Session 2010 - 12
Internet Publications
Other Bills before Parliament


 
 

3

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Thursday 16 February 2012

 

Public Bill Committee


 

Financial Services Bill

 

Chris Leslie

 

Cathy Jamieson

 

1

 

Clause  1,  page  1,  leave out line 5 and insert ‘(1), (2) and (2A) substitute—

 

“(1)    

There shall continue to be a court of directors of the Bank but it shall be renamed

 

the Supervisory Board of the Bank of England.”.’.

 

Chris Leslie

 

Cathy Jamieson

 

2

 

Clause  1,  page  1,  line  8,  leave out ‘a Governor’ and insert ‘the Governor of the

 

Bank.’.

 

Chris Leslie

 

Cathy Jamieson

 

3

 

Clause  1,  page  1,  line  12,  at end insert—

 

‘(2A)    

The Chancellor of the Exchequer shall only appoint a person under subsection

 

(2)(e) if he is satisfied that the person has knowledge or experience which is likely

 

to be relevant to the Court’s functions and would enhance the diversity of the

 

composition of the Court.’.

 

Chris Leslie

 

Cathy Jamieson

 

4

 

Clause  2,  page  2,  line  7,  at end insert—

 

‘(2A)    

The Bank shall also be under a duty to minimise, as far as possible, the use of

 

public funds to support or rescue parts of the UK financial services industry.’.

 

Chris Leslie

 

Cathy Jamieson

 

5

 

Clause  3,  page  3,  line  34,  after ‘functions’, insert ‘having regard to the

 

Government’s growth, employment and other economic objectives’.


 
 

Notices of Amendments: 16 February 2012                  

4

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Cathy Jamieson

 

6

 

Clause  3,  page  3,  line  7,  leave out ‘sub-committee of the court of directors’ and

 

insert ‘committee’.

 

Chris Leslie

 

Cathy Jamieson

 

7

 

Clause  3,  page  3,  line  31,  leave out ‘sub-committee’ and insert ‘committee’.

 

Chris Leslie

 

Cathy Jamieson

 

8

 

Clause  3,  page  3,  line  24,  after ‘functions’, insert ‘and must have regard to the

 

desirability of ensuring a broad representation of practitioners and consumers in the UK

 

financial services sector.’.

 

Chris Leslie

 

Cathy Jamieson

 

9

 

Clause  3,  page  3,  line  14,  leave out ‘4’ and insert ‘6’.

 

Chris Leslie

 

Cathy Jamieson

 

10

 

Clause  3,  page  3,  line  27,  after ‘discharge’ insert—

 

‘(c)    

allow sufficient time for the Treasury Select Committee to hold

 

appointment hearings with candidates to be appointed under (1)(e) before

 

their appointment to the Committee.’.

 

Chris Leslie

 

Cathy Jamieson

 

11

 

Clause  3,  page  3,  line  28,  leave out ‘procedures’ and insert ‘activities’.

 

Chris Leslie

 

Cathy Jamieson

 

12

 

Clause  3,  page  4,  line  3,  at end insert—

 

‘(3A)    

In the event of the FPC coming into conflict with the MPC in the exercise of its

 

objectives, the Governor should inform the Court and the Chancellor to explain

 

how the conflict will be resolved.’.

 

Chris Leslie

 

Cathy Jamieson

 

13

 

Clause  3,  page  5,  line  16,  leave out ‘operational’.

 

Chris Leslie

 

Cathy Jamieson

 

14

 

Clause  3,  page  6,  line  16,  after ‘discharge’ insert—


 
 

Notices of Amendments: 16 February 2012                  

5

 

Financial Services Bill, continued

 
 

‘(2A)    

The FPC must carry out and complete a review of the definition of regulated

 

persons and the scope of exemptions permitted under FSMA 2000 to consider

 

whether the scope of exemptions is appropriate. The FPC must make

 

recommendations under section (2A)—

 

(a)    

before the end of the period of 30 days beginning with the day on which

 

this section comes into force, and

 

(b)    

at least once in every calendar year following that in which the first

 

recommendations are made.’.

