Financial Services Act 2021 (c. 22)

SCHEDULES

SCHEDULE 2 U.K. Prudential regulation of FCA investment firms

PART 2 U.K. Minor and consequential amendments

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

Commencement Information

I1 Sch. 2 para. 2 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

3 U.K. In section 133(7A) (proceedings before the Tribunal: meaning of “disciplinary reference”), after paragraph (ia) insert—

“(ib) a decision to take action under section 143W;”.

Commencement Information

I2 Sch. 2 para. 3 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

4 U.K. In section 137A (the FCA's general rules), at the end insert—

“(7) Subsection (6) is subject to sections 143C(4) and 143D(6).”

Commencement Information

I3 Sch. 2 para. 4 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

5 U.K. In section 165(7) (regulators' power to require information), after paragraph (d) insert—

“(da) by the FCA, to impose requirements on a person who provides, or has provided, a service to an FCA investment firm or to a relevant parent undertaking of such a firm;”.

Commencement Information

I4 Sch. 2 para. 5 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

6 (1) Section 166 (regulators' power to require reports by skilled persons) is amended as follows. U.K.

(2) In subsection (10), after “subsection (11)” insert “ or (12) ”.

(3) After subsection (11) insert—

“(12) This subsection applies to a person who provides, or has provided, a service to an FCA investment firm or to a relevant parent undertaking of such a firm.”

Commencement Information

I5 Sch. 2 para. 6 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

7 (1) Section 167 (regulators' power to appoint investigators) is amended as follows. U.K.

(2) In subsection (1)—

(a) in paragraph (a), for “a recognised investment exchange or an authorised person or of” substitute “ a person to whom subsection (1A) applies or ”, and

(b) in paragraph (c), for “a recognised investment exchange or an authorised person” substitute “ a person to whom subsection (1A) applies ”.

(3) After subsection (1) insert—

“(1A) This subsection applies to the following persons—

(a) a recognised investment exchange;

(b) an authorised person;

(c) a relevant parent undertaking of an FCA investment firm;

(d) a person who provides a service to an FCA investment firm or to a relevant parent undertaking of such a firm.”

(4) For subsection (4) substitute—

“(4A) The power conferred by this section may be exercised in relation to a person who has at any time been an authorised person or a person described in subsection (1A)(c) or (d) but only in relation to—

(a) business carried on at any time when the person was an authorised person or a person described in subsection (1A)(c) or (d), or

(b) the ownership or control of the person at such a time.

(4B) The power conferred by this section may be exercised in relation to a person who has at any time been an appointed representative but only in relation to business carried on at any time when the person was an appointed representative.”

(5) In subsection (5A), at the end insert—

“(d) in relation to a person who is, or has at any time been, a person described in subsection (1A)(c) or (d) who is not an authorised person, the FCA.”

Commencement Information

I6 Sch. 2 para. 7 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

8 (1) In section 168(4), after paragraph (i) insert— U.K.

“(ia) a person may have failed to comply with section 143R;

(ib) an individual may have performed or agreed to perform a function in breach of a Part 9C prohibition order;

(ic) a person may have failed to comply with section 143S(6);”.

(2) Section 171 (powers of person appointed under section 167) is amended as follows.

(3) In subsection (1), for the words before paragraph (a) substitute “ An investigator may require a person to whom subsection (1A) applies— ”.

(4) After subsection (1) insert—

“(1A) This subsection applies to the following persons—

(a) the person who is the subject of the investigation (“the person under investigation”);

(b) any person connected with the person under investigation;

(c) where the person under investigation is an FCA investment firm, a person who provides, or has provided, a service to the firm or to a relevant parent undertaking of the firm;

(d) where the person under investigation is a relevant parent undertaking of an FCA investment firm, a person who provides, or has provided, a service to the parent undertaking or to the firm.”

Commencement Information

I7 Sch. 2 para. 8 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

9 (1) Section 176 (entry of premises under warrant) is amended as follows. U.K.

(2) In subsection (3)(a), for “an authorised person or an appointed representative” substitute “ a person to whom subsection (3A) applies ”.

(3) After subsection (3) insert—

“(3A) This subsection applies to the following persons—

(a) an authorised person;

(b) an appointed representative;

(c) a relevant parent undertaking of an FCA investment firm;

(d) a person who provides a service to an FCA investment firm or to a relevant parent undertaking of such a firm.”

Commencement Information

I8 Sch. 2 para. 9 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

10 U.K. After section 177 insert—

“Interpretation U.K.

177A Interpretation of Part 11

In this Part—

• “FCA investment firm” has the meaning given in section 143A;

• “relevant parent undertaking”, in relation to an FCA investment firm, means an authorised parent undertaking or a non-authorised parent undertaking (as defined in section 143B).”

Commencement Information

I9 Sch. 2 para. 10 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

11 U.K. In section 347(1)(g) (record of authorised persons etc), after “order” insert “ or Part 9C prohibition order ”.

Commencement Information

I10 Sch. 2 para. 11 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

12 U.K. In section 391(1ZB) (publication of warning notices), after paragraph (ia) insert—

“(ib) section 143T;

(ic) section 143X;”.

Commencement Information

I11 Sch. 2 para. 12 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

13 U.K. In section 392 (application of third party rights to notices)—

(a) in paragraph (a), after “142T(1),” insert “ 143N(1), 143T(1), 143U(2), 143X(1), ”, and

(b) in paragraph (b), after “142T(4),” insert “ 143N(2), 143T(3), 143U(2), 143X(5), ”.

Commencement Information

I12 Sch. 2 para. 13 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

14 U.K. In section 395(13) (meaning of supervisory notice), after paragraph (bba) insert—

“(bbb) section 143O(3), (6) or (8)(b);”.

Commencement Information

I13 Sch. 2 para. 14 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

15 (1) Section 417(1) (definitions) is amended as follows. U.K.

(2) At the appropriate place insert—

““Part 9C prohibition order” has the meaning given in section 143S;

“Part 9C rules” has the meaning given in section 143F;”.

(3) In the definition of “prohibition order”, after “order”” insert “ (except in the expression “Part 9C prohibition order”) ”.

Commencement Information

I14 Sch. 2 para. 15 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

16 U.K. In section 424A(1) (investment firm), after “this Act” insert “ (except as otherwise provided) ”.

Commencement Information

I15 Sch. 2 para. 16 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

17 (1) Section 429 (parliamentary control of statutory instruments) is amended as follows. U.K.

(2) In subsection (2), after “142W,” insert “ 143C(2), 143D(2), 143G(1), ”.

(3) In subsection (2B), after paragraph (b) insert—

“(ba) provision made under section 143B(2) which amends this Act;”.

Commencement Information

I16 Sch. 2 para. 17 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)

18 U.K. In paragraph 20(4) of Schedule 1ZA (enforcement costs), after paragraph (b) insert—

“(ba) its powers under section 143S (Part 9C prohibition orders),”.

Commencement Information

I17 Sch. 2 para. 18 in force at 1.7.2021 by S.I. 2021/671, reg. 4(b)