House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Public Bill Committee: 6 March 2012
137

Financial Services Bill, continued

Mark Hoban

109

Schedule  8,  page  222,  line  30,  at end insert—

‘35A
In section 313 (interpretation), in subsection (4), after “clearing services”

insert “or services falling within section 285(3)(b)”.’.

Chris Leslie

Cathy Jamieson

159

Schedule  9,  page  230,  line  39,  leave out from ‘(c)’ to ‘the’ in line 40.

Mark Hoban

110

Schedule  9,  page  231,  line  17,  after ‘345B’ insert ‘(whether as a result of section

345(2) or 345A(3) or section 249(1))’.

Mark Durkan

130

Schedule  9,  page  233,  line  15,  at end insert ‘and the Regulatory Decisions

Committee’.

Chris Leslie

Cathy Jamieson

160

Schedule  10,  page  239,  line  36,  at end insert—

‘(14)
The regulators shall bring forward recommendations within six months of Royal

Assent of this Act applying the Financial Services Compensation Scheme by

brand.’.

Chris Leslie

Cathy Jamieson

166


Schedule  11,  page  243,  line  2,  at end insert—

‘19A In paragraph 8 (guidance), at end insert “The scheme operator must consult publicly

on any information, advice or guidance produced prior to publication.”.’.

Public Bill Committee: 6 March 2012
138

Financial Services Bill, continued

Mark Hoban

97

Clause  37,  page  122,  line  49,  leave out ‘PRA-authorised persons’ and insert ‘the

Society, and the members of the Society, taken together’.

Chris Leslie

Cathy Jamieson

Mark Durkan

88

Schedule  12,  page  244,  line  40,  at end insert—

‘In section 165A after subsection (10) at end insert—

“(11)
Data Collection

(a)
The PRA should require the submission of reports from any PRA-

authorised person for the purpose of assessing the extent to which a

financial activity or financial market in which the PRA-authorised person

participates may pose a threat to financial stability in accordance with the

PRA’s general objective. The PRA shall collect, in a manner determined

by the PRA and in consultation with the FPC, financial transaction data

and position data from PRA-authorised person companies.

(b)
For the purposes of (a)—

(i)
financial transaction data shall mean data pertaining to the

structure and legal description of a financial contract, with

sufficient detail to describe the rights and obligations between

counterparties and make possible an independent valuation; and

(ii)
position data shall mean data pertaining to data on financial

assets or liabilities held on the balance sheet of a financial

company, where positions are created or changed by the

execution of a financial transaction and which includes

information that identifies counterparties, the valuation by the

financial company of the position, and information that makes

possible an independent valuation of the position.

(c)
The FCA shall assist the PRA in accordance with Clause 3D to ensure

that the PRA is able to exercise its function as described in (a);

(d)

(i)
To facilitate the effective collection of data, the PRA should

prepare and publish, in a manner that is easily accessible to the

public and in the form of a summary or collection of information

so framed that it is not possible to ascertain from it information

relating to any particular person—

(1)
a database detailing relevant counterparties; and

(2)
a financial instrument reference database; and

(3)
formats and standards for PRA data, including standards

for reporting financial transaction and position data to

the PRA; and

(ii)
Where possible, the PRA shall co-operate with foreign

regulators to the extent required to collect relevant information

on PRA-authorised persons already collected by those foreign

regulators;

(e)
The PRA shall develop and maintain sufficient resources to review the

collection of data referred to in (a) above in order to—

Public Bill Committee: 6 March 2012
139

Financial Services Bill, continued

(i)
develop and maintain metrics and reporting systems for risks to

the financial stability of the United Kingdom;

(ii)
evaluate stress tests or other stability-related evaluations of

financial entities overseen;

(iii)
investigate disruptions and failures in the financial markets;

(iv)
conduct studies on the impact of policies relating to systemic

risk;

(v)
promote best practices for financial risk managment to PRA-

authorised persons.

(f)
The PRA shall publish a report which compiles the data collected in

accordance with (a) on a periodic basis as determined by the PRA, which

shall be—

(i)
made available to the public in an easily accessible medium; and

(ii)
in the form of a summary or collection of information so framed

that it is not possible to ascertain from it information relating to

any particular person.”.’.

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

127

Clause  40,  page  124,  line  32,  leave out ‘a’ and insert ‘an independent and

impartial’.

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

128

Clause  40,  page  125,  line  6,  leave out ‘given in section 1G’ and insert ‘any natural

person who is acting for purposes which are outside his trade, business, craft or

profession’.

Mark Hoban

111

Schedule  15,  page  270,  line  37,  leave out ‘to the Treasury’.

Chris Leslie

Cathy Jamieson

162

Clause  47,  page  130,  line  36,  at end insert—

‘(f)
providing for any function of the FSA in respect of the Registry of

Friendly Societies to be transferred to a registrar established at the

Registrar of Companies.’.

Public Bill Committee: 6 March 2012
140

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

163

Clause  47,  page  131,  line  1,  leave out ‘both the FCA and PRA’ and insert ‘the

Registry of Friendly Societies established at the Registrar of Companies or to any of the

FCA and PRA and the Registry of Friendly Societies at the Registrar of Companies’.

Chris Leslie

Cathy Jamieson

164

Clause  48,  page  132,  line  4,  leave out ‘to the FCA and the PRA’ and insert ‘the

Registrar of Companies or to the FCA, the PRA and the Registrar of Companies’.

Mark Hoban

98

Clause  54,  page  134,  line  7,  after ‘PRA’ insert ‘, the FCA’.

