UK Act of Parliament 2013 United Kingdom

Financial Services (Banking Reform) Act 2013 (strengthened depositor protection)

View on legislation.gov.uk (opens in a new tab) Ask Guv about this Act

At a glance

Enforced by

FCA, PRA, PSR

What's here

45 compliance obligations, 3 practical guides across 2 topics · 1 journey · 21 statutory instruments

Penalty landscape

2 of 45 obligations carry an unlimited fine. 3 carry different penalties and 40 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

  • Any Person 7
  • Director or Officer 2
  • Trader 2
  • Applicant 2
  • Responsible Person 1

Plus 31 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Step-by-step journeys using this legislation

Walkthroughs that take you from a real business situation to compliance.

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Direct — cites this Act

1 guides

Supporting — topic alignment

1 guides

Mentioned in related content

1 guides

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Any Person also bound by 2338 other Acts (top 5 shown)
Directors and Officers also bound by 425 other Acts (top 5 shown)
Traders also bound by 826 other Acts (top 5 shown)
Applicants also bound by 294 other Acts (top 5 shown)
Responsible Persons also bound by 104 other Acts (top 5 shown)

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part 1 — Ring-fencing

s.010

Independent review of proprietary trading

Other duties (1) — Crown / regulator
  • The Treasury must appoint an independent panel to review proprietary trading Crown / Minister / Government department
Browse 7 other sections in this Part — procedural / definitional / commencement

Part 2 — Depositor preference and the Financial Services Compensation Scheme

Browse 4 other sections in this Part — procedural / definitional / commencement

Part 3 — Bail-in stabilisation option

Browse 1 other section in this Part — procedural / definitional / commencement

Part 4 — Conduct of persons working in financial services sector

s.026

Variation of approval

  • Apply to change or remove conditions on your senior manager approval Any Person
s.038

Institution of proceedings

Other duties (1) — Crown / regulator
  • Regulators and Treasury must follow specific rules when starting prosecutions Statutory regulator
Browse 18 other sections in this Part — procedural / definitional / commencement

Part 5 — Regulation of payment systems

s.044

Designation criteria

Other duties (1) — Crown / regulator
  • The Treasury must follow specific criteria when designating a payment system Crown / Minister / Government department
s.045

Procedure

Other duties (1) — Crown / regulator
  • HM Treasury must consult and notify before designating a payment system Crown / Minister / Government department
s.046

Amendment of designation order

Other duties (1) — Crown / regulator
  • The Treasury must consult and notify before amending payment system orders Crown / Minister / Government department
s.047

Revocation of designation orders

Other duties (1) — Crown / regulator
  • HM Treasury must follow specific steps to revoke a payment system designation Crown / Minister / Government department
s.048

Publication

Other duties (1) — Crown / regulator
  • The Treasury must publish payment system designation orders Crown / Minister / Government department
s.070

Complaints: guidance

Other duties (1) — Crown / regulator
  • Payment Systems Regulator must provide guidance on making complaints Statutory regulator
s.074

Warning notices

Other duties (1) — Crown / regulator
  • PSR must issue a warning notice before imposing sanctions Statutory regulator
s.084

Investigations: general

Other duties (1) — Crown / regulator
  • Payment Systems Regulator must notify businesses of investigations Statutory regulator
s.097

Treasury approval

Other duties (1) — Crown / regulator
  • Treasury must approve or reject PSR standards instruments within four weeks Crown / Minister / Government department
s.099

Memorandum of understanding

Other duties (1) — Crown / regulator
  • Financial regulators must maintain and publish a cooperation agreement Statutory regulator
s.102

Recommendations by Treasury in connection with general duties

Amended 2 times
s.102

Matters to consider when imposing generally applicable requirements

Amended 2 times
s.104

Requirements in connection with public consultations

Amended 8 times
s.104

Duty of Regulator to review generally applicable requirements

Amended 8 times
Other duties (1) — Crown / regulator
  • PSR must regularly review its requirements Statutory regulator
s.104

