PART 2Amendments to the Act
CHAPTER 1Part 1A of the Act: the regulators
IntroductionI1052
Part 1A of the Act M1 (the regulators) is amended as follows.
Section 1A (the Financial Conduct Authority)I83
In section 1A (the Financial Conduct Authority), in subsection (6)(d) for “qualifying EU provision” substitute “
qualifying provision
”
.
Section 1H (further interpretative provisions for sections 1B to 1G)I94
1
Section 1H M2 (further interpretative provisions) is amended as follows.
2
In subsection (2)(d), for “credit institutions” substitute “
qualifying credit institutions
”
.
3
In subsection (8)—
a
omit the definition of “credit institution”M3;
b
in the definition of “relevant ancillary service”, for “Section B of Annex I to the markets in financial instruments directive” substitute “
Part 3A of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
”
M4
.
Section 1L (supervision, monitoring and enforcement)I105
In section 1L M5 (supervision, monitoring and enforcement), in subsection (2)(b) for “qualifying EU provision” substitute “
qualifying provision
”
.
Section 2AB (functions of the PRA)I116
Section 3E (memorandum of understanding)I127
In section 3E M8 (memorandum of understanding between regulators) omit subsection (3)(a).
Section 3I (power of PRA to require FCA to refrain from specified action)I138
In section 3I M9 (power of PRA to require FCA to refrain from specified action), in subsection (8) omit “EU obligation or any other”.
Section 3J (power of PRA in relation to with-profits policies)I149
In section 3J M10 (power of PRA in relation to with-profits policies), in subsection (8) omit “EU obligation or any other”.
Section 3M (directions relating to consolidated supervision of groups)I1510
1
Section 3M M11 (directions relating to consolidated supervision of groups) is amended as follows.
2
In subsection (1) (which refers to supervision required in pursuance of any of the relevant directives), for “any of the relevant directives” substitute—
a
any implementing provision contained in subordinate legislation (within the meaning of the Interpretation Act 1978) made otherwise than by any of the following—
i
statutory instrument, and
ii
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)); or
b
any other implementing provision (as amended from time to time),
3
After subsection (2) insert—
2A
“Implementing provision” means an enactment that immediately before F6IP completion day implemented provisions of any of the relevant directives.
4
In subsection (10) omit “EU obligation or any other”.
CHAPTER 2Part 3 of the Act: authorisation and exemption
IntroductionI10611
Part 3 of the Act (authorisation and exemption) is amended as follows.
Section 39 (exemption of appointed representatives)I16C112
1
Section 39 (exemption of appointed representatives) is amended as follows.
2
In subsection (1A) M13, in paragraph (a)—
a
for “credit institution” substitute “
qualifying credit institution
”
;
b
for “a person mentioned in Article 3.1 (optional exemptions) of the markets in financial instruments directive” substitute “
a firm which has a Part 4A permission to carry on regulated activities as an exempt investment firm within the meaning of regulation 8 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701)
”
.
3
In subsection (1AA) M14—
a
in paragraph (a), for “credit institution” substitute “
qualifying credit institution
”
;
b
in paragraph (b) omit “as defined by Article 4.1.43 (definitions) of the markets in financial instruments directive”.
4
In subsection (1B) M15, for the words after “ “the applicable register” is” substitute “
the record maintained by the FCA by virtue of section 347(1)(ha)
”
.
5
In subsection (1BA) M16, in paragraph (b)—
a
after “of a kind” insert “
that
”
;
b
in sub-paragraph (i), before “specified” insert “
is
”
;
c
for sub-paragraph (ii) substitute—
ii
relates to mortgage agreements entered into on or after 21st March 2016,
6
In subsection (4) M17, for “qualifying EU provision” substitute “
qualifying provision
”
.
7
For subsection (7) M18 substitute—
7
A person carries on “investment services business” if, under the full and unconditional responsibility of only one investment firm on whose behalf the person acts, the person—
a
promotes investment services or ancillary services to the firm's clients or prospective clients,
b
receives and transmits instructions or orders from clients in respect of investment services or financial instruments,
c
places financial instruments, or
d
provides advice to clients or prospective clients in respect of investment services or financial instruments.
8
For subsection (8) M19 substitute—
8
In this section—
“ancillary services” means any of the services and activities listed in Part 3A of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);
“financial instruments” means those instruments specified in Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
“investment services” means any of the services and activities listed in Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, relating to any of the instruments listed in Part 1 of that Schedule;
“structured deposit” has the meaning given by Article 2.1.23 of the markets in financial instruments regulation.
Section 39A (certain tied agents operating outside United Kingdom)I1713
1
Section 39A M21 (certain tied agents operating outside United Kingdom) is amended as follows.
2
In subsection (1)(a), for the words after “who is” substitute “
established in the United Kingdom; and
”
.
3
In subsection (4), for the words after “Condition B is that” substitute “
the FCA is satisfied that no such business is, or is likely to be, carried on by the agent in the United Kingdom.
”
.
4
In subsection (6)(c) M22 omit sub-paragraph (ii).
5
In subsection (6)(d) M23 omit “or register”.
6
For subsection (8) M24 substitute—
8
Section 39(7) applies for the purposes of this section.
7
In subsection (9) omit the definition of “competent authority”M25.
8
The amendments made by paragraphs (2), (3) and (7) do not apply during the three-year transitional period in relation to contracts entered into before F7IP completion day.
9
In relation to such contracts, section 39A(6)(d) has effect during the three-year transitional period as if “or on the register of tied agents of an EEA State maintained pursuant to Article 29 of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments” were inserted after “entered on that record”.
CHAPTER 3Part 4A of the Act: permission to carry on regulated activities
IntroductionI10714
Part 4A of the Act M26 (permission to carry on regulated activities) is amended as follows.
Section 55D (application for permission)I1815
1
Section 55D (firms based outside EEA) is amended as follows.
2
In the heading, for “EEA” substitute “
the United Kingdom
”
.
3
For “non-EEA”, wherever occurring, substitute “
non-UK
”
.
4
In subsection (1)(a) for “EEA” substitute “
United Kingdom
”
.
Section 55J (variation and cancellation of Part 4A permission: general)I1916
1
Section 55J M27 (variation or cancellation on initiative of regulator) is amended as follows.
