Legislation – Financial Services and Markets Act 2023

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PART 1Regulatory framework

CHAPTER 3Accountability of regulators

Panels and policy statements

44Statement of policy on cost benefit analyses

(1)

FSMA 2000 is amended as follows.

(2)

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.”

(3)

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.”