Source: http://www.legislation.gov.uk/ukpga/2000/8/part/9A/2015-07-01
Timestamp: 2019-07-21 22:26:00
Document Index: 367397805

Matched Legal Cases: ['ART 9', 'art 2', 'art. 29', 'art. 27', 'art. 15', 'art. 37', 'art. 18', 'art. 20', 'art. 9', 'art 20', 'art. 27', 'art. 37', 'art. 18', 'art. 29', 'art. 15', 'art. 20', 'art. 9', 'art. 1', 'art. 1', 'art. 1', 'art 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 2', 'art. 29', 'art. 20', 'art. 15', 'art. 27', 'art. 18', 'art. 37', 'art. 9', 'art. 20', 'art. 15', 'art. 18', 'art. 37', 'art. 27', 'art. 9', 'art. 29', 'art. 2', 'art. 12', 'art. 12', 'art. 61', 'art. 4', 'art. 61', 'art. 1', 'art. 4', 'art. 5', 'art. 4', 'art. 19', 'art. 21', 'art. 30', 'art. 38', 'art. 28', 'art. 16', 'art. 10', 'art. 16', 'art. 28', 'art. 21', 'art. 19', 'art. 30', 'art. 10', 'art. 38', 'art. 1', 'art. 4', 'art. 12', 'art. 1', 'art. 2', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art 9', 'art 9', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3', 'art. 1', 'art. 3']

Changes over time for: PART 9A
Version Superseded: 21/09/2015
CHAPTER 1U.K.Rule-making powers
General rule-making powers of the FCA and the PRAU.K.
137AThe FCA's general rulesU.K.
(1)The FCA may make such rules applying to authorised persons—
(a)with respect to the carrying on by them of regulated activities, or
(b)with respect to the carrying on by them of activities which are not regulated activities,
(2)Rules made under this section are referred to in this Act as the FCA's general rules.
(3)The FCA's general rules may make provision applying to authorised persons even though there is no relationship between the authorised persons to whom the rules will apply and the persons whose interests will be protected by the rules.
(4)The FCA's general rules may contain requirements which take into account, in the case of an authorised person who is a member of a group, any activity of another member of the group.
(5)The FCA's general rules may not—
(a)make provision prohibiting an EEA firm from carrying on, or holding itself out as carrying on, any activity which it has permission conferred by Part 2 of Schedule 3 to carry on in the United Kingdom;
(b)make provision, as respects an EEA firm, about any matter for which responsibility is, under any of the single market directives or the emission allowance auctioning regulation, reserved to the firm's home state regulator.
C1S. 137A modified by S.I. 2008/2674, art. 29(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 149(b)(i))
C2S. 137A modified by S.I. 2008/2644, art. 27(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 147(b)(i))
C3S. 137A modified by S.I. 2008/432, art. 15(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 136(d)(i))
C4S. 137A modified by S.I. 2008/2546, art. 37(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 146(c)(i))
C5S. 137A modified by S.I. 2008/2666, art. 18(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 148(b)(i))
C6S. 137A power to make rules modified by S.I. 2002/1775, reg. 3(1)(4) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 77(4)(a)
C7S. 137A(1) modified by S.I. 2009/3226, art. 20(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 182(a)(i))
C8S. 137A(1) modified by S.I. 2009/814, art. 9(1) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 167(b)(i))
C9S. 137A(3)(4) modified by S.I. 2002/1775, reg. 3(2)(a) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 77(4)(b)
137BFCA general rules: clients' money, right to rescind etc.U.K.
(1)Rules relating to the handling of money held by an authorised person in specified circumstances (“clients' money”) may—
(a)make provision which results in that clients' money being held on trust in accordance with the rules,
(b)treat 2 or more accounts as a single account for specified purposes (which may include the distribution of money held in the accounts),
(c)authorise the retention by the authorised person of interest accruing on the clients' money, and
(d)make provision as to the distribution of such interest which is not to be retained by the authorised person.
(2)An institution with which an account is kept in pursuance of rules relating to the handling of clients' money does not incur any liability as constructive trustee if the money is wrongfully paid from the account, unless the institution permits the payment—
(a)with knowledge that it is wrongful, or
(b)having deliberately failed to make enquiries in circumstances in which a reasonable and honest person would have done so.
(3)Rules may—
(a)confer rights on persons to rescind agreements with, or withdraw offers to, authorised persons within a specified period, and
(b)make provision, in respect of authorised persons and persons exercising those rights, for the restitution of property and the making or recovery of payments where those rights are exercised.
(4)“Rules” means general rules of the FCA.
(5)“Specified” means specified in the rules.
137CFCA general rules: cost of credit and duration of credit agreementsU.K.
(1)The power of the FCA to make general rules includes power to make rules prohibiting authorised persons from—
(a)entering into a regulated credit agreement that provides for—
(i)the payment by the borrower of charges of a specified description, or
(ii)the payment by the borrower over the duration of the agreement of charges that, taken with the charges paid under one or more other agreements which are treated by the rules as being connected with it, exceed, or are capable of exceeding, a specified amount;
(b)imposing charges of a specified description or exceeding a specified amount on a person who is the borrower under a regulated credit agreement;
(c)entering into a regulated credit agreement that—
(i)is capable of remaining in force after the end of a specified period,
(ii)when taken with one or more other regulated credit agreements which are treated by the rules as being connected with it, would be capable of remaining in force after the end of a specified period, or
(iii)is treated by the rules as being connected with a number of previous regulated credit agreements that exceeds a specified maximum;
(d)exercising the rights of the lender under a regulated credit agreement (as a person for the time being entitled to exercise them) in a way that enables the agreement to remain in force after the end of a specified period or enables the imposition on the borrower of charges within paragraph (a)(i) or (ii).
