Financial Services And Markets Citation and commencement 1 1 This Order may be cited as the Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021. 2 This Order comes into force on the day after the day on which it is made. Amendment of the Bank of England Act 1998 (Macro-prudential Measures) Order 2013 2 1 The Bank of England Act 1998 (Macro-prudential Measures) Order 2013 is amended as follows. 2 In article 1(2)— a in the definition of “FSMA cost benefit analysis”, after “Part 9A” insert “or section 192XA” ; b after the definition of “FSMA cost benefit analysis” insert— “holding company” means a financial holding company or a mixed financial holding company; ; c omit the definition of “mixed financial holding company”. 3 At the start of article 2(2), insert “Subject to paragraph (3),”. 4 In the table in article 2(2), after “UK banks” each time it occurs insert “, or their holding companies,”. 5 In the table in article 2(2), after “UK investment firms which are PRA-authorised persons” each time it occurs insert “, or their holding companies,”. 6 In the table in article 2(2), after “on such UK investment firms” insert “, or their holding companies,”. 7 After article 2(2), insert— 3 Where a measure listed in the table is applied to the holding company of a UK bank or of a UK investment firm which is a PRA-authorised person, the measure may only be applied to that holding company on, or by reference to, a consolidated basis. . Amendment of the Bank of England Act 1998 (Macro-prudential Measures) Order 2015 3 1 The Bank of England Act 1998 (Macro-prudential Measures) Order 2015 is amended as follows. 2 In article 2(1), in the definition of “cost benefit analysis”, after “Part 9A” insert “or section 192XA”. 3 In article 4(2), after “Part 9A” insert “or section 192XA”. 4 After article 4, insert— Review 5 1 The Treasury must from time to time— a carry out a review of the regulatory provision contained in this Order, and b publish a report setting out the conclusions of the review. 2 The first report must be published before the end of the period of five years beginning with the day on which this article comes into force. 3 Subsequent reports must be published at intervals not exceeding five years. 4 Section 30(4) of the Small Business, Enterprise and Employment Act 2015 requires that a report published under this article must, in particular— a set out the objectives intended to be achieved by the regulatory provision referred to in paragraph (1)(a); b assess the extent to which those objectives are achieved; c assess whether those objectives remain appropriate; and d if those objectives remain appropriate, assess the extent to which they could be achieved in a way which involves less onerous regulatory provision. 5 In this article, “regulatory provision” has the meaning given in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015 (see section 32 of that Act). . Amendment of the Bank of England Act 1998 (Macro-prudential Measures) (No.2) Order 2015 4 1 The Bank of England Act 1998 (Macro-prudential Measures) (No.2) Order 2015 is amended as follows. 2 In article 2(1)— a for the definition of “consolidated basis”, substitute— “consolidated basis” means, in relation to a measure, on the basis that the undertaking to which the measure applies and one or more other undertakings are to be treated as a single undertaking; ; b in the definition of “cost benefit analysis”, after “Part 9A” insert “or section 192XA” ; c after the definition of “G-SII buffer”, insert— “holding company” means a financial holding company or a mixed financial holding company; ; d omit the definition of “total exposure measure”. 3 After article 2(1), insert— 2 Subject to article 4(4), “total exposure measure” has the meaning given in rules made by the PRA as amended from time to time. . 4 For article 3 substitute— Macro-prudential measures 3 1 Subject to paragraph (2), each of the measures set out in article 4 may be applied on, or by reference to, an individual basis or a consolidated basis. 2 Where a measure set out in article 4(1)(a) or (d) is applied to the holding company of a UK bank or of a UK investment firm, the measure may only be applied to that holding company on, or by reference to, a consolidated basis. . 5 In article 4(1), after “UK banks” each time it occurs insert “, or their holding companies,”. 6 In article 4(1), after “UK investment firms” each time it occurs insert “, or their holding companies,”. 7 After article 4(3), insert— 4 The Financial Policy Committee may include, in a direction relating to any of the measures specified in paragraph (1), specifications as to how the total exposure measure is to be determined for the purposes of that measure. . 8 In article 5(2), after “Part 9A” insert “or section 192XA”. 9 After article 5, insert— Review 6 1 The Treasury must from time to time— a carry out a review of the regulatory provision contained in this Order, and b publish a report setting out the conclusions of the review. 2 The first report must be published before the end of the period of five years beginning with the day on which this article comes into force. 3 Subsequent reports must be published at intervals not exceeding five years. 4 Section 30(4) of the Small Business, Enterprise and Employment Act 2015 requires that a report published under this article must, in particular— a set out the objectives intended to be achieved by the regulatory provision referred to in paragraph (1)(a); b assess the extent to which those objectives are achieved; c assess whether those objectives remain appropriate; and d if those objectives remain appropriate, assess the extent to which they could be achieved in a way which involves less onerous regulatory provision. 5 In this article, “regulatory provision” has the meaning given in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015 (see section 32 of that Act). . Amendment of the Bank of England Act 1998 (Macro-prudential Measures) Order 2016 5 1 The Bank of England Act 1998 (Macro-prudential Measures) Order 2016 is amended as follows. 2 In article 2, in the definition of “FSMA cost-benefit analysis”, after “Part 9A” insert “or section 192XA”. 3 In article 4(2), after “Part 9A” insert “or section 192XA”. James Morris David Rutley Two of the Lords Commissioners of Her Majesty’s Treasury 20th July 2021