House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Public Bill Committee: 21 February 2012
28

Financial Services Bill, continued

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

Mark Durkan

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

Public Bill Committee: 21 February 2012
29

Financial Services Bill, continued

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

committees of the Bank.’.

Chris Leslie

51


Clause  5,  page  15,  line  34,  at end insert ‘, fairly, efficiently and transparently.’.

Chris Leslie

Cathy Jamieson

52


Clause  5,  page  16,  line  7,  at end insert—

‘(4A)
As part of the FCA’s consumer and integrity objectives, the FCA will raise

standards of professionalism in financial services by mandating a training and

competence regime. This must—

(a)
apply to all approved persons exercising controlled functions, regardless

of financial sector,

(b)
specify minimum thresholds of competence including integrity,

professional qualifications, continuous professional development and

adherence to a recognised code of conduct,

(c)
be evidenced by individuals holding an annual validation of

competence.’.

Chris Leslie

Cathy Jamieson

72


Clause  5,  page  16,  line  7,  at end insert—

‘(5)
The FCA must, so far as is compatible with acting in a way which advances its

operational objectives, discharge its general functions in a way which promotes

the growth and development of social finance and social investment.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

54


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

‘(c)
the ease with which consumers can have access to financial services and

products which are affordable and appropriate to their needs’.

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.’.

Mark Durkan

85


Clause  5,  page  16,  line  41,  after ‘is’, insert ‘intelligible to them, appropriately

presented’.

Public Bill Committee: 21 February 2012
30

Financial Services Bill, continued

Chris Leslie

50


Clause  5,  page  16,  line  41,  at end insert ‘, legible and in plain and intelligible

terms;’.

Chris Leslie

Cathy Jamieson

53


Clause  5,  page  16,  line  41,  at end insert—

‘(d)
the ability of consumers to access financial services’.

Chris Leslie

49


Clause  5,  page  16,  line  45,  leave out ‘level’ and insert ‘fiduciary duty’.

Chris Leslie

44


Clause  5,  page  17,  line  2,  at end insert—

‘(f)
the general principle that firms or advisers must act honestly, fairly and

professionally in the best interests of their customers.’.

Chris Leslie

48


Clause  5,  page  17,  line  2,  at end insert—

‘(ea)
the general principle that regulated entities engaging in discretionary

asset management will ordinarily owe fiduciary duty to their clients.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

55


Clause  5,  page  17,  line  27,  after ‘services’, insert ‘and products’.

Mark Durkan

84


Clause  5,  page  17,  line  31,  at end insert—

‘(aa)
the ease with which consumers, in all parts of the UK, can identify and

obtain services which are appropriate to their needs and represent good

value for money.’.

Chris Leslie

Cathy Jamieson

41

Clause  5,  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.’.

Chris Leslie

Cathy Jamieson

56


Clause  5,  page  20,  line  21,  after ‘PRA.’, insert—

Public Bill Committee: 21 February 2012
31

Financial Services Bill, continued

‘Coordination with the Financial Reporting Council

1KA
The FCA’s duty to co-ordinate with Financial Reporting Council (FRC)

(1)
The FCA must co-ordinate with the FRC with a view to promoting—

(a)
understanding and application of the principles of the UK Stewardship

Code by relevant authorised persons,

(b)
transparency regarding the approach to the Stewardship Code taken by

relevant authorised persons, and

(c)
high standards of responsible ownership, including in relation to the

management of environmental, social and governance (ESG) risks and

opportunities.’.

Chris Leslie

47


Clause  5,  page  21,  line  20,  at end insert—

‘(6)
In making the appointments, the FCA must have regard to the desirability of

ensuring the representation of practitioners carrying on a range of regulated

activities.’.

Chris Leslie

46


Clause  5,  page  22,  line  37,  at end insert ‘in making the appointments, the FCA

must have regard to the desirability of ensuring the representation of consumers of a range

of financial products from across all parts of the United Kingdom and from a range of

income levels.’.

Chris Leslie

Cathy Jamieson

73


Clause  5,  page  22,  line  44,  at end insert—

‘1R
The Social Investment Panel

(1)
Arrangements under section 1M must include the establishment and maintenance

of a panel of persons (to be known as “the Social Invesment Panel”) to represent

the interests of organisations which specialise wholly or mainly in social finance

or social investment.

(2)
The FCA must appoint one of the members of the Social Investment Panel to be

its chair.

(3)
The Treasury’s approval is required for the appointment or dismissal of the chair.

(4)
The FCA must appoint to the Social Investment Panel such—

(a)
individuals who represent organisations carrying out social finance

activity, and

(b)
individuals who represent social sector organisations receiving social

investment, as it considers appropriate.

(5)
The FCA may appoint to the Social Investment Panel such other persons as it

considers appropriate.