[F2(1A)The FCA must make rules by virtue of subsection (1)(a)(ii) and (b) in relation to one or more specified descriptions of regulated credit agreement appearing to the FCA to involve the provision of high-cost short-term credit, with a view to securing an appropriate degree of protection for borrowers against excessive charges.
(1B)Before the FCA publishes a draft of any rules to be made by virtue of subsection (1)(a)(ii) or (b), it must consult the Treasury.]
(2)“Charges” means charges payable, by way of interest or otherwise, in connection with the provision of credit under the regulated credit agreement, whether or not the agreement itself makes provision for them and whether or not the person to whom they are payable is a party to the regulated credit agreement or an authorised person.
(3)“The borrower” includes—
(a)any person providing a guarantee or indemnity under the regulated credit agreement, and
(b)a person to whom the rights and duties of the borrower under the regulated credit agreement or a person falling within paragraph (a) have passed by assignment or operation of law.
(4)In relation to an agreement entered into or obligation imposed in contravention of the rules, the rules may—
(a)provide for the agreement or obligation to be unenforceable against any person or specified person;
(b)provide for the recovery of any money or other property paid or transferred under the agreement or other obligation by any person or specified person;
(c)provide for the payment of compensation for any loss sustained by any person or specified person as a result of paying or transferring any money or other property under the agreement or obligation.
(5)The provision that may be made as a result of subsection (4) includes provision corresponding to that made by section 30 (enforceability of agreements resulting from unlawful communications).
(6)A credit agreement is a contract of the kind mentioned in paragraph 23 of Schedule 2, other than one under which the obligation of the borrower to repay is secured on land: and a credit agreement is a “regulated credit agreement” if any of the following is a regulated activity—
(a)entering into or administering the agreement;
(b)exercising or being able to exercise the rights of the lender under the agreement.
(a)“specified amount” means an amount specified in or determined in accordance with the rules;
(b)“specified period” means a period of a duration specified in or determined in accordance with the rules;
(c)“specified person” means a person of a description specified in the rules;
(d)subject to that, “specified” means specified in the rules.
F2S. 137C(1A)(1B) inserted (18.2.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 131(1), 148(2) (with s. 131(3))
137DFCA general rules: product interventionU.K.
(b)any reference to an agreement includes an arrangement.
137EOrders under s.137D(1)(b)U.K.
(1)No order may be made under section 137D(1)(b) unless—
(2)Subsection (3) applies if an order under section 137D(1)(b) contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without a draft being so laid and approved.
137FRules requiring participation in benchmarkU.K.
(1)The power of the FCA to make general rules includes power to make rules requiring authorised persons to take specified steps in connection with the setting by a specified person of a specified benchmark.
(2)The rules may in particular—
(a)require authorised persons to whom the rules apply to provide information of a specified kind, or expressions of opinion as to specified matters, to persons determined in accordance with the rules;
(b)make provision about the form in which and the time by which any information or expression of opinion is to be provided;
(c)make provision by reference to any code or other document published by the person responsible for the setting of the benchmark or by any other person determined in accordance with the rules, as the code or other document has effect from time to time.
(3)Rules making provision of the kind mentioned in subsection (2)(c) may provide that the code or other document is to be capable of affecting obligations imposed by the rules only if specified requirements are met in relation to it.
“benchmark” has the meaning given in section 22(6);
“specified” means specified in or determined in accordance with the rules.
[F3137FBFCA general rules: disclosure of information about the availability of pensions guidanceU.K.
(1)The FCA must make general rules requiring information about the availability of pensions guidance to be given by the trustees or managers of a relevant pension scheme to members of the scheme, and survivors of members of the scheme, with subsisting rights in respect of any flexible benefits.
(2)Before the FCA publishes a draft of any rules to be made by virtue of this section, it must consult—
(3)In determining what provision to include in the rules, the FCA must have regard to any regulations that are for the time being in force under section 113 of the Pension Schemes Act 1993 concerning the giving of information about the availability of pensions guidance to members of pension schemes, and survivors of members of pension schemes, with subsisting rights in respect of any flexible benefits.
“flexible benefit” has the meaning given by section 74 of the Pension Schemes Act 2015;
“pensions guidance” means pensions guidance given by virtue of Part 20A;
“relevant pension scheme” means a pension scheme set up by a person with permission under this Act to establish—
a personal pension scheme within the meaning of an order under section 22, or
a stakeholder pension scheme within the meaning of such an order;
“subsisting right” has the meaning given by section 76 of the Pension Schemes Act 2015;
“survivor” has the meaning given by section 76 of the Pension Schemes Act 2015.]
F3S. 137FB inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 6 (with s. 87, Sch. 3 para. 18(1))
137GThe PRA's general rulesU.K.
(1)The PRA may make such rules applying to PRA-authorised persons—
as appear to the PRA to be necessary or expedient for the purpose of advancing any of its objectives.
(2)Rules made under this section are referred to in this Act as the PRA's general rules.
(3)The PRA's general rules may make provision applying to PRA-authorised persons even though there is no relationship between the PRA-authorised persons to whom the rules will apply and the persons whose interests will be protected by the rules.
(4)The PRA's general rules may contain requirements which take into account, in the case of a PRA-authorised person who is a member of a group, any activity of another member of the group.
