (2A) ”;

c

for “it” substitute “ them ”.

I205

After subsection (6) insert—

7
The Chancellor may comply with subsection (6) by laying a document containing a report under this section together with a report by the Prudential Regulation Authority under paragraph 19 of Schedule 1ZB to the Financial Services and Markets Act 2000.

I2110

Omit section 7A(9)(a) (definition of “qualifying company”).

I711

In section 9B(4) (Financial Policy Committee) for “Oversight Committee” substitute “ court of directors of the Bank ”.

I2212

In section 9O (FPC recommendations within the Bank), after subsection (4) insert—

5
Recommendations by the Committee to the PRA are to be made under section 9Q (and not under this section).

1

Section 9Y (directions requiring information or documents) is amended as follows.

2

In subsection (2) for “or the PRA (“the regulator”) requiring the regulator” substitute “ requiring it ”.

3

In subsection (3) for “regulator”, in each place it occurs, substitute “ FCA ”.

4

In subsection (4) omit—

a

the “and” at the end of paragraph (a);

b

paragraph (b).

5

In the italic heading before section 9Y, omit “or PRA”.

1

Section 9Z (further provisions about directions under section 9Y) is amended as follows.

2

In subsection (2)—

a

omit “or the PRA (“the regulator”)”;

b

for “regulator”, in the second place it occurs, substitute “ FCA ”.

3

In subsection (4), for “regulator to which it is given” substitute “ FCA ”.

I815

In section 14 (publications of statements about decisions)—

a

in subsection (1) after “As soon as” insert “ reasonably ”;

b

in subsection (5) after “As soon as” insert “ reasonably ”.

1

Section 16 (functions of Oversight Committee) is amended as follows.

2

In subsection (1) for “Oversight Committee” substitute “ court of directors of the Bank ”.

3

In subsection (2) for “the function of the Oversight Committee” substitute “ the court's function ”.

4

In the heading, for “Oversight Committee” substitute “ court of directors ”.

I1017

In section 18(6) (reports) after “as soon as” insert “ reasonably ”.

I1118

In section 40(2) (orders) after “under—” insert— “ section 1A(1), ”.

1

Schedule 1 (court of directors) is amended as follows.

2

In paragraph 8(2) for “Chief Executive of the Prudential Regulation Authority” substitute “ chief executive for prudential regulation (see Schedule 6A) ”.

3

In paragraph 11(1), after paragraph (c) insert—

d
a committee consisting of officers, employees or agents of the Bank.

20 I121

Schedule 2A (Financial Policy Committee) is amended as follows.

I122

In paragraph 5 for “Oversight Committee” substitute “ court of directors of the Bank ”.

I263

In paragraph 6 for sub-paragraph (2) substitute—

2
The following persons are disqualified for appointment under section 9B(1)(e)—
a
a member of the Monetary Policy Committee of the Bank appointed under section 13(2)(c);
b
a member of the Prudential Regulation Committee of the Bank appointed under section 30A(2)(g).

I124

In paragraph 9—

a

in sub-paragraph (1) for “Oversight Committee” substitute “ court of directors of the Bank ”;

b

in sub-paragraph (2) for “Oversight Committee” substitute “ court of directors ”.

I125

In paragraph 11—

a

in sub-paragraph (2)(b) for “either” substitute “ one ”;

b

omit sub-paragraph (8).

I126

In paragraph 14—

a

the existing text becomes sub-paragraph (1);

b

after that sub-paragraph insert—

2
The Bank must issue and maintain a code of practice describing how members of the Committee and the Committee are to comply with sub-paragraph (1).
3
The Bank may at any time revise or replace the code.
4
Before issuing, revising or replacing the code, the Bank must consult the Treasury.
5
The Bank must publish the current version of the code in whatever manner it sees fit.
6
The Committee must comply with the code when taking decisions under sub-paragraph (1)(b).

