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Financial Services Act 2021

Type Public General Act

Publication 2021-04-29

Last updated 2024-11-22

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(282A) (1) This section applies where— (a) the FCA gives a decision notice under section 280(2) in relation to a scheme recognised under section 272, or (b) a direction given by the FCA under section 281(2) in relation to such a scheme takes effect. (2) The operator of the scheme must notify such persons as the FCA may direct that the FCA has revoked an order under section 272 for recognition of the scheme or given a direction under section 281 in relation to the scheme (as applicable). (3) A notification under subsection (2) that relates to a direction under section 281 must set out the terms of the direction. (4) A notification under subsection (2) must— (a) contain such information as the FCA may direct, and (b) be made in such form and manner as the FCA may direct. (5) Different directions may be given under subsection (2) or (4) in relation to— (a) different schemes or different descriptions of schemes; (b) different persons or descriptions of persons to whom a notification under subsection (2) must be given. (282B) (1) This section applies where the FCA considers that— (a) rules made under section 278 have been contravened, (b) the operator of a scheme recognised under section 272 has contravened section 277, 277A or 282A, or (c) the operator of a scheme recognised under section 272 has contravened a rule made, or a requirement imposed, under section 283. (2) The FCA may publish a statement to that effect. (3) Where the FCA proposes to publish a statement under subsection (2) in relation to a scheme or the operator of a scheme, it must give the operator a warning notice setting out the terms of the statement. (4) If the FCA decides to publish the statement— (a) it must give the operator, without delay, a decision notice setting out the terms of the statement, and (b) the operator may refer the matter to the Tribunal. (5) After a statement under subsection (2) is published, the FCA must send a copy of it to the operator and to any person to whom a copy of the decision notice was given under section 393(4). (282C) (1) Section 272(1) applies in relation to a part of a collective investment scheme as it applies in relation to such a scheme. (2) Accordingly, the following include a part of a scheme recognised under section 272— (a) the reference to a scheme recognised under section 272 in the definition of “recognised scheme” in section 237(3), and (b) other references to such a scheme (however expressed) in or in provision made under this Part of this Act (unless the contrary intention appears). (3) Provisions of or made under this Part of this Act have effect in relation to parts of schemes recognised, or seeking recognition, under section 272 with appropriate modifications. (4) The Treasury may by regulations— (a) make provision about what are, or are not, appropriate modifications for the purposes of subsection (3); (b) make provision so that a relevant enactment has effect in relation to parts of schemes recognised, or seeking recognition, under section 272 with such modifications as the Treasury consider appropriate; (c) make provision so that a relevant enactment does not have effect in relation to such parts of schemes. (5) Regulations under subsection (4)(b) or (c) may amend, repeal or revoke an enactment. (6) In this section— - “enactment” has the same meaning as in section 271E; - “relevant enactment” means an enactment passed or made before the day on which subsection (1) comes into force that makes provision in relation to collective investment schemes recognised, or seeking recognition, under section 272.

(6) In section 237(3), in the definition of “a recognised scheme”, at the end insert “ (and see also section 282C) ”.

(7) In section 392 (application of third party rights to notices)—

(a) in paragraph (a), after “280(1),” insert “ 282B(3), ”, and

(b) in paragraph (b), after “280(2),” insert “ 282B(4), ”.

(8) In section 429(2) (regulations subject to affirmative procedure), before “284A” insert “ 282C, ”.

Money market funds authorised in approved countries

26

(1) Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds is amended as follows.

(2) In Article 4 (authorisation of MMFs)—

(a) in paragraph 1, after point (a) insert—

(aa) it is authorised and supervised in a country or territory approved by regulations under Article 4A and satisfies the condition in paragraph 1ZA;

, and

(b) after paragraph 1 insert—

(1ZA) An undertaking satisfies the condition in this paragraph if the FCA has received written notification that the undertaking intends to be marketed in the United Kingdom as an MMF. (1ZB) A notification under paragraph 1ZA must— (a) be made by such person, and in such form and manner, as the FCA may direct, and (b) contain or be accompanied by such information as the FCA may direct. (1ZC) Different directions may be given under paragraph 1ZB in relation to different undertakings or categories of undertaking.

(3) After Article 4 insert—

(1) The Treasury may make regulations for the purposes of Article 4(1)(aa) approving a country or territory in relation to MMFs. (2) The Treasury may not make regulations under paragraph 1 unless satisfied that the law and practice of the country or territory imposes requirements on MMFs which have equivalent effect to the requirements imposed by this Regulation. (3) In making regulations under this Article, the Treasury may have regard to any matter that they consider relevant. (4) When considering whether to make, vary or revoke regulations under this Article, the Treasury may ask the FCA to prepare a report on the law and practice of the country or territory under which MMFs are authorised and supervised, or particular aspects of such law and practice. (5) A request for a report under paragraph 4 must be made in writing. (6) If the Treasury ask for a report under paragraph 4, the FCA must provide the Treasury with the report.

(4) In Article 6(1) (use of designation as MMF), in each subparagraph, after point (a) insert—

(aa) the UCITS or AIF is authorised and supervised in a country or territory approved by regulations under Article 4A and satisfies the condition in Article 4(1ZA); or

Provision of investment services etc in the UK

27

(1) Schedule 10 contains amendments of the Markets in Financial Instruments Regulation relating to the provision of investment services, and the performance of investment activities, in the United Kingdom by third country firms.

(2) In this section and Schedule 10, “the Markets in Financial Instruments Regulation” means Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.

Variation or cancellation of permission to carry on regulated activity

Part 4A permissions: variation or cancellation on initiative of FCA

28

Schedule 11 amends Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activities) and other provisions in that Act for connected purposes.

Rules about level of care provided by authorised persons

FCA rules about level of care provided to consumers by authorised persons

29

(1) The Financial Conduct Authority must carry out a public consultation about whether it should make general rules providing that authorised persons owe a duty of care to consumers.