(5)The PRA's general rules may not—
C10S. 137G modified by S.I. 2008/2644, art. 27(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 147(b)(i))
C11S. 137G modified by S.I. 2008/2546, art. 37(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 146(c)(i))
C12S. 137G modified by S.I. 2008/2666, art. 18(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 148(b)(i))
C13S. 137G modified by S.I. 2008/2674, art. 29(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 149(b)(i))
C14S. 137G modified by S.I. 2008/432, art. 15(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 136(d)(i))
C15S. 137G(1) modified by S.I. 2009/3226, art. 20(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 182(a)(i))
C16S. 137G(1) modified by S.I. 2009/814, art. 9(1A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 167(b)(i))
137HGeneral rules about remunerationU.K.
(1)This section applies where either regulator exercises its power to make general rules so as to make rules prohibiting persons, or persons of a specified description, from being remunerated in a specified way.
(2)The rules may—
(a)provide that any provision of an agreement that contravenes such a prohibition is void, and
(b)provide for the recovery of any payment made, or other property transferred, in pursuance of a provision that is void by virtue of paragraph (a).
(3)A provision that, at the time the rules are made, is contained in an agreement made before that time may not be rendered void under subsection (2)(a) unless it is subsequently amended so as to contravene a prohibition referred to in that subsection.
137IRemuneration policies: Treasury direction to consider complianceU.K.
(1)This section applies where either regulator exercises its power to make general rules so as to make rules requiring authorised persons, or authorised persons of a description specified in the rules, to act in accordance with a remuneration policy.
(2)A “remuneration policy” is a policy about the remuneration by an authorised person of—
(b)employees, or
of a description specified in the rules.
(3)The Treasury may direct the regulator to consider whether the remuneration policies of authorised persons specified in the direction (or of authorised persons of a description so specified) comply with requirements imposed by rules made by that regulator as to the contents of the policies.
(4)Before giving a direction under subsection (3), the Treasury must consult the regulator concerned.
(5)If the regulator considers that a remuneration policy of an authorised person fails to make provision which complies with the requirements mentioned in subsection (3), the regulator must take such steps as it considers appropriate to deal with the failure.
(6)The steps that the regulator may take include requiring the remuneration policy to be revised.
(7)“Authorised person”, in relation to the PRA, means PRA-authorised person.
137JRules about recovery plans: duty to consultU.K.
(1)Before either regulator prepares a draft of any general rules that require [F4a] relevant person (or [F4a] relevant person of a specified description) to prepare a recovery plan, the regulator must consult—
(a)the Treasury, and
[F5(2)“Relevant person” means—
(a)an institution authorised in the UK; or
(b)a qualifying parent undertaking within the meaning given by section 192B.
(3)A “recovery plan” is a document which provides for measures to be taken—
(a)by an institution authorised in the UK which is not part of a group, following a significant deterioration of the financial position of the institution, in order to restore its financial position; or
(b)in relation to a group, to achieve the stabilisation of the group as a whole, or of any institution within the group, where the group or institution is in a situation of financial stress, in order to address or remove the causes of the financial stress and restore the financial position of the group or institution.
(4)For the purposes of subsection (3)(a) the definition of “group” in section 421 applies with the omission of subsection (1)(e) and (f) of that section.]
“authorised person”, in relation to the PRA, means PRA-authorised person;
[F6“institution” means—
a credit institution within the meaning given by Article 2.1(2) of Directive 2014/59/EU of the European Parliament and of the Council of 15th May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms; or
an investment firm within the meaning given by Article 2.1(3) of that directive;
“institution authorised in the UK” means an institution which is an authorised person and—
a bank within the meaning given by section 2 of the Banking Act 2009;
a building society within the meaning given in section 119 of the Building Societies Act 1986; or
an investment firm within the meaning given by section 258A of the Banking Act 2009;]
F4Word in s. 137J(1) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 2(2)
F5S. 137J(2)-(4) substituted for s. 137J(2)-(5) (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 2(3)
F6Words in s. 137J(6) inserted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 2(4)
137K[F7Rules about resolution packs: duty to consult]U.K.
(1)Before [F8either regulator] prepares a draft of any general rules that require [F9a] relevant person (or [F9a] relevant person of a specified description) to prepare a [F10resolution pack], [F11the regulator] must consult—
[F12(2)“Relevant person” has the same meaning as in section 137J(2).]
(3)A “[F13resolution pack]” is a document containing information within subsection (4) or (5).
(4)Information is within this subsection if it relates to action to be taken in the event of—
(a)circumstances arising in which it is likely that the business (or any part of the business) of an authorised person will fail, or
(b)the failure of the business (or any part of the business) of an authorised person.
(5)Information is within this subsection if it would facilitate anything falling to be done by any person in consequence of that failure.
(6)An example of information within subsection (5) is information that, in the event of that failure, would facilitate—
(a)planning by the Treasury in relation to the possible exercise of any of its powers under Part 1 of the Banking Act 2009, or
[F14(7)In this section “authorised person”, in relation to the PRA, means PRA-authorised person.]
F7S. 137K heading substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(6)
F8Words in s. 137K(1) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(2)(a)(i)
F9Word in s. 137K(1) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(2)(b)
F10Words in s. 137K(1) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(3)
F11Words in s. 137K(1) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(2)(a)(ii)
F12S. 137K(2) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(4)
F13Words in s. 137K(3) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(3)
F14S. 137K(7) inserted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 3(5)
137LInterpretation of sections 137J and 137KU.K.
(1)This section has effect for the interpretation of sections 137J and 137K.
(2)References to the taking of action include the taking of action by—
(a)the authorised person,
(b)any other person in the same group as the authorised person, or
(c)a partnership of which the authorised person is a member.
(3)In subsection (2)(b) the definition of “group” in section 421 applies with the omission of subsection (1)(e) and (f) of that section.
(4)References to the business of an authorised person include the business of—
(a)any person in the same group as the authorised person, and
(b)a partnership of which the authorised person is a member.
