House of Commons Public Bill Committee Proceedings

Session 2010 - 12
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Other Bills before Parliament

Report Stage Proceedings: 5 July 2011
698

Finance (No. 3) Bill, continued

Mr Chancellor of the Exchequer

Agreed to  35

Page  316,  line  1  [Schedule  19],  leave out paragraph (d) and insert—

‘(d)
“the netting event occurs” if the insolvency or bankruptcy of—

(i)
M, or another member of the relevant group which has assets

which correspond to a liability covered by the provision

mentioned in sub-paragraph (1)(c), or

(ii)
N, or another entity which is not a member of the group and

which has such a liability,


gives rise to the termination of any arrangements under which such a

liability arises.’.

Mr Chancellor of the Exchequer

Agreed to  36

Page  316,  line  23  [Schedule  19],  leave out ‘M’s assets’ and insert ‘the assets of M,

or of another member of the relevant group,’.

Mr Chancellor of the Exchequer

Agreed to  37

Page  316,  line  24  [Schedule  19],  at end insert—

      ‘()
But if this paragraph applies in relation to more than one member of the

relevant group, no part of an asset may be included in the net settlement assets

of more than one such member.’.

Mr Chancellor of the Exchequer

Agreed to  38

Page  320,  line  11  [Schedule  19],  leave out paragraph (b) and insert—

‘(b)
M, or another entity within sub-paragraph (9), has assets which

correspond to liabilities which N, or another entity not within that sub-

paragraph, has to M or (as the case may be) to that other entity within

that sub-paragraph (“N’s liabilities”),’.

Mr Chancellor of the Exchequer

Agreed to  39

Page  320,  line  13  [Schedule  19],  leave out ‘between M and N’.

Mr Chancellor of the Exchequer

Agreed to  40

Page  320,  line  14  [Schedule  19],  at end insert ‘, and liabilities of other entities

within sub-paragraph (9) to N or another entity which is not within that sub-paragraph,’.

Mr Chancellor of the Exchequer

Agreed to  41

Page  320,  line  35  [Schedule  19],  leave out paragraph (e) and insert—

‘(e)
“the netting event occurs” if the insolvency or bankruptcy of—

(i)
M, or another entity within sub-paragraph (9) which has assets

which correspond to a liability covered by the provision

mentioned in sub-paragraph (8)(c), or

(ii)
N, or another entity not within sub-paragraph (9) which has

such a liability,

Report Stage Proceedings: 5 July 2011
699

Finance (No. 3) Bill, continued


gives rise to the termination of any arrangements under which such a

liability arises.’.

Mr Chancellor of the Exchequer

Agreed to  42

Page  321,  line  6  [Schedule  19],  leave out ‘M’s assets’ and insert ‘the assets of M,

or of another entity within sub-paragraph (9),’.

Mr Chancellor of the Exchequer

Agreed to  43

Page  321,  line  7  [Schedule  19],  at end insert—

      ‘()
But—

(a)
if N’s net settlement liabilities include liabilities of a relevant foreign

bank covered by paragraph 17(17), X% (as determined at Step 2 in

paragraph 24(1)) of the assets corresponding to the liabilities of the

relevant foreign bank are to be disregarded for the purposes of sub-

paragraph (14), and

(b)
if sub-paragraph (12) applies in relation to more than one entity within

sub-paragraph (9), no part of an asset may be included in the net

settlement assets of more than one such entity.’.

Mr Chancellor of the Exchequer

Agreed to  44

Page  324,  line  38  [Schedule  19],  leave out paragraph (b) and insert—

‘(b)
M, or another entity within sub-paragraph (9), has assets which

correspond to liabilities which N, or another entity not within that sub-

paragraph, has to M or, as the case may be, to that other entity within

that sub-paragraph (“N’s liabilities”),’.

Mr Chancellor of the Exchequer

Agreed to  45

Page  324,  line  40  [Schedule  19],  leave out ‘between M and N’.

