Source: http://www.legislation.gov.uk/ukpga/2013/33/schedules/enacted
Timestamp: 2018-06-25 18:10:04
Document Index: 443189934

Matched Legal Cases: ['art 7', 'art 7', 'art 2', 'ART 2', 'ART 2', 'art.\n2', 'art 16', 'art 6', 'art 1', 'art 25', 'art 4', 'art 4']

SCHEDULE 1Ring-fencing transfer schemes
1Part 7 of FSMA 2000 (control of business transfer schemes) is amended as follows.
2For “the authorised person concerned”, wherever occurring in Part 7 (including Schedule 12), substitute “the transferor concerned”.
4In section 106 (banking business transfer schemes), at the end of subsection (1)(c) insert “or a ring-fencing transfer scheme”.
5After section 106A insert—
(d)making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the transferee becoming a ring-fenced body while one or more other members of the transferee’s group are not ring-fenced bodies.
6(1)Section 107 (application for order sanctioning transfer scheme) is amended as follows.
7For the heading to section 109 substitute “Scheme reports: insurance business transfer schemes”.
8After section 109 insert—
9(1)Section 110 (right to participate in proceedings) is amended as follows.
(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”.
12In 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”.
13In Schedule 12 (transfer schemes: certificates) after Part 2A insert—
“PART 2BRing-fencing transfer schemes
9BAppropriate certificates
(1)For the purposes of section 111(2) the appropriate certificates, in relation to a ring-fencing transfer scheme, are—
9CCertificate as to financial resources
(1)A certificate under this paragraph is one given by the relevant authority and certifying that, taking the proposed transfer into account, the transferee possesses, or will possess before the scheme takes effect, adequate financial resources.
(c)if the transferee does not fall within paragraph (a) or (b) but is subject to regulation in a country or territory outside the United Kingdom, the authority responsible for the supervision of the transferee’s business in the place in which the transferee has its head office;
9DCertificate as to consent of home state regulator
A certificate under this paragraph is one given by the appropriate regulator and certifying that the home state regulator of the transferee has been notified of the proposed scheme and that—
SCHEDULE 2Bail-in stabilisation option
PART 2Modification 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.
(a)in paragraph (5)(c)(ii), for “appropriate regulator” substitute “Bank of England” and after “notice” insert “and the appropriate regulator”;
SCHEDULE 4The Payment Systems Regulator
(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.
2(1)The constitution of the Regulator must provide for it to have a board whose members are the directors of the Regulator.
(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.
3(1)The Regulator is not to be regarded as exercising functions on behalf of the Crown.
(2)The officers and staff of the Regulator are not to be regarded as Crown servants.
6(1)The Regulator must in respect of each of its financial years prepare an annual plan which has been approved by the FCA.
(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.
(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—
(7)The Regulator must publish each annual plan, and each variation of an annual plan, in the way it considers appropriate.
7(1)At least once a year, the Regulator must make a report to the FCA in relation to the discharge of its functions.
(a)set out the extent to which the Regulator has met its aims and priorities for the period covered by the report,
(b)set out the extent to which the Regulator has advanced its payment systems objectives,
(c)include a copy of its latest accounts, and
(d)comply with any requirement specified in rules made by the FCA.
(3)The Regulator must publish each report in the way it considers appropriate.
(4)Nothing in this paragraph requires the Regulator to make a report at any time in the period of 12 months beginning with its establishment.
(5)The Treasury may—
(a)require the Regulator to comply with any provision of the Companies Act 2006 about accounts and their audit which would not otherwise apply to it, or
(b)direct that any provision of that Act about accounts and their audit is to apply to the Regulator with such modifications as are specified in the direction, whether or not the provision would otherwise apply to it.
(7)Proceedings under sub-paragraph (6) may be brought only by the Treasury.
(8)The FCA’s power to make rules under sub-paragraph (2)(d) is to be treated as if it were a power of the FCA to make rules under FSMA 2000 (and rules made under sub-paragraph (2)(d) are to be treated accordingly).
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.
(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.
10(1)The Regulator must in respect of each of its financial years pay to the Treasury its penalty receipts after deducting its enforcement costs.
(2)The Regulator’s “penalty receipts” in respect of a financial year are any amounts received by it during the year by way of penalties imposed under section 73.
(3)The Regulator’s “enforcement costs” in respect of a financial year are the expenses incurred by it during the year in connection with—
(b)the recovery of penalties imposed under section 73.
(4)For the purposes of sub-paragraph (3) the Regulator’s enforcement powers are—
(a)its powers under sections 72 to 75;
(b)its powers under any other enactment specified by the Treasury by order;
(c)its powers in relation to the investigation of relevant offences;
(5)In sub-paragraph (4) “relevant offences” means—
(a)offences under this Part;
(b)any other offences specified by the Treasury by order.
(6)The Treasury may give directions to the Regulator as to how it is to comply with its duty under sub-paragraph (1).
