Legislation – Financial Services and Markets Act 2023

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PART 1Regulatory framework

CHAPTER 1Revocation of assimilated law

3Power to make further transitional amendments

(1)

The Treasury may by regulations modify legislation referred to in Schedule 1 in relation to the transitional period.

(2)

The power under subsection (1) is exercisable only by making such modifications as the Treasury consider necessary or desirable for or in connection with one or more of the following purposes—

(a)

protecting and enhancing the integrity or stability of the financial system operating in the United Kingdom;

(b)

promoting the safety and soundness of persons providing financial services;

(c)

promoting effectiveness in the functioning of financial markets;

(d)

promoting effective competition in the interests of consumers in financial services and markets or persons who use, or are likely to use, services provided by payment systems in the course of business carried on by those persons;

(e)

facilitating the international competitiveness of the economy of the United Kingdom and its growth in the medium to long term;

(f)

protecting consumers and those who are, or may become, insurance policyholders;

(g)

providing for efficient and effective arrangements in relation to the exercise of functions under the Banking Act 2009 or Part 4 of this Act;

(h)

protecting public funds;

(i)

implementing, or making changes to reflect, developments in international standards and practices relating to, or applied for the purposes of, the provision of financial services or the operation of financial markets;

(j)

providing for efficient and effective regulatory, enforcement, investigatory and supervisory arrangements in relation to the provision of financial services or the operation of financial markets;

(k)

removing provisions that are yet to be commenced or changing the timing of their commencement.

(3)

In subsection (2)—

(a)

the integrity of the financial system operating in the United Kingdom includes the matters listed in section 1D(2) of FSMA 2000;

(b)

references to financial markets include references to financial exchanges;

(c)

“consumer” has the meaning given by section 1G(1) of FSMA 2000;

(d)

“payment system” has the same meaning as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 41 of that Act);

(e)

the reference to regulatory arrangements includes (among other things) a reference to arrangements for the making of rules.

(4)

In modifying legislation for or in connection with a purpose mentioned in subsection (2) regulations under this section may—

(a)

confer powers on the Treasury or on a regulator;

(b)

authorise the making of subordinate legislation by the Treasury;

(c)

authorise the making of rules or other instruments by a regulator;

(d)

provide for fees to be charged by a regulator in connection with the carrying out of its functions;

(e)

apply (with or without modifications), or make equivalent or similar provision to, provisions made by or under FSMA 2000 (including criminal offences created by that Act).

(5)

The power under section 84(2)(c) to make supplementary, incidental, consequential, transitional, transitory or saving provision includes, in relation to regulations under this section, power to restate legislation in a clearer or more accessible way.

(6)

Before making regulations under this section the Treasury must consult the regulators.

(7)

The duty under subsection (6), so far as relating to the Bank of England or the Payment Systems Regulator, applies only if, and to the extent that, the Treasury think it appropriate to consult that regulator in view of the modifications being made by the regulations.

(8)

The power under subsection (1) to modify legislation does not include power to modify—

(a)

primary legislation referred to in Part 4 of Schedule 1;

(b)

technical standards of the kind mentioned in section 138P(2)(a) of FSMA 2000;

(c)

EU tertiary legislation of the kind mentioned in section 138P(2)(b) of FSMA 2000.

(9)

Regulations under this section that modify only the following kinds of legislation referred to in Schedule 1 are subject to the negative procedure—

(a)

EU tertiary legislation;

(b)

subordinate legislation that was not subject to affirmative resolution on being made.

(10)

Regulations under this section to which subsection (9) does not apply are subject to the affirmative procedure.