Bank of England and Financial Services Act 2016

Section 21

SCHEDULE 4 Extension of relevant authorised persons regime to all authorised persons

Amendments of Financial Services and Markets Act 2000

1 The Financial Services and Markets Act 2000 is amended as follows.

2 (1) Section 59 (approval for particular arrangements) is amended as follows.

(2) For subsection (6A) substitute—

“(6A) If the FCA is satisfied that a function of a description specified in rules made by the FCA under subsection (3)(a) or (b) is a senior management function as defined in section 59ZA, the FCA must designate the function in the rules as a senior management function.”

(3) Omit subsections (6B) and (6C).

3 After section 59ZA insert—

“59ZB Designated senior management functions

For the purposes of this Part the following are “designated senior management functions”—

(a) a function of a description specified in rules made by the FCA under section 59(3)(a) or (b) which is designated as a senior management function by the FCA under section 59(6A);

(b) a function of a description specified in rules made by the PRA under section 59(3)(a).”

4 (1) Section 60 (applications for approval) is amended as follows.

(2) In subsection (2A), omit—

(a) the “and” at the end of paragraph (a);

(b) paragraph (b).

(3) Omit subsection (2C).

(4) Omit subsection (6A).

5 (1) Section 60A (vetting of candidates by relevant authorised persons) is amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (1) for “a relevant” substitute “an”.

(4) Omit subsection (3).

6 (1) Section 61 (determination of applications) is amended as follows.

(2) In subsection (1)(b), omit from “in relation” to ““relevant senior” and insert “(a “senior”.

(3) In subsections (2B) and (3ZA) omit “relevant”.

(4) Omit subsections (6) and (7).

7 In section 62A(4) (changes in responsibilities of senior managers - definitions) omit the definition of “designated senior management function”.

8 In section 63(2A) (authorised person’s duty to review approvals)—

(a) omit “relevant” in the first place it occurs;

(b) omit the words after paragraph (b).

9 In the heading of section 63ZA (variation of senior manager’s approval at request of relevant authorised person) omit “relevant”.

10 (1) Section 63ZB (variation of senior manager’s approval on initiative of regulator) is amended as follows.

(2) In subsection (1), for “a relevant” substitute “an”.

(3) In subsection (2)—

(a) for “a relevant” substitute “an”;

(b) in paragraph (a)(ii) omit “relevant”.

(4) Omit subsections (5) and (6).

11 (1) Section 63E (certification of employees by relevant authorised persons) is amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (1), for “A relevant” substitute “An”.

(4) In subsection (3) for “a relevant”, in each place it occurs, substitute “an”.

(5) In subsection (4) omit “relevant” in each place it occurs.

(6) In subsection (6)(b) omit “relevant”.

(7) In subsection (8) omit the definition of “relevant PRA-authorised person”.

(8) Omit subsection (10).

12 (1) Section 63F (issuing of certificates) is amended as follows.

(2) In subsection (1) for “A relevant” substitute “An”.

(3) In subsection (2) omit “relevant”.

(4) In subsection (4) for “a relevant” substitute “an”.

(5) In subsection (6) for “a relevant” substitute “an”.

(6) In subsection (7) for “A relevant” substitute “An”.

13 (1) Section 64A (rules of conduct) is amended as follows.

(2) In subsection (1)(b), for the words from “relevant” to the end substitute “authorised persons”.

(3) In subsection (2)(c) omit “relevant”.

(4) In subsection (3) omit the definition of “relevant PRA-authorised person”.

14 (1) Section 64B (conduct rules) is amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (2) omit “relevant” in the first place it occurs.

(4) In subsection (3) for “a relevant” substitute “an”.

(5) Omit subsection (7).

15 (1) Section 64C (requirement to notify regulator of disciplinary action) is amended as follows.

(2) In the heading omit “relevant”.

(3) In subsection (1)—

(a) in paragraph (a) for “a relevant”, in the first place it occurs, substitute “an”;

(b) in the words after paragraph (b) omit “relevant”.

(4) In subsection (3)—

(a) in paragraph (a) omit “relevant authorised persons that are”;

(b) in paragraph (b) omit “relevant”.

(5) Omit subsection (5).

16 (1) Section 66A (misconduct: action by FCA) is amended as follows.

(2) In subsection (2)(b)(ii) for “a relevant” substitute “an”.

(3) In subsection (3)(b)(ii) omit “in the case of a relevant authorised person,”.

(4) In subsection (5)(a) for “a relevant” substitute “an”.

(5) In subsection (7)—

(a) in the definition of “senior manager”, for “a relevant” substitute “an”;

(b) omit the definition of “designated senior management function”.

(6) Omit subsection (9).

17 (1) Section 66B (misconduct: action by PRA) is amended as follows.

(2) In subsection (2)(b)(ii) omit “relevant”.

(3) In subsection (3)(b), for sub-paragraph (ii) substitute—

“(ii) an employee of the PRA-authorised person”.

(4) In subsection (5)(a) omit “relevant”.

(5) In subsection (7)—

(a) in the definition of “senior manager”, omit “relevant”;

(b) omit the definition of “designated senior management function”.

(6) In subsection (8) omit the definition of “relevant PRA-authorised person”.

(7) Omit subsection (9).

18 Omit section 71A (meaning of “relevant authorised person”).

19 (1) Section 347 (record of authorised persons etc) is amended as follows.

(2) In subsection (2)—

(a) in paragraph (g)(iv), omit “in a case where the authorised person concerned is a relevant authorised person,”;

(b) in paragraph (h) for “a relevant” substitute “an”.

(3) In subsection (8A)—

(a) omit the definition of “relevant authorised person”;

(b) in the definition of “senior manager”, for “a relevant” substitute “an”;

(c) in the definition of “designated senior management function”, for the words from “means” to the end substitute “has the meaning given by section 59ZB.”

20 In section 415B(5) (consultation in relation to enforcement action), in the definition of “relevant senior management function”, for the words from “has been” to the end substitute “is a designated senior management function as defined by section 59ZB).”

21 In section 429(1)(a) (orders subject to affirmative resolution procedure) omit “71A(4),”.

Consequential amendments of Financial Services (Banking Reform) Act 2013

22 (1) The Financial Services (Banking Reform) Act 2013 is amended as follows.

(2) Omit section 18(4) (which inserts the subsections substituted or omitted by paragraph 2).

(3) Omit section 20(3) (which inserts the subsection omitted by paragraph 4(4)).

(4) Omit section 23(6) (which inserts the subsections omitted by paragraph 6(4)).

(5) Omit section 33 (which inserts the section omitted by paragraph 18).

(6) For section 37(8) (interpretation) substitute—

“(8) Senior management function” means—

(a) a function of a description specified in rules made by the FCA under section 59(3)(a) or (b) of FSMA 2000 which is designated as a senior management function by the FCA under section 59(6A) of that Act;

(b) a function of a description specified in rules made by the PRA under section 59(3)(a) of that Act.”

(7) Omit section 136(2)(a) (which inserts the words omitted by paragraph 21).