A bill to Make provision about the regulation of financial services and markets; and for connected purposes.
Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part 1 — Consumers and credit unions¶
1 Consumer credit¶
2 Credit union common bond¶
3 Access to banking services¶
Part 2 — Complaints and consumer redress¶
The ombudsman scheme¶
4 The Financial Ombudsman¶
.the Financial Ombudsman has the meaning given in section 225(1);
;Part 1A — The Financial Ombudsman
Appointment of the Financial Ombudsman
1A (1) The Financial Ombudsman is to be appointed by the scheme operator with the approval of the Treasury. (2) The scheme operator may not appoint a person as the Financial Ombudsman unless the scheme operator is satisfied that the person has appropriate qualifications and experience to perform the functions of the Financial Ombudsman. (3) The Financial Ombudsman may be appointed on such terms (including terms as to the duration and termination of their appointment and as to remuneration) as the scheme operator considers are— (a) consistent with the independence of the person appointed, and (b) otherwise appropriate. (4) Appointment as the Financial Ombudsman does not confer the status of Crown servant. Exercise of functions by members of staff
1B Any function of the Financial Ombudsman may be performed by any member of staff made available to the Financial Ombudsman by the scheme operator who is authorised for that purpose by the Financial Ombudsman.
(d) the Financial Ombudsman.
5 Appointment of chair of scheme operator¶
(1A) The chair is to be appointed by the Treasury. (1B) A person appointed as the chair— (a) is to be appointed for an initial period of three years; (b) may be re-appointed for one further period of three years beginning with the end of the initial period; (c) may resign their appointment by notice in writing to the Treasury; (d) may be removed from office by the Treasury before the end of the period for which they are appointed— (i) on the grounds of incapacity or serious misconduct, or (ii) on the grounds that in all the circumstances their financial or other interests are such as to have a material effect on the extent of the functions that it would be proper for them to discharge. (1C) The terms of the chair’s appointment must be such as to secure their independence from the Treasury and the FCA in the operation of the scheme.
6 Time limits for making complaints under the compulsory jurisdiction¶
(1A) The “applicable time limit” is the earlier of— (a) the end of the period of ten years beginning with the act or omission to which the complaint relates, and (b) a time determined in accordance with the rules (which may provide for different times in relation to different cases). (1B) But the rules may provide in specified circumstances for the applicable time limit to be a later time.
7 Referral of matters to the FCA¶
Referral of matters to the FCA
227A Referral of matters to the FCA
(1) The Financial Ombudsman must notify the FCA of a matter relating to a complaint under the ombudsman scheme if the Financial Ombudsman considers that— (a) the matter has, or has the potential to have, significant implications in relation to the functioning of relevant markets, and (b) any conditions specified in regulations under subsection (3) are met. (2) The Financial Ombudsman must request an opinion from the FCA as to the interpretation of rules made by the FCA if the Financial Ombudsman considers that— (a) the interpretation of those rules is relevant to the determination of a complaint under the ombudsman scheme, (b) the rules are ambiguous as to how they apply to the complaint, and (c) any conditions specified in regulations under subsection (3) are met. (3) The Treasury may by regulations specify conditions that must be met for the Financial Ombudsman to be required to give notice under subsection (1) or make a request under subsection (2). (4) On receiving notice of a matter under subsection (1), the FCA must consider— (a) whether the matter has, or has the potential to have, significant implications in relation to the functioning of relevant markets; (b) whether the matter raises an issue of law, and, if so, whether to make an application to the court to decide the issue (where the FCA would otherwise have standing to make such an application). (5) On receiving a request relating to a complaint under subsection (2), the FCA must consider— (a) whether any matter relating to the complaint has, or has the potential to have, significant implications in relation to the functioning of relevant markets; (b) whether any matter relating to the complaint raises an issue of law, and, if so, whether to make an application to the court to decide the issue (where the FCA would otherwise have standing to make such an application). (6) In considering whether a matter has, or has the potential to have, significant implications in relation to the functioning of relevant markets, the FCA must consider whether to consult one or more of— (a) the FCA Practitioner Panel, (b) the Smaller Business Practitioner Panel, (c) the Markets Practitioner Panel, (d) the Consumer Panel, and (e) the Listing Authority Advisory Panel. (7) Section 227B makes provision about how the FCA is to respond to a notice under subsection (1). (8) Section 227C makes provision about how the FCA is to respond to a request under subsection (2). (9) In this section and sections 227B and 227C— (a) “relevant markets” has the meaning given by section 1F; (b) “rules” includes rules made by the FCA under another enactment. 227B Response by FCA to notice of significant implications
(1) This section applies if the Financial Ombudsman notifies the FCA under section 227A(1) of a matter relating to a complaint under the ombudsman scheme. (2) If the FCA considers that the matter has, or has the potential to have, significant implications in relation to the functioning of relevant markets, the FCA— (a) must give notice of that fact to the Financial Ombudsman, and (b) may direct the Financial Ombudsman not to determine the complaint until the direction is revoked. (3) If the FCA makes an application to the court to decide an issue of law it considers to be raised by the matter, the FCA— (a) must give notice of the application to the Financial Ombudsman, and (b) may direct the Financial Ombudsman not to determine the complaint until the direction is revoked. (4) The FCA is not otherwise required to respond to the Financial Ombudsman’s notice. (5) A direction under subsection (2)(b) or (3)(b) may be revoked by notice at any time. (6) If, having given notice to the Financial Ombudsman under subsection (2)(a), the FCA does not intend to take any further action in relation to the matter apart from giving an opinion requested under section 227A(2) (if any), the FCA— (a) must give notice of that fact to the Financial Ombudsman, and (b) must revoke any direction given under subsection (2)(b) (if not previously revoked). (7) If, having given notice to the Financial Ombudsman under subsection (3)(a), the application is finally decided, the FCA— (a) must give notice of the decision to the Financial Ombudsman, (b) must revoke any direction given under subsection (3)(b) (if not previously revoked), and (c) must consider whether any changes are required to rules made or guidance given by the FCA as a result of the decision. (8) The application is finally decided— (a) if the decision on the application is not appealed against, when the period for bringing an appeal ends; (b) if the decision on the application is appealed against and not set aside in consequence of the appeal, when the appeal is disposed of by the appeal being decided and the time for bringing a subsequent appeal (if any) expires. 227C Response by FCA to request for opinion about rules
(1) This section applies if the Financial Ombudsman makes a request to the FCA under section 227A(2) for an opinion as to the interpretation of rules made by the FCA in relation to a complaint under the ombudsman scheme. (2) If— (a) the FCA does not consider that any matter relating to the complaint has, or has the potential to have, significant implications in relation to the functioning of relevant markets, and (b) the FCA— the FCA must give the opinion requested to the Financial Ombudsman.(i) does not consider any issue of law to be raised by any matter relating to the complaint, or (ii) does not make any application to the court to decide any such issue, (3) If the FCA considers that a matter relating to the complaint has, or has the potential to have, significant implications in relation to the functioning of relevant markets, the FCA— (a) must give notice of that fact to the Financial Ombudsman, and (b) may direct the Financial Ombudsman not to determine the complaint until the direction is revoked. (4) If the FCA makes an application to the court to decide an issue of law it considers to be raised by a matter relating to the complaint, the FCA— (a) must give notice of the application to the Financial Ombudsman, and (b) may direct the Financial Ombudsman not to determine the complaint until the direction is revoked. (5) A direction under subsection (3)(b) or (4)(b) may be revoked by notice at any time. (6) The FCA may, despite giving notice under subsection (3)(a) or (4)(a), give the opinion requested to the Financial Ombudsman at any time. (7) If, having given notice to the Financial Ombudsman under subsection (3)(a), the FCA does not intend to take any further action in relation to the matter apart from giving an opinion requested under section 227A(2), the FCA— (a) must give notice of that fact to the Financial Ombudsman, (b) must revoke any direction given under subsection (3)(b) (if not previously revoked), and (c) must give the opinion requested to the Financial Ombudsman (if not previously given). (8) If, having given notice to the Financial Ombudsman under subsection (4)(a), the application is finally decided, the FCA— (a) must give notice of the decision to the Financial Ombudsman, (b) must revoke any direction given under subsection (4)(b) (if not previously revoked), (c) must give an opinion to the Financial Ombudsman as to any implications of the decision, and (d) must consider whether any changes are required to rules made or guidance given by the FCA as a result of the decision. (9) The application is finally decided— (a) if the decision on the application is not appealed against, when the period for bringing an appeal ends; (b) if the decision on the application is appealed against and not set aside in consequence of the appeal, when the appeal is disposed of by the appeal being decided and the time for bringing a subsequent appeal (if any) expires. (10) An opinion given under subsection (2), (6) or (7)(c) must explain how the FCA interpreted the rules at the time at which the act or omission complained of occurred in relation to any matter that is relevant to the complaint. (11) An opinion given under subsection (8)(c) must explain how, had the decision been made before the time at which the act or omission complained of occurred, the FCA would have interpreted the rules at that time in relation to any matter that is relevant to the complaint. (12) Nothing in an opinion given under this section is to be treated as guidance given by the FCA for any purpose under this Act. 227D Power of Treasury to make provision about responses by FCA
(1) The Treasury may by regulations require the FCA to give notice or an opinion under section 227B or 227C at or before a time specified in the regulations. (2) The Treasury may by regulations— (a) require the FCA to give one or more interim responses to the Financial Ombudsman before giving notice or an opinion under section 227B or 227C; (b) require the FCA to do so at or before a time specified in the regulations. (3) Regulations under subsection (1) or (2)(b) may specify different times in different circumstances.
;(3ZA) The scheme operator must make scheme rules— (a) allowing a complainant or respondent to a complaint under the compulsory jurisdiction to ask the Financial Ombudsman to give notice or make a request to the FCA under section 227A in relation to that complaint, and (b) where a complainant or respondent to a complaint under the compulsory jurisdiction has asked the Financial Ombudsman to give such notice or make such a request, requiring the Financial Ombudsman to decide whether or not the Financial Ombudsman is required to do so under that section.
Voluntary jurisdiction rules: referrals to the FCA
19A The scheme operator must make voluntary jurisdiction rules— (a) allowing a complainant or respondent to a complaint under the voluntary jurisdiction to ask the Financial Ombudsman to give notice or make a request to the FCA under section 227A in relation to that complaint, and (b) where a complainant or respondent to a complaint under the voluntary jurisdiction has asked the Financial Ombudsman to give such notice or make such a request, requiring the Financial Ombudsman to decide whether or not the Financial Ombudsman is required to do so under that section.
8 Determination of complaints under the compulsory jurisdiction¶
(2) A complaint may be determined in favour of the complainant only if, in the opinion of the Financial Ombudsman— (a) at the time the disputed act or omission occurred, either— (i) the act or omission did not comply with an FCA rule applying to the respondent, or (ii) there was no FCA rule applying to the respondent that related to the act or omission, and (b) the disputed act or omission was not fair and reasonable in all the circumstances of the case. Section 228A makes further provision in relation to this subsection.
228A Determination under the compulsory jurisdiction: further provision
(1) This section applies for the purposes of section 228(2) (test for determining complaints under the compulsory jurisdiction in favour of the complainant). (2) “The disputed act or omission” means the act or omission to which the complaint relates. (3) “FCA rule” means any rule made by the FCA, whether under this Act or another enactment. (4) In determining whether an FCA rule applied to the respondent or related to the disputed act or omission, or whether the disputed act or omission did not comply with an FCA rule, the Financial Ombudsman must (to the extent relevant) take into account— (a) any law relating to the act or omission; (b) any opinion given by the FCA under section 227C relating to the FCA rule; (c) anything else published by the FCA relating to the FCA rule; (d) any other matters specified in regulations made by the Treasury. (5) In determining whether the disputed act or omission was fair and reasonable in all the circumstances of the case, the Financial Ombudsman must (to the extent relevant) take into account— (a) the effect that the act or omission had on the complainant and the respondent; (b) the effect that the respondent acting differently (or, as the case may be, not acting) would have had on the complainant and the respondent; (c) the general principle that consumers (within the meaning given by section 1G) should take responsibility for their decisions; (d) any law relating to the act or omission; (e) anything published by the FCA or other regulators (including rules, guidance or standards) relating to the act or omission; (f) any voluntary codes of practice relating to the act or omission, to the extent they applied to the respondent; (g) any other matters specified in regulations made by the Treasury.
9 General reports by the scheme operator and FCA¶
In Part 16 of the Financial Services and Markets Act 2000 (the ombudsman scheme), after section 230A insert—230B General reports
(1) The scheme operator and the FCA must, at such times as they consider appropriate, jointly publish a report about matters relating to the ombudsman scheme. (2) The report may include such information, guidance or advice as the scheme operator and the FCA consider appropriate.
Consumer redress schemes¶
10 Consumer redress schemes: general¶
(1) This section applies if— (a) it appears to the FCA that there may have been a failure by relevant firms to comply with requirements applicable to the carrying on by them of any activity, (b) it appears to the FCA that, as a result, consumers have suffered, or may suffer, loss or damage, and (c) the FCA considers that it is desirable to make rules for the purpose of securing that redress is made to the consumers in respect of the failure (having regard to the possibility of the consumers obtaining redress under the ombudsman scheme).
(6ZA) References in sections 404 and 404E to a “payment service provider” are references to a person who is a payment service provider for the purposes of the Payment Services Regulations 2017 as a result of falling within any of paragraphs (a) to (g) of the definition in regulation 2(1) of those Regulations.
11 Consumer redress schemes and the ombudsman scheme¶
;(A1) If— (a) a consumer makes a complaint under the ombudsman scheme in respect of an act or omission of a relevant firm, and (b) the subject-matter of the complaint falls to be dealt with under a consumer redress scheme (whether or not it does at the time it is made), the Financial Ombudsman must refer the complaint to the respondent for the complaint to be dealt with under the consumer redress scheme instead.
