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Public Bill Committee: 23 February 2012                  

59

 

Financial Services Bill, continued

 
 

      (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.”.’.

 

Chris Leslie

 

115

 

Parliamentary Star    

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

 

‘Claims management companies

 

23C      

Provision of services consisting of advice or services in respect of claims for

 

compensation, restitution, repayment or any other remedy for loss or damage,

 

or in respect of some other obligation.’.

 

Yvonne Fovargue

 

Chris Leslie

 

Cathy Jamieson

 

90

 

Parliamentary Star - white    

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.”.’.

 


 

Mark Hoban

 

92

 

Parliamentary Star - white    

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

 

Mark Hoban

 

93

 

Parliamentary Star - white    

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

 

‘( )    

section 103(1).’

 



 
 

Public Bill Committee: 23 February 2012                  

60

 

Financial Services Bill, continued

 
 

Mark Hoban

 

94

 

Parliamentary Star - white    

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

 

‘( )    

a decision to take action under section 249;’.

 


 

Chris Leslie

 

Cathy Jamieson

 

87

 

Parliamentary Star - white    

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

 

‘(2A)    

The FCA may make rules or apply a sanction to authorised persons who offer

 

credit on terms that the FCA 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.’.

 

Mark Hoban

 

95

 

Parliamentary Star - white    

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

 

166A.’.

 

Mark Hoban

 

96

 

Parliamentary Star - white    

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

 


 

Mark Hoban

 

103

 

Parliamentary Star - white    

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

 

‘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”.’.

 

Mark Hoban

 

104

 

Parliamentary Star - white    

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)”.’.

 

Mark Hoban

 

105

 

Parliamentary Star - white    

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


 
 

Public Bill Committee: 23 February 2012                  

61

 

Financial Services Bill, continued

 
 

Mark Hoban

 

106

 

Parliamentary Star - white    

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),”’.

 

Mark Hoban

 

107

 

Parliamentary Star - white    

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”.’.

 

Mark Hoban

 

108

 

Parliamentary Star - white    

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

 

(b)    

’.

 

Mark Hoban

 

109

 

Parliamentary Star - white    

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)”.’.

 


 

Mark Hoban

 

110

 

Parliamentary Star - white    

Schedule  9,  page  231,  line  17,  after ‘345B’ insert ‘(whether as a result of section

 

345(2) or 345A(3) or section 249(1))’.

 



 
 

Public Bill Committee: 23 February 2012                  

62

 

Financial Services Bill, continued

 
 

Mark Hoban

 

97

 

Parliamentary Star - white    

Clause  37,  page  122,  line  49,  leave out ‘PRA-authorised persons’ and insert ‘the

 

Society, and the members of the Society, taken together’.

 


 

Chris Leslie

 

Cathy Jamieson

 

88

 

Parliamentary Star - white    

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

 


 

‘In section 165(A) after subsection (10) at end 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—


 
 

Public Bill Committee: 23 February 2012                  

63

 

Financial Services Bill, continued

 
 

(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.

 

(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.”.’.

 


 

Mark Hoban

 

111

 

Parliamentary Star - white    

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

 


 

Mark Hoban

 

98

 

Parliamentary Star - white    

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

 

Mark Hoban

 

99

 

Parliamentary Star - white    

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

 


 

Mark Hoban

 

100

 

Parliamentary Star - white    

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

 


 

Mark Hoban

 

101

 

Parliamentary Star - white    

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

 

insert ‘or 312J of FSMA 2000,


 
 

Public Bill Committee: 23 February 2012                  

64

 

Financial Services Bill, continued

 
 

( )    

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

 

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

 


 

Mark Hoban

 

112

 

Parliamentary Star - white    

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”’.

 

Mark Hoban

 

120

 

Parliamentary Star    

Schedule  18,  page  284,  line  43,  at end insert—

 

‘( )    

in the heading, for “Authority’s” substitute “FCA’s”.’.

 

Mark Hoban

 

121

 

Parliamentary Star    

Schedule  18,  page  285,  line  18,  leave out ‘“section 44 or 45 of a Part IV

 

permission”’ and insert ‘paragraph (a)’.

 

Mark Hoban

 

122

 

Parliamentary Star    

Schedule  18,  page  285,  line  26,  leave out from ‘Part IV’ to end of line 27 and insert

 

‘substitute “Part 4A”’.

 

Mark Hoban

 

113

 

Parliamentary Star - white    

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’.

 



 
 

Public Bill Committee: 23 February 2012                  

65

 

Financial Services Bill, continued

 
 

Mark Hoban

 

114

 

Parliamentary Star - white    

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

 

(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.’.

 


 

NEW CLAUSE

 

Debt management fees

 

Chris Leslie

 

Cathy Jamieson

 

NC1

 

Parliamentary Star - white    

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.’.

 

 

Order of the House [6 FEBRUARY]

 

That the following provisions shall apply to the Financial Services Bill—

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.


 
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Revised 23 February 2012