# Financial Services (Banking Reform) Act 2013

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U.K.

# Financial Services (Banking Reform) Act 2013

# 2013 CHAPTER 33

An Act to make further provision about banking and other financial services, including provision about the Financial Services                        Compensation Scheme; to make provision for the amounts owed in respect of certain deposits to be treated as a preferential                        debt on insolvency; to make further provision about payment systems and securities settlement systems; to make provision about                        the accounts of the Bank of England and its wholly owned subsidiaries; to make provision in relation to persons providing                        claims management services; and for connected purposes.                     

[18th December 2013]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons,                           in this present Parliament assembled, and by the authority of the same, as follows:—                        

## **PART 1**U.K.Ring-fencing

### Ring-fencingU.K.

#### 1Objectives of Prudential Regulation AuthorityU.K.

#### 2Modification of objectives of Financial Conduct AuthorityU.K.

#### 3Amendment of PRA power of directionU.K.

#### 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 5PRA annual reportU.K.

#### 6Ring-fencing transfer schemesU.K.

#### 7Building societies: power to make provision about ring-fencingU.K.

### ReviewsU.K.

#### 8Independent review of operation of legislation relating to ring-fencingU.K.

#### 9PRA review of proprietary tradingU.K.

#### 10Independent review of proprietary tradingU.K.

#### 11Reviews of proprietary trading: interpretationU.K.

#### 12Right to obtain documents and informationU.K.

## **PART 2**U.K.Depositor preference and the Financial Services Compensation Scheme

### Depositor preferenceU.K.

#### 13Preferential debts: Great BritainU.K.

### Financial Services Compensation SchemeU.K.

#### 14Discharge of functions by the scheme managerU.K.

#### 15Power to require information from scheme managerU.K.

#### 16Scheme manager: appointment of accounting officerU.K.

## **PART 3**U.K.Bail-in stabilisation option

### 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **PART 4**U.K.Conduct of persons working in financial services sector

### Amendments of FSMA 2000U.K.

#### 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 19Senior management functionsU.K.

#### 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 21Vetting by relevant authorised persons of candidates for approvalU.K.

#### 22Determination of applications for approvalU.K.

#### 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 24Changes in responsibilities of senior managersU.K.

#### 25Duty to notify regulator of grounds for withdrawal of approvalU.K.

#### 26Variation of approvalU.K.

#### 27Statement of policyU.K.

#### 28Extension of limitation periods for imposing sanctionsU.K.

#### 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 32Definition of “misconduct”U.K.

#### 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 34Recording information about senior managersU.K.

#### 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### OffenceU.K.

#### 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 38Institution of proceedingsU.K.

## **PART 5**U.K.Regulation of payment systems

### OverviewU.K.

#### 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### The Payment Systems RegulatorU.K.

#### 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

###  “Payment system” etcU.K.

#### 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 42Participants in payment systems etcU.K.

### Designation as a regulated payment systemU.K.

#### 43Designation ordersU.K.

#### 44Designation criteriaU.K.

#### 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 48PublicationU.K.

### General duties of RegulatorU.K.

#### 49Regulator's general duties in relation to payment systemsU.K.

#### 50The competition objectiveU.K.

#### 51The innovation objectiveU.K.

#### 52The service-user objectiveU.K.

#### 53Regulatory principlesU.K.

### Regulatory and competition functionsU.K.

#### 54DirectionsU.K.

#### 55System rulesU.K.

#### 56Power to require granting of access to payment systemsU.K.

#### 57Variation of agreements relating to payment systemsU.K.

#### 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 59The Regulator's functions under Part 4 of the Enterprise Act 2002U.K.

#### 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 62Duty to consider exercise of powers under Competition Act 1998U.K.

#### 63Provision of information and assistance to a CMA groupU.K.

#### 64Function of keeping markets under reviewU.K.

#### 65Exclusion of general dutiesU.K.

#### 66Concurrent competition powers: supplementary provisionU.K.

#### 67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### ComplaintsU.K.

#### 68Complaints by representative bodiesU.K.

#### 69Response by RegulatorU.K.

#### 70Complaints: guidanceU.K.

### Enforcement and appealsU.K.

#### 71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 72Publication of compliance failures etcU.K.

#### 73PenaltiesU.K.

#### 74Warning noticesU.K.

#### 75InjunctionsU.K.

#### 76Appeals: generalU.K.

#### 77Appeals to Competition Appeal TribunalU.K.

#### 78Appeals in relation to penaltiesU.K.

#### 79Appeals to Competition and Markets AuthorityU.K.

#### 80Enforcement of requirement to dispose of interest in payment systemU.K.

### Information and investigation powersU.K.

#### 81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Disclosure of informationU.K.

#### 91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 95Disclosure of information by Bank to RegulatorU.K.

### GuidanceU.K.

#### 96GuidanceU.K.

### ReportsU.K.

#### 97ReportsU.K.

### Relationship with other regulatorsU.K.

#### 98. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 99Memorandum of understandingU.K.

#### 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Consultation, accountability and oversightU.K.

#### 103Regulator's general duty to consultU.K.

#### 104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 105Independent inquiriesU.K.

#### 106Investigations into regulatory failureU.K.

#### 107Competition scrutinyU.K.

### Miscellaneous and supplementalU.K.

#### 108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 109Exemption from liability in damages for FCA and PRAU.K.

#### 110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **PART 6**U.K.Special administration for operators of certain infrastructure systems

### IntroductoryU.K.

#### 111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 113Interpretation: other expressionsU.K.

### FMI administration ordersU.K.

#### 114FMI administration ordersU.K.

#### 115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 116Application for FMI administration orderU.K.

#### 117Powers of courtU.K.

#### 118FMI administratorsU.K.

#### 119Continuity of supplyU.K.

#### 120Power to direct FMI administratorU.K.

#### 121. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Restrictions on other insolvency proceduresU.K.

#### 122Restriction on winding-up orders and voluntary winding upU.K.

#### 123Restriction on making of ordinary administration ordersU.K.

#### 124Restriction on enforcement of securityU.K.

### Financial support for companies in FMI administrationU.K.

#### 125LoansU.K.

#### 126IndemnitiesU.K.

### InterpretationU.K.

#### 127Interpretation of PartU.K.

Prospective

### Application of Part to Northern IrelandU.K.

#### 128Northern IrelandU.K.

## **PART 7**U.K.Miscellaneous

### CompetitionU.K.

#### 129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 130Competition as a secondary objective of the PRAU.K.

### ConsumersU.K.

#### 131Duty of FCA to make rules restricting charges for high-cost short-term creditU.K.

#### 132Role of FCA Consumer Panel in relation to PRAU.K.

### Parent undertakingsU.K.

#### 133. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Meetings with auditorsU.K.

#### 134Duty to meet auditors of certain institutionsU.K.

### Fees to meet Treasury expenditureU.K.

#### 135Fees to meet Treasury expenditure relating to international organisationsU.K.

### Parliamentary control of statutory instruments under FSMA 2000U.K.

#### 136. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Bank of EnglandU.K.

#### 137Accounts of Bank of England and its wholly-owned subsidiariesU.K.

### Building societiesU.K.

#### 138Building societiesU.K.

### Claims management servicesU.K.

#### 139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 140. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Minor amendmentsU.K.

#### 141. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **PART 8**U.K.Final provisions

### 142Orders and regulations: generalU.K.

(1)Any power of the Treasury, the Secretary of State or the Lord Chancellor to make an order or regulations under this Act is                        exercisable by statutory instrument.                  

(2)Subsection (1) does not apply to an order under section 43 (payment systems: designation orders).                  

(3)An order or regulations made by the Treasury, the Secretary of State or the Lord Chancellor under this Act may—                  

(a)make different provision for different cases, and                  

(b)contain such incidental or transitional provision as the person making the order or regulations considers appropriate.                  

### 143Orders and regulations: Parliamentary controlU.K.

(1)A statutory instrument containing an order or regulations under this Act is subject to annulment in pursuance of a resolution                        of either House of Parliament, unless—                  

(a)the instrument contains only provision made under section 148 (commencement), or                  

(b)the instrument is required by subsection (3) or any other enactment to be laid in draft before, and approved by a resolution                        of, each House.                  