;(2ZA) A consumer may not otherwise make a complaint under the ombudsman scheme if the subject-matter of the complaint has been dealt with under a consumer redress scheme.
;(4) A complaint under subsection (2) is to be determined by reference to the rules under which the consumer redress scheme was established.
(14) In this section, “consumer redress scheme” includes a scheme which corresponds to, or is similar to, a consumer redress scheme established under rules under section 404, which is established by virtue of— (a) the variation by the FCA of a permission or authorisation of a person in order to impose requirements to establish such a scheme, or (b) an agreement between a person and the FCA to establish such a scheme. The reference in paragraph (a) to the variation of a permission or authorisation by the FCA is to be read in accordance with section 404F(8).(15) The reference in subsection (4) to the rules under which a consumer redress scheme was established is to be read— (a) where the scheme was established under requirements described in subsection (14)(a), as a reference to the requirements; (b) where the scheme was established under an agreement described in subsection (14)(b), as a reference to the agreement.
Power to prevent certain action in relation to complaints¶
12 Power to prevent certain action in relation to complaints¶
Power to prevent certain action in relation to complaints
404H Power to prevent certain action in relation to complaints
(1) This section applies if it appears to the FCA that there may have been a failure by a relevant firm to comply with requirements applicable to the carrying on by them of any activity. (2) “Relevant firm” means— (a) an authorised person, (b) a payment service provider, or (c) an electronic money issuer. (3) The FCA may by directions impose such requirements as the FCA considers appropriate on a relevant person, or a description of relevant persons, for the purposes of preventing that relevant person, or a relevant person falling within that description, from taking action in relation to a complaint relating to an act or omission of that relevant firm. (4) “Relevant person” means— (a) a relevant firm, (b) a person acting for or on behalf of a relevant firm, (c) the Financial Ombudsman, or (d) a person acting for or on behalf of the Financial Ombudsman. (5) A requirement may require a relevant person to take specified action as well as to refrain from taking specified action. (6) A direction under this section— (a) may specify the way in which, and the time by which, a thing is to be done; (b) may be varied; (c) may be expressed to have effect during a specified period or until revoked. (7) The FCA may at any time revoke a direction under this section by notice. (8) The revocation of a direction does not affect the validity of anything previously done in accordance with it. (9) A direction or notice under this section must be given in writing to the relevant person or persons to whom it applies. (10) But if, in the circumstances, the FCA considers it appropriate, the FCA may, in addition to or instead of proceeding under subsection (9), publish the direction or notice in the way appearing to the FCA to be best calculated to bring it to the attention of relevant persons likely to be affected by it. (11) The imposition of a requirement that expires at the end of a specified period does not affect the FCA’s power to impose a new requirement. (12) In this section— (a) “payment service provider” means a person who is a payment service provider for the purposes of the Payment Services Regulations 2017 as a result of falling within any of paragraphs (a) to (g) of the definition in regulation 2(1) of those Regulations; (b) “electronic money issuer” means a person mentioned in paragraph (a), (b), (c), (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011.
Part 3 — Regulators¶
Consolidation and coordination of regulators¶
13 Abolition of the Payment Systems Regulator¶
14 Anti-money laundering and counter-terrorist financing supervision¶
;(1A) An appropriate Minister may by regulations make provision for the purpose of enabling or facilitating cooperation between— (a) a supervisory authority, and (b) a prescribed person with responsibility for regulating or supervising a relevant person otherwise than under this Part (whether or not, in doing so, the person exercises public functions), in connection with the regulation or supervision of relevant persons (whether or not under this Part).(1B) The power in subsection (1A) may be exercised to permit or require disclosure by a supervisory authority of information held in connection with the authority’s functions under this Part to a prescribed person.
.relevant persons has the meaning given by paragraph 24 of Schedule 2; supervisory authority has the meaning given by that paragraph;
—
;(a) regulations under section 49(1) can do any thing mentioned in paragraphs 2 to 17; (b) regulations under section 49(1A) can do any thing mentioned in paragraph 15.
15 Regulator meetings: representatives¶
;(9) The Chief Executive of the FCA may, with the approval of the Governor of the Bank, appoint a representative to attend meetings of the Committee in place of the Chief Executive. (10) A representative appointed under sub-paragraph (9)— (a) must be an officer or employee of the FCA; (b) may not be a person disqualified for appointment under paragraph 6; (c) is to be treated as a member of the Committee while attending a meeting as described in sub-paragraph (9); (d) is not to be treated as an eligible member of the Committee for the purposes of paragraph 15.
;(7) The chief executive of the Financial Conduct Authority may, with the approval of the Governor of the Bank, appoint a representative to attend meetings of the Committee in place of the chief executive. (8) A representative appointed under sub-paragraph (7)— (a) must be an officer or employee of the Financial Conduct Authority; (b) may not be a person disqualified for appointment under paragraph 8; (c) is to be treated as a member of the Committee while attending a meeting as described in sub-paragraph (7); (d) is not to be treated as an eligible member of the Committee for the purposes of paragraph 16.
;(7) The Bank’s Deputy Governor for prudential regulation may, with the approval of the chair of the governing body of the FCA, appoint a representative to attend meetings of the governing body in place of the Deputy Governor. (8) A representative appointed under sub-paragraph (7)— (a) must be an officer or employee of the Bank; (b) is to be treated as a member of the governing body while attending a meeting as described in sub-paragraph (7).
Functions of the regulators¶
16 FCA and PRA long-term strategies and recommendations¶
1JZA Long-term strategy
(1) The FCA must publish a document (a “strategy”) setting out its strategic priorities for the next 5 years after publication of the strategy. (2) The FCA’s strategic priorities must include strategic priorities in relation to— (a) its strategic objective, (b) its operational objectives and its payment systems objectives, and (c) the supervision of authorised persons and regulation of participants in regulated payment systems. (3) A strategy may specify a shorter period after publication for which the strategy is to have effect, but must explain why that shorter period is appropriate. (4) In preparing or revising a strategy, the FCA must have regard to— (a) its general duties under section 1B, (b) the regulatory principles in section 3B, (c) recommendations of the Treasury under section 1JA, (d) the importance of payment systems— (i) in maintaining the stability of, and confidence in, the UK financial system, and (ii) in relation to the performance of functions by the Bank of England in its capacity as a monetary authority, (e) the principles in section 21(2) of the Legislative and Regulatory Reform Act 2006, and (f) the code of practice under section 22 of that Act. (5) A strategy must set out how the strategic priorities described take account of the matters referred to in subsection (4). (6) A strategy may cross-refer to other publicly-available documents. (7) A strategy may be revised by publishing a revised version of the strategy. (8) Publishing a revised version of the strategy does not— (a) change the period for which the strategy has effect, or (b) affect anything done before it is published. (9) A strategy may be replaced by publishing a replacement strategy. (10) A replacement strategy must be published before the end of the period for which the current strategy has effect. (11) A document published under subsection (7) or (9) must specify whether it is a revised version of the current strategy or a replacement strategy.
(a) both— (i) the manner in which the FCA has prepared or revised, or intends to prepare or revise, a strategy under section 1JZA in light of the recommendation, and (ii) the action the FCA has taken or intends to take in light of any part of the strategy so prepared or revised, or (b) the reasons why the FCA has not prepared or revised, or does not intend to prepare or revise, a strategy under section 1JZA in light of the recommendation.
2E Long-term strategy
(1) The PRA must publish a document (a “strategy”) setting out its strategic priorities for the next 5 years after publication of the strategy. (2) The PRA’s strategic priorities must include strategic priorities in relation to— (a) its objectives and the secondary objectives listed in section 2H, and (b) the supervision of PRA-authorised persons. (3) A strategy may specify a shorter period after publication for which the strategy is to have effect, but must explain why that shorter period is appropriate. (4) In preparing or revising a strategy, the PRA must have regard to— (a) its general duties under sections 2B, 2C, 2D(3) and 2H, (b) the regulatory principles in section 3B, (c) recommendations of the Treasury under section 30B of the Bank of England Act 1998, (d) the principles in section 21(2) of the Legislative and Regulatory Reform Act 2006, and (e) the code of practice under section 22 of that Act. (5) A strategy must set out how the strategic priorities described take account of the matters referred to in subsection (4). (6) A strategy may cross-refer to other publicly-available documents. (7) A strategy may be revised by publishing a revised version of the strategy. (8) Publishing a revised version of the strategy does not— (a) change the period for which the strategy is to have effect, or (b) affect anything done before it is published. (9) A strategy may be replaced by publishing a replacement strategy. (10) A replacement strategy must be published before the end of the period for which the current strategy has effect. (11) A document published under subsection (7) or (9) must specify whether it is a revised version of the current strategy or a replacement strategy. (12) Before publishing a strategy (including a replacement strategy), the PRA must consult, and share a draft with, the court of directors of the Bank of England.
This duty does not apply to publishing a revised version of a strategy.
.(db) the extent to which, in its opinion, it has implemented its strategy published under section 1JZA,
.(bza) the extent to which, in its opinion, it has implemented its strategy published under section 2E,
(a) both— (i) the manner in which the Prudential Regulation Committee has prepared or revised, or intends to prepare or revise, a strategy under section 2E of the Financial Services and Markets Act 2000 in light of the recommendation, and (ii) the action the Prudential Regulation Committee has taken or intends to take in light of any part of the strategy so prepared or revised, or (b) the reasons why the Prudential Regulation Committee has not prepared or revised, or does not intend to prepare or revise, a strategy under that section in light of the recommendation.
17 Requirements to have regard to the regulatory principles¶
.(e) after sub-paragraph (4)(a), there were inserted— ;(b) demonstrate that the Bank has had regard to the regulatory principles in section 30E of the Bank of England Act 1998 when preparing the proposals, and
18 FCA and PRA reporting and consultation requirements¶
(4A) If a regulator decides to refuse an application under this Part, it must give the applicant a decision notice.
(a) authorised person, or (b) person who is otherwise subject to rules made by the FCA, whether made under this Act or another enactment.
(6) But subsection (3) does not disapply section 138I(4) to (4D) and (5)(b) or 138J(4) to (4D) and (5)(b) in relation to the making of rules in a case where subsection (3) did not disapply section 138I(1)(b), (2) and (3) or 138J(1)(b), (2) and (3) in relation to the proposed rules to which they relate.
(a) an authorised person, or (b) any person who is otherwise subject to rules made by the FCA.
19 Section 18: related amendments to other enactments¶
20 Competitiveness and growth objective: reporting requirements¶
Competitiveness and growth objective: reporting requirements
3RF Annual reports to the Treasury
(1) At least once a year, each regulator must make a report to the Treasury on how it has complied with its duty to advance the competitiveness and growth objective. (2) The reports prepared by each regulator under subsection (1) must in particular explain— (a) the action taken by the regulator to ensure that the competitiveness and growth objective is embedded in its operations, processes and decision-making, and (b) how any rules and guidance that the regulator has made advance that objective. (3) Each regulator must publish its reports prepared under this section in such manner as it thinks fit. (4) In this section, references to the competitiveness and growth objective, and the duty to advance that objective, are— (a) in relation to the FCA, references to its objective in section 1EB and to its duty to advance that objective under section 1B(4A), and (b) in relation to the PRA, references to its objective in section 2H(1B) and to its duty to advance that objective under section 2H(1)(b). (5) A report under this section may not be combined in a single document with any other report.
21 Amendments to time periods for determination of applications¶
—
;(a) 4 months beginning with the date on which it received the completed application, or (b) in the case of an application for the cancellation of a permission, 6 months beginning with the date on which it received the completed application.
within 12 monthsto the end substitute
before the end of the period of—
;(a) 10 months beginning with the date on which it received the application, or (b) in the case of an application for the cancellation of a permission, 12 months beginning with the date on which it received the application.
within the period required bysubstitute
before the end of the period specified in;
“6 months”substitute
“4 months”;
(11) The Treasury may by regulations amend this Part for the purpose of changing a period within which applications under this Part must be determined.
;(3A) “The period for consideration” means— (a) in the case of a senior management application, the period of 2 months beginning with the date on which the regulator receives the application under section 60, (b) in the case of any other application, the period of 3 months beginning with the date on which the regulator receives the application under section 60, or (c) in either case, if— (i) the applicant is also applying for a Part 4A permission (permission to carry on regulated activities), and (ii) the period within which that application must be determined under section 55V ends after the period described in paragraph (a) or (b) (as applicable), the period applicable under section 55V.
(8) The Treasury may by regulations amend this section for the purpose of changing the period for consideration.
3 monthssubstitute
2 months;
(9) The Treasury may by regulations amend this section for the purpose of changing the period for consideration.
3 monthssubstitute
2 months;
(6) The Treasury may by regulations amend this section for the purpose of changing the period for consideration.
3 monthssubstitute
2 months.
