House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

97

House of Commons

Thursday 1 March 2012

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Financial Services Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [21 February 2012].

Chris Leslie

Mark Durkan

51

Clause  5,  page  15,  line  34,  at end insert ‘, fairly, efficiently and transparently.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

52

Clause  5,  page  16,  line  7,  at end insert—

‘(4A)
As part of the FCA’s consumer and integrity objectives, the FCA will raise

standards of professionalism in financial services by mandating a training and

competence regime. This must—

(a)
apply to all approved persons exercising controlled functions, regardless

of financial sector,

(b)
specify minimum thresholds of competence including integrity,

professional qualifications, continuous professional development and

adherence to a recognised code of conduct,

(c)
be evidenced by individuals holding an annual validation of

competence.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

72

Clause  5,  page  16,  line  7,  at end insert—

Public Bill Committee: 1 March 2012
98

Financial Services Bill, continued

‘(5)
The FCA must, so far as is compatible with acting in a way which advances its

operational objectives, discharge its general functions in a way which promotes

the growth and development of social finance and social investment.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

54

Clause  5,  page  16,  line  15,  at end insert—

‘(c)
the ease with which consumers can have access to financial services and

products which are affordable and appropriate to their needs’.

Chris Leslie

Cathy Jamieson

40

Clause  5,  page  16,  line  15,  at end insert—

‘(c)
the international competitiveness of the UK markets in financial

services.’.

Mark Durkan

85

Clause  5,  page  16,  line  41,  after ‘is’, insert ‘intelligible to them, appropriately

presented’.

Chris Leslie

50

Clause  5,  page  16,  line  41,  at end insert ‘, legible and in plain and intelligible

terms;’.

Chris Leslie

Cathy Jamieson

Mark Durkan

53

Clause  5,  page  16,  line  41,  at end insert—

‘(d)
the ability of consumers to access financial services’.

Chris Leslie

Mark Durkan

49

Clause  5,  page  16,  line  45,  leave out ‘level’ and insert ‘fiduciary duty’.

Chris Leslie

Mark Durkan

44

Clause  5,  page  17,  line  2,  at end insert—

‘(f)
the general principle that firms or advisers must act honestly, fairly and

professionally in the best interests of their customers.’.

Chris Leslie

Mark Durkan

48

Clause  5,  page  17,  line  2,  at end insert—

Public Bill Committee: 1 March 2012
99

Financial Services Bill, continued

‘(ea)
the general principle that regulated entities engaging in discretionary

asset management will ordinarily owe fiduciary duty to their clients.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

55

Clause  5,  page  17,  line  27,  after ‘services’, insert ‘and products’.

Mark Durkan

84

Clause  5,  page  17,  line  31,  at end insert—

‘(aa)
the ease with which consumers, in all parts of the UK, can identify and

obtain services which are appropriate to their needs and represent good

value for money.’.

Chris Leslie

Cathy Jamieson

41

Clause  5,  page  17,  line  35,  at end insert—

‘(f)
the ease with which consumers can identify and obtain services which are

appropriate to their needs and represent good value for money.’.

Chris Leslie

Cathy Jamieson

Yvonne Fovargue

123

Clause  5,  page  17,  line  35,  at end insert—

‘(3)
In furtherance of the competition objective, the FCA shall publish, maintain and

review a code [The access and choice code] setting out (amongst other things)—

(a)
the approach that the FCA will take to ensure that the market provides

different consumers with access to and choice about products and

services that are suitable for their needs.

(b)
the approach that the FCA will take to ensure that the business conduct

of those providing regulated financial services continues to promote

competition in the interests of different consumers over the life of any

agreement.

(c)
The additional steps that the FCA may take where competition does not

deliver access and choice to suitable products and service for different

consumers.

(4)
The Treasury may by order specify—

(a)
financial needs of different consumers that are to be considered essential;

(b)
the outcomes that are necessary to demonstrate that essential financial

needs of different consumers are met.