(2) The consultation must include consultation about—

(a) whether the Financial Conduct Authority should make other provision in general rules about the level of care that must be provided to consumers by authorised persons, either instead of or in addition to a duty of care,

(b) whether a duty of care should be owed, or other provision should apply, to all consumers or to particular classes of consumer, and

(c) the extent to which a duty of care, or other provision, would advance the Financial Conduct Authority's consumer protection objective (see section 1C of the Financial Services and Markets Act 2000).

(3) The Financial Conduct Authority—

(a) must carry out the consultation, and publish its analysis of the responses, before 1 January 2022, and

(b) must, before 1 August 2022, make such general rules about the level of care that must be provided to consumers, or particular classes of consumer, by authorised persons as it considers appropriate, having regard to that analysis.

(4) The duties to consult under this section may be satisfied by consultation carried out after 1 January 2021 but before this section comes into force (as well as by consultation carried out after this section comes into force).

(5) In this section—

“authorised person” has the same meaning as in the Financial Services and Markets Act 2000 (see section 31 of that Act);

“consumer” has the meaning given in section 1G of that Act;

“general rules” means rules made under section 137A of that Act.

Insider dealing and money laundering etc

Insider lists and managers’ transactions

30

(1) Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse is amended as follows.

(2) In Article 18 (insider lists)—

(a) in paragraph 1, in the opening words—

(i) for “or any person” substitute “ , and any person ”, and

(ii) after “shall” insert “ each ”,

(b) in paragraph 2, in the first subparagraph—

(i) for “or any person” substitute “ , and any person ”,

(ii) after “shall” insert “ each ”, and

(iii) for “the insider list” substitute “ their insider list ”,

Where another person is requested by the issuer to draw up and update the issuer's insider list, the issuer shall remain fully responsible for complying with this Article. The issuer shall always retain a right of access to the insider list that the other person is drawing up.

(d) in paragraph 4—

(i) for “or any person” substitute “ , and any person ”, and

(ii) for “shall update the” substitute “ , shall each update their ”, and

(e) in paragraph 5—

(i) for “or any person” substitute “ , and any person ”, and

(ii) for “shall retain the” substitute “ , shall each retain their ”.

(3) In Article 19 (managers' transactions)—

(a) in paragraph 1, in the second subparagraph, for “business days” substitute “ working days ”,

(b) in paragraph 3, in the first subparagraph, for the words from the beginning to “transaction” substitute “ The issuer or emission allowance market participant must make public the information contained in a notification referred to in paragraph 1 within two working days of receipt of such a notification ”, and

(16) In this Article, “working day” means a day other than— (a) Saturday or Sunday, (b) Christmas Day or Good Friday, or (c) a day which is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971.

Maximum sentences for insider dealing and financial services offences

31

(1) In section 61(1)(b) of the Criminal Justice Act 1993 (penalty for conviction on indictment for insider dealing), for “seven years” substitute “ ten years ”.

(2) In section 92(1)(b) of the Financial Services Act 2012 (penalty for conviction on indictment for financial services offences), for “7 years” substitute “ 10 years ”.

(3) The amendment made by subsection (1) or (2) does not apply in relation to offences committed before the subsection comes into force.

(4) Where an offence is found to have been committed over a period of 2 or more days, or at some time during a period of 2 or more days, it must be taken for the purposes of subsection (3) to have been committed on the first of those days.

Money laundering offences: electronic money institutions, payment institutions and deposit-taking bodies

32

(1) Part 7 of the Proceeds of Crime Act 2002 (money laundering) is amended in accordance with subsections (2) to (6).

(2) In section 327(2C) (conversion or transfer of criminal property: exceptions), after “deposit-taking body” insert “ , electronic money institution or payment institution ”.

(3) In section 328(5) (arrangements: exceptions), after “deposit-taking body” insert “ , electronic money institution or payment institution ”.

(4) In section 329(2C) (acquisition, use and possession: exceptions), after “deposit-taking body” insert “ , electronic money institution or payment institution ”.

(5) In section 339A (threshold amounts)—

(a) in subsection (2), after “deposit-taking body” insert “ , electronic money institution or payment institution ”,

(b) in subsection (3), in the opening words, after “deposit-taking body” insert “ , electronic money institution or payment institution ”,

(d) in subsection (3)(b), for “deposit-taking body” substitute “ body or institution ”,

(e) in subsection (4), after “deposit-taking body” insert “ , electronic money institution or payment institution ”, and

(f) in subsection (8)—

(i) after “deposit-taking body” insert “ , electronic money institution or payment institution ”, and

(ii) after “the body” insert “ or institution ”.

(6) In section 340 (interpretation)—

(a) in subsection (14)—

(i) omit “or” at the end of paragraph (a), and

(ii) after paragraph (b) insert

, or (c) a person specified, or of a description specified, in regulations made by the Treasury or the Secretary of State.

(b) after subsection (14) insert—

(14A) In subsection (14)(a)— (a) the reference to the activity of accepting deposits is a reference to that activity so far as it is, for the time being, a regulated activity for the purposes of the Financial Services and Markets Act 2000 by virtue of an order under section 22 of that Act, but (b) the reference to a business which engages in that activity does not include a person specified, or of a description specified, in regulations made by the Treasury or the Secretary of State. (14B) Before making regulations under subsection (14A)(b), the Treasury or the Secretary of State (as appropriate) must consult such persons likely to be affected by the regulations, or such representatives of such persons, as they consider appropriate. (14C) “Electronic money institution” has the same meaning as in the Electronic Money Regulations 2011 (S.I. 2011/99) (see regulation 2 of those Regulations).

, and

(16) “Payment institution” means an authorised payment institution or a small payment institution (each as defined in regulation 2 of the Payment Services Regulations 2017 (S.I. 2017/752)).

(7) In section 459 of the Proceeds of Crime Act 2002 (orders and regulations)—

(a) in subsection (4), before paragraph (aa), insert—

(azb) regulations under section 340(14)(c) or (14A)(b),

(b) before subsection (6A) insert—

(6ZC) No regulations may be made by the Treasury or the Secretary of State under section 340(14)(c) or (14A)(b) unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.

