Legislation – Financial Services and Markets Act 2023

After section 138I insert—

“138IAFCA Cost Benefit Analysis Panel

(1)

The FCA must establish and maintain a panel of persons (to be known as the “FCA Cost Benefit Analysis Panel”) to provide advice in relation to cost benefit analyses for the purposes of section 138I.

(2)

Except as provided by subsection (3), the FCA must consult the FCA Cost Benefit Analysis Panel about the following matters—

(a)

the preparation of a cost benefit analysis under section 138I(2)(a) or (5)(a);

(b)

the preparation of its statement of policy under section 138IB.

(3)

The requirement to consult under subsection (2)(a) does not apply in such cases as may be set out in the statement of policy maintained under section 138IB.

(4)

Arrangements made by the FCA under subsection (1) for the establishment and maintenance of the FCA Cost Benefit Analysis Panel must include arrangements for the Panel to—

(a)

keep under review how the FCA is performing generally in carrying out its duties under section 138I(2)(a) and (5)(a), and

(b)

provide to the FCA whatever recommendations the Panel thinks appropriate as a result of such review.

(5)

The FCA must appoint one of the members of the FCA Cost Benefit Analysis Panel to be the chair of the Panel.

(6)

The Treasury’s approval is required for the appointment or dismissal of the chair.

(7)

The FCA must appoint to the FCA Cost Benefit Analysis Panel such persons with knowledge or experience of the preparation of cost benefit analyses as it considers appropriate.

(8)

The FCA must appoint to the FCA Cost Benefit Analysis Panel at least two individuals who are employed by persons authorised for the purposes of this Act by the FCA, with each one being employed by a different person.

(9)

The FCA may appoint to the FCA Cost Benefit Analysis Panel such other persons as it considers appropriate.

(10)

Subsections (7) to (9) are subject to section 1MA.

(11)

The FCA must consider representations that are made to it by the FCA Cost Benefit Analysis Panel.

(12)

The FCA must from time to time publish in such manner as it thinks fit responses to the representations.”

After section 138J insert—

“138JAPRA Cost Benefit Analysis Panel

(1)

The PRA must establish and maintain a panel of persons (to be known as the “PRA Cost Benefit Analysis Panel”) to provide advice in relation to cost benefit analyses for the purposes of section 138J.

(2)

Except as provided by subsection (3), the PRA must consult the PRA Cost Benefit Analysis Panel about the following matters—

(a)

the preparation of a cost benefit analysis under section 138J(2)(a) or (5)(a);

(b)

the preparation of its statement of policy under section 138JB.

(3)

The requirement to consult under subsection (2)(a) does not apply in such cases as may be set out in the statement of policy maintained under section 138JB.

(4)

Arrangements made by the PRA under subsection (1) for the establishment and maintenance of the PRA Cost Benefit Analysis Panel must include arrangements for the Panel to—

(a)

keep under review how the PRA is performing generally in carrying out its duties under section 138J(2)(a) and (5)(a), and

(b)

provide to the PRA whatever recommendations the Panel thinks appropriate as a result of such review.

(5)

The PRA must appoint one of the members of the PRA Cost Benefit Analysis Panel to be the chair of the Panel.

(6)

The Treasury’s approval is required for the appointment or dismissal of the chair.

(7)

The PRA must appoint to the PRA Cost Benefit Analysis Panel such persons with knowledge or experience of the preparation of cost benefit analyses as it considers appropriate.

(8)

The PRA must appoint to the PRA Cost Benefit Analysis Panel at least two individuals who are employed by PRA-authorised persons, with each one being employed by a different person.

(9)

The PRA may appoint to the PRA Cost Benefit Analysis Panel such other persons as it considers appropriate.

(10)

Subsections (7) to (9) are subject to section 2LA.

(11)

The PRA must consider representations that are made to it by the PRA Cost Benefit Analysis Panel.

(12)

The PRA must from time to time publish in such manner as it thinks fit responses to the representations.

(13)

The reference in subsection (1) to section 138J includes a reference to that section as applied in relation to the Bank of England by paragraphs 10(1) and 10A of Schedule 17A.”

After section 138IA (inserted by section 43) insert—

“138IBStatement of policy in relation to cost benefit analyses

(1)

The FCA must prepare and publish a statement of policy in relation to the preparation of cost benefit analyses for the purposes of section 138I.

(2)

The statement must provide information about—

(a)

the methodology adopted in preparing cost benefit analyses;

(b)

matters to which the FCA has regard in determining whether section 138I(8) applies;

(c)

matters to which the FCA has regard in determining whether an exemption under section 138L applies in relation to the preparation of a cost benefit analysis;

(d)

arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 138I(2)(e) are considered;

(e)

cases in which the requirement to consult the FCA Cost Benefit Analysis Panel in relation to the preparation of a cost benefit analysis does not apply;

(f)

arrangements to ensure that any recommendations in connection with cost benefit analyses that are made following a review carried out under section 138IA(4) are considered.

(3)

The statement may include whatever other information in relation to cost benefit analyses that the FCA considers appropriate.

(4)

The FCA may alter or replace a statement published under this section.

(5)

The FCA must publish a statement as altered or replaced under subsection (4).

(6)

Publication under this section is to be made in such manner as the FCA considers best designed to bring the statement to the attention of the public.”

After section 138JA (inserted by section 43) insert—

“138JBStatement of policy in relation to cost benefit analyses

(1)

The PRA must prepare and publish a statement of policy in relation to the preparation of cost benefit analyses for the purposes of section 138J.

