You are here: Parliament home page > Parliamentary business > Business Papers > Public Bills before Parliament > Bill home page

Session 2010 - 12
Internet Publications
Other Bills before Parliament

 
 

13

 

House of Commons

 
 

Thursday 1 March 2012

 

Public Bill Committee Proceedings

 

Financial Services Bill

 

[Seventh and Eighth Sittings]

 

Chris Leslie

 

Mark Durkan

 

Withdrawn  51

 

Clause  5,  page  15,  line  34,  at end insert ‘, fairly, efficiently and transparently.’.

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Withdrawn  52

 

Clause  5,  page  16,  line  7,  at end insert—

 

‘(4A)    

As part of the FCA’s consumer and integrity objectives, the FCA will raise

 

standards of professionalism in financial services by mandating a training and

 

competence regime. This must—

 

(a)    

apply to all approved persons exercising controlled functions, regardless

 

of financial sector,

 

(b)    

specify minimum thresholds of competence including integrity,

 

professional qualifications, continuous professional development and

 

adherence to a recognised code of conduct,

 

(c)    

be evidenced by individuals holding an annual validation of

 

competence.’.

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Negatived on division  72

 

Clause  5,  page  16,  line  7,  at end insert—

 

‘(5)    

The FCA must, so far as is compatible with acting in a way which advances its

 

operational objectives, discharge its general functions in a way which promotes

 

the growth and development of social finance and social investment.’.

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Negatived on division  54

 

Clause  5,  page  16,  line  15,  at end insert—

 
 

Public Bill Committee Proceedings: 1 March 2012            

14

 

Financial Services Bill, continued

 
 

‘(c)    

the ease with which consumers can have access to financial services and

 

products which are affordable and appropriate to their needs’.

 

Chris Leslie

 

Cathy Jamieson

 

Not called  40

 

Clause  5,  page  16,  line  15,  at end insert—

 

‘(c)    

the international competitiveness of the UK markets in financial

 

services.’.

 

Mark Durkan

 

Negatived on division  85

 

Clause  5,  page  16,  line  41,  after ‘is’, insert ‘intelligible to them, appropriately

 

presented’.

 

Chris Leslie

 

Not called  50

 

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

 

terms;’.

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Not called  53

 

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

 

‘(d)    

the ability of consumers to access financial services’.

 

Chris Leslie

 

Mark Durkan

 

Negatived on division  49

 

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

 

Chris Leslie

 

Mark Durkan

 

Not called  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

 

Not called  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

 

Not called  55

 

Clause  5,  page  17,  line  27,  after ‘services’, insert ‘and products’.

 
 

Public Bill Committee Proceedings: 1 March 2012            

15

 

Financial Services Bill, continued

 
 

Mark Durkan

 

Not called  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

 

Not called  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

 

Not called  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

 

Not moved  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.’.

 
 

Public Bill Committee Proceedings: 1 March 2012            

16

 

Financial Services Bill, continued

 
 

Chris Leslie

 

Withdrawn  118

 

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

 

‘(j)    

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

 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Withdrawn  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.’.

 

[Adjourned until Tuesday 6 March at 10.30 am

 
contents
 
© Parliamentary copyright
Revised 2 March 2012