Chapter 3: Accountability of regulators FCA and PRA powers to make rules etc Section 34: Power to disapply or modify rules
This section inserts new section 138BA into FSMA 2000. This Section of FSMA 2000 enables the PRA and the FCA to identify parts of their rules which can be waived or disapplied upon application or consent.
	Within this, subsection (1) of new section 138BA states that new section 138BA only applies to rules made by a regulator if, or to the extent that, HM Treasury provides for it to apply in regulations.
	138BA(2) states that, where provided for in subsection 1, a regulator can grant a permission to a person who is subject to their rules, on their application or with their consent.
	138BA (2)(a) and (b) specify what a permission granted by the relevant regulator can enable. The regulator is able to disapply the rules entirely or to continue to apply the rules but with modifications specified in the permission.
	138BA (3) states that the PRA and the FCA cannot grant in relation to rules made under these listed sections of FSMA 2000.
	138BA (4)(a) states that the relevant regulator may grant an authorised person permission to disapply or modify the rules subject to conditions. The regulator will set these conditions.
	138BA(4)(b) makes provision for the regulators to revoke or vary permission under new section 138BA.
	138BA(5) enables HM Treasury to set procedural requirements in relation to the granting of a permission in regulations under subsection (1). 138BA(6) is a list of possible provision about procedural matters that may be made under subsection (5). This list is indicative and provision under subsection (5) may include provision about other matters.
	138BA(7) places an obligation on HM Treasury to consult the relevant regulator prior to making regulations under subsection (1).
	Subsection (3) of this section inserts new section 138BA into section 429 of FSMA 2000 which provides that SIs made under this power are subject to the affirmative Parliamentary procedure.