, and

Forfeiture of money: electronic money institutions and payment institutions

33

(1) Schedule 12 amends provisions in the Anti-terrorism, Crime and Security Act 2001 and the Proceeds of Crime Act 2002 about the forfeiture of money so that they apply to money held in accounts maintained with electronic money institutions and payment institutions.

(2) Subject to subsection (3), the amendments made by that Schedule are to be treated as having come into force at the same time as the provisions they amend.

(3) Subsection (2) does not apply to the amendments of Part 5 of the Proceeds of Crime Act 2002 as they extend to Northern Ireland.

(4) Regulations made, before this section comes into force, under—

(a) paragraph 10X of Schedule 1 to the Anti-Terrorism, Crime and Security Act 2001, or

(b) section 303Z10 of the Proceeds of Crime Act 2002,

apply (and are to be treated as having always applied) for the purposes of notices relating to money held in accounts maintained with electronic money institutions and payment institutions, as well as for the purposes of notices relating to money held in accounts maintained with banks and building societies.

Application of money laundering regulations to overseas trustees

34

(1) Schedule 2 to the Sanctions and Anti-Money Laundering Act 2018 (money laundering and terrorist financing: further provision about section 49 regulations) is amended as follows.

(2) In paragraph 22(2) (extra-territorial application of section 49 regulations: meaning of “United Kingdom person”)—

(a) in paragraph (b), omit the “or” at the end, and

(b) after paragraph (c) insert

, or (d) a person— (i) who does not fall within any of paragraphs (a) to (c), and (ii) who is a trustee with links to the United Kingdom (see paragraph 22A).

(3) After paragraph 22 insert—

(22A) (1) Sub-paragraphs (2) and (3) have effect for the purposes of paragraph 22(2)(d). (2) A person who is a trustee of a trust has links to the United Kingdom if— (a) any property subject to the trust is situated in the United Kingdom, (b) a trustee of the trust enters into a business, professional or commercial relationship with a relevant person, or (c) the income of the trust includes income which, directly or indirectly, is from a source in the United Kingdom. (3) A person who is a trustee of a trust also has links to the United Kingdom if— (a) at least one other person is a trustee of the trust, (b) the other trustee (or at least one of the other trustees if the trust has more than two trustees) is resident in the United Kingdom, and (c) a person makes, at a time when the person is resident in the United Kingdom, a gift of property which becomes subject to the trust. (4) In this paragraph “property” has the meaning given by section 436 of the Insolvency Act 1986.

Debt respite scheme

35

(1) In section 6(2)(c) of the Financial Guidance and Claims Act 2018 (debt respite scheme), omit “and their creditors”.

(2) In section 7 of that Act (debt respite scheme: regulations), after subsection (4) insert—

(4A) The regulations may include the following as part of the scheme so far as it applies in England and Wales— (a) provision about the involvement of creditors in the process of devising a plan for the repayment of some or all of an individual's debts; (b) provision to protect an individual, during the period of a repayment plan, from being required to repay a debt to which the plan applies otherwise than in accordance with the plan; (c) provision for an amount payable in respect of a debt in accordance with a repayment plan— (i) to be payable instead towards the costs of operating the repayment plan, other repayment plans or the debt respite scheme, and (ii) to be treated, so far as paid towards those costs, as permanently reducing a debt to which the plan applies.

(3) In section 7(5) of that Act, after paragraph (b) insert—

(ba) make provision binding the Crown,

(4) The amendment in subsection (1) does not have the effect that further advice on the establishment of a debt respite scheme has to be sought, provided or published under section 6(1), (4) or (5) of the Financial Guidance and Claims Act 2018 (such advice having been sought, provided and published in accordance with those provisions before the day on which this Act is passed).

Help to save

Successor accounts for Help-to-Save savers

36

In Schedule 2 to the Savings (Government Contributions) Act 2017 (Help-to-Save accounts), after paragraph 13 insert—

(13A) (1) In this paragraph “matured account” means an account provided by the Director of Savings which has been, but has ceased to be, a Help-to-Save account. (2) Treasury regulations may make provision for, or in connection with, the transfer of the balance in a matured account to another account provided by the Director of Savings (a “successor account”). (3) Regulations under sub-paragraph (2) must require the successor account to be an account in the National Savings Bank. (4) Regulations under sub-paragraph (2) may not include provision for a transfer which overrides an instruction for dealing with the balance in a matured account where— (a) the instruction is given by, or by a person acting on behalf of, the individual for whom the matured account was opened, and (b) the Director of Savings receives the instruction before the transfer is made and considers that it is reasonably practicable to implement it. (5) Regulations under sub-paragraph (2) may make provision about the balance in a matured account opened before the regulations are made. (6) Where regulations under sub-paragraph (2) provide for a transfer from a matured account to a successor account— (a) the successor account may be a new or existing account, and (b) no charge for the transfer may be imposed on the individual for whom the matured account was opened.

Miscellaneous

Regulated activities and application of Consumer Credit Act 1974

37

(1) This section applies on or at any time after the making of an order under section 22 of the Financial Services and Markets Act 2000, after this section comes into force, which has the effect that a relevant credit activity becomes a regulated activity for the purposes of that Act.

(2) Section 107(6) of the Financial Services Act 2012 (power to make provision about the application of the Consumer Credit Act 1974) has effect as if—

(a) the reference to an order of the kind mentioned in subsection (1) of that section included an order of the kind mentioned in subsection (1) of this section, and

(b) the references to a transferred activity included a relevant credit activity which is the subject of an order of the kind mentioned in subsection (1) of this section.

(3) “Relevant credit activity” means the activity of—

(a) entering into an agreement described in article 60F(2) or (3) of the Regulated Activities Order (certain borrower-lender-supplier agreements for fixed-sum credit or running-account credit) as lender, or

(b) exercising, or having the right to exercise, the lender's rights and duties under such an agreement,

so far as the activity is not a transferred activity (as defined in section 107(1) of the Financial Services Act 2012).

(4) “The Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) as it has effect on the passing of this Act.

Amendments of the PRIIPs Regulation etc

38

(1) In this section “the PRIIPs Regulation” means Regulation (EU) No. 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs).

