Legislation – Financial Services and Markets Act 2023

“(2A)

The FCA must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—

(a)

action that the FCA has taken or intends to take in accordance with the recommendation, or

(b)

the reasons why the FCA has not acted or does not intend to act in accordance with the recommendation.

(2B)

The notice under subsection (2A) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given under subsection (1).

(2C)

Where the FCA has given notice under subsection (2A) in relation to a recommendation, the FCA must by notice in writing update the Treasury on the matters mentioned in subsection (2A)(a) and (b) before the end of each subsequent period of 12 months.

(2D)

Subsection (2C) does not apply if the Treasury have notified the FCA in writing that no update (or further update) is required.

(2E)

The FCA is not required under subsection (2A) or (2C) to provide any information whose publication would in the opinion of the FCA be against the public interest.”

“(2A)

The Prudential Regulation Committee must respond to each recommendation made to it under subsection (1) by notifying the Treasury in writing of—

(a)

action that the Prudential Regulation Committee has taken or intends to take in accordance with the recommendation, or

(b)

the reasons why the Prudential Regulation Committee has not acted or does not intend to act in accordance with the recommendation.

(2B)

The notice under subsection (2A) must be given before the end of 12 months beginning with the date the notice containing the recommendation was given under subsection (1).

(2C)

Where the Prudential Regulation Committee has given notice under subsection (2A) in relation to a recommendation, it must by notice in writing update the Treasury on the matters mentioned in subsection (2A)(a) and (b) before the end of each subsequent period of 12 months.

(2D)

Subsection (2C) does not apply if the Treasury have notified the Prudential Regulation Committee in writing that no update (or further update) is required.

(2E)

The Prudential Regulation Committee is not required under subsection (2A) or (2C) to provide any information whose publication would in the opinion of the Committee be against the public interest.”

“Requirements for public consultation

1RBRequirements in connection with public consultations

(1)

This section applies where the FCA issues a public consultation.

(2)

The FCA must include information in the consultation about any engagement by the FCA with the statutory panels of the FCA, the PRA or the Payment Systems Regulator in relation to the matters being consulted on.

(3)

The FCA is not required under subsection (2) to include any information whose publication would in the opinion of the FCA be against the public interest.

(4)

For the purposes of this section, the FCA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(5)

In this section “statutory panel”—

(a)

in relation to the FCA, has the meaning given by section 1RA(8),

(b)

in relation to the PRA, has the meaning given by section 2NA(8), and

(c)

in relation to the Payment Systems Regulator, means a panel established under section 103(3) of the Financial Services (Banking Reform) Act 2013.”

“Requirements for public consultation

2NBRequirements in connection with public consultations

(1)

This section applies where the PRA issues a public consultation.

(2)

The PRA must include information in the consultation about any engagement by the PRA with the statutory panels of the FCA, the PRA or the Payment Systems Regulator in relation to the matters being consulted on.

(3)

The PRA is not required under subsection (2) to include any information whose publication would in the opinion of the PRA be against the public interest.

(4)

For the purposes of this section, the PRA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(5)

In this section “statutory panel” has the meaning given by section 1RB(5).”

“(5)

In this paragraph “statutory panel” has the meaning given in section 1RB(5).”

“(6)

In this paragraph “statutory panel” has the meaning given in section 1RB(5).”

“Engagement with Parliamentary Committees

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(1)

This paragraph applies where the FCA issues a relevant consultation.

(2)

For the purposes of this paragraph the FCA issues a relevant consultation if it—

(a)

publishes a draft of proposed rules under section 138I,

(b)

publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or

(c)

publishes other proposals about the exercise of any of its general functions.

(3)

The FCA must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued.

(4)

The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—

(a)

advance the FCA’s operational objectives,

(b)

are compatible with the FCA’s strategic objective,

(c)

demonstrate that the FCA has had regard to the regulatory principles in section 3B when preparing the proposals, and

(d)

engage with matters to which the FCA must have regard under regulations made under section 138EA.

(5)

The reference in sub-paragraph (4)(a) to the FCA’s operational objectives includes, in its application as a secondary objective, the competitiveness and growth objective (see section 1EB).

(6)

The notification must also specify any other part of the consultation which the FCA considers should be drawn to the attention of the relevant Parliamentary Committees.

