The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019

PART 2 U.K. Amendments to the Act

CHAPTER 1 U.K. Part 1A of the Act: the regulators

Introduction U.K.

2.  Part 1A of the Act M1 (the regulators) is amended as follows.

Commencement Information

I1 Reg. 2 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M1 Part 1A of the Financial Services and Markets Act 2000 (comprising sections 1A to 3S) was substituted by section 6 of the Financial Services Act 2012 (c.21).

Section 1A (the Financial Conduct Authority) U.K.

3.  In section 1A (the Financial Conduct Authority), in subsection (6)(d) for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I2 Reg. 3 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 1H (further interpretative provisions for sections 1B to 1G) U.K.

4.—(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 .

Commencement Information

I3 Reg. 4 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M2 Section 1H was inserted by section 6(1) of the Financial Services Act 2012 and was amended by sections 27(1), (2)(a) and (2)(b) of the Financial Guidance and Claims Act 2018 (c.10) and S.I. 2013/655, 2013/1881, 2013/3115, 2017/752 and 2018/135.

M3 This definition was amended by S.I. 2013/3115.

M4 S.I. 2001/544.

Section 1L (supervision, monitoring and enforcement) U.K.

5.  In section 1L M5 (supervision, monitoring and enforcement), in subsection (2)(b) for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I4 Reg. 5 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M5 Section 1L was amended by S.I. 2013/1773.

Section 2AB (functions of the PRA) U.K.

6.  In section 2AB M6 (functions of the PRA), in subsection (3)(d) M7 for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I5 Reg. 6 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M6 Section 2AB was substituted by section 12 of the Bank of England and Financial Services Act 2016 (c.14) and amended by S.I. 2018/1115.

M7 Subsection (3)(d) was amended by S.I. 2018/1115.

Section 3E (memorandum of understanding) U.K.

7.  In section 3E M8 (memorandum of understanding between regulators) omit subsection (3)(a).

Commencement Information

I6 Reg. 7 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M8 Section 3E was substituted by section 6(1) of the Financial Services Act 2012.

Section 3I (power of PRA to require FCA to refrain from specified action) U.K.

8.  In section 3I M9 (power of PRA to require FCA to refrain from specified action), in subsection (8) omit “EU obligation or any other”.

Commencement Information

I7 Reg. 8 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M9 Section 3I was amended by sections 3(a), (b) and 129 and paragraphs 1 and 4 of Part 1 to Schedule 8 to the Financial Services (Banking Reform) Act 2013 (c.33).

Section 3J (power of PRA in relation to with-profits policies) U.K.

9.  In section 3J M10 (power of PRA in relation to with-profits policies), in subsection (8) omit “EU obligation or any other”.

Commencement Information

I8 Reg. 9 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M10 Section 3J was substituted by section 6(1) of the Financial Services Act 2012.

Section 3M (directions relating to consolidated supervision of groups) U.K.

10.—(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),”M12 .

(3) After subsection (2) insert—

“(2A) “Implementing provision” means an enactment that immediately before [F1 IP completion day] implemented provisions of any of the relevant directives.”.

(4) In subsection (10) omit “EU obligation or any other”.

Textual Amendments

F1 Words in reg. 10(3) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(a)

Commencement Information

I9 Reg. 10 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M11 Section 3M was amended by S.I. 2013/3115 and 2014/3329.

M12 In the Interpretation Act 1978 (c.30), “subordinate legislation” has the meaning given by section 21(1) of that Act.

CHAPTER 2 U.K. Part 3 of the Act: authorisation and exemption

Introduction U.K.

11.  Part 3 of the Act (authorisation and exemption) is amended as follows.

Commencement Information

I10 Reg. 11 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 39 (exemption of appointed representatives) U.K.

12.—(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.”M20 .

Modifications etc. (not altering text)

C1 Reg. 12 modified (31.12.2020) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(2), 11(1)(4)(5) (with reg. 11(8)-(10)) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(f)); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I11 Reg. 12 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M13 Subsection (1A) was inserted by S.I. 2007/126 and has been amended by S.I. 2015/910 and 2017/701.

M14 Subsection (1AA) was inserted by S.I. 2017/701.

M15 Subsection (1B) was inserted by S.I. 2007/126 and was amended by paragraph 5 of Schedule 18 to the Financial Services Act 2012 and by S.I. 2017/701.

M16 Subsection (1BA) was inserted by S.I. 2015/910.

M17 Subsection (4) was substituted by paragraph 1 of Schedule 18 to the Financial Services Act 2012.

M18 Subsection (7) was inserted by S.I. 2007/126 and has been amended by S.I. 2017/701.

M19 Subsection (8) was amended by S.I. 2013/3115 and 2017/701.

M20 Part 3A was inserted by S.I. 2018/1403.

Section 39A (certain tied agents operating outside United Kingdom) U.K.

13.—(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 [F2 IP 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”.

(10) In paragraphs (8) and (9) “the three-year transitional period” means the period that—

(a) begins with [F3 IP completion day], and

(b) ends at the end of the period of three years starting with the first day after [F3 IP completion day].

Textual Amendments

F2 Words in reg. 13(8) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(b)(i)

F3 Words in reg. 13(10) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(b)(ii)

Commencement Information

I12 Reg. 13 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M21 Section 39A was inserted by S.I. 2007/126.

M22 Subsection (6)(c) was substituted by S.I. 2017/701.

M23 Subsection (6)(d) was amended by S.I. 2017/701.

M24 Subsection (8) was amended by S.I. 2017/701.

M25 This definition was amended by S.I. 2017/701.

CHAPTER 3 U.K. Part 4A of the Act: permission to carry on regulated activities

Introduction U.K.

14.  Part 4A of the Act M26 (permission to carry on regulated activities) is amended as follows.

Commencement Information

I13 Reg. 14 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M26 Part 4A was inserted by section 11(2) of the Financial Services Act 2012.

Section 55D (application for permission) U.K.

15.—(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 ”.

Commencement Information

I14 Reg. 15 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 55J (variation and cancellation of Part 4A permission: general) U.K.