22 Publication requirements under the special resolution regime¶
Part 4 — Carrying on regulated activities: exemption, permission, notification etc¶
Appointed representatives¶
23 Exemption of appointed representatives¶
24 Permission to act as principal¶
55NC General requirement relating to appointed representatives
(1) An authorised person must not act as a principal in respect of an appointed representative otherwise than in accordance with permission given by the FCA under this section. (2) An authorised person who acts as a principal otherwise than in accordance with permission given under this section is taken to have contravened a requirement imposed on the person by the FCA under this Act. (3) The FCA may give permission under this section on the application of— (a) an authorised person (but see subsection (11)), or (b) a person applying for permission under section 55A. (4) The FCA may give permission under this section— (a) on the terms sought in the application, or (b) subject to any other terms the FCA considers appropriate. (5) The FCA may vary or cancel permission given under this section— (a) on the application of the person to whom it was given, or (b) on its own initiative, and subsection (4) applies to the variation of permission as it applies to the giving of it.(6) If the FCA gives or varies permission under this section, it must set out the terms on which the permission is given in such a way as it considers appropriate. (7) The FCA may refuse to grant an application for permission under this section, or for variation or cancellation under subsection (5)(a), if it appears to the FCA that it is desirable to do so in order to advance one or more of its operational objectives. (8) The FCA may vary or cancel a person’s permission under subsection (5)(b) if it appears to the FCA that— (a) the person has failed, during a period of at least 12 months, to act as a principal in respect of an appointed representative, or (b) it is desirable to do so in order to advance one or more of its operational objectives. (9) The FCA must consult the PRA before giving permission, or varying or cancelling permission given, under this section to— (a) a person who is, or will on the granting of an application for Part 4A permission be, a PRA-authorised person, or (b) a person who is a member of a group which includes a PRA-authorised person. (10) Nothing in this section limits any other power under this Act to impose requirements in relation to acting as principal in respect of appointed representatives. (11) In subsection (3)(a), “authorised person” does not include an authorised person with a temporary Part 4A permission. (12) In this section, a reference to acting as a principal includes a reference to accepting responsibility under section 39(1) or (1C).
25 Permission to act as principal: further provision¶
;(5) In this Act, “a Part 4A permission” means a permission— (a) given by the appropriate regulator under section 55E or 55F, or (b) having effect as if so given.
;(h) to give permission under section 55NC but to exercise its power under subsection (4)(b) of that section, or (i) to vary permission under section 55NC on the application of an authorised person but to exercise its power under subsection (4)(b) of that section,
.(ec) to give permission under section 55NC but to exercise its power under subsection (4)(b) of that section, (ed) to vary permission under section 55NC on the application of an authorised person but to exercise its power under subsection (4)(b) of that section, or
26 Senior management functions: supervision of appointed representatives¶
.(ia) in the case of aspects relating to the carrying on of a regulated activity by an appointed representative of the authorised person, for the appointed representative, or
27 Conduct of employees, directors, etc: appointed representatives¶
;
;(d) persons who are employees or directors of appointed representatives; (e) individuals who are appointed representatives;
;(ac) in the case of an employee or director of an appointed representative, or an individual who is an appointed representative, the appointed representative, and
;(iv) an employee or director of, or an individual who is, an appointed representative,
, or
;(iv) an employee or director of, or an individual who is, an appointed representative
28 Appointed representatives and the ombudsman scheme¶
.(b) at the time of the act or omission to which the complaint relates, the respondent was— (i) an authorised person, (ii) an appointed representative of an authorised person, regardless of whether the authorised person accepted responsibility under section 39 for the act or omission to which the complaint relates, (iii) an electronic money issuer within the meaning of the Electronic Money Regulations 2011, or (iv) a payment service provider within the meaning of the Payment Services Regulations 2017; and
(3B) The scheme operator must make scheme rules for the purpose of ensuring that the Financial Ombudsman may determine a complaint against an appointed representative of an authorised person only if the Financial Ombudsman is satisfied that the authorised person— (a) has not accepted responsibility under section 39, and (b) is not otherwise responsible, for the act or omission to which the complaint relates.(3C) The scheme operator must make scheme rules for the purpose of providing appointed representatives with appropriate opportunity to participate in proceedings in relation to complaints against authorised persons in circumstances where there is dispute as to whether the authorised person or appointed representative is responsible for the act or omission to which the complaint relates.
Temporary permission under Part 4A¶
29 Temporary Part 4A permission¶
(3A) Subsection (3) does not apply to an authorised person with a temporary Part 4A permission. (3B) A person who has applied for temporary Part 4A permission may not apply for permission under this section before the application under section 55AA is determined or withdrawn. (3C) In subsection (3B), the reference to an application being determined is a reference to— (a) permission being given, or (b) a final notice being given under section 390 in relation to it.
55AA Application for temporary Part 4A permission
(1) An application for permission to carry on one or more specified regulated activities for a fixed period may be made to the FCA by— (a) an individual, (b) a body corporate, (c) a partnership, or (d) an unincorporated association. (2) In this Part, “fixed period” means— (a) the period of 18 months beginning with the day from which the permission has effect (see section 55V(6)), or (b) such other prescribed period not exceeding two years beginning with the day from which the permission has effect. (3) The FCA may make rules specifying regulated activities, other than PRA-regulated activities, for the purposes of this section. (4) An authorised person who has permission under this Part which is in force may not apply for permission under this section. (5) A person who has applied for permission under section 55A may not apply for permission under this section before the application under section 55A is determined or withdrawn. (6) In subsection (5), the reference to an application being determined is a reference to— (a) permission being given (but see subsection (4)), or (b) a final notice being given under section 390 in relation to it. (7) In this Act, “temporary Part 4A permission” means permission that is given by the FCA under section 55E in response to an application under this section.
(d) in relation to persons who have, or who are applying for, temporary Part 4A permission and in relation to other persons.
, or
(b) an application for temporary Part 4A permission has been made under section 55AA.
or 55AA.
(8) An authorised person with a temporary Part 4A permission may not apply under this section to vary the day on which the permission will expire.
(10A) But the power of the FCA to vary a Part 4A permission under this section does not include the power to vary the day on which a temporary Part 4A permission will expire.
55KB Expiry of temporary Part 4A permission: applications under section 55A
(1) This section applies if an authorised person with a temporary Part 4A permission makes an application for permission under section 55A before the end of the fixed period in respect of which the temporary Part 4A permission was given. (2) The temporary Part 4A permission does not expire (and continues to have effect) until— (a) the appropriate regulator— (i) gives permission in response to the application under section 55A and that permission has effect, or (ii) gives a decision notice under section 55X(4A) in respect of the application, or (b) the application is withdrawn, at which point, the temporary Part 4A permission expires (and ceases to have effect).
Power to make further provision: temporary Part 4A permission
55Z5 Power to make further provision about temporary Part 4A permission
(1) The Treasury may by regulations make provision about— (a) applying for, giving, cancelling or varying a temporary Part 4A permission; (b) applying for, giving, cancelling or varying another permission under Part 4A in circumstances where the applicant has, or has had, a temporary Part 4A permission; (c) the expiry of a temporary Part 4A permission; (d) any other matter relating to temporary Part 4A permission. (2) Regulations under this section may include provision— (a) amending this Act (including this Part), or otherwise modifying its application in relation to a temporary Part 4A permission; (b) conferring a power on (or restricting a power of) a regulator to make rules or give directions; (c) modifying the scope of criminal offences.
or 55AA (as applicable);
(6A) But the power of the FCA to vary a Part 4A permission under this paragraph does not include the power to vary the day on which a temporary Part 4A permission will expire.
30 Temporary Part 4A permission: other amendments¶
;(zza) rules made by the FCA under section 55AA (temporary Part 4A permission) or section 55Z5 (further provision about temporary Part 4A permissions);
;(za) rules made by the FCA under section 55AA (temporary Part 4A permission) or section 55Z5 (further provision about temporary Part 4A permissions);
;(za) section 55AA (temporary Part 4A permission) or section 55Z5 (further provision about temporary Part 4A permissions);
.(zza) rules made by the FCA under section 55AA (temporary Part 4A permission) or section 55Z5 (further provision about temporary Part 4A permissions);
Senior managers and certification regimes¶
31 Senior managers: notification to regulator¶
Schedule 3 makes provision for notifications of senior managers under Part 5 and Part 18 of the Financial Services and Markets Act 2000.32 Statement of responsibilities: repeal¶
;(3) The application must contain, or be accompanied by, such information as the appropriate regulator may reasonably require.
33 Requests for conditions or time-limited approvals¶
(4) In deciding that question, an authorised person making a permitted conditional application may have regard to any conditions or limited periods requested in the application. (5) A “permitted conditional application” means an application under section 60 that— (a) is an application for approval subject to conditions or for a limited period (or both), and (b) is of a description specified in rules of a regulator. (6) The PRA may specify a description of application for approval only if the application described is an application for approval to perform functions that are of a description specified in rules of the PRA under section 59(3). (7) The FCA may specify a description of application for approval only if the application described is an application for approval to perform functions that are of a description specified in rules of the FCA under section 59(3).
(4A) Subsections (2) to (4) do not apply in relation to a proposal or decision to grant a permitted conditional application subject to conditions or for a limited period if the conditions or limited period (or both) were requested in the application. (4B) “Permitted conditional application” has the meaning given in section 60A(5).
section 62(1) to (4) and (5), but as if the references in subsections (1) to (4) to granting the application subject to conditions or for a limited period (or both), or without imposing conditions or limiting the period for which approval is given, were omitted.
;(2A) In deciding that question, a relevant recognised body making a permitted conditional application may have regard to any conditions or limited periods requested in the application. (2B) A “permitted conditional application” means an application under section 309I that— (a) is an application for approval subject to conditions or for a limited period (or both), and (b) is of a specified description.
(4A) Subsections (2) to (4) do not apply in relation to a proposal or decision to grant a permitted conditional application subject to conditions or for a limited period if the conditions or limited period (or both) were requested in the application. (4B) “Permitted conditional application” has the meaning given in section 309J(2B).
34 Certification regime: repeal¶
35 Repeals of obligations relating to rules of conduct¶
36 Sole traders¶
;(f) individuals who are authorised persons.
;
;(e) individuals who are PRA-authorised persons.
.(ab) in the case of a director of an authorised person who is not an approved person, or an individual who is an authorised person, the authorised person,
, or
(v) an individual who is an authorised person.
, or
(iv) an individual who is a PRA-authorised person.
Overseas recognition regimes and Gibraltar authorisation regime¶
37 Overseas recognition regimes¶
.Overseas recognition regimes and Gibraltar
408A Overseas recognition regulations
(1) The Treasury may by regulations make provision for the purpose of, or in connection with, enabling— (a) persons regulated in recognised overseas jurisdictions to supply financial services in the United Kingdom; (b) persons regulated in the United Kingdom to supply financial services, or otherwise carry on a business, in recognised overseas jurisdictions. (2) In making regulations under subsection (1), the Treasury must have regard to the importance of— (a) protecting the integrity and stability of the UK financial system, (b) promoting the safety and soundness of persons providing financial services in the United Kingdom, (c) preserving and promoting effective competition in the markets for financial services in the United Kingdom, (d) facilitating the international competitiveness of the United Kingdom financial services sector, and its growth over the medium to long term, and (e) securing an appropriate degree of protection for consumers in the United Kingdom. (3) Regulations under subsection (1) may, among other things— (a) modify this and other Acts relating to financial services or markets; (b) make provision by reference to the law or practice of a recognised overseas jurisdiction; (c) confer functions on a regulator, including powers to make rules or other instruments, waive requirements imposed by the regulations or charge fees; (d) require a regulator to make rules or other instruments— (i) covering specified matters, or (ii) before the end of a specified period; (e) make provision for civil penalties. (4) Except as provided by subsection (3)(d), regulations under subsection (1) may not require a regulator to make rules or other instruments in a specified form or with specified content. (5) In this section— consumers means persons who use or may use the services to which the regulations relate; integrity, in relation to the UK financial system, includes the matters listed in section 1D(2); modify includes amend or repeal; recognised overseas jurisdiction means, in relation to regulations made under this section, a country or territory designated under section 408B for the purpose of the regulations; regulator includes the Bank of England. (6) In subsection (1)(b), the reference to a person regulated in the United Kingdom includes a reference to any other members of that person’s group. 408B Designation of recognised overseas jurisdictions
(1) The Treasury may by regulations designate a country or territory for the purposes of regulations under section 408A if the Treasury are satisfied that doing so is compatible with— (a) protecting the integrity and stability of the UK financial system, (b) promoting the safety and soundness of persons providing financial services in the United Kingdom, (c) preserving or promoting effective competition in markets for financial services in the United Kingdom, (d) facilitating the international competitiveness of the United Kingdom financial services sector, and its growth over the medium to long term, and (e) securing an appropriate degree of protection for consumers in the United Kingdom. (2) In making an assessment for the purposes of subsection (1), the Treasury must consider whether the law and practice of the country or territory is likely to produce an outcome that is materially different to that produced by the law and practice of the United Kingdom in respect of matters to which the regulations under section 408A relate. (3) Regulations under this section may designate a country or territory only for particular purposes or subject to exceptions or conditions. (4) The matters in subsection (1) are to be assessed in light of such exceptions and conditions. (5) In this section, “consumers” and “integrity” have the same meanings as in section 408A. 408C Consultation, information and advice
(1) Before making regulations under section 408A, the Treasury must consult the regulators in accordance with this section. (2) The Treasury must consult the Bank of England on whether, in its opinion, the proposed regulations are compatible with the Financial Stability Objective. (3) If the regulations contain provision relating to matters in respect of which the FCA has functions, the Treasury must consult the FCA on whether, in its opinion, the provision— (a) is compatible with the FCA’s strategic objective, (b) advances one or more of the FCA’s operational objectives or payment systems objectives, and (c) advances the competitiveness and growth objective in its application as a secondary objective (see section 1EB). (4) If the regulations contain provision relating to matters in respect of which the PRA has functions, the Treasury must consult the PRA on whether, in its opinion, the provision— (a) advances the PRA’s objectives, and (b) advances the PRA’s competition objective and the PRA’s competitiveness and growth objective in their application as secondary objectives (see section 2H). (5) The Treasury may by notice require a regulator to provide such information or advice as the Treasury reasonably require in connection with their functions under sections 408A and 408B. (6) The notice must— (a) be in writing, (b) describe the information or advice sought, and (c) specify a reasonable period within which the information or advice is to be provided. (7) A regulator may, irrespective of subsection (6), provide information and advice to the Treasury in connection with the Treasury’s functions under this Part. (8) In this section, “regulator” includes the Bank of England. 408D Coordination and memorandum of understanding
(1) The Treasury and each of the regulators must— (a) co-ordinate in the discharge of their functions under sections 408A to 408C, and (b) prepare and maintain a memorandum describing in general terms how they intend to— (i) discharge their functions under sections 408A to 408C, and (ii) comply with paragraph (a). (2) The Treasury must— (a) lay a copy of the memorandum before Parliament, and (b) ensure that the memorandum as currently in force is published in the way appearing to the Treasury to be best calculated to bring it to the attention of the public. (3) In this section, “regulator” includes the Bank of England. 408E Disclosure of information: sections 408A to 408D
Sections 348 to 350 and 353 (disclosure of information) apply in relation to functions under sections 408A to 408D as if—(a) in section 348 (restrictions on disclosure of confidential information by FCA, PRA etc), in subsection (2)(b), after “this Act” there were inserted “or any functions of the Bank of England under sections 408A to 408D”; (b) in section 349 (exceptions from section 348), in subsection (2)(c), after “or the PRA“ there were inserted “or the Bank of England”; (c) in section 350 (disclosure of information by the Inland Revenue), in subsection (1)(b), after the second “section” there were inserted , or(c) the Treasury or the Bank of England, if the disclosure is made for the purpose of assisting or enabling the discharge of functions under sections 408A to 408D
333Tinsert
, 408A.
