On 2 March 2022, HM Treasury published its response to its earlier consultation regarding amendment to section 48D of the Banking Act 2009.

The previous consultation document outlined how the Government proposes to amend the definition of ‘investment firm’ in section 48D to capture PRA-designated investment firms and FCA-regulated investment firms with permission to underwrite or deal on own account (i.e. those that will be subject to the new £750,000 initial capital requirement under the FCA’s rules). The consultation closed on 5 October 2021.

In its response the Government confirms it is proceeding with its approach to amend the definition of ‘investment firm’ in section 48D to capture PRA-designated investment firms and FCA-regulated investment firms with permission to underwrite or deal on own account.

The changes will require amendments to the legislation underpinning the UK resolution regime. The Government has laid the legislation, which can be found here. The amendment to section 48D of the Banking Act 2009 will be delivered via secondary legislation in due course.