(7)

References in this paragraph to the relevant Parliamentary Committees are references to—

(a)

the Treasury Committee of the House of Commons,

(b)

the Committee of the House of Lords which—

(i)

is charged with responsibility by that House for the purposes of this paragraph, and

(ii)

has notified the FCA that it is a relevant Parliamentary Committee for those purposes, and

(c)

the Joint Committee of both Houses which—

(i)

is charged with responsibility by those Houses for the purposes of this paragraph, and

(ii)

has notified the FCA that it is a relevant Parliamentary Committee for those purposes.

(8)

References in this paragraph to the Treasury Committee of the House of Commons—

(a)

if the name of that Committee is changed, are references to that Committee by its new name, and

(b)

if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.

(9)

Any question arising under sub-paragraph (8) is to be determined by the Speaker of the House of Commons.

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(1)

This paragraph applies where—

(a)

the FCA issues a public consultation, and

(b)

a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the FCA representations in response to the consultation.

(2)

For the purposes of this paragraph, the FCA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing them to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(3)

The FCA must give to the chair of the Committee concerned a written response to the representations.

(4)

The duty to respond imposed by sub-paragraph (3) applies only so far as the FCA would not be under a corresponding duty to do so imposed by another enactment.

(5)

The FCA is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the FCA be against the public interest.”

“Engagement with Parliamentary Committees

36

(1)

This paragraph applies where the PRA issues a relevant consultation.

(2)

For the purposes of this paragraph the PRA issues a relevant consultation if it—

(a)

publishes a draft of proposed rules under section 138J,

(b)

publishes a proposal under a duty imposed by another provision of this Act or by any other enactment, or

(c)

publishes other proposals about the exercise of any of its general functions.

(3)

The PRA must, as soon as reasonably practicable after issuing the consultation, notify in writing the chair of each relevant Parliamentary Committee that the consultation has been issued.

(4)

The notification must specify the parts of the consultation (if any) that address the ways in which the proposals subject to consultation—

(a)

advance the PRA’s objectives,

(b)

demonstrate that the PRA has had regard to the regulatory principles in section 3B when preparing the proposals, and

(c)

engage with matters to which the PRA must have regard under regulations made under section 138EA.

(5)

The reference in sub-paragraph (4)(a) to the PRA’s objectives includes, in their application as secondary objectives, the competition objective and the competitiveness and growth objective (see section 2H).

(6)

The notification must also specify any other part of the consultation which the PRA considers should be drawn to the attention of the relevant Parliamentary Committees.

(7)

References in this paragraph to the relevant Parliamentary Committees are references to—

(a)

the Treasury Committee of the House of Commons,

(b)

the Committee of the House of Lords which—

(i)

is charged with responsibility by that House for the purposes of this paragraph, and

(ii)

has notified the PRA that it is a relevant Parliamentary Committee for those purposes, and

(c)

the Joint Committee of both Houses which—

(i)

is charged with responsibility by those Houses for the purposes of this paragraph, and

(ii)

has notified the PRA that it is a relevant Parliamentary Committee for those purposes.

(8)

References in this paragraph to the Treasury Committee of the House of Commons—

(a)

if the name of that Committee is changed, are references to that Committee by its new name, and

(b)

if the functions of that Committee (or substantially corresponding functions) become functions of a different Committee of the House of Commons, are to be treated as references to the Committee by which the functions are exercisable.

(9)

Any question arising under sub-paragraph (8) is to be determined by the Speaker of the House of Commons.

37

(1)

This paragraph applies where—

(a)

the PRA issues a public consultation, and

(b)

a Committee of the House of Commons or the House of Lords, or a joint Committee of both Houses, has provided to the PRA representations in response to the consultation.

(2)

For the purposes of this paragraph, the PRA issues a public consultation if it publishes the draft of any proposals for the purpose of bringing the proposals to the attention of the public (whether or not under a duty to do so imposed by an enactment).

(3)

The PRA must give to the chair of the Committee concerned a written response to the representations.

(4)

The duty to respond imposed by sub-paragraph (3) applies only so far as the PRA would not be under a corresponding duty to do so imposed by another enactment.

(5)

The PRA is not required under sub-paragraph (3) to provide any information whose publication would in the opinion of the PRA be against the public interest.”