(5)
Sections 138L (1)(b) and (2) to (5) and 138K do not apply in relation to rules

made by the FSA if it considers that it is necessary or expedient not to comply

with them for the purpose of achieving an outcome specified in an order under

subsection (4) of this section.

(6)
Transactional banking is an essential financial need for all groups of consumers.

(7)
Where the FCA considers that it is unable to achieve an outcome specified in an

order made under subsection (4), the Treasury may by order confer additional

powers on the FCA or direct obligations on those providing regulated financial

services to ensure that the essential needs of different consumers are met.’.

Public Bill Committee: 1 March 2012
100

Financial Services Bill, continued

Chris Leslie

117

Clause  5,  page  19,  line  3,  at end insert—

‘(j)
by claims management companies who provide services to persons

covering litigation, or claims under regulation schemes or voluntary

arrangements.’.

Chris Leslie

118

Clause  5,  page  19,  line  3,  at end insert—

‘(j)
by debt management companies or debt adjustment services companies.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

56

Clause  5,  page  20,  line  21,  after ‘PRA.’, insert—

‘Coordination with the Financial Reporting Council

1KA
The FCA’s duty to co-ordinate with Financial Reporting Council (FRC)

(1)
The FCA must co-ordinate with the FRC with a view to promoting—

(a)
understanding and application of the principles of the UK Stewardship

Code by relevant authorised persons,

(b)
transparency regarding the approach to the Stewardship Code taken by

relevant authorised persons, and

(c)
high standards of responsible ownership, including in relation to the

management of environmental, social and governance (ESG) risks and

opportunities.’.

Mark Durkan

136


Clause  5,  page  21,  line  17,  at end insert—

‘(c)
persons who issue financial instruments,

(d)
sponsors, as defined in section 88(2),

(e)
primary information providers, as defined in section 89P(2).’.

Chris Leslie

Mark Durkan

47

Clause  5,  page  21,  line  20,  at end insert—

‘(6)
In making the appointments, the FCA must have regard to the desirability of

ensuring the representation of practitioners carrying on a range of regulated

activities.’.

Mark Durkan

137


Clause  5,  page  21,  line  20,  at end insert—

‘(6)
In making the appointments, the FCA must have regard to the desirability of

ensuring the representation of practitioners carrying on a range of regulated

activities.

(7)
The Panel must in particular include representatives of—

Public Bill Committee: 1 March 2012
101

Financial Services Bill, continued

(a)
smaller businesses, and

(b)
practitioners who are likely to be affected by the exercise by the FCA of

its functions relating to markets, including its functions under sections 6,

8A and 18.’.

Mark Durkan

138


Clause  5,  page  21,  line  21,  leave out from beginning to end of line 26 on page 22.

Mark Durkan

132

Clause  5,  page  22,  line  17,  after ‘persons’, insert ‘across the United Kingdom’.

Mark Durkan

133

Clause  5,  page  22,  line  18,  after ‘appropriate’, insert ‘, with consideration for

diversity in the composition of the panel’.

Mark Durkan

134

Clause  5,  page  22,  line  36,  after ‘consumers’, insert ‘in all parts of the United

Kingdom’.

Mark Durkan

135

Clause  5,  page  22,  line  37,  after ‘appropriate’, insert ‘, with due consideration for

diversity in the composition of the panel’.

Chris Leslie

Mark Durkan

46

Clause  5,  page  22,  line  37,  at end insert ‘in making the appointments, the FCA

must have regard to the desirability of ensuring the representation of consumers of a range

of financial products from across all parts of the United Kingdom and from a range of

income levels.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

73

Clause  5,  page  22,  line  44,  at end insert—

‘1R
The Social Investment Panel

(1)
Arrangements under section 1M must include the establishment and maintenance

of a panel of persons (to be known as “the Social Invesment Panel”) to represent

the interests of organisations which specialise wholly or mainly in social finance

or social investment.