I127

After paragraph 14 insert—

Decisions otherwise than at meetings
15
1
The Committee may take a decision on a matter without a meeting if—
a
a majority of eligible members indicate in writing their agreement to the decision,
b
the eligible members who indicate in writing their agreement to the decision would have constituted a quorum at a meeting of the Committee, and
c
any other requirements determined by the Committee are met.
2
“Eligible members” are members of the Committee who would have been entitled to vote on the matter if the matter had been proposed for decision at a meeting of the Committee.
Power to determine own procedure
16
Subject to paragraphs 11, 14 and 15, the Committee is to determine its own procedure.

21 I131

Schedule 3 (Monetary Policy Committee) is amended as follows.

I132

In paragraph 4(2) for “Oversight Committee” substitute “ court of directors of the Bank ”.

I273

For paragraph 5A substitute—

5A
The following persons are disqualified for appointment under section 13(2)(c)—
a
a member of the Financial Policy Committee of the Bank appointed under section 9B(1)(e);
b
a member of the Prudential Regulation Committee of the Bank appointed under section 30A(2)(g).

I134

In paragraph 8—

a

for “have executive responsibility” substitute “ carry out monetary policy analysis ”;

b

omit the words from “for” to the end.

I135

In paragraph 9(1)—

a

for “Oversight Committee” substitute “ court of directors of the Bank ”;

b

in paragraph (a) for “meetings of the Monetary Policy Committee for more than 3 months” substitute “ 3 or more meetings of the Monetary Policy Committee ”.

I136

After paragraph 9(1) insert—

1A
The court of directors may, with the consent of the Chancellor of the Exchequer, also remove a member appointed under section 13(2)(c) if it is satisfied that in all the circumstances his financial or other interests are such as substantially to affect the functions as member which it would be proper for him to discharge.

I137

In paragraph 14 for “submit a monthly” substitute “ , at least 8 times in each calendar year, submit a ”.

1

Schedule 7 (restriction on disclosure of information) is amended as follows.

2

In paragraph 2(1)—

a

omit the “or” at the end of sub-paragraph (b);

b

at the end of sub-paragraph (c) insert

or
d
its functions as the Prudential Regulation Authority.

3

In paragraph 3(1), in column 1 of the table, in the entry for the Financial Conduct Authority or the Prudential Regulation Authority omit “or the Prudential Regulation Authority”.

PART 2Other Acts

Bank of England Act 1946 (c. 27)

I2923

In section 4(1) of the Bank of England Act 1946 (power of Treasury to give directions to the Bank)—

a

the words “monetary policy” become paragraph (a);

b

after that paragraph insert—

b
the exercise by the Bank of its functions as the Prudential Regulation Authority (see section 2A of the Financial Services and Markets Act 2000).

House of Commons Disqualification Act 1975 (c. 24)

I3024

In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices)—

a

omit “Member of the governing body of the Prudential Regulation Authority;”;

b

at the appropriate place insert— “ Member of the Prudential Regulation Committee of the Bank of England appointed under section 30A(2)(f) or (g) of the Bank of England Act 1998 ”.

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

I3125

In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (other disqualifying offices)—

a

omit “Member of the governing body of the Prudential Regulation Authority;”;

b

at the appropriate place insert— “ Member of the Prudential Regulation Committee of the Bank of England appointed under section 30A(2)(f) or (g) of the Bank of England Act 1998 ”.

Financial Services and Markets Act 2000 (c. 8)

I3226

The Financial Services and Markets Act 2000 is amended as follows.

I3327

Omit section 2O (independent reviews of PRA).

I3428

Omit section 2P (right to obtain documents etc for purposes of section 2O).

I3529

In section 3C (duty to follow principles of good governance), for “each regulator” substitute “ the FCA ”.

1

Section 3Q (co-operation by FCA and PRA with Bank of England) is amended as follows.

2

In the heading, omit “and PRA”.

3

In subsection (1), for “Each regulator” substitute “ The FCA ”.

4

In subsection (2), for “regulator” substitute “ FCA ”.

I3731

In section 3R(2) (arrangements for provision of services by and to Bank of England)—

a

for “Either regulator” substitute “ The FCA ”;

b

in paragraphs (a) and (b), for “regulator” substitute “ FCA ”.

