House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

11

House of Commons

Notices of Amendments

given up to and including

Friday 17 February 2012

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Public Bill Committee

Financial Services Bill

Mark Hoban

To move, That the Bill be considered in the following order: Clauses 1 to 3; Schedule

1; Clause 4; Schedule 2; Clause 5; Schedule 3; Clauses 6 to 10; Schedule 4; Clauses 11 to

13; Schedule 5; Clauses 14 to 20; Schedule 6; Clauses 21 to 27; Schedule 7; Clauses 28

to 32; Schedule 8; Clauses 33 and 34; Schedule 9; Clause 35; Schedule 10; Clause 36;

Schedule 11; Clauses 37 and 38; Schedule 12; Clause 39; Schedule 13; Clauses 40 and

41; Schedule 14; Clause 42; Schedule 15; Clause 43; Schedule 16; Clauses 44 to 90;

Schedule 17; Clauses 91 to 94; Schedules 18 and 19; Clauses 95 to 99; Schedules 20 and

21; Clauses 100 to 103; new Clauses; new Schedules; remaining proceedings on the 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—

Notices of Amendments: 17 February 2012
12

Financial Services Bill, continued

‘(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

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

6


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

insert ‘committee’.

Chris Leslie

Cathy Jamieson

9


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

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.’.

Notices of Amendments: 17 February 2012
13

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

10


Clause  3,  page  3,  line  27,  at end 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

7


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

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’.

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

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

29


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

‘require or recommend’.

Notices of Amendments: 17 February 2012
14

Financial Services Bill, continued

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,  at end insert—

‘(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

16


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

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,

Notices of Amendments: 17 February 2012
15

Financial Services Bill, continued

(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,

(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

17


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

Chris Leslie

Cathy Jamieson

14


Clause  3,  page  9,  line  31,  at end insert—

‘(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.

(2B)
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

18


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

website.’.

Notices of Amendments: 17 February 2012
16

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

33


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

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

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

31


Clause  3,  page  12,  line  9,  at end 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

21


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

website.’.

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

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.’.

Notices of Amendments: 17 February 2012
17

Financial Services Bill, continued

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

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

27


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

Chris Leslie

Cathy Jamieson

28


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



© Parliamentary copyright	Revised 20 February 2012