Source: http://www.legislation.gov.uk/ukpga/2012/21/part/4
Timestamp: 2018-08-19 22:19:52
Document Index: 528133431

Matched Legal Cases: ['ART 4', 'ART 4', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art 4', 'art. 2']

Financial Services Act 2012, PART 4 is up to date with all changes known to be in force on or before 19 August 2018. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
PART 4E+W+S+N.I.Collaboration between Treasury and Bank of England, FCA or PRA
57BDuty of Bank to inform Treasury about resolution plansE+W+S+N.I.
and action has implications for public funds if it would or might involve or lead to a need for the application of public funds.]
59Duty of Bank to notify Treasury of changesE+W+S+N.I.
(1)This section applies where a public funds notification has been given.
(2)If the Bank of England is of the opinion that the risk to which the notification relates continues but that there is a substantial change in the matters which gave rise to the notification, the Bank must notify the Treasury.
(3)If the Bank of England is of the opinion that the risk to which the notification relates has ceased, it must notify the Treasury.
(4)Before giving a notification under subsection (3), the Bank must consult the Treasury.
(5)A notification under subsection (3) must be given or confirmed in writing.
I2S. 59 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.
I3S. 60 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.
61Treasury power of directionE+W+S+N.I.
(b)the exercise by the Bank of any of the stabilisation powers, as defined by section 1(4) of the Banking Act 2009[F2or the making by the Bank of a mandatory reduction instrument within the meaning of section 6B of that Act], or
F2Words in s. 61(2)(b) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 124
I4S. 61 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.
62Directions under section 61: supplementary provisionsE+W+S+N.I.
(1)References in this section to a direction are to a direction under section 61.
(2)Before giving a direction, the Treasury must consult the Bank of England.
(3)On being given a direction, the Bank must give the Treasury one or more reports on how it is complying or intends to comply with the direction, and on such other matters relating to the direction as it considers appropriate.
(4)The Treasury may at any time by notice to the Bank revoke a direction.
(5)The revocation of a direction does not affect the validity of anything previously done in accordance with it.
(6)Where the Treasury's power of direction is exercised by virtue of section 60(2) by reference to a public funds notification, the direction remains in force (unless revoked under subsection (4)) even if the public funds notification is subsequently superseded by a notification under section 59(3).
(7)Where the Treasury's power of direction is exercised by virtue of section 60(3) by reference to the provision of qualifying financial assistance, the direction remains in force (unless revoked under subsection (4)) even if it appears to the Treasury that the qualifying financial assistance has subsequently been recovered.
(8)Each of the following must be in writing—
(a)a direction,
(b)a report under subsection (3), and
(c)a notice revoking a direction.
I5S. 62 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.
63Duty to lay direction etc before ParliamentE+W+S+N.I.
(1)As soon as practicable after giving or revoking a direction under section 61 or receiving a report under section 62(3), the Treasury must lay before Parliament a copy of the direction, notice of revocation or report.
(2)But subsection (1) does not apply in a case where the Treasury consider that the publication of the direction, notice of revocation or report would be against the public interest.
(3)Where the Treasury decide that publication of a direction, notice of revocation or report would be against the public interest, they must from time to time review that decision and if they subsequently decide that publication is no longer against the public interest they must comply with subsection (1).
I6S. 63 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.
64Duty of Treasury, Bank and PRA to co-ordinate discharge of functionsE+W+S+N.I.
(1)The Treasury (on the one hand) and the Bank of England and the PRA (on the other) must arrange to co-ordinate the discharge of their respective functions so far as they—
(a)relate to the stability of the UK financial system, and
(b)affect the public interest.
(2)In complying with subsection (1), the Treasury, the Bank and the PRA must have regard in particular to the importance of co-ordination in circumstances where the Bank has given, or is considering the giving of, a public funds notification.
I7S. 64 in force at 24.1.2013 by S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1
65Memorandum of understanding: [F3resolution planning and] crisis managementE+W+S+N.I.
(1)The Treasury (on the one hand) and the Bank of England and the PRA (on the other) must prepare and maintain a memorandum describing in general terms how they intend to comply with section 64 in relation to
[F4(a)the sharing of information by the Bank about any proposals to include in a resolution plan or a group resolution plan an option for the exercise of a stabilisation power by the Bank in relation to an institution or group entity;
(b)]the circumstances mentioned in subsection (2) of that section.
(2)[F5For the purposes of subsection (1)(b),] The memorandum must, in particular, make provision about—
(a)what the Treasury and the Bank regard as a material risk for the purposes of section 58(1);
(b)steps to be taken when the Bank has given a public funds notification;
(c)the respective roles of the Treasury, the Bank and the PRA, in cases where the Bank has given a public funds notification, in relation to the consideration and assessment of, and taking of, steps to resolve or reduce, threats to the stability of the UK financial system;
(d)how the Treasury, the Bank and the PRA will co-operate in fulfilling those roles;
(e)the use by the Treasury of their power under section 61;
(f)matters connected with the Bank's compliance with a direction under that section;
(g)the obtaining and sharing of information.