38 Gibraltar authorisation regime: materially similar outcomes¶
only if they are satisfied that the law and practice of Gibraltar is not likely to produce an outcome that is materially different to that produced by the law and practice of the United Kingdom in relation to the activities concerned.;
Part 5 — Lending, insurance and cryptoassets¶
Ring-fencing¶
39 Excluded activities and prohibitions: powers of PRA¶
;(2A) The Treasury may by order— (a) provide that the regulated activity of dealing in investments as principal is not an excluded activity if it is carried on in specified circumstances; (b) provide for a specified activity other than the regulated activity of dealing in investments as principal to be an excluded activity, either generally or when carried on in specified circumstances. (2B) In this section— (a) “specified” means— (i) specified in an order under subsection (2A), or (ii) to the extent provided for in such an order, specified in rules of the PRA; (b) “relevant authority” means— (i) in relation to matters specified in an order under subsection (2A), the Treasury; (ii) in relation to matters specified in rules of the PRA under such an order, the PRA.
;(1A) In this section— (a) “specified” means— (i) specified in an order under subsection (1), or (ii) to the extent provided for in such an order, specified in rules of the PRA; (b) “relevant authority” means— (i) in relation to matters specified in an order under subsection (1), the Treasury; (ii) in relation to matters specified in rules of the PRA under such an order, the PRA.
;(d) section 142D;
40 Ring-fencing rules etc¶
;(1) If the appropriate regulator does not consider that there is sufficient provision to ensure the effective provision to a ring-fenced body of services and facilities that it requires in relation to the carrying on of a core activity, the regulator must exercise its power to make general rules to make rules requiring a ring-fenced body to make arrangements to ensure such effective provision. (1A) If the appropriate regulator does not consider that there is sufficient provision to achieve the group ring-fencing purposes, the regulator must exercise its power to make general rules to make rules for the group ring-fencing purposes that apply— (a) to ring-fenced bodies, or (b) to authorised persons who are members of a ring-fenced body’s group.
;(3A) “Sufficient provision” means provision, whether in enactments or in rules, directions or documents made, given or published by the Bank of England, PRA or FCA (whether under this Act or another enactment) that, taken as a whole, is sufficient.
(1A) Any reference to “failure” is to be read in accordance with section 2J(3) to (4).
Commercial credit data sharing scheme¶
41 Scope of commercial credit data sharing scheme¶
(8) The regulations must make provision for the designation by the Treasury of— (a) persons to which the duty in subsection (1)(a) applies; (b) credit reference agencies to which the duty in subsection (1)(b) applies. (9) The regulations may provide for— (a) conditions for making a designation referred to in subsection (8); (b) considerations that the Treasury may take into account before deciding whether to make a designation; (c) the Treasury to consider the advice of another person before making a designation; (d) the procedure for making a designation; (e) how the list of designated persons and designated credit reference agencies must be published; (f) the revocation of a designation. (10) The regulations may provide that the duty in subsection (1)(a) or (b) applies in relation to— (a) a business that was previously a small or medium sized business but is no longer a small or medium sized business solely because of its annual turnover, or (b) a voluntary or community body that is not a small or medium sized business solely because it does not carry out commercial activities. For that purpose, “business” includes a voluntary or community body and “voluntary or community body” has the meaning given in section 29(5).(11) Where the regulations provide for the duty in subsection (1)(a) or (b) to apply in relation to such a business or voluntary or community body, a reference in this section or section 6 to a small or medium sized business is to be read as including that business or voluntary or community body.
.designated person means a person that has been designated by the Treasury by virtue of section 4(8)(a);
42 Duties under commercial credit data sharing scheme¶
;(e) the rectification of information that has been provided, including provision requiring a person to notify another person that such information has been rectified.
(6A) The regulations may make provision requiring a person providing or receiving information to— (a) use specified facilities or services in doing so; (b) comply with specified standards, or participate in specified arrangements, relating to, or to the use of, such facilities or services; (c) provide, or arrange for, specified assistance in connection with the establishment, maintenance or management of such facilities or services.
;(4A) Regulations under section 4 may impose a duty on a person specified or described in the regulations to provide to the Treasury information relevant to the Treasury’s functions under the regulations, and may— (a) allow the Treasury to share that information with persons or for purposes specified or described in the regulations, and (b) allow another person to— (i) receive that information on behalf of the Treasury, or (ii) share that information on behalf of the Treasury in accordance with provision made by virtue of paragraph (a).
(5A) Regulations under section 4 may impose a duty on designated credit reference agencies to provide information received by virtue of section 4(1)(a) or (4)(b) to other designated credit reference agencies.
43 Commercial credit data sharing scheme: functions of FCA¶
(1A) Regulations under section 4 may also make provision conferring other functions on the Financial Conduct Authority in connection with the regulations.
Transformer and insurance vehicles¶
44 Transformer vehicles¶
(2) “Risk transformation” means assuming risk from another undertaking (“B”) in a case where— (a) A’s exposure to the risk is fully covered by assets transferred, or obligations owed, to A by one or more third parties in connection with investments issued by A, and (b) any related obligations of A to those third parties are subordinated to A’s obligations to B in respect of the risk, and for that purpose “obligations” includes contingent obligations.
.(b) risk transformation;
45 Insurance vehicles¶
;(2A) In this section “insurance vehicle” means an undertaking which— (a) is established for the purposes of carrying on the activity of effecting or carrying out contracts of insurance as principal, or (b) carries on such activity.
;(4A) The Treasury may by regulations make provision mentioned in subsection (4) for the purpose of facilitating or regulating the establishment and operation of insurance vehicles.
Cryptoassets¶
46 Power to amend provisions about cryptoassets¶
47 Repeals of existing powers¶
Part 6 — General¶
48 FCA functions: money¶
There may be paid out of money provided by Parliament expenditure incurred by the Treasury in connection with the conferral of functions on the Financial Conduct Authority by regulations made under section 49 of the Sanctions and Anti-Money Laundering Act 2018 (money laundering and terrorist financing etc).49 Power to make consequential amendments of references to rules¶
50 Power to make amendments consequential on this Act¶
51 Extent¶
52 Commencement¶
53 Short title¶
This Act may be cited as the Financial Services and Markets Act 2026.Schedules¶
Schedule 11 — Consumer credit¶
Part 1 — Amendments to the Consumer Credit Act 1974¶
regulated credit agreementsubstitute
regulated agreement.
(except section 17(1)(a)).
(1) In this Act “consumer hire agreement” has the same meaning as in Chapter 14B of Part 2 of the Regulated Activities Order (see article 60N of that Order).
in the exercise of a right that—
;(a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of any of sections 69A to 73 in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
;(7) Where— (a) the debtor or hirer withdraws from a regulated agreement, and (b) an ancillary service relating to the agreement is or is to be provided by the creditor or owner, or by a third party on the basis of an agreement between the third party and the creditor or owner, the ancillary service contract is to be treated as if it had never been entered into.
;(b) the debtor has repaid to the creditor in full any credit provided and the interest accrued on it (at the rate provided for under the agreement),
—
;(a) the provision of credit under the agreement, including in particular an insurance or payment protection policy, or (b) the bailment or hiring of goods under the agreement.
;(13A) In subsections (7) and (11), references to a debtor or hirer withdrawing from an agreement are to a debtor or hirer withdrawing from an agreement in the exercise of a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
69A Cancellation of linked transactions
(1) Where a regulated agreement, other than an agreement within subsection (3), is cancelled by the debtor or hirer in the exercise of a relevant cancellation right, the cancellation also operates— (a) to cancel any linked transaction, and (b) to withdraw any offer by the debtor or hirer, or their relative, to enter into a linked transaction. (2) Where an agreement within subsection (3), or provisions of such an agreement, are cancelled by the debtor in the exercise of a relevant cancellation right, the cancellation also operates— (a) to cancel such provisions of any linked transaction as— (i) relate to the provision of credit, (ii) require the debtor to pay an item in the total charge for credit, or (iii) subject the debtor to any obligation other than to pay for the doing of the work mentioned in subsection (3), or the supply of the goods mentioned in that subsection, and (b) to withdraw any offer by the debtor, or their relative, to enter into a linked transaction. (3) An agreement is within this subsection if it is a debtor-creditor-supplier agreement for restricted-use credit financing— (a) the doing of work or supply of goods to meet an emergency, or (b) the supply of goods which, before the agreement was cancelled (as mentioned in subsection (2)), had by the act of the debtor or their relative become incorporated in any land or thing not comprised in the agreement or any linked transaction. (4) Except so far as is otherwise provided, references in this Act to the cancellation of an agreement or transaction do not include a case within subsection (2). (5) Except as otherwise provided by or under this Act, a linked transaction cancelled under this section is to be treated as if it had never been entered into. (6) Regulations may exclude linked transactions of the prescribed description from subsection (1)(a) or (b) or (2)(a) or (b). (7) In this section “relevant cancellation right” means a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
(8A) The following persons are within this subsection— (a) the creditor or owner; (b) a person who (whether by virtue of subsection (8B) or otherwise) is the agent of the creditor or owner. (8B) For the purposes of this section, a credit-broker or supplier who is the negotiator in antecedent negotiations is to be treated as an agent of the creditor or owner.
73A Sections 70 to 73: interpretation
In sections 70 to 73—(a) references to the cancellation of a regulated agreement are to the cancellation of a regulated agreement by the debtor or hirer in the exercise of a right that— (i) arises under or by virtue of FCA rules, and (ii) is of a description specified for the purposes of section 70, 71, 72 or 73 (as the case may be) in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients' money, right to rescind etc); (b) references to the cancellation of a linked transaction are to the cancellation of a linked transaction under section 69A (cancellation of linked transactions).
(1A) to (2)substitute
(2) and (2A);
or;
orbefore it;
;(2) Section 56 (antecedent negotiations) applies to an agreement within subsection (1)(a), (b) or (c). (2A) Section 66A (withdrawal from consumer credit agreement) applies to— (a) an agreement within subsection (1)(b) that would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months; (b) an agreement within subsection (1)(c).
specified in paragraphs (a) to (e) of section 87(1)substitute
within subsection (2A);
specified in paragraphs (a) to (e) of section 87(1)substitute
within subsection (2A);
(2A) The following acts are within this subsection— (a) terminating the agreement; (b) demanding earlier payment of any sum; (c) recovering possession of any goods or land; (d) treating any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred; (e) enforcing any security.
(6) Subsection (7) applies where, on the termination of a regulated hire-purchase or regulated conditional sale agreement, the debtor wrongfully retains possession of goods to which the agreement relates. (7) In any action brought by the creditor to recover possession of the goods from the debtor, the court, unless it is satisfied that having regard to the circumstances it would not be just to do so, must order the goods to be delivered to the creditor without giving the debtor an option to pay the value of the goods. (8) In subsections (5) and (6), references to the termination of a regulated hire-purchase or regulated conditional sale agreement are to the termination of such an agreement in the exercise of a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
(2) In subsection (1) “rescind” does not include cancellation or termination by the debtor or hirer in the exercise of a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
;(a) during any period of notice which, by virtue of FCA rules, the creditor or owner is required to give the debtor or hirer of the agreement before carrying out an act within subsection (2) by reason of any breach by the debtor or hirer of the agreement, or
(2) The following acts are within this subsection— (a) terminating the agreement; (b) demanding earlier payment of any sum; (c) recovering possession of any goods or land; (d) treating any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred; (e) enforcing any security.
(9) In this section— relevant cancellation right means a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients' money, right to rescind etc); relevant regulated agreement means a regulated agreement in relation to which the creditor or owner is not an authorised person within the meaning of the Financial Services and Markets Act 2000 (see section 31 of that Act).
;(bzb) on an application made by a debtor or hirer under this paragraph after the creditor or owner has informed the debtor or hirer— (i) that a sum has become due and payable by the debtor or hirer under a regulated agreement but remains unpaid, (ii) of the creditor’s or owner’s intention to enforce a term of a regulated agreement by recovering possession of any goods or land, or (iii) of the creditor’s or owner’s intention to enforce any security provided in relation to a regulated agreement, or
(7) The following actions are within this subsection— (a) terminating the agreement; (b) demanding earlier payment of any sum; (c) recovering possession of any goods or land; (d) treating any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred; (e) enforcing any security.
or to a small agreement.
a demandto
or that,.
