House of Commons Public Bill Committee Proceedings

Session 2010 - 12
Internet Publications
Other Bills before Parliament

7

House of Commons

Tuesday 28 February 2012

Public Bill Committee Proceedings

Financial Services Bill

[Fifth and Sixth Sittings]

Chris Leslie

Cathy Jamieson

Mark Durkan

Withdrawn  29

Clause  3,  page  6,  line  27,  leave out from ‘may’ to first ‘the’ in line 29 and insert

‘require or recommend’.

Chris Leslie

Cathy Jamieson

Withdrawn  34

Clause  3,  page  7,  line  40,  after ‘Committee’, insert ‘and the public’.

Chris Leslie

Cathy Jamieson

Not called  35

Clause  3,  page  7,  line  42,  after ‘Committee’, insert ‘and/or the public’.

Chris Leslie

Cathy Jamieson

Not called  36

Clause  3,  page  7,  line  43,  at end insert—

‘(c)
where an order is made under subsection 2(b) above, the reasons for not

consulting the Committee and/or the public shall be subject to scrutiny

by the Treasury Committee.’.

Chris Leslie

Cathy Jamieson

Withdrawn  16

Clause  3,  page  8,  line  22,  at end insert ‘on the Bank of England website.’.

Chris Leslie

Cathy Jamieson

Negatived on division  15

Clause  3,  page  8,  line  32,  at end insert—

‘(1A)

(a)
if the Treasury considers it appropriate to proceed with the making of an

order under section 9K, the Treasury may lay before Parliament—

Public Bill Committee Proceedings: 28 February 2012
8

Financial Services Bill, continued

(i)
a draft order, and

(ii)
an explanatory document,

(b)
the explanatory document must—

(i)
introduce and give reasons for the order,

(ii)
explain why the Treasury considers that the order serves the

purpose in section 9K, and

(iii)
be accompanied by a copy of any representations received from

the FPC or the Governor,

(c)
the Treasury may not act under subsection (1A)(a) before the end of the

period of 12 weeks beginning with the day on which the consultation

began, unless the order is made in accordance with subsection (2),

(d)
subject as follows, if after the expiry of the 40-day period the draft order

laid under subsection (1A)(a) is approved by a resolution of each House

of Parliament, the Minister may make an order in the terms of the draft

order,

(e)
the procedure in subsections (1A)(f) to (1A)(i) shall apply to the draft

order instead of the procedure in subsection (1A)(d) if—

(i)
either House of Parliament so resolves within the 30-day period,

or

(ii)
a committee of either House charged with reporting on the draft

order so recommends within the 30-day period and the House to

which the recommendation is made does not by resolution reject

the recommendation within that period,

(f)
the Minister must have regard to—

(i)
any representations,

(ii)
any resolutions of either House of Parliament, and

(iii)
any recommendations of a committee of either House of

Parliament charged with reporting on the draft order, made

during the 60-day period with regard to the draft order,

(g)
if after the expiry of the 60-day period the draft order is approved by a

resolution of each House of Parliament, the Minister may make an order

in the terms of the draft order,

(h)
if after the expiry of the 60-day period the Minister wishes to proceed

with the draft order but with material changes, the Minister may lay

before Parliament—

(i)
a revised draft order, and

(ii)
a statement giving a summary of the changes proposed,

(i)
if the revised draft order is approved by a resolution of each House of

Parliament, the Minister may make an order in the terms of the revised

draft order,

(j)
for the purposes of this section an order is made in the terms of a draft

order or revised draft order if it contains no material changes to its

provisions,

(k)
in this section, references to the “30-day”, “40-day” and “60-day”

periods in relation to any draft order are to the periods of 30, 40 and 60

days beginning with the day on which the draft order was laid before

Parliament,

(l)
for the purposes of subsection (1A)(k) no account is to be taken of any

time during with Parliament is dissolved or prorogued or during which

either House is adjourned for more than four days.’.

Public Bill Committee Proceedings: 28 February 2012
9

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Withdrawn  17

Clause  3,  page  9,  line  13,  leave out lines 13 to 17.

