(1) For section 2H of FSMA 2000 substitute -
"2H Secondary competition objective and duty to have regard to regulatory principles
(1) When discharging its general functions in a way that advances its objectives (see section 2F), the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities.
(2) In discharging its general functions, the PRA must also have regard to the regulatory principles in section 3B."
(2) In section 3B (regulatory principles to be applied by both regulators), in subsection (1), for "2H(1)(a)" substitute "2H(2)".
(3) In Schedule 1ZB to FSMA 2000 (the Prudential Regulation Authority) -
(a) in paragraph 19 (annual report), in sub-paragraph (1) -
(i) after paragraph (b) insert -
"(ba) how it has complied with section 2H(1),", and
(ii) in paragraph (c), omit the words from "and of" onwards, and
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