House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

37

House of Commons

Notices of Amendments

given on

Tuesday 21 February 2012

For other Amendment(s) see the following page(s):

Financial Services Bill Committee 23-36

Public Bill Committee

Financial Services Bill

Mark Durkan

86

Clause  5,  page  29,  line  42,  at end insert—

‘(d)
that each regulator engages with the other where they identify any gaps

in or between their regulatory remits, or the exercise of these, that may

become apparent in relation to any product, provider, institution, market

practice, responsible shareholder interest or consumer concern;

(e)
that as appropriate both regulators can identify areas where they can

share services and information, acting to minimise burdens on firms

supervised by both regulators and/or to maximise the understanding of

consumers and facilitate the exercise of their responsible interests.’.

Chris Leslie

Cathy Jamieson

87

Clause  22,  page  80,  line  2,  at end insert—

‘(2A)
The FSA may make rules or apply a sanction to authorised persons who offer

credit on terms that the FSA 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.’.

Debt management fees

Chris Leslie

Cathy Jamieson

NC1

To move the following Clause:—

‘The FCA shall bring forward recommendations within a year of the

commencement of this Act to phase out the practice of directly charging

consumers fees or charges for the provision of debt management plans.’.

Notices of Amendments: 21 February 2012
38

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

88

Schedule  12,  page  244,  line  40,  at end insert—

  ‘In section 165(A) after subsection (10) 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.

Notices of Amendments: 21 February 2012
39

Financial Services Bill, continued

(f)
The PRA shall publish a report which compiles the data collected in

accordance with Clause (1) 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.”.’.

Chris Leslie

Cathy Jamieson

89

Schedule  3,  page  182,  leave out lines 33 to 37.

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

90

Clause  6,  page  39,  line  29,  at end insert—

‘(6)
The Consumer Credit Act 1974 shall be amended as follows—



“In section 32(7) after “revocation” delete to the end of that section and replace

with “under this section shall not take effect before the end of the appeal period.

A suspension under this section may take effect before the end of the appeal

period until such time as the commencement of section 6(3) of the Financial

Services Act 2012 and responsibility for consumer credit regulation rests with the

Financial Conduct Authority, after which time a suspension shall not take effect

before the end of an appeal period.”.’.

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

91

Clause  6,  page  39,  line  5,  at end insert—

‘(4A)
After paragraph 23B insert—

“Contracts for debt management services

23C(1)
Rights under a contract for debt adjustment or debt management

services.

      (2)
Debt-adjusting is, in relation to debts due under regulated credit

agreements or contracts for the hire of goods, negotiating with the

creditor or owner, on behalf of the debtor or hirer, terms for the

discharge of a debt, or taking over, in return for payments by the

debtor or hirer, his obligation to discharge a debt, or any similar

activity concerned with the liquidation of a debt.

      (3)
Debt management is the giving of advice to debtors or hirers about the

liquidation of debts including those due under regulated credit

agreements or contracts for the hire of goods.”.’.

Mr Mark Hoban

92

Clause  14,  page  63,  line  38,  after ‘authority”’ insert ‘or “the Authority”’.

Notices of Amendments: 21 February 2012
40

Financial Services Bill, continued

Mr Mark Hoban

93

Clause  14,  page  64,  line  6,  at end insert—

‘( )
section 103(1).’

Mr Mark Hoban

94

Clause  21,  page  77,  line  29,  at end insert—

‘( )
a decision to take action under section 249;’.

Mr Mark Hoban

95

Clause  22,  page  85,  leave out lines 40 to 47 and insert ‘in accordance with section

166A.’.

Mr Mark Hoban

96

Clause  22,  page  86,  leave out lines 4 to 6.

Mr 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’.

Mr Mark Hoban

98

Clause  54,  page  134,  line  7,  after ‘PRA’ insert ‘, the FCA’.

Mr Mark Hoban

99

Clause  54,  page  134,  line  13,  after ‘PRA’ insert ‘, the FCA’.

