PART 2Amendments to the Act

CHAPTER 6Part 9A of the Act: rules and guidance

Introduction34

Part 9A of the Act (rules and guidance) is amended as follows.

Section 137J (rules about recovery plans: duty to consult)35

In section 137J50 (rules about recovery plans: duty to consult), in subsection (6)51—

a

for the definition of “institution” substitute—

  • “institution” means—

    1. a

      a credit institution, other than an entity mentioned in Article 2.5 of the capital requirements directive; or

    2. b

      an investment firm as defined in Article 4.1(2) of the capital requirements regulation that is subject to the initial capital requirement specified in rules made by a regulator for the purpose of implementing Article 28(2) of the capital requirements directive;

b

in the definition of “institution authorised in the UK”, for “an institution which is an authorised person and” substitute “an authorised person who is”.

Section 137N (recovery plans and resolution packs: restriction on duty of confidence)36

In section 137N (recovery plans and resolution packs: interpretation), in subsection (5)52, in the definition of “qualifying parent undertaking” omit paragraph (b) and the “or” preceding it.

Section 137Q (price stabilising rules)37

1

Section 137Q (price stabilising rules) is amended as follows.

2

In subsection (3A)(b)53 for “EEA” substitute “United Kingdom”.

3

For subsection (5)54 substitute—

5

In this section references to Article 5 of the market abuse regulation include—

a

any technical standards originally adopted or made under that Article which are retained direct EU legislation, and

b

any technical standards made under that Article by the FCA.

Section 137R (financial promotion rules)38

1

Section 137R (financial promotion rules) is amended as follows.

2

In subsection (5)(b)55, for the words from “requirements” to “insurance distribution directive,” substitute “listed requirements”.

3

In subsection (5)(c)56, for “requirements mentioned in paragraph (b)” substitute “listed requirements”.

4

After subsection (5) insert—

5A

In subsection (5) “the listed requirements” means—

a

requirements under the law of any part of the United Kingdom that appear to the FCA to correspond to requirements of—

i

Articles 24 (general principles and information to clients) and 25 (assessment of suitability and appropriateness and reporting to clients) of the markets in financial instruments directive,

ii

Commission Delegated Directive (EU) 2017/593 of 7 April 2016, so far as adopted under those Articles,

iii

Article 77 of the UCITS directive,

iv

Articles 10 and 11 of the mortgages directive, or

v

Article 17 of the insurance distribution directive, and

b

requirements of any retained direct EU legislation originally made under Article 24(13) or 25(8) of the markets in financial instruments directive.

Section 138K (consultation: mutual societies)39

In section 138K58 omit subsections (5)(d)59 and (6) (references to EEA mutual societies).

Section 139A (power of the FCA to give guidance)40

In section 139A (power of the FCA to give guidance), in subsection (4)60 for “or a directly applicable regulation made under the market abuse regulation” substitute “, any retained EU direct legislation originally made under the market abuse regulation or any subordinate legislation (within the meaning of the Interpretation Act 1978) made on or after exit day under the market abuse regulation”.

Section 141A (power to make consequential amendments of references to rules etc)41

In section 141A (power to make consequential amendments of references to rules etc), after subsection (4) insert—

5

A regulator’s power under Part 2 of the Powers Regulations to amend its rules is treated for the purposes of this section as a power under this Part; and for this purpose “the Powers Regulations” means the Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1115).