Financial Services Act 2012

PART 1 U.K. Amendments of Part 1 of the Act

1 U.K. Part 1 of the Banking Act 2009 is amended as follows.

Commencement Information

I1 Sch. 17 para. 1 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

2 (1) Section 1 (overview) is amended as follows. U.K.

(2) In subsection (5), for paragraph (c) and the “and” before it, substitute—

“(c) the Prudential Regulation Authority, and

(d) the Financial Conduct Authority.”

(3) In the Table, after the entry relating to sections 82 and 83, insert—

“Section 83A

Banks not regulated by the PRA”.

Commencement Information

I2 Sch. 17 para. 2 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

3 U.K. In section 2 (interpretation: “bank”), for “Part 4” substitute “ Part 4A ”.

Commencement Information

I3 Sch. 17 para. 3 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

4 U.K. In section 3 (interpretation: other expressions), for the definition of “the FSA” and the “and” following it, substitute—

““the PRA” means the Prudential Regulation Authority,

“the FCA” means the Financial Conduct Authority, and”.

Commencement Information

I4 Sch. 17 para. 4 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

5 U.K. In section 4 (special resolution objectives), in subsection (3), for paragraph (b) and the “and” following it, substitute—

“(b) the PRA,

(ba) the FCA, and”.

Commencement Information

I5 Sch. 17 para. 5 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

6 U.K. In section 5 (code of practice), in subsection (5), for paragraph (b) and the “and” following it, substitute—

“(b) the PRA,

(ba) the FCA, and”.

Commencement Information

I6 Sch. 17 para. 6 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

7 (1) Section 6 (code of practice: procedure) is amended as follows. U.K.

(2) Omit subsections (1) and (2).

(3) For subsection (4) substitute—

“(4) Before re-issuing the code of practice the Treasury must consult—

(a) the PRA,

(b) the FCA,

(c) the Bank of England, and

(d) the scheme manager of the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000).

(5) As soon as is reasonably practicable after re-issuing the code of practice the Treasury shall lay a copy before Parliament.”

Commencement Information

I7 Sch. 17 para. 7 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

8 (1) Section 7 (general conditions) is amended as follows. U.K.

(2) In subsection (1), for “FSA” substitute “ PRA ”.

(3) In subsection (2), omit the words from “(within” to the end.

(4) In subsection (4), for “FSA” substitute “ PRA ”.

(5) After that subsection insert—

“(4A) The threshold conditions” means the threshold conditions, as defined by subsection (1) of section 55B of the Financial Services and Markets Act 2000, for which the PRA is treated as responsible under subsection (2) of that section.”

(6) In subsection (5)—

(a) for “FSA” substitute “ PRA ”, and

(b) at the end of paragraph (a) insert—

“(aa) the FCA,”.

Commencement Information

I8 Sch. 17 para. 8 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

9 U.K. In section 8 (specific conditions: private sector purchaser and bridge bank), in subsection (3), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I9 Sch. 17 para. 9 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

10 U.K. In section 9 (specific conditions: temporary public ownership), in subsection (4), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I10 Sch. 17 para. 10 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

11 U.K. In section 10 (Banking Liaison Panel), in subsection (3), for paragraph (c) substitute—

“(c) a member appointed by the PRA,

(ca) a member appointed by the FCA,”.

Commencement Information

I11 Sch. 17 para. 11 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

12 U.K. In section 24 (procedure: instruments), in subsection (1), for paragraph (c) and the “and” following it, substitute—

“(c) the PRA,

(ca) the FCA, and”.

Commencement Information

I12 Sch. 17 para. 12 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

13 U.K. In section 25 (procedure: orders), in subsection (2), for paragraph (c) and the “and” following it, substitute—

“(c) the PRA,

(ca) the FCA, and”.

Commencement Information

I13 Sch. 17 para. 13 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

14 U.K. In section 26 (supplemental instruments), in subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I14 Sch. 17 para. 14 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

15 U.K. In section 27 (supplemental orders), in subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I15 Sch. 17 para. 15 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

16 U.K. In section 28 (onward transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I16 Sch. 17 para. 16 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

17 U.K. In section 29 (reverse share transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I17 Sch. 17 para. 17 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

18 U.K. In section 30 (bridge bank: share transfers), in subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I18 Sch. 17 para. 18 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

19 U.K. In section 31 (bridge bank: reverse share transfer), in subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I19 Sch. 17 para. 19 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

20 U.K. In section 41 (procedure), in subsection (1), for paragraph (c) and the “and” following it, substitute—

“(c) the PRA,

(ca) the FCA, and”.

Commencement Information

I20 Sch. 17 para. 20 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

21 U.K. In section 42 (supplemental instruments), in subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I21 Sch. 17 para. 21 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

22 U.K. In section 43 (onward transfer), in subsection (7), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I22 Sch. 17 para. 22 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

23 U.K. In section 44 (reverse property transfer), in subsection (6), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I23 Sch. 17 para. 23 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

24 U.K. In section 45 (temporary public ownership: property transfer), in subsection (8), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I24 Sch. 17 para. 24 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

25 U.K. In section 46 (temporary public ownership: reverse property transfer), in subsection (7), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I25 Sch. 17 para. 25 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

26 U.K. In section 57 (valuation principles), in subsection (4)(a), for “Part 4” substitute “ Part 4A ”.

Commencement Information

I26 Sch. 17 para. 26 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

27 (1) Section 82 (temporary public ownership) is amended as follows. U.K.

(2) In subsection (2), for “the FSA are” substitute “ the PRA is ”.

(3) In subsection (5), for paragraph (a) and the “and” following it, substitute—

“(a) the PRA,

(aa) the FCA, and”.

Commencement Information

I27 Sch. 17 para. 27 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.

28 U.K. After section 83 insert—

“Banks not regulated by PRA U.K.

83A Modifications of Part

(1) In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

(2) In this section—

• “FCA-regulated bank” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000;

• “immediate group” has the meaning given by section 421ZA of the Financial Services and Markets Act 2000;

• “PRA-authorised person” has the meaning given by section 2B(5) of that Act.

TABLE OF MODIFICATIONS

Provision	Modification
Section 7	(a) Treat the references to the PRA in subsections (1), (4), (4A) and (5) as references to the FCA. (b) Ignore subsection (5)(aa). (c) If the bank has as a member of its immediate group a PRA-authorised person the FCA must consult the PRA before determining whether or not Condition 2 is met.
Section 8	Subsection (3)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 9	Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 24	Ignore subsection (1)(c).
Section 25	Ignore subsection (2)(c).
Section 26	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 26A	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 27	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 28	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 29	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 30	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 31	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 41	Ignore subsection (1)(c).
Section 42	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 42A	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 43	Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 45	Subsection (8)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 46	Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 81B	(a) Treat the reference to the PRA in subsection (2) as a reference to the FCA. (b) Ignore subsection (6)(b).
Section 82	(a) Treat the reference to the PRA in subsection (2) as a reference to the FCA. (b) Ignore subsection (5)(a).”

Commencement Information

I28 Sch. 17 para. 28 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.