House of Commons Public Bill Committee Proceedings

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Report Stage Proceedings: 23 April 2012
1230

Financial Services Bill, continued

Official listing: substainability committee

Lisa Nandy

Teresa Pearce

John McDonnell

Debbie Abrahams

Yasmin Qureshi

Not called  NC14

To move the following Clause:—

‘(1)
There is to be a Committee of the Financial Conduct Authority (the Sustainability

Committee) consisting of staff members appointed by the Chief Executive and of

no less than four external members representative of business and NGOs.

(2)
The Committe’s functions are to advise the FCA on the conduct of its duties

under section 73 of the FSMA 2000 and to pursue intitiatives in the following

areas—

(a)
to define the minimum expectations sustainability reporting by sector for

new listings,

(b)
to monitor the quality of sustainability reports and reporting on

environmental, social and corporate governance by listed companies,

(c)
to educate companies on material sustainability issues,

(d)
to assist in the development of integrated financial reporting and

comparable financial statements across borders,

(e)
to consider policies on improved corporate governance, and

(f)
to collaborate with the sustainability committees at other global stock

exchanges to share best practices, highlight areas of concern, and

potential for partnerships for projects.’.

Human rights and environmental sustainability obligations

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  NC15

To move the following Clause:—

‘The Treasury shall bring forward a report within 12 months of Royal Assent of

this Act on proposals to include within the FCA’s operational objectives a human

rights and environmental sustainability objective.’.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  48

Page  1,  line  11  [Clause  1],  at end insert—

Report Stage Proceedings: 23 April 2012
1231

Financial Services Bill, continued

“(e)
a Deputy Governor appointed for ethical corporate behaviour

policy,’.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  46

Page  1,  line  12  [Clause  1],  at end add—

‘(2A)
The appointment of the Governor and Deputy Governors shall be made

only after the Treasury Committee of the House of Commons has been

consulted and has reported on the suitability of the candidates nominated

by the Chancellor of the Exchequer for the posts.’.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  47

Page  1,  line  12  [Clause  1],  at end add—

‘(2A)
Any member appointed under subsection (2) shall be appointed with the

consent of the Treasury Committee of the House of Commons.’.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  52

Page  2,  line  2  [Clause  1],  at end insert—

‘(ac)
the Deputy Governor for ethical corporate behaviour policy,’.

Chris Leslie

Cathy Jamieson

Not called  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.’.

As an Amendment to Chris Leslie’s proposed Amendment (No. 29):—

Mark Durkan

Not selected  (a)

Line  2,  leave out ‘the use of’ and insert ‘recourse to’.

Report Stage Proceedings: 23 April 2012
1232

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Mark Durkan

Negatived on division  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’.

Chris Leslie

Cathy Jamieson

Not called  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—

Report Stage Proceedings: 23 April 2012
1233

Financial Services Bill, continued

(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 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

Mark Durkan

Not called  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.’.

Mr Chancellor of the Exchequer

Agreed to  12

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

expressed’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  39

Page  14,  line  36  [Clause  4],  at end add—


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

review of the effectiveness of co-ordination 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.’.

Report Stage Proceedings: 23 April 2012
1234

Financial Services Bill, continued

Chris Leslie

Cathy Jamieson

Negatived on division  28

Page  15,  line  4,  leave out Clause 5.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  53

Page  16,  line  3  [Clause  5],  at end insert—

‘(d)
the ethical corporate behaviour objective (see section 1F).’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  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

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

investment.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  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.’.

Mark Durkan

Not called  67

Page  16,  line  41  [Clause  5],  after ‘is’, insert ‘intelligible to them, appropriately

presented’.

Mark Durkan

Jonathan Edwards

Not called  41

Page  17,  line  1  [Clause  5],  after ‘transaction’, insert ‘, any common law fiduciary

duties owed by the provider in question’.

Report Stage Proceedings: 23 April 2012
1235

Financial Services Bill, continued

Lisa Nandy

Teresa Pearce

John McDonnell

Debbie Abrahams

Yasmin Qureshi

Not called  44

Page  17,  line  18  [Clause  5],  at end add—

‘(f)
its ability to foster ethical corporatate behaviour, including respect for

internationally-recognised human rights.’.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  54

Page  17,  line  35  [Clause  5],  at end insert—

‘1EA
The ethical corporate behaviour objective

(1)
The ethical corporate behaviour objective is: promoting ethical corporate

behaviour to protect and promote respect for internationally recognised human

rights and environmental sustainability.

(2)
The matters which the FCA may have regard to in considering ethical corporate

behaviour include—

(a)
compliance with internationally-recognised human rights and

environmental standards included in the Universal Declaration of Human

Rights, the International Covenant on Economic, Social and Cultural

Rights, the UN Declaration on the Rights of Indigenous Peoples and the

Convention on Biological Diversity;

(b)
any findings of non-compliance with International Finance Corporation,

OECD and UK regulations concerning human rights, health and safety,

biodiversity and environmental protection.’.

Mark Durkan

John McDonnell

Not called  68

Page  17,  line  35  [Clause  5],  at end insert—

‘(e)
the ease with which consumers throughout the UK can identify and

obtain services which are appropriate to their needs and represent good

value for money.’.

John McDonnell

Mr Elfyn Llwyd

Jeremy Corbyn

Katy Clark

Not called  51

Page  21,  line  17  [Clause  5],  at end insert—

Report Stage Proceedings: 23 April 2012
1236

Financial Services Bill, continued

‘(c)
persons representing organisations with experience in promoting human

rights and environmental sustainability,’.

Mark Durkan

John McDonnell

Not called  69

Page  27,  line  19  [Clause  5],  at end insert ‘and by the Consumer Panel’.

Mark Durkan

John McDonnell

Not called  70

Page  27,  line  19  [Clause  5],  at end insert—

‘(1A)
Unless the PRA has established a panel as provided for in section 2K(2) to reflect

consumer interests, it must consider representations from the Consumer Panel

established under section 1Q where such representations relate to the PRA’s

general policies and practices, the co-ordination of the exercise of PRA and FCA

functions as provided for in section 3D(1), or the exercise of the PRA power in

section 3I.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

Not called  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

Mark Durkan

Not called  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.’.

Mark Durkan

Not called  71

Page  29,  line  42  [Clause  5],  at end insert—

‘(d)
that each regulator engages with the other where they identify any gaps

in or between their regulatory remits, or the exercise of these, that may

become apparent in relation to any product, provider, institution, market

practice, responsible shareholder interest or consumer concern;



© Parliamentary copyright	Revised 24 April 2012