(2)Subsection (3) applies to a statutory instrument that contains (with or without other provisions)—                  

(a)regulations under section 7 (building societies: power to make provision about ring-fencing);                  

(b)an order under section 41(4) (meaning of “payment system”);                  

(c)an order under section 145 (power to make further consequential amendments) that amends or repeals primary legislation;                  

(d)an order under paragraph 6 of Schedule 6 (conduct of FMI administration).                  

(3)A statutory instrument to which this subsection applies may not be made unless a draft of the instrument has been laid before,                        and approved by a resolution of, each House of Parliament.                  

(4)In subsection (2)(c) “primary legislation” means—                  

(a)an Act of Parliament,                  

(b)an Act of the Scottish Parliament,                  

(c)a Measure or Act of the National Assembly for Wales, or                  

(d)Northern Ireland legislation.                  

### 144InterpretationU.K.

In this Act—
          -  “enactment” includes—                          (a)
an enactment contained in subordinate legislation,
(b)
an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,
(c)
an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales, and
(d)
an enactment contained in, or in an instrument made under, Northern Ireland legislation;
 
          -  “the FCA” means the Financial Conduct Authority;                         
          -  “FSMA 2000” means the Financial Services and Markets Act 2000;                         
          -  “the PRA” means the Prudential Regulation Authority.                         

### 145Power to make further consequential amendmentsU.K.

(1)The Treasury, the Secretary of State or the Lord Chancellor may by order make such provision amending, repealing, revoking                        or applying with modifications any enactment to which this section applies as the person making the order considers necessary                        or expedient in consequence of any provision made by or under this Act.                  

(2)This section applies to—                  

(a)any enactment passed or made before the passing of this Act, and                  

(b)any enactment passed or made on or before the last day of the Session in which this Act is passed.                  

(3)Amendments and repeals made under this section are additional to those made by or under any other provision of this Act.                  

### 146Transitional provisions and savingsU.K.

(1)The Treasury, the Secretary of State or the Lord Chancellor may by order make such provision as the person making the order                        considers necessary or expedient for transitory, transitional or saving purposes in connection with the commencement of any                        provision made by or under this Act.                  

(2)An order under this section may—                  

(a)confer functions on the FCA or the PRA;                  

(b)modify, exclude or apply (with or without modifications) any enactment (including any provision of, or made under, this Act).                  

### 147ExtentU.K.

(1)The provisions of this Act extend to England and Wales, Scotland and Northern Ireland.                  

This is subject to subsection (2).

(2)The amendments made by the following sections have the same extent as the enactments amended—                  

(a)section 13 (preferential debts: Great Britain),                  

(b)section 139 (power to impose penalties on persons providing claims management services), and                  

(c)section 140 (recovery of expenditure incurred by Office for Legal Complaints).                  

### 148Commencement and short titleU.K.

(1)This Part comes into force on the day on which this Act is passed.                  

(2)The following provisions—                  
          -  section 131, and 
          -  section 138 and Schedule 9, apart from paragraph 4 of that Schedule, 

come into force at the end of the period of 2 months beginning with the day on which this Act is passed.

(3)Sections 139 and 140(1) to (3) come into force on such day as the Secretary of State may by order appoint.                  

(4)Section 140(4) to (6) comes into force on such day as the Lord Chancellor may by order appoint.                  

(5)The remaining provisions of this Act come into force on such day as the Treasury may by order appoint.                  

(6)Different days may be appointed for different purposes.                  

(7)This Act may be cited as the Financial Services (Banking Reform) Act 2013.                  

# SCHEDULES

 Section 6

## SCHEDULE 1U.K.Ring-fencing transfer schemes

1U.K.Part 7 of FSMA 2000 (control of business transfer schemes) is amended as follows.

2U.K.For “the authorised person concerned”, wherever occurring in Part 7 (including Schedule 12), substitute “ the transferor concerned ”.

3(1)Section 103A (meaning of “the appropriate regulator”) is amended as follows.U.K.

(2)In subsection (1), in paragraph (a), for “a scheme” substitute “ a ring-fencing transfer scheme or a scheme (other than a ring-fencing transfer scheme) ”.

(3)At the end of subsection (2) insert—

“(d)in the case of a ring-fencing transfer scheme, means the body to whose business the scheme relates.”                  

4U.K.In section 106 (banking business transfer schemes), at the end of subsection (1)(c) insert “ or a ring-fencing transfer scheme ”.

5U.K.After section 106A insert—

### “106BRing-fencing transfer scheme

6(1)Section 107 (application for order sanctioning transfer scheme) is amended as follows.U.K.

(2)In subsection (1), for “or a reclaim fund business transfer scheme” substitute “ , a reclaim fund business transfer scheme or a ring-fencing transfer scheme ”.

(3)After subsection (2) insert—

“(2A)An application relating to a ring-fencing transfer scheme may be made only with the consent of the PRA.                  

(2B)In deciding whether to give consent, the PRA must have regard to the scheme report prepared under section 109A in relation                           to the ring-fencing transfer scheme.”                  

7U.K.For the heading to section 109 substitute “ Scheme reports: insurance business transfer schemes ”.

8U.K.After section 109 insert—

### “109AScheme reports: ring-fencing transfer schemes

9(1)Section 110 (right to participate in proceedings) is amended as follows.U.K.

(2)In subsection (1), after “section 107” insert “ relating to an insurance business transfer scheme, a banking business transfer scheme or a reclaim fund business transfer                           scheme ”.

(3)After subsection (2) insert—

“(3)Subsections (4) and (5) apply where an application under section 107 relates to a ring-fencing transfer scheme.                  

(4)The following are also entitled to be heard—                  

(a)the PRA,                  

(b)where the transferee is an authorised person, the FCA, and                  

(c)any person (“P”) (including an employee of the transferor concerned or of the transferee) who alleges that P would be adversely                           affected by the carrying out of the scheme.                  

(5)P is not entitled to be heard by virtue of subsection (4)(c) unless before the hearing P has—                  

(a)filed (in Scotland, lodged) with the court a written statement of the representations that P wishes the court to consider,                           and                  

(b)served copies of the statement on the PRA and the transferor concerned.”                  

10(1)Section 111 (sanction of court for business transfer schemes) is amended as follows.U.K.

(2)In subsection (1), for “or a reclaim fund business transfer scheme” substitute “ , a reclaim fund business transfer scheme or a ring-fencing transfer scheme ”.

(3)In subsection (2), after paragraph (aa) insert—

“(ab)in the case of a ring-fencing transfer scheme, the appropriate certificates have been obtained (as to which see Part 2B of                           that Schedule);”                  

11U.K.In section 112 (effect of order sanctioning business transfer scheme), in subsection (10), after “transfer scheme” insert                        “ or ring-fencing transfer scheme ”.

12U.K.In section 112A (rights to terminate etc.), in subsection (1), for “or a banking business transfer scheme” substitute “ , a banking business transfer scheme or a ring-fencing transfer scheme ”.

13U.K.In Schedule 12 (transfer schemes: certificates) after Part 2A insert—

### **“PART 2B**U.K.Ring-fencing transfer schemes

#### Appropriate certificates

#### Certificate as to financial resources

#### Certificate as to consent of home state regulator

 Section 17

## SCHEDULE 2U.K.Bail-in stabilisation option

### **PART 1**U.K.Amendments of Banking Act 2009

1U.K.The Banking Act 2009 is amended as follows.

#### New stabilisation option: bail-inU.K.

2U.K.After section 12 insert—

##### “12ABail-in option

##### 12BBail-in administrators

3U.K.After section 8 insert—

##### “8ASpecific condition: bail-in

#### Further provision about the bail-in optionU.K.

4U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Transfers of propertyU.K.

5(1)After section 41 insert—U.K.

##### “41ATransfer of property subsequent to resolution instrument

(2)In section 42 (supplemental property transfer instruments)—

(a)in subsection (1) for “12(2)” substitute “ 12(2) or 41A(2) ”;

(b)in subsection (4) for “and 8” substitute “ , 8 and 8A ”;

(c)in subsection (6) for “or 12(2)” substitute “ , 12(2) or 41A(2) ”.

(3)After section 44 insert—

##### “44ABail in: reverse property transfer

##### 44BProperty transfer instruments: special bail-in provision

##### 44CReport on special bail-in provision

(4)In section 48A (creation of liabilities), in subsection (1), after “44(4)(c)” insert “ , 44A(3)(b) ”.

#### CompensationU.K.

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

#### GroupsU.K.

7(1)After section 81B insert—U.K.