16.—(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 [F4 IP 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 [F5 IP 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 [F5 IP 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 [F5 IP 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 [F6 IP completion day].”.

(8) After subsection (12), insert—

“(13) In this section “enactment” has the meaning given by section 3T.”.

Textual Amendments

F4 Words in reg. 16(2)(a)(ii) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(c)(i)

F5 Words in reg. 16(3) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(c)(ii)

F6 Words in reg. 16(7) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(c)(iii)

Commencement Information

I15 Reg. 16 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M27 Relevant amending instruments are S.I. 2013/1773, S.I. 2013/3115, S.I. 2015/910, S.I. 2015/1882 and S.I. 2016/680.

Section 55K (variation and cancellation of Part 4A permission: investment firms) U.K.

17.  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 ”.

Commencement Information

I16 Reg. 17 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 55KA (variation and cancellation of Part 4A permission: insurance undertakings etc.) U.K.

18.  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; ”.

Commencement Information

I17 Reg. 18 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M28 Section 55KA was inserted by S.I. 2015/575.

Section 55PA (imposition and variation of requirements) U.K.

19.  Omit section 55PA M29 (assets requirements imposed on insurance undertakings or reinsurance undertakings).

Commencement Information

I18 Reg. 19 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M29 Section 55PA was inserted by S.I. 2015/575.

Section 55Q (exercise of power in support of overseas regulator) U.K.

20.—(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 ”.

Commencement Information

I19 Reg. 20 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M30 There are other amending instruments but none is relevant.

Section 55R (connected persons) U.K.

21.  In section 55R (persons connected with an applicant), omit subsections (4) to (9) M31 .

Commencement Information

I20 Reg. 21 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M31 Subsections (4) to (6) were inserted by S.I. 2013/3115; subsections (7) to (9) were inserted by S.I. 2017/701; there are other amending instruments but none is relevant.

Section 55S (additional permissions) U.K.

22.  Omit section 55S (duty of FCA or PRA to consider other permissions).

Commencement Information

I21 Reg. 22 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Sections 55Z1 to 55Z2A (notification) U.K.

23.  Omit sections 55Z1 to 55Z2A M32 (notification of ESMA, EBA and European bodies).

Commencement Information

I22 Reg. 23 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M32 Section 55Z2 was amended by S.I. 2013/3115 and S.I. 2015/486; section 55Z2A was inserted by S.I. 2013/3115.

CHAPTER 4 U.K. Part 5 of the Act: performance of regulated activities

Introduction U.K.

24.  Part 5 of the Act (performance of regulated activities) is amended as follows.

Commencement Information

I23 Reg. 24 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 59 (approval for particular arrangements) U.K.

25.  In section 59 (approval for particular arrangements) omit subsection (8) M33 .

Commencement Information

I24 Reg. 25 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M33 Subsection (8) was amended by S.I. 2012/1906.

Section 63E (certification of employees by relevant authorised persons) U.K.

26.  In section 63E M34 (certification of employees by relevant authorised persons) omit subsection (7).

Commencement Information

I25 Reg. 26 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M34 Section 63E was inserted by section 29 of the Financial Services (Banking Reform) Act 2013.

Section 66A (misconduct: action by the FCA) U.K.

27.  In section 66A (misconduct: action by the FCA) in subsection (4)(b) M35 for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I26 Reg. 27 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M35 Section 66A was inserted by section 32(2) of the Financial Services (Banking Reform) Act 2013.

Section 66B (misconduct: action by the PRA) U.K.

28.  In section 66B (misconduct: action by the PRA) in subsection (4)(b) M36 for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I27 Reg. 28 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M36 Section 66B was inserted by section 32(2) of the Financial Services (Banking Reform) Act 2013.

Section 71D (sections 71B and 71C: conditions) U.K.

29.  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) ”.

Commencement Information

I28 Reg. 29 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 71I (sections 71B to 71H: interpretation) U.K.

30.—(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”.

Commencement Information

I29 Reg. 30 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M37 Section 71I was inserted by S.I. 2016/1239.

CHAPTER 5 U.K. Part 7 of the Act: control of business transfers

Introduction U.K.

31.  Part 7 of the Act (control of business transfers) is amended as follows.

Commencement Information

I30 Reg. 31 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 105 (insurance business transfer schemes) U.K.

32.—(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 [F7 or 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,”.

Textual Amendments

F7 Words in reg. 32(2)(b) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 9(2); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I31 Reg. 32 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M38 Subsection (2) was amended by S.I. 2007/3253 and paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

M39 Subsection (3) was amended by S.I. 2007/3253 and paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

M40 Subsection (4) was amended by S.I. 2007/3253.

Further amendments to Part 7 of the Act U.K.

33.—(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).

Commencement Information

I32 Reg. 33 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M41 Subsection (2)(a) was amended by paragraph 4(3)(a) of Schedule 1 to the Dormant Bank and Building Society Accounts Act 2008 (c.31)

M42 Subsection (9) was amended by S.I. 2008/1468 and paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

M43 Section 114A was inserted by S.I. 2007/3253.

CHAPTER 6 U.K. Part 9A of the Act: rules and guidance

Introduction U.K.

34.  Part 9A of the Act (rules and guidance) is amended as follows.

Commencement Information

I33 Reg. 34 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 137J (rules about recovery plans: duty to consult) U.K.

35.  In section 137J M44 (rules about recovery plans: duty to consult), in subsection (6) M45 —

(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 ”.

Commencement Information

I34 Reg. 35 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M44 Part 9A of the Financial Services and Markets Act 2000 (consisting of sections 137A to 141A) was inserted by section 24(1) of the Financial Services Act 2012.

M45 Subsection (6) was substituted by S.I. 2014/3348.

Section 137N (recovery plans and resolution packs: restriction on duty of confidence) U.K.

36.  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.

Commencement Information

I35 Reg. 36 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M46 Subsection (5) was amended by S.I. 2014/3348.

Section 137Q (price stabilising rules) U.K.

37.—(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.”.

Commencement Information

I36 Reg. 37 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M47 Subsection (3A) was substituted by S.I. 2016/680.

