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| Thursday 23 February 2012 |
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| New Amendments handed in are marked thus  |
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| Amendments which will comply with the required notice period at their next appearance
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| | The Amendments have been arranged in accordance with the Order of the |
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| | Committee [21 February 2012]. |
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| | Amendment (No. 9) proposed, in page 3, line 14, to leave out the word ‘4’ and insert |
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| | the word ‘6’.—(Chris Leslie). |
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| | Question proposed, That the Amendment be made. |
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| Clause 3, page 3, line 24, after ‘functions’, insert ‘and must have regard to the |
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| desirability of ensuring a broad representation of practitioners and consumers in the UK |
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| financial services sector.’. |
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| Clause 3, page 3, line 27, at end insert— |
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| | ‘(c) | allow sufficient time for the Treasury Select Committee to hold |
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| | appointment hearings with candidates to be appointed under (1)(e) before |
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| | their appointment to the Committee.’. |
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| Clause 3, page 3, line 28, leave out ‘procedures’ and insert ‘activities’. |
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| Clause 3, page 3, line 31, leave out ‘sub-committee’ and insert ‘committee’. |
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| Clause 3, page 3, line 34, after ‘functions’, insert ‘having regard to the |
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| Government’s growth, employment and other economic objectives’. |
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| Clause 3, page 4, line 3, at end insert— |
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| | ‘(3A) | In the event of the FPC coming into conflict with the MPC in the exercise of its |
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| | objectives, the Governor should inform the Court and the Chancellor to explain |
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| | how the conflict will be resolved.’. |
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| Clause 3, page 5, line 16, leave out ‘operational’. |
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| Clause 3, page 6, line 7, at end insert— |
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| | ‘(1A) | The Financial Policy Committee may give a direction to the FCA or the PRA |
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| | requiring the regulator to exercise its functions so as to ensure the |
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| | implementation, by or in relation to a specified class of regulated persons, of a |
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| | disclosure of their leverage ratio, as defined in the Basel III agreement, as part of |
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| | their regular reporting not later than the beginning of 2013.’. |
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| Clause 3, page 6, line 27, leave out from ‘may’ to first ‘the’ in line 29 and insert |
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| Clause 3, page 7, line 40, after ‘Committee’, insert ‘and the public’. |
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| Clause 3, page 7, line 42, after ‘Committee’, insert ‘and/or the public’. |
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| Clause 3, page 7, line 43, at end insert— |
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| | ‘(c) | where an order is made under subsection 2(b) above, the reasons for not |
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| | consulting the Committee and/or the public shall be subject to scrutiny |
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| | by the Treasury Committee.’. |
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| Clause 3, page 8, line 22, at end insert ‘on the Bank of England website.’. |
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| Clause 3, page 8, line 32, at end insert— |
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| | (a) | if the Treasury considers it appropriate to proceed with the making of an |
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| | order under section 9K, the Treasury may lay before Parliament— |
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| | (ii) | an explanatory document, |
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| | (b) | the explanatory document must— |
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| | (i) | introduce and give reasons for the order, |
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| | (ii) | explain why the Treasury considers that the order serves the |
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| | purpose in section 9K, and |
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| | (iii) | be accompanied by a copy of any representations received from |
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| | (c) | the Treasury may not act under subsection (1A)(a) before the end of the |
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| | period of 12 weeks beginning with the day on which the consultation |
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| | began, unless the order is made in accordance with subsection (2), |
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| | (d) | subject as follows, if after the expiry of the 40-day period the draft order |
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| | laid under subsection (1A)(a) is approved by a resolution of each House |
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| | of Parliament, the Minister may make an order in the terms of the draft |
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| | (e) | the procedure in subsections (1A)(f) to (1A)(i) shall apply to the draft |
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| | order instead of the procedure in subsection (1A)(d) if— |
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| | (i) | either House of Parliament so resolves within the 30-day period, |
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| | (ii) | a committee of either House charged with reporting on the draft |
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| | order so recommends within the 30-day period and the House to |
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| | which the recommendation is made does not by resolution reject |
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| | the recommendation within that period, |
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| | (f) | the Minister must have regard to— |
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| | (ii) | any resolutions of either House of Parliament, and |
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| | (iii) | any recommendations of a committee of either House of |
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| | Parliament charged with reporting on the draft order, made |
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| | during the 60-day period with regard to the draft order, |
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| | (g) | if after the expiry of the 60-day period the draft order is approved by a |
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| | resolution of each House of Parliament, the Minister may make an order |
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| | in the terms of the draft order, |
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| | (h) | if after the expiry of the 60-day period the Minister wishes to proceed |
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| | with the draft order but with material changes, the Minister may lay |
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| | (i) | a revised draft order, and |
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| | (ii) | a statement giving a summary of the changes proposed, |
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| | (i) | if the revised draft order is approved by a resolution of each House of |
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| | Parliament, the Minister may make an order in the terms of the revised |
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| | (j) | for the purposes of this section an order is made in the terms of a draft |
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| | order or revised draft order if it contains no material changes to its |
