Chapter 3: Accountability of regulators FCA and PRA powers to make rules etc Section 29: Review of rules
This section amends FSMA 2000 to introduce requirements relating to the review of rules made by the regulators.
	New section 3RA(1) introduces a requirement for the regulators to keep generally under review any rules made by the regulator, with subsection (2) exempting rules made for the purpose of complying with directions or recommendations from the Financial Policy Committee. If the relevant direction or recommendation is withdrawn, the rules made to comply with the direction or recommendation will no longer fall under the exemption in subsection (2).
	New section 3RB requires each regulator to prepare and publish statements of policy on how they will carry out their obligations under new section 3RA. Subsection (3) requires publication to be in a way appearing to the regulator to be best designed to bring it to the attention of the public.
	Subsection (2) requires the statements of policy to include information on how stakeholders can make representations de to the regulators on the review of rules, and the arrangements to ensure those representations are considered.
	New section 3RC provides HM Treasury with the power to direct the regulators to review specified rules.
	Subsection 3RC(1)(a) requires that the rules have been in force for at least 12 months. 3RC(1)(b) sets out that HM Treasury must consider it to be in the public interest that the rules are reviewed. Subsection (1)(c) clarifies that HM Treasury can only direct the regulator to carry out a review if, in the opinion of HM Treasury, the regulator is not already carrying out, or planning to carry out, an effective review of the rules in question.
	Subsection (2) clarifies that the scope of the power is those rules which fall under the regulators general duty to review rules in new section 3RA(1).
	Subsection (3) requires HM Treasury to consult the regulator before giving a direction under the power.
	Subsection (4) specifies that HM Treasury must have regard to the desirability of minimising any adverse effect that the carrying out of the review may have on the regulator. Subsection (5) sets out what a direction may include. Subsection (6) sets out what may be included in the scope and conduct of a review. Subsection (7) sets out the requirement for HM Treasury to lay the direction before Parliament and publish it before giving a direction. Subsection (8) disapplies subsection (7) where HM Treasury considers that publication would not be in the public interest. Subsection (9) allows a direction to be varied or revoked by a further direction.
	New section 3RD requires reports to be made by the regulator on reviews under new section 3RC. Section 3RD(1) states that section 3RD applies where HM Treasury has given a direction to a regulator under section 3RC(1). Subsection (2) sets out the matters that must be contained in the regulator’s report.
	Subsection (3) requires HM Treasury to lay a copy of the report before Parliament and publish it. Subsection (4) provides a public interest exemption to subsection (3).
	Schedule 7 inserts into FSBRA 2013 corresponding provisions for the PSR.