2
In subsection (6A)—
a
in paragraph (c)—
i
for the words from “provide” to “managers directive” substitute “
carry on the management of portfolios of investments in accordance with mandates given by investors on a discretionary, and client-by-client, basis
”
;
ii
for “the capital requirements directive” substitute “
any enactment (as amended from time to time) that immediately before F9IP completion day implemented provisions of the capital requirements directive
”
;
b
in paragraph (e)—
i
for sub-paragraph (i) substitute—
i
an AIFMD requirement;
ii
omit sub-paragraphs (ii) and (iii);
iii
for sub-paragraph (iv), including the “or” at the end, substitute—
iv
an ELTIF requirement; or
iv
for sub-paragraph (v) substitute—
v
an MMF requirement.
3
After subsection (6A), insert—
6AA
For the purposes of subsection (6A)(e)—
a
an AIFMD requirement is a provision of—
i
the Alternative Investment Fund Managers Regulations 2013,
ii
any EU regulation, originally made under the alternative investment fund managers directive, which is retained direct EU legislation,
iii
any provision made by or under this Act that immediately before F10IP completion day implemented provisions of the alternative investment fund managers directive (as that implementing provision is amended from time to time), or
iv
any subordinate legislation (within the meaning of the Interpretation Act 1978) which is made under a power substituted for a power of an EU entity to make a directly applicable regulation under the alternative investment fund managers directive by regulations made under section 8 of the European Union (Withdrawal) Act 2018;
b
an ELTIF requirement is a provision of—
i
Regulation (EU) No. 2015/760 of the European Parliament and of the Council of 29th April 2015 on European Long-term Investment Funds (“the ELTIF Regulation”),
ii
any EU regulation, originally made under the ELTIF Regulation, which is retained direct EU legislation, or
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the ELTIF Regulation on or after F10IP completion day;
c
an MMF requirement is a provision of—
i
the MMF Regulation,
ii
any EU regulation, originally made under the MMF Regulation, which is retained direct EU legislation, or
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the MMF Regulation on or after F10IP completion day.
4
In subsection (6B)—
a
in paragraph (c), omit “, in accordance with Chapter 11 of the mortgages directive,”;
b
in paragraph (d)—
i
for “implements” substitute “
sets
”
;
ii
omit “set out in the mortgages directive”.
5
Omit subsection (7).
6
In subsection (7ZA)—
a
in the words before paragraph (a), after the words “managing a”, insert “
UK
”
;
b
for paragraph (c) substitute—
c
an MMF requirement,
7
In subsection (7ZB), for the words after “requirement” substitute—
imposed by—
a
the market abuse regulation,
b
any EU regulation, originally made under the market abuse regulation, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the market abuse regulation on or after F11IP completion day.
8
After subsection (12), insert—
13
In this section “enactment” has the meaning given by section 3T.
Section 55K (variation and cancellation of Part 4A permission: investment firms)I2017
In section 55K (investment firms: particular conditions that enable cancellation), in subsection (1)—
a
in paragraph (c) omit the words from “pursuant”, in the first place it occurs, to “that Chapter,”;
b
in paragraph (d) for the words from “the operating conditions” to “that Chapter,” substitute “
any retained direct EU legislation, or any provision made by or under this Act, which sets the operating conditions
”
.
Section 55KA (variation and cancellation of Part 4A permission: insurance undertakings etc.)I2118
In section 55KA M28 (insurance undertakings etc.), in subsection (1)(b)(i), for the words from “a finance scheme” to the end substitute “
, in accordance with requirements imposed by or under this Act, a finance scheme for restoring compliance with the appropriate capital requirement;
”
.
Section 55PA (imposition and variation of requirements)I2219
Omit section 55PA M29 (assets requirements imposed on insurance undertakings or reinsurance undertakings).
Section 55Q (exercise of power in support of overseas regulator)I2320
1
Section 55Q M30 (exercise of power in support of overseas regulator) is amended as follows.
2
Omit subsection (4).
3
In subsection (5), in the words before paragraph (a), for the words from “do so” to “EU obligation, it” substitute “
exercise its own-initiative powers in response to a request, the UK regulator
”
.
4
Omit subsection (7).
5
In subsection (8), for “subsection” substitute “
subsections (5) and
”
.
Section 55R (connected persons)I2421
In section 55R (persons connected with an applicant), omit subsections (4) to (9) M31.
Section 55S (additional permissions)I2522
Omit section 55S (duty of FCA or PRA to consider other permissions).
Sections 55Z1 to 55Z2A (notification)I2623
Omit sections 55Z1 to 55Z2A M32 (notification of ESMA, EBA and European bodies).
CHAPTER 4Part 5 of the Act: performance of regulated activities
IntroductionI10824
Part 5 of the Act (performance of regulated activities) is amended as follows.
Section 59 (approval for particular arrangements)I2725
In section 59 (approval for particular arrangements) omit subsection (8) M33.
Section 63E (certification of employees by relevant authorised persons)I2826
In section 63E M34 (certification of employees by relevant authorised persons) omit subsection (7).
Section 66A (misconduct: action by the FCA)I2927
In section 66A (misconduct: action by the FCA) in subsection (4)(b) M35 for “qualifying EU provision” substitute “
qualifying provision
”
.
Section 66B (misconduct: action by the PRA)I3028
In section 66B (misconduct: action by the PRA) in subsection (4)(b) M36 for “qualifying EU provision” substitute “
qualifying provision
”
.
Section 71D (sections 71B and 71C: conditions)I3129
In section 71D (sections 71B and 71C: conditions) in subsection (2) for “any measure of a kind described in Article 27(1) of the recovery and resolution directive” substitute “
any measure defined as a “relevant measure” by article 107 of the Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348)
”
.
Section 71I (sections 71B to 71H: interpretation)I3230
1
Section 71I M37 (sections 71B to 71H: interpretation) is amended as follows.
2
In subsection (2)(b) for “an EEA parent” substitute “
a UK parent
”
.
3
In subsection (3)—
a
for “an EEA parent” substitute “
a UK parent
”
;
b
for “any EEA state” substitute “
the United Kingdom
”
.
4
In subsection (4) for “Article 2.1(2) and 2.1(3) of the recovery and resolution directive” substitute “
article 2(1) of the Bank Recovery and Resolution (No. 2) Order 2014
”
.
5
In subsection (5)—
a
in the definition of “consolidating supervisor”, for “an EEA parent” substitute “
a UK parent
”
;
b
omit the definition of “the recovery and resolution directive”.
CHAPTER 5Part 7 of the Act: control of business transfers
IntroductionI10931
Part 7 of the Act (control of business transfers) is amended as follows.