 

Chris Leslie

 

Cathy Jamieson

 

15

 

Clause  3,  page  8,  line  32,  at end insert—

 

‘(1A)    

 

(a)    

if the Treasury considers it appropriate to proceed with the making of an

 

order under section 9K, the Treasury may lay before Parliament—

 

(i)    

a draft order, and

 

(ii)    

an explanatory document,

 

(b)    

the explanatory document must—

 

(i)    

introduce and give reasons for the order,

 

(ii)    

explain why the Treasury considers that the order serves the

 

purpose in section 9K, and

 

(iii)    

be accompanied by a copy of any representations received from

 

the FPC or the Governor,

 

(c)    

the Treasury may not act under subsection (1A)(a) before the end of the

 

period of 12 weeks beginning with the day on which the consultation

 

began, unless the order is made in accordance with subsection (2),

 

(d)    

subject as follows, if after the expiry of the 40-day period the draft order

 

laid under subsection (1A)(a) is approved by a resolution of each House

 

of Parliament, the Minister may make an order in the terms of the draft

 

order,

 

(e)    

the procedure in subsections (1A)(f) to (1A)(i) shall apply to the draft

 

order instead of the procedure in subsection (1A)(d) if—

 

(i)    

either House of Parliament so resolves within the 30-day period,

 

or

 

(ii)    

a committee of either House charged with reporting on the draft

 

order so recommends within the 30-day period and the House to

 

which the recommendation is made does not by resolution reject

 

the recommendation within that period,

 

(f)    

the Minister must have regard to—

 

(i)    

any representations,

 

(ii)    

any resolutions of either House of Parliament, and

 

(iii)    

any recommendations of a committee of either House of

 

Parliament charged with reporting on the draft order, made

 

during the 60-day period with regard to the draft order,

 

(g)    

if after the expiry of the 60-day period the draft order is approved by a

 

resolution of each House of Parliament, the Minister may make an order

 

in the terms of the draft order,

 

(h)    

if after the expiry of the 60-day period the Minister wishes to proceed

 

with the draft order but with material changes, the Minister may lay

 

before Parliament—

 

(i)    

a revised draft order, and

 

(ii)    

a statement giving a summary of the changes proposed,


 
 

Notices of Amendments: 16 February 2012                  

6

 

Financial Services Bill, continued

 
 

(i)    

if the revised draft order is approved by a resolution of each House of

 

Parliament, the Minister may make an order in the terms of the revised

 

draft order,

 

(j)    

for the purposes of this section an order is made in the terms of a draft

 

order or revised draft order if it contains no material changes to its

 

provisions,

 

(k)    

in this section, references to the “30-day”, “40-day” and “60-day”

 

periods in relation to any draft order are to the periods of 30, 40 and 60

 

days beginning with the day on which the draft order was laid before

 

Parliament,

 

(l)    

for the purposes of subsection (1A)(k) no account is to be taken of any

 

time during with Parliament is dissolved or prorogued or during which

 

either House is adjourned for more than four days.’.

 

Chris Leslie

 

Cathy Jamieson

 

16

 

Clause  3,  page  8,  line  22,  at end insert ‘on the Bank of England website.’.

 

Chris Leslie

 

Cathy Jamieson

 

17

 

Clause  3,  page  9,  line  13,  leave out lines 13 to 17.

 

Chris Leslie

 

Cathy Jamieson

 

18

 

Clause  3,  page  11,  line  12,  at end insert ‘but always on the Bank of England

 

website.’.

 

Chris Leslie

 

Cathy Jamieson

 

19

 

Clause  3,  page  12,  line  2,  at end insert—

 

‘(f)    

an assessment of the impact of each macro-prudential measure on

 

employment and economic growth.’.

 

Chris Leslie

 

Cathy Jamieson

 

20

 

Clause  3,  page  12,  line  9,  at end insert—

 

‘(c)    

an assessment of the state of financial stability against early warning

 

indicators and report against the effectiveness of the macro-prudential

 

measures deployed.’.

 

Chris Leslie

 

Cathy Jamieson

 

21

 

Clause  3,  page  12,  line  23,  at end insert ‘but always on the Bank of England

 

website.’.


 
 

Notices of Amendments: 16 February 2012                  

7

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Cathy Jamieson

 

22

 

Clause  3,  page  12,  line  35,  at end insert ‘but always on the HM Treasury website.’.

 

Chris Leslie

 

Cathy Jamieson

 

23

 

Clause  4,  page  14,  line  36,  at end add—

 


 

‘Within a year of commencement of this Act the Bank of England shall publish a review

 

of the effectiveness of coordination by the regulators of the exercise of their functions

 

relating to membership of, and their relations with, the European Supervisory Authorities

 

(namely, the European Banking Authority, the European Insurance and Occupational

 

Pensions Authority and the European Securities and Markets Authority), and their

 

relations with other regulatory bodies outside the United Kingdom.’.

 

Chris Leslie

 

Cathy Jamieson

 

24

 

Schedule  1,  page  168,  line  11,  at end insert ‘but shall not exceed the terms and

 

conditions and remuneration arrangements available to external members of the Monetary

 

Policy Committee.’.

