The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020

Made: 26th November 2020

Coming into force in accordance with regulations 1(2) to (4)

A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament, in accordance with paragraph 2(2) of Schedule 2 to the European Communities Act 1972, and paragraph 1(1) of Schedule 7 to the European Union (Withdrawal) Act 2018.

PART 1 — General

Citation and commencement

1

• (1) These Regulations may be cited as the Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020.

• (2) This regulation and regulations 4, 5(5) and 9 to 20 of these Regulations come into force on the day after the day on which they are made.

• (3) Regulation 2(7) comes into force—

• (a) to the extent necessary for making rules under new section 192V of the Financial Services and Markets Act 2000, on 28th December 2020;

• (b) for all other purposes, on 29th December 2020.

• (4) The other provisions in these Regulations come into force on 29th December 2020.

PART 2 — Directors and Financial Holding Companies

Amendment of the Financial Services and Markets Act 2000

2

• (1) The Financial Services and Markets Act 2000[^f00005] is amended as follows.

• (2) In section 71B (removal of directors and senior executives), after subsection (2)[^f00006] insert—

(3) If the appropriate regulator is satisfied that the condition in section 71D(4A) is met in relation to a person who is a director of an institution, of a financial holding company or of a mixed financial holding company, the appropriate regulator may require that institution, financial holding company or mixed financial holding company to remove that person from the board of directors.

• (3) In section 71D (section 71B and 71C: conditions)[^f00007], after subsection (4) insert—

(4A) The condition in this subsection is met in relation to a director of an institution, of a financial holding company or of a mixed financial holding company, if the director— (a) is no longer of sufficiently good repute to perform their duties, (b) no longer possesses sufficient knowledge, skills, experience, honesty, integrity or independence of mind to perform their duties, or (c) is no longer able to commit sufficient time to perform their duties.

• (4) In section 71G (right to refer matters to the Tribunal)—

• (a) after subsection (1) insert—

(1A) An institution, financial holding company or mixed financial holding company which is aggrieved by the imposition of a requirement on that institution or holding company under section 71B(3) may refer the matter to the Tribunal.

• (b) in subsection (4), for “71B” substitute “71B(1) or (2)”;

• (c) after subsection (4), insert—

(5) A director (or former director) of an institution, a financial holding company or a mixed financial holding company who is aggrieved by the imposition of a requirement on that institution or holding company under section 71B(3) may refer the matter to the Tribunal.

• (5) In section 71H (removal of director and senior executives and appointment of temporary manager: procedure)—

• (a) in subsection (2)—

• (i) in the opening words, after “relevant firm” insert “, institution, financial holding company or mixed financial holding company”;

• (ii) in paragraph (a), after “firm” insert “, institution, holding company”;

• (b) in subsection (5), in paragraphs (c)(i), (d), and (f) after “relevant firm” each time it occurs, insert “, the financial holding company, the mixed financial holding company”.

• (6) In section 71I (sections 71B to 71H: interpretation)[^f00008]—

• (a) in subsection (4), in the opening words, for “subsections (2) and (3)” substitute “sections 71B to 71H and this section”;

• (b) in subsection (5), in the definition of “appropriate regulator”, after paragraph (c), insert—

(d) in relation to a financial holding company or mixed financial holding company which is not a parent undertaking— (i) the PRA, where the holding company is approved by the PRA under Part 12B; (ii) the FCA in all other cases;

• (7) After Part 12A of the Financial Services and Markets Act 2000[^f00009], insert—