##### “81BABail-in option

(2)After section 81C insert—

##### “81CASection 81BA: supplemental

(3)In section 81D (interpretation: “banking group company” etc)—

(a)in subsection (6), for “, 81C” substitute “ to 81CA ”;

(b)in subsection (7) for “section 81B” substitute “ sections 81B to 81CA ”.

#### Banks regulated by the Financial Conduct AuthorityU.K.

8U.K.In section 83A (modifications of Part 1 as it applies to banks not regulated by the Prudential Regulation Authority), in the                        table in subsection (2) insert the following entries at the appropriate places—

#### Recognised central counterpartiesU.K.

9U.K.In section 89B (application of Part 1 of the Act to recognised central counterparties)—

(a)in subsection (1), before paragraph (a) insert—

“(za)subsection (1A),”;                  

(b)after subsection (1) insert—

“(1A)The provisions relating to the third stabilisation option (bail-in) are to be disregarded in the application of this Part                           to recognised central counterparties.”;                  

(c)in subsection (2), in the substituted section 13(1), for “ third ” substitute “fourth”.

#### Insolvency proceedingsU.K.

10U.K.In section 120 (notice to Prudential Regulation Authority of preliminary steps to certain insolvency proceedings)—

(a)in subsection (7)(b)(ii), after “Part 1” insert “ (and Condition 5 has been met, if applicable) ”;

(b)after subsection (8) insert—

“(8A)Condition 5—                  

(a)applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with                           the date on which the PRA receives the notification under Condition 1, and                  

(b)is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which                           the notice relates going ahead.”;                  

(c)in subsection (10), omit the “and” at the end of paragraph (b), and after paragraph (c) insert “, and 

(d)if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice                           whether or not it consents to the insolvency procedure to which the notice relates going ahead.”;                  

(d)after subsection (10) insert—

“(11)References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination,                           resolution or appointment in question (see subsections (1) to (4)).”                  

#### State aidU.K.

11U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Other amendments of the ActU.K.

12(1)Section 1 (overview) is amended as follows.U.K.

(2)In subsection (2)(a), for “three” substitute “ four ”.

(3)For subsection (3) substitute—

“(3)The four “stabilisation options” are—                  

(a)transfer to a private sector purchaser (section 11),                  

(b)transfer to a bridge bank (section 12),                  

(c)the bail-in option (section 12A), and                  

(d)transfer to temporary public ownership (section 13).”                  

(4)In subsection (4)—

(a)for “three” substitute “ four ”;

(b)before paragraph (a) insert—

“(za)the resolution instrument powers (sections 12A(2) and 48U to 48W),”;                  

(c)in paragraph (b), after “33” insert “ , 41A ”.

13U.K.In section 13 (temporary public ownership), in subsection (1), for “third” substitute “ fourth ”.

14U.K.In section 17 (share transfers: effect)—

(a)in subsection (1), after “order” insert, “ or by a resolution instrument ”;

(b)in subsection (5), after “order” insert “ or a resolution instrument ”;

(c)in subsection (6), after “order” insert “ or a resolution instrument ”.

15U.K.In section 18 (share transfers: continuity), after subsection (5) insert—

“(6)This section applies to a resolution instrument as it applies to a share transfer instrument; and in relation to a resolution                           instrument references in this section to a “transfer” are to a transfer of securities (whether made by that or another resolution                           instrument) and “transferor” and “transferee” are to be read accordingly.”                  

16U.K.In section 44 (reverse property transfer)—

(a)in subsection (2), after “more” insert “ bridge bank ”;

(b)in subsection (3), after “more” insert “ bridge bank ”;

(c)in subsection (4), for “A reverse” substitute “ A bridge bank reverse ”;

(d)in subsection (4A)—

(i)after “make a” insert “ bridge bank ”, and

(ii)in paragraph (b), for “the reverse” substitute “ the bridge bank reverse ”;

(e)in subsection (5), for “a reverse” substitute “ a bridge bank reverse ”;

(f)in subsection (6), for “a reverse” substitute “ a bridge bank reverse ”;

(g)in subsection (7), for “a reverse” substitute “ a bridge bank reverse ”;

(h)in the heading, for “**Reverse**” substitute “ **Bridge bank: reverse** ”.

17U.K.In section 63 (general continuity obligation: property transfers), in subsection (1)(a), for “or 12(2)” substitute “ , 12(2) or 41A(2) ”.

18U.K.In section 66 (general continuity obligation: share transfers)—

(a)in subsection (1)(a), after “13(2)” insert “ , or which falls within subsection (1A) ”;

(b)in subsection (1)(d)(i), after “11(2)(a)” insert “ , or in a case falling within subsection (1A) ”;

(c)after subsection (1) insert—

“(1A)A bank falls within this subsection if a resolution instrument (or supplemental resolution instrument) has changed the ownership                           of the bank (wholly or partly) by providing for the transfer, cancellation or conversion from one form or class to another                           of securities issued by the bank (and the reference in subsection (1)(b) to “the transfer” includes such a cancellation or conversion).”                  

19U.K.In section 67 (special continuity obligation: share transfers), in subsection (4)(c), after “order” insert “ or resolution instrument ”.

20U.K.In section 68 (continuity obligations: onward share transfers), in subsection (1)(a), after “transferred by” insert “ a resolution instrument under section 12A(2) or supplemental resolution instrument under section 48U(2) or a ”.

21U.K.In section 71 (pensions), in subsection (1)—

(a)omit the “and” at the end of paragraph (b);

(b)after paragraph (c) insert “, and 

(d)resolution instruments.”                  

22U.K.In section 72 (enforcement), in subsection (1)—

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

(b)after paragraph (c) insert “, or 

(d)a resolution instrument.”                  

23U.K.In section 73 (disputes), in subsection (1)—

(a)omit the “and” at the end of paragraph (b);

(b)after paragraph (c) insert “, and 

(d)resolution instruments.”                  

24U.K.In section 74 (tax), in subsection (6), for “or 45” substitute “ , 45, 48U or 48V ”.

25U.K.After section 80 insert—

##### “80ATransfer for bail-in purposes: report

26U.K.In section 81A (accounting information to be included in reports under sections 80 and 81)—

(a)in subsection (1), for “or 81” substitute “ , 80A(2)(b) or 81 ”;

(b)in the heading, for “**and 81**” substitute “ **, 80A(2)(b) and 81** ”.

27U.K.In section 85 (temporary public ownership), in subsection (1), for “third” substitute “ fourth ”.

28U.K.In section 136 (overview), in the Table in subsection (3), for “152” substitute “ 152A ”.

29U.K.After section 152 insert—

##### “152AProperty transfer from transferred institution

30U.K.In section 220 (insolvency etc), after subsection (4) insert—

“(4A)The fact that ownership of an authorised bank is transferred or otherwise changed as a result of a resolution instrument (or                           an instrument treated as a resolution instrument) does not itself prevent the bank from relying on section 213.”                  

31U.K.In section 259 (statutory instruments)—

(a)in the Table in subsection (3), in Part 1, in the entry relating to section 60 for “Third party compensation” substitute “ Third party compensation: partial property transfers ”;

(b)in the Table in subsection (3), in Part 1, at the appropriate places insert—

(c)in the Table in subsection (3), in Part 3, at the appropriate place insert—

(d)in subsection (5), after paragraph (d) insert—

“(da)section 60A (special resolution regime: instruments containing special bail-in provision),”;                  

(e)in subsection (5), after paragraph (k) insert—

“(ka)section 152A (bank administration: property transfer from transferred institution),”.                  

32U.K.In section 261 (index of defined terms), in the Table, at the appropriate places insert—

### **PART 2**U.K.Modification of Investment Bank Special Administration Regulations 2011

33(1)This paragraph modifies the application of the Investment Bank Special Administration Regulations 2011 (S.I. 2011/245) (“the regulations”) in cases where a resolution instrument has been made under section 12A of the Banking Act 2009 with respect to the investment                        bank in the relevant 3-month period.U.K.

(2)In sub-paragraph (1) “the relevant 3-month period” means the 3 months ending with the date on which the FCA receives the notification under Condition 1 in regulation 8 of                        the regulations.

(3)In their application to those cases, the regulations have effect with the modifications in sub-paragraph (4); and any enactment                        that refers to the regulations is to be read accordingly.

