[F1PART 6U.K.Transitional and saving provision: limited permission to carry on a regulated activity

CHAPTER 4U.K.Modifications of the Financial Services and Markets Act 2000

Modifications of Part 4A of the Financial Services and Markets Act 2000U.K.

43.(1)  In respect of a person to whom regulation 28 or 34 applies, Part 4A of the 2000 Act (permission to carry on regulated activities) is modified as follows.

(2) Section 55A (application for permission) has effect as if—

(a)in subsection (2), after “subsection (2B)” there were inserted “and to a direction of the PRA or the FCA given with the consent of the other”;

(b)in subsection (3), after “is in force” there were inserted “, other than a person who is treated as having such a permission by virtue of regulation 28 or 34 of the 2018 Regulations,”.

(3) Section 55H (variation by FCA at request of authorised person) has effect as if, after subsection (7), there were inserted—

(8) Where a person makes an application to vary the permission that the person is treated as having by virtue of regulation 28 or 34 of the 2018 Regulations, the FCA may, if it considers it appropriate to do so, treat the application as an application for permission under section 55A.

(4) Section 55I (variation by PRA at request of authorised person) has effect as if, after subsection (8), there were inserted—

(9) Where a person makes an application to vary the permission that the person is treated as having by virtue of regulation 28 or 34 of the 2018 Regulations, the PRA may, if it considers it appropriate to do so, treat the application as an application for permission under section 55A.

(5) Part 4A has effect as if, after section 55J (variation or cancellation on initiative of regulator), there were inserted—

Additional power of cancellation: persons to whom regulation 28 or 34 of the 2018 Regulations applies

55JA.(1) A regulator may, taking into account the matters specified in subsection (2), cancel the permission of a person—

(a)to whom regulation 28 or 34 of the 2018 Regulations applies, and

(b)who is carrying a regulated activity in the United Kingdom other than through an establishment in the United Kingdom,

and direct that regulation 47 of the 2018 Regulations is to apply to the person.

(2) The matters are—

(a)the person’s conduct,

(b)the practicality of supervision by a regulator,

(c)the size of the person’s undertaking, and

(d)the nature or extent of the regulated activity the person carries on.

(6) Section 55Z (cancellation of Part 4A permission: procedure) has effect as if, after subsection (2), there were inserted—

(3) If a regulator gives a decision notice under subsection (2), the notice must state the day on which regulation 28 or 34 of the 2018 Regulations ceases to apply.

(4) For the purposes of subsection (3), the day stated must be a day that falls before the end of—

(a)in so far as a regulated activity a person is permitted to carry on by virtue of regulation 28 or 34 of the 2018 Regulations is carried on for the purpose of performing a contract of insurance, fifteen years,

(b)in so far as a regulated activity a person is permitted to carry on by virtue of regulation 28 or 34 of those Regulations is carried on for any other purpose, five years,

beginning with the earlier of the day on which regulation 28, 34 or 47 of those Regulations, as applicable, first applies to the person.

(7) Section 55Z4 (interpretation of Part 4A) has effect as if, at the appropriate place, there were inserted—

“the 2018 Regulations” means the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018;.]