SCHEDULES

SCHEDULE 6Control of business transfers

Section 22

I11

Part 7 of FSMA 2000 is amended as follows.

I22

Before section 104 insert—

103AMeaning of “the appropriate regulator”

1

In this Part “the appropriate regulator” means—

a

in relation to a scheme in respect of which the authorised person concerned is a PRA-authorised person, the PRA;

b

in any other case, the FCA.

2

In this Part, “the authorised person concerned”—

a

in the case of an insurance business transfer scheme, is to be read in accordance with section 105(2);

b

in the case of a banking business transfer scheme, is to be read in accordance with section 106(2);

c

in the case of a reclaim fund business transfer scheme, means the reclaim fund to whose business the scheme relates.

I33

1

Section 109 (scheme reports) is amended as follows.

2

For “Authority”, in each place, substitute “ appropriate regulator ”.

3

After subsection (3) insert—

4

Where the appropriate regulator is the PRA, it must consult the FCA before—

a

nominating or approving a person under subsection (2)(b), or

b

approving a form under subsection (3).

5

Subsection (6) applies where the appropriate regulator is the FCA and either—

a

the transferee is a PRA-authorised person, or

b

the authorised person concerned or the transferee has as a member of its immediate group a PRA-authorised person.

6

The FCA must consult the PRA before—

a

nominating or approving a person under subsection (2)(b), or

b

approving a form under subsection (3).

I44

1

Section 110 (right to participate in proceedings) is amended as follows.

2

The existing provision becomes subsection (1).

3

For paragraph (a) of that subsection substitute—

a

the FCA,

aa

in the case of a scheme falling within subsection (2), the PRA, and

4

After that subsection insert—

2

A scheme falls within this subsection if—

a

the authorised person concerned or the transferee is a PRA-authorised person, or

b

the authorised person concerned or the transferee has as a member of its immediate group a PRA-authorised person.

I55

In section 112 (effect of order sanctioning business transfer scheme), in subsections (10) and (11), for “Authority” substitute “ appropriate regulator ”.

I66

After section 112 insert—

112ZADuty of regulator to provide copy of order

1

Where the PRA receives under section 112(10) a copy of an order it must, without delay, give a copy of it to the FCA.

2

Where the FCA receives under section 112(10) a copy of an order it must, without delay, give a copy of it to the PRA if the order relates to a scheme in respect of which—

a

the transferee is a PRA-authorised person, or

b

the authorised person concerned or the transferee has as a member of its immediate group a PRA-authorised person.

I77

1

Section 113 (appointment of actuary) is amended as follows.

2

In subsection (2)—

a

for “the Authority”, in the first place, substitute “ either regulator ”, and

b

for “Authority”, in the second place, substitute “ regulator which made the application ”.

3

After that subsection insert—

3

An application under subsection (2) may be made by the PRA only if—

a

the authorised person concerned or the transferee is a PRA-authorised person, or

b

the authorised person concerned or the transferee has as a member of its immediate group a PRA-authorised person.

I88

In section 115 (certificates for purposes of insurance business transfers overseas), for “Authority” substitute “ appropriate regulator ”.

I99

Schedule 12 to FSMA (transfer schemes: certificates) is amended as follows.

I1010

In paragraph 1, for “the Authority”, in each place, substitute “ the appropriate regulator ”.

I1111

1

Paragraph 2 is amended as follows.

2

In the following places, for “Authority” substitute “ appropriate regulator ”

a

sub-paragraph (1)(b);

b

in the first place in sub-paragraph (3).

3

In sub-paragraph (3), after “transferred” insert “ certification ”.

4

In sub-paragraph (6)(c), for “, the Authority” substitute

—

i

the PRA, if the transferee is a PRA-authorised person with a Part 4A permission or with permission under Schedule 4;

ii

the FCA, if the transferee is a person with a Part 4A permission or with permission under Schedule 4 but is not a PRA-authorised person.

I1212

In paragraph 3, for “Authority” substitute “ appropriate regulator ”.

I1313

In paragraph 4, for “Authority”, in the first place, substitute “ appropriate regulator ”.

I1414

In paragraph 5, for “Authority”, in the first place, substitute “ appropriate regulator ”.

I1515

In paragraph 5A, for “the Authority” substitute “ the appropriate regulator ”.

I1616

In paragraph 8(2)—

a

for paragraph (a) substitute—

a

if the transferee is a PRA-authorised person with a Part 4A permission or with permission under Schedule 4, the PRA;

aa

if the transferee is a person with Part 4A permission or with permission under Schedule 4 but is not a PRA-authorised person, the FCA;

b

in paragraph (c), after “(a)” insert “ , (aa) ”.

I1717

In paragraph 9, for “Authority” substitute “ appropriate regulator ”.

I1818

1

Paragraph 9A is amended as follows.

2

The existing provision becomes sub-paragraph (1).

3

In that sub-paragraph, for “Authority” substitute “ relevant regulator ”.

4

After that sub-paragraph insert—

2

In this paragraph the “relevant regulator” means—

a

if the transferee is a PRA-authorised person, the PRA;

b

in any other case, the FCA.

I1919

1

Paragraph 10 is amended as follows.

2

In sub-paragraph (2), for “Authority” substitute “ FCA or the PRA ”.

3

In sub-paragraph (5), for “Authority” substitute “ regulator which supervises the transferee's margin of solvency ”.

4

In sub-paragraph (6), for “Authority” substitute “ FCA or the PRA ”.