(2)

The statement must provide information about—

(a)

the methodology adopted in preparing cost benefit analyses;

(b)

matters to which the PRA has regard in determining whether section 138J(8) applies;

(c)

matters to which the PRA has regard in determining whether an exemption under section 138L applies in relation to the preparation of a cost benefit analysis;

(d)

arrangements to ensure that representations in connection with a cost benefit analysis that are made in accordance with section 138J(2)(e) are considered;

(e)

cases in which the requirement to consult the PRA Cost Benefit Analysis Panel in relation to the preparation of a cost benefit analysis does not apply;

(f)

arrangements to ensure that any recommendations in connection with cost benefit analyses that are made following a review carried out under section 138JA(4) are considered.

(3)

The statement may include whatever other information in relation to cost benefit analyses that the PRA considers appropriate.

(4)

The PRA may alter or replace a statement published under this section.

(5)

The PRA must publish a statement as altered or replaced under subsection (4).

(6)

Publication under this section is to be made in such manner as the PRA considers best designed to bring the statement to the attention of the public.”

After section 1R insert—

“1RAStatement of policy on panel appointments

(1)

The FCA must prepare and publish a statement of policy in relation to the appointment of members of its statutory panels.

(2)

The statement must provide information about—

(a)

the process adopted for making appointments;

(b)

matters considered in determining who is appointed.

(3)

The statement may provide whatever other information in relation to the making of appointments that the FCA considers appropriate.

(4)

The FCA may alter or replace a statement published under this section.

(5)

The FCA must publish a statement as altered or replaced under subsection (4).

(6)

Before publishing a statement under this section the FCA must—

(a)

consult the Treasury about the proposed statement, and

(b)

have regard to any representations the Treasury make in response to the consultation.

(7)

Publication under this section is to be made in such manner as the FCA considers best designed to bring the statement to the attention of the public.

(8)

In this section “statutory panel” means a panel established under section 1N, 1O, 1P, 1Q, 1QA or 138IA.”

After section 2N insert—

“2NAStatement of policy on panel appointments

(1)

The PRA must prepare and publish a statement of policy in relation to the appointment of members of its statutory panels.

(2)

The statement must provide information about—

(a)

the process adopted for making appointments;

(b)

matters considered in determining who is appointed.

(3)

The statement may provide whatever other information in relation to the making of appointments that the PRA considers appropriate.

(4)

The PRA may alter or replace a statement published under this section.

(5)

The PRA must publish a statement as altered or replaced under subsection (4).

(6)

Before publishing a statement under this section the PRA must—

(a)

consult the Treasury about the proposed statement, and

(b)

have regard to any representations the Treasury make in response to the consultation.

(7)

Publication under this section is to be made in such manner as the PRA considers best designed to bring the statement to the attention of the public.

(8)

In this section “statutory panel” means a panel established under section 2M, 2MA or 138JA.”

After section 1M (FCA’s general duty to consult) insert—

“1MAComposition of Panels

(1)

A person who receives remuneration from the FCA, the PRA, the Payment Systems Regulator, the Bank of England or the Treasury is disqualified from being appointed as a member of a panel established under any of sections 1N to 1QA or 138IA.

(2)

Subsection (1) does not apply in respect of a panel mentioned in that subsection if regulations made by the Treasury provide for it not to apply to that panel.

(3)

Regulations under subsection (2) may make provision in respect of a panel—

(a)

generally, or

(b)

only in relation to such descriptions of persons or cases as the regulations may specify (but the power to make such regulations may not be exercised so as to specify persons by name).”

In section 1N (FCA Practitioner Panel), after subsection (5) insert—

“(6)

Subsections (4) and (5) are subject to section 1MA.”

In section 1O (Smaller Business Practitioner Panel), after subsection (6) insert—

“(6A)

Subsections (5) and (6) are subject to section 1MA.”

In section 1P (Markets Practitioner Panel), after subsection (6) insert—

“(7)

Subsections (4) to (6) are subject to section 1MA.”

In section 1Q (Consumer Panel), after subsection (4) insert—

“(4A)

Subsection (4) is subject to section 1MA.”

After section 2L (PRA’s general duty to consult) insert—

“2LAComposition of Panels

(1)

A person who receives remuneration from the FCA, the PRA, the Payment Systems Regulator, the Bank of England or the Treasury is disqualified from being appointed as a member of a panel established under any of sections 2M, 2MA or 138JA.

(2)

Subsection (1) does not apply in respect of a panel mentioned in that subsection if regulations made by the Treasury provide for it not to apply to that panel.

(3)

Regulations under subsection (2) may make provision in respect of a panel—

(a)

generally, or

(b)

only in relation to such descriptions of persons or cases as the regulations may specify (but the power to make such regulations may not be exercised so as to specify persons by name).”

In section 2M (the PRA Practitioner Panel), after subsection (5) insert—

“(6)

Subsections (4) and (5) are subject to section 2LA.”

In section 103 of the Financial Services (Banking Reform) Act 2013 (regulator’s general duty to consult) after subsection (5) insert—

“(5A)

A person who receives remuneration from the FCA, the PRA, the Payment Systems Regulator, the Bank of England or the Treasury is disqualified from being appointed as a member of a panel established under subsection (3).

(5B)

Subsection (5A) does not apply in respect of a panel mentioned in that subsection if regulations made by the Treasury provide for it not to apply to that panel.

(5C)

Regulations under subsection (5B) may make provision in respect of a panel—

(a)

generally, or

(b)

only in relation to such descriptions of persons or cases as the regulations may specify (but the power to make such regulations may not be exercised so as to specify persons by name).”