Section 105 (insurance business transfer schemes)I3332
1
Section 105 (insurance business transfer schemes) is amended as follows.
2
In subsection (1)—
a
in paragraph (a) for “one of the conditions” substitute “
the condition
”
;
b
in paragraph (b) for “an EEA State” substitute “
the United Kingdom F23or Gibraltar
”
.
3
For subsection (2) M38 substitute—
2
The condition is that the whole or part of the business carried on in the United Kingdom by an authorised person who has permission to effect or carry out contracts of insurance (“the transferor concerned”) is to be transferred to another body (“the transferee”).
4
In subsection (3) M39—
a
omit Case 2;
b
in Case 3—
i
in paragraph (b) for “(none of which is an EEA State)” substitute “
outside the United Kingdom
”
;
ii
in paragraph (b) for “an EEA State”, in the second place it occurs, substitute “
the United Kingdom
”
;
iii
in paragraph (c) for “other than an EEA State” substitute “
outside the United Kingdom
”
.
5
In subsection (4) M40 omit “2,”.
Further amendments to Part 7 of the ActI3433
1
In section 111 (sanction of the court for business transfer schemes) in subsection (2)(a) M41 for “certificates have” substitute “
certificate has
”
.
2
In section 112 (effect of order sanctioning business transfer scheme) omit subsection (9) M42.
3
Omit sections 114 (rights of certain policyholders), 114A M43 (notice of transfer of reinsurance contracts) and 116 (effect of insurance business transfers authorised in other EEA States).
CHAPTER 6Part 9A of the Act: rules and guidance
IntroductionI11034
Part 9A of the Act (rules and guidance) is amended as follows.
Section 137J (rules about recovery plans: duty to consult)I3535
a
for the definition of “institution” substitute—
“institution” means—
a
a credit institution, other than an entity mentioned in Article 2.5 of the capital requirements directive; or
b
an investment firm as defined in Article 4.1(2) of the capital requirements regulation that is subject to the initial capital requirement specified in rules made by a regulator for the purpose of implementing Article 28(2) of the capital requirements directive;
b
in the definition of “institution authorised in the UK”, for “an institution which is an authorised person and” substitute “
an authorised person who is
”
.
Section 137N (recovery plans and resolution packs: restriction on duty of confidence)I3636
In section 137N (recovery plans and resolution packs: interpretation), in subsection (5) M46, in the definition of “qualifying parent undertaking” omit paragraph (b) and the “or” preceding it.
Section 137Q (price stabilising rules)I3737
1
Section 137Q (price stabilising rules) is amended as follows.
2
In subsection (3A)(b) M47 for “EEA” substitute “
United Kingdom
”
.
3
For subsection (5) M48 substitute—
5
In this section references to Article 5 of the market abuse regulation include—
a
any technical standards originally adopted or made under that Article which are retained direct EU legislation, and
b
any technical standards made under that Article by the FCA.
Section 137R (financial promotion rules)I3838
1
Section 137R (financial promotion rules) is amended as follows.
2
3
In subsection (5)(c) M50, for “requirements mentioned in paragraph (b)” substitute “
listed requirements
”
.
4
After subsection (5) insert—
5A
In subsection (5) “the listed requirements” means—
a
requirements under the law of any part of the United Kingdom that appear to the FCA to correspond to requirements of—
i
Articles 24 (general principles and information to clients) and 25 (assessment of suitability and appropriateness and reporting to clients) of the markets in financial instruments directive,
ii
Commission Delegated Directive (EU) 2017/593 of 7 April 2016, so far as adopted under those Articles,
iii
Article 77 of the UCITS directive,
iv
Articles 10 and 11 of the mortgages directive, F2...
v
Article 17 of the insurance distribution directive, F3or
F4vi
Article 44a of the recovery and resolution directive (as defined in paragraph (c)), and
b
requirements of any retained direct EU legislation originally made under Article 24(13) or 25(8) of the markets in financial instruments directive.
F5c
In paragraph (a)(vi), “recovery and resolution directive” means Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms, as it had effect immediately before IP completion day.
Section 138K (consultation: mutual societies)I3939
Section 139A (power of the FCA to give guidance)I4040
In section 139A (power of the FCA to give guidance), in subsection (4) M54 for “or a directly applicable regulation made under the market abuse regulation” substitute “
, any retained EU direct legislation originally made under the market abuse regulation or any subordinate legislation (within the meaning of the Interpretation Act 1978) made on or after F12IP completion day under the market abuse regulation
”
.
Section 141A (power to make consequential amendments of references to rules etc)I4141
In section 141A (power to make consequential amendments of references to rules etc), after subsection (4) insert—
5
A regulator's power under Part 2 of the Powers Regulations to amend its rules is treated for the purposes of this section as a power under this Part; and for this purpose “the Powers Regulations” means the Financial Regulators' Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1115).
CHAPTER 7Part 11 of the Act: information gathering and investigations
IntroductionI11142
Part 11 of the Act (information gathering and investigations) is amended as follows.
Section 165A (PRA's power to require information: financial stability)I4243
1
Section 165A M55 (PRA's power to require information: financial stability) is amended as follows.
2
In subsection (8), in the definition of “management”, for “Annex II to the UCITS Directive” substitute “
Schedule 6 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M56
”
.
3
In subsection (9)(b) M57, for the words from “meaning given” to the end substitute “
same meaning as in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (see article 3(1) of that Order).
”
.
Section 167 (appointment of persons to carry out general investigations)I4344
Omit section 167(3A) M58 (investigations of persons in other EEA States).
Section 168 (appointment of persons to carry out investigations in particular cases)I4445
In section 168 (appointment of investigators: particular cases), in subsection (4)—
a
b
in paragraph (k) M60 for “qualifying EU provision” substitute “
qualifying provision
”
.
Section 169 (investigations etc. in support of overseas regulator)I4546
Section 169A (support of overseas regulator with respect to financial stability)I4647
In section 169A M63 (support of overseas regulator with respect to financial stability), in subsection (4)(b) for “169(3), (4)(a) and (d), (5) and (6)” substitute “
169(4)(a) and (d) and (5)
”
.
CHAPTER 8Part 12 of the Act: control over authorised persons
IntroductionI11248
Part 12 of the Act (control over authorised persons) is amended as follows.