(6)
In making the appointments, the FCA must have regard to the desirability of

ensuring the representation of a range of different forms of social sector

organisations.’.

Public Bill Committee: 21 February 2012
32

Financial Services Bill, continued

Chris Leslie

45


Clause  5,  page  23,  line  4,  leave out from ‘must’ to ‘responses’ in line 5 and insert

‘publish’.

Chris Leslie

Cathy Jamieson

57


Clause  5,  page  24,  line  27,  at end insert—

‘(a)
The PRA must, so far as is compatible with its general and insurance

objectives, discharge its general functions in a way which promotes

competition’.

Chris Leslie

Cathy Jamieson

58


Clause  5,  page  24,  line  34,  at end insert—

‘(c)
seeking to minimise, as far as possible, the costs to the FSCS or the use

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

industry’.

Chris Leslie

Cathy Jamieson

Mark Durkan

59


Clause  5,  page  27,  line  6,  at end insert ‘and consumers’.

Chris Leslie

Cathy Jamieson

Mark Durkan

60


Clause  5,  page  27,  line  9,  after ‘consulting’, insert ‘consumers and’.

Chris Leslie

Cathy Jamieson

74


Clause  5,  page  27,  line  10,  after ‘persons’, insert ‘or the public’.

Chris Leslie

Cathy Jamieson

61


Clause  5,  page  27,  line  12,  after ‘2G’, insert—

‘(a)
When undertaking a consultation, the PRA 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

62


Clause  5,  page  27,  line  13,  leave out from ‘arrangements’ to end of line 14 and

insert ‘must include the maintenance and consultation of those panels established under

sections 1N, 1O, 1P and 1Q’.

Public Bill Committee: 21 February 2012
33

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

63


Clause  5,  page  27,  line  16,  after ‘section’, insert ‘and must report annually on its

consultation activities.’.

Mark Durkan

83


Clause  5,  page  27,  line  19,  at end insert ‘and by the Consumer Panel’.

Chris Leslie

Cathy Jamieson

75


Clause  5,  page  27,  line  26,  at end insert ‘and shall inform the Treasury Select

Committee of the House of Commons of the nature of and arrangements for the review.’.

Chris Leslie

Cathy Jamieson

76


Clause  5,  page  29,  line  7,  after ‘consumers’, insert ‘to act honestly, fairly and

professionally’.

Mark Durkan

82


Clause  5,  page  29,  line  7,  leave out ‘in relation to compliance with these

requirements’ and insert ‘include responsibility for their decisions and compliance with

those requirements’.

Chris Leslie

Cathy Jamieson

Mark Durkan

64


Clause  5,  page  29,  line  15,  at end insert—

‘(g)
the principle that, where appropriate, authorised persons should have a

fiduciary duty towards the consumers who are their clients’.

Chris Leslie

Cathy Jamieson

65


Clause  5,  page  29,  line  23,  at end insert ‘, including but not limited to, the UK

Corporate Governance Code’.

Chris Leslie

Cathy Jamieson

77


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

‘(d)
that the regulators coordinate in such a manner as to minimise

unnecessary additional expenses that might be incurred by virtue of the

separate administration of the FCA and the PRA, and to maximise any

common administrative savings achievable through close coordination.’.

Public Bill Committee: 21 February 2012
34

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

78


Clause  5,  page  31,  line  24,  at end insert—

‘(8A)
The memorandum shall contain an estimate of the additional annual costs

involved in the administration of the FCA and PRA when compared with the

estimated costs of the administration of the Financial Services Authority.’.

Chris Leslie

Cathy Jamieson

66


Clause  5,  page  32,  line  5,  at end insert ‘(by reason of its consumer protection or

competition objectives)’.

Chris Leslie

Cathy Jamieson

67


Clause  5,  page  32,  line  11,  at end insert—

‘(9)
In exercising its functions under this section, the PRA must make and maintain

effective arrangements for consulting the panel established under section 1Q,

consumers, or where appropriate, persons appearing to represent the interests of

consumers’.

Chris Leslie

Cathy Jamieson

79


Clause  5,  page  34,  line  20,  after ‘PRA’, insert ‘and the Treasury’.

Chris Leslie

Cathy Jamieson

80


Clause  5,  page  37,  line  34,  after ‘supply’, insert ‘and consumption’.

Chris Leslie

Cathy Jamieson

81


Clause  5,  page  37,  line  42,  at end insert ‘particularly to those member of the public

on lower incomes.’.

Chris Leslie

43


Schedule  3,  page  174,  line  44,  leave out from ‘expenses’ to end of line 46 and insert

‘to the Bank of England in respect of the services of the Bank’s Deputy Governor for

prudential regulation as a member.’.

Chris Leslie

Cathy Jamieson

42


Schedule  3,  page  175,  leave out lines 16 to 21.



© Parliamentary copyright	Revised 21 February 2012