Financial Services Bill

Session 2010 - 12
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Other Bills before Parliament

Financial Services Bill

Financial Services Bill
Part 8 — Miscellaneous
161

89
International obligations
In Part 5 of the Banking Act 2009, after section 206A insert—
“206B
International obligations
(1)
If it appears to the Treasury that any action proposed to be taken by the
Bank of England in exercising its powers under this Part would be
5
incompatible with EU obligations or any other international obligations
of the United Kingdom, the Treasury may direct the Bank not to take
that action.
(2)
If it appears to the Treasury that any action which the Bank of England
has power under this Part to take is required for the purpose of
10
implementing any such obligation, the Treasury may direct the Bank to
take that action.
(3)
A direction under this section—
(a)
may include such supplemental or incidental requirements as
the Treasury consider necessary or expedient, and
15
(b)
is enforceable on an application by the Treasury, by injunction
or, in Scotland, by an order for specific performance under
section 45 of the Court of Session Act 1988.”
Further amendments
90
Amendments relating to new regulators
20
Schedule 17 contains amendments of the Banking Act 2009 related to the
provisions of Part 2 of this Act.
Part 8
Miscellaneous
Amendments of Companies Act 1989
25
91
Amendments of Companies Act 1989
(1)
Section 166 of the Companies Act 1989 (power of Secretary of State to give
directions to recognised investment exchange or recognised clearing house) is
amended as follows.
(2)
In subsection (2)(a)—
30
(a)
for “Authority”, in the first place, substitute “appropriate regulator”,
and
(b)
for “Authority”, in the second place, substitute “regulator”.
(3)
In subsection (2)(b)—
(a)
for “Authority”, in the first place, substitute “appropriate regulator”,
35
and
(b)
for “Authority”, in the second place, substitute “regulator”.
(4)
In subsection (3)—
(a)
for “Authority” substitute “appropriate regulator”,

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(b)
omit the “or” following paragraph (a), and
(c)
at the end insert—
“(c)
in either case, that the direction is necessary having
regard to the public interest in the stability of the
financial system of the United Kingdom, or
5
(d)
in either case, that the direction is necessary—
(i)
to facilitate a proposed or possible use of a
power under Part 1 of the Banking Act 2009
(special resolution regime), or
(ii)
in connection with a particular exercise of a
10
power under that Part.”
(5)
In subsection (7)—
(a)
for “Authority”, in the first place, substitute “appropriate regulator”,
and,
(b)
omit the words from “The Authority shall not” to the end.
15
(6)
After that subsection insert—
“(7A)
Where the exchange or clearing house is acting in accordance with a
direction under subsection (2)(a) that was given only by virtue of
paragraph (a) of subsection (3), the appropriate regulator shall not give
a direction under subsection (7) unless it is satisfied that the direction
20
under that subsection will not impede or frustrate the proper and
efficient conduct of the default proceedings.
(7B)
Where the exchange or clearing house has taken action under its default
rules without being directed to do so, the appropriate regulator shall
not give a direction under subsection (7) unless—
25
(a)
it is satisfied that the direction under that subsection will not
impede or frustrate the proper and efficient conduct of the
default proceedings, or
(b)
it is satisfied that the direction is necessary—
(i)
having regard to the public interest in the stability of the
30
financial system of the United Kingdom,
(ii)
to facilitate a proposed or possible use of a power under
Part 1 of the Banking Act 2009 (special resolution
regime), or
(iii)
in connection with a particular exercise of a power
35
under that Part.”
(7)
In subsection (8), for “Authority” substitute “the regulator which gave the
direction”.
(8)
At the end insert—
“(9)
“The appropriate regulator”—
40
(a)
in relation to a recognised UK investment exchange, means the
FCA, and
(b)
in relation to a recognised UK clearing house, means the Bank
of England.”
(9)
In the heading, omit “of Secretary of State”.
45

Financial Services Bill
Part 9 — General
163

Settlement systems
92
Evidencing and transfer of title to securities without written instrument
In section 785 of the Companies Act 2006 (provision enabling procedures for
evidencing and transferring title), at the end insert—
“(7)
The regulations may confer functions on any person, including—
5
(a)
the function of giving guidance or issuing a code of practice in
relation to any provision made by the regulations, and
(b)
the function of making rules for the purposes of any provision
made by the regulations.
(8)
The regulations may, in prescribed cases, confer immunity from
10
liability in damages.”
Director of Savings
93
Provision of services by Director of Savings
(1)
The Director of Savings (“the Director”) may enter into arrangements with a
public body for the provision by the Director, or persons authorised by the
15
Director, of services to the body.
(2)
Arrangements are to be on such terms, including terms as to payment, as may
be agreed.
(3)
“Public body” means a person or body whose functions are of a public nature.
Part 9
20
General
Further amendments and repeals
94
Further minor and consequential amendments and repeals
(1)
Schedule 18 contains further amendments of FSMA 2000 and other
enactments.
25
(2)
Schedule 19 contains further consequential repeals.
Orders
95
Orders: general
(1)
Any power of the Treasury or the Secretary of State to make an order under this
Act is exercisable by statutory instrument.
30
(2)
Any order made by the Treasury or the Secretary of State under this Act may—
(a)
contain such incidental or transitional provision as the Treasury
consider appropriate, and
(b)
make different provision for different cases.

