(1) The Authority is to have the functions conferred on it by these Regulations.

(2) The Authority's general functions are -

(a) its functions in relation to the giving of guidance under regulation 42; and

(b) its function of determining the general policy and principles by reference to which it performs particular functions under these Regulations.

(3) In discharging its general functions the Authority must have regard to -

(a) the need to preserve investor confidence in, and the desirability of maintaining the good reputation of, the regulated covered bonds sector in the United Kingdom by the issuance of high quality regulated covered bonds;

(b) the international character of financial services and markets and the desirability of maintaining the competitive position of the United Kingdom;

(c) the need to use its resources in the most efficient and economic way;

(d) the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;