House of Commons Amendments

Session 2010 - 12
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Other Bills before Parliament

4203

House of Commons

Notices of Amendments

given on

Monday 16 April 2012

For other Amendment(s) see the following page(s) of Supplement to Votes:

4155-57

Consideration of Bill

Financial Services Bill, As Amended

Power to make further provision about regulation of consumer credit

Mr Chancellor of the Exchequer

NC4

To move the following Clause:—

‘(1)
Subsection (2) applies on or at any time after the making after the passing of this

Act of an order under section 22 of FSMA 2000 which has the effect that an

activity (a “transferred activity”)—

(a)
ceases to be an activity in respect of which a licence under section 21 of

CCA 1974 is required or would be required but for the exemption

conferred by subsection (2), (3) or (4) of that section or paragraph 15(3)

of Schedule 3 to FSMA 2000, and

(b)
becomes a regulated activity for the purposes of FSMA 2000.

(2)
The Treasury may by order do any one or more of the following—

(a)
transfer to the FCA functions of the OFT under any provision of CCA

1974 that remains in force;

(b)
provide that any specified provision of FSMA 2000 which relates to the

powers or duties of the FCA in connection with the failure of any person

to comply with a requirement imposed by or under FSMA 2000 is to

apply, subject to any specified modifications, in connection with the

failure of any person to comply with a requirement imposed by or under

a specified provision of CCA 1974;

(c)
require the FCA to issue a statement of policy in relation to the exercise

of powers conferred on it by virtue of paragraph (b);

(d)
in connection with provision made by virtue of paragraph (b), provide

that failure to comply with a specified provision of CCA 1974 no longer

constitutes an offence or that a person may not be convicted of an offence

under a specified provision of CCA 1974 in respect of an act or omission

in a case where the FCA has exercised specified powers in relation to that

person in respect of that act or omission;

Notices of Amendments: 16 April 2012
4204

Financial Services Bill, continued

(e)
provide for the transfer to the Treasury of any functions under CCA 1974

previously exercisable by the Secretary of State;

(f)
provide that functions of the Secretary of State under CCA 1974 are

exercisable concurrently with the Treasury;

(g)
enable local weights and measures authorities to institute proceedings in

England and Wales for a relevant offence;

(h)
provide that references in a specified enactment to the FCA’s functions

under FSMA 2000 include references to its functions resulting from any

order under this section.

(3)
In subsection (2)(g) “relevant offence” means an offence under FSMA 2000

committed in relation to an activity that is a regulated activity for the purposes of

that Act by virtue of—

(a)
an order made under section 22(1) of that Act in relation to an investment

of a kind falling within paragraph 23 or 23B of Schedule 2 to that Act, or

(b)
an order made under section 22(1A) of that Act.

(4)
On or at any time after the making of an order under section 22 of FSMA 2000 of

the kind mentioned in subsection (1), the Treasury may, if in their opinion it is

desirable to do so having regard to the FCA’s operational objectives (as defined

in section 1B(3) of FSMA 2000) by order—

(a)
exclude the application of any provision of CCA 1974 in relation to a

transferred activity, or

(b)
repeal any provision of CCA 1974 which relates to a transferred activity.

(5)
The additional powers conferred by section 95(2) on a person making an order

under this Act include power for the Treasury, when making an order under this

section—

(a)
to make such consequential provision as the Treasury consider

appropriate,

(b)
to amend any enactment, including any provision of, or made under, this

Act.

(6)
The provisions of this section do not limit—

(a)
the powers conferred by section 98 or by section 22 of FSMA 2000, or

(b)
the powers exercisable under Schedule 21 in connection with the transfer

of functions from the OFT.

(7)
In this section—

“CCA 1974” means the Consumer Credit Act 1974;

“the OFT” means the Office of Fair Trading.’.

Mr Chancellor of the Exchequer

1

Page  34,  line  21  [Clause  5],  leave out ‘considers’ and insert ‘after consulting the

Treasury, decides’.

Mr Chancellor of the Exchequer

2

Page  37,  line  15  [Clause  5],  at end insert—

‘(4A)
The FCA may enter into arrangements with a local weights and measures

authority in England, Wales or Scotland for the provision by the authority to the

FCA of services which relate to activities that are regulated activities by virtue

of—

(a)
an order made under section 22(1) in relation to an investment of a kind

falling within paragraph 23 or 23B of Schedule 2, or

(b)
an order made under section 22(1A).’.