(4)In regulation 8 (in its application to those cases)—

(a)in paragraph (5)(c)(ii), for “appropriate regulator” substitute “ Bank of England ” and after “notice” insert “ and the appropriate regulator ”;

(b)in paragraph (6), omit sub-paragraph (a) (but continue to read “that” in sub-paragraph (b) as a reference to the insolvency                        procedure to which the notice relates);

(c)after paragraph (6) insert—

“(6A)Where the FCA receives notice under Condition 1, it must also inform the Bank of England of the contents of the notice.                  

(6B)Where the Bank of England receives notice under paragraph (6A), it must, within the period in Condition 3, inform the person                           who gave the notice and the appropriate regulator whether or not it consents to the insolvency procedure to which the notice                           relates going ahead.”                  

 Section 35

## SCHEDULE 3U.K.Consequential amendments relating to Part 4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 40

## SCHEDULE 4U.K.The Payment Systems Regulator

### IntroductoryU.K.

1U.K.In this Schedule—

(a)“the Regulator” means the Payment Systems Regulator;

(b)references to the functions of the Regulator are to functions conferred on it by or under this Part.

### ConstitutionU.K.

2(1)The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator.U.K.

(2)The board is to consist of the following members—

(a)a member to chair it, appointed by the FCA with the approval of the Treasury;

(b)a member to be the Managing Director, appointed by the FCA with the approval of the Treasury;

(c)one or more other members appointed by the FCA.

(3)The persons who may be appointed under sub-paragraph (2) include persons who are members of the FCA's governing body.

(4)A person may be appointed under sub-paragraph (2) only if the person has knowledge or experience which is likely to be relevant                        to the exercise by the Regulator of its functions.

(5)A person appointed under sub-paragraph (2)(a) or (b) is liable to removal from office by the FCA (acting with the approval                        of the Treasury).

(6)A person appointed under sub-paragraph (2)(c) is liable to removal from office by the FCA.

### StatusU.K.

3(1)The Regulator is not to be regarded as exercising functions on behalf of the Crown.U.K.

(2)The officers and staff of the Regulator are not to be regarded as Crown servants.

### BudgetU.K.

4(1)The Regulator must adopt an annual budget which has been approved by the FCA.U.K.

(2)The budget must be adopted—

(a)in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and

(b)in the case of each subsequent financial year, before the start of the financial year.

(3)The Regulator may, with the approval of the FCA, vary the budget for a financial year at any time after its adoption.

(4)Before adopting or varying a budget, the Regulator must consult—

(a)the Treasury, and

(b)such other persons (if any) as the Regulator considers appropriate.

(5)The Regulator must publish each budget, and each variation of a budget, in the way it considers appropriate.

### Arrangements for discharging functionsU.K.

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Annual planU.K.

6(1)The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA.U.K.

(2)The plan must be prepared—

(a)in the case of the Regulator's first financial year, as soon as reasonably practicable after it is established, and

(b)in the case of each subsequent financial year, before the start of the financial year.

(3)The Regulator may, with the approval of the FCA, vary the plan in respect of a financial year at any time after its preparation.

(4)An annual plan in respect of a financial year must set out—

(a)the aims of the Regulator for the year,

(b)how the extent to which each of those aims is met is to be determined,

(c)the relative priorities of each of those aims, and

(d)how its resources are to be allocated among the activities to be carried on in connection with the discharge of its functions.

(5)In sub-paragraph (4) references to aims for a financial year include aims for a longer period that includes that year.

(6)Before preparing or varying an annual plan, the Regulator must consult—

(a)the Treasury, and

(b)such other persons (if any) as the Regulator considers appropriate.

(7)The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.

### Annual reportU.K.

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Audit of accountsU.K.

8(1)The Regulator must send a copy of its annual accounts to the Comptroller and Auditor General and the Treasury as soon as is                        reasonably practicable.U.K.

(2)The Comptroller and Auditor General must—

(a)examine, certify and report on accounts received under this paragraph, and

(b)send a copy of the certified accounts and the report to the Treasury.

(3)The Treasury must lay the copy of the certified accounts and the report before Parliament.

(4)The Regulator must send a copy of the certified accounts and the report to the FCA.

(5)Except as provided for by paragraph 7(5), the Regulator is exempt from the requirements of Part 16 of the Companies Act 2006                        (audit) and its balance sheet must contain a statement to that effect.

(6)In this paragraph “annual accounts” has the meaning given by section 471 of the Companies Act 2006.

### FundingU.K.

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Penalty receiptsU.K.

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### RecordsU.K.

13U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

### Exemption from liability in damagesU.K.

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Freedom of informationU.K.

15U.K.In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), at the appropriate                        place insert— “ The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013. ”

### EqualityU.K.

16U.K.In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “*Industry, business, finance etc.*”, at the appropriate place insert— “ The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013. ”

 Section 79

## SCHEDULE 5U.K.Procedure for appeals to the CMA

### Functions of CMA to be discharged by groupU.K.

1U.K.Except where specified otherwise in this Schedule, the functions of the CMA with respect to an appeal are to be carried out                        on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and                        Regulatory Reform Act 2013.

2(1)Schedule 4 to the Enterprise and Regulatory Reform Act 2013 is amended as follows.U.K.

(2)In paragraph 35(1) (membership of CMA panel), after paragraph (c) insert—

“(ca)at least one person (a “payment systems panel member”) appointed to the CMA panel under paragraph 1(1)(b) for the purpose                           of being available for selection as a member of a group constituted to carry out functions on behalf of the CMA with respect                           to an appeal made in accordance with section 79 of the Financial Services (Banking Reform) Act 2013 (a “specialist payment                           systems group”);”.                  

(3)In paragraph 38 (membership of CMA groups), after sub-paragraph (5) insert—

“(5A)In the case of a specialist payment systems group, the group must include at least one payment systems member.”                  

(4)In paragraph 48 (performance of functions of chair with respect to constitution etc of CMA group), in sub-paragraph (4)(c),                        at the end insert—

“(v)Schedule 5 to the Financial Services (Banking Reform) Act 2013.”                  

### Application for permission to bring appealU.K.

3(1)An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission.U.K.

(2)An application for permission to appeal must be accompanied by all such information as may be required by appeal rules.

(3)Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of                        truth.

(4)A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as                        the appellant.

(5)The appellant must send the Payment Systems Regulator—

(a)a copy of the application for permission to appeal at the same time as it is sent to the CMA, and

(b)such other information as may be required by appeal rules.

(6)The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA.

(7)Before the authorised member decides whether to grant permission under this paragraph, the Payment Systems Regulator must                        be given an opportunity of making representations or observations, in accordance with paragraph 5(2).

(8)The CMA's decision on an application for permission must be made—

(a)where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end                        of 10 working days beginning with the first working day after the day on which those representations or observations are received;

(b)in any other case, before the end of 14 working days beginning with the first working day after the day on which the application                        for permission was received.

(9)The grant of permission may be made subject to conditions, which may include—

(a)conditions which limit the matters that are to be considered on the appeal in question;

(b)conditions for the purpose of expediting the determination of the appeal;

(c)conditions requiring the appeal to be considered together with other appeals (including appeals relating to different matters                        or decisions and appeals brought by different persons).

(10)Where a decision is made to grant or to refuse an application for permission, an authorised member of the CMA must notify                        the decision, giving reasons, to the following persons—

(a)the appellant, and

(b)the Payment Systems Regulator.

(11)A decision of the CMA under this paragraph must be published, in such manner as an authorised member of the CMA considers                        appropriate, as soon as reasonably practicable after it is made.

(12)The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is—

(a)commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business                        interests of an undertaking to which it relates, or

(b)information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion,                        significantly harm the individual's interests.

### Suspension of decisionU.K.

4(1)The CMA may direct that, pending the determination of an appeal against a decision of the Payment Systems Regulator—U.K.

(a)the decision is not to have effect, or

(b)the decision is not to have effect to such extent as may be specified in the direction.

(2)The power to give a direction under this paragraph is exercisable only where—

(a)an application for its exercise has been made by the appellant at the same time as the appellant made an application in accordance                        with paragraph 3 for permission to bring an appeal against a decision of the Payment Systems Regulator,

(b)the Payment Systems Regulator has been given an opportunity of making representations or observations, in accordance with                        paragraph 5(2), and

(c)the balance of convenience does not otherwise require effect to be given to the decision pending that determination.

