Part 1: Regulatory Framework Designated activities regime Section 8: Designated activities Section 8: Designated activities: continued
Subsection (3) onwards makes a number of changes to FSMA 2000, which are needed as a result of inserting Part 5A.
	Subsection (4) amends section 3E of FSMA 2000. Section 3E of FSMA 2000 provides for a memorandum of understanding between the PRA and the FCA regarding their functions under FSMA 2000. Subsection (4) amends section 3E to include directions made by the FCA under section 71O within the ambit of the memorandum of understanding.
	Subsection (5) amends section 3I of FSMA 2000. Where the FCA proposes to make rules in relation to persons who are also regulated by the PRA, section 3I of FSMA 2000 gives the PRA power to direct the FCA not to make those rules in specified circumstances. Subsection 5 includes rules proposed to be made by the FCA under Part 5A of FSMA 2000 within the PRA’s powers under section 3I.
	Subsection (6) excludes designated activity rules from section 138D of FSMA 2000 (action for damages).
	Subsection (7) amends section 417 to insert a definition of ‘designated activity’ into FSMA 2000.
	Alongside the new section 71S, subsection (8) establishes the Parliamentary procedure which governs statutory instruments made under new Part 5A of FSMA 2000. The affirmative procedure is used where HM Treasury ‘designates’ a new activity (subject to the urgency exception described above), and where HM Treasury amends primary legislation.
	Subsection (9) inserts new Schedule 6B, which is Schedule 3 to this Act, into FSMA 2000.