Financial Services and Markets Act 2023

20 After section 192 (role of FCA and PRA), insert—

“192A Power of Bank to require FCA to refrain from specified action

(1) Where the first, second and third conditions are met, the Bank of England may give a direction under this section to the FCA.

(2) The first condition is that the FCA is proposing to exercise any of its powers in relation to—

(a) a recognised payment system that includes arrangements using digital settlement assets, or

(b) a recognised DSA service provider.

(3) The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—

(a) threaten the stability of the UK financial system,

(b) have serious consequences for business or other interests in the United Kingdom (including for the payment system or provider in relation to which the powers are proposed to be exercised), or

(c) have an adverse effect on the Bank’s ability to act in its capacity as a monetary authority.

(4) The third condition is that the Bank of England is of the opinion that the giving of the direction is necessary in order to avoid an outcome mentioned in subsection (3).

(5) 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.

(6) The direction may be expressed to have effect during a specified period or until revoked.

(7) 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 international obligation of the United Kingdom.”