(5)For the purposes of section 137K the cases in which the business (or any part of the business) of the authorised person (“A”) is to be regarded as having failed include those where—
(a)A enters insolvency,
(b)any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to A, or
(c)A falls to be taken for the purposes of the compensation scheme to be unable, or likely to be unable, to satisfy claims against A.
(g)a composition between A and A's creditors, and
(h)a scheme of arrangement of A's affairs.
F15137MSpecial provision relating to adequacy of resolution plansU.K.
F15S. 137M repealed (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 4
137NRecovery plans and [F16resolution packs]: restriction on duty of confidenceU.K.
(1)A contractual or other requirement imposed on a person (“P”) to keep information in confidence does not apply if—
(a)the information is or may be relevant to anything required to be done as a result of a requirement imposed by general rules made by either regulator to prepare a recovery plan or a [F17resolution pack],
(b)an authorised person or a skilled person requests or requires P to provide the information for the purpose of securing that those things are done, and
(c)the regulator in question has approved the making of the request or the imposition of the requirement before it is made or imposed.
(2)An authorised person [F18or a qualifying parent undertaking] may provide information (whether received under subsection (1) or otherwise) that would otherwise be subject to a contractual or other requirement to keep it in confidence if it is provided for the purposes of anything required to be done as a result of a requirement imposed by general rules to prepare a recovery plan or a [F17resolution pack].
(3)In this section, references to preparing a recovery plan or a [F17resolution pack] include—
(a)keeping [F19that plan or pack] up to date, and
(b)collecting specified information for the purposes of [F20that plan or pack].
(4)In this section, references to a skilled person are to a person appointed in accordance with section 166A.
“authorised person”, in relation to rules of the PRA, means a PRA-authorised person;
[F21“qualifying parent undertaking” means—
a qualifying parent undertaking within the meaning given by section 192B; or
an undertaking which—
is a parent undertaking of an institution (within the meaning given in section 137J(6)) authorised in another EEA State; and
would be a qualifying parent undertaking within the meaning given by section 192B if the institution were a qualifying authorised person within the meaning given by section 192A(1).]
F16Words in s. 137N heading substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 5(6)
F17Words in s. 137N substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 5(2)
F18Words in s. 137N(2) inserted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 5(3)
F19Words in s. 137N(3)(a) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 5(4)
F20Words in s. 137N(3)(b) substituted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 5(4)
F21Words in s. 137N(5) inserted (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 5(5)
Specific rule-making powersU.K.
137OThreshold condition codeU.K.
(5)A threshold condition code cannot impose obligations that are enforceable against authorised persons otherwise than through the threshold conditions.
137PControl of information rulesU.K.
(1)Either regulator may make rules (“control of information rules”) about the disclosure and use of information held by an authorised person (“A”).
(2)Control of information rules may—
(a)require the withholding of information which A would otherwise be required to disclose to a person (“B”) for or with whom A does business in the course of carrying on any regulated or other activity;
(b)specify circumstances in which A may withhold information which A would otherwise be required to disclose to B;
(c)require A not to use for the benefit of B information—
(i)which is held by A, and
(ii)which A would otherwise be required to use for the benefit of B;
(d)specify circumstances in which A may decide not to use for the benefit of B information within paragraph (c).
137QPrice stabilising rulesU.K.
(1)The FCA may make rules (“price stabilising rules”) as to—
(a)the circumstances and manner in which,
(b)the conditions subject to which, and
(c)the time when or the period during which,
action may be taken for the purpose of stabilising the price of investments of specified kinds.
(2)Price stabilising rules—
(a)are to be made so as to apply only to authorised persons;
(b)may make different provision in relation to different kinds of investment.
(3)The FCA may make rules which, for the purposes of the relevant exemption provisions, treat a person who acts or engages in conduct—
(a)for the purpose of stabilising the price of investments, and
(b)in conformity with such provisions corresponding to price stabilising rules and made by a body or authority outside the United Kingdom as may be specified in rules made by the FCA,
as acting, or engaging in that conduct, for that purpose and in conformity with price stabilising rules.
(4)“The relevant exemption provisions” are the following provisions of the Financial Services Act 2012—
(a)section 90(9)(b);
(b)section 91(4)(a).
137RFinancial promotion rulesU.K.
(1)The FCA may make rules applying to authorised persons about the communication by them, or their approval of the communication by others, of invitations or inducements—
(a)to engage in investment activity, or
(b)to participate in a collective investment scheme.
(2)Rules under this section may, in particular, make provision about the form and content of communications.
(3)Subsection (1) applies only to communications which—
(a)if made by a person other than an authorised person, without the approval of an authorised person, would contravene section 21(1), and
(b)may be made by an authorised person without contravening section 238(1).
(4)But subsection (3) does not prevent the FCA from making rules under subsection (1) in relation to a communication that would not contravene section 21(1) if made by a person other than an authorised person, without the approval of an authorised person, if the conditions set out in subsection (5) are satisfied.
(a)that the communication would not contravene subsection (1) of section 21 because it is a communication to which that subsection does not apply as a result of an order under subsection (5) of that section,
(b)that the FCA considers that any of the requirements of—
(i)paragraphs 1 to 8 of Article 19 of the markets in financial instruments directive,
(ii)any implementing measure made under paragraph 10 of that Article, or
(iii)Article 77 of the UCITS directive,
apply to the communication, and
(c)that the FCA considers that the rules are necessary to secure that the communication satisfies such of the requirements mentioned in paragraph (b) as the FCA considers apply to the communication.
(6)“Engage in investment activity” has the same meaning as in section 21.