(2) After Article 4 of the PRIIPs Regulation insert—

(1) The FCA may make rules specifying whether or not a product, or category of product, falls within the definition of a PRIIP for the purposes of this Regulation. (2) The provisions of Part 9A of FSMA listed in paragraph 3 apply to rules made under this Article as they apply to rules made by the FCA under that Act, subject to the modifications in that paragraph (if any). (3) The provisions are— (a) section 137T (general supplementary powers), as if— (i) the reference in paragraph (a) to authorised persons were a reference to persons, and (ii) paragraph (b) were omitted; (b) section 138F (notification of rules), as if subsection (2) were omitted; (c) section 138G (rule-making instruments); (d) section 138I (consultation by the FCA), as if— (i) subsection (1)(a) (and the “and” after it) were omitted, (ii) in subsection (1)(b), “after doing so,” were omitted, (iii) in subsection (2), paragraphs (c) and (d) were omitted, and (iv) subsections (5)(b) and (10) were omitted; (e) section 138L (consultation: general exemptions), as if— (i) in subsection (1), for “Sections 138I(1)(b) and (2) to (5) and 138K do” there were substituted “ Section 138I(1)(b) and (2) to (5) does ”, (ii) subsections (2) and (4)(b) were omitted, (iii) in subsection (5)(a), “or 138J(2)(a)” were omitted, and (iv) in subsection (5)(b), “or 138J(5)(a)” were omitted; (f) section 141A (power to make consequential amendments of references to rules etc).

(3) Any requirement that arises by virtue of Article 4A(3)(d) of the PRIIPs Regulation, as inserted by subsection (2), may be satisfied by things done before that subsection comes into force (as well as by things done after that time).

(4) In paragraph 3 of Article 8 of the PRIIPs Regulation (information to be contained in key information document), in point (d)(iii), for “performance scenarios and the assumptions made to produce them” substitute “ information on performance ”.

(5) The Treasury may by regulations substitute a later date for the date that is for the time being mentioned in Article 32(1) of the PRIIPs Regulation (exemption of UCITS).

(6) The date as substituted under subsection (5) must be no later than 31 December 2026.

(7) Regulations under subsection (5) are subject to the negative procedure.

Retention of personal data under the Market Abuse Regulation

39

In Article 28 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (data protection), omit “Personal data is to be retained for a maximum period of five years.”

Over the counter derivatives: clearing and procedures for reporting

40

(1) Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (the “European Market Infrastructure Regulation”) is amended as follows.

(2) In Article 4 (clearing obligation)—

(a) after paragraph 3 insert—

(3A) Clearing members and clients which provide clearing services, whether directly or indirectly, must— (a) provide those services under fair, reasonable, non-discriminatory and transparent commercial terms, and (b) take all reasonable measures to identify, prevent, manage and monitor conflicts of interest, in particular between the trading unit and the clearing unit, that may adversely affect the fair, reasonable, non-discriminatory and transparent provision of clearing services. (3B) The duty under paragraph 3A(a)— (a) does not oblige clearing members or clients to contract, and (b) does not prevent clearing members or clients from taking steps to control the risks related to the clearing services offered. (3C) The duty to take the measures described in paragraph 3A(b) includes a duty to do so where trading and clearing services are provided by different legal entities belonging to the same group. (3D) The duties under paragraph 3A (read with paragraphs 3B and 3C) apply in relation to an undertaking with an indirect contractual arrangement with a clearing member of a CCP which enables that undertaking to clear its transactions with a CCP as they apply in relation to a client.

, and

(b) after paragraph 4 insert—

(4A) The FCA may make rules specifying the conditions under which the commercial terms referred to in paragraph 3A(a) are to be considered fair, reasonable, non-discriminatory and transparent.

(3) In Article 78 (general requirements), at the end insert—

(9) A trade repository must establish the following procedures and policies— (a) procedures for the effective reconciliation of data between trade repositories; (b) procedures to verify the completeness and correctness of the data reported; (c) policies for the orderly transfer of data to other trade repositories where requested by the counterparties or CCPs referred to in Article 9 or where otherwise necessary. (10) The FCA may make rules applying to trade repositories relating to— (a) procedures described in paragraph 9(a) and (b), (b) procedures to be applied to verify compliance by counterparties and CCPs with the reporting obligation under Article 9, and (c) policies described in paragraph 9(c).

(4) After Article 84a insert—

(1) The provisions of Part 9A of FSMA (rules and guidance) listed in paragraph 2 apply in relation to rules made by the FCA under Article 4(4A) or 78(10) as they apply in relation to rules made by the FCA under that Part of that Act, subject to the modification in paragraph 3. (2) The provisions are— (a) section 137T (general supplementary powers); (b) section 138C (evidential provision); (c) section 138E (limits on effect of contravening rules); (d) sections 138F, 138G and 138H (notification and verification etc); (e) sections 138I and 138L (consultation); (f) section 141A (power to make consequential amendments of references to rules). (3) Section 137T applies as if the reference to authorised persons were— (a) for the purposes of rules made under Article 4(4A), a reference to clearing members, clients and undertakings described in Article 4(3D), and (b) for the purposes of rules made under Article 78(10), a reference to trade repositories.

(5) The requirements of section 138I of the Financial Services and Markets Act 2000, in so far as they apply in connection with rules made under Article 4(4A) or 78(10) of the European Market Infrastructure Regulation, may be satisfied by things done before the relevant provision of this section comes into force (as well as by things done after that time).

Regulations about financial collateral arrangements

41

(1) The Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226) as originally made, and all amendments made to them, have effect, and are to be treated as having had effect, despite any lack of power to make the regulations and amendments.

(2) Accordingly, the validity of anything done under or in reliance on those regulations (whether as originally made or as amended) is to be treated as unaffected by any such lack of power.

(3) The Banking Act 2009 is amended in accordance with subsections (4) to (6).

(4) In section 255 (regulations about financial collateral arrangements)—

(a) in subsection (3)(b) omit “or purported to be done”,

(b) omit subsection (5), and

(6) Regulations under this section are to be made by statutory instrument. (7) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. (8) Section 41 of the Financial Services Act 2021 makes further provision in relation to the Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226).