Section 184 (disregarded holdings)I149
M64In section 184 (disregarded holdings)—
I5a
in subsection (4)—
i
in paragraph (a) M65, for the words from “article 4.1.7” to “directive” substitute “
article 2.1.6 of the markets in financial instruments regulation
”
;
ii
for paragraph (b), substitute—
b
has a Part 4A permission to carry on one or more investment services and activities;
I5b
in subsection (5), for “credit institution” substitute “
qualifying credit institution
”
;
I5c
in subsection (6)—
i
in the opening words and in paragraph (b)), for “credit institution” substitute “
qualifying credit institution
”
;
ii
in paragraph (a)(ii), omit the words from “in accordance with” to the end;
I5d
in subsection (7) M66, for “Article 2.1(b) of the UCITS Directive” substitute “
section 237(2)
”
;
I1e
in subsection (9A) M67, for the words from “Commission” to “financial instruments” substitute “
the market abuse regulation and the Commission Delegated Regulation (EU) No. 1052/2016 of 8 March 2016 supplementing Regulation (EU) No. 596/2014 of the European Parliament and the Council with regard to the regulatory technical standards for conditions applicable to buy-back programmes and stabilisation measures
”
.
Section 186 (assessment criteria)I4750
Section 188 (assessment: consultation with EC competent authorities)I4851
Omit section 188 (assessment: consultation with EC competent authorities) M70.
Section 189 (assessment: procedure)I4952
In section 189 M71 (assessment: procedure), in subsections (1A), (1ZB)(a) and (1ZB)(b), for “credit institution” substitute “
qualifying credit institution
”
.
Section 190 (requests for further information)I5053
In section 190 (requests for further information) M72, in subsection (4)—
b
for paragraph (b) M74, substitute—
b
is not subject to supervision under the laws of the United Kingdom (or any part of the United Kingdom) F25or of Gibraltar relied on immediately before F14IP completion day to implement—
i
the UCITS directive;
ii
the Solvency 2 Directive;
iii
the markets in financial instruments directive; or
iv
the capital requirements directive,
including rules made by the appropriate regulator under this Act, in force on F14IP completion day , and, as amended from to time, in all other cases.
Section 190A (assessment and resolution)I5154
In section 190A M75 (assessment and resolution), in subsections (1)(a), (1)(c) and (7), for “credit institution” substitute “
qualifying credit institution
”
.
Section 191A (objection by the appropriate regulator)I5255
In section 191A (objection by the appropriate regulator), omit subsection (5) M76.
Section 191G (interpretation of Part 12)I5356
In section 191G M77 (interpretation), in subsection (1)—
a
omit the definition of “credit institution”M78;
b
in the definition of “UK authorised person”, in paragraph (b), after “Schedule 5” insert “
, or a person treated as having a Part 4A permission to carry on a regulated activity by virtue of regulation 71 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019
”
M79
.
F26c
in the appropriate place, insert—
“qualifying credit institution” includes a credit institution which is authorised under the law of Gibraltar relied on immediately before IP completion day to implement the capital requirements directive.
CHAPTER 9Part 12A of the Act: powers exercisable in relation to parent undertakings
IntroductionI11357
Part 12A of the Act (powers exercisable in relation to parent undertakings) is amended as follows.
Section 192C (power to direct qualifying parent undertaking)I5458
1
Section 192C M80 (power to direct qualifying parent undertaking) is amended as follows.
2
In subsection (3)(a), for “in pursuance of any of the directives mentioned in section 3M(3)” substitute—
in pursuance of—
i
any implementing provision contained in subordinate legislation (within the meaning of the Interpretation Act 1978) made otherwise than by any of the following—
aa
statutory instrument, and
bb
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)); or
ii
any other implementing provision (as amended from time to time)
3
For subsection (4) substitute—
4
In subsection (3)(a)—
“consolidated supervision” includes supplemental supervision;
“implementing provision” has the same meaning as in section 3M.
Section 192JB (rules requiring parent undertakings to facilitate resolution)I5559
In section 192JB M81 (rules requiring parent undertakings to facilitate resolution), in subsection (4), for paragraph (b) substitute—
b
“group financial support agreement” means an agreement for the provision of financial support, by a member of the group of the parent undertaking, to an institution in the group which, at any time after the agreement is concluded, comes to need financial support;
Section 192K (power to impose penalty or issue censure)I5660
CHAPTER 10Part 14 of the Act: disciplinary measures
Section 204A (meaning of “relevant requirement” etc.)I5761
CHAPTER 11Part 20 of the Act: provision of financial services by members of the professions
IntroductionI11462
Part 20 of the Act M86 (provision of financial services by members of the professions) is amended as follows.
Section 326 (designation of professional bodies)I5863
In section 326 (designation of professional bodies), omit subsection (5)(d).
Section 327 (exemption from the general prohibition)I5964
In section 327 (exemption from the general prohibition)—
a
in subsection (1)(aa), for “Section A of Annex 1 of the markets in financial instruments directive”, substitute “
Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
”
;
b
in subsection (7A)(a), omit “for the purposes of the markets in financial instruments directive”;
c
in subsection (7B), omit “for the purposes of the markets in financial instruments directive”;
d
in subsection (7C), for the words from “Article 4(a)” to the end, substitute “
paragraph 6(a) to (c) of Schedule 3 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
”
.
Section 328 (directions in relation to the general prohibition)I6065
In section 328 (directions in relation to the general prohibition), in subsection (6)—
a
omit “either”;
b
at the end of paragraph (a), omit “or”;
c
omit paragraph (b).
CHAPTER 12Part 22 of the Act: auditors and actuaries
IntroductionI11566
Part 22 of the Act (auditors and actuaries) is amended as follows.
Section 342 (information given by auditor or actuary to a regulator)I6167
In section 342 (information given by auditor or actuary to a regulator), in subsection (8) M87, for “ “credit institution” and “investment firm” have” substitute “ “investment firm” has”.
Section 343 (information given by auditor or actuary to a regulator: persons with close links)I6268
In section 343 M88 (information given by auditor or actuary to a regulator: persons with close links)—
a
omit subsection (9).
b
in subsection (10) M89, for “ “credit institution” and “investment firm” have” substitute “ “investment firm” has”.
CHAPTER 13Part 25 of the Act: injunctions and restitution
IntroductionI11669
Part 25 of the Act (injunctions and restitution) is amended as follows.
Section 380 (injunctions)I6370
1
Section 380 M90 (injunctions) is amended as follows.
2
In subsection (6)(a)(i) M91, for “qualifying EU provision” substitute “
qualifying provision
”
.
3
In subsection (9) M92 for “qualifying EU provision” in both places substitute “
qualifying provision
”
.