(7)The Treasury may by order impose limitations on the power to make rules under this section.
137SFinancial promotion rules: directions given by FCAU.K.
(12)Nothing in this section requires a notice to be given to a person mentioned in subsection (5)(b) if the FCA considers it impracticable to do so.
Supplementary powersU.K.
137TGeneral supplementary powersU.K.
Rules made by either regulator—
(a)may make different provision for different cases and may, in particular, make different provision in respect of different descriptions of authorised persons, activity or investment,
(b)may make provision by reference to rules made by the other regulator, as those rules have effect from time to time, and
(c)may contain such incidental, supplemental, consequential and transitional provision as the regulator making the rule considers appropriate.
C17S. 137T modified by S.I. 2002/1775, reg. 3(2)(a) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 77(4)(b)
[F22(za)rules made by either regulator under section 64A (rules of conduct);]
(b)rules made by the FCA under section 247 (trust scheme rules) [F23, section 248 (scheme particulars rules), section 261I (contractual scheme rules) or section 261J (contractual scheme particulars rules)].
F22S. 138A(2)(za) inserted (25.7.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 8; S.I. 2014/1819, art. 2(4)(b)
F23Words in s. 138A(2)(b) substituted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(4) (with reg. 24)
C18S. 138A applied by S.I. 2008/2674, art. 29(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 149(b)(aa)(ii)
C19S. 138A modified by S.I. 2002/1775, reg. 3(2)(a) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 77(4)(b)
C20S. 138A applied by S.I. 2009/3226, art. 20(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 182(a)(aa)(ii)
C21S. 138A applied (with modifications) by S.I. 2008/432, art. 15(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 136(d)(aa)(ii)
C22S. 138A applied by S.I. 2008/2644, art. 27(2) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 147(b)(aa)(ii))
C23S. 138A applied by S.I. 2008/2666, art. 18(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 148(b)(aa)(ii)
C24S. 138A applied by S.I. 2008/2546, art. 37(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 146(c)(aa)(ii)
C25S. 138A(1) modified by S.I. 2009/814, art. 9(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 167(b)(ii)
C26S. 138A(1)(6)(7) excluded by S.I. 2006/3221, reg. 8(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 118(h)(iii) (with Sch. 2 para. 119)
C27Ss. 138A(3)-(7) modified by S.I. 2001/1228, reg. 7(3)(4) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 41(4)
C28Ss. 138A(3)-(7) applied (with modifications) by S.R. 2004/335, reg. 7(3)(4) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 87(4)
C29S. 138A(4) restricted by S.I. 2009/3226, art. 20(3) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 182(a)(aa)(iii)
C30S. 138A(4) restricted by S.I. 2008/432, art. 15(3) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 136(d)(aa)(iii)
C31S. 138A(4) restricted by S.I. 2008/2666, art. 18(3) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 148(b)(aa)(iii)
C32S. 138A(4) restricted by S.I. 2008/2546, art. 37(3) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 146(c)(aa)(iii)
C33S. 138A(4) excluded by S.I. 2006/3221, reg. 8(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 118(h)(iii) (with Sch. 2 para. 119)
C34S. 138A(4) restricted by S.I. 2008/2644, art. 27(3) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 147(b)(aa)(ii)
C35S. 138A(4) modified by S.I. 2009/814, art. 9(3)-(5) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 167(b)(iii)(iv)
C36S. 138A(4) restricted by S.I. 2008/2674, art. 29(3) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 149(b)(aa)(iii)
C37S. 138B modified (20.2.2013) by The Financial Services Act 2012 (Transitional Provisions) (Rules and Miscellaneous Provisions) Order 2013 (S.I. 2013/161), arts. 1(1), 9(3)(4)
C38S. 138B applied (with modifications) by S.R. 2004/335, reg. 7(3)(4) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 87(4)
[F24(za)rules under section 64A (rules of conduct);]
F24S. 138D(5)(za) inserted (25.7.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 3 para. 9; S.I. 2014/1819, art. 2(4)(b)
C39S. 138D applied by S.R. 2004/335, reg. 25(6) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 87(6)
C40S. 138D modified by S.I. 2002/1775, reg. 3(2)(a) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 77(4)(b)
[F25(1)]If either regulator makes, alters or revokes any rules, that regulator must without delay give written notice—
[F26(2)Subsection (1)(b) does not apply to rules made under or by virtue of section 137FB, 333Q or 333R.]