M48 Subsection (5) was inserted by S.I. 2016/680.

Section 137R (financial promotion rules) U.K.

38.—(1) Section 137R (financial promotion rules) is amended as follows.

(2) In subsection (5)(b) M49 , for the words from “requirements” to [F8 “(as defined in section 71I(5)),”] substitute “ listed requirements ”.

(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, F9 ...

(v) Article 17 of the insurance distribution directive, [F10 or]

[F11 (vi) 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.

[F12 (c) 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.”]M51 .

Textual Amendments

F8 Words in reg. 38(2) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 79(2)(a)

F9 Word in reg. 38(4) omitted (28.12.2020) by virtue of The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 79(2)(b)(i)(aa)

F10 Word in reg. 38(4) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 79(2)(b)(i)(bb)

F11 Words in reg. 38(4) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 79(2)(b)(i)(cc)

F12 Words in reg. 38(4) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 79(2)(b)(ii)

Commencement Information

I37 Reg. 38 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M49 Subsection (5)(b) was amended by S.I. 2015/910, 2017/701 and 2018/546.

M50 Subsection (5) was amended by S.I. 2015/910, 2017/701 and 2018/546.

M51 Commission Delegated Directive (EU) 2017/593 was published at OJ No. L 87, 31.3.2017, p 500 – 517.

Section 138K (consultation: mutual societies) U.K.

39.  In section 138K M52 omit subsections (5)(d) M53 and (6) (references to EEA mutual societies).

Commencement Information

I38 Reg. 39 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M52 Section 138K was inserted by section 24(1) of the Financial Services Act 2012.

M53 Subsection (5) was amended. None of these amendments is relevant.

Section 139A (power of the FCA to give guidance) U.K.

40.  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 [F13 IP completion day] under the market abuse regulation ”.

Textual Amendments

F13 Words in reg. 40 substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(d)

Commencement Information

I39 Reg. 40 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M54 Subsection (4) was inserted by S.I. 2016/680.

Section 141A (power to make consequential amendments of references to rules etc) U.K.

41.  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).”.

Commencement Information

I40 Reg. 41 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

CHAPTER 7 U.K. Part 11 of the Act: information gathering and investigations

Introduction U.K.

42.  Part 11 of the Act (information gathering and investigations) is amended as follows.

Commencement Information

I41 Reg. 42 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 165A (PRA's power to require information: financial stability) U.K.

43.—(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). ”.

Commencement Information

I42 Reg. 43 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M55 Section 165A was inserted by sections 18 (1) and (2) of the Financial Services Act 2010 (c. 28) and was amended by section 41 of, and paragraphs 2(a), (b) of Part 1 of Schedule 12 to, the Financial Services Act 2012 and section 16 of, and paragraphs 26, 37(1), (2)(a), (2)(b), (3) of Part 2 of Schedule 2 to, the Bank of England and Financial Services Act 2016 (c. 14) and S.I. 2017/1255.

M56 S.I. 2001/544.

M57 Subsection (9) was amended by S.I. 2017/1255.

Section 167 (appointment of persons to carry out general investigations) U.K.

44.  Omit section 167(3A) M58 (investigations of persons in other EEA States).

Commencement Information

I43 Reg. 44 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M58 Subsection (3A) was inserted by S.I. 2015/575.

Section 168 (appointment of persons to carry out investigations in particular cases) U.K.

45.  In section 168 (appointment of investigators: particular cases), in subsection (4)—

(a) in paragraph (jc)(ii) M59 for “a directly applicable EU regulation made” 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 [F14 IP completion day]”;

(b) in paragraph (k) M60 for “qualifying EU provision” substitute “ qualifying provision ”.

Textual Amendments

F14 Words in reg. 45(a) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(e)

Commencement Information

I44 Reg. 45 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M59 Paragraph (jc) was substituted by S.I. 2017/1255.

M60 Paragraph (k) was substituted by section 41 of, and paragraphs 8(1) and (4)(g) of Part 1 of Schedule 12 to, the Financial Services Act 2012.

Section 169 (investigations etc. in support of overseas regulator) U.K.

46.  Omit section 169(3) M61 and (6) M62 (investigations in connection with EU obligations).

Commencement Information

I45 Reg. 46 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M61 Subsection (3) was amended by section 41 of, and paragraphs 9(1) and (3) of Part 1 of Schedule 12 to, the Financial Services Act 2012 and S.I. 2011/1043.

M62 Subsection (6) was substituted by section 41 of, and paragraphs 9(1) and (5) of Part 1 of Schedule 12 to, the Financial Services Act 2012 and S.I. 2011/1043.

Section 169A (support of overseas regulator with respect to financial stability) U.K.

47.  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) ”.

Commencement Information

I46 Reg. 47 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M63 Section 169A was inserted by sections 18(1) and (3) of the Financial Services Act 2010.

CHAPTER 8 U.K. Part 12 of the Act: control over authorised persons

Introduction U.K.

48.  Part 12 of the Act (control over authorised persons) is amended as follows.

Commencement Information

I47 Reg. 48 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 184 (disregarded holdings) U.K.

49.  M64 In section 184 (disregarded holdings)—

(a) 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;”;

(b) in subsection (5), for “credit institution” substitute “ qualifying credit institution ”;

(c) 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;

(d) in subsection (7) M66 , for “Article 2.1(b) of the UCITS Directive” substitute “ section 237(2) ”;

(e) 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 ”.

Commencement Information

I48 Reg. 49(e) in force at 23.3.2019, see reg. 1(2)(a)

I49 Regs. 49(a)-(d) in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M64 Section 184 was substituted by S.I. 2009/534.

M65 Section 184(4)(a) was substituted by S.I. 2017/701.

M66 Section 184(7) was amended by S.I. 2011/1613.

M67 Section 184(9A) was inserted by S.I. 2015/1755.

Section 186 (assessment criteria) U.K.

50.  In section 186 M68 (assessment criteria), in paragraph (f)(i), for the words from “within the” to “terrorist financing” substitute “ as defined in regulation 3(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ”M69 .

Commencement Information

I50 Reg. 50 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M68 Section 186 was substituted by S.I. 2009/534.

