House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

123

House of Commons

Tuesday 6 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].

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—

(a)
smaller businesses, and

Public Bill Committee: 6 March 2012
124

Financial Services Bill, continued

(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: 6 March 2012
125

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: 6 March 2012
126

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’.

Public Bill Committee: 6 March 2012
127

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

65

Clause  5,  page  29,  line  23,  at end insert ‘, including but not limited to, the UK

Corporate Governance Code’.

Chris Leslie

Cathy Jamieson

77

Clause  5,  page  29,  line  42,  at end insert—

‘(d)
that the regulators coordinate in such a manner as to minimise

unnecessary additional expenses that might be incurred by virtue of the

separate administration of the FCA and the PRA, and to maximise any

common administrative savings achievable through close coordination.’.

Mark Durkan

86

Clause  5,  page  29,  line  42,  at end insert—

‘(d)
that each regulator engages with the other where they identify any gaps

in or between their regulatory remits, or the exercise of these, that may

become apparent in relation to any product, provider, institution, market

practice, responsible shareholder interest or consumer concern;

(e)
that as appropriate both regulators can identify areas where they can

share services and information, acting to minimise burdens on firms

supervised by both regulators and/or to maximise the understanding of

consumers and facilitate the exercise of their responsible interests.’.

Chris Leslie

116

Clause  5,  page  30,  line  4,  at end insert—

‘(c)
the FCA and PRA shall publish guidance explaining those circumstances

covered by paragraphs (a) and (b) where the duty to co-ordinate shall not

apply.’.

Chris Leslie

Cathy Jamieson

78

Clause  5,  page  31,  line  24,  at end insert—

‘(8A)
The memorandum shall contain an estimate of the additional annual costs

involved in the administration of the FCA and PRA when compared with the

estimated costs of the administration of the Financial Services Authority.’.

Chris Leslie

Cathy Jamieson

66

Clause  5,  page  32,  line  5,  at end insert ‘(by reason of its consumer protection or

competition objectives)’.

Public Bill Committee: 6 March 2012
128

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

67

Clause  5,  page  32,  line  11,  at end insert—

‘(9)
In exercising its functions under this section, the PRA must make and maintain

effective arrangements for consulting the panel established under section 1Q,

consumers, or where appropriate, persons appearing to represent the interests of

consumers’.

Chris Leslie

Cathy Jamieson

79

Clause  5,  page  34,  line  20,  after ‘PRA’, insert ‘and the Treasury’.

Chris Leslie

Cathy Jamieson

80

Clause  5,  page  37,  line  34,  after ‘supply’, insert ‘and consumption’.

Chris Leslie

Cathy Jamieson

81

Clause  5,  page  37,  line  42,  at end insert ‘particularly to those member of the public

on lower incomes.’.

Mark Hoban

124

Clause  5,  page  38,  line  12,  leave out ‘Part 1 of’.

Mark Hoban

125

Clause  5,  page  38,  line  13,  leave out subsection (3).

Chris Leslie

43

Schedule  3,  page  174,  line  44,  leave out from ‘expenses’ to end of line 46 and insert

‘to the Bank of England in respect of the services of the Bank’s Deputy Governor for

prudential regulation as a member.’.

Mark Hoban

102

Schedule  3,  page  175,  line  39,  leave out ‘312J or 345D, or’ and insert ‘or 312J

( )
section 345D (whether as a result of section 345(2) or section

249(1)), or’.

Chris Leslie

Cathy Jamieson

42

Schedule  3,  page  175,  leave out lines 16 to 21.

Public Bill Committee: 6 March 2012
129

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

69

Schedule  3,  page  176,  line  6,  at end insert—

Publication of minutes and agendas

10  (1)
The FCA shall make arrangements to publish, unless publication would be

inappropriate, the agendas and minutes of the meetings of its committees and

sub-committees.

      (2)
When a meeting of any committee or sub-committee of the FCA makes a

decision upon any matter of public policy, the minutes of the meeting or

meetings that result in that decision shall summarise the considerations which

were taken into account, both for and against the decision.’.

Chris Leslie

Cathy Jamieson

30

Schedule  3,  page  177,  line  26,  at end insert ‘on the FCA website’.

Chris Leslie

Cathy Jamieson

89

Schedule  3,  page  182,  leave out lines 33 to 37.

Chris Leslie

Cathy Jamieson

70

Schedule  3,  page  183,  line  10,  at end insert ‘merit, fairness, openness and’.

Chris Leslie

Cathy Jamieson

71

Schedule  3,  page  183,  line  45,  at end insert ‘with the approval of the Treasury’.

Mark Hoban

119

Schedule  3,  page  184,  line  18,  leave out ‘,318 or 328’ and insert ‘or 318’.



© Parliamentary copyright	Revised 6 March 2012