Session 2010 - 12
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Other Bills before Parliament


 
 

Public Bill Committee: 23 February 2012                  

52

 

Financial Services Bill, continued

 
 

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’.

 

Chris Leslie

 

50

 

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

 

terms;’.

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

53

 

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

 

‘(d)    

the ability of consumers to access financial services’.

 

Chris Leslie

 

Mark Durkan

 

49

 

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

 

Chris Leslie

 

Mark Durkan

 

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

 

Mark Durkan

 

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’.


 
 

Public Bill Committee: 23 February 2012                  

53

 

Financial Services Bill, continued

 
 

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—

 

‘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


 
 

Public Bill Committee: 23 February 2012                  

54

 

Financial Services Bill, continued

 
 

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.’.

 

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’.


 
 

Public Bill Committee: 23 February 2012                  

55

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Cathy Jamieson

 

61

 

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

 

‘(1A)    

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’.

 

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’.


 
 

Public Bill Committee: 23 February 2012                  

56

 

Financial Services Bill, continued

 
 

Chris Leslie

 

117

 

Parliamentary Star    

Clause  5,  page  19,  line  3,  at end insert—

 

‘(j)    

by claims management companies who provide services to persons

 

covering litigation, or claims under regulation schemes or voluntary

 

arrangements.’.

 

Chris Leslie

 

118

 

Parliamentary Star    

Clause  5,  page  19,  line  3,  at end insert—

 

‘(j)    

by debt management companies or debt adjustment services companies.’.

 

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.’.

 

Mark Durkan

 

86

 

Parliamentary Star - white    

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

 

116

 

Parliamentary Star    

Clause  5,  page  30,  line  4,  at end insert—

 

‘(c)    

the FCA and PRA shall publish guidance explaining those circumstances

 

covered by paragraphs (a) and (b) where the duty to co-ordinate shall not

 

apply.’.

 

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.’.


 
 

Public Bill Committee: 23 February 2012                  

57

 

Financial Services Bill, continued

 
 

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.’.

 

Mark Hoban

 

101

 

Parliamentary Star - white    

Schedule  3,  page  175,  line  39,  leave out ‘312J or 345D, or’ and insert ‘or 312J2

 

( )    

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

 

249(1)), or’.

 

Chris Leslie

 

Cathy Jamieson

 

42

 

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


 
 

Public Bill Committee: 23 February 2012                  

58

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

69

 

Schedule  3,  page  176,  line  6,  at end insert—

 

Publication of minutes and agendas

 

10  (1)  

The FCA shall make arrangements to publish, unless publication would be

 

inappropriate, the agendas and minutes of the meetings of its committees and

 

sub-committees.

 

      (2)  

When a meeting of any committee or sub-committee of the FCA makes a

 

decision upon any matter of public policy, the minutes of the meeting or

 

meetings that result in that decision shall summarise the considerations which

 

were taken into account, both for and against the decision.’.

 

Chris Leslie

 

Cathy Jamieson

 

30

 

Schedule  3,  page  177,  line  26,  at end insert ‘on the FCA website’.

 

Chris Leslie

 

Cathy Jamieson

 

89

 

Parliamentary Star - white    

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

 

Chris Leslie

 

Cathy Jamieson

 

70

 

Schedule  3,  page  183,  line  10,  at end insert ‘merit, fairness, openness and’.

 

Chris Leslie

 

Cathy Jamieson

 

71

 

Schedule  3,  page  183,  line  45,  at end insert ‘with the approval of the Treasury’.

 

Mark Hoban

 

119

 

Parliamentary Star    

Schedule  3,  page  184,  line  18,  leave out ‘,318 or 328’ and insert ‘or 318’.

 


 

Yvonne Fovargue

 

Chris Leslie

 

Cathy Jamieson

 

91

 

Parliamentary Star - white    

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.


 
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Revised 23 February 2012