(a) a regulated agreement, or a provision of such an agreement, is cancelled by the debtor or hirer in the exercise of a relevant cancellation right, (aa) a linked transaction, or a provision of such a transaction, is cancelled under section 69A (cancellation of linked transactions), or
(3) In this section “relevant cancellation right” means a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
regulated credit agreement or a regulated consumer hire agreementsubstitute
regulated agreement;
(3A) In this section “relevant cancellation right” means a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this section in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc).
17(1),;
17(1),.
;consumer credit agreement has the meaning given by section 8, and includes a consumer credit agreement which is, or provisions of which are, cancelled in the exercise of a right that— (a) arises under or by virtue of FCA rules, and (b) is of a description specified for the purposes of this definition in FCA rules made by virtue of section 137B(3)(c) of the Financial Services and Markets Act 2000 (FCA general rules: clients’ money, right to rescind etc), so far as the agreement remains in force;
65(1), 105(7)(a) or (b), 111(2) or;
;individual includes a relevant recipient of credit within the meaning of Chapter 14A of Part 2 of the Regulated Activities Order (see article 60L of that Order);
.FCA rules means rules made by the FCA under the Financial Services and Markets Act 2000 (as those rules have effect from time to time);
103, 105, 107, 110,;
Part 2 — Minor and consequential amendments to other legislation¶
Financial Services and Markets Act 2000¶
, and
(c) specify, for the purposes of any of the following provisions of the Consumer Credit Act 1974, descriptions of rights arising under or by virtue of the rules— (i) section 66A (withdrawal from consumer credit agreement); (ii) section 69A (cancellation of linked transactions); (iii) section 70 (cancellation: recovery of money paid by debtor or hirer); (iv) section 71 (cancellation: repayment of credit); (v) section 72 (cancellation: return of goods); (vi) section 73 (cancellation: goods given in part-exchange); (vii) section 99 (termination of conditional sale agreements etc); (viii) section 102 (agency for receiving notice of rescission); (ix) section 113 (Act not to be evaded by use of security); (x) section 142 (power to declare rights of parties); (xi) section 155 (right to recover brokerage fees); (xii) the definition of “consumer credit agreement” in section 189 (definitions).
(3A) In this section “security”, in relation to a regulated credit agreement, means a mortgage, charge, pledge, bond, debenture, indemnity, guarantee, bill, note or other right provided by the borrower, or at their request (express or implied), to secure the carrying out of the obligations of the borrower under the agreement.
Enterprise Act 2002¶
Consumer Credit Act 2006¶
Schedule 22 — Payment systems regulation¶
Part 1 — Amendments to the Financial Services and Markets Act 2000¶
—
;(a) consumers, or (b) persons who use, or are likely to use, services provided by participants in payment systems.
(9) References to the FCA’s payment systems objectives (including the service-user objective and the innovation objective) are references to the objectives referred to in sections 131Z7 and 131Z8.
andat the end of paragraph (b);
, and
(d) the markets for— (i) payment systems, and (ii) services provided by participants in payment systems.
or.
practitioners and consumerssubstitute
the persons listed in subsection (2);
(2) The persons who must be consulted under subsection (1) are— (a) practitioners, (b) consumers, (c) participants in regulated payment systems, and (d) other persons who use, or are likely to use, services provided by participants in regulated payment systems.
, the Payment Systems Regulator.
, the PRA or the Payment Systems Regulatorsubstitute
or the PRA;
, the Payment Systems Regulator.
, the PRA or the Payment Systems Regulatorsubstitute
or the PRA.
, but includes those who use, or are likely to use, services provided by participants in payment systems;
, or
.(iii) its powers in relation to payment systems;
or payment systems objectives.
Part 8C — Payment systems
Interpretation
131Z3 Payment systems
(1) In this Act— payment system means a system which is operated by one or more persons in the course of business for the purpose of enabling persons to make transfers of funds, and includes a system which is designed to facilitate the transfer of funds using another payment system; regulated payment system means a payment system which has been designated under section 131Z5. (2) But a reference to a “payment system” does not include— (a) any arrangements for the physical movement of cash; (b) a system which does not make any provision for the transfer of funds by payers, or to recipients, in the United Kingdom; (c) a system operated by a recognised clearing house or a recognised CSD; (d) a system— (i) whose primary purpose is not that of enabling persons to transfer funds, and (ii) that does not include any arrangements using digital settlement assets. (3) In this Part— digital settlement asset means a digital representation of value or rights, whether or not cryptographically secured, that— (a) can be used for the settlement of payment obligations, (b) can be transferred, stored or traded electronically, and (c) uses technology supporting the recording or storage of data (which may include distributed ledger technology), and includes a right to, or interest in, a digital settlement asset;funds includes digital settlement assets. 131Z4 Participants in payment systems etc
(1) For the purposes of this Act and, in each case, in relation to a payment system— participant means— (a) any operator; (b) any infrastructure provider; (c) any payment system service provider; operator means any person with responsibility under the system for managing or operating it, and any reference to the operation of a payment system includes a reference to its management; infrastructure provider means any person who provides or controls any part of the infrastructure used for the purposes of operating the payment system; payment system service provider means any person who provides services for the purpose of enabling the transfer of funds using the payment system. (2) In relation to a payment system that includes arrangements using digital settlement assets, a reference to a payment system service provider includes a reference to— (a) a person responsible for managing the issuance and redemption of digital settlement assets; (b) a person whose business or occupation is to safeguard, or to safeguard and administer digital settlement assets, including their private cryptographic keys (or means of access); (c) a digital settlement asset exchange provider (as defined in section 182(5B) of the Banking Act 2009); (d) a person who— (i) sets rules, standards, or conditions of access or participation in relation to the system, or (ii) provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the system, including any infrastructure provider in relation to the system. (3) For the purposes of this Act, a payment system service provider has “direct access” to a payment system if the payment system service provider is able to provide services for the purpose of enabling the transfer of funds using the payment system as a result of arrangements made between the payment system service provider and an operator of the system. (4) In this Act, a reference to participating in a payment system— (a) is to be read in accordance with this section, (b) in the case of an operator of a payment system, includes a reference to developing the system, and (c) includes, in the case of a payment system service provider, a reference to entering into an agreement with a person to enable the person to become a payment system service provider in relation to the system. (5) In this Act, a reference to services provided by participants in payment systems is a reference to— (a) services provided between participants, or (b) services provided by participants to persons who are not participants, in each case, for the purposes of, or in connection with, payment systems.(6) The Bank of England is not to be regarded as a participant of any kind in any payment system. (7) The Treasury may by regulations make provision for the purpose of changing the meaning of “payment system”, “participant”, “participation”, “operator”, “infrastructure provider” or “payment system service provider” (including by changing any definitions used in those definitions). Designation of regulated payment systems
131Z5 Designation of regulated payment systems
(1) The Treasury may by notice designate a payment system as a regulated payment system. (2) The Treasury may designate a payment system under subsection (1) only if they are satisfied that any deficiency in the design of the system, or any disruption of its operation, would be likely to have serious consequences for those who use, or are likely to use, the services provided by participants in the system. (3) In considering whether to designate a payment system, the Treasury must have regard to— (a) the number and value of the transactions that the system processes or is likely to process in the future, (b) the nature of the transactions that the system presently processes or is likely to process in the future, (c) whether those transactions or their equivalent could be handled by other payment systems, and (d) the relationship between the system and other payment systems. (4) Before designating a payment system, the Treasury must— (a) consult the FCA and, if the system is a recognised payment system, the Bank of England, (b) notify the operator or operators of the system, and (c) consider any representations made. (5) In considering whether to designate a payment system, the Treasury may rely on information provided by— (a) the Bank of England, (b) the FCA, or (c) the PRA. (6) A notice under subsection (1) must— (a) specify a payment system with sufficient detail to identify it, and (b) be published in the way appearing to the Treasury to be best calculated to bring it to the attention of persons likely to be affected by it. (7) In this Part, a “recognised payment system” means a payment system which has been specified as a recognised system in a recognition order made under section 184 of the Banking Act 2009. 131Z6 Revision or withdrawal of a designation
(1) The Treasury may by further notice revise or withdraw a notice designating a payment system under section 131Z5. (2) The Treasury must by further notice withdraw a notice designating a payment system if they are not satisfied that the grounds for designation in section 131Z5(2) are met by the payment system in question. (3) Before revising or withdrawing a notice designating a payment system, the Treasury must— (a) consult the FCA and, if the system is a recognised payment system, the Bank of England, (b) notify the operator or operators of the system, and (c) consider any representations made. (4) If the operator or operators of a regulated payment system requests that a notice designating the system be revised or withdrawn, the Treasury must consider the request. (5) A notice under subsection (1) or (2) must be published in the way appearing to the Treasury to be best calculated to bring it to the attention of persons likely to be affected by it. Payment systems objectives
131Z7 Payment systems objectives
(1) In this Act, a reference to the FCA’s payment systems objectives is a reference to— (a) the service-user objective (see subsection (2)), (b) the innovation objective (see subsection (3)), and (c) the payment systems competition objective (see section 131Z8). (2) The service-user objective is: ensuring that payment systems are operated and developed in a way that takes account of, and promotes, the interests of those who use, or are likely to use, services provided by participants in payment systems. (3) The innovation objective is: promoting the development of, and innovation in, payment systems in the interests of those who use, or are likely to use, services provided by participants in payment systems, with a view to improving the quality, efficiency and economy of payment systems. (4) In subsection (3), the reference to promoting the development of, and innovation in, payment systems includes, in particular, a reference to promoting the development of, and innovation in, infrastructure to be used for the purposes of operating payment systems. 131Z8 The payment systems competition objective
(1) The payment systems competition objective is: promoting effective competition in— (a) the market for payment systems, and (b) the markets for services provided by participants in payment systems, in the interests of those who use, or are likely to use, services provided by participants in payment systems.(2) The reference in subsection (1) to promoting effective competition includes, in particular, promoting effective competition— (a) between operators of different payment systems, (b) between different payment system service providers, and (c) between different infrastructure providers. (3) The matters to which the FCA may have regard in considering the effectiveness of competition in a market mentioned in subsection (1) include— (a) the needs of different persons who use, or may use, services provided by participants in payment systems; (b) the ease with which persons who obtain those services can change the person from whom they obtain them; (c) the needs of different participants in payment systems or persons who wish to become participants; (d) the ease with which payment system service providers can change the payment system they use to provide their services; (e) the ease with which operators of payment systems can change the infrastructure used to operate payment systems; (f) the ease with which infrastructure providers can provide infrastructure for the purposes of operating payment systems; (g) the ease with which payment system service providers can provide services using payment systems; (h) the level and structure of fees, charges or other costs associated with participation in payment systems; (i) the ease with which new entrants can enter the market; (j) how far competition is contributing to the development of efficient and effective infrastructure for the purposes of operating payment systems; (k) how far competition is encouraging innovation. Rules and directions: regulated payment systems
131Z9 Payment system rules
(1) The FCA may make such rules applying to participants in regulated payment systems as appear to the FCA to be necessary or expedient for the purpose of advancing one or more of its payment systems objectives. (2) Rules under subsection (1) may make provision applying to participants in regulated payment systems even though there is no relationship between the participant to whom the rules will apply and the persons whose interests will be protected by the rules. (3) Rules under subsection (1) may contain requirements which take into account, in the case of a participant who is a member of a group, any activity of another member of the group. 131Z10 Power to direct participants in regulated payment systems
(1) The FCA may give a direction to a participant in a regulated payment system if the FCA considers it desirable for the purpose of advancing one or more of its payment systems objectives. (2) A direction given under this section may— (a) apply to a particular participant or participants, or participants meeting a particular description; (b) take effect immediately or on such other date as may be specified in the direction; (c) require or prohibit the taking of specified action in relation to the system; (d) set standards to be met in relation to the system. (3) The reference in subsection (2)(c) to requiring or prohibiting specified action includes a reference to— (a) requiring an operator to make, or change, its rules for the operation of the system, including by requiring specified rules or rules to achieve a specified purpose, and (b) prohibiting the taking of specified action without the consent of, or without first notifying, the FCA. (4) A direction given under this section may be— (a) varied by further direction under this section, or (b) revoked at any time. (5) A direction, or a variation or revocation of a direction, must be— (a) given in writing to the participants to whom the direction applies, or (b) published in the way appearing to the FCA to be best calculated to bring it to the attention of persons likely to be affected by it. (6) The variation or revocation of a direction does not affect the validity of anything previously done in accordance with it. 131Z11 Power to direct: duty to consult
(1) This section applies in relation to a direction under section 131Z10. (2) Before the direction is given or, if the FCA considers it appropriate for reasons of urgency, as soon as reasonably practicable after the direction is given, the FCA must— (a) give written notice to the participant or participants to whom the direction applies or would apply, or (b) publish a notice in the way appearing to the FCA to be best calculated to bring it to the attention of persons likely to be affected by it. (3) A notice under subsection (2) must— (a) give details of the direction, (b) state the FCA’s reasons for the direction, and (c) inform the participants that they may make representations to the FCA within such period as may be specified in the notice. (4) The FCA may extend the period allowed under the notice for making representations. (8) In this section, reference to giving a direction includes reference to varying a direction by direction. 131Z12 Price control
(1) The FCA may exercise the powers in sections 131Z9 and 131Z10 to regulate fees or charges payable in connection with— (a) participation in a regulated payment system, or (b) the use of services provided by participants in a regulated payment system. (2) The reference to regulating fees or charges includes, for example, a reference to— (a) regulating how fees or charges are set; (b) imposing a methodology for calculation; (c) setting a maximum or minimum or range. Other powers relating to regulated payment systems
131Z13 Power to require granting of access to regulated payment systems
