House of Commons Amendments

Session 2010 - 12
Internet Publications
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


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


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


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

impartial’.

Yvonne Fovargue

Chris Leslie

Cathy Jamieson

128


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


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—



© Parliamentary copyright	Revised 28 February 2012