Section 382 (restitution orders)I6471
1
Section 382 M93 (restitution orders) is amended as follows.
2
In subsection (9)(a)(i) M94, for “qualifying EU provision” substitute “
qualifying provision
”
.
3
In subsection (12) M95, for “qualifying EU provision” in both places substitute “
qualifying provision
”
.
Section 384 (power of FCA or PRA to require restitution)I6572
1
Section 384 M96 (power of FCA or PRA to require restitution) is amended as follows.
2
In subsection (7)(a) M97, for “qualifying EU provision” substitute “
qualifying provision
”
.
3
In subsection (10) M98 for “qualifying EU provision” in both places substitute “
qualifying provision
”
.
CHAPTER 14Part 26 of the Act: notices
IntroductionI11773
Part 26 of the Act (notices) is amended as follows.
Section 391 (publication)I6674
1
Section 391 M99 (publication) is amended as follows.
3
In subsection (8A) M102, for “requirement imposed by the CSD regulation or any directly applicable regulation made under the CSD regulation” substitute “
CSD requirement
”
.
4
After subsection (8A) insert—
8AA
A “CSD requirement” is a requirement imposed by—
a
the CSD regulation,
b
any EU regulation, originally made under the CSD regulation, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the CSD regulation on or after F15IP completion day.
5
In subsection (8B) M103, for “requirement imposed by the market abuse regulation or a directly applicable EU regulation made under the market abuse regulation” substitute “
market abuse requirement
”
.
6
After subsection (8B) insert—
8BA
A “market abuse requirement” is a requirement imposed by—
a
the market abuse regulation,
b
any EU regulation, originally made under the market abuse regulation, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the market abuse regulation on or after F16IP completion day.
7
In subsection (8D) M104—
a
omit the “or” at the end of paragraph (a);
b
in paragraph (b)—
i
for “directly applicable regulation” substitute “
EU regulation, originally
”
, and
ii
at the end insert “
which is retained direct EU legislation,
”
;
c
after paragraph (b) insert—
or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the PRIIPs regulation on or after F17IP completion day,
8
In subsection (8E) M105, for the words from “imposed by” to “this section” substitute—
imposed by—
a
the EU Benchmarks Regulation 2016,
b
any EU regulation, originally made under the EU Benchmarks Regulation 2016, which is retained direct EU legislation, or
c
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the EU Benchmarks Regulation on or after F18IP completion day,
this section
9
Omit subsection (8F) M106.
Section 391A (publication: special requirements relating to capital requirements directive)I6775
1
Section 391A M107 (publication: special requirements relating to capital requirements directive) is amended as follows.
2
In the heading, for “the capital requirements directive” substitute “
capital requirements
”
.
3
In subsection (1) for “to which Article 68(1) of the capital requirements directive applies.” substitute —
for breach of—
a
a provision made in or under this Act for the purpose of implementing the capital requirements directive, or
b
a provision of the capital requirements regulation.
4
In subsection (6) M108—
a
at the end of paragraph (a) insert “
and
”
; and
b
omit paragraph (c), and the “and” preceding it.
Section 391B (publication: special provisions relating to the transparency obligations directive)I6876
1
Section 391B M109 (publication: special provisions relating to the transparency obligations directive) is amended as follows.
2
In the heading, for “the transparency obligations directive” substitute “
transparency obligations
”
.
3
In subsection (1) for “to which Article 29(1) of the transparency obligations directive applies” substitute “
for breach of a provision made in or under this Act for the purpose of implementing the transparency obligations directive
”
.
Section 391C (publication: special provisions relating to the UCITS directive)I6977
1
Section 391C M110 (publication: special provisions relating to the UCITS directive) is amended as follows.
2
In the heading, for “the UCITS directive” substitute “
UCITS
”
.
3
In subsection (1) for “to which Article 99 of the UCITS directive applies” substitute “
for breach of a provision made in or under this Act for the purpose of implementing the UCITS directive
”
.
4
In subsection (7) M111, omit paragraph (b), and the “and” preceding it.
Section 391D (publication: special provisions relating to the markets in financial instruments directive)I7078
1
Section 391D M112 (publication: special provisions relating to the markets in financial instruments directive) is amended as follows.
2
In the heading, for “the markets in financial instruments directive” substitute “
markets in financial instruments
”
.
3
In subsection (1), for “to which Article 71 of the markets in financial instruments directive applies.” substitute—
for breach of—
a
a provision made in or under this Act for the purpose of implementing the markets in financial instruments directive, or
b
a provision of the markets in financial instruments regulation.
4
In subsection (9) M113, omit paragraph (b), and the “and” preceding it.
Section 391E (publication: special provisions relating to the insurance distribution directive)I7179
1
Section 391E M114 (publication: special provisions relating to the insurance distribution directive) is amended as follows.
2
In the heading, for “the insurance distribution directive” substitute “
insurance distribution
”
.
3
In subsection (1), for “to which Article 32 of the insurance distribution directive applies” substitute “
for breach of a provision made in or under this Act for the purpose of implementing the insurance distribution directive
”
.
4
Omit subsection (5).
CHAPTER 15Part 27 of the Act: offences
Section 398 (misleading FCA or PRA: residual cases)I7280
1
Section 398 M115 (misleading FCA or PRA: residual cases) is amended as follows.
2
In subsection (1A) M116—
a
for paragraph (ea) substitute—
ea
any EU regulation, originally made under the markets in financial instruments directive, which is retained direct EU legislation;
b
for paragraph (eb) substitute—
eb
any of the following—
i
the markets in financial instruments regulation,
ii
any EU regulation, originally made under the markets in financial instruments regulation, which is retained direct EU legislation, and
iii
any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the markets in financial instruments regulation on or after F19IP completion day;
CHAPTER 16Part 28 of the Act: miscellaneous
IntroductionI11881
Part 28 of the Act (miscellaneous) is amended as follows.
Section 404E (meaning of “consumers”)I7382
In section 404E M117 (meaning of “consumers”), in subsection (6) omit the definition of “credit institution”.
Section 410 (international obligations)I7483
CHAPTER 17Part 29 of the Act: interpretation of the Act
IntroductionI11984
Part 29 of the Act (interpretation of the Act) is amended as follows.
Section 417 (definitions)I285
I61
In section 417 (definitions) subsection (1) is amended as set out in paragraphs (2) to (13).
I62
After “In this Act” insert “
and in any order or regulations made under this Act
”
.
