House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Public Bill Committee: 28 February 2012
78

Financial Services Bill, continued

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

Yvonne Fovargue

123

Clause  5,  page  17,  line  35,  at end insert—

‘(3)
In furtherance of the competition objective, the FCA shall publish, maintain and

review a code [The access and choice code] setting out (amongst other things)—

(a)
the approach that the FCA will take to ensure that the market provides

different consumers with access to and choice about products and

services that are suitable for their needs.

(b)
the approach that the FCA will take to ensure that the business conduct

of those providing regulated financial services continues to promote

competition in the interests of different consumers over the life of any

agreement.

(c)
The additional steps that the FCA may take where competition does not

deliver access and choice to suitable products and service for different

consumers.

(4)
The Treasury may by order specify—

(a)
financial needs of different consumers that are to be considered essential;

(b)
the outcomes that are necessary to demonstrate that essential financial

needs of different consumers are met.

(5)
Sections 138L (1)(b) and (2) to (5) and 138K do not apply in relation to rules

made by the FSA if it considers that it is necessary or expedient not to comply

with them for the purpose of achieving an outcome specified in an order under

subsection (4) of this section.

(6)
Transactional banking is an essential financial need for all groups of consumers.

(7)
Where the FCA considers that it is unable to achieve an outcome specified in an

order made under subsection (4), the Treasury may by order confer additional

powers on the FCA or direct obligations on those providing regulated financial

services to ensure that the essential needs of different consumers are met.’.

Chris Leslie

117

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

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

‘(j)
by debt management companies or debt adjustment services companies.’.

Public Bill Committee: 28 February 2012
79

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

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

Mark Durkan

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.’.

Mark Durkan

132


Clause  5,  page  22,  line  17,  after ‘persons’, insert ‘across the United Kingdom’.

Mark Durkan

133


Clause  5,  page  22,  line  18,  after ‘appropriate’, insert ‘, with consideration for

diversity in the composition of the panel’.

Mark Durkan

134


Clause  5,  page  22,  line  36,  after ‘consumers’, insert ‘in all parts of the United

Kingdom’.

Mark Durkan

135


Clause  5,  page  22,  line  37,  after ‘appropriate’, insert ‘, with due consideration for

diversity in the composition of the panel’.

Chris Leslie

Mark Durkan

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.’.

Public Bill Committee: 28 February 2012
80

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

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.’.

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’.

Public Bill Committee: 28 February 2012
81

Financial Services Bill, continued

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—

‘(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’.

Mark Durkan

129


Clause  5,  page  27,  line  19,  at end insert—

‘(1A)
Unless the PRA has established a panel as provided for in section 2K(2) to reflect

consumer interests, it must consider representations from the Consumer Panel

established under section 1Q where such representations relate to the PRA’s

general policies and practices, the co-ordination of the exercise of PRA and FCA

functions as provided for in section 3D(1), or the exercise of the PRA power in

section 3I.’.

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.’.

Public Bill Committee: 28 February 2012
82

Financial Services Bill, continued

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.’.

Mark Durkan

86

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

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.’.

Public Bill Committee: 28 February 2012
83

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.’.

Mark Hoban

124


Clause  5,  page  38,  line  12,  leave out ‘Part 1 of’.

Mark Hoban

125


Clause  5,  page  38,  line  13,  leave out subsection (3).

Public Bill Committee: 28 February 2012
84

Financial Services Bill, continued

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

102

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.

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

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’.



© Parliamentary copyright	Revised 28 February 2012