Mr Mark Hoban

100

Clause  56,  page  135,  line  14,  after ‘PRA’ insert ‘, the FCA’.

Mr Mark Hoban

101

Clause  80,  page  148,  line  37,  leave out ‘312J or 345D of FSMA 2000, or’ and

insert ‘or 312J of FSMA 2000,

( )
section 345D of FSMA 2000 (whether as a result of section

345(2) or 345A(3) or section 249(1) of that Act), or’.

Mr Mark Hoban

102

Schedule  3,  page  175,  line  39,  leave out ‘312J or 345D, or’ and insert ‘or 312J,

( )
section 345D (whether as a result of section 345(2) or section

249(1)), or’.

Mr Mark Hoban

103

Schedule  8,  page  218,  line  31,  leave out paragraph 3 and insert—

Notices of Amendments: 21 February 2012
41

Financial Services Bill, continued

‘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”.’.

Mr 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)”.’.

Mr Mark Hoban

105

Schedule  8,  page  219,  line  17,  leave out ‘and’.

Mr 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),”’.

Mr 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”.’.

Mr 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

Notices of Amendments: 21 February 2012
42

Financial Services Bill, continued

(b)
’.

Mr 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)”.’.

Mr 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))’.

Mr Mark Hoban

111

Schedule  15,  page  270,  line  37,  leave out ‘to the Treasury’.

Mr Mark Hoban

112

Schedule  18,  page  284,  line  7,  at end insert—

‘8A(1)
Section 249 (disqualification of auditor for breach of trust scheme rules) is

amended as follows.

      (2)
In subsection (1) for the words from “it may” to the end substitute “it may do

one or more of the following—

(a)
disqualify the auditor from being the auditor of any authorised

unit trust scheme or authorised open-ended investment

company;

(b)
publish a statement to the effect that it appears to the FCA that

the auditor has failed to comply with the duty;

(c)
impose on the auditor a penalty, payable to the FCA, of such

amount as the FCA considers appropriate.”

      (3)
For subsection (2) substitute—

“(2)
Sections 345B to 345E have effect in relation to the taking of action

under subsection (1) as they have effect in relation to the taking of

action under section 345(2).”

      (4)
For the heading substitute “Disciplinary measures”’.

Mr Mark Hoban

113

Schedule  18,  page  285,  line  41,  leave out from beginning to ‘subsection’ in line 2

on page 286 and insert ‘In section 409 (Gibraltar), in’.

Mr Mark Hoban

114

Schedule  20,  page  311,  line  22,  leave out paragraphs 6 and 7 and insert—

‘5A
In relation to the first order under section 9K of the Bank of England Act 1998,

subsection (2) of that section (which relates to consultation) does not apply.

5B  (1)
This paragraph applies where a provision of Part 5 or 6 of this Act, or an

amendment of FSMA 2000 made by any provision of this Act, imposes on the

FCA, the PRA or the Bank of England, in connection with the making or

issuing of any rules or other instrument or document—

(a)
a public consultation requirement, or

Notices of Amendments: 21 February 2012
43

Financial Services Bill, continued

(b)
a requirement (however expressed) to consult particular persons.

      (2)
The requirement may be satisfied—

(a)
by things done (wholly or in part) before the commencement of the

provision in question or the passing of this Act, and

(b)
by things done by the Financial Services Authority or the Bank of

England or by both of them.

      (3)
“Public consultation requirement” means a requirement (however expressed)

to publish a draft of the instrument or other document with or without other

material and to invite representations about it.

5C  (1)
The first order under section 22A of FSMA 2000 may, if it imposes on the PRA

a public consultation requirement in relation to any statement of policy

required by the order to be prepared by the PRA, provide that in relation to the

first statement of policy the requirement may be satisfied—

(a)
by things done (wholly or in part) before the commencement of the

order or the passing of this Act, and

(b)
by things done by the Financial Services Authority or the Bank of

England or by both of them.

      (2)
“Public consultation requirement” has the same meaning as in paragraph 5B.’.



© Parliamentary copyright	Revised 22 February 2012