Amendments made: 8, page 5, line 9, leave out “restatement” and insert “excluded”.

See the explanatory statement for Amendment 10.

Amendment 9, page 5, line 12, leave out from “specified,” to end of line 13 and insert

“in relation to the making of rules by the regulator in regulations made by the Treasury for the purposes of this section.”

This amendment is for drafting consistency with the new subsections being inserted by Amendment 10.

Amendment 10, page 5, line 14, leave out subsection (2) and insert—

“(2) A relevant requirement does not apply to the making of rules by a regulator if and to the extent that—

(a) the proposed rules make excluded changes to provision of existing rules made by the regulator containing a retained EU obligation, and

(b) the retained EU obligation is specified, or falls within a description of obligations specified, in relation to the making of rules by the regulator in regulations made by the Treasury for the purposes of this section.

(2A) A relevant requirement does not apply to the revocation of rules by a regulator if and to the extent that—

(a) the rules being revoked make provision containing a retained EU obligation, and

(b) the rules are revoked without being replaced by other rules made by the regulator.

(2B) For the purposes of subsection (1), rules make excluded provision in relation to provisions of legislation if, in the opinion of the regulator making the rules, the rules reproduce those provisions—

(a) without any changes that are material, or

(b) with changes that are material but their effect is to reduce a regulatory burden without having any other effects that are material.

(2C) For the purposes of subsection (2), rules make excluded changes to provision of existing rules if, in the opinion of the regulator making the rules—

(a) the effect of the changes is to reduce a regulatory burden, and

(b) the changes have no other effects that are material.

(2D) In this section references to a “regulatory burden” include (among other things) references to—

(a) a financial cost;

(b) an administrative inconvenience;

(c) an obstacle to trade or innovation;

(d) an obstacle to efficiency, productivity or profitability.

(2E) Where a relevant requirement does not apply to the making or revocation of rules by virtue of subsection (1), (2) or (2A), the requirement also does not apply to any rules that contain incidental, supplemental, consequential or transitional provision so far as made in connection with provision made by virtue of that subsection.”

This amendment broadens the circumstances in which consultation requirements in connection with the making or revocation of regulatory rules need not be complied with.

Amendment 11, page 5, line 29, leave out subsection (4) and insert—

“(4) Where a regulator makes or revokes rules without complying with a relevant requirement by virtue of subsection (1), (2) or (2A), the regulator must publish a statement which must—

(a) in a case falling within subsection (1), list the provisions of legislation that have been restated by the rules;

(b) in a case falling with subsection (2), specify or describe the retained EU obligations in relation to which changes have been made by the rules;

(c) in a case falling within subsection (2A), specify or describe the retained EU obligations that have been removed by the revocation of the rules.

(4A) Where the statement relates to the making of rules that include provision of a kind mentioned in subsection (2B)(b) or (2C)(a) and (b), the statement must—

(a) if made by the FCA, include an explanation of the FCA’s reasons for believing that making the proposed rules is compatible with its duties under section 1B(1) and (5)(a) of FSMA 2000;

(b) if made by the PRA, include an explanation of the PRA’s reasons for believing that making the proposed rules is compatible with its duties under—

(i) section 2B(1) or, as the case requires, section 2C(1) or 2D(3) of FSMA 2000, and

(ii) section 2H of FSMA 2000;

(c) if made by the Bank of England, include an explanation of the Bank’s reasons for believing that making the proposed rules is compatible with the Bank’s financial stability objective under section 2A of the Bank of England Act 1998;

(d) if made by the Payment Systems Regulator, include an explanation of the Regulator’s reasons for believing that making the proposed rules is compatible with its duties under section 49 of the Financial Services (Banking Reform) Act 2013.”—(Andrew Griffith.)

This amendment imposes a duty on the regulators to publish a statement about the making of any rules that are made without complying with consultation requirements under this clause.