PART 1 Introductory

Citation and interpretation

1. —(1) These Regulations may be cited as the Bank of England and Financial Services Act 2016 (Commencement No. 5 and Transitional Provisions) Regulations 2018.

(2) In these Regulations—

“the Act” means the Bank of England and Financial Services Act 2016;

“FSMA” means the Financial Services and Markets Act 2000( 2 );

“the appropriate regulator” has the meaning given in section 59(4) of FSMA (approval for particular arrangements)( 3 );

“controlled function” has the meaning given in section 59(3) of FSMA( 4 );

“designated senior management functions” has the meaning given in section 59ZB of FSMA (designated senior management functions)( 5 );

“insurer” means—

“the PRA” means the Prudential Regulation Authority;

“statement of responsibilities” has the meaning given in section 60(2B) of FSMA (applications for approval)( 8 ).

PART 2 Appointed Days

Appointed days for the coming into force of section 21 and Schedule 4 for insurers

2. —(1) The following provisions come into force on the appointed days only in relation to insurers.

(2) 13th September 2018 is the appointed day for the coming into force of section 21 (extension of relevant authorised persons regime to all authorised persons) (for the purpose of introducing Schedule 4 to the Act) for the purpose of making rules, giving directions, imposing requirements and making statements of policy by the appropriate regulator.

(3) 10th December 2018 is the appointed day for the coming into force of section 21, except paragraph 11 of that Schedule, for all other purposes.

(4) 10th December 2019 is the appointed day for the coming into force of paragraph 11 of Schedule 4 to the Act for all other purposes.

PART 3 Transitional Provisions

Prohibition orders

3. —(1) Paragraph (2) applies to—

(a) a warning notice or a decision notice under section 57 of FSMA (prohibition orders: procedure and right to refer to Tribunal)( 9 );

(b) a further decision notice concerning a prohibition order under section 390(2A) of FSMA (final notices)( 10 ) relating to a decision notice under that section;

(c) a final notice under section 390 about an order under section 56 of FSMA (prohibition orders)( 11 ); or

(d) a prohibition order under section 56 of FSMA,

which is given or made before 10th December 2018.

(2) The notice or prohibition order is not affected by—

(a) the amendments made to section 59 of FSMA by section 21 of, and Schedule 4 to, the Act (in so far as they relate to insurers); or

(b) rules made by the appropriate regulator under section 59 of FSMA before 10th December 2018 (in so far as they relate to insurers) which alter or replace a description of a controlled function to which the notice or prohibition order relates.

(3) But nothing in this regulation prevents a prohibition order that—

(a) is made in relation to a person on or after 10th December 2018; and

(b) relates to any functions to which a warning notice or decision notice given to the person before that date in respect of the order related,

from describing, or referring to, those functions in a different way from the way in which they were described or referred to in the notice.

Statement of responsibilities – deemed or continuing approval before 10th December 2018

4. —(1) This regulation applies where—

(a) Condition A, B or C is met; and

(b) Condition D is met.

(2) Condition A is that—

(a) a person has been given an approval by the appropriate regulator for the purposes of section 59 of FSMA( 12 ) before 10th December 2018; and

(b) rules made by the appropriate regulator before 10th December 2018 deem the approval referred to in sub-paragraph (a) to be an approval in relation to performing a designated senior management function on or after 10th December 2018.

(3) For the purposes of Condition A a reference to an approval in paragraph (2)(a) includes a reference to an approval, however described, in an Act or any subordinate legislation made under that Act.

(4) Condition B is that a person has been given a continuing approval by the PRA for the performance of a controlled function in relation to an insurer in accordance with the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015( 13 ).

(5) Condition C is that—

(a) an authorised person has made an application for approval to perform a controlled function under section 59 of FSMA on or after 1st January 2016 and before 10th December 2018; and

(b) the PRA has granted that approval on or after 7th March 2016.

(6) Condition D is that the authorised person is an insurer.

(7) An authorised person must prepare a statement of responsibilities in respect of a person referred to in Conditions A, B or C in the manner referred to in paragraph (8).

(8) The statement of responsibilities must be prepared, in accordance with section 62A of FSMA (change in responsibilities of senior managers)( 14 ), as if there had been a significant change in the aspects of the authorised person’s affairs which the person is responsible for managing in performing a controlled function.

(9) The powers of the appropriate regulator under section 62A(3) of FSMA shall apply in relation to the statement of responsibilities under this regulation as they apply where there is a significant change as set out in section 62A(2) of FSMA.

(10) For the purposes of this regulation “the appropriate regulator” has the meaning given in section 62A(4) of FSMA.

Application of section 62A of FSMA to a statement of responsibilities prepared under regulation 4

5. Where a statement of responsibilities is prepared in accordance with regulation 4(8) and (9), section 62A of FSMA has effect as if—

(a) subsection (1) was omitted;

(b) the reference in subsection (2) to “the granting of the application” was a reference to 10th December 2018; and

(c) the reference in that subsection to a statement of responsibilities included a reference to a statement under regulation 4(8) and (9).

PART 4 Miscellaneous

Consultation

6. —(1) This regulation applies where any provision of Part 9A of FSMA( 15 ) imposes on the appropriate regulator, in connection with the making or issuing of any rules or other instrument or document under Part 5 of FSMA—

(a) a requirement, however expressed, to publish a draft of the rules, instrument or other document with or without other material and to invite representations about it; or

(b) a requirement, however expressed, to consult with particular persons.

(2) The requirement may be satisfied by things done (wholly or in part) by the appropriate regulator before 11th November 2018.