I1432

After section 3S insert—

Interpretation
3TInterpretation
In this Part “enactment” includes—
a
an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978;
b
an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament;
c
an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales;
d
an enactment contained in, or in an instrument made under, Northern Ireland legislation.

1

Section 137J (rules about recovery plans) is amended as follows.

2

In subsection (1), for paragraphs (a) and (b) substitute “ the Treasury ”.

3

After subsection (1) insert—

1A
The FCA must also consult the Bank of England.

1

Section 137K (rules about resolution packs) is amended as follows.

2

In subsection (1), for paragraphs (a) and (b) substitute “ the Treasury ”.

3

After subsection (1) insert—

1A
The FCA must also consult the Bank of England.

1

Section 138F (notification of rules) is amended as follows.

2

In subsection (1), for paragraphs (a) and (b) substitute “ to the Treasury ”.

3

After subsection (1) insert—

1A
The FCA must also give written notice to the Bank of England.

4

In subsection (2) for “(1)(b)” substitute “ (1A) ”.

1

Section 165 (regulators' power to require information: authorised persons etc) is amended as follows.

2

In subsection (4)—

a

the words from “information” to the end become paragraph (a);

b

at the end of that paragraph (a) insert

, and
b
in relation to the exercise by the PRA of the powers conferred by subsections (1) and (3), information and documents reasonably required by the Bank of England in connection with the exercise by the Bank of its functions in pursuance of its financial stability objective.

3

After subsection (8) insert—

8A
Financial stability objective” means the objective set out in section 2A of the Bank of England Act 1998.

1

Section 165A (PRA's power to require information: financial stability) is amended as follows.

2

In subsection (3)—

a

the words from “information” to the end become paragraph (a);

b

at the end of that paragraph (a) insert

, and
b
information and documents reasonably required by the Bank of England in connection with the exercise by the Bank of its functions in pursuance of its financial stability objective.

3

After subsection (7) insert—

7A
Financial stability objective” means the objective set out in section 2A of the Bank of England Act 1998.

I4338

In section 187A(5A) (assessment: consultation by PRA with FCA) for “has been directed by the Bank of England under section 189(1A)” substitute “ is required by section 189(1ZB) ”.

1

Section 189 (assessment procedure) is amended as follows.

2

In subsection (1A), for “But where” substitute “ Where the appropriate regulator is the FCA and ”.

3

After subsection (1A) insert—

1ZB
Where the appropriate regulator is the PRA and—
a
the section 178 notice relates to an acquisition or increase of control over a credit institution, investment firm or banking group company, and
b
the credit institution, investment firm or banking group company is one in relation to which the Bank of England is exercising its functions under sections 6A to 6C of the Banking Act 2009 or the special resolution regime under Part 1 of that Act,
the PRA must act under this Part in a timely manner, and shorten the assessment period so far as reasonably practicable.

4

In subsection (1B)—

a

for “subsection (1A)” substitute “ subsections (1A) and (1ZB) ”;

b

omit the definition of “bank”;

c

in the definition of “banking group company” for “that Act” substitute “ the Banking Act 2009 ”.

I4540

In section 190(1A) (requests for further information), after “189(1A)” insert “ or section 189(1ZB) applies ”.

I4641

In section 192F(3) (consultation between regulators)—

a

for “either regulator” substitute “ the FCA ”;

b

for “the regulator” substitute “ it ”.

I4742

In section 192I(1)(a) (statement of policy relating to directions) after “regulator and” insert “ , where the issuing regulator is the FCA, ”.

I4843

In section 285A(3)(a) (which introduces Part 1 of Schedule 17A) for “and the PRA” substitute “ , and between the FCA and the PRA, ”.

I4944

In section 345A (PRA disciplinary measures) omit subsection (6).

1

Section 348 (restrictions on disclosure of confidential information) is amended as follows.

2

In subsection (5)(aa) for “PRA” substitute “ Bank of England ”.

3

At the end insert—

8
In this section references to the Bank of England include the Bank acting in its capacity as the PRA.

1

Section 353A (restriction on disclosing information received from Bank) is amended as follows.

