House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

147

House of Commons

Thursday 8 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

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.”.’.



© Parliamentary copyright	Revised 8 March 2012