(5) Omit section 256 (procedure for making regulations under section 255).

(6) In the table in section 259(3) (procedure applying to statutory instruments), in the entry for section 255, for “affirmative resolution” substitute “ draft affirmative resolution ”.

Appointment of chief executive of FCA

42

(1) Schedule 1ZA to the Financial Services and Markets Act 2000 (Financial Conduct Authority) is amended as follows.

(2) In paragraph 2A—

(a) after sub-paragraph (1) insert—

(1A) Appointment as chief executive under paragraph 2(2)(b) is to be for a period of 5 years.

, and

(b) in sub-paragraph (2), for “Sub-paragraph (1) does” substitute “ Sub-paragraphs (1) and (1A) do ”.

(3) After paragraph 2A insert—

(2B) (1) A person may not be appointed as chief executive under paragraph 2(2)(b) more than twice. (2) For this purpose an appointment as chief executive on an acting basis, pending a further appointment being made, is to be ignored.

Subordinate legislation made under retained direct EU legislation

43

(1) The Financial Services and Markets Act 2000 is amended as follows.

(2) In section 425C (“qualifying provision”)—

(a) the existing text becomes subsection (1),

(b) after paragraph (b) of that subsection insert—

(ba) other subordinate legislation made under retained direct EU legislation;

(d) after that subsection insert—

(2) In this section, “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (see section 21 of that Act).

(3) In paragraph 8(3) of Schedule 1ZA (Financial Conduct Authority's arrangements for discharging functions: legislative functions), in paragraph (a), after “rules” insert “ under this Act or under retained direct EU legislation ”.

Payment services and the provision of cash

44

In Part 2 of Schedule 1 to the Payment Services Regulations (S.I. 2017/752) (activities which do not constitute payment services), after paragraph 2 insert—

(3) (1) The provision of cash otherwise than through an automatic teller machine does not constitute a payment service where— (a) there is a transfer of a corresponding amount from a payment account held by the recipient of the cash to a relevant person, and (b) the payment account is not provided by a relevant person. (2) In sub-paragraph (1), “relevant person” means— (a) where the cash is provided by a person (“P1”) through one or more persons acting on P1's behalf, P1 and each person acting (directly or indirectly) on P1's behalf; (b) where the cash is provided by a person (“P2”) otherwise than on behalf of another person or through one or more persons acting on P2's behalf, P2. (3) The execution of the transfer referred to in sub-paragraph (1)(a), and other services enabling that transfer, are not excluded from the meaning of payment services by this paragraph.

General

Power to make consequential provision

45

(1) The Treasury may by regulations make provision that is consequential on any provision made by this Act.

(2) The Secretary of State may by regulations make provision that is consequential on provision made by section 32 or 33 or Schedule 12.

(3) Regulations under this section may—

(a) make different provision for different purposes;

(b) include transitional, transitory or saving provision;

(4) Regulations under this section are subject to the affirmative procedure if they amend, repeal or revoke any provision of—

(a) an Act,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) an Act of the Scottish Parliament, or

(e) Northern Ireland legislation.

(5) Regulations under this section to which subsection (4) does not apply are subject to the negative procedure.

Regulations

46

(1) Regulations under this Act are to be made by statutory instrument.

(2) Where regulations under this Act are subject to “the negative procedure”, the statutory instrument containing the regulations is subject to annulment in pursuance of a resolution of either House of Parliament.

(3) Where regulations under this Act are subject to “the affirmative procedure”, the regulations may not be made unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of each House of Parliament.

(4) Any provision that may be included in regulations under this Act subject to the negative procedure may be made by regulations subject to the affirmative procedure.

Interpretation

47

In this Act—

“the Benchmarks Regulation” means Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds;

“the Capital Requirements Regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms;

“enactment” includes— assimilated direct legislation,an enactment comprised in subordinate legislation,an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament, andan enactment comprised in, or in an instrument made under, Northern Ireland legislation;

“subordinate legislation” has the same meaning as in the Interpretation Act 1978 (see section 21 of that Act).

Extent

48

(1) This Act extends to England and Wales, Scotland and Northern Ireland, subject to subsection (2).

(2) In section 35—

(a) subsections (1), (2) and (4) extend to England and Wales only, and

(b) subsection (3) extends to England and Wales and Northern Ireland only.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The power under section 79(10) of the Criminal Justice Act 1993 may be exercised so as to extend to any of the British overseas territories the amendment of that Act made by section 31 of this Act (with or without exceptions or modifications).

(5) The power under section 430(3) of the Financial Services and Markets Act 2000 may be exercised so as to extend to any of the Channel Islands or the Isle of Man any amendment or repeal made by or under this Act of any part of that Act (with or without modifications).

Commencement and transitional provision

49

(1) This section and the following provisions come into force on the day on which this Act is passed—

(a) section 33 and Schedule 12, except for paragraphs 10 to 21 of that Schedule as they extend to Northern Ireland,

(b) section 36,

(d) section 45,

(e) section 46,

(f) section 47,

(g) section 48, and

(h) section 50.

(2) The following provisions come into force at the end of the period of two months beginning with the day on which this Act is passed—

(a) section 30,

(b) section 32,

(d) section 42, and

(e) section 44.

(3) Paragraphs 10 to 21 of Schedule 12 as they extend to Northern Ireland come into force on such day as the Treasury or the Secretary of State may by regulations appoint.

(4) Section 34 comes into force on such day as the Treasury or the Secretary of State may by regulations appoint.

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

(6) Regulations under subsection (3), (4) or (5) may appoint different days for different purposes.

(7) The Treasury or the Secretary of State may by regulations make transitional, transitory or saving provision in connection with the coming into force of a provision of this Act.

(8) Regulations under subsection (7) may make different provision for different purposes.

Short title

50

This Act may be cited as the Financial Services Act 2021.

SCHEDULE 1

PART 1 — Amendments of the Capital Requirements Regulation

1

The Capital Requirements Regulation is amended as follows.

2

(1) Article 4(1) (definitions) is amended as follows.

(2) Omit point (4) (definition of “local firm”).

