House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Public Bill Committee: 6 March 2012
130

Financial Services Bill, continued

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

Mark Durkan

91

Clause  6,  page  39,  line  5,  at end insert—

‘(4A)
After paragraph 23B insert—

“Contracts for debt management services

23C(1)
Rights under a contract for debt adjustment or debt management

services.

      (2)
Debt-adjusting is, in relation to debts due under regulated credit

agreements or contracts for the hire of goods, negotiating with the

creditor or owner, on behalf of the debtor or hirer, terms for the

discharge of a debt, or taking over, in return for payments by the

debtor or hirer, his obligation to discharge a debt, or any similar

activity concerned with the liquidation of a debt.

      (3)
Debt management is the giving of advice to debtors or hirers about the

liquidation of debts including those due under regulated credit

agreements or contracts for the hire of goods.”.’.

Chris Leslie

115

Clause  6,  page  39,  line  5,  at end insert—

‘Claims management companies

23C
Provision of services consisting of advice or services in respect of claims for

compensation, restitution, repayment or any other remedy for loss or damage,

or in respect of some other obligation.’.

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

Mark Durkan

90

Clause  6,  page  39,  line  29,  at end insert—

‘(6)
The Consumer Credit Act 1974 shall be amended as follows—



“In section 32(7) after “revocation” delete to the end of that section and replace

with “under this section shall not take effect before the end of the appeal period.

A suspension under this section may take effect before the end of the appeal

period until such time as the commencement of section 6(3) of the Financial

Services Act 2012 and responsibility for consumer credit regulation rests with the

Financial Conduct Authority, after which time a suspension shall not take effect

before the end of an appeal period.”.’.

Public Bill Committee: 6 March 2012
131

Financial Services Bill, continued

Mark Durkan

167


Clause  8,  page  40,  line  28,  at end insert—

‘(aa)
respond to changing business models, practices or patterns including

possible implications of conglomeration for competitive, systemic,

market or consumer interests;’.

Chris Leslie

Cathy Jamieson

140

Clause  9,  page  42,  line  28,  at end insert—

‘(6)
The regulators must co-ordinate their procedures for, and provide clear and

detailed guidance on, the processes for applying for, varying and cancelling

permission that are applicable to authorised persons regulated by both the PRA

and the FCA.’.

Chris Leslie

Cathy Jamieson

141

Clause  9,  page  43,  line  10,  at end insert—

‘(1A)
An order under subsection (1) is not to be made unless a draft of the order has

been laid before and approved by resolution of both Houses of Parliament.’.

Chris Leslie

Cathy Jamieson

142

Clause  9,  page  43,  leave out lines 32 to 35 and insert—

‘(3)
In considering how much weight (if any) to attach to the opinion the UK regulator

must have regard to—

(a)
the nature and scope of the supervision exercised in relation to the non-

EEA firm by the overseas regulator; and

(b)
decisions previously made by EU regulatory authorities regarding the

overseas regulator.’.

Chris Leslie

Cathy Jamieson

143

Clause  10,  page  59,  line  18,  at end insert—

‘(1B)
In seeking to ensure an appropriate degree of protection for consumers, the PRA

and FCA shall—

(a)
require banks to provide clear and prominent warnings to consumers

where deposits are not covered by the Financial Services Compensation

Scheme; and

(b)
make and maintain effective arrangements to consult consumers on the

prominence and method of such warnings.’.

Public Bill Committee: 6 March 2012
132

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

144

Clause  10,  page  59,  line  18,  at end insert—

‘(1C)
The PRA shall provide regular reports to Parliament on its duty to co-ordinate

with international regulators.’.

Chris Leslie

Cathy Jamieson

145

Clause  11,  page  61,  line  7,  at end insert—

‘(8A)
In the event of a prohibition order being made, the FCA or PRA shall—

(a)
publish an explanatory statement regarding the decision; and

(b)
include the individual on an updated list of those subject to prohibition

orders to be presented on HM Treasury website.’.

Chris Leslie

Cathy Jamieson

146

Clause  12,  page  62,  line  19,  at end insert—


‘If the FCA considers it appropriate to change the way it exercises its powers

under section 59(3)(a), it must lay before Parliament a report on its reasons for

any changes.’.

Mark Hoban

92

Clause  14,  page  63,  line  38,  after ‘authority”’ insert ‘or “the Authority”’.

Mark Hoban

93

Clause  14,  page  64,  line  6,  at end insert—

‘( )
section 103(1).’

Public Bill Committee: 6 March 2012
133

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

147

Clause  16,  page  68,  line  37,  at end insert—

‘(9)
The Treasury must lay before Parliament a copy of any statement published under

this section.’.

Chris Leslie

Cathy Jamieson

148

Clause  17,  page  74,  line  15,  at end insert—

‘(9)
The Treasury must lay before Parliament a copy of any statement published under

this section.’.

Mark Hoban

94

Clause  21,  page  77,  line  29,  at end insert—

‘( )
a decision to take action under section 249;’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Stella Creasy

87

Clause  22,  page  80,  line  2,  at end insert—

‘(2A)
The FCA may make rules or apply a sanction to authorised persons who offer

credit on terms that the FCA judge to cause consumer detriment. This may

include rules that determine a maximum total cost for consumers of a product and

determine the maximum duration of a supply of a product or service to an

individual consumer.’.

Chris Leslie

Cathy Jamieson

149

Clause  22,  page  82,  line  10,  at end insert—

‘(c)
provide for a legal sanction based approach introducing a strict liability

for executives and Board members.’.

