House of Commons Amendments

Session 2012 - 13
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Other Bills before Parliament

81

House of Commons

Notices of Amendments

given up to and including

Friday 18 May 2012

Consideration of Bill

Financial Services Bill, As Amended

Note

The Amendments have been arranged in accordance with the Order of the House

[23 April 2012].

Mr Chancellor of the Exchequer

4

Page  39,  line  36  [Clause  7],  after ‘25(1)’ insert—

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

Chris Leslie

Cathy Jamieson

75

Page  43,  line  16  [Clause  9],  at end insert—

‘(3)
Within a year of Royal Assent to the Financial Services Act 2012, the Treasury

shall publish a report on measures to improve the stewardship of institutional

investments, which may require amendment under subsection (1).’.

Notices of Amendments: 18 May 2012
82

Financial Services Bill, continued

Lisa Nandy

Teresa Pearce

John McDonnell

Debbie Abrahams

Yasmin Qureshi

Mark Durkan

45

Page  64,  line  8  [Clause  14],  at end insert—

‘(3A)
In section 73, subsection (1), insert at end:

“(g)
to foster ethical corporate behaviour, including respect for

internationally-recognised human rights.”.’.

Stella Creasy

Mr Philip Hollobone

Mark Durkan

Sir Peter Bottomley

Yvonne Fovargue

Caroline Lucas

Total signatories: 11

Mrs Jenny Chapman

40

Page  80,  line  2  [Clause  22],  at end insert—

‘(2A)
The FCA may make rules or apply a sanction to authorised persons who offer

credit on terms that the FCA judge to cause consumer detriment. This may

include rules that determine a maximum total cost for consumers of a product and

determine the maximum duration of a supply of a product or service to an

individual consumer.’.

Chris Leslie

Cathy Jamieson

Mark Durkan

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.’.

Mr Chancellor of the Exchequer

5

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

Notices of Amendments: 18 May 2012
83

Financial Services Bill, continued

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’.

Mark Durkan

Jonathan Edwards

42

Page  108  [Clause  25],  leave out lines 29 and 30.

Mark Durkan

Jonathan Edwards

43

Page  108  [Clause  25],  leave out lines 34 to 39.

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

Notices of Amendments: 18 May 2012
84

Financial Services Bill, continued

the voluntary jurisdiction, the ombudsman would be likely to

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

Chris Leslie

Cathy Jamieson

Mark Durkan

73

Page  127,  line  38  [Clause  40],  at end insert—

‘Complaints by small businesses

234I
Small businesses—complaints and proceedings

(1)
The Treasury and Secretary of State shall bring forward proposals within three

months of Royal Assent to the Financial Services Act 2012 in the following

areas—

(a)
to introduce provision for collective proceedings before the court in

respect of financial services claims made on an opt-out basis by small and

medium sized enterprises; and

(b)
to introduce provision for complaints by small and medium sized

enterprises to the FCA that a feature, or combination of features, of a

market in the United Kingdom for financial services is, or appears to be,

significantly damaging the interests of small business.’.

Mr Chancellor of the Exchequer

9

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

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

Chris Leslie

Cathy Jamieson

Mark Durkan

72

Page  130,  line  38  [Clause  47],  at end insert—

‘(g)
making provision for the increased diversity of the financial services

sector and promotion of mutual societies, including arrangements to

measure the number of members of mutual societies, and the market

share for mutual societies as a proportion of the UK financial services

sector.’.

Notices of Amendments: 18 May 2012
85

Financial Services Bill, continued

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’.

Chris Leslie

Cathy Jamieson

Mark Durkan

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

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.’.

Mr Chancellor of the Exchequer

11

Page  165,  line  21  [Clause  97],  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);’.

Chris Leslie

Cathy Jamieson

Mark Durkan

74

Page  204,  line  37  [Schedule  5],  at end insert—

‘(2)
In subsection (1) after “approved persons”, insert “and the standards of

stewardship expected of approved persons who are institutional investors.”’.

Mr Chancellor of the Exchequer

13

Page  240,  line  8  [Schedule  10],  leave out ‘are, or are not, to’ and insert ‘may, or

may not,’.

Notices of Amendments: 18 May 2012
86

Financial Services Bill, continued

Mr Chancellor of the Exchequer

14

Page  240,  line  10  [Schedule  10],  leave out ‘are, or are not, to’ and insert ‘may, or

may not,’.

Chris Leslie

Cathy Jamieson

Mark Durkan

31

Page  247,  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

Notices of Amendments: 18 May 2012
87

Financial Services Bill, continued

(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

(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.”.’.

Mr Chancellor of the Exchequer

15

Page  288,  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  288  [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;



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