M69 S.I. 2017/692.

Section 188 (assessment: consultation with EC competent authorities) U.K.

51.  Omit section 188 (assessment: consultation with EC competent authorities) M70 .

Commencement Information

I51 Reg. 51 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M70 Section 188(1) was substituted by section 26(2) of the Financial Services Act 2012 (c. 21) and S.I. 2009/534 and 2013/3115.

Section 189 (assessment: procedure) U.K.

52.  In section 189 M71 (assessment: procedure), in subsections (1A), (1ZB)(a) and (1ZB)(b), for “credit institution” substitute “ qualifying credit institution ”.

Commencement Information

I52 Reg. 52 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M71 Section 189 was inserted by S.I. 2009/534. Subsection (1A) was inserted by S.I. 2014/3329, and subsection (1ZB) by paragraph 39 of Schedule 2 to the Bank of England and Financial Services Act 2016.

Section 190 (requests for further information) U.K.

53.  In section 190 (requests for further information) M72 , in subsection (4)—

(a) in paragraph (a) M73 , for “European Union” substitute “ United Kingdom [F15 or Gibraltar] ”;

(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) [F16 or of Gibraltar] relied on immediately before [F17 IP 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 [F17 IP completion day] , and, as amended from to time, in all other cases.”.

Textual Amendments

F15 Words in reg. 53(a) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 9(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

F16 Words in reg. 53(b) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 9(3)(b); 2020 c. 1, Sch. 5 para. 1(1)

F17 Words in reg. 53(b) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(f)

Commencement Information

I53 Reg. 53 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3);

Marginal Citations

M72 Section 190 was substituted by S.I. 2009/534.

M73 Section 190(4)(a) was amended by S.I. 2011/1043.

M74 Section 190(4)(b) was substituted by S.I. 2015/575.

Section 190A (assessment and resolution) U.K.

54.  In section 190A M75 (assessment and resolution), in subsections (1)(a), (1)(c) and (7), for “credit institution” substitute “ qualifying credit institution ”.

Commencement Information

I54 Reg. 54 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M75 Section 190A was inserted by S.I. 2016/1239.

Section 191A (objection by the appropriate regulator) U.K.

55.  In section 191A (objection by the appropriate regulator), omit subsection (5) M76 .

Commencement Information

I55 Reg. 55 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M76 Section 191A was substituted by S.I. 2009/534; subsection (5) was amended by section 26(2) of the Financial Services Act 2012.

Section 191G (interpretation of Part 12) U.K.

56.  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 .

[F18 (c) 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.”]

Textual Amendments

F18 Reg. 56(c) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 9(4) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(d)(i)); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I56 Reg. 56 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M77 Section 191G was substituted by S.I. 2009/534.

M78 The definition of “credit institution” in section 191G(1) was amended by S.I. 2013/3115.

M79 S.I. 2019/325.

CHAPTER 9 U.K. Part 12A of the Act: powers exercisable in relation to parent undertakings

Introduction U.K.

57.  Part 12A of the Act (powers exercisable in relation to parent undertakings) is amended as follows.

Commencement Information

I57 Reg. 57 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 192C (power to direct qualifying parent undertaking) U.K.

58.—(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.”.

Commencement Information

I58 Reg. 58 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M80 Section 192C was inserted by section 27 of the Financial Services Act 2012.

Section 192JB (rules requiring parent undertakings to facilitate resolution) U.K.

59.  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;”.

Commencement Information

I59 Reg. 59 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M81 Section 192JB was inserted by section 133(1) of the Financial Services (Banking Reform) Act 2013 (c. 33) and was amended by S.I. 2014/3329.

Section 192K (power to impose penalty or issue censure) U.K.

60.  In section 192K M82 (power to impose penalty or issue censure), in subsection (1)(c) M83 for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I60 Reg. 60 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M82 Section 192K as inserted by section 27 of the Financial Services Act 2012.

M83 Subsection (1) was inserted by S.I. 2014/3329 and section 133(2)(a) of the Financial Services (Banking Reform) Act 2013.

CHAPTER 10 U.K. Part 14 of the Act: disciplinary measures

Section 204A (meaning of “relevant requirement” etc.) U.K.

61.  In section 204A M84 (meaning of “relevant requirement” etc.), in subsection (2)(b) M85 for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I61 Reg. 61 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M84 Section 204A was inserted by section 37(1) of, and paragraph 1 of Part 1 and paragraph 10 of Part 4 of Schedule 9 to, the Financial Services Act 2012.

M85 Subsection (2) was amended by S.I. 2013/1773 and 2016/255.

CHAPTER 11 U.K. Part 20 of the Act: provision of financial services by members of the professions

Introduction U.K.

62.  Part 20 of the Act M86 (provision of financial services by members of the professions) is amended as follows.

Commencement Information

I62 Reg. 62 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M86 2000 c. 8. Section 327(1)(aa), (7A) and (7B) were inserted by S.I. 2017/701. Section 328(6) was substituted by S.I. 2003/1473 and amended by paragraph 2 of Schedule 16 to the Financial Services Act 2012 (c. 21), S.I. 2011/1043, S.I. 2013/1881 and S.I. 2018/546.

Section 326 (designation of professional bodies) U.K.

63.  In section 326 (designation of professional bodies), omit subsection (5)(d).

Commencement Information

I63 Reg. 63 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 327 (exemption from the general prohibition) U.K.

64.  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 ”.

Commencement Information

I64 Reg. 64 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 328 (directions in relation to the general prohibition) U.K.

65.  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).

Commencement Information

I65 Reg. 65 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

CHAPTER 12 U.K. Part 22 of the Act: auditors and actuaries

Introduction U.K.

66.  Part 22 of the Act (auditors and actuaries) is amended as follows.

Commencement Information

I66 Reg. 66 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 342 (information given by auditor or actuary to a regulator) U.K.

67.  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”.

Commencement Information

I67 Reg. 67 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M87 Subsection (8) was inserted by S.I. 2013/3115.

Section 343 (information given by auditor or actuary to a regulator: persons with close links) U.K.