Chris Leslie

Cathy Jamieson

Mark Durkan

Withdrawn  14

Clause  3,  page  9,  line  31,  at end insert—

‘(2A)
The FPC must carry out and complete a review of the definition of regulated

persons and the scope of exemptions permitted under FSMA 2000 to consider

whether the scope of exemptions is appropriate.

(2B)
The FPC must make recommendations under section (2A)—

(a)
before the end of the period of 30 days beginning with the day on which

this section comes into force, and

(b)
at least once in every calendar year following that in which the first

recommendations are made.’.

Chris Leslie

Cathy Jamieson

Not called  18

Clause  3,  page  11,  line  12,  at end insert ‘but always on the Bank of England

website.’.

Chris Leslie

Cathy Jamieson

Withdrawn  33

Clause  3,  page  11,  line  35,  leave out ‘two’ and insert ‘four’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  32

Clause  3,  page  11,  line  37,  after ‘system’, insert ‘including both the most likely

outcome and a range of reasonably possible scenarios.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Negatived on division  19

Clause  3,  page  12,  line  2,  at end insert—

‘(f)
an assessment of the impact of each macro-prudential measure on

employment and economic growth.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  20

Clause  3,  page  12,  line  9,  at end insert—

‘(c)
an assessment of the state of financial stability against early warning

indicators and report against the effectiveness of the macro-prudential

measures deployed.’.

Public Bill Committee Proceedings: 28 February 2012
10

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  31

Clause  3,  page  12,  line  9,  at end insert—

‘(c)
an assessment of the impact of the Committee’s measures on the

functioning of financial markets and the wider economy.’.

Chris Leslie

Cathy Jamieson

Not called  21

Clause  3,  page  12,  line  23,  at end insert ‘but always on the Bank of England

website.’.

Chris Leslie

Cathy Jamieson

Not called  22

Clause  3,  page  12,  line  35,  at end insert ‘but always on the HM Treasury website.’.

Clause Agreed to on division.

Chris Leslie

Cathy Jamieson

Mark Durkan

Withdrawn  24

Schedule  1,  page  168,  line  11,  at end insert ‘but shall not exceed the terms and

conditions and remuneration arrangements available to external members of the Monetary

Policy Committee.’.

Chris Leslie

Cathy Jamieson

Withdrawn  25

Schedule  1,  page  169,  leave out lines 35 to 37.

Chris Leslie

Cathy Jamieson

Withdrawn  26

Schedule  1,  page  170,  line  42,  at end insert—

‘Scottish Parliament (Disqualification) Order 2010

6
In Part 1 of the Schedule to the Scottish Parliament (Disqualification) Order

2010, at the appropriate place insert “Member of the Financial Policy

Committee of the Bank of England appointed under 9B(1)(d) or (e) of the Bank

of England Act 1998.”

National Assembly for Wales (Disqualification) Order 2010

7
In Part 1 of the Schedule to the National Assembly for Wales

(Disqualification) Order 2010, at the appropriate place insert “Member of the

Financial Policy Committee of the Bank of England appointed under 9B(1)(d)

or (e) of the Bank of England Act 1998.”.’.

Public Bill Committee Proceedings: 28 February 2012
11

Financial Services Bill, continued

Schedule Agreed to.

Chris Leslie

Cathy Jamieson

Negatived on division  23

Clause  4,  page  14,  line  36,  at end add—

‘Within a year of commencement of this Act the Bank of England shall publish a review

of the effectiveness of coordination by the regulators of the exercise of their functions

relating to membership of, and their relations with, the European Supervisory Authorities

(namely, the European Banking Authority, the European Insurance and Occupational

Pensions Authority and the European Securities and Markets Authority), and their

relations with other regulatory bodies outside the United Kingdom.’.

Clause Agreed to.

Chris Leslie

Cathy Jamieson

Withdrawn  27

Schedule  2,  page  171,  leave out lines 26 to 28.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  28

Schedule  2,  page  173,  line  17,  at end add—

‘Review of remuneration

5
Within a year of Royal Assent for this Act the Bank of England shall publish

a review of the remuneration and pension fund arrangements for senior

executives and those appointed to serve on the committees and sub-

committees of the Bank.’.

Schedule Agreed to.

[Adjourned until Thursday at 9.30 am



© Parliamentary copyright	Revised 29 February 2012