Session 2012 - 13
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Financial Services Bill


Financial Services Bill
Part 8 — Miscellaneous

163

 

(7)   

In this section—

“CCA 1974” means the Consumer Credit Act 1974;

“the OFT” means the Office of Fair Trading.

Amendments of Companies Act 1989

92      

Amendments of Companies Act 1989

5

(1)   

Section 166 of the Companies Act 1989 (power of Secretary of State to give

directions to recognised investment exchange or recognised clearing house) is

amended as follows.

(2)   

In subsection (2)(a)—

(a)   

for “Authority”, in the first place, substitute “appropriate regulator”,

10

and

(b)   

for “Authority”, in the second place, substitute “regulator”.

(3)   

In subsection (2)(b)—

(a)   

for “Authority”, in the first place, substitute “appropriate regulator”,

and

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(b)   

for “Authority”, in the second place, substitute “regulator”.

(4)   

In subsection (3)—

(a)   

for “Authority” substitute “appropriate regulator”,

(b)   

omit the “or” following paragraph (a), and

(c)   

at the end insert—

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“(c)   

in either case, that the direction is necessary having

regard to the public interest in the stability of the

financial system of the United Kingdom, or

(d)   

in either case, that the direction is necessary—

(i)   

to facilitate a proposed or possible use of a

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power under Part 1 of the Banking Act 2009

(special resolution regime), or

(ii)   

in connection with a particular exercise of a

power under that Part.”

(5)   

In subsection (7)—

30

(a)   

for “Authority”, in the first place, substitute “appropriate regulator”,

and,

(b)   

omit the words from “The Authority shall not” to the end.

(6)   

After that subsection insert—

“(7A)   

Where the exchange or clearing house is acting in accordance with a

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direction under subsection (2)(a) that was given only by virtue of

paragraph (a) of subsection (3), the appropriate regulator shall not give

a direction under subsection (7) unless it is satisfied that the direction

under that subsection will not impede or frustrate the proper and

efficient conduct of the default proceedings.

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(7B)   

Where the exchange or clearing house has taken action under its default

rules without being directed to do so, the appropriate regulator shall

not give a direction under subsection (7) unless—

 
 

Financial Services Bill
Part 8 — Miscellaneous

164

 

(a)   

it is satisfied that the direction under that subsection will not

impede or frustrate the proper and efficient conduct of the

default proceedings, or

(b)   

it is satisfied that the direction is necessary—

(i)   

having regard to the public interest in the stability of the

5

financial system of the United Kingdom,

(ii)   

to facilitate a proposed or possible use of a power under

Part 1 of the Banking Act 2009 (special resolution

regime), or

(iii)   

in connection with a particular exercise of a power

10

under that Part.”

(7)   

In subsection (8), for “Authority” substitute “the regulator which gave the

direction”.

(8)   

At the end insert—

“(9)   

“The appropriate regulator”—

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(a)   

in relation to a recognised UK investment exchange, means the

FCA, and

(b)   

in relation to a recognised UK clearing house, means the Bank

of England.”

(9)   

In the heading, omit “of Secretary of State”.

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Settlement systems

93      

Evidencing and transfer of title to securities without written instrument

In section 785 of the Companies Act 2006 (provision enabling procedures for

evidencing and transferring title), at the end insert—

“(7)   

The regulations may confer functions on any person, including—

25

(a)   

the function of giving guidance or issuing a code of practice in

relation to any provision made by the regulations, and

(b)   

the function of making rules for the purposes of any provision

made by the regulations.

(8)   

The regulations may, in prescribed cases, confer immunity from

30

liability in damages.”

Director of Savings

94      

Provision of services by Director of Savings

(1)   

The Director of Savings (“the Director”) may enter into arrangements with a

public body for the provision by the Director, or persons authorised by the

35

Director, of services to the body.

(2)   

Arrangements are to be on such terms, including terms as to payment, as may

be agreed.

(3)   

“Public body” means a person or body whose functions are of a public nature.

 
 

Financial Services Bill
Part 9 — General

165

 

Part 9

General

Further amendments and repeals

95      

Further minor and consequential amendments and repeals

(1)   

Schedule 18 contains further amendments of FSMA 2000 and other

5

enactments.

(2)   

Schedule 19 contains further consequential repeals.

Orders

96      

Orders: general

(1)   

Any power of the Treasury or the Secretary of State to make an order under this

10

Act is exercisable by statutory instrument.

(2)   

Any order made by the Treasury or the Secretary of State under this Act may—

(a)   

contain such incidental or transitional provision as the Treasury

consider appropriate, and

(b)   

make different provision for different cases.

15

97      

Orders: Parliamentary control

(1)   

A statutory instrument containing (alone or with other provision) an order to

which subsection (2) applies may not be made unless a draft of the instrument

has been laid before Parliament and approved by a resolution of each House.