(1) This section applies where a person (“the applicant”) applies for a direction under this section. (2) The FCA may by direction require an operator of a regulated payment system to enable the applicant to become a payment system service provider in relation to the system. (3) The FCA may by direction require any payment system service provider with direct access to a regulated payment system to enter into an agreement with the applicant to enable the applicant to become a payment system service provider in relation to the system. (4) A direction under this section may provide for the applicant to become a payment system service provider in relation to a regulated payment system— (a) for a period specified in the direction; (b) on terms and conditions specified in the direction. (5) The FCA may exercise a power under this section only if it appears to the FCA that it is desirable to do so in order to advance one or more of the FCA’s payment systems objectives. (6) A direction under this section must be given in writing to— (a) the operator or payment system service provider to whom it applies, and (b) the applicant. 131Z14 Variation of agreements relating to regulated payment systems
(1) This section applies to the following agreements— (a) any agreement made between an operator or operators of a regulated payment system and a payment system service provider in relation to the system; (b) any agreement made between a payment system service provider with direct access to a regulated payment system and another person for the purposes of enabling that other person to become a payment system service provider in relation to the system; (c) any agreement concerning fees or charges payable in connection with— (i) participation in a regulated payment system, or (ii) the use of services provided by a participant in a regulated payment system. (2) The FCA may, by direction given on the application of a party to an agreement to which this section applies, vary the agreement by— (a) varying any of the fees or charges payable under the agreement, (b) in the case of an agreement within subsection (1)(a), varying any other terms and conditions relating to the payment system service provider’s participation in the payment system, or (c) in the case of an agreement within subsection (1)(b), varying any other terms and conditions relating to the other person’s participation in the payment system as a payment system service provider. (3) The power under this section to vary any fee or charge includes power to specify a maximum fee or charge. (4) If the FCA varies an agreement under this section, the agreement has effect subject to the variation. (5) The FCA may exercise a power under this section only if it appears to the FCA that it is desirable to do so in order to advance one or more of the FCA’s payment systems objectives. (6) A direction under this section must be given in writing to the parties of the agreement being varied. 131Z15 Power to require disposal of interest in regulated payment system
(1) The FCA may by direction require a person who has an interest in— (a) an operator of a regulated payment system, or (b) an infrastructure provider in relation to a regulated payment system, to dispose of all or part of that interest.(2) The power conferred by subsection (1) may be exercised only if the FCA is satisfied that, if the power is not exercised, there is likely to be a restriction or distortion of competition in— (a) the market for payment systems, or (b) a market for services provided by participants in payment systems. (3) The reference in subsection (2) to a restriction or distortion of competition includes, in particular, a restriction or distortion of competition— (a) between operators of different payment systems, (b) between different payment system service providers, or (c) between different infrastructure providers. (4) The FCA may not exercise the power conferred by subsection (1) without the consent of the Treasury. (5) If the FCA decides to exercise the power conferred by subsection (1) in relation to a person who has an interest in an operator of a regulated payment system— (a) the FCA must notify the Secretary of State and the CMA, and (b) neither the Secretary of State nor the CMA may take any action in relation to the person that would require the person to dispose of all or part of that interest. (6) A direction under this section must be given in writing to the person to whom the notice applies and to the operator or infrastructure provider concerned. 131Z16 Appeals to CMA
(1) A person who is affected by— (a) a decision to impose a requirement under section 131Z13, (b) a decision to vary an agreement under section 131Z14, or (c) a decision to impose a requirement under section 131Z15, may appeal to the CMA against the decision.(2) An appeal to the CMA— (a) may only be made with the permission of the CMA, and (b) must be made in accordance with this section. (3) The CMA may refuse permission for an appeal only if— (a) the appeal is made for reasons that are trivial or vexatious, or (b) the appeal has no reasonable prospect of success. (4) In determining an appeal under this section, the CMA must have regard, to the same extent as is required of the FCA, to the matters to which the FCA must have regard in discharging its functions under section 131Z12, 131Z13 or 131Z14 (as appropriate). (5) In determining the appeal, the CMA— (a) may have regard to any matter to which the FCA may have regard in relation to the decision to which the appeal relates, but (b) must not, in the exercise of that power, have regard to any matter to which the FCA would not have been entitled to have regard in reaching its decision had it had the opportunity of doing so. (6) The CMA must either— (a) dismiss the appeal, or (b) quash the whole or part of the decision to which the appeal relates. (7) The CMA must act as mentioned in subsection (6)(b) only to the extent that it is satisfied that the decision was wrong on one or more of the following grounds— (a) that the FCA failed to properly have regard to any matter mentioned in subsection (4); (b) that the FCA failed to give appropriate weight to any matter mentioned in subsection (4); (c) that the decision was based, wholly or partly, on an error of fact; (d) that the decision was wrong in law. (8) If the CMA quashes the whole or part of a decision, it may either— (a) refer the matter back to the FCA with a direction to reconsider and make a new decision in accordance with its ruling, or (b) substitute its own decision for that of the FCA. (9) The CMA may not direct the FCA to take any action which it would not otherwise have the power to take in relation to the decision. (10) Schedule 12A contains further provision about the making of appeals in accordance with this section. Co-ordination between the regulators
131Z17 Co-ordination in relation to payment systems
(1) The following are regulators for the purposes of this section— (a) the FCA, (b) the PRA, and (c) the Bank of England. (2) The regulators must co-ordinate the exercise of their relevant functions with a view to ensuring— (a) that each regulator consults every other regulator (where not otherwise required to do so) in connection with any proposed exercise of a relevant function in a way that may have a material adverse effect on the advancement by the other regulator of any of its objectives; (b) that where appropriate each regulator obtains information and advice from every other regulator in connection with the exercise of its relevant functions in cases where the other regulator may be expected to have relevant information or relevant expertise. (3) The duty in subsection (2) applies only to the extent that compliance with the duty— (a) is compatible with the advancement by each regulator of any of its objectives, and (b) does not impose a burden on the regulators that is disproportionate to the benefits of compliance. (4) In this section, “relevant functions” means— (a) in relation to the FCA, the functions conferred on it by or under— (i) this Act, so far as they relate to the regulation of payment systems, payment services, electronic money, cash access services or cryptoassets; (ii) the Electronic Money Regulations 2011 (S.I. 2011/99), the Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911), the Payment Accounts Regulations 2015 (S.I. 2015/2038), or the Payment Services Regulations 2017 (S.I. 2017/752); (b) in relation to the PRA, functions conferred on it by or under this Act so far as they relate to the regulation of PRA-authorised persons who are participants in payment systems or carry on activities relating to payment services, the issuing of electronic money, cash access services or cryptoassets; (c) in relation to the Bank of England, its functions under Part 5 (payment systems) and Part 5A (wholesale cash distribution) of the Banking Act 2009. (5) In this section, “objectives” means— (a) in relation to the FCA— (i) operational objectives, payment systems objectives, and the purpose for which the FCA must exercise its functions under Part 8B (see section 131U(1)), and (ii) in its application as a secondary objective, the competitiveness and growth objective (see section 1EB); (b) in relation to the PRA— (i) the PRA’s objectives, and (ii) in their application as secondary objectives, the competition objective and competitiveness and growth objective (see section 2H); (c) in relation to the Bank of England, the Financial Stability Objective. (6) In this section, a reference to advancing objectives includes, in relation to the FCA, a reference to ensuring compliance with the requirements of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29th April 2015 on interchange fees for card-based payment transactions. (7) Where a regulator is proposing to exercise a function that is not one of its general functions, the reference to “objectives” in subsection (2)(a) does not include the secondary objectives mentioned in subsection (5)(a)(ii) and (b)(ii). (8) In this section, “general functions”— (a) in relation to the FCA, has the same meaning as in section 1B(6), and (b) in relation to the PRA, has the same meaning as in section 2J(1). 131Z18 Memorandum of understanding: payment systems
(1) The following are regulators for the purposes of this section— (a) the FCA, (b) the PRA, and (c) the Bank of England. (2) The regulators must prepare and maintain a memorandum which describes in general terms— (a) the role of each in relation to the exercise of relevant functions (having the meaning given in section 131Z17(4)), and (b) how they intend to comply with section 131Z17 in relation to the exercise of such functions. (3) The regulators must review the memorandum at least once in each calendar year. (4) The regulators must give the Treasury a copy of the memorandum and any revised memorandum. (5) The Treasury must lay before Parliament a copy of any document received by them under this section. (6) The regulators must ensure that the memorandum as currently in force is published in the way appearing to them to be best calculated to bring it to the attention of the public. (7) The memorandum need not relate to any aspect of compliance with section 131Z17 if the regulators consider— (a) that publication of information about that aspect would be against the public interest, or (b) that that aspect is a technical or operational matter not affecting the public. (8) The memorandum need not relate to matters which the regulators consider are adequately described in a memorandum under section 3E. General
131Z19 Persons whose interests are protected
For the purpose of any provision of this Part that refers to the FCA’s payment systems objectives in relation to the exercise of a power in relation to a particular person, it does not matter whether there is a relationship between that person and the persons whose interests will be protected by the exercise of the power.131Z20 Applications under this Part
(1) An application under this Part must— (a) be made in such manner as the FCA may direct, and (b) contain, or be accompanied by, such other information as the FCA may reasonably require. (2) At any time after the application is received and before it is determined, the FCA may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application. (3) The FCA may require an applicant to provide information which the applicant is required to provide to it under this section in such form, or to verify it in such a way, as the FCA may direct. (4) The FCA may give different directions, and impose different requirements, in relation to different applications or categories of application. (5) An applicant may withdraw an application by giving the FCA written notice at any time before the FCA determines it.
or payment systems objectives.
, as defined in section 425A;
(7) “Consumers” has the meaning given in section 425A but includes those who use, or are likely to use, services provided by participants in payment systems.
or the Payment Systems Regulator.
.(i) in subsection (6), for the words from “section 425” to the end there were substituted “section 1G but includes regulated persons within the meaning given in regulation 2 of the Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911)”;
165ZA FCA power to require information: payment systems
(1) The FCA may by notice in writing require a person to provide information or documents— (a) which the FCA thinks will help the Treasury in determining whether to designate a payment system under section 131Z5, or (b) which the FCA otherwise requires in connection with its functions relating to payment systems. (2) In particular, a notice under subsection (1) may require a participant in a regulated payment system to notify the FCA if events of a specified kind occur. (3) The information or documents must be provided or produced at such time and place as may be specified. (4) The FCA may specify that the information or documents must be provided or produced— (a) before the end of such reasonable period as may be specified, or (b) if the FCA considers it necessary for reasons of urgency, without delay. (5) The FCA may require any information provided under this section to be provided in such form as it may reasonably require. (6) The FCA may require— (a) any information provided, whether in a document or otherwise, to be verified in such manner, or (b) any document produced to be authenticated in such manner, as it may reasonably require.(7) “Specified” means specified in the notice.
(11),insert
(11A),;
(11A) This subsection applies to a person who is, or has been, a participant in a regulated payment system.
(9C) The powers conferred by this section may also be exercised by the FCA in relation to a participant in a regulated payment system (and references to an authorised person are to be read accordingly).
;
;(f) a participant in a regulated payment system.
or (e)substitute
, (e) or (f);
or (e)substitute
, (e) or (f);
or (e)substitute
, (e) or (f).
, or
(b) a participant in a regulated payment system may have contravened a direction given under section 131Z10.
;
.(f) a participant in a regulated payment system
(5) In subsection (2)(aa) “objectives”, in relation to the FCA, means operational objectives.
,
but does not include a requirement imposed under section 131Z14 or 131Z15.
(3) If the FCA considers that a participant in a regulated payment system who is not an authorised person has contravened a relevant requirement imposed on the participant, it may publish a statement to that effect.
(1B) If the FCA considers that a participant in a regulated payment system who is not an authorised person has contravened a relevant requirement imposed on the participant, it may impose on the participant a penalty, in respect of the contravention, of such amount as it considers appropriate.
(1B) If the FCA proposes— (a) to publish a statement in respect of a participant in a regulated payment system under section 205(3), or (b) to impose a penalty on a participant under section 206(1B), it must give the participant a warning notice.
;(1B) If the FCA decides— (a) to publish a statement in respect of a participant in a regulated payment system under section 205(3), or (b) to impose a penalty on a participant under section 206(1B), it must without delay give the participant a decision notice.
(6) If the FCA decides— (a) to publish a statement in respect of a participant in a regulated payment system under section 205(3), or (b) to impose a penalty on a participant under section 206(1B), the participant may refer the matter to the Tribunal.
(3) After a statement under section 205(3) is published, the FCA must send a copy of it to the participant to whom the statement relates and to any person to whom a copy of the decision notice was given under section 393(4).
234CA Complaints by designated representative bodies
(1) A designated representative body may make a complaint to the FCA that a feature, or combination of features, of a market in the United Kingdom for payment systems or services provided by participants in payment systems is, or appears to be, significantly damaging the interests of those who use, or are likely to use, those services (“service-users”). (2) “Designated representative body” means a body designated by the Treasury by regulations. (3) The Treasury— (a) may designate a body only if it appears to them to represent the interests of service-users of any description, and (b) must publish in such manner as they think fit (and may from time to time vary) criteria to be applied by them in determining whether to make or revoke a designation. (4) In this section— (a) “market in the United Kingdom” has the meaning given in section 140A; (b) the reference to a feature of a market in the United Kingdom for payment systems or services provided by participants in payment systems has a meaning corresponding to that which a reference to a feature of a market in the United Kingdom for goods and services has (by virtue of section 140A(3)) for the purposes of Chapter 4 of Part 9A.
the Competition and Markets Authority (referred to in this Part as “the CMA”)substitute
the CMA;
financial servicesinsert
or the provision of services by participants in payment systems.
.(da) the power to give, vary or revoke a direction under section 131Z10; (db) the power to require access under section 131Z13; (dc) the power to vary an agreement under section 131Z14; (dd) the power to require a disposal under section 131Z15;
financial servicesinsert
, payment systems, and the services provided by participants in payment systems.
and 3Qsubstitute
, 3Q and 131Z17;
the Competition and Markets Authoritysubstitute
the CMA.