2

In subsection (1) for “A regulator” substitute “ The FCA ”.

3

In subsection (3) for the words from “the regulator” to the end substitute “ the FCA received the information from the Bank of England. ”

4

In subsection (4) for “regulator to which it disclosed the information” substitute “ FCA ”.

5

In subsection (6)—

a

omit paragraph (a);

b

in paragraph (d) for “regulator” substitute “ FCA ”.

6

In subsection (7)—

a

in the words before paragraph (a) for “a regulator” substitute “ the FCA ”;

b

in paragraphs (a)(i) and (b) for “regulator” substitute “ FCA ”.

7

In subsection (8)—

a

for “a regulator” substitute “ the FCA ”;

b

for “that regulator” substitute “ the FCA ”.

8

In subsection (9)—

a

for “Each regulator” substitute “ The FCA ”;

b

in paragraphs (b) and (c) for “regulator” substitute “ FCA ”.

9

After subsection (9) insert—

10
In this section references to the Bank of England include the Bank acting in its capacity as the PRA.

I5247

In section 354B(2) (PRA's duty to co-operate) for the words from “Bank” to the end substitute “ FCA (but see section 3D) ”.

I5348

Omit section 354C (PRA's general duty to provide information to Bank).

I5449

In section 417(1) (definitions) after the definition of “authorised person” insert—

“Bank of England” is to be read in accordance with section 2A(4) to (6);

50 I551

Schedule 1ZB (Prudential Regulation Authority) is amended as follows.

I552

In the shoulder note, for “2A” substitute “ 2AB. ”

I553

In paragraph 1—

a

omit the definition of “the Bank”;

b

for “2A(6)” substitute “ 2AB(3) ”.

I555

In paragraph 19 (annual report)—

a

in sub-paragraph (1), in the words before paragraph (a), for “Treasury” substitute “ Chancellor of the Exchequer ”;

b

omit sub-paragraph (3)(a);

c

in sub-paragraph (4)—

i

for “Treasury” substitute “ Chancellor of the Exchequer ”;

ii

for “them” substitute “ the Chancellor ”;

d

after sub-paragraph (4) insert—

5
The Chancellor may comply with sub-paragraph (4) by laying a document containing a report under this paragraph together with a report under section 4 of the Bank of England Act 1998.

6

Omit paragraphs 22 to 26.

I557

In paragraph 31—

a

in sub-paragraph (2) for “2A(6)” substitute “ 2AB(3) ”;

b

in sub-paragraph (4) for “2A(6)(d)” substitute “ 2AB(3)(d) ”.

1

Schedule 17A (exercise of Part 18 functions by Bank of England) is amended as follows.

2

In paragraph 2(1) for “appropriate regulators” substitute “ FCA ”.

3

In paragraph 17—

a

in sub-paragraph (5), for the words from “the reference” to the end substitute “ subsection (1)(a) required consultation with the FCA. ”;

b

omit sub-paragraph (6)(b).

4

In paragraph 23—

a

the existing text becomes sub-paragraph (1);

b

after that sub-paragraph insert—

2
Paragraph 9(2)(a) does not apply to the reference to the PRA in section 348(8).

5

In paragraph 35(3)—

a

at the end of paragraph (a) insert “ and ”;

b

omit paragraph (b).

Banking Act 2009 (c. 1)

I5752

The Banking Act 2009 is amended as follows.

I5853

In section 83ZZ (co-operation)—

a

at the end of paragraph (a) insert “ , and ”;

b

omit paragraph (b).

1

Section 83Z1 (delegation of enforcement functions) is amended as follows.

2

In subsection (1)—

a

for “appropriate regulator” substitute “ FCA ”;

b

for “that regulator” substitute “ the FCA ”.

3

Omit subsection (2)(b).

4

In subsection (3), for “appropriate regulator” substitute “ FCA ”.

I6055

In section 89L(2)(c)(i) (application of section 348 of Financial Services and Markets Act 2000) omit inserted paragraph (ca).