F25S. 138F(1): s. 138F renumbered as s. 138F(1) (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 7(2) (with s. 87)
F26S. 138F(2) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 7(3) (with s. 87)
C41S. 138H modified (20.2.2013) by The Financial Services Act 2012 (Transitional Provisions) (Rules and Miscellaneous Provisions) Order 2013 (S.I. 2013/161), arts. 1(1), 3(6)
C42S. 138H excluded by S.I. 2002/1501, art. 12(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 76(c)(i)
C43S. 138H modified (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 64(4)
[F27(aa)section 137FB;]
[F28(ca)section 333Q;
(10)Subsection (1)(a) does not apply to[F29—
F27S. 138I(6)(aa) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 8(a) (with s. 87, Sch. 3 para. 18(1))
F28S. 138I(6)(ca)(cb) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 8(b) (with s. 87)
F29S. 138I(10)(a) and word inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 8(c) (with s. 87)
C44S. 138I excluded (20.2.2013) by The Financial Services Act 2012 (Transitional Provisions) (Rules and Miscellaneous Provisions) Order 2013 (S.I. 2013/161), arts. 1(1), 8(2)
C45S. 138I excluded by S.I. 2004/454, art. 12(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 89(b)
C46S. 138I excluded by S.I. 2006/3259, reg. 4 (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 120(b)(ii)
C47S. 138I excluded (2.4.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013 (S.I. 2013/655), arts. 1, 9(2)
C48Ss. 138I-138L applied (with modifications) (22.7.2013) by The Alternative Investment Fund Managers (Amendment) Regulations 2013 (S.I. 2013/1797), regs. 1(2), 6(3)-(7) (with reg. 6(2))
C49S. 138I applied (with modifications) (26.7.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(4), 61(5) (with art. 61(6)(7))
C50S. 138I excluded (1.4.2015) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2015 (S.I. 2015/369), arts. 1, 6(2)(b)
C51S. 138I excluded (6.4.2015) by The Bank of England Act 1998 (Macro-prudential Measures) Order 2015 (S.I. 2015/909), arts. 1, 4(2)(a) (with art. 4(1))
C52S. 138I(1)(b)(2)(e)(3) applied by S.I. 2008/346, reg. 42(4)(4A) (as substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 134(d))
C53S. 138I(2)(a) excluded (26.7.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(4), 61(3) (with art. 61(6))
C54S. 138I(2)(d) excluded (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 1 para. 6(2), (3)(a) (with Sch. 12)
C55S. 138J applied (with modifications) (26.7.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(4), 62(4)(5)
C56S. 138J excluded (6.4.2015) by The Bank of England Act 1998 (Macro-prudential Measures) Order 2015 (S.I. 2015/909), arts. 1, 4(2)(b) (with art. 4(1))
C57Ss. 138J, 138K excluded (6.4.2015) by The Bank of England Act 1998 (Macro-prudential Measures) (No.2) Order 2015 (S.I. 2015/905), arts. 1(2), 5(2)(a) (with art. 5(1))
C58S. 138J(2)(a) excluded (1.4.2013) by The Bank of England Act 1998 (Macro-prudential Measures) Order 2013 (S.I. 2013/644), arts. 1(1), 3(2)
C59S. 138J(2)(a) excluded (26.7.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(4), 62(2)
C60S. 138J(5)(a) restricted (25.3.2013) by The Financial Services Act 2012 (Transitional Provisions) (Miscellaneous Provisions) Order 2013 (S.I. 2013/442), arts. 1(2), 70(3)
(c)a registered society within the meaning of [F30the Co-operative and Community Benefit Societies Act 2014];
F30Words in s. 138K(5)(c) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 69 (with Sch. 5)
C61S. 138K excluded (20.2.2013) by The Financial Services Act 2012 (Transitional Provisions) (Rules and Miscellaneous Provisions) Order 2013 (S.I. 2013/161), arts. 1(1), 8(2)
C62S. 138K excluded (6.4.2015) by The Bank of England Act 1998 (Macro-prudential Measures) Order 2015 (S.I. 2015/909), arts. 1, 4(2) (with art. 4(1))
C63S. 138L(1)(2) modified by S.I. 2008/2666, art. 19(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 148(c)(i)
C64S. 138L(1)(2) modified by S.I. 2009/3226, art. 21(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 182(b)(i)
C65S. 138L(1)(2) modified by S.I. 2008/2674, art. 30(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 149(c)(i)
C66S. 138L(1)(2) modified by S.I. 2008/2546, art. 38(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 146(d)(i)
C67S. 138L(1)(2) modified by S.I. 2008/2644, art. 28(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 147(c)(i)
C68S. 138L(1)(2) modified by S.I. 2008/432, art. 16(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 136(e)(aa)(i)
C69S. 138L(1)(2) modified by S.I. 2009/814, art. 10(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 167(c)(i)
CHAPTER 3U.K.Guidance
139APower of the FCA to give guidanceU.K.
(1)The FCA may give guidance consisting of such information and advice as it considers appropriate—
(a)with respect to the operation of specified parts of this Act and of any rules made by the FCA;
(b)with respect to any other matter relating to functions of the FCA;
(c)with respect to any other matters about which it appears to the FCA to be desirable to give information or advice.
[F31(1A)The FCA may not give guidance under this section relating to its functions under sections 333H, 333I, 333J, 333K and 333Q (see section 333P for provision about the giving of guidance relating to these functions).]
(2)The FCA may give financial or other assistance to persons giving information or advice of a kind which the FCA could give under this section.
(3)Subsection (5) applies where the FCA proposes to give guidance to FCA-regulated persons generally, or to a class of FCA-regulated persons, in relation to rules to which those persons are subject.
(4)Subsection (5) also applies in relation to guidance which the FCA proposes to give to persons generally, or to a class of person, in relation to its functions under the short selling regulation.
(5)Where this subsection applies, subsections (1), (2)(e) and (3) of section 138I (consultation) apply to the proposed guidance as they apply to proposed rules, unless the FCA considers that the delay in complying with those provisions would be prejudicial to the interests of consumers.
(7)In this Chapter, references to guidance given by the FCA include references to any recommendations made by the FCA to FCA-regulated persons generally, or to any class of FCA-regulated person.
(8)“Consumers” has the meaning given in section 1G.
(9)“FCA-regulated person” means—
(a)an authorised person, or
(b)any person who is otherwise subject to rules made by the FCA.