,
but does not include a requirement imposed under section 131Z15;.
380A Enforcement of requirement to dispose of interest in a payment system
(1) A requirement imposed under section 131Z15 (power to require disposal of interest in a payment system) is enforceable on application by the FCA for an injunction or for interdict or for any other appropriate relief or remedy. (2) The FCA may not bring an application to enforce a requirement imposed under that section unless— (a) the time for bringing an appeal against the decision to impose the requirement has expired and no appeal has been brought within that time, or (b) the person on whom the requirement was imposed has within that time brought such an appeal and the appeal has been dismissed or withdrawn.
.(ba) prejudicial to the interests of others who use, or are likely to use, services provided by participants in payment systems (ignoring the person with respect to whom the action was taken, or was proposed to be taken), or
207(1) or (1A)substitute
207(1), (1A) or (1B);
208(1) or (1A)substitute
208(1), (1A) or (1B).
the Competition and Markets Authoritysubstitute
the CMA.
or relating to the regulation of payment systems.
;the CMA means the Competition and Markets Authority;
;infrastructure provider, in relation to a payment system, has the meaning given in section 131Z4;
;operator, in relation to a payment system, has the meaning given in section 131Z4;
;participant, in relation to a payment system, has the meaning given in section 131Z4 (and references to participation are to be read in accordance with that section);
;payment system has the meaning given in section 131Z3;
;payment systems objectives has the meaning given in section 131Z7;
;payment system service provider has the meaning given in section 131Z4;
;regulated payment system has the meaning given in section 131Z3;
the Payment Systems Regulator.
the Competition and Markets Authoritysubstitute
the CMA.
131O(7),insert
131Z4(7),.
or of the Payment Systems Regulator;
;(ba) the extent to which, in its opinion, its payment systems objectives have been advanced,
and
;(f) participants in regulated payment systems.
Schedule 12A3 — Procedure for appeals to the CMA
Functions of CMA to be discharged by group
1 Except where specified otherwise in this Schedule, the functions of the CMA with respect to an appeal are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (see paragraph 35 of that Schedule). Application for permission to bring appeal
2 (1) An application for permission to bring an appeal may be made only by sending a notice to the CMA requesting the permission. (2) An application for permission to appeal must be accompanied by all such information as may be required by appeal rules. (3) Appeal rules may require information contained in an application for permission to appeal to be verified by a statement of truth. (4) A person who applies for permission to bring an appeal in accordance with this paragraph is referred to in this Schedule as the appellant. (5) The appellant must send the FCA— (a) a copy of the application for permission to appeal at the same time as it is sent to the CMA, and (b) such other information as may be required by appeal rules. (6) The CMA's decision whether to grant permission to appeal is to be taken by an authorised member of the CMA. (7) Before the authorised member decides whether to grant permission under this paragraph, the FCA must be given an opportunity of making representations or observations, in accordance with paragraph 4(2). (8) The CMA's decision on an application for permission must be made— (a) where the FCA makes representations or observations in accordance with paragraph 4(2), before the end of the period of 10 working days beginning with the first working day after the day on which those representations or observations are received; (b) in any other case, before the end of the period of 14 working days beginning with the first working day after the day on which the application for permission was received. (9) The grant of permission may be made subject to conditions, which may include— (a) conditions which limit the matters that are to be considered on the appeal in question; (b) conditions for the purpose of expediting the determination of the appeal; (c) conditions requiring the appeal to be considered together with other appeals (including appeals relating to different matters or decisions and appeals brought by different persons). (10) Where a decision is made to grant or to refuse an application for permission, an authorised member of the CMA must notify the decision, giving reasons, to— (a) the appellant, and (b) the FCA. (11) A decision of the CMA under this paragraph must be published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is made. (12) The CMA may exclude from publication under sub-paragraph (11) any information which it is satisfied is— (a) commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or (b) information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests. Suspension of decision
3 (1) The CMA may direct that, pending the determination of an appeal against a decision of the FCA— (a) the decision is not to have effect, or (b) the decision is not to have effect to such extent as may be specified in the direction. (2) The power to give a direction under this paragraph is exercisable only where— (a) an application for a direction is made by the appellant at the same time as the appellant makes an application in accordance with paragraph 2 for permission to bring an appeal against a decision of the FCA, (b) the FCA has been given an opportunity of making representations or observations, in accordance with paragraph 4(2), and (c) the balance of convenience does not otherwise require effect to be given to the decision pending the determination of the appeal. (3) The CMA's decision on an application for a direction under this paragraph must be made— (a) where the FCA makes representations or observations in accordance with paragraph 4(2), before the end of the period of 10 working days beginning with the first working day after the day on which those representations or observations are received; (b) in any other case, before the end of the period of 14 working days beginning with the first working day following the day on which the application for the direction is received. (4) The appellant must send the FCA a copy of the application for a direction under this paragraph at the same time as it is sent to the CMA. (5) The CMA's decision whether to give a direction is to be taken by an authorised member of the CMA. (6) A direction under this paragraph must be— (a) given by an authorised member of the CMA, and (b) published, in such manner as an authorised member of the CMA considers appropriate, as soon as reasonably practicable after it is given. (7) The CMA may exclude from publication under sub-paragraph (6)(b) any information which it is satisfied is— (a) commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or (b) information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA's opinion, significantly harm the individual's interests. Time limit for representations and observations by the FCA
4 (1) Sub-paragraph (2) applies where the FCA wishes to make representations or observations to the CMA in relation to— (a) an application for permission to bring an appeal under paragraph 2; (b) an application for a direction under paragraph 3. (2) The FCA must make the representations or observations in writing before the end of the period of 10 working days beginning with the first working day after the day on which it received a copy of the application under paragraph 2(5) or 3(4) (as the case may be). (3) Sub-paragraph (4) applies where an application for permission to bring an appeal has been granted and the FCA wishes to make representations or observations to the CMA in relation to— (a) the FCA’s reasons for the decision in relation to which the appeal is being brought; (b) any grounds on which that appeal is being brought against that decision. (4) The FCA must make the representations or observations in writing before the end of the period of 15 working days beginning with the first working day after the day on which permission to bring the appeal was granted. (5) The FCA must send a copy of the representations and observations it makes under this paragraph to the appellant. Consideration and determination of appeal by group
5 (1) A group constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 for the purpose of carrying out functions of the CMA with respect to an appeal must consist of three members of the CMA panel. (2) A decision of the group is effective if, and only if— (a) all the members of the group are present when it is made, and (b) at least two members of the group are in favour of the decision. Time limits for determining appeal
6 (1) The CMA must determine an appeal within the period of 6 months beginning with the permission date. (2) If— (a) the CMA has received representations on the timing of the determination from a party to the appeal, and (b) it is satisfied that there are special reasons why the determination cannot be made within the period specified in sub-paragraph (1), the CMA must determine the appeal within the period specified by it, which must not be longer than the period of 7 months beginning with the permission date.(3) In a case where sub-paragraph (2) applies, the CMA must also— (a) inform the parties to the appeal of the time limit for determining the appeal, and (b) publish that time limit in such manner as it considers appropriate for the purpose of bringing it to the attention of any other persons likely to be affected by the determination. (4) In this paragraph the “permission date” in relation to an appeal is the date on which the CMA gave permission to bring the appeal in accordance with section 131Z16(2)(a). Matters to be considered on appeal
7 The CMA, if it thinks it necessary to do so for the purpose of securing the determination of an appeal within the period provided for by paragraph 6, may disregard— (a) any or all matters raised by an appellant that were not raised by that appellant at the time when the application for permission to appeal was made, and (b) any or all matters raised by the FCA that were not contained in representations or observations made for the purposes of the appeal in accordance with paragraph 4. Production of documents etc
8 (1) For the purposes of this Schedule, the CMA may by notice— (a) require a person to produce to the CMA the documents specified or otherwise identified in the notice; (b) require any person who carries on a business to supply to the CMA such estimates, forecasts, returns or other information as may be specified or described in the notice in relation to that business. (2) The power to require the production of a document, or the supply of any estimate, forecast, return or other information, is a power to require its production or, as the case may be, supply— (a) at the time and place specified in the notice, and (b) in a legible form. (3) No person is to be compelled under this paragraph to produce a document or supply an estimate, forecast, return or other information which the person could not be compelled to produce in civil proceedings in the High Court or Court of Session. (4) An authorised member of the CMA may, for the purpose of the exercise of the functions of the CMA, make arrangements for copies to be taken of a document produced or an estimate, forecast, return or other information supplied to it under this paragraph. (5) A notice for the purposes of this paragraph— (a) may be issued on the CMA's behalf by an authorised member of the CMA; (b) must include information about the possible consequences of not complying with the notice (as set out in paragraphs 12 and 13). Oral hearings
9 (1) For the purposes of this Schedule an oral hearing may be held, and evidence may be taken on oath— (a) by a person considering an application for permission to bring an appeal under paragraph 2, (b) by a person considering an application for a direction under paragraph 3, or (c) by a group with the function of determining an appeal; and, for that purpose, such a person or group may administer oaths.(2) The CMA may by notice require a person— (a) to attend at a time and place specified in the notice, and (b) at that time and place, to give evidence to a person or group mentioned in sub-paragraph (1). (3) At any oral hearing the person or group conducting the hearing may— (a) require the appellant or the FCA, if present at the hearing, to give evidence or to make representations or observations, or (b) require a person attending the hearing as a representative of the appellant or of the FCA to make representations or observations. (4) A person who gives oral evidence at the hearing may be cross-examined by or on behalf of any party to the appeal. (5) If the appellant, the FCA, or the appellant's or FCA's representative is not present at a hearing— (a) there is no requirement to give notice to that person under sub-paragraph (2), and (b) the person or group conducting the hearing may determine the application or appeal without hearing that person's evidence, representations or observations. (6) No person is to be compelled under this paragraph to give evidence which the person could not be compelled to give in civil proceedings in the High Court or Court of Session. (7) Where a person is required under this paragraph to attend at a place more than 10 miles from the person's place of residence, an authorised member of the CMA must arrange for the person to be paid the necessary expenses of attendance. (8) A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA. Written statements
10 (1) The CMA may by notice require a person to produce a written statement with respect to a matter specified in the notice to— (a) a person who is considering, or is to consider, an application for a direction under paragraph 3, or (b) a group with the function of determining an appeal. (2) The power to require the production of a written statement includes power— (a) to specify the time and place at which it is to be produced, and (b) to require it to be verified by a statement of truth; and a statement required to be so verified must be disregarded unless it is so verified.(3) No person is to be compelled under this paragraph to produce a written statement with respect to any matter about which the person could not be compelled to give evidence in civil proceedings in the High Court or Court of Session. (4) A notice for the purposes of this paragraph may be issued on the CMA's behalf by an authorised member of the CMA. Expert advice
11 Where permission to bring an appeal is granted under paragraph 2, the CMA may commission expert advice with respect to any matter raised by a party to the appeal. Defaults in relation to evidence
12 (1) If a person (“the defaulter”)— (a) fails to comply with a notice issued or other requirement imposed under paragraph 8, 9 or 10, (b) in complying with a notice under paragraph 10, makes a statement that is false in any material particular, or (c) in providing information verified in accordance with a statement of truth required by appeal rules, provides information that is false in a material particular, an authorised member of the CMA may certify that fact to the court.(2) If the court is satisfied that the defaulter failed without reasonable excuse to comply with the notice or other requirement, or made the false statement, or provided the false information, it may deal with the defaulter (and in the case of a body corporate, any director or other officer of the body) as if that person were in contempt. (3) In sub-paragraph (2) “officer”, in relation to a limited liability partnership, means a member of the limited liability partnership. (4) In this paragraph “court” means— (a) the High Court, or (b) in Scotland, the Court of Session. 13 (1) A person who wilfully alters, suppresses or destroys a document which the person has been required to produce under paragraph 8 is guilty of an offence. (2) A person who commits an offence under this paragraph is liable— (a) on summary conviction— (i) in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine, or both; (ii) in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum, or both; (iii) in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum, or both; (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both. Determination of appeal by CMA
14 (1) A determination by the CMA on an appeal— (a) must be contained in an order made by the CMA; (b) must set out the reasons for the determination; (c) takes effect at the time specified in the order or determined in accordance with provision made in the order; (d) must be notified by the CMA to the parties to the appeal; (e) must be published by the CMA— (i) as soon as reasonably practicable after the determination is made; (ii) in such manner as the CMA considers appropriate for the purpose of bringing the determination to the attention of any person likely to be affected by it (other than a party to the appeal). (2) The CMA may exclude from publication under sub-paragraph (1)(e) any information which it is satisfied is— (a) commercial information, the disclosure of which would, or might in the CMA's opinion, significantly harm the legitimate business interests of an undertaking to which it relates, or (b) information relating to the private affairs of an individual, the disclosure of which would, or might in the CMA’s opinion, significantly harm the individual's interests. (3) The FCA must take such steps as it considers necessary for it to comply with an order of the CMA made by virtue of sub-paragraph (1)(a). (4) The steps must be taken— (a) if a period of time is specified in (or is to be determined in accordance with) the order, within that time; (b) in any other case, within a reasonable period of time. Appeal rules
15 (1) The CMA Board may make rules of procedure regulating the conduct and disposal of appeals. (2) Those rules may include provision supplementing the provisions of this Schedule in relation to any application, notice, hearing, power or requirement for which this Schedule provides; and that provision may, in particular, impose time limits or other restrictions on— (a) the taking of evidence at an oral hearing, or (b) the making of representations or observations at such a hearing. (3) The CMA Board must publish rules made under this paragraph in such manner as it considers appropriate for the purpose of bringing them to the attention of those likely to be affected by them. (4) Before making rules under this paragraph, the CMA Board must consult such persons as it considers appropriate. (5) Rules under this paragraph may make different provision for different cases. Costs
16 (1) A group that determines an appeal must make an order requiring the payment to the CMA of the costs incurred by the CMA in connection with the appeal. (2) An order under sub-paragraph (1) must require those costs to be paid— (a) where the appeal is allowed in full, by the FCA; (b) where the appeal is dismissed in full, by the appellant; (c) where the appeal is partially allowed, by one or more parties in such proportions as the CMA considers appropriate in all the circumstances. (3) The group that determines an appeal may also make such order as it thinks fit for requiring a party to the appeal to make payments to another party in respect of costs reasonably incurred by that other party in connection with the appeal. (4) A person who is required by an order under this paragraph to pay a sum to another person must comply with the order before the end of the period of 28 days beginning with the day after the day on which the order was made. (5) Sums required to be paid by an order under this paragraph but not paid before the end of the period mentioned in sub-paragraph (4) are to bear interest at such rate as may be determined in accordance with provision contained in the order. (6) Any costs payable by virtue of an order under this paragraph and any interest that has not been paid may be recovered as a civil debt by the person in whose favour the order is made. Interpretation
17 (1) In this Schedule— “appeal” means an appeal made in accordance with section 131Z16; “appeal rules” means rules of procedure under paragraph 15; “appellant” has the meaning given by paragraph 2(4); authorised member of the CMA— (a) in relation to a function exercisable in connection with an appeal in respect of which a group has been constituted by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, means a member of that group who has been authorised by the chair of the CMA to exercise that function; (b) in relation to a function exercisable in connection with an application for permission to bring an appeal, or otherwise in connection with an appeal in respect of which a group has not been so constituted by the chair of the CMA, means—
(i)any member of the CMA Board who is also a member of the CMA panel, or
(ii)any member of the CMA panel authorised by the Treasury (whether generally or specifically) to exercise the function in question;
“CMA Board” and “CMA panel” have the same meaning as in Schedule 4 to the Enterprise and Regulatory Reform Act 2013; “group” means a group selected in accordance with paragraph 5; “statement of truth”, in relation to the production of a statement or provision of information by a person, means a statement that the person believes the facts stated in the statement or information to be true; “working day” means any day other than— (a) Saturday or Sunday; (b) Christmas Day or Good Friday; (c) a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom. (2) References in this Schedule to a party to an appeal are references to— (a) the appellant, or (b) the FCA.