(3)The CMA's decision on an application for a direction under this paragraph must be made—

(a)where the Payment Systems Regulator makes representations or observations in accordance with paragraph 5(2), before the end                        of 10 working days beginning with the first working day after the day on which those representations or observations are received;

(b)in any other case, before the end of 14 working days beginning with the first working day following the day on which the application                        under sub-paragraph (2)(a) is received.

(4)The appellant must send the Payment Systems Regulator a copy of the application for a direction under this paragraph at the                        same time as it is sent to the CMA.

(5)The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA.

(6)A direction under this paragraph must be—

(a)given by an authorised member of the CMA, and

(b)published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after                        it is given.

(7)Sub-paragraph (12) of paragraph 3 applies to the publication of a direction under sub-paragraph (6) of this paragraph as it                        applies to the publication of a decision under sub-paragraph (11) of that paragraph.

### Time limit for representations and observations by the RegulatorU.K.

5(1)Sub-paragraph (2) applies where the Payment Systems Regulator wishes to make representations or observations to the CMA in                        relation to—U.K.

(a)an application for permission to bring an appeal under paragraph 3;

(b)an application for a direction under paragraph 4.

(2)The Payment Systems Regulator must make the representations or observations in writing before the end of 10 working days beginning                        with the first working day after the day on which it received a copy of the application under paragraph 3(5) or 4(4) (as the                        case may be).

(3)Sub-paragraph (4) applies where an application for permission to bring an appeal has been granted and the Payment Systems                        Regulator wishes to make representations or observations to the CMA in relation to—

(a)the Payment Systems Regulator's reasons for the decision in relation to which the appeal is being brought;

(b)any grounds on which that appeal is being brought against that decision.

(4)The Payment Systems Regulator must make the representations or observations in writing before the end of 15 working days beginning                        with the first working day after the day on which permission to bring the appeal was granted.

(5)The Payment Systems Regulator must send a copy of the representations and observations it makes under this paragraph to the                        appellant.

### Consideration and determination of appeal by groupU.K.

6(1)A group constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 for the purpose                        of carrying out functions of the CMA with respect to an appeal must consist of three members of the CMA panel.U.K.

(2)A decision of the group is effective if, and only if—

(a)all the members of the group are present when it is made, and

(b)at least two members of the group are in favour of the decision.

### Time limits for determining appealU.K.

7(1)The CMA must determine an appeal within the period of 6 months beginning with the permission date.U.K.

(2)If—

(a)the CMA has received representations on the timing of the determination from a party to the appeal, and

(b)it is satisfied that there are special reasons why the determination cannot be made within the period specified in sub-paragraph                        (1),

the CMA must determine the appeal within the period specified by it, which must not be longer than the period of 7 months                     beginning with the permission date.                  

(3)In a case where sub-paragraph (2) applies, the CMA must also—

(a)inform the parties to the appeal of the time limit for determining the appeal, and

(b)publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any                        other persons likely to be affected by the determination.

(4)In this paragraph the “permission date” is the date on which the CMA gave permission to bring the appeal in accordance with                        section 76(8).

### Matters to be considered on appealU.K.

8(1)The CMA, if it thinks it necessary to do so for the purpose of securing the determination of an appeal within the period provided                        for by paragraph 7, may disregard—U.K.

(a)any or all matters raised by an appellant that were not raised by that appellant at the time of the relevant application,                        and

(b)any or all matters raised by the Payment Systems Regulator that were not contained in representations or observations made                        for the purposes of the appeal in accordance with paragraph 5.

(2)In this paragraph “relevant application” means an application under paragraph 3 or 4.

### Production of documents etcU.K.

9(1)For the purposes of this Schedule, the CMA may by notice—U.K.

(a)require a person to produce to the CMA the documents specified or otherwise identified in the notice;

(b)require any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information                        as may be specified or described in the notice in relation to that business.

(2)The power to require the production of a document, or the supply of any estimate, forecast, return or other information, is                        a power to require its production or, as the case may be, supply—

(a)at the time and place specified in the notice, and

(b)in a legible form.

(3)No person is to be compelled under this paragraph to produce a document or supply an estimate, forecast, return or other information                        which the person could not be compelled to produce in civil proceedings in the High Court or Court of Session.

(4)An authorised member of the CMA may, for the purpose of the exercise of the functions of the CMA, make arrangements for copies                        to be taken of a document produced or an estimate, forecast, return or other information supplied to it under this paragraph.

(5)A notice for the purposes of this paragraph—

(a)may be issued on the CMA's behalf by an authorised member of the CMA;

(b)must include information about the possible consequences of not complying with the notice (as set out in paragraph 13).

### Oral hearingsU.K.

10(1)For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath—U.K.

(a)by a person considering an application for permission to bring an appeal under paragraph 3,

(b)by a person considering an application for a direction under paragraph 4, or

(c)by a group with the function of determining an appeal;

and, for that purpose, such a person or group may administer oaths.

(2)The CMA may by notice require a person—

(a)to attend at a time and place specified in the notice, and

(b)at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1).

(3)At any oral hearing the person or group conducting the hearing may—

(a)require the appellant or the Payment Systems Regulator, if present at the hearing, to give evidence or to make representations                        or observations, or

(b)require a person attending the hearing as a representative of the appellant or of the Payment Systems Regulator to make representations                        or observations.

(4)A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal.

(5)If the appellant, the Payment Systems Regulator, or the appellant's or Payment Systems Regulator's representative is not present                        at a hearing—

(a)there is no requirement to give notice to that person under sub-paragraph (2), and

(b)the person or group conducting the hearing may determine the application or appeal without hearing that person's evidence,                        representations or observations.

(6)No person is to be compelled under this paragraph to give evidence which the person could not be compelled to give in civil                        proceedings in the High Court or Court of Session.

(7)Where a person is required under this paragraph to attend at a place more than 10 miles from the person's place of residence,                        an authorised member of the CMA must arrange for the person to be paid the necessary expenses of attendance.

(8)A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.

### Written statementsU.K.

11(1)The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to—U.K.

(a)a person who is considering, or is to consider, an application for a direction under paragraph 4, or

(b)a group with the function of determining an appeal.

(2)The power to require the production of a written statement includes power—

(a)to specify the time and place at which it is to be produced, and

(b)to require it to be verified by a statement of truth;

and a statement required to be so verified must be disregarded unless it is so verified.

(3)No person is to be compelled under this paragraph to produce a written statement with respect to any matter about which the                        person could not be compelled to give evidence in civil proceedings in the High Court or Court of Session.

(4)A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA.

### Expert adviceU.K.

12U.K.Where permission to bring an appeal is granted under paragraph 3, the CMA may commission expert advice with respect to any                        matter raised by a party to the appeal.

### Defaults in relation to evidenceU.K.

13(1)If a person (“the defaulter”)—U.K.

(a)fails to comply with a notice issued or other requirement imposed under paragraph 9, 10 or 11,

(b)in complying with a notice under paragraph 11, makes a statement that is false in any material particular, or

(c)in providing information verified in accordance with a statement of truth required by appeal rules, provides information that                        is false in a material particular,

an authorised member of the CMA may certify that fact to the court.

(2)If the court is satisfied that the defaulter failed without reasonable excuse to comply with the notice or other requirement,                        or made the false statement, or provided the false information, it may deal with the defaulter (and in the case of a body                        corporate, any director or other officer of the body) as if that person were in contempt.

(3)In sub-paragraph (2) “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership.

(4)In this paragraph “court” means—

(a)the High Court, or

(b)in Scotland, the Court of Session.

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Determination of appeal by CMAU.K.

15(1)A determination by the CMA on an appeal—U.K.

(a)must be contained in an order made by the CMA;

(b)must set out the reasons for the determination;

(c)takes effect at the time specified in the order or determined in accordance with provision made in the order;

(d)must be notified by the CMA to the parties to the appeal;

(e)must be published by the CMA—

(i)as soon as reasonably practicable after the determination is made;

(ii)in such manner as the CMA considers appropriate for the purpose of bringing the determination to the attention of any person                        likely to be affected by it (other than a party to the appeal).

(2)The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is—

(a)commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business                        interests of an undertaking to which it relates, or

(b)information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion,                        significantly harm the individual's interests.

(3)The Payment Systems Regulator must take such steps as it considers necessary for it to comply with an order of the CMA made                        by virtue of sub-paragraph (1)(a).

