Citation, extent and interpretation _I1

1. —(1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Commencement No. 2 and Transitional Provisions) Regulations 2023.

(2) These Regulations extend to England and Wales, Scotland, and Northern Ireland.

(3) In these Regulations—

“ rule ” means a rule made by the PRA or the FCA under FSMA 2000;

“ the Act ” means the Financial Services and Markets Act 2023.

Commencement of section 20 of, and Schedule 5 to, the Act _I2

2. —(1) The provisions listed in paragraph (2) come into force—

(a) on 6th September 2023, for the purpose of enabling the FCA to give directions, to give guidance and to make rules;

(b) on 6th November 2023, for the purpose of the FCA receiving, but not determining, applications for permission to approve financial promotions made during the application period.

(2) The provisions are—

(a) in section 20 (financial promotion)—

(i) subsection (1), so far as it relates to the provisions referred to in paragraph (ii) to (iv) below of this sub-paragraph;

(ii) subsection (2);

(iii) subsection (3), so far as it inserts section 55NA (general requirement relating to financial promotion approval) of FSMA 2000;

(iv) subsection (4), so far as it relates to the provisions referred to in sub-paragraph (b);

(b) in Schedule 5 (financial promotion: related amendments)—

(i) paragraph 1, so far as it relates to the provisions in sub-paragraph (ii);

(ii) paragraphs 2, 3, 4, 6, 7, 8, 9, 10, 11 and 12.

(3) Section 20 of, and Schedule 5 to, the Act come into force on 7th February 2024, so far as not already commenced by paragraphs (1) and (2).

(4) In paragraph (1)(b) and regulation 3(1), the “ application period ” means the period beginning with 6th November 2023 and ending with 6th February 2024.

Transitional provision relating to section 20 of, and Schedule 5 to, the Act _I3

3. —(1) The amendments made by the provisions of the Act listed in paragraph (2) do not apply to—

(a) an authorised person that has submitted an application under section 55NA(3)(a) of FSMA 2000( 2 ) during the application period; or

(b) a person who has communicated a communication the content of which is approved by that authorised person under section 21(2)(b) of FSMA 2000,

until the date when the application is determined.

(2) The provisions are—

(a) section 20(2);

(b) section 20(3), so far as it inserts section 55NA(1) and (2) into FSMA 2000;

(c) paragraph 3 of Schedule 5.

(3) Paragraph (1) ceases to have effect in relation to the approval of the content of a communication when—

(a) the application referred to in paragraph (1)(a) is determined; or

(b) the application is withdrawn under section 55V(4) of FSMA 2000.

(4) An application is determined for the purposes of this regulation when—

(a) a notice granting an application for permission under section 55V(5)(e) of FSMA 2000 (determination of applications)( 3 ) takes effect;

(b) an application for permission under section 55X(4)(f) of FSMA 2000 (determination of applications: warning notices and decision notices)( 4 ) is refused.

(5) Paragraph (3) does not affect the validity of an approval given before the application is determined or withdrawn (as the case may be).

Transitional provision for PRA rules implementing Basel 3.1 standards _I4

4. —(1) The amendments made by the provisions of the Act listed in paragraph (2) do not apply where the PRA takes a relevant action in connection with the document entitled “Implementation of the Basel 3.1 standards” published by the PRA on 30th November 2022 (PRA consultation paper 16/22)( 5 ).

(2) The provisions of the Act( 6 ) are—

(a) section 25(4) (competitiveness and growth objective);

(b) section 27 (regulatory principles);

(c) section 28(4) to (6) (sections 25 and 27: consequential amendments);

(d) section 31(2) and (4) (matters to consider when making rules);

(e) section 32 (effect of rules etc. on deference decisions);

[^F1 (ea) section 33 (effect of rules etc on international trade obligations); ^F1]

(f) section 36(2) (public consultation requirement);

(g) section 38(3) (engagement with parliamentary committees);

(h) section 43(3) (costs benefit analysis panels) so far as it inserts [^F2 section 138JA(2)(a), (11) ^F2] and (12) into FSMA 2000.

(3) For the purposes of paragraph (1), the PRA takes a relevant action—

(a) by the making of rules;

(b) by the making of standards instruments;

(c) by the determination of general policy and principles by reference to which the PRA performs particular functions under FSMA 2000; or

(d) by the taking of steps for the purposes of sub-paragraphs (a), (b) or (c),

but the taking of a relevant action does not include steps taken by the PRA necessary to amend rules or standards instruments made, or to modify policies determined, in connection with the document described in paragraph (1).

(4) Paragraph (1) applies regardless of whether the PRA makes rules or standards instruments or determines policies that—

(a) differ from published drafts of proposed rules, standards instruments, or policies; or

(b) result from further proposals made by the PRA in relation to matters connected with the document described in paragraph (1) (but see paragraph (3)).

(5) In this regulation, “ standards instrument ” means an instrument made by the PRA under Chapter 2A of Part 9A of FSMA 2000( 7 ).

Transitional provision for other PRA rules _I5

5. —(1) This regulation applies where—

(a) the PRA makes—

(i) CRR rules; or

(ii) section 192XA rules that are not CRR rules; and

(b) regulation 4(1) does not disapply the provisions listed in paragraph (2) of that regulation in relation to the making of the rules described in sub-paragraph (a).

(2) The following modifications apply during the period beginning with 29 August 2023 and ending with the day on which section 1 of, and Part 4 of Schedule 1 to the Act come into force, so far as those provisions repeal sections 144C, 144D and 144E of FSMA 2000( 8 ) for all purposes.

(3) To the extent that the provisions of FSMA 2000 listed in sub-paragraphs (a) to (f) would otherwise apply in relation to the making of CRR rules, those provisions are to be treated as if they were omitted—

(a) section 144C(1) and (2);

(b) in section 144C(5), the definition of “consumer”;

(c) section 144D(1) and (2)(b);

(d) section 144E(5);

(e) section 144E(6)(a) so far as it relates to an explanation described in section 144D(2);

(f) section 144E(7).

(4) To the extent that sections 144C, 144D and 144E of FSMA 2000 would otherwise apply by virtue of section 192XB(2)( 9 ) of that Act in relation to the making of section 192XA rules that are not CRR rules, section 192XB(2) is to be read subject to the modifications specified in paragraphs (3) and (5).

(5) For the purposes of paragraph (4), the following provisions of FSMA 2000 are to be treated as if they were omitted, so far as those provisions apply in relation to the making of rules that are not CRR rules in a rule-making instrument made under sections 192XA and 137G( 10 ) of FSMA 2000—

(a) section 144C(3) and (4);

(b) in section 144C(5), the definitions of “equivalence decision” and “territory”;

(c) section 144C(6).

(6) In this regulation—

(a) “ CRR rules ” has the meaning given by section 144A of FSMA 2000;

(b) “ rule-making instrument ” has the meaning given by section 138G(2) of FSMA 2000;

(c) “ section 192XA rules ” means rules made by the PRA under section 192XA( 11 ) of FSMA 2000.

Transitional Provision – control over authorised persons _I6

6. The amendments made by section 61 of the Act (control over authorised persons) do not apply in relation to a decision by the appropriate regulator under sections 185(1)(b)(i) and 187 of FSMA 2000 to approve with conditions an acquisition to which a section 178 notice relates, where that notice was received by the appropriate regulator before 29th August 2023.