House of Commons Amendments

Session 2010 - 12
Internet Publications
Other Bills before Parliament

4227

House of Commons

Notices of Amendments

given on

Tuesday 17 April 2012

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

4155-57 and 4203-08

Consideration of Bill

Financial Services Bill, As Amended

Amendments to Tribunals, Courts and Enforcement Act 2007

Gordon Banks

NC5

To move the following Clause:—

‘(1)
Section 124 of the Tribunals, Courts and Enforcement Act 2007 (charges by

operator of approved scheme) is amended as follows.

(2)
In subsection (1) for “costs’ substitute “charges”.

(3)
In subsection (2)—

(a)
for “costs”, in the first instance, substitute “charges”,

(b)
after “scheme”, insert “along with any charges made by the operator”,

and

(c)
after “those costs” insert “and charges”.’.

Chris Leslie

Cathy Jamieson

22

Page  3,  line  37  [Clause  3],  after ‘functions’, insert ‘having regard to the economic

policy of Her Majesty’s Government, including its objectives for growth and

employment’.

Compulsory financial education

Chris Leslie

Cathy Jamieson

NC6

To move the following Clause:—

‘The Government shall bring forward recommendations within six months of

Royal Assent of this Act to make financial education compulsory in schools.’.

Notices of Amendments: 17 April 2012
4228

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

23

Page  8,  line  32  [Clause  3],  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—

(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 paragraph (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 paragraph (b).

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

laid under paragraph (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 paragraphs (f) to (i) shall apply to the draft order instead

of the procedure in paragraph (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 resolution 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 the 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

Notices of Amendments: 17 April 2012
4229

Financial Services Bill, continued

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

Parliament.

(l)
For the purposes of paragraph (k) no account is to be taken of any time

during which Parliament is dissolved or prorogued or during which either

House is adjourned for more than four days.’.

Chris Leslie

Cathy Jamieson

24

Page  12,  line  2  [Clause  3],  at end insert—

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

employment and economic growth.’.

Chris Leslie

Cathy Jamieson

25

Page  137,  line  40  [Clause  61],  at end insert ‘and ensure that the Governor and all

Bank of England deputy governors and the Chief Executive of the FCA may consult the

Treasury directly.’.

Chris Leslie

Cathy Jamieson

26

Page  137,  line  36  [Clause  61],  at end insert ‘and how a temporary Stability

Committee would be convened and function in a crisis.’.

Chris Leslie

Cathy Jamieson

27

Page  176,  line  9  [Schedule  3],  at end insert—

‘Publication of minutes and agendas

10
The FCA shall make arrangements to publish the agendas and minutes of its

meetings, unless publication would be inappropriate.’.

Chris Leslie

Cathy Jamieson

28

Page  15,  line  4,  leave out Clause 5.

Chris Leslie

Cathy Jamieson

29

Page  2,  line  11  [Clause  2],  after ‘Authority)’, insert ‘and shall have regard to

minimising, as far as possible, the use of public funds to support or rescue parts of the UK

financial services industry.’.

Chris Leslie

Cathy Jamieson

30

Page  16,  line  7  [Clause  5],  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

Notices of Amendments: 17 April 2012
4230

Financial Services Bill, continued

the growth and development of social finance, charity finance and social

investment.’.

Chris Leslie

Cathy Jamieson

31

Page  245,  line  24  [Schedule  12],  at end insert—

‘(c)
after subsection (10) 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 the 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—

(a)
a database detailing relevant

counterparties; and

(b)
a financial instrument reference

database; and

(c)
formats and standards for PRA data,

including standards for reporting

financial transaction and position data

to the PRA; and

Notices of Amendments: 17 April 2012
4231

Financial Services Bill, continued

(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;

(v)
promote best practices for financial risk

management to PRA-authorised persons.

(f)
The PRA shall publish a report which compiles the data

collected in accordance with (a) 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.”.’.

Chris Leslie

Cathy Jamieson

32

Page  30,  line  21  [Clause  5],  at end insert—

‘(1A)
The memorandum must in particular contain provisions about how the regulators

intend to comply with section 3D in relation to the promotion of high standards

of stewardship by institutional investors.’.

Stewardship rules

Chris Leslie

Cathy Jamieson

NC7

To move the following Clause:—

‘(1)
The FCA must within six months of Royal Assent of this Act publish proposed

rules (“stewardship rules”) which improve the quality of stewardship by UK

institutional investors.

(2)
Rules under section (1) may include rules relating to the exercise of shareholder

rights, including voting rights, by authorised persons.

(3)
In discharging its duty under section (1), the FCA must consult the Financial

Reporting Council.’.

Notices of Amendments: 17 April 2012
4232

Financial Services Bill, continued

Mandatory voting disclosure by institutional investors

Chris Leslie

Cathy Jamieson

NC8

To move the following Clause:—

‘(1)
The Secretary of State must, not later than 30 April 2013, make regulations under

section 1277 of the Companies Act 2006 requiring institutional investors to

publish information about their exercise of voting rights attached to shares in

publicly listed companies.

(2)
Subsection (1) is complied with if regulations are made containing provision in

relation to institutions, and shares, of a description specified in the regulations.’.

Chris Leslie

Cathy Jamieson

33

Page  31,  line  24  [Clause  5],  at end insert—

‘(8A)
The memorandum shall contain an estimate of the additional annual costs

involved in the administration of the FCA and PRA when compared with the

estimated costs of the administration of the Financial Services Authority.’.

Chris Leslie

Cathy Jamieson

34

Page  28,  line  38  [Clause  5],  at end insert ‘to minimise unnecessary additional

expenses that might be incurred by virtue of the separate administration of the FCA and

the PRA, and to maximise any common administrative savings achievable through close

co-ordination.’.

Chris Leslie

Cathy Jamieson

35

Page  16,  line  15  [Clause  5],  at end insert—

‘(c)
the ease with which consumers, particularly those on lower incomes, can

have access to financial services and products which are affordable and

appropriate to their needs.’.

Chris Leslie

Cathy Jamieson

36

Page  29,  line  15  [Clause  5],  at end insert—

‘(g)
the principle that, where appropriate, authorised persons should have a

fiduciary duty towards the consumers who are their clients.’.

Notices of Amendments: 17 April 2012
4233

Financial Services Bill, continued

Debt management plan regulation

Chris Leslie

Cathy Jamieson

NC9

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.’.

Mortgage rate forewarning

Chris Leslie

Cathy Jamieson

NC10

To move the following Clause:—

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

Assent of this Act requiring mortgage lenders to forewarn existing customers

about potential interest rate changes and their impact on the affordability of

mortgage repayments.’.

Chris Leslie

Cathy Jamieson

37

Page  37,  line  42  [Clause  5],  at end insert ‘and targeted, proactive and easily

accessible advice to those encountering economic disadvantage, financial exclusion or

financial exploitation.’.

Chris Leslie

Cathy Jamieson

38

Page  82,  line  10  [Clause  22],  at end insert—

‘(c)
provide for a requirement that an employee representative should be a

member of the remuneration committee of a relevant body corporate, and

(d)
provide for a requirement that the remuneration consultants advising on

remuneration policy shall be appointed by the shareholders of a relevant

body corporate.’.

Promotion of mutual societies

Chris Leslie

Cathy Jamieson

NC11

To move the following Clause:—

‘(1)
The Treasury shall bring forward proposals within six months of Royal Assent of

this Act to foster diversity in financial services and promote mutual societies.

(2)
The proposal in section (1) shall include arrangements to measure progress in

promoting mutual societies including—

(a)
the publication each year of the number of members of mutual societies

in the UK, and



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