[F13IPower of PRA to require FCA to refrain from specified actionU.K.
(1)Where the first, second and third conditions are met, the PRA may give a direction under this section to the FCA.
(2)The first condition is that the FCA is proposing—
(a)to exercise any of its regulatory powers in relation to PRA-authorised persons generally, a class of PRA-authorised persons or a particular PRA-authorised person, or
(b)to exercise any of its insolvency powers in relation to—
(i)a PRA-authorised person,
(ii)an appointed representative whose principal, or one of whose principals, is a PRA-authorised person, or
(iii)a person who is carrying on a PRA-regulated activity in contravention of the general prohibition.
(3)In subsection (2)—
(a)“regulatory powers”, in relation to the FCA, means its powers in relation to the regulation of authorised persons, other than its powers in relation to consent for the purposes of section 55F or 55I or its powers under Part 24;
(b)“insolvency powers”, in relation to the FCA, means its powers under Part 24.
(4)The second condition is that the PRA is of the opinion that the exercise of the power in the manner proposed may—
(a)threaten the stability of the UK financial system, or
(b)result in the failure of a PRA-authorised person in a way that would adversely affect the UK financial system.
(5)The third condition is that the PRA is of the opinion that the giving of the direction is necessary in order to avoid the possible consequence falling within subsection (4).
(6)A direction under this section is a direction requiring the FCA not to exercise the power or not to exercise it in a specified manner.
(7)The direction may be expressed to have effect during a specified period or until revoked.
(8)The FCA is not required to comply with a direction under this section if or to the extent that in the opinion of the FCA compliance would be incompatible with any EU obligation or any other international obligation of the United Kingdom.
(9)The reference in subsection (4)(b) to the “failure” of a PRA-authorised person is to be read in accordance with section 2J(3) and (4).]
Textual Amendments
F1Pt. 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.