68.  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”.

Commencement Information

I68 Reg. 68 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M88 Section 343 was amended by section 42 of, and paragraphs 1, 5(1), (2)(a), (2)(b), (3)(a), (3)(b), (3)(c), (4), (5), (6) and (7) of Part 1 of Schedule 13 to, the Financial Services Act 2012 and S.I. 2013/3115.

M89 Subsection (10) was inserted by S.I. 2013/3115.

CHAPTER 13 U.K. Part 25 of the Act: injunctions and restitution

Introduction U.K.

69.  Part 25 of the Act (injunctions and restitution) is amended as follows.

Commencement Information

I69 Reg. 69 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 380 (injunctions) U.K.

70.—(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 ”.

Commencement Information

I70 Reg. 70 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M90 Section 380 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraphs 19(1), (2), (3)(a), (3)(b), (3)(c), (4) and (5) of Part 5 of Schedule 9 to, the Financial Services Act 2012, section 141 of, and paragraphs 3(1) and (2) of Schedule 10 to, the Financial Services (Banking Reform) Act 2013, S.I. 2013/1773, 2015/1755 and 2016/225.

M91 Subsection (6) was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraphs 19(1), (3)(a), (3)(b), (3)(c) of Part 5 of Schedule 9 to, the Financial Services Act 2012, section 141 of, and paragraphs 3(1) and (2) of Schedule 10 to, the Financial Services (Banking Reform) Act 2013, S.I. 2013/1773, 2015/1755 and 2016/225.

M92 Subsection (9) was inserted by section 37(1) of, and paragraph1 of Part 1 and paragraphs 19(1) and (5) of Part 5 of Schedule 9 to, the Financial Services Act 2012.

Section 382 (restitution orders) U.K.

71.—(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 ”.

Commencement Information

I71 Reg. 71 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M93 Section 382 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraphs 21(1), (2), (3), (4), (5)(a), (5)(b), (5)(c), (6), (7) of Part 5 of Schedule 9 to, the Financial Services Act 2012, section 141 of, and paragraphs 3(1), (3) of Schedule 10 to, the Financial Services (Banking Reform) Act 2013 and S.I. 2013/1773.

M94 Subsection (9)(a)(i) was amended by S.I. 2013/1773.

M95 Subsection (12) was inserted by section 37(1), and paragraph 1 of Part 1 and paragraphs 21(1) and (7) of Part 5 of Schedule 9 to, the Financial Services Act 2012.

Section 384 (power of FCA or PRA to require restitution) U.K.

72.—(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 ”.

Commencement Information

I72 Reg. 72 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M96 Section 384 was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraphs 23(1), (2)(a), (2)(b), (4)(a), (4)(b), (5), (6)(a), (6)(b), (7), (8), (9) and (10) of Part 5 of Schedule 9 to, the Financial Services Act 2012, section 141 of, and paragraphs 3(1) and (4) of Schedule 10 to, the Financial Services (Banking Reform) Act 2013, S.I. 2007/126 and 2016/680.

M97 Subsection (7) was amended by section 37(1) of, and paragraph 1 of Part 1 and paragraphs 23(1), (6)(a) and (6)(b) of Part 5 of Schedule 9 to, the Financial Services Act 2012, section 141 of, and paragraphs 3(1) and (4) of Schedule 10 to, the Financial Services (Banking Reform) Act 2013 and S.I. 2007/126.

M98 Subsection (10) was inserted by section 37(1) of, and paragraph 1 of Part 1 and paragraphs 23(1) and (8) of Part 5 of Schedule 9 to, of the Financial Services Act 2012.

CHAPTER 14 U.K. Part 26 of the Act: notices

Introduction U.K.

73.  Part 26 of the Act (notices) is amended as follows.

Commencement Information

I73 Reg. 73 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 391 (publication) U.K.

74.—(1) Section 391 M99 (publication) is amended as follows.

(2) Omit subsections (7A) M100 and (7B) M101 .

(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 [F19 IP 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 [F20 IP 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 [F21 IP 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 [F22 IP completion day],

this section”.

(9) Omit subsection (8F) M106 .

Textual Amendments

F19 Words in reg. 74(4) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(g)(i)

F20 Words in reg. 74(6) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(g)(ii)

F21 Words in reg. 74(7)(c) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(g)(iii)

F22 Words in reg. 74(8) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(g)(iv)

Commencement Information

I74 Reg. 74 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M99 Section 391 was amended by sections 13(1) and (3), 24(1) and (2) of, and paragraphs 1 and 28 of Part 1 of Schedule 2 to, the Financial Services Act 2010, sections 24(2) and 37(1) of, and paragraph 1 of Part 1 and paragraphs 30(1), (2), (3), (4)(a), (4)(b), (5), (6), (7), (8) of Part 6 of Schedule 9 to, the Financial Services Act 2012, section 4(3) of the Financial Services (Banking Reform) Act 2013, S.I. 2012/916, 2013/1388, 2013/3115, 2014/2879, 2015/1755, 2016/225, 2016/680, 2016/715, 2017/701, 2017/1127 and 2018/135.

M100 Subsection (7A) was inserted by S.I. 2012/916 and amended by section 37(1) of, paragraph 1 of Part 1 and paragraphs 30(1) and (8) of Part 6 of Schedule 9 to, the Financial Services Act 2012.

M101 Subsection (7B) was inserted by S.I. 2012/916 and amended by S.I. 2016/680 and 2017/701.

M102 Subsection (8A) was inserted by S.I. 2014/2879.

M103 Subsection (8B) was inserted by S.I. 2016/680.

M104 Subsection (8D) was inserted by S.I. 2017/1127.

M105 Subsection (8E) was inserted by S.I. 2018/135.

M106 Subsection (8F) was inserted by S.I. 2018/1288.

Section 391A (publication: special requirements relating to capital requirements directive) U.K.

75.—(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.

Commencement Information

I75 Reg. 75 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M107 Section 391A was inserted by S.I. 2013/3115 and amended by S.I. 2015/1755.