Notices of Amendments: 16 April 2012
4205

Financial Services Bill, continued

Mr Chancellor of the Exchequer

3

Page  37,  line  34  [Clause  5],  leave out ‘the supply of particular’ and insert

‘particular decisions relating to different’.

Mr Chancellor of the Exchequer

4

Page  39,  line  30  [Clause  7],  after ‘25(1)’ insert—

‘(a)
after “22(1)” insert “ or (1A)”, and’.

Mr Chancellor of the Exchequer

5

Page  93,  line  43  [Clause  22],  leave out ‘section 1B(1)’ and insert ‘its duties under

section 1B(1) and (5)(a)’.

Mr Chancellor of the Exchequer

6

Page  95,  line  9  [Clause  22],  leave out from ‘with’ to end of line 10 and insert ‘its

duties under—

(i)
section 2B(1) or, as the case requires, section 2C(1) or 2D(3),

and

(ii)
section 2G, and’.

Mr Chancellor of the Exchequer

7

Page  125  [Clause  40],  leave out line 7 and insert—

‘(4)
Sections 425A and 425B (meaning of “consumers”) apply for the purposes of this

section, but the references to consumers in this section do not include consumers

who are authorised persons.’.

Mr Chancellor of the Exchequer

8

Page  126,  line  16  [Clause  40],  leave out from ‘that’ to end of line 18 and insert—

‘(i)
if the complaint would fall within the compulsory jurisdiction or

the consumer credit jurisdiction, the ombudsman would be likely

to make an award under section 229(2)(a) or give a direction

under section 229(2)(b), or

(ii)
if voluntary jurisdiction rules made for the purposes of section

227 provide for the making of an award against a respondent or

the giving of a direction that a respondent take certain steps in

relation to a complainant, and the complaint would fall within

the voluntary jurisdiction, the ombudsman would be likely to

make such an award or give such a direction.’.

Mr Chancellor of the Exchequer

9

Page  128,  line  30  [Clause  45],  at end insert—

‘( )
omit the definition of “notice of control”;’.

Mr Chancellor of the Exchequer

10

Page  136,  line  22  [Clause  58],  leave out from ‘Bank’ to ‘on’ in line 23 and insert

‘must give the Treasury one or more reports’.

Notices of Amendments: 16 April 2012
4206

Financial Services Bill, continued

Mr Chancellor of the Exchequer

11

Page  164,  line  6  [Clause  96],  at end insert—

‘( )
an order under section [Power to make further provision about regulation

of consumer credit] (power to make further provision about regulation of

consumer credit);’.

Mr Chancellor of the Exchequer

12

Page  169,  line  35  [Schedule  1],  leave out ‘anything done’ and insert ‘any view

expressed’.

Mr Chancellor of the Exchequer

13

Page  238,  line  8  [Schedule  10],  leave out ‘are, or are not, to’ and insert ‘may, or

may not,’.

Mr Chancellor of the Exchequer

14

Page  238,  line  10  [Schedule  10],  leave out ‘are, or are not, to’ and insert ‘may, or

may not,’.

Mr Chancellor of the Exchequer

15

Page  286,  line  18  [Schedule  18],  at end insert—

‘(c)
in paragraphs (c) and (d), for “notice of control” substitute “section

178 notice”.

    (2A)
In subsection (2)(b), for “notices of control” substitute “section 178 notices”.’.

Mr Chancellor of the Exchequer

16

Page  286  [Schedule  18],  leave out lines 20 and 21 and insert—

‘“(4A)
“The appropriate regulator”—

(a)
for the purposes of subsection (1)(a) and (b), is the regulator to which the

application for permission under Part 4A is made;

(b)
for the purposes of subsection (1)(c) and (d), is the appropriate regulator

as defined in section 178(2A).

(4B)
“Section 178 notice” means a notice given under section 178.”’.

Mr Chancellor of the Exchequer

17

Page  286,  line  24  [Schedule  18],  leave out sub-paragraphs (2) to (5) and insert—

    ‘(2)
In subsection (1)—

(a)
for “the Authority”, in the first place, substitute “a regulator”,

(b)
in paragraph (a), for “subesctions (7) to (9) of section 52 do” substitute

“section 55X does”, and

(c)
in paragraph (b), for “Authority” substitute “regulator”.