Mark Hoban

99

Clause  54,  page  134,  line  13,  after ‘PRA’ insert ‘, the FCA’.

Mark Hoban

100

Clause  56,  page  135,  line  14,  after ‘PRA’ insert ‘, the FCA’.

Tom Greatrex

Chris Leslie

139

Clause  77,  page  146,  leave out line 39 to line 25 on page 147 and insert—

‘(2)
The Treasury may publish the whole, or any part, of the report and may do so in

such manner as it considers appropriate.

(3)
The Treasury must prevent publication of any part of the report which it considers

may contain material—

(a)
which relates to the affairs of a particular person whose interests would,

in the opinion of the Treasury, be seriously prejudiced by publication of

the material; or

(b)
the disclosure of which would be incompatible with an international

obligation of the United Kingdom.

Public Bill Committee: 6 March 2012
141

Financial Services Bill, continued

(4)
The Treasury must lay before each House of Parliament a copy of any report or

part of a report published under subsection (2) subject to the provisions of

subsection (3).’.

Mark Hoban

101

Clause  80,  page  148,  line  37,  leave out ‘312J or 345D of FSMA 2000, or’ and

insert ‘or 312J of FSMA 2000,

( )
section 345D of FSMA 2000 (whether as a result of section

345(2) or 345A(3) or section 249(1) of that Act), or’.

Mark Hoban

112

Schedule  18,  page  284,  line  7,  at end insert—

‘8A(1)
Section 249 (disqualification of auditor for breach of trust scheme rules) is

amended as follows.

      (2)
In subsection (1) for the words from “it may” to the end substitute “it may do

one or more of the following—

(a)
disqualify the auditor from being the auditor of any authorised

unit trust scheme or authorised open-ended investment

company;

(b)
publish a statement to the effect that it appears to the FCA that

the auditor has failed to comply with the duty;

(c)
impose on the auditor a penalty, payable to the FCA, of such

amount as the FCA considers appropriate.”

      (3)
For subsection (2) substitute—

“(2)
Sections 345B to 345E have effect in relation to the taking of action

under subsection (1) as they have effect in relation to the taking of

action under section 345(2).”

      (4)
For the heading substitute “Disciplinary measures”’.

Mark Hoban

120

Schedule  18,  page  284,  line  43,  at end insert—

‘( )
in the heading, for “Authority’s” substitute “FCA’s”.’.

Mark Hoban

121

Schedule  18,  page  285,  line  18,  leave out ‘“section 44 or 45 of a Part IV

permission”’ and insert ‘paragraph (a)’.

Public Bill Committee: 6 March 2012
142

Financial Services Bill, continued

Mark Hoban

122

Schedule  18,  page  285,  line  26,  leave out from ‘Part IV’ to end of line 27 and insert

‘substitute “Part 4A”’.

Mark Hoban

113

Schedule  18,  page  285,  line  41,  leave out from beginning to ‘subsection’ in line 2

on page 286 and insert ‘In section 409 (Gibraltar), in’.

Mark Hoban

114

Schedule  20,  page  311,  line  22,  leave out paragraphs 6 and 7 and insert—

‘5A
In relation to the first order under section 9K of the Bank of England Act 1998,

subsection (2) of that section (which relates to consultation) does not apply.

5B  (1)
This paragraph applies where a provision of Part 5 or 6 of this Act, or an

amendment of FSMA 2000 made by any provision of this Act, imposes on the

FCA, the PRA or the Bank of England, in connection with the making or

issuing of any rules or other instrument or document—

(a)
a public consultation requirement, or

(b)
a requirement (however expressed) to consult particular persons.

      (2)
The requirement may be satisfied—

(a)
by things done (wholly or in part) before the commencement of the

provision in question or the passing of this Act, and

(b)
by things done by the Financial Services Authority or the Bank of

England or by both of them.

      (3)
“Public consultation requirement” means a requirement (however expressed)

to publish a draft of the instrument or other document with or without other

material and to invite representations about it.

5C  (1)
The first order under section 22A of FSMA 2000 may, if it imposes on the PRA

a public consultation requirement in relation to any statement of policy

required by the order to be prepared by the PRA, provide that in relation to the

first statement of policy the requirement may be satisfied—

(a)
by things done (wholly or in part) before the commencement of the

order or the passing of this Act, and

(b)
by things done by the Financial Services Authority or the Bank of

England or by both of them.

      (2)
“Public consultation requirement” has the same meaning as in paragraph 5B.’.

Public Bill Committee: 6 March 2012
143

Financial Services Bill, continued

NEW CLAUSES

Debt management fees

Chris Leslie

Cathy Jamieson

Mark Durkan

Yvonne Fovargue

NC1

To move the following Clause:—

‘The FCA shall bring forward recommendations within a year of the

commencement of this Act to phase out the practice of directly charging

consumers fees or charges for the provision of debt management plans.’.

Depositor preference in insolvency

Chris Leslie

Cathy Jamieson

NC2

To move the following Clause:—

‘The Treasury shall bring forward regulations to ensure FSCS insured deposits

are moved above other unsecured creditors and above floating charge holders in

the creditor hierarchy in the event of insolvency or any imposition of losses in

resolution.’.

Building Society Investors Special Provisions: Members or depositors dying

Chris Leslie

Cathy Jamieson

NC3


To move the following Clause:—

‘(1)
Schedule 7 of the Building Societies Act 1986 is amended as follows:

“(2)
In paragraph 1(1) for “£5,000” substitute “£15,000” and in paragraph

1(4) for “£5,000” substitute “£15,000”.’.



© Parliamentary copyright	Revised 6 March 2012