PART 2Amendment of Primary Legislation and Northern Ireland Legislation

Financial Services and Markets Act 20004.

(1)

The Financial Services and Markets Act 200015 is amended as follows.

(2)

In section 3M(1) (directions relating to consolidated supervision of groups)16—

(a)

at the end of paragraph (a), omit “or”;

(b)

after paragraph (b) insert—

“(c)

Part 9C rules;

(d)

CRR rules; or

(e)

rules made under section 192XA.”.

(3)

In section 55J(6A)(c) (variation or cancellation on initiative of regulator)17, for the words from “the capital requirements regulation” to the end substitute “Part 9C rules”.

(4)

In section 55PB(6) (requirements relating to general meetings)18, in the definition of “investment firm”, for “section 258A of the Banking Act 2009” substitute “Article 4(1)(2) of the capital requirements regulation19”.

(5)

In section 71I(1)(c) (sections 71B to 71H: interpretation)20, for “section 258A of the Banking Act 2009” substitute “Article 4(1)(2) of the capital requirements regulation”.

(6)

In section 137J(6) (rules about recovery plans: duty to consult)21, in the definition of “institution”, for paragraph (b) substitute—

“(b)

a designated investment firm as defined in Article 4(1)(2AA) of the capital requirements regulation22;”.

(7)

In section 192JB23 (rules requiring parent undertakings to facilitate resolution)—

(a)

in subsection (3)(c), for “consolidating supervisor of the qualifying parent undertaking” substitute “PRA”;

(b)

omit subsection (4)(a).

(8)

In section 192O24 (interpretation of Part 12B – approval of certain holding companies)—

(a)

in subsection (1)—

(i)

omit the definition of “consolidated basis”;

(ii)

before the definition of “designated investment firm” insert—

““on a consolidated basis” means on the basis of the consolidated situation;

“consolidated situation” means the situation that results from an entity being treated, for the purposes of the capital requirements regulation or CRR rules (as appropriate), as if that entity and one or more other entities formed a single entity;”;

(iii)

for the definition of “sub-consolidated basis” substitute—

““on a sub-consolidated basis” means—

(a)

on the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company, excluding a sub-group of entities, or

(b)

on the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company that is not the ultimate parent institution, financial holding company or mixed financial holding company;”;

(b)

in subsection (2)(b), after “capital requirements regulation” insert “, CRR rules”.

(9)

In section 192R(3)(a) (grant of approval), after “Directive 2013/36/EU UK law” insert “, CRR rules”.

(10)

In section 192T (measures)—

(a)

in subsection (1)(b), after “Directive 2013/36/ EU UK law” insert “, CRR rules”;

(b)

in subsection (2)(c), after “Directive 2013/36/ EU UK law” insert “, in CRR rules”.