I23
In the definition of “capital requirements regulation”M120, at the end insert “
, as it has effect at the updating point (see subsection (1A))
”
.
I64
In the definition of “central securities depository”M121, for “has the meaning given by point (1) of” substitute “
means a CSD or third-country CSD as defined in
”
.
I65
At the appropriate place insert—
“credit institution” means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;
I26
In the definition of “the CSD regulation”M122, at the end insert “
, as it has effect at the updating point (see subsection (1A))
”
.
I67
For the definition of “insurance undertaking”M123 substitute—
“insurance undertaking” means an undertaking which—
a
has its head office in the United Kingdom,
b
has a Part 4A permission to carry on one or more regulated activities, and
c
would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;
I28
In the definition of “market abuse regulation”M124, at the end insert “
, as it has effect at the updating point (see subsection (1A))
”
.
I69
At the appropriate place insert—
“qualifying credit institution” means a credit institution which—
a
is a person who—
i
has Part 4A permission to carry on the regulated activity of accepting deposits, or
ii
satisfies the conditions for being given permission under Part 4A to carry on that activity, or
iii
is a body corporate incorporated in the United Kingdom and would satisfy those conditions—
aa
were its head office in the United Kingdom, or
bb
if it has a registered office, were its registered office, or its registered office and its head office, in the United Kingdom,
b
is not a friendly society, and
c
is not a society registered as a credit union under—
i
the Co-operative and Community Benefit Societies Act 2014,
ii
the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)), or
iii
the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (c. 24 (N.I.));
I610
For the definition of “reinsurance undertaking”M125 substitute—
“reinsurance undertaking” means an undertaking which—
a
has its head office in the United Kingdom,
b
has a Part 4A permission to carry on one or more regulated activities,
c
effects or carries out contracts of insurance that are limited to reinsurance contracts, and
d
would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;
I2I611
In the definition of “short selling regulation”M126, at the end insert “
, as it has effect at the updating point (see subsection (1A))
”
.
I612
In the definition of “third country insurance undertaking”M127, for the words after “received” substitute “
from the PRA or the FCA authorisation under any enactment (including an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978), or any rule made under this Act by the PRA or the FCA, that implemented Article 162 of the Solvency 2 Directive
”
.
I613
I214
After subsection (1) of section 417 insert—
1A
A reference in subsection (1) to an instrument as it has effect at the updating point is a reference to the instrument as it has effect at the beginning of the day on which the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 are made (but see regulation 2 of the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) Regulations 2019 (S.I. 2019/628), which may further update the reference).
Section 418 (carrying on regulated activities in the United Kingdom)I7586
1
Section 418 M133 (carrying on regulated activities in the United Kingdom) is amended as follows.
2
In subsection (1) M134, for the words before “described” substitute “
In the cases
”
.
3
Omit subsections (2) and (3) M135.
4
In subsection (5AA) M136—
a
in paragraph (b)(i) and (ii), for “an EEA State” substitute “
the United Kingdom
”
;
b
in paragraph (d), for “the EEA” substitute “
the United Kingdom
”
.
5
In subsection (6), for the words before “it is irrelevant” substitute “
For the purposes of the preceding subsections
”
.
6
Omit subsection (7) M137.
7
For subsection (8) M138 substitute—
8
For the purposes of this section, an AIF is “marketed” when—
a
the person managing the AIF (“the AIFM”) makes a direct or indirect offering or placement of units or shares of the AIF to or with an investor domiciled or with a registered office in the United Kingdom, or
b
another person makes such an offering or placement at the initiative of, or on behalf of, the AIFM.
Section 420 (parent and subsidiary undertaking)I387
In section 420 (parent and subsidiary undertaking), in subsection (2)(b)—
I76a
omit “other than the United Kingdom”;
I3b
for “Seventh Company Law Directive” substitute “
Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC
”
M139
.
Section 422A (disregarded holdings)I488
M140In section 422A (disregarded holdings)—
I7a
in subsection (4)—
i
in paragraph (a) M141, for the words from “article 4.1.7” to “directive” substitute “
article 2.1.6 of the markets in financial instruments regulation
”
;
ii
for paragraph (b), substitute—
b
has a Part 4A permission to carry on one or more investment services and activities;
I7b
in subsection (5), for “credit institution” substitute “
qualifying credit institution
”
;
I7c
in subsection (6)—
i
in the opening words and in paragraph (b), for “credit institution” substitute “
qualifying credit institution
”
;
ii
in paragraph (a)(ii), omit the words from “in accordance with” to the end;
I7d
in subsection (7) M142, for “Article 2.1(b) of the UCITS Directive” substitute “
section 237(2)
”
;
I4e
in subsection (9A) M143, for the words from “Commission” to “financial instruments” substitute “
the market abuse regulation and Commission Delegated Regulation (EU) No. 1052/2016 of 8 March 2016 supplementing Regulation (EU) No. 596/2014 of the European Parliament and the Council with regard to the regulatory technical standards for conditions applicable to buy-back programmes and stabilisation measures
”
;
Mortgage agreements etcI7789
After section 423 insert—
423AMortgage agreements etc
1
In this Act—
“mortgage agreement” means an agreement to which subsection (2) applies, but to which subsection (3) does not apply, under which a mortgage creditor grants or promises to grant, to a consumer, a credit in the form of a deferred payment, loan or other similar financial accommodation;
“mortgage creditor” means a person who grants or promises to grant—
- a
in the course of the person's trade, business or profession, and
- b
under an agreement to which subsection (2) applies but to which subsection (3) does not apply,
credit in the form of a deferred payment, loan or other similar financial accommodation;
“mortgage intermediary” means a person who, in the course of the person's trade, business or profession, and acting neither as a mortgage creditor or notary nor in an introductory capacity, does any of the following for any agreed form of financial consideration—
- a
presenting or offering mortgage agreements to consumers;
- b
assisting consumers by undertaking preparatory work or other pre-contractual administration in respect of mortgage agreements (otherwise than as referred to in paragraph (a));
- c
concluding mortgage agreements with consumers on behalf of mortgage creditors;
“tied mortgage intermediary” means a mortgage intermediary who acts on behalf of and under the full and unconditional responsibility of—
- a
only one mortgage creditor,
- b
only one group of mortgage creditors, or
- c
a number of mortgage creditors or groups of mortgage creditors which does not represent the majority of the market.
2
This subsection applies to the following agreements—
a
an agreement secured by a mortgage on, or (in Scotland) a heritable security over, residential immovable property, or by any other charge or right over or related to such property;
b
an agreement the purpose of which is to acquire or retain property rights in land or in an existing or projected building.