(4)The steps must be taken—

(a)if a time is specified in (or is to be determined in accordance with) the order, within that time;

(b)in any other case, within a reasonable time.

### Appeal rulesU.K.

16(1)The CMA Board may make rules of procedure regulating the conduct and disposal of appeals.U.K.

(2)Those rules may include provision supplementing the provisions of this Schedule in relation to any application, notice, hearing,                        power or requirement for which this Schedule provides; and that provision may, in particular, impose time limits or other                        restrictions on—

(a)the taking of evidence at an oral hearing, or

(b)the making of representations or observations at such a hearing.

(3)The CMA Board must publish rules made under this paragraph in such manner as it considers appropriate for the purpose of bringing                        them to the attention of those likely to be affected by them.

(4)Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate.

(5)Rules under this paragraph may make different provision for different cases.

### CostsU.K.

17(1)A group that determines an appeal must make an order requiring the payment to the CMA of the costs incurred by the CMA in                        connection with the appeal.U.K.

(2)An order under sub-paragraph (1) must require those costs to be paid—

(a)where the appeal is allowed in full, by the Payment Systems Regulator;

(b)where the appeal is dismissed in full, by the appellant;

(c)where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all                        the circumstances.

(3)The group that determines an appeal may also make such order as it thinks fit for requiring a party to the appeal to make                        payments to another party in respect of costs reasonably incurred by that other party in connection with the appeal.

(4)A person who is required by an order under this paragraph to pay a sum to another person must comply with the order before                        the end of the period of 28 days beginning with the day after the making of the order.

(5)Sums required to be paid by an order under this paragraph but not paid within the period mentioned in sub-paragraph (4) are                        to bear interest at such rate as may be determined in accordance with provision contained in the order.

(6)Any costs payable by virtue of an order under this paragraph and any interest that has not been paid may be recovered as a                        civil debt by the person in whose favour the order is made.

### InterpretationU.K.

18(1)In this Schedule—U.K.
          -  “appeal” means an appeal made in accordance with section 79;                         
          -  “appeal rules” means rules of procedure under paragraph 16;                         
          -  “appellant” has the meaning given by paragraph 3(4);                         
          -  “authorised member of the CMA”—  (a)
in relation to a power exercisable in connection with an appeal in respect of which a group has been constituted by the chair                                    of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised                                    by the chair of the CMA to exercise that power;                                 
(b)
in relation to a power exercisable in connection with an application for permission to bring an appeal, or otherwise in connection                                    with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—                                 
(i)
any member of the CMA Board who is also a member of the CMA panel, or
(ii)
any member of the CMA panel authorised by the Treasury (whether generally or specifically) to exercise the power in question;
 
          -  “CMA” means the Competition and Markets Authority;                         
          -  “CMA Board” and “CMA panel” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013;                         
          -  “group” means a group selected in accordance with paragraph 6;                         
          -  “statement of truth”, in relation to the production of a statement or provision of information by a person, means a statement that the person                           believes the facts stated in the statement or information to be true;                         
          -  “working day” means any day other than—                          (a)
Saturday or Sunday;
(b)
Christmas Day or Good Friday;
(c)
a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.
 

(2)References in this Schedule to a party to an appeal are references to—

(a)the appellant, or

(b)the Payment Systems Regulator.

 Section 121

## SCHEDULE 6U.K.Conduct of FMI administration

1U.K.The following provisions of this Schedule provide for—

(a)the general powers and duties of FMI administrators (by application of provisions about administrators), and

(b)the general process and effects of FMI administration (by application of provisions about administration).

2U.K.The provisions set out in the Tables apply in relation to FMI administration as in relation to administration, with—

(a)the modifications set out in paragraph 3,

(b)any other modification specified in the Tables, and

(c)any other necessary modification.

3U.K.The modifications are that—

(a)a reference to the administrator is a reference to the FMI administrator,

(b)a reference to administration is a reference to FMI administration,

(c)a reference to an administration application is a reference to an FMI administration application,

(d)a reference to an administration order is a reference to an FMI administration order,

(e)[F20except where otherwise specified in Table 2,] a reference to a company is a reference to the infrastructure company, and

(f)a reference to the purpose of administration (other than the reference in paragraph 111(1) of Schedule B1) is a reference                        to the objective in section 115.

4U.K.Powers conferred by this Part of this Act and by the 1986 Act (as applied) are in addition to, and not in restriction of,                        any existing powers of instituting proceedings against any contributory or debtor of an infrastructure company, or the estate                        of any contributory or debtor, for the recovery of any call or other sum.

5U.K.A reference in an enactment or other document to anything done under a provision applied by this Part of this Act includes                        a reference to the provision as applied.

### TABLE 1 OF APPLIED PROVISIONS

### SCHEDULE B1 TO THE INSOLVENCY ACT 1986

### TABLE 2 OF APPLIED PROVISIONS

### OTHER PROVISIONS OF THE INSOLVENCY ACT 1986

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

 Section 121

## SCHEDULE 7U.K.Financial market infrastructure transfer schemes

### Application of ScheduleU.K.

1U.K.This Schedule applies where—

(a)the court has made an FMI administration order in relation to a company (“the old company”), and

(b)it is proposed that a transfer within section 115(5) be made to another company (“the new company”).

### Interpretation of ScheduleU.K.

2U.K.In this Schedule—
          -  “FMI transfer scheme” has the meaning given by paragraph 4(1);                         
          -  “the new company” and “the old company” are to be read in accordance with paragraph 1; 
          -  “third party”, in relation to an FMI transfer scheme or a modification of such a scheme, means a person other than the old company or                           the new company.                         

### FMI administrator to act on behalf of old companyU.K.

3U.K.It is for the FMI administrator, while the FMI administration order is in force, to act on behalf of the old company in the                        doing of anything that it is authorised or required to do by or under this Schedule.

### Making of FMI transfer schemesU.K.

4(1)The old company may—U.K.

(a)with the consent of the new company, and

(b)for the purpose of giving effect to the proposed transfer,

make a scheme under this Schedule for the transfer of property, rights and liabilities from the old company to the new company                     (an “FMI transfer scheme”).                  

(2)Such a scheme may be made only at a time when the FMI administration order is in force in relation to the old company.

(3)An FMI transfer scheme may set out the property, rights and liabilities to be transferred in one or more of the following                        ways—

(a)by specifying or describing them in particular,

(b)by identifying them generally by reference to, or to a specified part of, the undertaking of the old company, or

(c)by specifying the manner in which they are to be determined.

(4)An FMI transfer scheme is to take effect in accordance with paragraph 7 at the time appointed by the court.

(5)But the court must not appoint a time for a scheme to take effect unless that scheme has been approved by the Bank of England.

(6)The Bank of England may modify an FMI transfer scheme before approving it, but only modifications to which both the old company                        and the new company have consented may be made.

(7)In deciding whether to approve an FMI transfer scheme, the Bank of England must have regard, in particular, to—

(a)the public interest, and

(b)any effect that the scheme is likely to have on the interests of third parties.

(8)Before approving an FMI transfer scheme, the Bank of England must consult the Treasury.

(9)The old company and the new company each have a duty to provide the Bank of England with all information and other assistance                        that the Bank may reasonably require for the purposes of, or in connection with, the exercise of the powers conferred on it                        by this paragraph.

### Provision that may be made by a schemeU.K.

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

### Further provision about transfersU.K.

6(1)An FMI transfer scheme may make incidental, supplemental, consequential and transitional provision in connection with the                        other provisions of the scheme.U.K.

(2)An FMI transfer scheme may in particular make provision, in relation to a provision of the scheme—

(a)for the new company to be treated as the same person in law as the old company;

(b)for agreements made, transactions effected or other things done by or in relation to the old company to be treated, so far                        as may be necessary for the purposes of or in connection with a transfer in accordance with the scheme, as made, effected                        or done by or in relation to the new company;

(c)for references in an agreement, instrument or other document to the old company or to an employee or office holder with the                        old company to have effect, so far as may be necessary for the purposes of or in connection with a transfer in accordance                        with the scheme, with such modifications as are specified in the scheme;

(d)that the effect of any transfer in accordance with the scheme in relation to contracts of employment with the old company                        is not to terminate any of those contracts but is to be that periods of employment with that company are to count for all                        purposes as periods of employment with the new company;

(e)for proceedings commenced by or against the old company to be continued by or against the new company.

(3)Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.

