Session 2010 - 12
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147

 

House of Commons

 
 

Thursday 8 March 2012

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments 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

 

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.’.

 



 
 

Public Bill Committee: 8 March 2012                     

148

 

Financial Services Bill, continued

 
 

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

 

(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.


 
 

Public Bill Committee: 8 March 2012                     

149

 

Financial Services Bill, continued

 
 

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

 

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.


 
 

Public Bill Committee: 8 March 2012                     

150

 

Financial Services Bill, continued

 
 

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”.’.

 

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


 
 

Public Bill Committee: 8 March 2012                     

151

 

Financial Services Bill, continued

 
 

(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)    

’.

 

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))’.


 
 

Public Bill Committee: 8 March 2012                     

152

 

Financial Services Bill, continued

 
 

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.”.’.

 


 

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.


 
 

Public Bill Committee: 8 March 2012                     

153

 

Financial Services Bill, continued

 
 

(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—

 

(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.”.’.

 



 
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Revised 8 March 2012