M108 Subsection (6) was amended by section 211(1)(a) of, and paragraphs 48 and 50 of Part 1 of Schedule 19 to, the Data Protection Act 2018 (c. 12).

Section 391B (publication: special provisions relating to the transparency obligations directive) U.K.

76.—(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 ”.

Commencement Information

I76 Reg. 76 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M109 Section 391B was inserted by S.I. 2015/1755.

Section 391C (publication: special provisions relating to the UCITS directive) U.K.

77.—(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.

Commencement Information

I77 Reg. 77 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M110 Section 391C was inserted by S.I. 2016/225 and amended by section 211(1)(a) of, and paragraphs 48 and 51 of Part 1 of Schedule 19 to, the Data Protection Act 2018.

M111 Subsection (7) was amended by section 211(1)(a) of, and paragraphs 48 and 51 of Part 1 of Schedule 19 to, the Data Protection Act 2018.

Section 391D (publication: special provisions relating to the markets in financial instruments directive) U.K.

78.—(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.

Commencement Information

I78 Reg. 78 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M112 Section 391D was inserted by S.I. 2017/701 and amended by S.I. 2018/625.

M113 Subsection (9) was amended by section 211(1)(a) of, and paragraphs 48 and 52 of Part 1 of Schedule 19 to, the Data Protection Act 2018.

Section 391E (publication: special provisions relating to the insurance distribution directive) U.K.

79.—(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).

Commencement Information

I79 Reg. 79 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M114 Section 391E was inserted by S.I. 2018/546.

CHAPTER 15 U.K. Part 27 of the Act: offences

Section 398 (misleading FCA or PRA: residual cases) U.K.

80.—(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 [F23 IP completion day];”.

Textual Amendments

F23 Words in reg. 80(2)(b) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(h)

Commencement Information

I80 Reg. 80 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M115 Section 398 was amended by section 37(1) of, and paragraph 1 of part 1 and paragraphs 36(1) and (3) of Part 7 of Schedule 9 to, the Financial Services Act 2012, S.I. 2013/1773, 2015/1882, 2016/680, 2017/701, 2018/135 and 2018/698.

M116 Subsection (1A) was amended by S.I. 2013/1773, 2015/1882, 2016/680, 2017/701, 2018/135 and 2018/698.

CHAPTER 16 U.K. Part 28 of the Act: miscellaneous

Introduction U.K.

81.  Part 28 of the Act (miscellaneous) is amended as follows.

Commencement Information

I81 Reg. 81 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 404E (meaning of “consumers”) U.K.

82.  In section 404E M117 (meaning of “consumers”), in subsection (6) omit the definition of “credit institution”.

Commencement Information

I82 Reg. 82 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M117 Section 404E was inserted by section 14(1) of the Financial Services Act 2010.

Section 410 (international obligations) U.K.

83.  In section 410 M118 (international obligations), in subsection (1) M119 , for “EU obligations or any other” substitute “ any ”.

Commencement Information

I83 Reg. 83 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M118 Section 410 was amended by sections 16(1), 16(14)(i) and 47 of the Financial Services Act 2012, S.I. 2011/1043 and 2017/1064.

M119 Subsection (1) was amended by S.I. 2011/1043.

CHAPTER 17 U.K. Part 29 of the Act: interpretation of the Act

Introduction U.K.

84.  Part 29 of the Act (interpretation of the Act) is amended as follows.

Commencement Information

I84 Reg. 84 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 417 (definitions) U.K.

85.—(1) In section 417 (definitions) subsection (1) is amended as set out in paragraphs (2) to (13).

(2) After “In this Act” insert “ and in any order or regulations made under this Act ”.

(3) In the definition of “capital requirements regulation”M120 , at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

(4) 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 ”.

(5) 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;”.

(6) In the definition of “the CSD regulation”M122 , at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

(7) 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;”.

(8) In the definition of “market abuse regulation”M124 , at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

(9) 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.));”.

(10) 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;”.

(11) In the definition of “short selling regulation”M126 , at the end insert “ , as it has effect at the updating point (see subsection (1A)) ”.

(12) 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 ”.

(13) Omit the definitions of—

• “EBA” M128 ,

• “EIOPA” M129 ,

• “mortgage creditor” M130 ,

• “mortgage intermediary” M131 , and

• “tied mortgage intermediary” M132 .

(14) 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).”.

Commencement Information

I85 Reg. 85(3)(6)(8)(11)(14) in force at 23.3.2019, see reg. 1(2)(b)

I86 Reg. 85(1)(2)(4)(5)(7)(9), (10)-(13) in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M120 This definition was inserted by S.I. 2013/3115.

M121 This definition was inserted by S.I. 2017/1064.

M122 This definition was inserted by S.I. 2014/2879.

M123 This definition was inserted by S.I. 2015/575.

M124 This definition was inserted by S.I. 2016/680.

M125 This definition was inserted by S.I. 2015/575.

M126 This definition was inserted by S.I. 2012/2554.

M127 This definition was inserted by S.I. 2015/575.

M128 This definition was inserted by S.I. 2012/916.

M129 This definition was inserted by S.I. 2018/546.

M130 This definition was inserted by S.I. 2015/910.

M131 This definition was inserted by S.I. 2015/910.

M132 This definition was inserted by S.I. 2015/910.

Section 418 (carrying on regulated activities in the United Kingdom) U.K.

86.—(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.”.

Commencement Information

I87 Reg. 86 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M133 Amendments of section 418 are made by S.I. 2013/1797 but these are not in force.

M134 Subsection (1) was amended by S.I. 2014/1292.

M135 Subsection (3)(b) was amended by S.I. 2011/1043.

M136 Subsection (5AA) was inserted by S.I. 2014/1292

M137 Subsection (7) was inserted by S.I. 2012/1906.

M138 Subsection (8) was inserted by S.I. 2014/1292.

Section 420 (parent and subsidiary undertaking) U.K.

87.  In section 420 (parent and subsidiary undertaking), in subsection (2)(b)—

(a) omit “other than the United Kingdom”;

(b) 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 .

Commencement Information

I88 Reg. 87(b) in force at 23.3.2019, see reg. 1(2)(c)

I89 Reg. 87(a) in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M139 OJ L 182, 29.6.2013, p. 19-76.