(3) After point (22) insert—

(22A) ‘investment holding company’ means a financial institution which is not a financial holding company and whose subsidiaries— (a) are exclusively or mainly investment firms or financial institutions, and (b) include at least one investment firm;

(4) In point (26) (definition of “financial institution”)—

(a) after “including” insert “ an investment firm, ”, and

(b) after “a mixed financial holding company,” insert “ an investment holding company, ”.

(5) For point (29a) substitute—

(29a) ‘UK parent investment firm’ means a parent undertaking in the United Kingdom that is an investment firm;

(6) For point (51) substitute—

(51) ‘initial capital’, in relation to an institution, means the amount and types of own funds specified in rule 12.1 of the Definition of Capital Part of the PRA rulebook;

(7) In point (60) (definition of “cash assimilated instrument”), after “institution” (in each place) insert “ or investment firm ”.

3

(1) Article 4A (definitions: regulators' rules) is amended as follows.

(2) In paragraph 1(b) (references to FCA sourcebook), for “as the sourcebook has effect on IP completion day” substitute “ as amended from time to time ”.

(3) At the end insert—

(3) In this Regulation, “Part 9C rules” has the same meaning as in FSMA (see section 417 of that Act).

4

For Article 4B substitute—

The consolidating supervisor is the PRA.

5

Before Article 11 (and the Section and Chapter headings before it) insert—

For the purposes of the application of this Chapter, FCA investment firms are to be considered to be UK parent financial holding companies where they are parent undertakings of an institution.

6

Omit Article 15 (derogation from the application of own funds requirements on a consolidated basis for groups of investment firms).

7

Omit Article 16 (derogation from the application of the leverage ratio requirements on a consolidated basis for groups of investment firms).

8

Omit Article 17 (supervision of investment firms waived from the application of own funds requirements on a consolidated basis).

9

In Article 47c(5) (deduction for non-performing exposures), omit “and the FCA”.

10

In Article 49(6) (requirement for deduction where consolidation, supplementary supervision or institutional protection schemes are applied) omit “and Annex 1 of Chapter 3 of the FCA General Prudential sourcebook”.

11

(1) Article 81(1)(a) (minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital) is amended as follows.

(2) After point (ii) insert—

(iia) an intermediate financial holding company or intermediate mixed financial holding company that is subject to the requirements of this Regulation on a sub-consolidated basis; (iib) an intermediate investment holding company that is subject to the requirements of Part 9C rules on a consolidated basis; (iic) an FCA investment firm;

(3) In point (iii)—

(a) after “subject to prudential requirements” insert “ which are ”,

(b) for “where” substitute “ which ”, and

12

(1) Article 82(a) (Qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds) is amended as follows.

(2) After point (ii) insert—

(iia) an intermediate financial holding company or intermediate mixed financial holding company that is subject to the requirements of this Regulation on a sub-consolidated basis; (iib) an intermediate investment holding company that is subject to the requirements of Part 9C rules on a consolidated basis; (iic) an FCA investment firm;

(3) In point (iii)—

(a) after “subject to prudential requirements” insert “ which are ”,

(b) for “where” substitute “ which ”, and

13

(1) Article 84 (minority interests included in consolidated Common Equity Tier 1 capital) is amended as follows.

(2) In paragraph 1(a), for point (i) substitute—

(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following: (A) the sum of the requirement laid down in point (a) of Article 92(1), the requirements referred to in Articles 458, 459 and 500, the specific own funds requirements referred to in regulation 34 of the Capital Requirements Regulations 2013, the combined buffer requirement defined in regulation 2 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, and any additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, or (B) where the subsidiary is an FCA investment firm, the sum of the own funds requirements set out in Part 9C rules which apply to the subsidiary and any requirements set out in additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital;

(3) In paragraph 3—

(a) for “a competent authority” substitute “ the PRA ”, and

(b) for “interest” substitute “ interests ”.

(4) After paragraph 3 insert—

(3A) Where Part 9C rules provide that, in relation to any subsidiaries which are FCA investment firms, the calculation referred to in paragraph 1 is to be undertaken on a consolidated basis so as to include those subsidiaries, minority interests within those subsidiaries shall not be recognised in own funds at the sub-consolidated or consolidated level, as applicable.

14

(1) Article 85 (qualifying Tier 1 instruments included in consolidated Tier 1 capital) is amended as follows.

(2) In paragraph 1(a), for point (i) substitute—

(i) the amount of Tier 1 capital of the subsidiary required to meet the following: (A) the sum of the requirement laid down in point (b) of Article 92(1), the requirements referred to in Articles 458, 459 and 500, the specific own funds requirements referred to in regulation 34 of the Capital Requirements Regulations 2013, the combined buffer requirement defined in regulation 2 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, and any additional local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, or (B) where the subsidiary is an FCA investment firm, the sum of the own funds requirements set out in Part 9C rules which apply to the subsidiary and any requirements set out in additional local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital;

(3) In paragraph 3, for “a competent authority” substitute “ the PRA ”.

(4) After paragraph 3 insert—

(3A) Where Part 9C rules provide that, in relation to any subsidiaries which are FCA investment firms, the calculation referred to in paragraph 1 is to be undertaken on a consolidated basis so as to include those subsidiaries, Tier 1 instruments within those subsidiaries shall not be recognised in own funds at the sub-consolidated or consolidated level, as applicable.

15

(1) Article 87 (qualifying own funds included in consolidated own funds) is amended as follows.

(2) In paragraph 1(a), for point (i) substitute—

(i) the amount of own funds of the subsidiary required to meet the following— (A) the sum of the requirement laid down in point (c) of Article 92(1), the requirements referred to in Articles 458, 459 and 500, the specific own funds requirements referred to in regulation 34 of the Capital Requirements Regulations 2013, the combined buffer requirement defined in regulation 2 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, and any additional local supervisory regulations in third countries, or (B) where the subsidiary is an FCA investment firm, the sum of the own funds requirements set out in Part 9C rules which apply to the subsidiary and any requirements set out in additional local supervisory regulations in third countries;

(3) In paragraph 3, for “a competent authority” substitute “ the PRA ”.

