House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

171

House of Commons

Thursday 15 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 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’.

Public Bill Committee: 15 March 2012
172

Financial Services Bill, continued

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)
’.

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: 15 March 2012
173

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

Mark Durkan

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

Mark Durkan

191

Schedule  11,  page  241,  line  8,  at end insert—


‘In section 234(1), after “or any class of authorised person”, insert “or any claims

management company authorised under the Compensation Act 2006.”’.

Chris Leslie

Cathy Jamieson

Mark Durkan

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—

Public Bill Committee: 15 March 2012
174

Financial Services Bill, continued

‘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—

(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—

Public Bill Committee: 15 March 2012
175

Financial Services Bill, continued

(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.”.’.

Mark Durkan

197


Schedule  13,  page  256,  line  24,  leave out ‘has failed’ and insert ‘may have failed’.

Mark Durkan

198


Schedule  13,  page  256,  line  26,  leave out ‘has failed’ and insert ‘may have failed’.

Mark Durkan

199


Schedule  13,  page  256,  line  28,  at end insert—

‘(a)
The FCA may refer the matter to the FRC or the relevant recognised

supervisory body.’.

Mark Durkan

200


Schedule  13,  page  257,  line  28,  leave out ‘has failed’ and insert ‘may have failed’.

Mark Durkan

201


Schedule  13,  page  257,  line  30,  leave out ‘has failed’ and insert ‘may have failed’.

Mark Durkan

202


Schedule  13,  page  257,  line  31,  at end insert—

‘(c)
The PRA may refer the matter to the FRC or the relevant recognised

supervisory body.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

169

Clause  40,  page  124,  line  31,  at end insert—

‘(2)
A designated consumer body may make a complaint to the PRA that a feature, or

combination of features, of the market for with-profits insurance policies is, or

appears to be, significantly damaging the interests of consumers.’.

Public Bill Committee: 15 March 2012
176

Financial Services Bill, continued

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’.

Chris Leslie

Cathy Jamieson

Mark Durkan

170

Clause  40,  page  126,  line  23,  after ‘FCA’, insert ‘or PRA’.

Chris Leslie

Cathy Jamieson

Mark Durkan

171

Clause  40,  page  126,  line  32,  after ‘the FCA’s’, insert ‘or the PRA’s’.

Chris Leslie

Cathy Jamieson

168

Clause  40,  page  127,  leave out lines 13 to 37.

Chris Leslie

Cathy Jamieson

Mark Durkan

172

Clause  40,  page  127,  line  37,  at end insert—

‘234H
Power of FCA to make request to Competition Commission

(1)
Part 131 of the Enterprise Act 2002 is amended as follows.

(2)
The FCA may, subject to subsection (4) of section 131 of the Enterprise Act 2002,

make a reference to the Commission if the FCA has reasonable grounds for

suspecting that any feature, or combination of features, of a market for financial

services in the United Kingdom prevents, restricts or distorts competition in

connection with the supply or acquisition of any financial services in the United

Kingdom or a part of the United Kingdom.’.

Public Bill Committee: 15 March 2012
177

Financial Services Bill, continued

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.’.

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’.

Chris Leslie

Cathy Jamieson

Mark Durkan

173

Clause  54,  page  134,  line  2,  at end insert—

‘(3)
The first case requires the Bank of England, FPC, FCA or PRA to provide the

Treasury or the Secretary of State with an early warning of the possibility that a

notification of a material risk to public funds may be given, and full information

about the circumstances.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

176

Clause  54,  page  134,  line  3,  leave out ‘first’ and insert ‘second’.



© Parliamentary copyright	Revised 15 March 2012