Section 422A (disregarded holdings) U.K.

88.  M140 In section 422A (disregarded holdings)—

(a) 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;”;

(b) in subsection (5), for “credit institution” substitute “ qualifying credit institution ”;

(c) 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;

(d) in subsection (7) M142 , for “Article 2.1(b) of the UCITS Directive” substitute “ section 237(2) ”;

(e) 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 ”;

[F24 (f) for subsection (10), substitute—

“(10) For the purposes of this section “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.”]

Textual Amendments

F24 Reg. 88(f) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 9(5) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(d)(ii)); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I90 Reg. 88(e) in force at 23.3.2019, see reg. 1(2)(d)

I91 Regs. 88(a)-(d)(f) in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M140 Section 422A was substituted by S.I. 2009/534.

M141 Section 422A(4)(a) was amended by S.I. 2017/701.

M142 Section 422A(7) was amended by S.I. 2011/1613.

M143 Section 422A(9A) was inserted by S.I. 2015/1755.

Mortgage agreements etc U.K.

89.  After section 423 insert—

“423A.    Mortgage 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 [F25 IP 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 [F25 IP completion day], is a reference to any immovable property, land or building in the United Kingdom.”.

Textual Amendments

F25 Words in reg. 89 substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(i)

Commencement Information

I92 Reg. 89 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Section 424A (meaning of “investment firm”) U.K.

90.—(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).”.

Commencement Information

I93 Reg. 90 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M144 Section 424A was inserted by S.I. 2006/2975.

M145 Subsection (3) was substituted by S.I. 2007/126.

M146 Subsection (5) was amended by S.I. 2017/701.

Section 425A (consumers: regulated activities etc carried on by authorised persons) U.K.

91.—(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) ”.

Commencement Information

I94 Reg. 91 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M147 Section 425A was inserted by paragraph 32 of Schedule 2 to the Financial Services Act 2010.

M148 Subsection (7) was amended by S.I. 2013/3115.

M149 The definition of “credit institution” was amended by S.I. 2013/3115.

Section 425C (“qualifying EU provision”) U.K.

92.  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.”.

Commencement Information

I95 Reg. 92 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M150 Section 425C was inserted by section 48(3) of the Financial Services Act 2012.

CHAPTER 18 U.K. Schedule 1ZA to the Act: the Financial Conduct Authority

Schedule 1ZA (the Financial Conduct Authority) U.K.

93.  In Schedule 1ZA M151 (the Financial Conduct Authority), in paragraph 23(2)(b) M152 , for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I96 Reg. 93 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M151 Schedule 1ZA was inserted by section 6(2) of, and Schedule 3 to, the Financial Services Act 2012.

M152 Paragraph 23 was amended by section 129 of, and paragraphs 1, 7(1) and (3) of Part 1 of Schedule 8 to, the Financial Services (Banking Reform) Act 2013, section 47 of, and paragraphs 1 and 16(a) of Schedule 3 to, section 47 of, and paragraphs 1, 16(b), (c), (d) of Schedule 3 to, the Pension Schemes Act 2015 (c. 8), sections 29(1), (6)(a), (6)(b) of the Bank of England and Financial Services Act 2016 (c. 14), section 25 of, and paragraphs 5, 21(1), (5)(a)(i), (5)(a)(ii), (5)(a)(iii), (5)(b)(i), (5)(b)(ii), (5)(b)(iii), (5)(b)(iv) of Schedule 3 to, the Financial Guidance and Claims Act 2018 (c. 10), and S.I. 2013/1773.

CHAPTER 19 U.K. Schedule 1ZB to the Act: the Prudential Regulation Authority

Schedule 1ZB (the Prudential Regulation Authority) U.K.

94.  In Schedule 1ZB to the Act M153 (the Prudential Regulation Authority), in paragraph 31(2)(b) M154 , for “qualifying EU provision” substitute “ qualifying provision ”.

Commencement Information

I97 Reg. 94 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M153 Schedule 1ZB was inserted by section 6(2) of, and Schedule 3 to, the Financial Services Act 2012.

M154 Paragraph 31 was amended by section 16 of, and paragraphs 26, 50(1) and (7)(b) of Part 2 of Schedule 2 to, the Bank of England and Financial Services Act 2016.

CHAPTER 20 U.K. Schedule 2 to the Act: regulated activities

Schedule 2 (regulated activities) U.K.

95.  In Schedule 2 (regulated activities), in paragraph 13(2)(c) omit “or another member State”.

Commencement Information

I98 Reg. 95 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

CHAPTER 21 U.K. Schedule 6 to the Act: threshold conditions

Introduction U.K.

96.  Schedule 6 M155 to the Act (threshold conditions) is amended as follows.

Commencement Information

I99 Reg. 96 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M155 Schedule 6 was substituted by S.I. 2013/555.

Interpretation U.K.

97.—(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));”.

Commencement Information

I100 Reg. 97 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 2C (effective supervision) U.K.

98.  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 ”.

Commencement Information

I101 Reg. 98 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 3B (effective supervision) U.K.

99.  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 ”.

Commencement Information

I102 Reg. 99 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 4A (introduction to Part 1D) U.K.

100.  In paragraph [F26 4A]—

(a) for [F27 sub-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 [F28 sub-paragraph (6)(b)] substitute—

“(b) the persons are not insurance undertakings;”.

[F29 (c) 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)).”.]

Textual Amendments

F26 Word in reg. 100 substituted (31.12.2020 immediately before IP completion day) by The Risk Transformation and Solvency 2 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/1233), regs. 1(3), 5(a); 2020 c. 1, Sch. 5 para. 1(1)

F27 Words in reg. 100(a) substituted (31.12.2020 immediately before IP completion day) by The Risk Transformation and Solvency 2 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/1233), regs. 1(3), 5(b); 2020 c. 1, Sch. 5 para. 1(1)

F28 Words in reg. 100(b) substituted (31.12.2020 immediately before IP completion day) by The Risk Transformation and Solvency 2 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/1233), regs. 1(3), 5(c); 2020 c. 1, Sch. 5 para. 1(1)

F29 Reg. 100(c) inserted (31.12.2020 immediately before IP completion day) by The Risk Transformation and Solvency 2 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/1233), regs. 1(3), 5(d); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I103 Reg. 100 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 4F (effective supervision) U.K.

