F1PART 9ARules and Guidance
CHAPTER 2Rules: modification, waiver, contravention and procedural provisions
Procedural provisions
138JConsultation by the PRA
1
Before making any rules, the PRA must—
a
consult the FCA, and
b
after doing so, publish a draft of the proposed rules in the way appearing to the PRA to be best calculated to bring them to the attention of the public.
2
The draft must be accompanied by—
a
a cost benefit analysis,
b
an explanation of the purpose of the proposed rules,
c
any statement prepared under section 138K(2),
d
an explanation of the PRA's reasons for believing that making the proposed rules is compatible with its duties under—
i
section 2B(1) or, as the case requires, section 2C(1) or 2D(3), and
ii
section 2H, and
e
notice that representations about the proposals may be made to the PRA within a specified time.
3
Before making the proposed rules, the PRA must have regard to any representations made to it in accordance with subsection (2)(e).
4
If the PRA makes the proposed rules, it must publish an account, in general terms, of—
a
the representations made to it in accordance with subsection (2)(e), and
b
its response to them.
5
If the rules differ from the draft published under subsection (1)(b) in a way which is, in the opinion of the PRA, significant the PRA must publish—
a
details of the difference (in addition to complying with subsection (4)) together with a cost benefit analysis, and
b
any statement prepared under section 138K(4).
6
The requirements to carry out a cost benefit analysis under this section do not apply in relation to rules made under—
a
section 136(2);
b
subsection (1) of section 213 as a result of subsection (4) of that section;
c
section 234;
d
paragraph 31 of Schedule 1ZB;
e
paragraph 12 of Schedule 1A.
7
“Cost benefit analysis” means—
a
an analysis of the costs together with an analysis of the benefits that will arise—
i
if the proposed rules are made, or
ii
if subsection (5) applies, from the rules that have been made, and
b
subject to subsection (8), an estimate of those costs and of those benefits.
8
If, in the opinion of the PRA—
a
the costs or benefits referred to in subsection (7) cannot reasonably be estimated, or
b
it is not reasonably practicable to produce an estimate,
the cost benefit analysis need not estimate them, but must include a statement of the PRA's opinion and an explanation of it.
9
The PRA may charge a reasonable fee for providing a person with a copy of a draft published under subsection (1)(b).
10
This section is subject to section 138L.
Pt. 9A substituted for ss. 138-164 (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 24(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.