F1PART 1AThe Regulators
CHAPTER 1The Financial Conduct Authority
F2Recommendations
S. 1JA and cross-heading inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 19, 41(3); S.I. 2016/627, reg. 2(1)(n)
1JARecommendations by Treasury in connection with general duties
1
The Treasury may at any time by notice in writing to the FCA make recommendations to the FCA about aspects of the economic policy of Her Majesty's Government to which the FCA should have regard when considering—
a
how to act in a way which is compatible with its strategic objective,
b
how to advance one or more of its operational objectives,
c
how to discharge the duty in section 1B(4) (duty to promote effective competition in the interests of consumers),
F3ca
how to discharge the duty in section 1B(4A) (duty to advance competitiveness and growth objective),
d
the application of the regulatory principles in section 3B, and
e
the matter mentioned in section 1B(5)(b) (importance of taking action to minimise the extent to which it is possible for a business to be used for a purpose connected with financial crime).
2
The Treasury must make recommendations under subsection (1) at least once in each Parliament.
F42A
The FCA must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—
a
action that the FCA has taken or intends to take in accordance with the recommendation, or
b
the reasons why the FCA has not acted or does not intend to act in accordance with the recommendation.
2B
The notice under subsection (2A) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given under subsection (1).
2C
Where the FCA has given notice under subsection (2A) in relation to a recommendation, the FCA must by notice in writing update the Treasury on the matters mentioned in subsection (2A)(a) and (b) before the end of each subsequent period of 12 months.
2D
Subsection (2C) does not apply if the Treasury have notified the FCA in writing that no update (or further update) is required.
2E
The FCA is not required under subsection (2A) or (2C) to provide any information whose publication would in the opinion of the FCA be against the public interest.
3
The Treasury must—
a
publish in such manner as they think fit any notice given under F5subsection (1), (2A) or (2C), and
b
lay a copy of it before Parliament.
Pt. 1A substituted for Pt. 1 (24.1.2013 for specified purposes, 19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 6(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c)(2), Sch. Pts. 2, 3, 4; S.I. 2013/423, art. 3, Sch.