1

Section 96 (ground for applying for bank insolvency order) is amended as follows.

2

In subsection (2)(a) omit “the PRA has informed the Bank of England that”.

3

In subsection (3)(a), for the words from “has”, in the first place it occurs, to the end substitute “ is satisfied that Condition 2 in section 7 is met, and ”.

1

Section 108 (removal of bank liquidator by court) is amended as follows.

2

In subsection (2) omit “the Bank of England and”.

3

In subsection (3) omit “the PRA and”.

I6358

In section 117(2)(a) (consents required for making of bank insolvency order) omit “the Bank of England and”.

1

In section 129A (modifications for banks not regulated by PRA), the table in subsection (2) is amended as follows.

2

In the entry for section 96, in column 2, for paragraphs (a) and (b) substitute—

a
Read subsection (2)(a) as “the FCA has informed the Bank of England that the FCA is satisfied that Condition 1 in section 7 is met,”.
b
Treat the references to the PRA in subsection (3) as references to the FCA.
ba
Read subsection (3)(a) as “the Bank of England—(i) has informed the FCA that it is satisfied that Condition 2 in section 7 is met, and (ii) has consented to the application,”.

3

In the entry for section 108, in column 2—

a

for paragraph (b) substitute—

b
Treat the reference in subsection (2) to the FCA as a reference to the Bank of England.

b

omit paragraph (c).

4

In the entry for section 117, in column 2, for paragraph (b) substitute—

b
Treat the reference in subsection (2) to the FCA as a reference to the Bank of England.

I6560

Omit section 204(4)(ba) (Bank may disclose information to PRA).

I6661

Omit section 246(2)(b) (Bank may disclose information to PRA).

I6762

Before section 257 insert—

256BBank of England” and “Prudential Regulation Authority”
1
In this Act references to the Bank of England do not include the Bank acting in its capacity as the Prudential Regulation Authority.
2
For the interpretation of references to the Prudential Regulation Authority, see section 2A of the Financial Services and Markets Act 2000.

I6863

In section 261 (index of defined terms), at the appropriate places in the table insert—

Bank of England
256B

Prudential Regulation Authority
256B

Financial Services Act 2012 (c. 21)

I6964

The Financial Services Act 2012 is amended as follows.

I7065

In section 85(8) (definition of relevant functions) for “2A(6)” substitute “ 2AB(3) ”.

1

Section 117 (interpretation) is amended as follows.

2

In subsection (2), in the definition of “the PRA”, at the end insert “ (and see section 2A of the Financial Services and Markets Act 2000 for the interpretation of references to the Prudential Regulation Authority) ”.

3

After subsection (2) insert—

2A
In this Act references to the Bank of England do not include the Bank acting in its capacity as the PRA.

Financial Services (Banking Reform) Act 2013 (c. 33)

I7267

In section 98(5)(d) of the Financial Services (Banking Reform) Act 2013 (definition of relevant functions), for “2A(6)” substitute “ 2AB(3) ”.

Repeals

I15 I7368

The following provisions are repealed.

Short title and chapter	Extent of repeal
Banking Act 2009 (c. 1)	Section 238(2).
Financial Services Act 2012 (c. 21)	Section 2(3).
	Section 3(3), (4)(a), (4)(b)(i) and (4)(d).
	In Schedule 2, paragraphs 1(13) and 2(7).
Financial Services (Banking Reform) Act 2013 (c. 33)	In Schedule 3, paragraph 17.

SCHEDULES

SCHEDULE 2Amendments relating to Part 1

PART 1Bank of England Act 1998

I11

I162

5

a

b

c

I173

I184

1

2

a

b

c

iii

iv

v

3

I25

1

2

a

b

c

3

4

5

I36

I47

8

I51

2

I5a

I5b

I19c

3

I5a

I19b

4

2A

a

b

5

a

I19i

I5ii

I19b

I19c

d

I56

9

I61

I62

a

I203

a

b

c

I64

I205

7

I2110

I711

I2212

5

I2313

1

2

3

4

a

b

5

I2414

1

2

a

b