(1) Article 5 (oversight function requirements) is amended as follows.

(2) In paragraphs 2 and 3(i), for "relevant competent authorities" substitute "FCA".

(3) In paragraph 5 -

(a) in the first subparagraph -

(i) for "ESMA shall develop draft regulatory" substitute "The FCA may make";

(ii) the words from "the procedures regarding" to the end of the first sentence become point (a);

(iii) the second sentence becomes point (b);

(iv) in point (b), omit "In particular, ESMA shall develop";

(b) in the second subparagraph -

(i) for "ESMA", where it first occurs, substitute "The technical standards";

(ii) before "shall take into" insert "when making the standards, the FCA";

(iii) omit "ESMA draft regulatory";

(c) omit the third and fourth subparagraphs.

(4) Omit paragraph 6.