Session 2010 - 12
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Other Bills before Parliament


 
 

Public Bill Committee: 28 February 2012                  

85

 

Financial Services Bill, continued

 
 

Mark Hoban

 

119

 

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

 


 

Yvonne Fovargue

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

91

 

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.

 

      (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

 

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

 

Mark Durkan

 

90

 

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


 
 

Public Bill Committee: 28 February 2012                  

86

 

Financial Services Bill, continued

 
 

Financial Conduct Authority, after which time a suspension shall not take effect

 

before the end of an appeal period.”.’.

 


 

Mark Hoban

 

92

 

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

 

Mark Hoban

 

93

 

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

 

‘( )    

section 103(1).’

 


 

Mark Hoban

 

94

 

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

 

‘( )    

a decision to take action under section 249;’.

 


 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

87

 

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

 

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

 

166A.’.

 

Mark Hoban

 

96

 

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

 



 
 

Public Bill Committee: 28 February 2012                  

87

 

Financial Services Bill, continued

 
 

Mark Durkan

 

131

 

Parliamentary Star    

Clause  30,  page  117,  line  37,  at end insert—

 

‘(2)    

If a statement is published and further investigation does not result in a penalty

 

the regulator must publish this outcome in a manner the regulator believes is most

 

suitable to bring this to the attention of the public.’.

 


 

Mark Hoban

 

103

 

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

 

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

 

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

 

Mark Hoban

 

106

 

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

 

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)—


 
 

Public Bill Committee: 28 February 2012                  

88

 

Financial Services Bill, continued

 
 

(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

 

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

 

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

 

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

 

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

 

Mark Durkan

 

130

 

Parliamentary Star    

Schedule  9,  page  233,  line  15,  at end insert ‘and the Regulatory Decisions

 

Committee’.

 


 

Mark Hoban

 

97

 

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

 

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

 



 
 

Public Bill Committee: 28 February 2012                  

89

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

88

 

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

 


 

‘In section 165A 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—

 

(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;


 
 

Public Bill Committee: 28 February 2012                  

90

 

Financial Services Bill, continued

 
 

(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.”.’.

 


 

Yvonne Fovargue

 

Chris Leslie

 

Cathy Jamieson

 

127

 

Parliamentary Star    

Clause  40,  page  124,  line  32,  leave out ‘a’ and insert ‘an independent and

 

impartial’.

 

Yvonne Fovargue

 

Chris Leslie

 

Cathy Jamieson

 

128

 

Parliamentary Star    

Clause  40,  page  125,  line  6,  leave out ‘given in section 1G’ and insert ‘any natural

 

person who is acting for purposes which are outside his trade, business, craft or

 

profession’.

 


 

Mark Hoban

 

111

 

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

 


 

Mark Hoban

 

98

 

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

 

Mark Hoban

 

99

 

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

 



 
 

Public Bill Committee: 28 February 2012                  

91

 

Financial Services Bill, continued

 
 

Mark Hoban

 

100

 

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

 


 

Tom Greatrex

 

Chris Leslie

 

126

 

Parliamentary Star    

Clause  67,  page  141,  line  32,  at end insert—

 

‘(3)    

The Treasury may publish the whole, or any part, of the report and may do so in

 

such manner as it considers appropriate.

 

(4)    

The Treasury must prevent publication of any part of the report which it considers

 

may contain material—

 

(a)    

which relates to the affairs of a particular person whose interests would,

 

in the opinion of the Treasury, be seriously prejudiced by publication of

 

the material; or

 

(b)    

the disclosure of which would be incompatible with an international

 

obligation of the United Kingdom.

 

(5)    

The Treasury must lay before each House of Parliament a copy of any report or

 

part of a report published under subsection (3) subject to the provisions of

 

subsection (4).’.

 


 

Mark Hoban

 

101

 

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

 

insert ‘or 312J of FSMA 2000,

 

( )    

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

 

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—


 
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Revised 28 February 2012