Part 2 — Amendments to other legislation¶
(4) In subsection (2)(a), the reference to consumers includes a reference to any person who uses, or is likely to use, services provided by participants in payment systems in the course of a business carried on by the person (and “participants” and “payment systems” have the meaning given in Part 8C of the Financial Services and Markets Act 2000).
the Payment Systems Regulatorsubstitute
the FCA;
;(aa) if the operator of the system or the DSA service provider has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, consult the PRA,
the Payment Systems Regulatorsubstitute
the FCA;
;(aa) if the operator of the system or the DSA service provider has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, consult the PRA,
the Payment Systems Regulatorsubstitute
the FCA;
;(aa) if the operator of the system or the DSA service provider has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, consult the PRA,
;(2) The Bank of England must consult the FCA before taking action under this Part in respect of— (a) a recognised payment system the operator of which— (i) is, or has applied to become, a recognised investment exchange, or (ii) has, or has applied for, a Part 4A permission, (b) a service provider in relation to a payment system referred to in paragraph (a), or (c) a service provider which— (ii) is, or has applied to become, a recognised investment exchange, or (iii) has, or has applied for, a Part 4A permission. (2A) The Bank of England must consult the PRA before taking action under this Part in respect of— (a) a recognised payment system the operator of which has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, (b) a service provider in relation to a payment system referred to in paragraph (a), or (c) a service provider which has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity.
orafter paragraph (a);
, or
(c) a participant in a regulated payment system (as defined in Part 8C of the Financial Services and Markets Act 2000 (see section 131Z4 of that Act)).
, the Payment Systems Regulator.
;(aa) a participant in a regulated payment system,
;participant has the same meaning as in Part 8C of the Financial Services and Markets Act 2000 (see section 131Z4 of that Act);
the Payment Systems Regulator.
, PRA and Payment Systems Regulatorsubstitute
and the PRA;
, PRA or Payment Systems Regulatorsubstitute
or the PRA;
, PRA or Payment Systems Regulatorsubstitute
or the PRA;
, PRA or Payment Systems Regulatorsubstitute
or the PRA.
Part 5 of the Financial Services (Banking Reform) Act 2013substitute
FSMA 2000, or by Part 5 of the Financial Services (Banking Reform) Act 2013,.
;(1A) Subsection (3) also applies where it appears to the FCA that— (a) events have occurred in relation to a regulated payment system which had or could have had a significant adverse effect on effective competition in the interests of those who use, or are likely to use, the services provided by participants in the payment system in the markets described in paragraph (a) and (b) of section 131Z8 of FSMA 2000 (the payment systems competition objective), and (b) those events might not have occurred, or the adverse effect might have been reduced, but for a serious failure in— (i) the system established by FSMA 2000, or by Part 5 of the Financial Services (Banking Reform) Act 2013, for the regulation of payment systems, or (ii) the operation of that system.
subsection (1)insert
or (1A);
subsection (1)insert
or (1A);
(6) Terms used in subsection (1A) have the same meaning as in Part 8C of FSMA 2000 (see, in particular, section 131Z4 of that Act).
, the PRA or the Payment Systems Regulatorsubstitute
or the PRA.
131Z10,;
(4AA) For the purposes of subsection (2)(a), the FCA’s specified payment systems functions are the FCA’s functions under sections 131Z13 to 131Z15 of FSMA 2000.
section 79 of the Financial Services (Banking Reform) Act 2013substitute
section 131Z6 of the Financial Services and Markets Act 2000;
;(iiba) Schedule 12A to the Financial Services and Markets Act 2000.
or the Payment Systems Regulator.
section 1B(1), (4A) and (5)(a)substitute
section 1B(1) and (4A);
means rules made by a regulator under FSMA 2000 or any other enactment.
section 98” to “relevant functions)substitute
section 131Z17 of the Financial Services and Markets Act 2000 (co-ordination in relation to payment systems).
Part 3 — Consequential amendments¶
Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act)substitute
Part 8C of the Financial Services and Markets Act 2000 (see sections 131Z3 and 131Z4 of that Act);
that Actin the first place it occurs, substitute
the Financial Services (Banking Reform) Act 2013;
Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act)substitute
Part 8C of the Financial Services and Markets Act 2000 (see sections 131Z3 and 131Z4 of that Act);
that Actin the first place it occurs, substitute
the Financial Services (Banking Reform) Act 2013.
Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 42 of that Act)substitute
Part 8C of the Financial Services and Markets Act 2000 (see sections 131Z3 and 131Z4 of that Act);
that Actin the first place it appears, substitute
the Financial Services (Banking Reform) Act 2013.
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
The Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013.
Part 4 — Transitional provision¶
Continuation of things done or being done¶
Preparation for transfer of functions¶
References in documents¶
Powers¶
Interpretation¶
Schedule 34 — Senior managers: notification to regulator¶
Part 1 — Authorised persons¶
(a) an approval given by the appropriate regulator under this section, or (b) in the case of a designated senior management function specified under subsection (3A), a notification made to the appropriate regulator under this section.
(a) an approval given by the appropriate regulator under this section, or (b) in the case of a designated senior management function specified under subsection (3A), a notification made to the appropriate regulator under this section.
(3A) Rules of the FCA and PRA may, for the purposes of subsections (1)(b) and (2)(b), specify a description of designated senior management function by reference to— (a) activities to which the function relates, (b) characteristics of the person who is to perform the function, including any existing or prior approvals, (c) characteristics of an authorised person, employer, contractor or associated group, or (d) anything else that the regulator considers appropriate. (3B) But, in relation to the carrying on of a regulated activity by a PRA-authorised person— (a) rules of the FCA may specify a description of designated senior management function only so far as the function is of a description specified by the FCA in rules under subsection (3)(a); (b) rules of the PRA may specify a description of designated senior management function only so far as the function is of a description specified by the PRA in rules under subsection (3)(a).
(4) “The appropriate regulator” means— (a) in relation to approval for performance of a function— (i) the FCA, if the function is of a description specified in rules of the FCA under subsection (3), or (ii) the PRA with the consent of the FCA, if the function is of a description specified in rules of the PRA under subsection (3); (b) in relation to notification for performance of a function— (i) the FCA, if the function is of a description specified in rules of the FCA under subsection (3A), or (ii) the PRA, if the function is of a description specified in rules of the PRA under subsection (3A).
(4A) “Notification” means a notification under section 59.
(2ZA) An authorised person may not make an application for approval under section 59 in relation to the performance of a function if the authorised person could instead make a notification under section 59 in relation to that function.
60ZA Notifications under section 59
(1) A notification under section 59 may be made to the appropriate regulator by the authorised person concerned. (2) The appropriate regulator may require a notification to have such form and content, and be made in such manner and circumstances, as the appropriate regulator may direct. (3) Different directions may be given in relation to different notifications or categories of notification. (4) Rules of the appropriate regulator may include provision about— (a) the time at which notifications take effect; (b) matters that would prevent a notification being effective for the purpose of section 59. (5) The authorised person concerned may withdraw a notification before it takes effect by written notice to the appropriate regulator, but only with the consent of— (a) the person in respect of whom the notification is made (the “notified person”), and (b) the person by whom the notified person is to be retained to perform the function concerned, if not the authorised person. (6) A requirement imposed under section 55L or 55M may prevent an authorised person from making a notification under section 59. (7) In this section— appropriate regulator, in relation to a notification for the performance of a function, means— (a) the FCA, if the function is of a description specified in rules of the FCA under section 59(3A), or (b) the PRA, if the function is of a description specified in rules of the PRA under section 59(3A); authorised person concerned includes a person who has applied for permission under Part 4A and would, if permission were given, be the authorised person concerned.
;(a) the approval was given by, or the notification was made to, the PRA under section 59, or (b) the approval was given by, or the notification was made to, the FCA under section 59 in relation to a function that— (i) is a relevant senior management function, and (ii) relates to the carrying on of a regulated activity by a PRA-authorised person,
and the PRA considers that A is not a fit and proper person to perform the function.
(5A) A notification that is invalidated under this section ceases to have effect for the purpose of section 59.
(A1) This section applies in relation to— (a) approvals under section 59 for the performance of a designated senior management function in relation to the carrying out of a regulated activity by an authorised person; (b) notifications under section 59.
;(ia) the notification was made to the PRA;
.(iii) the notification was made to the FCA and the authorised person is a PRA-authorised person, and
(15) “Notification” means a notification under section 59.
(i) an approval given under section 59, or (ii) in the case of a designated senior management function specified under section 59(3A), a notification made under that section.
;(a) in the case of an approved or notified person, the authorised person on whose application approval was given or by whom the notification was made,
(5B) “Notification” means a notification made under section 59.
.(i) a person in relation to whom such approval is given on the application of the authorised person, or (ii) a person in relation to whom the authorised person made such a notification;
.(i) a person in relation to whom such approval is given on the application of the authorised person, or (ii) a person in relation to whom the authorised person made such a notification;
(8A) “Notification” means a notification made under section 59.
Part 2 — Relevant recognised bodies¶
(a) an approval given by the appropriate regulator under this section, or (b) in the case of a designated senior management function specified under subsection (6A), a notification made to the appropriate regulator under this section.
(6A) Rules made by the appropriate regulator may, for the purposes of subsection (1)(b), specify a description of designated senior management function by reference to— (a) activities to which the function relates, (b) characteristics of the person who is to perform the function, including any existing or prior approvals, (c) characteristics of a relevant recognised body, employer, contractor or associated group, or (d) anything else that the regulator considers appropriate.
(1A) A relevant recognised body may not make an application for approval under section 309G in relation to the performance of a function if the recognised body could instead make a notification under section 309G in relation to that function.
309IA Notifications under section 309G
(1) A notification under section 309G may be made to the appropriate regulator by a relevant recognised body. (2) The appropriate regulator may require a notification to have such form and content, and be made in such manner and circumstances, as the appropriate regulator may direct. (3) Different directions may be given in relation to different notifications or categories of notification. (4) Rules of the appropriate regulator may include provision about— (a) the time at which notifications take effect; (b) matters that would prevent a notification being effective for the purpose of section 309G. (5) The relevant recognised body concerned may withdraw a notification before it takes effect by written notice to the appropriate regulator, but only with the consent of— (a) the person in respect of whom the notification is made (the “notified person”), and (b) the person by whom the notified person is to be retained to perform the function concerned, if not the relevant recognised body. (6) A requirement under paragraph 9B of Schedule 17A, or a direction under section 296, may prevent a relevant recognised body from making a notification under section 309G. (7) The FCA may give a direction under section 296 to prevent a recognised investment exchange from making a notification under section 309G in a case where section 296 would not otherwise apply, if it appears to the FCA that it is desirable to do so in order to advance one or more of the FCA’s operational objectives. (8) In this section “relevant recognised body” includes— (a) if recognised investment exchanges are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 287; (b) if recognised central counterparties are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 288; (c) if recognised CSDs are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 288A.
(6) A notification that is invalidated under this section ceases to have effect for the purpose of section 309G.
(i) an approval given under section 309G, or (ii) in the case of a designated senior management function specified under section 309G(6A), a notification made under that section.
.(i) a person in relation to whom such approval is given on the application of the relevant recognised body, or (ii) a person in relation to whom the relevant recognised body made such a notification;
Part 3 — Consequential amendments¶
;(ba) a fee to be paid in respect of a notification under section 59;
(d) a fee to be paid in respect of a notification under section 309G.
, or
(c) a fee to be paid in respect of a notification under section 59.