Part 9: Miscellaneous Section 43: Subordinate legislation made under retained direct EU legislation
This section makes two amendments to FSMA in respect of powers to make subordinate legislation under retained direct EU legislation.
	Subsection (2) amends the definition of "qualifying provision" in section 425C of FSMA to include regulations made by HM Treasury and rules made by the regulators under new powers contained in retained direct EU legislation. This will allow HM Treasury to specify such regulations or rules for the purposes of other provisions in FSMA, so that various regulatory powers and functions under FSMA apply to provision made in those regulations or rules. This is consistent with the treatment of the equivalent regulation-making and technical standards powers which HM Treasury and the regulators will have under retained direct EU legislation as a result of the EUWA.
	Subsection (3) amends the definition of "legislative function" in paragraph 8 of Schedule 1ZA to FSMA. It adds the rule-making powers which the Act’s amendments to retained direct EU legislation will confer on the FCA to the existing list of legislative functions. This, in turn, will require the FCA to discharge those powers through its governing body. This is consistent with the treatment of existing FCA rule-making powers under FSMA and FCA powers to make technical standards as a result of the EUWA.