Commentary on provisions of Act Section 6: Amendments to the Financial Services and Markets Act 2000
Subsection (1) states that the following subsections amend the Financial Services and Markets Act 2000.
	Subsection (2)(a) amends subsection (5) of section 213 (the compensation scheme) which specifies a matter that regulators must take account of in relation to levies. The amendment inserts some new text into this provision to ensure that this also applies in respect of levies to recover funds provided under new section 214E.
	Subsection (2)(b) specifies the text that will be inserted into FSMA 2000 as the new (5A) and (5B) in section 213 (the compensation scheme). The new (5A) specifies that the FSCS cannot impose levies on credit unions for the purpose of recouping funds provided under the new recapitalisation mechanism, to reflect the fact that credit unions are not within scope of that mechanism under new section 214E(8). The new (5B) defines "credit unions" in (5A).
	Subsection (3) amends section 223 (management expenses) to specify that payments made under section 214E (i.e., recapitalisation payments) are not management expenses. Other expenses incurred, or expected to be incurred, by the scheme manager in relation to making recapitalisation payments would be management expenses.
	Subsection (4) amends section 223C (payments in error) so that, as with other FSCS functions, payments in connection with section 214E that are made in error can be levied for.