[F1(1)Before a regulator gives a direction under section 316 or 318, it must—
(a)in a case where section 316(1B) requires the regulator to obtain the consent of the other regulator, obtain that consent,
(b)in any other case, consult the other regulator, and
(c)after complying with paragraph (a) or (b), publish a draft of the proposed direction.]
(2)The draft must be accompanied by—
(a)a cost benefit analysis; and
(b)notice that representations about the proposed direction may be made to [F2the regulator] within a specified time.
[F3(3)Before a regulator gives the proposed direction—
(a)it must have regard to any representations made to it in accordance with subsection (2)(b), and
(b)if it was required by subsection (1)(b) to consult the other regulator and proposes to give a direction which differs from the draft published under subsection (1) in a way which is, in the opinion of the regulator, significant, it must again consult the other regulator.]
(4)If [F4the regulator] gives the proposed direction it must publish an account, in general terms, of—
(a)the representations made to it in accordance with subsection (2)(b); and
(b)its response to them.
(5)If the direction differs from the draft published under subsection (1) in a way which is, in the opinion of [F5the regulator], significant—
(a)[F5the regulator] must (in addition to complying with subsection (4)) publish details of the difference; and
(b)those details must be accompanied by a cost benefit analysis.
[F6(6)Subsections (1)(c) and (2) to (5) do not apply in relation to—
(a)a direction given by the FCA if it considers that the delay involved in complying with them would be prejudicial to the interests of consumers, as defined in section 425A, or
(b)a direction given by the PRA if it considers that the delay involved in complying with them would—
(i)be prejudicial to the safety and soundness of the Society, and the members of the Society, taken together, or
(ii)in a case where section 2C applies, be prejudicial to securing the appropriate degree of protection for policyholders.]
(7)Neither subsection (2)(a) nor subsection (5)(b) applies if [F7the regulator concerned] considers—
(a)that, making the appropriate comparison, there will be no increase in costs; or
(b)that, making that comparison, there will be an increase in costs but the increase will be of minimal significance.
(8)[F8A regulator who publishes a draft under subsection (1)] may charge a reasonable fee for providing a person with a copy of [F9the draft].
(9)When [F10a regulator] is required to publish a document under this section it must do so in the way appearing to it to be best calculated to bring it to the attention of the public.
[F11(10)“Cost benefit analysis” means—
(a)an analysis of the costs together with an analysis of the benefits that will arise—
(i)if the proposed direction is given, or
(ii)if subsection (5)(b) applies, from the direction that has been given, and
(b)subject to subsection (10A), an estimate of those costs and of those benefits.
(10A)If, in the opinion of the regulator concerned—
(a)the costs or benefits referred to in subsection (10) 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 opinion of the regulator concerned and an explanation of it.]
(11)“The appropriate comparison” means—
(a)in relation to subsection (2)(a), a comparison between the overall position if the direction is given and the overall position if it is not given;
(b)in relation to subsection (5)(b), a comparison between the overall position after the giving of the direction and the overall position before it was given.
Textual Amendments
F1S. 319(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(a), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F2Words in s. 319(2)(b) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(b), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F3S. 319(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(c), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F4Words in s. 319(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(d), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F5Words in s. 319(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(d), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F6S. 319(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(e), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F7Words in s. 319(7) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(f), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F8Words in s. 319(8) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(g)(i), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F9Words in s. 319(8) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(g)(ii), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F10Words in s. 319(9) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(h), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F11S. 319(10)(10A) substituted for s. 319(10) (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 40(8)(i), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.