House of Commons Public Bill Committee Proceedings

Session 2010 - 12
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Other Bills before Parliament

1223

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

Monday 23 April 2012

Report Stage Proceedings

Financial Services Bill, As Amended

[First Day]

New Clauses

Power to make further provision about regulation of consumer credit

Mr Chancellor of the Exchequer

Added  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;

(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;

Report Stage Proceedings: 23 April 2012
1224

Financial Services Bill, continued

(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.’.

Retrospective reviews of Bank performance by court of directors and publication of court

minutes

Mr Andrew Tyrie

Mark Garnier

Teresa Pearce

Jesse Norman

John Thurso

Stewart Hosie

Withdrawn  NC1

To move the following Clause:—

‘(1)
Section 2 of the Bank of England Act 1998 (Functions of court of directors) is

amended as follows.

(2)
After subsection (5) add—

Report Stage Proceedings: 23 April 2012
1225

Financial Services Bill, continued

“(6)
The court shall conduct retrospective reviews of the performance of the

Bank with respect to its functions and objectives.

(7)
The court shall determine the particular matters to be reviewed under

subsection (6).

(8)
The court must publish a report on each review carried out under

subsections (6) and (7) unless the court decides that all or part of such a

report should not be published for reasons of confidentiality or because it

would endanger financial stability.

(9)
When all or part of a report of a review is not published under the

provisions of subsection (8), the court must—

(a)
publish as much as possible of the report,

(b)
send a copy of the full report to the Chairman of the Treasury

Committee of the House of Commons or, in exceptional

circumstances, inform the Chairman of the Treasury Committee

of the reasons for not sending it, and

(c)
publish the report or part of the report as soon as possible after

the court decides that the considerations in subsection (8) no

longer apply.

(10)
After each meeting of the court, the Bank shall publish minutes of the

meeting before the end of the period of two weeks beginning with the day

of the meeting.

(11)
Subsection (10) shall not apply to minutes of any proceedings where the

court has decided that publication should be delayed for reasons of

confidentiality or because publication would endanger financial stability.

(12)
Where any part of the court’s minutes is not published under the

provisions of subsection (11), the Chairman of the court shall inform the

Chairman of the Treasury Committee of the House of Commons of the

reasons.

(13)
Any part of the minutes of a meeting of the court must be published as

soon as the court has decided that the considerations in subsection (11)

no longer apply.”.’.

Reports by skilled persons

Mr Mark Field

Not called  NC2

To move the following Clause:—

‘The Financial Services and Markets Act 2000 is amended as follows—

(1)
In section 166, subsection (1), leave out “require him” and insert “inform

that person that it has appointed a person”.

(2)
In section 166, subsection (1), at end insert “The Authority may require

the person to whom subsection (2) applies to pay for the costs of the

report in the event that it has resulted in enforcement action being taking

against that person.”.

Report Stage Proceedings: 23 April 2012
1226

Financial Services Bill, continued

(3)
In section 228, subsection (5), at end insert “except that this is without

prejudice to the right of the complainant to sue for any amounts in excess

of the maximum award limit in the event that the Ombudsman has made

a recommendation pursuant to section 229(5) of this Act. The

Complainant’s acceptance is also not binding on the Authority which

remains entitled to take such action as it would have been had the award

limit not existed.”.’.

Enforcement of money awards

Mr Mark Field

Not called  NC3

To move the following Clause:—

‘Schedule 17 of the Financial Services and Markets Act 2000 is amended as

follows—

(1)
In paragraph 16, leave out “which has been registered in accordance with

scheme rules”.’.

Amendments to Tribunals, Courts and Enforcement Act 2007

Gordon Banks

Not called  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”.’.

Compulsory financial education

Chris Leslie

Cathy Jamieson

Not selected  NC6

To move the following Clause:—

Report Stage Proceedings: 23 April 2012
1227

Financial Services Bill, continued

‘The Government shall bring forward recommendations within six months of

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

Stewardship rules

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  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.’.

Mandatory voting disclosure by institutional investors

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  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.’.

Debt management plan regulation

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  NC9

To move the following Clause:—

Report Stage Proceedings: 23 April 2012
1228

Financial Services Bill, continued

‘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

Mark Durkan

Negatived on division  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.’.

Promotion of mutual societies

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  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

(b)
the publication each year of the market share for mutual societies as a

proportion of the UK financial services sector.’.

Report Stage Proceedings: 23 April 2012
1229

Financial Services Bill, continued

Prepayment schemes

Katy Clark

Jessica Morden

Mrs Linda Riordan

Yvonne Fovargue

Mark Durkan

John McDonnell

Not called  NC12

To move the following Clause:—

‘(1)
The FPC must carry out and publish a review of the operation of consumer

prepayment schemes to consider whether existing protection for consumers is

sufficient.

(2)
The FPC must make recommendations under subsection (1) within one year of

this section coming into force;

(3)
Any report produced by the FPC under subsection (1) shall include an analysis of

whether consumers of prepayment schemes should be made preferential creditors

for the purposes of the distribution of the realised assets of the company operating

such schemes in the event of insolvency.’.

Meaning of qualifying parent undertaking: assessment and review

Mark Durkan

Jonathan Edwards

John McDonnell

Not called  NC13

To move the following Clause:—

‘(1)
The Treasury shall within twelve months of Royal Assent to this Act consult the

FCA and the PRA on the possible need to exercise the powers provided for by

section 192B(6)(a) of the Financial Services and Markets Act 2000 and shall lay

before the House of Commons a report containing an assessment of the need to

exercise these powers.

(2)
In subsequent years, the FCA and the PRA shall provide an annual assessment of

the possible need to exercise the powers provided for by subsection (6)(a), to be

reviewed by the Treasury. Any such review must be laid before the House of

Commons.’.



© Parliamentary copyright	Revised 24 April 2012