Mr Chancellor of the Exchequer

Agreed to  46

Page  324,  line  41  [Schedule  19],  at end insert ‘, and liabilities of other entities

within sub-paragraph (9) to N or another entity which is not within that sub-paragraph,’.

Mr Chancellor of the Exchequer

Agreed to  47

Page  325,  line  15  [Schedule  19],  leave out paragraph (e) and insert—

‘(e)
“the netting event occurs” if the insolvency or bankruptcy of—

Report Stage Proceedings: 5 July 2011
700

Finance (No. 3) Bill, continued

(i)
M, or another entity within sub-paragraph (9) which has assets

which correspond to a liability covered by the provision

mentioned in sub-paragraph (8)(c), or

(ii)
N, or another entity not within sub-paragraph (9) which has

such a liability,


gives rise to the termination of any arrangements under which such a

liability arises.’.

Mr Chancellor of the Exchequer

Agreed to  48

Page  325,  line  36  [Schedule  19],  leave out ‘M’s assets’ and insert ‘the assets of M,

or of another entity within sub-paragraph (9),’.

Mr Chancellor of the Exchequer

Agreed to  49

Page  325,  line  37  [Schedule  19],  at end insert—

      ‘()
But—

(a)
if N’s net settlement liabilities include liabilities of a relevant foreign

bank covered by paragraph 19(17), X% (as determined at Step 2 in

paragraph 24(1)) of the assets corresponding to the liabilities of the

relevant foreign bank are to be disregarded for the purposes of sub-

paragraph (14), and

(b)
if sub-paragraph (12) applies in relation to more than one entity within

sub-paragraph (9), no part of an asset may be included in the net

settlement assets of more than one such entity.’.

Mr Chancellor of the Exchequer

Agreed to  50

Page  336,  line  33  [Schedule  19],  at end insert—

‘Netting agreements

    (1)
The Treasury may by order add to, repeal or otherwise amend any of

paragraphs 16, 18(8) to (16), 20(8) to (16), 22 and 25.

      (2)
An order under this paragraph may make consequential amendments of this

Schedule.

      (3)
An order under this paragraph may have retrospective effect in relation to—

(a)
any chargeable period in which the order is made, or

(b)
in the case of an order made on or before 31 December 2011, any

chargeable period ending on or after 1 January 2011.

      (4)
Orders under this paragraph are to be made by statutory instrument.

      (5)
A statutory instrument containing an order under this paragraph may not be

made unless a draft has been laid before, and approved by a resolution of, the

House of Commons.’.

Report Stage Proceedings: 5 July 2011
701

Finance (No. 3) Bill, continued

Mr Chancellor of the Exchequer

Agreed to  2

Page  390,  line  29  [Schedule  25],  leave out ‘other than excluded matters’.

Mr Chancellor of the Exchequer

Agreed to  3

Page  390,  line  31  [Schedule  25],  leave out ‘other than excluded matters’.

Mr Chancellor of the Exchequer

Agreed to  4

Page  390,  line  32  [Schedule  25],  leave out sub-paragraphs (3) and (4).

Mr Chancellor of the Exchequer

Agreed to  5

Page  391,  line  18  [Schedule  25],  leave out sub-paragraph (4).

Mr Chancellor of the Exchequer

Agreed to  6

Page  393,  line  15  [Schedule  25],  at end insert—

‘(ca)
if the foreign claim relates to an agricultural levy and the steps are ones

to be taken in or in relation to Scotland, the Commissioners

concurrently with the Scottish Ministers;’.

Mr Chancellor of the Exchequer

Agreed to  7

Page  393,  line  42  [Schedule  25],  leave out sub-paragraph (2).

Mr Chancellor of the Exchequer

Agreed to  8

Page  395,  line  26  [Schedule  25],  leave out sub-paragraph (3).

Bill read the third time on division, and passed.



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