(4) After paragraph 3 insert—

(3A) Where Part 9C rules provide that, in relation to any subsidiaries which are FCA investment firms, the calculation referred to in paragraph 1 is to be undertaken on a consolidated basis so as to include those subsidiaries, own funds instruments within those subsidiaries shall not be recognised in own funds at the sub-consolidated or consolidated level, as applicable.

16

In Article 93 (initial capital requirement on going concern)—

(a) omit paragraph 3,

(b) in paragraphs 4 and 5, omit “or 3”, and

17

Omit Article 95 (own funds requirements for investment firms with limited authorisation to provide investment services).

18

Omit Article 96 (own funds requirements for IFPRU 730k firms).

19

Omit Article 97 (own funds based on fixed overheads).

20

Omit Article 98 (own funds for investment firms on a consolidated basis).

21

In Article 100 (additional reporting requirements), in the second subparagraph, for “The FCA or the PRA (as the case may be)” substitute “ The PRA ”.

22

In Article 115(2) (exposures to regional governments or local authorities), in the second subparagraph, omit “and FCA”.

23

In Article 119 (exposures to institutions), after paragraph 5 insert—

(6) For the purposes of paragraph 5, the requirements laid down in Part 9C rules are to be treated as being comparable to those applied to institutions in terms of robustness.

24

(1) Article 136 (mapping of ECAI's credit assessments) is amended as follows.

(2) In paragraph 1, for “The FCA and the PRA may each” substitute “ The PRA may ”.

(3) In paragraph 2—

(a) for “the FCA and the PRA”, in each place it occurs, substitute “ the PRA ”, and

(b) in point (e), for “have” substitute “ has ”.

(4) In paragraph 3, for “The FCA and the PRA may each” substitute “ The PRA may ”.

25

In Article 162(3) (maturity), in the second subparagraph, in point (a), after “institutions” insert “ or investment firms ”.

26

(1) Article 197 (eligibility of collateral under all approaches and methods) is amended as follows.

(2) In paragraph 1(c), after “issued by institutions” insert “ or investment firms ”.

(3) In paragraph 4, after “other institutions” insert “ or investment firms ”.

27

In Article 199(8) (additional eligibility for collateral under the IRB Approach), omit “and the FCA”.

28

In Article 200 (other funded credit protection), for point (c) substitute—

(c) instruments issued by a third party institution, or an investment firm, which will be repurchased by that institution, or that investment firm, on request.

29

In Article 202 (eligibility of protection providers under the IRB Approach which qualify for Article 153(3) treatment), after “institutions,” insert “ investment firms, ”.

30

In Article 224(6) (supervisory volatility adjustment under Financial Collateral Comprehensive Method), after “institutions”, in the first place it occurs, insert “ or investment firms ”.

31

In Article 227(3) (conditions for applying 0% volatility adjustment under Financial Collateral Comprehensive Method), after point (b) insert—

(ba) investment firms;

32

In Article 243(1) (criteria for STS securitisations qualifying for differentiated capital treatment), in the second subparagraph, after “an institution,” insert “ an investment firm, ”.

33

(1) Article 270e (securitisation mapping) is amended as follows.

(2) For “The FCA and the PRA may each” substitute “ The PRA may ”.

(3) For the words from “For” to “shall” substitute “ For the purposes of this Article, the PRA shall ”.

34

In Article 290(3) (stress testing), for the words from “the relevant regulatory rules” to the end substitute “ rule 6.1 of the Internal Capital Adequacy Part of the PRA rulebook ”.

35

(1) Article 304(5) (treatment of clearing members' exposure to clients) is amended as follows.

(2) In the first subparagraph, for “The FCA and the PRA may each” substitute “ The PRA may ”.

(3) In the second subparagraph, for “the FCA or the PRA (as the case may be)” substitute “ the PRA ”.

36

(1) Article 325u(5) (own funds requirements for residual risks) is amended as follows.

(2) In the first subparagraph, for “The FCA and PRA may each” substitute “ The PRA may ”.

(3) In the second subparagraph, for “the FCA and PRA” substitute “ the PRA ”.

37

(1) Article 325az (alternative internal model approach and permission to use alternative internal models) is amended as follows.

(2) In paragraph 8, for “The FCA and PRA may each” substitute “ The PRA may ”.

(3) In paragraph 9—

(a) for “The FCA and the PRA may each” substitute “ The PRA may ”, and

(b) for “they” substitute “ it ”.

38

(1) Article 325bk(3) (calculation of stress scenario risk measure) is amended as follows.

(2) In the first subparagraph, for “The FCA and PRA may each” substitute “ The PRA may ”.

(3) In the second subparagraph, for “the FCA and PRA” substitute “ the PRA ”.

39

In Article 382(4) (scope of own funds requirements for CVA risk), in point (b), for “institutions” substitute “ entities ”.

40

(1) Article 441(2) (indicators of global systemic importance) is amended as follows.

(2) For “The FCA and the PRA may each” substitute “ The PRA may ”.

(3) For “the FCA or the PRA (as the case may be)” substitute “ the PRA ”.

41

In Article 450(1)(d) (remuneration policy) omit “19A.3.44R to 44DR and”.

42

In Article 456(1) (regulations modifying this Regulation) omit points (f) and (g).

43

(1) Article 464B (power to make technical standards) is amended as follows.

(2) Omit paragraph 1.

(3) In paragraph 2, for “the PRA and FCA may both” substitute “ the PRA may ”.

(4) In paragraph 3 omit “alone”.

44

In Article 522(1)(b) (savings provisions: pre-exit decisions)—

(a) omit “and FCA”, and

(b) omit the words from “in relation to” to “other person”.

45

In Annex 1 (classification of off-balance sheet items), in point 1(d), at the end insert “ or an investment firm ”.

46

(1) Annex 3 (items subject to supplementary reporting of liquid assets) is amended as follows.

(2) In point 3(b), for “of an institution or any of its affiliated entities” substitute “ of, or of an affiliated entity of, an institution or an investment firm ”.

(3) In point 5(b), for “of an institution or any of its affiliated entities” substitute “ of, or of an affiliated entity of, an institution or an investment firm ”.