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| | (k) | in this section, references to the “30-day”, “40-day” and “60-day” |
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| | periods in relation to any draft order are to the periods of 30, 40 and 60 |
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| | days beginning with the day on which the draft order was laid before |
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| | (l) | for the purposes of subsection (1A)(k) no account is to be taken of any |
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| | time during with Parliament is dissolved or prorogued or during which |
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| | either House is adjourned for more than four days.’. |
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| Clause 3, page 9, line 13, leave out lines 13 to 17. |
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| Clause 3, page 9, line 31, at end insert— |
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| | ‘(2A) | The FPC must carry out and complete a review of the definition of regulated |
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| | persons and the scope of exemptions permitted under FSMA 2000 to consider |
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| | whether the scope of exemptions is appropriate. |
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| | (2B) | The FPC must make recommendations under section (2A)— |
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| | (a) | before the end of the period of 30 days beginning with the day on which |
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| | this section comes into force, and |
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| | (b) | at least once in every calendar year following that in which the first |
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| | recommendations are made.’. |
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| Clause 3, page 11, line 12, at end insert ‘but always on the Bank of England |
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| Clause 3, page 11, line 35, leave out ‘two’ and insert ‘four’. |
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| Clause 3, page 11, line 37, after ‘system’, insert ‘including both the most likely |
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| outcome and a range of reasonably possible scenarios.’. |
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| Clause 3, page 12, line 2, at end insert— |
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| | ‘(f) | an assessment of the impact of each macro-prudential measure on |
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| | employment and economic growth.’. |
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| Clause 3, page 12, line 9, at end insert— |
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| | ‘(c) | an assessment of the state of financial stability against early warning |
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| | indicators and report against the effectiveness of the macro-prudential |
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| Clause 3, page 12, line 9, at end insert— |
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| | ‘(c) | an assessment of the impact of the Committee’s measures on the |
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| | functioning of financial markets and the wider economy.’. |
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| Clause 3, page 12, line 23, at end insert ‘but always on the Bank of England |
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| Clause 3, page 12, line 35, at end insert ‘but always on the HM Treasury website.’. |
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| Schedule 1, page 168, line 11, at end insert ‘but shall not exceed the terms and |
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| conditions and remuneration arrangements available to external members of the Monetary |
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| Schedule 1, page 169, leave out lines 35 to 37. |
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| Schedule 1, page 170, line 42, at end insert— |
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| | ‘Scottish Parliament (Disqualification) Order 2010 |
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| | 6 | In Part 1 of the Schedule to the Scottish Parliament (Disqualification) Order |
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| | 2010, at the appropriate place insert “Member of the Financial Policy |
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| | Committee of the Bank of England appointed under 9B(1)(d) or (e) of the Bank |
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| | National Assembly for Wales (Disqualification) Order 2010 |
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| | 7 | In Part 1 of the Schedule to the National Assembly for Wales |
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| | (Disqualification) Order 2010, at the appropriate place insert “Member of the |
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| | Financial Policy Committee of the Bank of England appointed under 9B(1)(d) |
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| | or (e) of the Bank of England Act 1998.”.’. |
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| Clause 4, page 14, line 36, at end add—
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| ‘Within a year of commencement of this Act the Bank of England shall publish a review |
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| of the effectiveness of coordination by the regulators of the exercise of their functions |
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| relating to membership of, and their relations with, the European Supervisory Authorities |
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| (namely, the European Banking Authority, the European Insurance and Occupational |
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| Pensions Authority and the European Securities and Markets Authority), and their |
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| relations with other regulatory bodies outside the United Kingdom.’. |
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| Schedule 2, page 171, leave out lines 26 to 28. |
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| Schedule 2, page 173, line 17, at end add— |
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| | 5 | Within a year of Royal Assent for this Act the Bank of England shall publish |
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| | a review of the remuneration and pension fund arrangements for senior |
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| | executives and those appointed to serve on the committees and sub- |
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| | committees of the Bank.’. |
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| Clause 5, page 15, line 34, at end insert ‘, fairly, efficiently and transparently.’. |
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| Clause 5, page 16, line 7, at end insert— |
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| | ‘(4A) | As part of the FCA’s consumer and integrity objectives, the FCA will raise |
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| | standards of professionalism in financial services by mandating a training and |
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| | competence regime. This must— |
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| | (a) | apply to all approved persons exercising controlled functions, regardless |
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| | (b) | specify minimum thresholds of competence including integrity, |
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| | professional qualifications, continuous professional development and |
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| | adherence to a recognised code of conduct, |
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| | (c) | be evidenced by individuals holding an annual validation of |
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| Clause 5, page 16, line 7, at end insert— |
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| | ‘(5) | The FCA must, so far as is compatible with acting in a way which advances its |
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| | operational objectives, discharge its general functions in a way which promotes |
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| | the growth and development of social finance and social investment.’. |
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| Clause 5, page 16, line 15, at end insert— |
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| | ‘(c) | the ease with which consumers can have access to financial services and |
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| | products which are affordable and appropriate to their needs’. |
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