Commentary Official listing Section 16: FCA to exercise functions under Part 6 of FSMA
241.At the time FSMA was enacted it was unclear whether the FSA would undertake, on a permanent basis, some or all of the functions as the competent authority under Part 6. Therefore Part 6 was prepared as a self-contained Part and Schedule 7 to FSMA makes modifications to that Act in its application to the FSA as the competent authority under Part 6. Paragraph 2 of Schedule 7 carves out the FSA’s functions under Part 6 from the application of the FSA’s general duties (which are specified in section 2 of FSMA). In addition, Schedule 8 to FSMA (transfer of functions under Part VI) confers on the Treasury a power to confer on another body some or all of the functions under Part 6.
242.Under the new regulatory arrangements, the FCA is to undertake all of the FSA’s functions under Part 6. Therefore section 16(2) to (12) changes the references in that Part from the “competent authority” to the “FCA”. In addition, the power to confer on any other body some or all of the functions under Part 6 of FSMA is removed (subsection (13)(l)), as are other provisions which are no longer needed; for example, bespoke arrangements relating to fees and penalties (subsection (13)(c) and (d)) are omitted as the general provisions in FSMA relating to the FCA will now extend to the functions under Part 6.
243.The FCA’s general duties, including the requirement to act compatibly with its strategic objective (specified in new section 1B) apply when discharging the rule and guidance-making functions under Part 6.