Statement of policy relating to review of requirements

Amended 8 times
Other duties (1) — Crown / regulator
  • PSR must publish policy on how it reviews payment system requirements Statutory regulator
s.104

Requirement to review specified requirements

Amended 8 times
s.104

Report on certain reviews

Amended 8 times
Other duties (1) — Crown / regulator
  • Payment Systems Regulator must report to the Treasury on requirement reviews Statutory regulator
s.104

Power of Treasury to require the imposition of generally applicable requirements

Amended 8 times
s.104

Consultation with the FCA Cost Benefit Analysis Panel

Amended 8 times
s.104

Statement of policy in relation to cost benefit analyses

Amended 8 times
s.104

Statement of policy on panel appointments

Amended 8 times
Other duties (1) — Crown / regulator
  • Payment Systems Regulator must publish policy on panel appointments Statutory regulator
s.107

International trade obligations

Amended 1 time
Other duties (1) — Crown / regulator
  • PSR must notify Treasury of risks to international trade obligations Statutory regulator
Browse 50 other sections in this Part — procedural / definitional / commencement
s.097

Technical standards

s.097

Standards instruments

s.097

Application of section 104 of this Act and Part 9A of the Financial Services and Markets Act 2000

Part 6 — Special administration for operators of certain infrastructure systems

s.124

Powers of Bank to participate in Part 26A proceedings

Amended 1 time
  • Notify Bank of England before restructuring an infrastructure company Applicant
Browse 1 other section in this Part — procedural / definitional / commencement

Part 7 — Miscellaneous

Browse 1 other section in this Part — procedural / definitional / commencement

Part 8 — Final provisions

Browse 5 other sections in this Part — procedural / definitional / commencement

Schedules

s.sch002

After section 80 insert— Transfer for bail-in purposes: report (1) This section applies where the Bank of England makes...

Other duties (1) — Crown / regulator
  • Bank of England must report to Chancellor on bail-in resolution upon Treasury request Statutory regulator
s.sch002

(1) After section 41 insert— Transfer of property subsequent to...

Other duties (1) — Crown / regulator
  • Bank of England must consult PRA, FCA and Treasury before making transfer instruments Statutory regulator
s.sch004

(1) The Regulator must prepare and operate a scheme (“the...

Other duties (1) — Crown / regulator
  • Regulator must run a financial penalty scheme for payment system participants Statutory regulator
s.sch005

(1) A person who wilfully alters, suppresses or destroys a...

Unlimited fine
  • Wilfully alter, suppress or destroy a required document Any Person
s.sch005

(1) A determination by the CMA on an appeal—

Other duties (1) — Crown / regulator
  • CMA must notify, publish and give reasons for appeal determinations Statutory regulator
s.sch005

(1) A group that determines an appeal must make an...

Other duties (1) — Crown / regulator
  • CMA group must order payment of costs after deciding an appeal Statutory regulator
s.sch005

(1) An application for permission to bring an appeal may...

  • Submit a proper application for permission to appeal a PSR decision Applicant
s.sch005

(1) The CMA must determine an appeal within the period...

Other duties (1) — Crown / regulator
  • CMA must determine payment system appeals within 6 months (7 months with special reasons) Statutory regulator
s.sch007

(1) The old company may— (a) with the consent of...

  • Provide information and assistance to the Bank of England for FMI transfer schemes Trader
s.sch010

In section 73 of the Financial Services Act 2012 (duty...

