House of Commons Public Bill Committee Proceedings

Session 2010 - 12
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Other Bills before Parliament

45

House of Commons

Thursday 22 March 2012

Public Bill Committee Proceedings

Financial Services Bill

[Sixteenth Sitting]

Clause 79 Agreed to on division.

Mark Hoban

Agreed to  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’.

Clause, as amended, Agreed to.

Clauses 81 to 90 Agreed to.

Schedule 17 Agreed to.

Clauses 91 to 94 Agreed to.

Mark Hoban

Agreed to  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;

Public Bill Committee Proceedings: 22 March 2012
46

Financial Services Bill, continued

(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

Agreed to  120

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

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

Mark Hoban

Agreed to  121

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

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

Mark Hoban

Agreed to  122

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

‘substitute “Part 4A”’.

Mark Hoban

Agreed to  113

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’.

Schedule, as amended, Agreed to.

Schedule 19 Agreed to.

Clauses 95 to 99 Agreed to.

Mark Hoban

Agreed to  114

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—

Public Bill Committee Proceedings: 22 March 2012
47

Financial Services Bill, continued

(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.’.

Schedule, as amended, Agreed to.

Schedule 21 Agreed to.

Clauses 100 to 103 Agreed to.

NEW CLAUSES

Debt management fees

Chris Leslie

Cathy Jamieson

Mark Durkan

Yvonne Fovargue

Negatived on division  NC1

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.’.

Public Bill Committee Proceedings: 22 March 2012
48

Financial Services Bill, continued

Depositor preference in insolvency

Chris Leslie

Cathy Jamieson

Negatived on division  NC2

To move the following Clause:—

‘The Treasury shall bring forward regulations to ensure FSCS insured deposits

are moved above other unsecured creditors and above floating charge holders in

the creditor hierarchy in the event of insolvency or any imposition of losses in

resolution.’.

Building Society Investors Special Provisions: Members or depositors dying

Chris Leslie

Cathy Jamieson

Not called  NC3

To move the following Clause:—

‘(1)
Schedule 7 of the Building Societies Act 1986 is amended as follows:

“(2)
In paragraph 1(1) for “£5,000” substitute “£15,000” and in paragraph

1(4) for “£5,000” substitute “£15,000”.’.

Mortgage rate warnings

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  NC4

To move the following Clause:—

‘The Treasury shall bring forward recommendations within six months of Royal

Assent of this Act regarding requirements for mortgage lenders to forewarn

existing customers about potential interest rate changes on the affordability of

their mortgage repayments.’.

Public Bill Committee Proceedings: 22 March 2012
49

Financial Services Bill, continued

Human rights and sustainable development reporting

Teresa Pearce

Lisa Nandy

Not called  NC5

To move the following Clause:—

‘In exercising its functions under Part 6 (Official Listing) of the Financial

Services and Markets Act 2000, the FCA must require applicants to report on the

human rights and sustainable development impacts of their activities in all

countries in which they operate.’.

Bill, as amended, to be reported.



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