Legislation – Financial Services and Markets Act 2023
PART 1Regulatory framework
CHAPTER 2New regulatory powers
Mutual recognition
24Implementation of mutual recognition agreements
(1)
The Treasury may by regulations make such provision as they consider appropriate for the purpose of, or in connection with, implementing any mutual recognition agreement to which the United Kingdom is, or is expected to become, a party.
(2)
The reference in subsection (1) to a “mutual recognition agreement” is a reference to any international agreement so far as it provides for, or relates to—
(a)
the recognition that the law and practice of a foreign country is, in respect of relevant matters, equivalent to the law and practice of the United Kingdom, and
(b)
the recognition that the law and practice of the United Kingdom is, in respect of relevant matters, equivalent to the law and practice of that foreign country.
(3)
Matters are “relevant matters” for the purposes of subsection (2) if they relate to financial services or markets (whether generally or in particular respects).
(4)
The provision that may be made by regulations under this section includes provision—
(a)
conferring powers on the Treasury (including a power to legislate);
(b)
conferring powers, or imposing duties, on a relevant regulator (including a power to make rules or other instruments);
(c)
about fees or other charges payable to a relevant regulator;
(d)
about the enforcement of obligations arising under or by virtue of the regulations;
(e)
about appeals in respect of decisions made under or by virtue of the regulations;
(f)
about the sharing of information.
(5)
The reference in this section to a mutual recognition agreement to which the United Kingdom is, or is expected to become, a party includes a reference to such an agreement as modified or supplemented from time to time.
(6)
The power to make regulations under this section includes power to modify legislation.
(7)
Before making provision under subsection (4)(b) that imposes a duty on a relevant regulator the Treasury must consult the regulator.
(8)
Provision under subsection (4)(b) that imposes a duty on a relevant regulator to make rules may (among other things)—
(a)
specify matters that the rules must cover;
(b)
specify a period within which the rules must be made.
(9)
But except so far as permitted by subsection (8), such provision may not require rules to be made in a specified form or with specified content.
(10)
Regulations under this section are subject to the affirmative procedure.
(11)
In this section—
“foreign country” means a country or territory outside the United Kingdom;
“legislation” means primary legislation, subordinate legislation and retained direct EU legislation;
“relevant regulator” means—
(a)
the FCA,
(b)
the PRA, or
(c)
the Bank of England;
“specified” means specified in regulations under this section.