(4) In point 6(a), for “on an SSPE, an institution or any of its affiliated entities” substitute “ on, or on an affiliated entity of, an SSPE, an institution or an investment firm ”.

(5) In point 7, for “on an SSPE, an institution or any of its affiliated entities” substitute “ on, or on an affiliated entity of, an SSPE, an institution or an investment firm ”.

(6) In point 11, for “by an institution or any of its affiliates” substitute “ by, or by an affiliate of, an institution or an investment firm ”.

47

In the following provisions, for “FCA and PRA may each” or “FCA and the PRA may each” (as appropriate) substitute “ PRA may ”

Article 4(4);

Article 18(9);

Article 26(4);

Article 27(2);

Article 28(5);

Article 29(6);

Article 32(2);

Article 33(4);

Article 36(2), (3) and (4);

Article 41(2);

Article 52(2);

Article 73(7);

Article 76(4);

Article 78(5);

Article 79(2);

Article 83(2);

Article 84(4);

Article 99(5), first subparagraph;

Article 99(6), second subparagraph;

Article 101(4);

Article 105(14);

Article 110(4);

Article 132a(4);

Article 143(5);

Article 144(2);

Article 148(6);

Article 150(3);

Article 152(5);

Article 153(9);

Article 164(8);

Article 173(3);

Article 178(6);

Article 180(3);

Article 181(3);

Article 182(4);

Article 183(6);

Article 194(10);

Article 197(8);

Article 221(9);

Article 248(1), second subparagraph;

Article 255(9);

Article 270a(2);

Article 277(5);

Article 279a(3);

Article 312(4);

Article 314(5);

Article 316(3);

Article 318(3);

Article 325(9);

Article 325w(8);

Article 325ap(3);

Article 325bd(7);

Article 325be(3);

Article 325bf(9);

Article 325bg(4);

Article 325bp(12);

Article 329(3);

Article 341(3);

Article 344(1);

Article 352(6);

Article 354(3);

Article 358(4), first subparagraph;

Article 363(4);

Article 382(5);

Article 383(7);

Article 430b(6);

Article 434a, first subparagraph;

Article 437(2);

Article 440(2);

Article 443;

Article 451(2);

Article 487(3);

Article 492(5).

PART 2 — Amendments of the Capital Requirements (Country-by-Country Reporting) Regulations 2013

48

The Capital Requirements (Country-by-Country Reporting) Regulations 2013 (S.I. 2013/3118) are amended as follows.

49

(1) Regulation 1(2) (interpretation) is amended as follows.

(2) For the definition of “capital requirements regulation” substitute—

“the capital requirements regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012;

(3) After that definition insert—

“FCA investment firm” has the same meaning as in Part 9C of the 2000 Act;

“financial institution” has the meaning given in Article 4(1)(26) of the capital requirements regulation;

(4) After the definition of “period of account” insert—

“Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544); “relevant FCA investment firm” has the meaning given in paragraph (2A); “small and non-interconnected firm” has the meaning given in rules made by the Financial Conduct Authority for the purposes of Part 9C of the 2000 Act;

50

In regulation 1, after paragraph (2) insert—

(2A) For the purposes of these Regulations, an FCA investment firm is “relevant” if— (a) it has a branch or subsidiary in a country or territory outside the United Kingdom that is a financial institution, and (b) it is not a small and non-interconnected firm, subject to paragraphs (2B) and (2C). (2B) Where an FCA investment firm which has not been a small and non-interconnected firm for a period becomes a small and non-interconnected firm, it only ceases to be a relevant FCA investment firm once— (a) it has been a small and non-interconnected firm for a continuous period of six months, and (b) it has notified the Financial Conduct Authority. (2C) Where an FCA investment firm which has been a small and non-interconnected firm for a period determines that it is no longer a small and non-interconnected firm— (a) it must notify the Financial Conduct Authority, and (b) it does not become a relevant FCA investment firm until— (i) the end of the period of 12 months beginning with the day on which it made the determination, or (ii) if the notification specifies an earlier date, that date.

51

In regulation 1(3) (interpretation of references to EU legislation), for “any EU regulation,” substitute “ any EU regulation other than the capital requirements regulation or to any ”.

52

(1) Regulation 2 (ongoing reporting obligation) is amended as follows.

(2) In paragraph (1), after “Institutions” insert “ and relevant FCA investment firms ”.

(3) In paragraph (2), after “institution” insert “ or relevant FCA investment firm ”.

(4) In paragraph (3), for “institution's period of account” substitute “ period of account for the institution or relevant FCA investment firm ”.

(5) In paragraph (4)—

(a) in the opening words, after “institution” insert “ or relevant FCA investment firm ”, and

(b) in sub-paragraph (a), after “institution” insert “ or relevant FCA investment firm ”.

(6) In paragraph (8), after “institution” insert “ or relevant FCA investment firm ”.

53

In regulation 3(1) (interim reporting obligation), after “Institutions” insert “ and relevant FCA investment firms ”.

54

(1) Regulation 4 (group disclosure) is amended as follows.

(2) In paragraph (1), after “institution” insert “ or relevant FCA investment firm ”.

(3) In paragraph (2), after “institution” insert “ or relevant FCA investment firm ”.

55

(1) Regulation 5 (prior disclosure: prevention of duplication) is amended as follows.

(2) In paragraph (3)—

(a) after “an institution” insert “ or relevant FCA investment firm ”, and

(b) after “the institution” (in both places) insert “ or firm ”.

(3) In paragraph (4)—

(a) after “an institution” insert “ or relevant FCA investment firm ”, and

(b) after “the institution” (in both places) insert “ or firm ”.

56

In regulation 6(2) (enforcement)—

(a) in sub-paragraph (a) omit “which is a PRA-authorised person within the meaning of section 2B(5) of the 2000 Act”, and

(b) in sub-paragraph (b), for “any other institution” substitute “ a relevant FCA investment firm ”.

SCHEDULE 2

PART 1 — New Part 9C of the Financial Services and Markets Act 2000

1

In the Financial Services and Markets Act 2000, after Part 9B insert—

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