3
This subsection applies to the following agreements—
a
an agreement under which the creditor—
i
contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the future sale of a residential immovable property or a right relating to residential immovable property, and
ii
will not seek repayment of the credit until the occurrence of one or more specified life events of the consumer, unless the consumer breaches contractual obligations so as to allow the creditor to terminate the agreement;
b
an agreement under which credit is granted by an employer to its employees as a secondary activity where the agreement is offered free of interest or at an annual rate lower than that prevailing on the market and not offered to the public generally;
c
an agreement under which credit is granted free of interest and without any other charges except those that recover costs directly related to the securing of the credit;
d
an agreement in the form of an overdraft facility under which the credit has to be repaid within one month;
e
an agreement which is the outcome of a settlement reached in or before a court or other statutory authority;
f
an agreement which—
i
relates to the deferred payment, free of charge, of an existing debt, and
ii
is not secured by a mortgage, by another comparable security commonly used in the United Kingdom on residential immovable property or by a right related to residential immovable property.
4
In this section—
“acting in an introductory capacity” means merely introducing (directly or indirectly) a consumer to a mortgage creditor or mortgage intermediary;
“annual rate” means the total cost to the borrower expressed as an annual percentage of the total amount of credit;
“consumer” means an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual;
“group of mortgage creditors” means a group of mortgage creditors that are to be consolidated for the purposes of drawing up consolidated accounts in accordance with—
- a
the requirements of Part 15 of the Companies Act 2006, if the parent undertaking (within the meaning of that Act) is a company, or
- b
if it is not, the legal requirements that apply to the drawing up of consolidated accounts for the parent undertaking;
“specified” means specified in rules made by the FCA.
5
A reference in this section to any immovable property, land or building—
a
in relation to an agreement entered into before F20IP completion day, is a reference to any immovable property, land or building in the United Kingdom or within the territory of an EEA State;
b
in relation to an agreement entered into on or after F20IP completion day, is a reference to any immovable property, land or building in the United Kingdom.
Section 424A (meaning of “investment firm”)I7890
1
Section 424A M144 (meaning of “investment firm”) is amended as follows.
2
In subsection (1), for “Article 4.1.1 of the markets in financial instruments directive” substitute “
paragraph 2.1A of the markets in financial instruments regulation
”
.
3
In subsection (2), for “subsections (3) to (5)” substitute “
subsection (5)
”
.
4
Omit subsections (3) M145 and (4).
5
In subsection (5) M146, for paragraphs (a) and (b) substitute—
a
a person excluded from the definition of “investment firm” in Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) by paragraph (a) or (b) of that definition; or
b
a firm which has a Part 4A permission to carry on regulated activities as an exempt investment firm within the meaning of regulation 8 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701).
Section 425A (consumers: regulated activities etc carried on by authorised persons)I7991
1
Section 425A M147 (consumers: regulated activities etc carried on by authorised persons) is amended as follows.
2
In subsection (3)(b), for “credit institutions” substitute “
qualifying credit institutions
”
.
3
In subsection (7) M148—
a
omit the definition of “credit institution”M149;
b
in the definition of “relevant ancillary service”, for “Section B of Annex I to the markets in financial instruments directive” substitute “
Part 3A of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)
”
.
Section 425C (“qualifying EU provision”)I8092
For section 425C M150 (“qualifying EU provision”) substitute—
425C“Qualifying provision”
In this Act “qualifying provision” means a provision of any of the following—
a
retained direct EU legislation;
b
technical standards made in accordance with Chapter 2A of Part 9A;
c
subordinate legislation (within the meaning of the Interpretation Act 1978) made by virtue of regulations made under section 8 of the European Union (Withdrawal) Act 2018.
CHAPTER 18Schedule 1ZA to the Act: the Financial Conduct Authority
Schedule 1ZA (the Financial Conduct Authority)I8193
CHAPTER 19Schedule 1ZB to the Act: the Prudential Regulation Authority
Schedule 1ZB (the Prudential Regulation Authority)I8294
CHAPTER 20Schedule 2 to the Act: regulated activities
Schedule 2 (regulated activities)I8395
In Schedule 2 (regulated activities), in paragraph 13(2)(c) omit “or another member State”.
CHAPTER 21Schedule 6 to the Act: threshold conditions
IntroductionI12096
Schedule 6 M155 to the Act (threshold conditions) is amended as follows.
InterpretationI8497
1
Paragraph 1A(1) (interpretation of Schedule 6) is amended as follows.
2
After the definition of “functions”, insert—
“implementing provisions” has the same meaning as in section 3M;
3
After the definition of “relevant directives”, insert—
“relevant implementing provisions” means—
a
any implementing provision contained in subordinate legislation (within the meaning of the Interpretation Act 1978) made otherwise than by any of the following–
i
statutory instrument, and
ii
statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)); or
b
any other implementing provision (as amended from time to time));
Paragraph 2C (effective supervision)I8598
In paragraph 2C(1) (effective supervision)—
a
in paragraph (e), for “of the relevant directives” substitute “
relevant implementing provisions
”
;
b
in paragraph (f)(iii) for “territory which is not an EEA State” substitute “
country or territory outside the United Kingdom
”
.
Paragraph 3B (effective supervision)I8699
In paragraph 3B(1) (effective supervision)—
a
in paragraph (e), for “of the relevant directives” substitute “
relevant implementing provisions
”
;
b
in paragraph (f)(iii) for “territory which is not an EEA State” substitute “
country or territory outside the United Kingdom
”
.
Paragraph 4A (introduction to Part 1D)I87100
In paragraph F284A—
a
for F29sub-paragraph (6)(a) substitute—
a
the persons are undertakings, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assume risks from insurance or reinsurance undertakings and which fully fund their exposure to such risks through the proceeds of a debt issuance or any other financing mechanism where the repayment rights of the providers of such debt or financing mechanism are subordinated to the reinsurance obligations of such an undertaking;
b
for F30sub-paragraph (6)(b) substitute—
b
the persons are not insurance undertakings;
F31c
after sub-paragraph (6), insert—
7
In paragraph (6)(a), references to undertakings which assume risks from insurance or reinsurance undertakings include references to undertakings which assume risks from third country insurance or reinsurance undertakings and Gibraltarian insurance or reinsurance undertakings; and for these purposes “third country insurance undertakings”, “third country reinsurance undertakings”, “Gibraltarian insurance undertakings” and “Gibraltarian reinsurance undertakings” have the same meaning as in the Solvency 2 Regulations 2015 (S.I. 2015/575), as amended under the European Union (Withdrawal) Act 2018 (see, in particular, regulation 2(1)).