F31S. 139A(1A) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 9 (with s. 87)
C70S. 139A modified by S.I. 2008/432, art. 16(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 136(e)(aa)(ii)
C71S. 139A modified by S.I. 2008/2644, art. 28(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 147(c)(aa)(ii)
C72S. 139A modified by S.I. 2009/3226, art. 21(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 182(b)(ii)
C73S. 139A modified by S.I. 2008/2666, art. 19(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 148(c)(aa)(ii)
C74S. 139A modified by S.I. 2008/2674, art. 30(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 149(c)(aa)(ii)
C75S. 139A modified by S.I. 2009/814, art. 10(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 167(c)(ii)
C76S. 139A modified by S.I. 2008/2546, art. 38(2) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 146(d)(ii)
C77S. 139A(3) applied (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 1 para. 8 (with Sch. 12)
C78S. 139A(3) excluded (2.4.2013) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2013 (S.I. 2013/655), arts. 1, 9(2)
C79S. 139A(3) excluded (1.4.2015) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2015 (S.I. 2015/369), arts. 1, 6(2)(c)
C80S. 139A(3) excluded (6.4.2015) by The Bank of England Act 1998 (Macro-prudential Measures) Order 2015 (S.I. 2015/909), arts. 1, 4(2)(a) (with art. 4(1))
C81S. 139A(5) excluded by S.I. 2004/454, art. 12(1) (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 89(b)
C82S. 139A(5) excluded by S.I. 2006/3259, reg. 4 (as amended) (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 120(b)(ii)
139BNotification of FCA guidance to the TreasuryU.K.
(1)On giving any general guidance, the FCA must give written notice to the Treasury without delay.
(2)If the FCA alters any of its guidance, it must give written notice to the Treasury without delay.
(3)The notice under subsection (2) must include details of the alteration.
(4)If the FCA revokes any of its general guidance, it must give written notice to the Treasury without delay.
(5)“General guidance” means guidance given by the FCA under section 139A which is—
(a)given to persons generally, to FCA-regulated persons generally or to a class of FCA-regulated person,
(b)intended to have continuing effect, and
(c)given in writing or other legible form.
(6)“FCA-regulated person” has the same meaning as in section 139A.
C83S. 139B(5) applied (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 1 para. 8 (with Sch. 12)
CHAPTER 4U.K.Competition scrutiny
C84Pt. 9A Ch. 4 applied (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 107(1), 148(5); S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1
140AInterpretationU.K.
[F32“the CMA” means the Competition and Markets Authority.]
so far as it operates in the United Kingdom or a part of the United Kingdom, any market which operates there and in another country or territory or in a part of another country or territory, and
“practices”, in relation to each regulator, means practices adopted by that regulator in the exercise of functions under this Act;
“regulating provisions” means—
in relation to the FCA, any—
rules of the FCA;
general guidance (as defined by section 139B(5) [F34or 333P(9)]);
statement issued by the FCA under section 64;
code issued by the FCA under section 64 or 119;
[F35standards set under section 333H;
statement issued by the FCA under 333K;]
in relation to the PRA, any—
rules of the PRA;
statement issued by the PRA under section 64;
code issued by the PRA under section 64.
(3)For the purposes of this Chapter, any reference to a feature of a market in the United Kingdom for goods or services is to be read as a reference to—
(a)the structure of the market concerned or any aspect of that structure,
(b)any conduct (whether or not in the market concerned) of one or more than one person who supplies or acquires goods or services in the market concerned, or
(4)In subsection (3) “conduct” includes any failure to act (whether or not intentional) and any other unintentional conduct.
F32Words in s. 140A(1) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 121(2)(ii) (with art. 3)
F33Words in s. 140A(1) omitted (1.4.2014) by virtue of The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 121(2)(i) (with art. 3)
F34Words in s. 140A(1) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 10(a) (with s. 87)
F35Words in s. 140A(1) inserted (3.3.2015) by Pension Schemes Act 2015 (c. 8), s. 89(1)(a), Sch. 3 para. 10(b) (with s. 87)
F36S. 140A(2) omitted (1.4.2014) by virtue of The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 121(3) (with art. 3)
140BAdvice about effect of regulating provision or practiceU.K.
(1)In this Chapter, any reference to the giving of “section 140B advice” to a regulator is to be read in accordance with this section.
[F37(2)The CMA gives “section 140B advice” to a regulator if—
(a)it gives advice to the regulator under section 7 of the Enterprise Act 2002 (provision of competition advice to Ministers etc) and the advice states that in the opinion of the CMA one or more of the things mentioned in subsection (4) may cause, or contribute to, the effect mentioned in subsection (5), or might be expected to do so in the future;
(b)a report published by it under section 136 of the Enterprise Act 2002 (investigations and reports on market investigation reference) contains—
(i)a decision that one or more of the things mentioned in subsection (4) may cause, or contribute to, the effect mentioned in subsection (5), and
(ii)a recommendation that any action should be taken by that regulator.]
(a)a regulating provision or practice of the regulator,
(b)two or more regulating provisions or practices (of that regulator or of both regulators) taken together,
(c)a particular combination of regulating provision or practices (of that regulator or of both regulators), or
(d)a feature, or combination of features, of a [F39one or more markets] in the United Kingdom that could be dealt with by regulating provision or practices (of that regulator or of both regulators).
(5)That effect is the prevention, restriction or distortion of competition in connection with the supply or acquisition of any goods or services in the United Kingdom or a part of the United Kingdom.
F37S. 140B(2) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 122(1) (with art. 3)
F38S. 140B(3) omitted (1.4.2014) by virtue of The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 122(2) (with art. 3)
F39Words in s. 140B(4)(d) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 122(3) (with art. 3)
140CConsultation with regulatorU.K.
Before giving section 140B advice, [F40the CMA] must consult the regulator to which the advice is to be given.
F40Words in s. 140C substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 123 (with art. 3)
140DInvestigation powers of [F41CMA] U.K.