101.  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 ”.

Commencement Information

I104 Reg. 101 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 5F (effective supervision) U.K.

102.  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 ”.

Commencement Information

I105 Reg. 102 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 8 (additional conditions) U.K.

103.  In paragraph 8(2)(a) (additional conditions), for “EEA” substitute “ United Kingdom ”.

Commencement Information

I106 Reg. 103 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

CHAPTER 22 U.K. Schedule 12 to the Act: transfer schemes: certificates

Introduction U.K.

104.  Schedule 12 to the Act (transfer schemes: certificates) is amended as follows.

Commencement Information

I107 Reg. 104 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Paragraph 1 (insurance business transfer schemes) U.K.

105.  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.”.

Commencement Information

I108 Reg. 105 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M156 Paragraph 1 was amended by S.I. 2007/3253 and 2015/575 and paragraph 10 of Schedule 6 to the Financial Services Act 2012 and paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013 (c. 33).

Paragraph 2 (certificates as to margin of solvency) U.K.

106.—(1) Paragraph 2 (certificates as to margin of solvency) is amended as follows.

F30 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 .

Textual Amendments

F30 Reg. 106(2) omitted (31.12.2020 immediately before IP completion day) by virtue of The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 9(6); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I109 Reg. 106 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M157 Paragraph (a) was amended by S.I. 2007/3253; paragraph (aa) was substituted by S.I. 2015/575.

M158 Paragraph (c) was amended by S.I. 2007/3253.

M159 Paragraphs (c)(i) and (ii) were substituted by paragraph 11(4) of Schedule 6 to the Financial Services Act 2012.

M160 Sub-paragraphs (7A) and (9) were substituted by S.I. 2015/575.

Paragraphs 3 to 6 (further provisions on certificates) U.K.

107.  Omit paragraphs 3 to 6 M161 (further provisions on certificates).

Commencement Information

I110 Reg. 107 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M161 Paragraph 3A was inserted by S.I. 2015/575; paragraph 5A was inserted by S.I. 2007/3253.

Paragraph 7 (banking business transfer schemes) U.K.

108.  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.”.

Commencement Information

I111 Reg. 108 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M162 Paragraph 7 was amended by paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

Paragraph 8 (certificates as to financial resources) U.K.

109.  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) ”.

Commencement Information

I112 Reg. 109 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M163 Sub-paragraphs (a) and (aa) were substituted by paragraph 16(a) of Schedule 6 to the Financial Services Act 2012. Sub-paragraph (c) was amended by paragraph 16(b) of Schedule 6 to the Financial Services Act 2012.

Paragraph 9 (certificates as to consent of home state regulator) U.K.

110.  Omit paragraph 9 M164 (certificates as to consent of home state regulator).

Commencement Information

I113 Reg. 110 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M164 Paragraph 9 was amended by paragraph 17 of Schedule 6 to the Financial Services Act 2012 and paragraph 2 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

Paragraph 9B (ring-fencing transfer schemes) U.K.

111.  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.”.

Commencement Information

I114 Reg. 111 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M165 Paragraph 9B was inserted by paragraph 13 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

Paragraph 9C (certificate as to financial resources) U.K.

112.  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)”.

Commencement Information

I115 Reg. 112 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M166 Paragraph 9C was inserted by paragraph 13 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

Paragraph 9D (certificate as to consent of home state regulator) U.K.

113.  Omit paragraph 9D M167 (certificate as to consent of home state regulator).

Commencement Information

I116 Reg. 113 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M167 Paragraph 9D was inserted by paragraph 13 of Schedule 1 to the Financial Services (Banking Reform) Act 2013.

Paragraph 10 (insurance business transfers effected outside the United Kingdom) U.K.

114.  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) ”.

Commencement Information

I117 Reg. 114 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M168 Sub-paragraph (2) was amended by S.I. 2007/3253 and paragraph 19(2) of Schedule 6 to the Financial Services Act 2012; sub-paragraph (3) was substituted by S.I. 2015/575.

M169 Sub-paragraph (4) was substituted by S.I. 2015/575.

CHAPTER 23 U.K. Schedule 17A to the Act: further provisions in relation to exercise of Part 18 functions by Bank of England

Introduction U.K.

115.  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.

Commencement Information

I118 Reg. 115 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M170 Schedule 17A was inserted by paragraph 1 of Schedule 7 to the Financial Services Act 2012.

Paragraph 11 (information gathering and investigations) U.K.

116.  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 [F31 IP 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 [F31 IP completion day].”.

Textual Amendments

F31 Words in reg. 116(b) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(j)

Commencement Information

I119 Reg. 116 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M171 Sub-paragraph (1)(ab) was inserted by S.I. 2017/1064; sub-paragraph (2)(d) was inserted by S.I. 2013/504 and amended by S.I. 2014/2879 and 2016/715.

Paragraphs 22 and 23 (public record and disclosure of information) U.K.

117.—(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 [F32 IP completion day]”.

Textual Amendments

F32 Words in reg. 117(2) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 33(k)

Commencement Information

I120 Reg. 117 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M172 Paragraph 22 was amended by S.I. 2017/1064.

M173 Sub-paragraph (1) was renumbered by paragraph 51(4) of Schedule 2(2) to the Bank of England and Financial Services Act 2016 (c. 14) and amended by S.I. 2017/1064.

Paragraph 30 (offences) U.K.

118.  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 ”.

Commencement Information

I121 Reg. 118 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M174 Sub-paragraph (a) was amended by S.I. 2017/1064.

Paragraph 36 (fees) U.K.

119.  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 ”.

Commencement Information

I122 Reg. 119 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M175 Sub-paragraph (1) was amended by S.I. 2013/504, 2017/1064 and 2018/1184. Sub-paragraph (2)(b) was amended by S.I. 2018/1115.