(3)The memorandum may make provision about such other matters as may be agreed between the Treasury, the Bank and the PRA, which must be matters that—
(a)relate to the stability of the UK financial system or the regulation of financial services, and
(4)The memorandum need not make provision about the relationship between the Bank and the PRA.
(5)The Treasury, the Bank of England and the PRA may, with the agreement of a body falling within subsection (6), include in the memorandum provisions relating to co-operation between any of them and that body in relation to matters falling within subsection (3)(a) and (b).
(6)The bodies falling within this subsection are—
(b)the scheme manager of the Financial Services Compensation Scheme;
(c)any other body exercising functions that relate to the stability of the UK financial system or the regulation of financial services.
(7)The Treasury must—
(a)lay before Parliament a copy of the memorandum and any revised memorandum, and
(b)publish the memorandum as currently in force in such manner as they think fit.
F3Words in s. 65 heading inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(3)(c), 41(3); S.I. 2016/627, reg. 2(1)(aa)
F4Words in s. 65(1) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(3)(a), 41(3); S.I. 2016/627, reg. 2(1)(aa)
F5Words in s. 65(2) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(3)(b), 41(3); S.I. 2016/627, reg. 2(1)(aa)
I8S. 65 in force at 24.1.2013 for specified purposes by S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3
I9S. 65 in force at 1.4.2013 in so far as not already in force by S.I. 2013/423, art. 3, Sch.
66Memorandum of understanding: international organisationsE+W+S+N.I.
(1)The Treasury, the Bank of England, the FCA and the PRA (“the UK authorities”) must prepare and maintain a memorandum describing how they intend to co-ordinate the exercise of their relevant functions so far as they relate to membership of, or relations with, the European Supervisory Authorities, EU institutions and other international organisations.
(2)The “European Supervisory Authorities” are the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority.
(3)“Relevant function”—
(a)in relation to the FCA or the PRA, means any of its functions;
(b)in relation to the Bank of England, means any of its functions relating to the stability of the UK financial system or the regulation of financial services;
(c)in relation to the Treasury, means any of their functions relating to the matters mentioned in paragraph (b).
(4)The memorandum is to be made with a view to ensuring—
(a)that, to the extent that it is appropriate to do so, the UK authorities agree consistent objectives in relation to matters of common interest;
(b)that, to the extent that it is appropriate to do so, they exercise their relevant functions in a way that is likely to advance those objectives;
(c)that they exercise their relevant functions in a way that is consistent and effective.
(5)The memorandum must, in particular, make provision—
(a)stating, in relation to each of the UK authorities, those international organisations of which it is a member or with which it has relations and which are concerned with matters that are related to its relevant functions;
(b)for there to be a committee for the purposes of the co-ordination mentioned in subsection (1);
(c)for that committee to include representatives of the UK authorities and to be chaired by a representative of the Treasury;
(d)about the procedures to be followed by the UK authorities in agreeing consistent objectives in relation to matters that materially affect 2 or more of them;
(e)about how the UK authorities will consult each other about the discharge of their relevant functions relating to international organisations.
(6)The memorandum need not make provision about co-ordination between the FCA and the PRA in relation to membership of, or relations with, the European Supervisory Authorities (as to which, see section 3E of FSMA 2000).
(7)The UK authorities may, with the agreement of a body exercising functions relating to the stability of the UK financial system or the regulation of financial services, include in the memorandum provisions relating to co-operation between any of them and that body in relation to membership of, or relations with, the European Supervisory Authorities, EU institutions and other international organisations.
(8)The Treasury must—
I10S. 66 in force at 24.1.2013 for specified purposes by S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3
I11S. 66 in force at 1.4.2013 in so far as not already in force by S.I. 2013/423, art. 3, Sch.
67Interpretation of Part 4E+W+S+N.I.
(2)“Public funds notification” is to be read in accordance with section 58(2).
(3)“Financial assistance” includes giving guarantees or indemnities and any other kind of financial assistance (actual or contingent).
(4)The Treasury may by order provide that a specified activity or transaction, or class of activity or transaction, is to be or not to be treated as financial assistance for the purposes of this Part; and subsection (3) is subject to this subsection.
(5)“Qualifying financial assistance” is to be read in accordance with section 60(5).
[F6(6)Group entity” has the same meaning as in the Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348).
(9)“Stabilisation power” has the same meaning as in section 1(4) of the Banking Act 2009.]
F6S. 67(6)-(9) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(4), 41(3); S.I. 2016/627, reg. 2(1)(aa)
I12S. 67 in force at 24.1.2013 by S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1