Other duties (1) — Crown / regulator
  • FCA must investigate regulatory failures in regulated activities and exchanges Statutory regulator
Browse 158 other Schedules — structural / supplementary
s.sch001

Part 7 of FSMA 2000 (control of business transfer schemes)...

s.sch001

(1) Section 111 (sanction of court for business transfer schemes)...

s.sch001

In section 112 (effect of order sanctioning business transfer scheme),...

s.sch001

In section 112A (rights to terminate etc.), in subsection (1),...

s.sch001

In Schedule 12 (transfer schemes: certificates) after Part 2A insert—...

s.sch001

For “the authorised person concerned”, wherever occurring in Part 7...

s.sch001

(1) Section 103A (meaning of “the appropriate regulator”) is amended...

s.sch001

In section 106 (banking business transfer schemes), at the end...

s.sch001

After section 106A insert— Ring-fencing transfer scheme (1) A scheme is a ring-fencing transfer scheme if it—...

s.sch001

(1) Section 107 (application for order sanctioning transfer scheme) is...

s.sch001

For the heading to section 109 substitute “ Scheme reports:...

s.sch001

After section 109 insert— Scheme reports: ring-fencing transfer schemes (1) An application under section 106B in respect of a...

s.sch001

(1) Section 110 (right to participate in proceedings) is amended...

s.sch002

The Banking Act 2009 is amended as follows.

s.sch002

In section 120 (notice to Prudential Regulation Authority of preliminary...

s.sch002

After section 256 insert— State aid State aid (1) This section applies where— (a) the Treasury are of...

s.sch002

(1) Section 1 (overview) is amended as follows.

s.sch002

In section 13 (temporary public ownership), in subsection (1), for...

s.sch002

In section 17 (share transfers: effect)— (a) in subsection (1),...

s.sch002

In section 18 (share transfers: continuity), after subsection (5) insert—...

s.sch002

In section 44 (reverse property transfer)— (a) in subsection (2),...

s.sch002

In section 63 (general continuity obligation: property transfers), in subsection...

s.sch002

In section 66 (general continuity obligation: share transfers)—

s.sch002

In section 67 (special continuity obligation: share transfers), in subsection...

s.sch002

After section 12 insert— Bail-in option (1) The third stabilisation option is exercised by the use...

s.sch002

In section 68 (continuity obligations: onward share transfers), in subsection...

s.sch002

In section 71 (pensions), in subsection (1)—

s.sch002

In section 72 (enforcement), in subsection (1)—

s.sch002

In section 73 (disputes), in subsection (1)—

s.sch002

In section 74 (tax), in subsection (6), for “or 45”...

s.sch002

In section 81A (accounting information to be included in reports...

s.sch002

In section 85 (temporary public ownership), in subsection (1), for...

s.sch002

In section 136 (overview), in the Table in subsection (3),...

s.sch002

After section 152 insert— Property transfer from transferred institution (1) This section applies where the Bank of England—

s.sch002

After section 8 insert— Specific condition: bail-in (1) The Bank of England may exercise a stabilisation power...

s.sch002

In section 220 (insolvency etc), after subsection (4) insert—

s.sch002

In section 259 (statutory instruments)— (a) in the Table in...

s.sch002

In section 261 (index of defined terms), in the Table,...

s.sch002

(1) This paragraph modifies the application of the Investment Bank...

s.sch002

After section 48A insert— Bail-in option Special bail-in provision (1) “Special bail-in provision”, in relation to a bank, means...

s.sch002

(1) In section 49 (orders)— (a) in subsection (1), for...

s.sch002

(1) After section 81B insert— Bail-in option (1) The Bank of England may exercise a stabilisation power...

s.sch002

In section 83A (modifications of Part 1 as it applies...

s.sch002

In section 89B (application of Part 1 of the Act...

s.sch003

(1) Section 59 of FSMA 2000 (approval for particular arrangements)...

s.sch003

In section 140A of FSMA 2000 (interpretation), in the definition...

s.sch003

In section 347 of FSMA 2000 (the record of authorised...

s.sch003

In section 387 of FSMA 2000 (warning notices), in subsection...

s.sch003

In section 388 of FSMA 2000 (decision notices), in subsection...

s.sch003

In section 395 of FSMA 2000 (supervisory notices), in subsection...

s.sch003

(1) Section 415B of FSMA 2000 (consultation in relation to...

s.sch003

In Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority),...

s.sch003

In section 14 of the Financial Services Act 2012, omit...