      (3)
In subsection (2)—

(a)
for “the Authority”, in the first place, substitute “a regulator”,

(b)
in paragraph (a), for “section 52(1) and (2)” substitute “subsections (1)

to (3) of section 55V”, and

Notices of Amendments: 16 April 2012
4207

Financial Services Bill, continued

(c)
in paragraph (b), for “Authority” substitute “regulator”.

      (4)
In subsection (3)—

(a)
for “the Authority”, in the first place, substitute “a regulator”, and

(b)
in paragraph (b), for “Authority” substitute “regulator”.’.

Mr Chancellor of the Exchequer

18

Page  313,  line  22  [Schedule  21],  after ‘this’ insert ‘Part of this’.

Mr Chancellor of the Exchequer

19

Page  314,  line  11  [Schedule  21],  leave out ‘the scheme’ and insert ‘a scheme under

this paragraph’.

Mr Chancellor of the Exchequer

20

Page  314,  line  18  [Schedule  21],  after first ‘this’ insert ‘Part of this’.

Mr Chancellor of the Exchequer

21

Page  315,  line  2  [Schedule  21],  at end insert—

‘Part 2

Property, rights and liabilities of Office of Fair Trading

Interpretation

6
In this Part of this Schedule “the OFT” means the Office of Fair Trading.

Transfer schemes

7    (1)
This paragraph applies if after the passing of this Act the Treasury make an

order under section 22 of FSMA 2000 which has the effect that an activity—

(a)
ceases to be an activity in respect of which a licence under section 21

of Consumer Credit Act 1974 is required or would be required but for

the exemption conferred by subsection (2), (3) or (4) of that section or

paragraph 15(3) of Schedule 3 to FSMA 2000, and

(b)
becomes a regulated activity for the purposes of FSMA 2000.

      (2)
The OFT must make one or more schemes under this paragraph for the transfer

of property, rights and liabilities of the OFT to the FCA.

      (3)
A scheme under this paragraph made by the OFT is not to be capable of

coming into force unless it is approved by the Treasury and the Secretary of

State.

      (4)
The OFT may not submit a scheme under this paragraph to the Treasury or the

Secretary of State for their approval without the consent of the FCA.

      (5)
Sub-paragraph (6) applies if —

(a)
the OFT fails, before such time as may be notified to it by the Treasury

as the latest time for submission of a scheme under this paragraph in

connection with an order falling within sub-paragraph (1), to submit

such a scheme to the Treasury and the Secretary of State for their

approval, or

Notices of Amendments: 16 April 2012
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Financial Services Bill, continued

(b)
the Treasury or the Secretary of State decide not to approve a scheme

that has been submitted to them by the OFT (either with or without

modifications).

      (6)
Where this sub-paragraph applies, the Treasury may, with the approval of the

Secretary of State, make a scheme under this paragraph for the transfer to the

FCA of such of the OFT’s property, rights and liabilities as appear to the

Treasury appropriate to be transferred to the FCA in consequence of the order

falling within sub-paragraph (1).

      (7)
The property, rights and liabilities which are the subject of a scheme under this

paragraph are transferred in accordance with the provisions of the scheme on

such day as the scheme may specify.

      (8)
The OFT must provide the Treasury or the Secretary of State with all such

information and other assistance as either of them may reasonably require for

the purposes of, or otherwise in connection with, the exercise of any power

conferred on the Treasury or the Secretary of State by this paragraph.

      (9)
In the following provisions of this Part of this Schedule a scheme under this

paragraph is referred to as a “transfer scheme”.

8
The property, rights and liabilities that may be the subject of a transfer scheme

include—

(a)
any that would not otherwise be capable of being transferred or

assigned, and

(b)
rights and liabilities under a contract of employment.

9
A transfer scheme may—

(a)
apportion, or provide for the apportionment of, property, rights and

liabilities,

(b)
define the property, rights and liabilities to be transferred by

specifying them or by describing them (including describing them by

reference to functions that are transferred by the order falling within

paragraph 7(1));

(c)
contain provision for the payment of compensation by the FCA to the

OFT;

(d)
contain provision for the payment of compensation by the OFT or the

FCA to any person whose interests are adversely affected by the

scheme;

(e)
contain supplemental, incidental, transitional and consequential

provision.

10
A transfer scheme which relates to rights and liabilities under a contract of

employment must provide for the transfer to which the scheme relates to be

treated as if it were a relevant transfer for the purposes of the Transfer of

Undertakings (Protection of Employment) Regulations 2006.’.



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