C1 Part V Performance of Regulated Activities
Conduct F1of approved persons
Words in cross-heading before s. 64 inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 24(1), 26(2)(d)(e), Sch. 2 para. 7
C2C365 Statements and codes: procedure.
F21
Before a regulator issues a statement or code under section 64, it must—
a
consult the other regulator; and
b
after doing so, publish a draft of the statement or code in the way appearing to it to be best calculated to bring the statement or code to the attention of the public.
1A
The duty of the FCA to consult the PRA under subsection (1)(a) applies only in so far as the statement or code applies to persons in relation to whom approval is given under section 59 in respect of the performance by them of significant-influence functions (within the meaning of that section) in relation to the carrying on by PRA-authorised persons of regulated activities.
2
The draft must be accompanied by —
a
a cost benefit analysis; and
b
notice that representations about the proposal may be made to F9the regulator publishing the draft within a specified time.
3
4
If F11a regulator issues the proposed statement or code 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 statement or code differs from the draft published under subsection (1) in a way which is, in the opinion of F4the regulator issuing the statement or code, significant—
a
F13the 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.
6
Neither subsection (2)(a) nor subsection (5)(b) applies if F10the 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.
F37
Subsections (1)(b) and (2) to (6) do not apply in relation to—
a
a statement or code issued 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 statement or code issued by the PRA if it considers that the delay involved in complying with them would—
i
be prejudicial to the safety and soundness of PRA-authorised persons, or
ii
in a case where section 2C applies, be prejudicial to securing the appropriate degree of protection for policyholders.
8
A statement or code must state that it is issued under section 64.
9
10
This section also applies to a proposal to alter or replace a statement or code.
F1211
Cost benefit analysis” means—
a
an analysis of the costs together with an analysis of the benefits that will arise—
i
if the proposed statement or code is issued, or
ii
if subsection (5)(b) applies, from the statement or code that has been issued, and
b
subject to subsection (11A), an estimate of those costs and of those benefits.
11A
If, in the opinion of the regulator concerned—
a
the costs or benefits referred to in subsection (11) 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.
12
“The appropriate comparison” means—
a
in relation to subsection (2)(a), a comparison between the overall position if the statement or code is issued and the overall position if it is not issued;
b
in relation to subsection (5)(b), a comparison between the overall position after the issuing of the statement or code and the overall position before it was issued.
Pt. V (ss. 56-71) modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a), 128(3)(a) (with art. 23(2))