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96
Orders: Parliamentary control
(1)
A statutory instrument containing (alone or with other provision) an order to
which subsection (2) applies may not be made unless a draft of the instrument
has been laid before Parliament and approved by a resolution of each House.
(2)
This subsection applies to—
5
(a)
an order under Part 3 (mutual societies);
(b)
an order under section 98 (power to make further consequential
amendments) that amends or repeals primary legislation.
(3)
A statutory instrument containing an order under this Act, other than an
instrument to which subsection (1) applies or an instrument containing only
10
provision made under section 102 (commencement), is subject to annulment in
pursuance of a resolution of either House of Parliament.
(4)
In this section “primary legislation” means—
(a)
an Act of Parliament,
(b)
an Act of the Scottish Parliament,
15
(c)
a Measure or Act of the National Assembly for Wales, or
(d)
Northern Ireland legislation.
Interpretation
97
Interpretation
(1)
In this Act “FSMA 2000” means the Financial Services and Markets Act 2000.
20
(2)
In this Act—
“the FCA” means the Financial Conduct Authority;
“the PRA” means the Prudential Regulation Authority;
“the UK financial system” means the financial system of the United
Kingdom.
25
(3)
In this Act “enactment” includes—
(a)
an enactment contained in subordinate legislation within the meaning
of the Interpretation Act 1978;
(b)
an enactment contained in, or in an instrument made under, an Act of
the Scottish Parliament;
30
(c)
an enactment contained in, or in an instrument made under, a Measure
or Act of the National Assembly for Wales;
(d)
an enactment contained in, or in an instrument made under, Northern
Ireland legislation.
Consequential and transitional provisions
35
98
Power to make further consequential amendments etc
(1)
The Treasury or the Secretary of State may by order make such provision
amending, repealing, revoking or applying with modifications any enactment
to which this section applies as they consider necessary or expedient in
consequence of any provision made by or under this Act.
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(2)
This section applies to—

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(a)
any enactment passed or made before the passing of this Act, and
(b)
any enactment passed or made on or before the last day of the Session
in which this Act is passed.
(3)
Amendments and repeals made under this section are additional to those
made by or under any other provision of this Act.
5
99
Transitional provisions and savings
(1)
Schedule 20 contains transitional provisions.
(2)
Schedule 21 contains provision about the transfer of property, rights and
liabilities.
(3)
The Treasury may by order make such provision as they consider necessary or
10
expedient for transitory, transitional or saving purposes in connection with the
commencement of any provision made by or under this Act.
(4)
An order under subsection (3) may, in particular—
(a)
make provision enabling any person by whom any powers will become
exercisable, on a date set by or under this Act, by virtue of any
15
provision made by or under this Act to take before that date any steps
which are necessary as a preliminary to the exercise of those powers;
(b)
make provision treating any rules made, permission given or other
thing done by the Financial Services Authority before commencement
under an enactment amended by this Act—
20
(i)
as having been made, given or done under a corresponding
provision of the enactment as so amended;
(ii)
as having been made, given or done (or also made, given or
done) by the PRA or the Bank of England;
(c)
make provision for the continuation of proceedings begun before
25
commencement, including provision about the decisions available to
bodies before which such proceedings take place and the effect of their
decisions;
(d)
make provision for making savings, or additional savings, from the
effect of any repeal or revocation made by or under this Act.
30
(5)
An order under subsection (3) may—
(a)
confer functions on the Treasury, the FCA or the PRA, or on the Bank
of England or its Financial Policy Committee;
(b)
modify, exclude or apply (with or without modifications) any
enactment (including any provision of, or made under, this Act).
35
(6)
In subsection (4) “commencement” means the commencement of such
provisions of this Act as may be specified by the order.
Final provisions
100
Financial provision
(1)
There is to be paid out of money provided by Parliament—
40
(a)
any expenditure incurred under or by virtue of this Act by a Minister of the
Crown or government department (apart from any expenditure to be met from
the National Loans Fund), and

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(b)
any increase attributable to this Act in the sums payable under any other Act
out of money so provided.
(2)
There is to be paid out of the National Loans Fund any increase attributable to this Act
in the sums payable under any other Act out of that Fund.
101
Extent
5
This Act extends to England and Wales, Scotland and Northern Ireland.
102
Commencement
(1)
The following provisions come into force on the day on which this Act is
passed—
sections 95 to 98;
10
section 99(3) to (8);
sections 100 and 101;
this section;
section 103.
(2)
Section 93 comes into force at the end of the period of 2 months beginning with
15
day on which this Act is passed.
(3)
The remaining provisions of this Act come into force on such day as the
Treasury may by order appoint.
(4)
Different days may be appointed for different purposes.
103
Short title
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This Act may be cited as the Financial Services Act 2012.