Chris Leslie

Cathy Jamieson

150

Clause  22,  page  82,  line  10,  at end insert—

‘(c)
provide for a requirement that an employee representative should be a

member of the remuneration committee of a relevant body corporate; and

Public Bill Committee: 6 March 2012
134

Financial Services Bill, continued

(d)
provide for a requirement that the remuneration consultants advising on

remuneration policy shall be appointed by the shareholders of a relevant

body corporate.’.

Mark Hoban

95

Clause  22,  page  85,  leave out lines 40 to 47 and insert ‘in accordance with section

166A.’.

Mark Hoban

96

Clause  22,  page  86,  leave out lines 4 to 6.

Chris Leslie

Cathy Jamieson

151

Clause  22,  page  89,  line  34,  at end insert—

‘137QA
  Advisory fees in respect of mergers and acquisitions

(1)
Either regulator may make rules (“fee structures in respect of mergers and

acquisitions”) about the advisory or consultancy fee arrangements where an

authorised person contracts a third party to give advice on the possibility of a

merger or acquisition of control of any other body corporate.’.

Chris Leslie

Cathy Jamieson

152

Clause  22,  page  93,  line  43,  after ‘1B(1)’, insert ‘and 1B(5)(a),’.

Chris Leslie

Cathy Jamieson

153

Clause  22,  page  95,  line  10,  after ‘2D(3)’, insert ‘and 2G’.

Chris Leslie

Cathy Jamieson

154

Clause  22,  page  100,  line  13,  at end insert—

‘(1)
The FCA and the Office of Fair Trading (OFT) must co-ordinate in the exercise

of their functions to promote competition in financial services. The FCA and the

OFT must prepare and maintain a memorandum of understanding which

describes the role of each regulator in relation to promoting competition in

financial services markets. The memorandum of understanding should make

clear the OFT will only conduct a market study into a financial services market

within the regulatory remit of the FCA in exceptional circumstances.’.

Chris Leslie

Cathy Jamieson

155

Clause  22,  page  102,  line  10,  at end insert—

‘(1A)
Before the end of 2013, a regulator may, in consultation with the Treasury, ask

the Competition Commission to provide a report giving section 140B advice with

Public Bill Committee: 6 March 2012
135

Financial Services Bill, continued

reference to the Independent Commission on Banking recommendations on

competition.’.

Chris Leslie

Cathy Jamieson

156

Clause  25,  page  108,  leave out lines 29 and 30.

Chris Leslie

Cathy Jamieson

157

Clause  25,  page  108,  leave out lines 34 to 39.

Chris Leslie

Cathy Jamieson

158

Clause  25,  page  111,  line  38,  at end insert—

‘(8)
The Treasury must lay before Parliament a copy of any statement published under

this section.’.

Mark Durkan

131

Clause  30,  page  117,  line  37,  at end insert—

‘(2)
If a statement is published and further investigation does not result in a penalty

the regulator must publish this outcome in a manner the regulator believes is most

suitable to bring this to the attention of the public.’.

Mark Hoban

103

Schedule  8,  page  218,  line  31,  leave out paragraph 3 and insert—

‘3  (1)
Section 287 (application by an investment exchange) is amended as follows.

      (2)
In subsections (1) and (2) for “the Authority”, in each place, substitute “the

FCA”.

      (3)
In subsection (3)—

(a)
in paragraph (a), after “provision” insert “by another person”,

(b)
in paragraph (b), for “clearing services” substitute “services falling

within section 285(2)(b)”, and

(c)
in paragraphs (d) and (e), for “the Authority” substitute “the FCA”.’.

Public Bill Committee: 6 March 2012
136

Financial Services Bill, continued

Mark Hoban

104

Schedule  8,  page  218,  line  38,  at end insert—

    ‘(4)
In subsection (3)(b), after “clearing services” insert “or services falling within

section 285(3)(b)”.’.

Mark Hoban

105

Schedule  8,  page  219,  line  17,  leave out ‘and’.

Mark Hoban

106

Schedule  8,  page  219,  line  18,  at end insert—

‘(c)
omit the “or” following paragraph (a), and

(d)
at the end of paragraph (b) insert “or

(c)
the provision by the applicant of services falling within

section 285(2)(b) or (3)(b),”’.

Mark Hoban

107

Schedule  8,  page  219,  line  29,  leave out sub-paragraphs (3) and (4) and insert—

    ‘(3)
In subsection (6)—

(a)
in paragraph (a), after “provision” insert “by another person”,

(b)
in paragraph (b), for “clearing services” substitute “services falling

within section 285(2)(b)”, and

(c)
for “the Authority” substitute “the FCA and the Bank of England”.

      (4)
In subsection (7)—

(a)
in paragraph (a), after “clearing services” insert “or services falling

within section 285(3)(b)”,

(b)
in paragraph (b), after “clearing services” insert “or services falling

within section 285(3)(b)”, and

(c)
for “the Authority” substitute “the Bank of England and the FCA”.’.

Mark Hoban

108

Schedule  8,  page  221,  line  11,  after ‘provision)’ insert—

‘(a)
in subsection (1), for the words from “with” to the end substitute “with—

(a)
its business as an investment exchange,

(b)
the provision by it of clearing services, or

(c)
the provision by it of services falling within section

285(2)(b) or (3)(b).”, and

(b)
’.



© Parliamentary copyright	Revised 6 March 2012