(2)
The FCA must appoint one of the members of the Social Investment Panel to be

its chair.

(3)
The Treasury’s approval is required for the appointment or dismissal of the chair.

(4)
The FCA must appoint to the Social Investment Panel such—

(a)
individuals who represent organisations carrying out social finance

activity, and

Public Bill Committee: 1 March 2012
102

Financial Services Bill, continued

(b)
individuals who represent social sector organisations receiving social

investment, as it considers appropriate.

(5)
The FCA may appoint to the Social Investment Panel such other persons as it

considers appropriate.

(6)
In making the appointments, the FCA must have regard to the desirability of

ensuring the representation of a range of different forms of social sector

organisations.’.

Chris Leslie

45

Clause  5,  page  23,  line  4,  leave out from ‘must’ to ‘responses’ in line 5 and insert

‘publish’.

Chris Leslie

Cathy Jamieson

57

Clause  5,  page  24,  line  27,  at end insert—

‘(a)
The PRA must, so far as is compatible with its general and insurance

objectives, discharge its general functions in a way which promotes

competition’.

Chris Leslie

Cathy Jamieson

58

Clause  5,  page  24,  line  34,  at end insert—

‘(c)
seeking to minimise, as far as possible, the costs to the FSCS or the use

of public funds to support or rescue parts of the UK financial services

industry’.

Chris Leslie

Cathy Jamieson

Mark Durkan

59

Clause  5,  page  27,  line  6,  at end insert ‘and consumers’.

Chris Leslie

Cathy Jamieson

Mark Durkan

60

Clause  5,  page  27,  line  9,  after ‘consulting’, insert ‘consumers and’.

Chris Leslie

Cathy Jamieson

74

Clause  5,  page  27,  line  10,  after ‘persons’, insert ‘or the public’.

Chris Leslie

Cathy Jamieson

61

Clause  5,  page  27,  line  12,  after ‘2G’, insert—

‘(1A)
When undertaking a consultation, the PRA must have regard to the desirability of

ensuring a broad representation of practitioners and consumers in the UK

financial services sector.’.

Public Bill Committee: 1 March 2012
103

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

62

Clause  5,  page  27,  line  13,  leave out from ‘arrangements’ to end of line 14 and

insert ‘must include the maintenance and consultation of those panels established under

sections 1N, 1O, 1P and 1Q’.

Chris Leslie

Cathy Jamieson

63

Clause  5,  page  27,  line  16,  after ‘section’, insert ‘and must report annually on its

consultation activities.’.

Mark Durkan

83

Clause  5,  page  27,  line  19,  at end insert ‘and by the Consumer Panel’.

Mark Durkan

129

Clause  5,  page  27,  line  19,  at end insert—

‘(1A)
Unless the PRA has established a panel as provided for in section 2K(2) to reflect

consumer interests, it must consider representations from the Consumer Panel

established under section 1Q where such representations relate to the PRA’s

general policies and practices, the co-ordination of the exercise of PRA and FCA

functions as provided for in section 3D(1), or the exercise of the PRA power in

section 3I.’.

Chris Leslie

Cathy Jamieson

75

Clause  5,  page  27,  line  26,  at end insert ‘and shall inform the Treasury Select

Committee of the House of Commons of the nature of and arrangements for the review.’.

Chris Leslie

Cathy Jamieson

76

Clause  5,  page  29,  line  7,  after ‘consumers’, insert ‘to act honestly, fairly and

professionally’.

Mark Durkan

82

Clause  5,  page  29,  line  7,  leave out ‘in relation to compliance with these

requirements’ and insert ‘include responsibility for their decisions and compliance with

those requirements’.

Chris Leslie

Cathy Jamieson

Mark Durkan

64

Clause  5,  page  29,  line  15,  at end insert—

‘(g)
the principle that, where appropriate, authorised persons should have a

fiduciary duty towards the consumers who are their clients’.



© Parliamentary copyright	Revised 1 March 2012