[F42(1)] Where the [F43CMA] is deciding whether to exercise its power under section 7 of the Enterprise Act 2002 to give advice which, if given, would be section 140B advice, section 174 of that Act has effect as if—
[F44(a)for subsection (1) there were substituted—
“(1)For the purposes of this section, a permitted purpose is assisting the CMA in deciding whether to exercise its power under section 7 to give advice which for the purposes of Chapter 4 of Part 9A of the Financial Services and Markets Act 2000 would be section 140B advice.”, and
(b)subsection (9A) were omitted.]
[F45(2)Where the CMA has exercised any of its powers under section 174 of the Enterprise Act 2002, as applied by subsection (1), section 174B of that Act has effect as if, after subsection (9), there were inserted—
“(10)Where the section 174 power is exercised for the purpose of assisting the CMA in deciding whether to exercise its power under section 7 to give advice which for the purposes of Chapter 4 of Part 9A of the Financial Services and Markets Act 2000 would be section 140B advice, the relevant day is the day when the CMA publishes that advice.”]
F41Word in s. 140D heading substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 124(5) (with art. 3, Sch. 2 para. 4)
F42S. 140D renumbered as s. 140D(1) (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 124(2) (with art. 3, Sch. 2 para. 4)
F43Word in s. 140D(1) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 124(3)(a) (with art. 3, Sch. 2 para. 4)
F44S. 140D(1)(a)(b) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 124(3)(b) (with art. 3, Sch. 2 para. 4)
F45S. 140D(2) inserted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 124(4) (with art. 3, Sch. 2 para. 4)
[F46140E.Publication by CMA of section 140B adviceU.K.
Where the giving of advice under section 7 of the Enterprise Act 2002 to either regulator constitutes the giving of section 140B advice, the CMA must publish that advice in such manner as it thinks fit.]
F46S. 140E substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 125 (with art. 3)
140FDuty of [F47CMA] to send report to regulatorU.K.
(1)Where the publication of a report of the [F48CMA] under section 142 of the Enterprise Act 2002 constitutes the giving of section 140B advice to either regulator, the [F49CMA] must give a copy of the report to that regulator.
(2)The day on which the copy is given is the day on which the regulator is to be taken to receive the section 140B advice.
F47Word in s. 140F heading substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 126(3) (with art. 3)
F48Word in s. 140F(1) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 126(2)(a) (with art. 3)
F49Word in s. 140F(1) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 126(2)(b) (with art. 3)
140GDuty of regulator to publish responseU.K.
(1)A regulator must, within 90 days after the day on which it receives section 140B advice, publish a response stating how it proposes to deal with the advice and in particular—
(a)whether it has decided to take any action, or to take no action, in response to the advice,
(b)if it has decided to take action, what action it proposes to take, and
(c)its reasons for its proposals.
(2)Publication is to be in such manner as the regulator thinks fit.
140HRole of the TreasuryU.K.
(a)[F50the CMA] has given section 140B advice and the regulator has published a response under section 140G, and
(b)the [F51CMA] remains of the opinion that one or more of the things mentioned in section 140B(4) may cause or contribute to, the effect mentioned in section 140B(5).
(2)The [F52CMA] may refer the section 140B advice to the Treasury by sending the Treasury—
(a)a copy of the section 140B advice and of the response, and
(b)a request to consider the advice and the response.
(3)In referring the section 140B advice, the [F52CMA] may give advice to the Treasury as to what action, if any, ought to be taken by the regulator.
(4)If section 140B advice is referred to them, the Treasury may give a direction to the regulator to which the advice was given requiring the regulator to take such action as may be specified in the direction.
(5)In considering whether to give a direction and, if so, what action to specify, the Treasury must have regard to—
(a)any advice the [F53CMA] has given under subsection (3),
(b)any action which the section 140B advice suggests that the regulator should take, and
(c)the response of the regulator to the section 140B advice.
(6)The direction may not require the regulator to do anything that it has no power to do, but the existence of the direction is relevant to the exercise of any discretion conferred on the regulator.
(7)Before giving a direction under this section, the Treasury must consult the regulator to which it is to be given.
(8)If the Treasury give a direction under this section they must—
(a)publish in such manner as they think fit a statement giving details of the direction and of their reasons for giving it, and
(b)lay a copy of the statement before Parliament.
F50Words in s. 140H(1)(a) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 127(2)(a) (with art. 3)
F51Word in s. 140H(1)(b) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 127(2)(b) (with art. 3)
F52Word in s. 140H(2)(3) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 127(3) (with art. 3)
F53Word in s. 140H(5) substituted (1.4.2014) by The Enterprise and Regulatory Reform Act 2013 (Competition) (Consequential, Transitional and Saving Provisions) Order 2014 (S.I. 2014/892), art. 1(1), Sch. 1 para. 127(3) (with art. 3)
CHAPTER 5U.K.Power to make consequential amendments
141APower to make consequential amendments of references to rules etc.U.K.
(a)a provision of primary or subordinate legislation (whenever passed or made) contains a reference (however expressed) to rules of either regulator or to guidance of the FCA,
(b)it appears to the Treasury or the Secretary of State that the reference requires amendment in consequence of the exercise by that regulator of its power under this Part to make, alter or revoke its rules or the exercise by the FCA of its power to make, alter or revoke its guidance.
(2)The Treasury or the Secretary of State may by order make such amendment of the legislation referred to in subsection (1)(a) as appears to them to be necessary or expedient in consequence of the exercise by the regulator of the power mentioned in subsection (1)(b).
(a)to replace a reference to the rules of one regulator with a reference to the rules of the other regulator or to the rules of both regulators;
(b)to replace a reference to the rules of both regulators with a reference to the rules of one regulator.
(4)In subsection (1)(a) “subordinate legislation” does not include rules of either regulator.]