(b)relate to the calculation and timing of the deduction in respect of the Regulator’s enforcement costs, and
(8)The directions may also require the Regulator to provide the Treasury at specified times with specified information relating to—
(a)penalties that the Regulator has imposed under section 73, or
(b)the Regulator’s enforcement costs.
11(1)The Regulator must prepare and operate a scheme (“the financial penalty scheme”) for ensuring that the amounts that, as a result of the deduction for which paragraph 10(1) provides, are retained by the Regulator in respect of amounts paid to it by way of penalties imposed under section 73 are applied for the benefit of participants in regulated payment systems.
(2)The financial penalty scheme may, in particular, make different provision with respect to different classes of participant.
(3)The financial penalty scheme must ensure that those who have become liable to pay a penalty to the Regulator in any financial year do not receive any benefit under the scheme in the following financial year.
(4)Up-to-date details of the financial penalty scheme must be set out in a document (the “scheme details”).
15In 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.”
16In 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—
SCHEDULE 7Financial market infrastructure transfer schemes
“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 company
3It 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 schemes
4(1)The old company may—
(a)with the consent of the new company, and
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
(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.
5(1)An FMI transfer scheme may contain provision—
(a)for the creation, in favour of the old company or the new company, of an interest or right in or in relation to property transferred in accordance with the scheme;
(b)for giving effect to a transfer to the new company by the creation, in favour of that company, of an interest or right in or in relation to property retained by the old company;
(c)for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between the old company and the new company;
(2)The property, rights and liabilities of the old company that may be transferred in accordance with an FMI transfer scheme include—
(a)property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the old company;
(e)rights and liabilities under the law of a part of the United Kingdom or of a place outside the United Kingdom;
(f)rights and liabilities under an enactment, EU instrument or subordinate legislation.
(3)The transfers to which effect may be given by an FMI transfer scheme include transfers of interests and rights that are to take effect in accordance with the scheme as if there were—
(4)A provision falls within this sub-paragraph to the extent that it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the old company is entitled, or subject, to anything to which the transfer relates.
(5)Sub-paragraph (6) applies where (apart from that sub-paragraph) a person would be entitled, in consequence of anything done or likely to be done by or under this Act in connection with an FMI transfer scheme—
(a)to terminate, modify, acquire or claim an interest or right, or
(6)That entitlement—
(a)is not enforceable in relation to that interest or right until after the transfer of the interest or right by the scheme, and
(b)is then enforceable in relation to the interest or right only in so far as the scheme contains provision for the interest or right to be transferred subject to whatever confers that entitlement.
(7)Sub-paragraphs (3) to (6) have effect where shares in a subsidiary of the old company are transferred—
(a)as if the reference in sub-paragraph (4) to the terms on which the old company is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect, and
(8)Sub-paragraphs (3) and (4) apply to the creation of an interest or right by an FMI transfer scheme as they apply to the transfer of an interest or right.
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—
(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.
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.
(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—
(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 property
9(1)An FMI transfer scheme may contain provision about—
(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.
10Where 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”.
SCHEDULE 8Functions of FCA under competition legislation
5In section 348 of FSMA 2000 (restrictions on disclosure of confidential information by FCA, PRA etc), after subsection (6) insert—
6In section 354A of FSMA 2000 (FCA’s duty to co-operate with others), after subsection (2) insert—
7(1)Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority) is amended as follows.
8In section 9E of the Company Directors Disqualification Act 1986 (interpretation of sections 9A to 9D), in subsection (2), after paragraph (g) insert—
9In section 54 of the Competition Act 1998 (regulators), in subsection (1), after paragraph (i) insert—
10(1)Section 136 of the Enterprise Act 2002 (investigations and reports on market investigation references) is amended as follows.
(3)In subsection (8), after “the Office of Rail Regulation,” insert “the Financial Conduct Authority,”.
12In Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (the Competition and Markets Authority), in paragraph 16 (concurrency report), at the end of sub-paragraph (7) insert—
SCHEDULE 10Minor amendments
1In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.
2In 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.
4(1)In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority), paragraph 20 (penalties) is amended as follows.
(2)In sub-paragraph (3)(b), after “this Act” insert “or under a provision mentioned in sub-paragraph (4A)”.
(a)in paragraph (a), for “FSMA 2000” substitute “this Act”,
(b)in paragraph (b), for “that Act” substitute “this Act”,
6In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections (2)(b) and (3), for “Part 4” substitute “Part 4A”.
8In section 191 of the Banking Act 2009 (directions), in subsection (1), after “inter-bank” insert “payment”.
9In 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(1)Section 85 of the Financial Services Act 2012 (relevant functions in relation to complaints scheme) is amended as follows.
“(2)The relevant functions of the FCA or the PRA are—
(b)such other functions as the Treasury may by order provide.”
“(3)The relevant functions of the Bank of England are—
(4)In subsections (4) and (5), for “subsection (2)” substitute “subsection (2)(a)”.
(5)In subsections (6) and (7), for “subsection (3)” substitute “subsection (3)(a)”.
“(8)For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA 2000 do not apply.”