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The Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) (Amendment) Order 2015

S.I. 2015/1660 · Made 8 September 2015

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Financial Services And Markets

Made 8th September 2015

Laid before Parliament 9th September 2015

Coming into force 1st October 2015

The Treasury, in exercise of the powers conferred by section 146 of the Financial Services (Banking Reform) Act 2013f1, make the following Order:

Annotations to the whole text

Footnotes

f1

2013 c.33 (“the 2013 Act”).

Contents

  1. 1Citation, commencement and interpretation
  2. 2Amendments to the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015
  3. 3Amendments to article 1 (citation, commencement and interpretation)
  4. 4Amendments to article 10 (period for consideration of an application to perform controlled functions)
  5. 5New articles 10A and 10B
  6. 6Amendment to article 12 (continuation of an application to perform controlled functions)
  7. 7Amendment to article 22 (consultation)
  8. Signature
  9. Explanatory note

1Citation, commencement and interpretation

(1)

This Order may be cited as the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) (Amendment) Order 2015 and comes into force on 1st October 2015.

2Amendments to the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015

The Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015f1 is amended in accordance with articles 3 to 7 of this Order.

3Amendments to article 1 (citation, commencement and interpretation)

(1)

Article 1(2) is amended as follows.

(2)

Omit the definition of “branch”.

(3)

For the definition of “class 2 firm” substitute—

  • ““class 2 firm” means a PRA-authorised personf1 other than a relevant authorised personf2;”.

(4)

After the definition of “FSMA” insert—

  • ““insurer” has the meaning given in section 71A(6)(d);

  • “non-UK institution” has the meaning given in section 71A(6)(b);”

(5)

Omit the definition of “the rule-making date”.

4Amendments to article 10 (period for consideration of an application to perform controlled functions)

(1)

Article 10 is amended as follows.

(2)

Article 10 becomes article 10(1).

(3)

After article 10(1) insert—

“(2)

In this article the “rule-making date” means—

(a)

in relation to a pre-implementation application concerning the performance of controlled functions in relation to a relevant non-UK institution (whether on the date concerned the institution is a class 1 or a class 2 firm)—

(i)

the date on which both regulators publish rules made under article 17 specifying in relation to relevant non-UK institutions equivalent functions for the purposes of this Order; or

(ii)

if the regulators publish such rules on different dates, the last day on which such rules are published;

(b)

in relation to a pre-implementation application concerning the performance of controlled functions in relation to an insurer that is not a solvency-II firm—

(i)

the date on which both regulators publish rules made under article 17 specifying in relation to such insurers equivalent functions for the purpose of this Order; or

(ii)

if the regulators publish such rules on different dates, the last day on which such rules are published; and

(c)

in relation to a pre-implementation application concerning the performance of controlled functions in relation to any other firm—

(i)

the date on which both regulators publish rules made under article 17 specifying in relation to such firms equivalent functions for the purposes of this Order; or

(ii)

if the regulators publish such rules on different dates, the last day on which such rules are published.

(3)

For the purposes of this article—

(a)

“relevant non-UK institution” has the meaning given in article 10A (relevant non-UK institutions); and

(b)

“solvency II firm” has the meaning given in article 10B (solvency II firms).”

5New articles 10A and 10B

After article 10 insert—

“Relevant non-UK institutions

10A.
(1)

A “relevant non-UK institution” is a non-UK institution which—

(a)

meets condition A or B;

(b)

has a branch in the United Kingdom; and

(c)

is not an insurer.

(2)

Condition A is that the non-UK institution is a credit institution which has permission under Part 4A or resulting from Schedule 3 or 4 to carry on the regulated activity of accepting depositsf1.

(3)

Condition B is that—

(a)

the non-UK institution is an investment firm;

(b)

it has permission under Part 4A or resulting from Schedule 3 or 4 to carry on the regulated activity of dealing in investments as principalf2; and

(c)

when carried on by it, that activity is a PRA-regulated activityf3.

(4)

In this article—

(a)

“branch” means a place of business that forms a legally dependent part of a non-UK institution and conducts directly all or some of the operations inherent in the institution’s business;

(b)

“credit institution” has the meaning given in section 71A(6)(c)f4;

(c)

“investment firm” has the meaning given in section 424Af5.

Solvency II firms

10B.
(1)

“Solvency II firm” means—

(a)

an insurance undertaking within the meaning of Article 13(1) of the Solvency II Directive that is not—

(i)

an insurance undertaking falling under Article 308b(1) of the Solvency II Directive; or

(ii)

excluded from the scope of the Solvency II Directive by Section 2 of Chapter 1 of Title 1 of that Directive;

(b)

a reinsurance undertaking within the meaning of Article 13(4) of the Solvency II Directive that is not—

(i)

a reinsurance undertaking falling under Article 308b(1) of the Solvency II Directive; or

(ii)

excluded from the scope of the Solvency II Directive by Section 2 of Chapter 1 of Title 1 of that Directive;

(c)

a special purpose vehicle within the meaning of Article 13(26) of the Solvency II Directive;

(d)

a third country insurance undertaking within the meaning of Article 13(3) of the Solvency II Directive which has a branch in the United Kingdom; or

(e)

a third country reinsurance undertaking within the meaning of Article 13(6) of the Solvency II Directive which has a branch in the United Kingdom.

(2)

In this article “branch” has the meaning given in Article 13(11) of the Solvency II Directivef6.”

6Amendment to article 12 (continuation of an application to perform controlled functions)

In article 12(1)(a) after “notified” insert “application”.

7Amendment to article 22 (consultation)

In article 22, for paragraph (2) substitute—

“(2)

The requirement may be satisfied by things done (wholly or in part)—

(a)

before the commencement of this Order, or

(b)

where the rules, instrument or document relate (wholly or in part) to a person to whom this Order applies as a result of any amendment to this Order, before the date on which that amendment comes into force.”.

Signature

David Evennett

George Hollingbery

Two of the Lords Commissioners of Her Majesty’s Treasury

8th September 2015

Explanatory note

(This note is not part of the Order)

This Order amends the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015 (the “transitional and savings Order”). The transitional and savings Order makes transitional and savings provisions in connection with the commencement of Part 4 of the Financial Services (Banking Reform) Act 2013 which makes amendments to Part 5 of the Financial Services and Markets Act 2000 (“FSMA”).

The amendments to the transitional and savings Order extend its scope to include all persons who are authorised by the Prudential Regulation Authority (“PRA”) to provide financial services in the United Kingdom, and to make minor changes to the definition of “rule-making date” in the transitional and savings Order.

Article 3 makes changes to the definitions used generally in the transitional and savings Order.

Article 4 amends article 10 of the transitional and savings Order to insert a new definition of “rule-making date” and article 5 inserts supplementary definitions for this purpose.

Articles 6 and 7 make minor amendments to the transitional and savings Order.

This Order will have no effect on the costs of business and the voluntary sector. For that reason, no impact assessment has been produced for this instrument.