(4)An FMI transfer scheme may make provision for disputes between the old company and the new company as to the effect of the                        scheme to be referred to such arbitration as may be specified in or determined under the scheme.

(5)Where a person is entitled, in consequence of an FMI transfer scheme, to possession of a document relating in part to the                        title to land or other property in England and Wales, or to the management of such land or other property—

(a)the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right                        of that other person to production of the document and to delivery of copies of it, and

(b)section 64 of the Law of Property Act 1925 (production and safe custody of documents) is to have effect accordingly, and on                        the basis that the acknowledgement did not contain an expression of contrary intention.

(6)Where a person is entitled, in consequence of an FMI transfer scheme, to possession of a document relating in part to the                        title to land or other property in Scotland or to the management of such land or other property, subsections (1) and (2) of                        section 16 of the Land Registration (Scotland) Act 1979 (omission of certain clauses in deeds) is to have effect in relation                        to the transfer—

(a)as if the transfer had been effected by deed, and

(b)as if the words “unless specially qualified” were omitted from each of those subsections.

(7)Where a person is entitled, in consequence of an FMI transfer scheme, to possession of a document relating in part to the                        title to land or other property in Northern Ireland or to the management of such land or other property—

(a)the scheme may provide for that person to be treated as having given another person an acknowledgement in writing of the right                        of that other person to production of the document and to delivery of copies of it, and

(b)section 9 of the Conveyancing Act 1881 is to have effect accordingly, and on the basis that the acknowledgement does not contain                        an expression of contrary intention.

(8)In this paragraph references to a transfer in accordance with an FMI transfer scheme include references to the creation in                        accordance with such a scheme of an interest, right or liability.

### Effect of schemeU.K.

7(1)In relation to each provision of an FMI transfer scheme for the transfer of property, rights or liabilities, or for the creation                        of interests, rights or liabilities—U.K.

(a)the property, interests, rights or liabilities become by virtue of this Schedule the property, interests, rights or liabilities                        of the transferee at the time appointed by the court for the purposes of paragraph 4(4), and

(b)the provisions of that scheme in relation to that property, or those interests, rights or liabilities, have effect from that                        time.

(2)In this paragraph “the transferee” means—

(a)in relation to property, rights or liabilities transferred by an FMI transfer scheme, the new company;

(b)in relation to interests, rights or liabilities created by such a scheme, the person in whose favour, or in relation to whom,                        they are created.

### Subsequent modification of schemeU.K.

8(1)The Bank of England may by notice to the old company and the new company modify an FMI transfer scheme after it has taken                        effect, but only modifications to which both the old company and the new company have consented may be made.U.K.

(2)The notice must specify the time at which it is to take effect (the “modification time”).

(3)Where a notice is issued under this paragraph in relation to an FMI transfer scheme, as from the modification time, the scheme                        is for all purposes to be treated as having taken effect, at the time appointed for the purposes of paragraph 4(4), with the                        modifications made by the notice.

(4)Those modifications may make—

(a)any provision that could have been included in the scheme when it took effect at the time appointed for the purposes of paragraph                        4(4), and

(aa)transitional provision in connection with provision falling within paragraph (a).

(5)In deciding whether to modify an FMI transfer scheme, the Bank of England must have regard, in particular, to—

(a)the public interest, and

(b)any effect that the modification is likely to have on the interests of third parties.

(6)Before modifying an FMI transfer scheme that has taken effect, the Bank of England must consult the Treasury.

(7)The old company and the new company each have a duty to provide the Bank of England with all information and other assistance                        that the Bank may reasonably require for the purposes of, or in connection with, the exercise of the powers conferred on it                        by this paragraph.

### Provision relating to foreign propertyU.K.

9(1)An FMI transfer scheme may contain provision about—U.K.

(a)the transfer of foreign property, right and liabilities, and

(b)the creation of foreign property, rights and liabilities.

(2)For this purpose property, or a right, interest or liability, is “foreign” if an issue relating to it arising in any proceedings                        would (in accordance with the rules of private international law) be determined under the law of a country or territory outside                        the United Kingdom.

### Application of Schedule to transfers to subsidiariesU.K.

10U.K.Where a proposed transfer falling within subsection (5) of section 115 is a transfer of the kind mentioned in subsection (6)(a)                        of that section, this Schedule has effect in relation to the transfer as if—

(a)paragraph 4(1)(a) were omitted, and

(b)in paragraph 4(6), for the words from “both” onwards there were substituted “ the old company has consented may be made ”.

 Section 129

## SCHEDULE 8U.K.Functions of FCA under competition legislation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 138

## SCHEDULE 9U.K.Building societies

### IntroductoryU.K.

1U.K.The Building Societies Act 1986 is amended as follows.

### Exclusion of small business deposits from funding limitU.K.

2(1)Section 7 (the funding limit) is amended as follows.U.K.

(2)In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—

“(aa)subject to subsection (3A), the principal of, and interest accrued on, sums deposited with the society or any subsidiary undertaking                           of the society by a small business (see subsection (10));”.                  

(3)After subsection (3) insert—

“(3A)In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation                           to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in                           the absence of subsection (3)(aa), be the value of X on that day.”                  

(4)After subsection (6) insert—

“(6ZA)Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively                           presumed for the purposes of this section to be a small business.”                  

(5)After subsection (9) insert—

“(10)In this section “small business” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant                           financial year of less than £1,000,000.                  

(11)For the purposes of subsection (10)—                  

(a)the “relevant financial year”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in                           relation to a building society, means the last financial year ending before that day;                  

(b)“turnover”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's                           ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;                  

(c)in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency,                           calculated as at the last day of that year.                  

(12)The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10)                           and (11)(c).                  

(13)A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either                           House of Parliament.”                  

3(1)In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits                        Calculation) Order 2007 (S.I. 2007/860), in paragraph 3, for “the modification required by this article” substitute “ the modifications required by this article and by section 7(3)(aa) ”.U.K.

(2)The amendment by this paragraph of a provision contained in subordinate legislation is without prejudice to any power to amend                        that provision by subordinate legislation.

### Ability to create floating chargesU.K.

4(1)Omit section 9B (restriction on creation of floating charges).U.K.

(2)In Schedule 15A (application of other companies insolvency legislation to building societies), omit the following paragraphs—

(a)paragraph 18 (which modifies section 15 of the Insolvency Act 1986);

(b)paragraph 20 (which modifies section 19 of that Act);

(c)paragraph 40 (which modifies Article 28 of the Insolvency (Northern Ireland) Order 1989);

(d)paragraph 42 (which modifies Article 31 of that Order).

(3)In consequence of the amendment made by sub-paragraph (1)—

(a)in section 1(1A)(b), for “, 9A and 9B” substitute “ and 9A ”;

(b)in the Building Societies Act 1997, omit section 11;

(c)in section 11(3) of the Banking (Special Provisions) Act 2008, for paragraph (c) substitute—

“(c)sections 8 and 9A of the Building Societies Act 1986 (restrictions on raising funds and borrowing and on transactions involving                           derivative instruments etc);”;                  

(d)in section 251 of the Banking Act 2009, omit subsection (7);

(e)in the Financial Services Act 2012, omit section 55.

### Annual business statementsU.K.

5(1)Section 74 (duty of directors to prepare annual business statement) is amended as follows.U.K.

(2)In subsection (4), omit the words from “and other officers” to “them”.

(3)In subsection (8), omit “or other officer”.

### Summary financial statementsU.K.

6(1)Section 76 (summary financial statement for members and depositors) is amended as follows.U.K.

(2)After subsection (8A) insert—

“(8AA)The society shall also—                  

(a)publish the summary financial statement and (where applicable) the auditor's report on a web site, and                  

(b)ensure that the statement and (where applicable) the report may be accessed on the web site until the publication of the next                           summary financial statement.”                  

(3)After subsection (8D) insert—

“(8E)If, at any time during the period beginning with the publication of the summary financial statement and ending with the publication                           of the next summary financial statement, an individual for the first time subscribes for shares in the society, the society                           shall at that time notify the individual of the information in subsection (8C)(c)(i) to (iii).                  

(8F)In a case where subsection (8E) applies, the society is not required under section 115B (right to hard copy version) to send                           the individual a version of the summary financial statement or (where applicable) the auditor's report in hard copy form (within                           the meaning of that section).”                  

(4)Omit subsections (9) to (9E).