s.sch003

(1) Section 85 of the Financial Services Act 2012 (relevant...

s.sch003

(1) Section 59A of FSMA 2000 (specifying functions as controlled...

s.sch003

(1) Section 63 of FSMA 2000 (withdrawal of approval) is...

s.sch003

In section 63A of FSMA 2000 (power to impose penalties),...

s.sch003

(1) Section 66 of FSMA 2000 (disciplinary powers) is amended...

s.sch003

(1) Section 67 of FSMA 2000 (disciplinary measures: procedure and...

s.sch003

In section 69 of FSMA 2000 (statement of policy), in...

s.sch003

In section 138A of FSMA 2000 (modification or waiver of...

s.sch003

In section 138D of FSMA 2000 (actions for damages), in...

s.sch004

In this Schedule— (a) “the Regulator” means the Payment Systems...

s.sch004

(1) The Regulator must in respect of each of its...

s.sch004

(1) The scheme details must be published by the Regulator...

s.sch004

The Regulator must maintain satisfactory arrangements for—

s.sch004

(1) None of the following is to be liable in...

s.sch004

(1) This paragraph applies where the Regulator issues a relevant...

s.sch004

(1) This paragraph applies where— (a) the Regulator issues a...

s.sch004

In Part 6 of Schedule 1 to the Freedom of...

s.sch004

In Part 1 of Schedule 19 to the Equality Act...

s.sch004

(1) The constitution of the Regulator must provide for it...

s.sch004

(1) The Regulator is not to be regarded as exercising...

s.sch004

(1) The Regulator must adopt an annual budget which has...

s.sch004

(1) The Regulator may make arrangements for any of its...

s.sch004

(1) The Regulator must in respect of each of its...

s.sch004

(1) At least once a year, the Regulator must make...

s.sch004

(1) The Treasury may (subject to this paragraph) at any...

s.sch004

(1) The Regulator must send a copy of its annual...

s.sch004

(1) For the purposes mentioned in sub-paragraph (2) the FCA...

s.sch004

(1) For the purposes mentioned in sub-paragraph (2), the Regulator...

s.sch005

Except where specified otherwise in this Schedule, the functions of...

s.sch005

(1) For the purposes of this Schedule an oral hearing...

s.sch005

(1) The CMA may by notice require a person to...

s.sch005

Where permission to bring an appeal is granted under paragraph...

s.sch005

(1) If a person (“the defaulter”)— (a) fails to comply...

s.sch005

(1) The CMA Board may make rules of procedure regulating...

s.sch005

(1) In this Schedule— “appeal” means an appeal made in...

s.sch005

(1) Schedule 4 to the Enterprise and Regulatory Reform Act...

s.sch005

(1) The CMA may direct that, pending the determination of...

s.sch005

(1) Sub-paragraph (2) applies where the Payment Systems Regulator wishes...

s.sch005

(1) A group constituted by the chair of the CMA...

s.sch005

(1) The CMA, if it thinks it necessary to do...

s.sch005

(1) For the purposes of this Schedule, the CMA may...

s.sch006

The following provisions of this Schedule provide for—

s.sch006

The provisions set out in the Tables apply in relation...

s.sch006

The modifications are that— (a) a reference to the administrator...

s.sch006

Powers conferred by this Part of this Act and by...

s.sch006

A reference in an enactment or other document to anything...

s.sch006

(1) The Treasury may by order amend this Schedule so...

s.sch007

This Schedule applies where— (a) the court has made an...

s.sch007

Where a proposed transfer falling within subsection (5) of section...

s.sch007

In this Schedule— “FMI transfer scheme” has the meaning given...

s.sch007

It is for the FMI administrator, while the FMI administration...

s.sch007

(1) An FMI transfer scheme may contain provision—

s.sch007

(1) An FMI transfer scheme may make incidental, supplemental, consequential...

s.sch007

(1) In relation to each provision of an FMI transfer...

