House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

21

House of Commons

Tuesday 21 February 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 Motion to be

proposed by Mr Mark Hoban.

Resolution of the Programming Sub-Committee

The Programming Sub-Committee appointed by the Speaker in respect of the Bill

agreed the following Resolution at its meeting on Monday 20 February (Standing Order

No. 83C):

That—

(1)
the Committee shall (in addition to its first meeting at 10.30 am on Tuesday

21 February) meet—

(a)
at 4.00 pm on Tuesday 21 February;

(b)
at 9.30 am and 1.00 pm on Thursday 23 February;

(c)
at 10.30 am and 4.00 pm on Tuesday 28 February;

(d)
at 9.30 am and 1.00 pm on Thursday 1 March;

(e)
at 10.30 am and 4.00 pm on Tuesday 6 March;

(f)
at 9.30 am and 1.00 pm on Thursday 8 March;

(g)
at 9.30 am and 1.00 pm on Thursday 15 March;

(h)
at 4.00 pm on Tuesday 20 March;

(i)
at 9.30 am on Thursday 22 March.

(2)
the proceedings shall be taken 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;

Public Bill Committee: 21 February 2012
22

Financial Services Bill, continued

Schedules 20 and 21; Clauses 100 to 103; new Clauses; new Schedules;

remaining proceedings on the Bill.

(3)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 10.25 am on Thursday 22 March.

Mr Mark Hoban

That, subject to the discretion of the Chair, any written evidence received by the

Committee shall be reported to the House for publication.

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

Mark Durkan

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

Mark Durkan

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.’.

Public Bill Committee: 21 February 2012
23

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

37

Clause  3,  page  2,  line  21,  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

Mark Durkan

9

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

Chris Leslie

Cathy Jamieson

Mark Durkan

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

Mark Durkan

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’.

Public Bill Committee: 21 February 2012
24

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

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

Mark Durkan

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

Mark Durkan

29

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

‘require or recommend’.

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—

Public Bill Committee: 21 February 2012
25

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

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,

(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,

Public Bill Committee: 21 February 2012
26

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

17

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

Chris Leslie

Cathy Jamieson

Mark Durkan

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.’.

Chris Leslie

Cathy Jamieson

33

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

Chris Leslie

Cathy Jamieson

Mark Durkan

32

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

outcome and a range of reasonably possible scenarios.’.

Public Bill Committee: 21 February 2012
27

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

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

Mark Durkan

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

Mark Durkan

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

Mark Durkan

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.



© Parliamentary copyright	Revised 21 February 2012