(5)In subsection (11), for “subsection (9)” substitute “ subsection (8AA) or (8E) ”.

7U.K.In consequence of the amendments made by paragraph 6—

(a)in section 78(6), for “subsections (8) and (9) of section 76 extend” substitute “ subsection (8) of section 76 extends ”;

(b)in paragraphs 7(3) and 8(3) of Schedule 2, omit “the summary financial statement,”.

### Transfers of business: distributions and share rightsU.K.

8(1)Section 100 (regulated terms etc: distributions and share rights) is amended as follows.U.K.

(2)For subsection (8) substitute—

“(8)The terms of a transfer of a society's business may confer a right to acquire shares in the successor on a member of the society                           only if the member—                  

(a)held shares in the society throughout the period of two years ending with the qualifying day, or                  

(b)on that day, holds deferred shares in the society that are of a class described in the transfer agreement;                  

and it is unlawful for any right in relation to shares to be conferred in contravention of this subsection.”                  

(3)In subsection (9), for the words from “who” to “and” substitute

“who—                  

(a)held shares in the society throughout the period of two years ending with the qualifying day, or                  

(b)on that day, hold deferred shares in the society that are of a class described in the transfer agreement;                  

and”.                  

### Methods of communicating with members etcU.K.

9U.K.After section 115 insert—

#### “115ADeemed agreement to use of web site

#### 115BRight to hard copy version

#### 115COther agreed forms of communication

10U.K.In the following provisions, omit “, in a manner agreed between him and the society,”—
          -  section 60(7B)(c), 
          -  section 61(7D)(c), 
          -  section 68(6B)(c), 
          -  section 69(15B)(c), 
          -  section 76(8C)(c). 

11U.K.In section 81(3B)(c), omit “, in a manner agreed for the purpose between him and the society,”.

12(1)Schedule 2 is amended as follows.U.K.

(2)In paragraph 20A(1B)(c), omit “, in a manner agreed between him and the society,”.

(3)In paragraphs 22B(2)(c) and 33(5C)(c), omit “, in a manner agreed between him and the society for that purpose,”.

(4)In paragraph 24(1B)(b), omit “in a manner agreed between the society and that member,”.

(5)In paragraph 32(2D)(c), omit “, in a manner agreed between the society and the member,”.

(6)In paragraph 33A(9)(c), omit “, in a manner agreed for the purpose between him and the society”.

13U.K.In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in a manner agreed between the society and that person,”.

14(1)Schedule 11 is amended as follows.U.K.

(2)In paragraph 4(9C)(c), omit “, in a manner agreed between him and the society,”.

(3)In paragraph 7(7C)(c), for “in a manner agreed between the society and that person, he” substitute “ the person ”.

(4)In paragraph 8(3B)(c), omit “, in a manner agreed between him and the society for the purpose,”.

### Financial yearU.K.

15(1)Section 117 (financial year of building societies) is amended as follows.U.K.

(2)For subsection (1) substitute—

“(1)A building society's financial years (apart from its final financial year) are determined according to its year-end date in                           each calendar year.                  

For provision about a building society's final financial year, see subsection (1G).                  

(1A)The year-end date of a building society established before 25th August 1894 is—                  

(a)the date up to which, as at 1st January 1987, the accounts of the society were annually made up, or                  

(b)if the society has, at any time before the day on which subsection (1) comes into force (“the relevant day”), altered its financial year in exercise of a power within subsection (1B), 31st December.                  

(1B)The powers referred to in subsection (1A)(b) are—                  

(a)the power conferred by section 70(2) of the Building Societies Act 1960,                  

(b)the power conferred by section 128(2) of the Building Societies Act 1962, and                  

(c)the power conferred by subsection (3) of this section (as it had effect immediately before the relevant day).                  

(1C)The year-end date of a building society established on or after 25th August 1894 and before the relevant day is 31st December.                  

(1D)The year-end date of a building society established on or after the relevant day is the last day of the month in which the                           anniversary of its establishment falls.                  

(1E)The financial year of a building society established before the relevant day is the period of 12 months ending with the year-end                           date of the society (but see subsection (1G)).                  

(1F)In the case of a building society established on or after the relevant day—                  

(a)the initial financial year of the society shall be the period of more than 6 months, but not more than 18 months, beginning                           with the date of its establishment and ending with its year-end date, and                  

(b)its subsequent financial years are successive periods of 12 months beginning immediately after the end of the previous financial                           year and ending with its year-end date (but see subsection (1G)).                  

(1G)The final financial year of a building society is a period of less than 12 months that begins immediately after the end of                           the previous financial year and ends with the date as at which the society makes up its final accounts.                  

(1H)This section has effect subject to section 117A (alteration of financial year).”                  

(3)Omit subsections (2) and (3).

16U.K.After section 117 insert—

#### “117AAlteration of financial year

17U.K.In Schedule 20 (transitional and saving provisions), omit paragraph 16 (existing financial years).

18U.K.The amendments made by paragraphs 15 to 17 have effect in relation to financial years beginning on or after the day on which                        those amendments come into force.

 Section 141

## SCHEDULE 10U.K.Minor amendments

### Companies Act 1985U.K.

1U.K.In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.

### Financial Services and Markets Act 2000U.K.

2U.K.In section 376 of FSMA 2000 (continuation of contracts of long-term insurance where insurer in liquidation), in subsection                        (11B), for “PRA-authorised” substitute “ PRA-regulated ”.

3(1)Part 25 of FSMA 2000 (injunctions and restitution) is amended as follows.U.K.

(2)In section 380 (injunctions), in subsection (6)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph                        (iii) insert “or 

(iv)which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention                           constitutes an offence under that Part;”.                  

(3)In section 382 (restitution orders), in subsection (9)(a), omit the “or” at the end of sub-paragraph (ii) and after sub-paragraph                        (iii) insert “or 

(iv)which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and whose contravention                           constitutes an offence under that Part;”.                  

(4)In section 384 (power of FCA or PRA to require restitution), in subsection (7), omit the “and” at the end of paragraph (b)                        and after paragraph (c) insert “or 

(d)a requirement which is imposed by Part 7 of the Financial Services Act 2012 (offences relating to financial services) and                           whose contravention constitutes an offence under that Part.”                  

4(1)In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows.U.K.

(2)In sub-paragraph (3)(b), after “this Act” insert “ or under a provision mentioned in sub-paragraph (4A) ”.

(3)In sub-paragraph (4), after paragraph (c) insert—

“(ca)its powers under the relevant competition provisions (as applied by Part 16A of this Act),”.                  

(4)After sub-paragraph (4) insert—

“(4A)The relevant competition provisions” are—                  

(a)section 31E of the Competition Act 1998 (enforcement of commitments);                  

(b)section 34 of that Act (enforcement of directions);                  

(c)section 36 of that Act (penalties);                  

(d)section 40A of that Act (penalties: failure to comply with requirements);                  

(e)section 174A of the Enterprise Act 2002 (penalties).”                  

(5)In sub-paragraph (5)—

(a)in paragraph (a), for “FSMA 2000” substitute “ this Act ”,

(b)in paragraph (b), for “that Act” substitute “ this Act ”,

(c)in paragraph (c), omit “of that Act”, and

(d)after paragraph (c) insert—

“(ca)offences under Part 1 of the Competition Act 1998,                  

(cb)offences under Part 4 of the Enterprise Act 2002,”.                  

5U.K.In Schedule 17A to FSMA 2000 (further provision in relation to exercise of Part 18 functions by Bank of England), in paragraph                        10(1)(j), for “subsections (1) and (3)” substitute “ subsection (1) ”.

### Income Tax Act 2007U.K.

6U.K.In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute “ Part 4A ”.

### Banking Act 2009U.K.

7U.K.In section 89B of the Banking Act 2009 (application to recognised central counterparties), in the Table in subsection (6),                        in the entry relating to section 81B, in the second column, after the modification of subsection (1) of that section insert—

8U.K.In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert “ payment ”.

### Financial Services Act 2012U.K.

9U.K.In section 73 of the Financial Services Act 2012 (duty of FCA to investigate and report on possible regulatory failure), in                        subsection (1)(b)(i)—

(a)for “their activities,” substitute “ of the carrying on of regulated activities, ”, and

(b)for “or for the regulation of collective investment schemes” substitute “ , for the regulation of collective investment schemes or for the regulation of recognised investment exchanges, ”.

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.