 

Chris Leslie

 

Cathy Jamieson

 

25

 

Schedule  1,  page  169,  leave out lines 35 to 37.

 

Chris Leslie

 

Cathy Jamieson

 

26

 

Schedule  1,  page  170,  line  42,  at end insert—

 

‘Scottish Parliament (Disqualification) Order 2010

 

6          

In Part 1 of the Schedule to the Scottish Parliament (Disqualification) Order

 

2010, at the appropriate place insert “Member of the Financial Policy

 

Committee of the Bank of England appointed under 9B(1)(d) or (e) of the Bank

 

of England Act 1998.”

 

National Assembly for Wales (Disqualification) Order 2010

 

7          

In Part 1 of the Schedule to the National Assembly for Wales

 

(Disqualification) Order 2010, at the appropriate place insert “Member of the

 

Financial Policy Committee of the Bank of England appointed under 9B(1)(d)

 

or (e) of the Bank of England Act 1998.”.’.

 

Chris Leslie

 

Cathy Jamieson

 

27

 

Schedule  2,  page  171,  leave out lines 26 to 28.


 
 

Notices of Amendments: 16 February 2012                  

8

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Cathy Jamieson

 

28

 

Schedule  2,  page  173,  line  17,  at end add—

 

‘Review of remuneration

 

5          

Within a year of Royal Assent for this Act the Bank of England shall publish

 

a review of the remuneration and pension fund arrangements for senior

 

executives and those appointed to serve on the committees and sub-

 

committees of the Bank.’.

 

Chris Leslie

 

Cathy Jamieson

 

29

 

Clause  3,  page  6,  line  27,  leave out from ‘may’ to first ‘the’ in line 29.

 

Chris Leslie

 

Cathy Jamieson

 

30

 

Schedule  2,  page  177,  line  26,  at end insert ‘on the FCA website’.

 

Chris Leslie

 

Cathy Jamieson

 

31

 

Clause  3,  page  12,  line  9,  after ‘objectives.’, insert—

 

‘(c)    

an assessment of the impact of the Committee’s measures on the

 

functioning of financial markets and the wider economy.’.

 

Chris Leslie

 

Cathy Jamieson

 

32

 

Clause  3,  page  11,  line  37,  after ‘system’, insert ‘including both the most likely

 

outcome and a range of reasonably possible scenarios.’.

 

Chris Leslie

 

Cathy Jamieson

 

33

 

Clause  3,  page  11,  line  35,  leave out ‘two’ and insert ‘four’.

 

Chris Leslie

 

Cathy Jamieson

 

34

 

Clause  3,  page  7,  line  40,  after ‘Committee’, insert ‘and the public’.

 

Chris Leslie

 

Cathy Jamieson

 

35

 

Clause  3,  page  7,  line  42,  after ‘Committee’, insert ‘and/or the public’.

 

Chris Leslie

 

Cathy Jamieson

 

36

 

Clause  3,  page  7,  line  43,  after ‘Bank’, insert, ‘


 
 

Notices of Amendments: 16 February 2012                  

9

 

Financial Services Bill, continued

 
 

(c)    

where an order is made under subsection 2(b) above, the reasons for not

 

consulting the Committee and/or the public shall be subject to scrutiny

 

by the Treasury Committee.’.

 

Chris Leslie

 

Cathy Jamieson

 

37

 

Clause  3,  page  2,  line  20,  after ‘strategy’, insert ‘including the proposed range of

 

macro-prudential measures available to the Bank.’.

 

Chris Leslie

 

Cathy Jamieson

 

38

 

Clause  3,  page  2,  line  26,  after ‘Treasury’, insert—

 

‘(c)    

the public’.

 

Chris Leslie

 

Cathy Jamieson

 

39

 

Clause  3,  page  6,  line  7,  at end insert—

 

‘(1A)    

The Financial Policy Committee may give a direction to the FCA or the PRA

 

requiring the regulator to exercise its functions so as to ensure the

 

implementation, by or in relation to a specified class of regulated persons, of a

 

disclosure of their leverage ratio, as defined in the Basel III agreement, as part of

 

their regular reporting not later than the beginning of 2013.’.

 

Chris Leslie

 

Cathy Jamieson

 

40

 

Clause  5,  page  16,  line  15,  at end insert—

 

‘(c)    

the international competitiveness of the UK markets in financial

 

services.’.

 

Chris Leslie

 

Cathy Jamieson

 

41

 

Clause  3,  page  17,  line  35,  at end insert—

 

‘(f)    

the ease with which consumers can identify and obtain services which are

 

appropriate to their needs and represent good value for money.’.

 


 
contents
 

© Parliamentary copyright
Revised 17 February 2012