Paragraph 4F (effective supervision)I88101
In paragraph 4F(2) (effective supervision)—
a
in paragraph (e), for “of the relevant directives” substitute “
relevant implementing provisions
”
;
b
in paragraph (f)(iii) for “territory which is not an EEA State” substitute “
country or territory outside the United Kingdom
”
.
Paragraph 5F (effective supervision)I89102
In paragraph 5F(2) (effective supervision)—
a
in paragraph (e), for “of the relevant directives” substitute “
relevant implementing provisions
”
;
b
in paragraph (f)(iii) for “territory which is not an EEA State” substitute “
country or territory outside the United Kingdom
”
.
Paragraph 8 (additional conditions)I90103
In paragraph 8(2)(a) (additional conditions), for “EEA” substitute “
United Kingdom
”
.
CHAPTER 22Schedule 12 to the Act: transfer schemes: certificates
IntroductionI121104
Schedule 12 to the Act (transfer schemes: certificates) is amended as follows.
Paragraph 1 (insurance business transfer schemes)I91105
For paragraph 1 M156 (insurance business transfer schemes) substitute—
1
For the purposes of section 111(2) the appropriate certificate, in relation to an insurance business transfer scheme, is a certificate under paragraph 2.
Paragraph 2 (certificates as to margin of solvency)I92106
1
Paragraph 2 (certificates as to margin of solvency) is amended as follows.
F322
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
In sub-paragraph (6)—
a
omit paragraphs (a) and (aa) M157;
b
in paragraph (c) M158 omit “(a), (aa) or”;
c
in paragraph (c)(i) and (ii) M159 omit, in each place it occurs, “or with permission under Schedule 4”.
4
Omit sub-paragraphs (7A) and (9) M160.
Paragraphs 3 to 6 (further provisions on certificates)I93107
Omit paragraphs 3 to 6 M161 (further provisions on certificates).
Paragraph 7 (banking business transfer schemes)I94108
For paragraph 7 M162 (banking business transfer schemes) substitute—
7
For the purposes of section 111(2) the appropriate certificate, in relation to a banking business transfer scheme, is a certificate under paragraph 8.
Paragraph 8 (certificates as to financial resources)I95109
In paragraph 8 (certificates as to financial resources) in sub-paragraph (2) M163—
a
in sub-paragraphs (a) and (aa) omit “or with permission under Schedule 4”;
b
omit paragraph (b);
c
in paragraph (c) for “(a), (aa) or (b)” substitute “
(a) or (aa)
”
.
Paragraph 9 (certificates as to consent of home state regulator)I96110
Omit paragraph 9 M164 (certificates as to consent of home state regulator).
Paragraph 9B (ring-fencing transfer schemes)I97111
For paragraph 9B M165 (ring-fencing transfer schemes) substitute—
9B
For the purposes of section 111(2) the appropriate certificates, in relation to a ring-fencing transfer scheme, are—
a
a certificate given by the PRA certifying its approval of the application, and
b
a certificate under paragraph 9C.
Paragraph 9C (certificate as to financial resources)I98112
In paragraph 9C (certificate as to financial resources) in sub-paragraph (2) M166—
a
in paragraph (a) omit “or with permission under Schedule 4”;
b
omit paragraph (b);
c
in paragraph (c) omit “or (b)”.
Paragraph 9D (certificate as to consent of home state regulator)I99113
Omit paragraph 9D M167 (certificate as to consent of home state regulator).
Paragraph 10 (insurance business transfers effected outside the United Kingdom)I100114
In paragraph 10 (insurance business transfers effected outside the United Kingdom)—
a
in sub-paragraph (1) for “any of the conditions in sub-paragraphs (2), (3) or (4)” substitute “
the condition in sub-paragraph (4)
”
;
b
omit sub-paragraphs (2) and (3) M168;
c
in sub-paragraph (4) M169 for “a UK authorised person” to the end substitute “
a UK authorised person as defined in section 105(8)
”
.
CHAPTER 23Schedule 17A to the Act: further provisions in relation to exercise of Part 18 functions by Bank of England
IntroductionI122115
Schedule 17A to the Act (further provision in relation to the exercise of Part 18 functions by Bank of England) M170 is amended as follows.
Paragraph 11 (information gathering and investigations)I101116
In paragraph 11 M171 (information gathering and investigations)—
a
in sub-paragraph (1)—
i
for paragraph (ab) substitute—
ab
a third country CSD, in relation to any services referred to in the Annex to the CSD regulation which the third country CSD provides in the United Kingdom;
ii
in paragraph (b), for “, a recognised CSD or an EEA CSD” substitute “
or a recognised CSD
”
;
b
in sub-paragraph (2), for paragraph (d) substitute—
d
information or documents reasonably required in connection with the exercise by the Bank of its functions—
i
under—
aa
the EMIR regulation,
bb
the CSD regulation,
cc
any EU regulation originally made under the CSD Regulation which is retained direct EU legislation, or
dd
any subordinate legislation made under the CSD Regulation on or after F21IP completion day;
ii
in connection with Article 4 or 15 of the SFT regulation; or
iii
under any subordinate legislation made under the SFT regulation on or after F21IP completion day.
Paragraphs 22 and 23 (public record and disclosure of information)I102117
1
In paragraph 22 M172 (public record and disclosure of information), before “or a recognised CSD”, insert “
, a third country CSD
”
.
2
In paragraph 23 M173 (public record and disclosure of information), in sub-paragraph (1), for the words from “or any directly applicable regulation” to the end substitute “
, any EU regulation originally made under the CSD regulation which is retained direct EU legislation, or any subordinate legislation made under the CSD regulation on or after F22IP completion day”
.
Paragraph 30 (offences)I103118
In paragraph 30 M174 (offences)—
a
in sub-paragraph (a), for “, a recognised CSD or an EEA CSD” substitute “
or a recognised CSD
”
;
b
in sub-paragraph (c), for “qualifying EU provision” substitute “
qualifying provision
”
.
Paragraph 36 (fees)I104119
In paragraph 36 M175—
a
in sub-paragraph (1), omit “, EEA CSDs”;
b
in sub-paragraph (2)(b), for “qualifying EU provision”, substitute “
qualifying provision
”
.