s.sch007

(1) The Bank of England may by notice to the...

s.sch007

(1) An FMI transfer scheme may contain provision about—

s.sch008

Part 16A of FSMA 2000 (consumer protection and competition) is...

s.sch008

(1) Section 136 of the Enterprise Act 2002 (investigations and...

s.sch008

In section 52(4) of the Enterprise and Regulatory Reform Act...

s.sch008

In Schedule 4 to the Enterprise and Regulatory Reform Act...

s.sch008

Omit section 234H (power of FCA to make request to...

s.sch008

After section 234H insert— The FCA's functions under Part 4...

s.sch008

In section 3I of FSMA 2000 (power of PRA to...

s.sch008

In section 348 of FSMA 2000 (restrictions on disclosure of...

s.sch008

In section 354A of FSMA 2000 (FCA's duty to co-operate...

s.sch008

(1) Schedule 1ZA to FSMA 2000 (the Financial Conduct Authority)...

s.sch008

In section 9E of the Company Directors Disqualification Act 1986...

s.sch008

In section 54 of the Competition Act 1998 (regulators), in...

s.sch009

The Building Societies Act 1986 is amended as follows.

s.sch009

In the following provisions, omit “, in a manner agreed...

s.sch009

In section 81(3B)(c), omit “, in a manner agreed for...

s.sch009

(1) Schedule 2 is amended as follows.

s.sch009

In paragraphs 3(2B)(c) and 9(2B)(c) of Schedule 8A, omit “in...

s.sch009

(1) Schedule 11 is amended as follows.

s.sch009

(1) Section 117 (financial year of building societies) is amended...

s.sch009

After section 117 insert— Alteration of financial year (1) A building society may by notice given to the...

s.sch009

In Schedule 20 (transitional and saving provisions), omit paragraph 16...

s.sch009

The amendments made by paragraphs 15 to 17 have effect...

s.sch009

(1) Section 7 (the funding limit) is amended as follows....

s.sch009

(1) In article 3 of the Building Societies Act 1986...

s.sch009

(1) Omit section 9B (restriction on creation of floating charges)....

s.sch009

(1) Section 74 (duty of directors to prepare annual business...

s.sch009

(1) Section 76 (summary financial statement for members and depositors)...

s.sch009

In consequence of the amendments made by paragraph 6—

s.sch009

(1) Section 100 (regulated terms etc: distributions and share rights)...

s.sch009

After section 115 insert— Deemed agreement to use of web...

s.sch010

In Schedule 15D to the Companies Act 1985 (disclosures), omit...

s.sch010

(1) Section 85 of the Financial Services Act 2012 (relevant...

s.sch010

In section 376 of FSMA 2000 (continuation of contracts of...

s.sch010

(1) Part 25 of FSMA 2000 (injunctions and restitution) is...

s.sch010

(1) In Schedule 1ZA to FSMA 2000 (the Financial Conduct...

s.sch010

In Schedule 17A to FSMA 2000 (further provision in relation...

s.sch010

In section 991 of the Income Tax Act 2007 (meaning...

s.sch010

In section 89B of the Banking Act 2009 (application to...

s.sch010

In section 191 of the Banking Act 2009 (directions), in...

Read the full Act on legislation.gov.uk (opens in a new tab)

Official guidance

Authoritative sources published by regulators or government explaining this legislation.

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

FCA

Primary

Financial Conduct Authority

Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …

PRA

Prudential Regulation Authority

Part of the Bank of England. Prudentially regulates and supervises around 1,292 banks, building societies, credit unions, insurers, and major investment firms. …

PSR

Payment Systems Regulator

Economic regulator for payment systems in the UK. Promotes competition, innovation, and service-user interests in payment systems. Regulates participants in designated payment …

Connected legislation

21 statutory instruments

These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.

Secondary legislation (21)

+ 6 more statutory instruments

Explore more

Browse legislation

Find other UK business legislation with related guidance.

Regulators

Learn more about the bodies that enforce this legislation.