The Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015

PART 3 Applications for approval for particular arrangements

Period for consideration of an application to perform controlled functions

10.  In relation to a pre-implementation application—

(a) if the application is received by the appropriate regulator within the meaning of section 60(9) (applications for approval)(1) on or before the rule-making date, the period for consideration referred to in section 61(3A)(determination of applications)(2) for that application is suspended from the day after the rule-making date until the condition in article 11(b) is met in relation to that application;

(b) if the application is received by the appropriate regulator after the rule-making date the period for consideration does not begin to run until the end of the day on which the condition in article 11(b) is met in relation to that application.

Conditions for continuation of an application to perform controlled functions

11.  Article 12 applies to a pre-implementation application if, before 7th March 2016—

(a) the application has not been determined or withdrawn;

(b) each of the regulators has received from the authorised person concerned a notice (an “article 11 notice”) specifying the controlled functions which, on and after 7th March 2016, the application is to be treated as relating to (“the notified application functions”);

(c) each of the notified application functions is an equivalent function in relation to a function to which the pre-implementation application relates; and

(d) if the article 11 notice concerns the performance of a designated senior management function in relation to a relevant authorised person, it contains or is accompanied by a statement setting out the aspects of the affairs of the relevant authorised person which it is intended the person who is the subject of the notice will be responsible for managing in performing the notified application functions.

Continuation of an application to perform controlled functions

12.—(1) A pre-implementation application to which this article applies is to be treated, on and after 7th March 2016, as if it had been made—

(a) for approval to perform the notified functions, and

(b) to the appropriate regulator.

(2) Paragraph (3) of this article applies if, in relation to the application, either regulator has before 7th March 2016—

(a) imposed a requirement under section 60(2)(b) (application for approval)(3);

(b) given a warning notice under section 62(2) (applications for approval: procedure and right to refer to tribunal)(4) or a decision notice under section 62(3) to the interested parties referred to in section 62(5); or

(c) taken any step in connection with giving a warning notice or decision notice under section 62.

(3) The requirement, notice or step is to be treated, on and after 7th March 2016, as having been imposed, given or taken—

(a) in relation to the application as affected by paragraph (1); and

(b) by the appropriate regulator.

(4) Nothing in this article alters the day on which a warning notice or a decision notice is to be treated as having been given to the interested parties.

(5) Paragraph (1) of this article applies whether or not a regulator has given to the authorised person concerned a warning notice or a decision notice under section 62 before 7th March 2016 in relation to an application under section 60.

Regulators’ power to impose requirements for an article 11 notice

13.—(1) An article 11 notice (or a revised article 11 notice) must—

(a) be given in such form as the appropriate regulator may direct; and

(b) contain, or be accompanied by, such information as the appropriate regulator may reasonably require.

(2) The appropriate regulator may require the authorised person concerned to present information which the authorised person concerned is required to give under this article in such form, or to verify it in such a way, as the appropriate regulator may direct, and may in particular give different directions, and impose different requirements, in relation to different notices or categories of notice.

(3) The PRA must consult the FCA before giving a direction under paragraph (2) in relation to a class of persons giving an article 11 notice.

Revision of an article 11 notice

14.—(1) If before 7th March 2016—

(a) there is a change relating to information given in or accompanying an article 11 notice (or a revised notice given in accordance with this article), or

(b) the person giving the notice discovers that any part of that information is inaccurate,

the authorised person concerned must submit a revised notice to the regulators (a “revised article 11 notice”).

(2) If the authorised person concerned submits one or more revised article 11 notices, articles 11 and 12 apply as if references to “notified application functions” were to functions specified in the last revised article 11 notice received by the regulators.

Application of section 62A to a statement provided under article 11(d)

15.  Section 62A (changes in responsibilities of senior managers)(5) has effect in relation to any pre-implementation application to which article 12 applies as if any reference in that section to a statement of responsibilities under section 60(2A)(applications for approval)(6) included a reference to a statement under article 11(d).

Determination of a continuing application

16.  When determining a pre-implementation application which—

(a) has not been withdrawn or determined before 7th March 2016, and

(b) on and after 7th March 2016, is treated under article 12 as having been made in respect of the notified application functions,

the regulator may have regard to anything it could have had regard to if the application had been made on or after 7th March 2016.

(1)

Section 60(9) was added, together with subsections (7) and (8) by the Financial Services Act 2012 (c.81), Schedule 5, paragraphs 1, 4.

(2)

Section 61(3A) was inserted by the Financial Services Act 2012 (c.21), Schedule 5, paragraphs 1, 5.

(3)

Section 60 was amended by the Financial Services Act 2012, section 15 and Schedule 5, paragraphs 1, 4 and the 2013 Act, section 20.

(4)

Section 62 was amended by the Financial Services Act 2012, section 15 and Schedule 5, paragraphs 1, 6 and the 2013 Act, section 23(7).

(5)

Section 62A is inserted by the 2013 Act (c. 33), section 24.

(6)

Section 60(2A) is inserted together with subsections (2B) and (2C) by the 2013 Act, section 20.