(2)   

This subsection applies to—

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(a)   

an order under Part 3 (mutual societies);

(b)   

an order under section 99 (power to make further consequential

amendments) that amends or repeals primary legislation.

(3)   

A statutory instrument containing an order under this Act, other than an

instrument to which subsection (1) applies or an instrument containing only

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provision made under section 103 (commencement), is subject to annulment in

pursuance of a resolution of either House of Parliament.

(4)   

In this section “primary legislation” means—

(a)   

an Act of Parliament,

(b)   

an Act of the Scottish Parliament,

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(c)   

a Measure or Act of the National Assembly for Wales, or

(d)   

Northern Ireland legislation.

Interpretation

98      

Interpretation

(1)   

In this Act “FSMA 2000” means the Financial Services and Markets Act 2000.

35

(2)   

In this Act—

 
 

Financial Services Bill
Part 9 — General

166

 

“the FCA” means the Financial Conduct Authority;

“the PRA” means the Prudential Regulation Authority;

“the UK financial system” means the financial system of the United

Kingdom.

(3)   

In this Act “enactment” includes—

5

(a)   

an enactment contained in subordinate legislation within the meaning

of the Interpretation Act 1978;

(b)   

an enactment contained in, or in an instrument made under, an Act of

the Scottish Parliament;

(c)   

an enactment contained in, or in an instrument made under, a Measure

10

or Act of the National Assembly for Wales;

(d)   

an enactment contained in, or in an instrument made under, Northern

Ireland legislation.

Consequential and transitional provisions

99      

Power to make further consequential amendments etc

15

(1)   

The Treasury or the Secretary of State may by order make such provision

amending, repealing, revoking or applying with modifications any enactment

to which this section applies as they consider necessary or expedient in

consequence of any provision made by or under this Act.

(2)   

This section applies to—

20

(a)   

any enactment passed or made before the passing of this Act, and

(b)   

any enactment passed or made on or before the last day of the Session

in which this Act is passed.

(3)   

Amendments and repeals made under this section are additional to those

made by or under any other provision of this Act.

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100     

Transitional provisions and savings

(1)   

Schedule 20 contains transitional provisions.

(2)   

Schedule 21 contains provision about the transfer of property, rights and

liabilities.

(3)   

The Treasury may by order make such provision as they consider necessary or

30

expedient for transitory, transitional or saving purposes in connection with the

commencement of any provision made by or under this Act.

(4)   

An order under subsection (3) may, in particular—

(a)   

make provision enabling any person by whom any powers will become

exercisable, on a date set by or under this Act, by virtue of any

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provision made by or under this Act to take before that date any steps

which are necessary as a preliminary to the exercise of those powers;

(b)   

make provision treating any rules made, permission given or other

thing done by the Financial Services Authority before commencement

under an enactment amended by this Act—

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(i)   

as having been made, given or done under a corresponding

provision of the enactment as so amended;

 
 

Financial Services Bill
Part 9 — General

167

 

(ii)   

as having been made, given or done (or also made, given or

done) by the PRA or the Bank of England;

(c)   

make provision for the continuation of proceedings begun before

commencement, including provision about the decisions available to

bodies before which such proceedings take place and the effect of their

5

decisions;

(d)   

make provision for making savings, or additional savings, from the

effect of any repeal or revocation made by or under this Act.

(5)   

An order under subsection (3) may—

(a)   

confer functions on the Treasury, the FCA or the PRA, or on the Bank

10

of England or its Financial Policy Committee;

(b)   

modify, exclude or apply (with or without modifications) any

enactment (including any provision of, or made under, this Act).

(6)   

In subsection (4) “commencement” means the commencement of such

provisions of this Act as may be specified by the order.

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Final provisions

101     

Financial provision

(1)   

There is to be paid out of money provided by Parliament—

(a)   

any expenditure incurred under or by virtue of this Act by a Minister

of the Crown or government department (apart from any expenditure

20

to be met from the National Loans Fund), and

(b)   

any increase attributable to this Act in the sums payable under any

other Act out of money so provided.

(2)   

There is to be paid out of the National Loans Fund any increase attributable to

this Act in the sums payable under any other Act out of that Fund.

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102     

Extent

This Act extends to England and Wales, Scotland and Northern Ireland.

103     

Commencement

(1)   

The following provisions come into force on the day on which this Act is

passed—

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sections 96 to 99;

section 100(3) to (8);

sections 101 and 102;

this section;

section 104.

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(2)   

Section 94 comes into force at the end of the period of 2 months beginning with

day on which this Act is passed.

(3)   

The remaining provisions of this Act come into force on such day as the

Treasury may by order appoint.

(4)   

Different days may be appointed for different purposes.

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Revised 10 May 2012