Session 2012 - 13
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29

 

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

 
 

Tuesday 22 May 2012

 

Report Stage Proceedings

 

Financial Services Bill, As Amended


 

[Second Day]


 

Mr Chancellor of the Exchequer

 

Agreed to  4

 

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

 

‘(a)    

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

 


 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Withdrawn  75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).’.

 


 

Lisa Nandy

 

Teresa Pearce

 

John McDonnell

 

Debbie Abrahams

 

Yasmin Qureshi

 

Mark Durkan

 

Not called  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.”.’.

 



 
 

Report Stage Proceedings: 22 May 2012                  

30

 

Financial Services Bill, continued

 
 

Stella Creasy

 

Mr Philip Hollobone

 

Mark Durkan

 

Sir Peter Bottomley

 

Yvonne Fovargue

 

Caroline Lucas

 

Negatived on division  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

 

Negatived on division  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

 

Agreed to  5

 

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

 

section 1B(1) and (5)(a)’.

 


 

Mr Chancellor of the Exchequer

 

Agreed to  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’.

 



 
 

Report Stage Proceedings: 22 May 2012                  

31

 

Financial Services Bill, continued

 
 

Mark Durkan

 

Jonathan Edwards

 

Not called  42

 

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

 

Mark Durkan

 

Jonathan Edwards

 

Not called  43

 

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

 


 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Agreed to  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

 

the voluntary jurisdiction, the ombudsman would be likely to

 

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

 


 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Not called  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—


 
 

Report Stage Proceedings: 22 May 2012                  

32

 

Financial Services Bill, continued

 
 

(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

 

Agreed to  9

 

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

 

‘( )    

omit the definition of “notice of control”;’.

 


 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Negatived on division  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.’.

 


 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Not called  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

 

Not called  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


 
 

Report Stage Proceedings: 22 May 2012                  

33

 

Financial Services Bill, continued

 
 

Treasury directly.’.

 


 

Mr Chancellor of the Exchequer

 

Agreed to  11

 

Page  165,  line  21  [Clause  97],  at end insert—

 

‘( )    

an order under section 91 (power to make further provision about

 

regulation of consumer credit);’.

 


 

Chris Leslie

 

Cathy Jamieson

 

Mark Durkan

 

Not called  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

 

Agreed to  13

 

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

 

may not,’.

 

Mr Chancellor of the Exchequer

 

Agreed to  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

 

Not called  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


 
 

Report Stage Proceedings: 22 May 2012                  

34

 

Financial Services Bill, continued

 
 

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

 

(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;


 
 

Report Stage Proceedings: 22 May 2012                  

35

 

Financial Services Bill, continued

 
 

(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

 

Agreed to  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

 

Agreed to  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;

 

(b)    

for the purposes of subsection (1)(c) and (d), is the appropriate regulator

 

as defined in section 178(2A).

 

(4B)    

“Section 178 notice” means a notice given under section 178.”’.

 

Mr Chancellor of the Exchequer

 

Agreed to  17

 

Page  288,  line  24  [Schedule  18],  leave out sub-paragraphs (2) to (5) and insert—

 

    ‘(2)  

In subsection (1)—

 

(a)    

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

 

(b)    

in paragraph (a), for “subesctions (7) to (9) of section 52 do” substitute

 

“section 55X does”, and

 

(c)    

in paragraph (b), for “Authority” substitute “regulator”.

 

      (3)  

In subsection (2)—

 

(a)    

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

 

(b)    

in paragraph (a), for “section 52(1) and (2)” substitute “subsections (1)

 

to (3) of section 55V”, and

 

(c)    

in paragraph (b), for “Authority” substitute “regulator”.

 

      (4)  

In subsection (3)—

 

(a)    

for “the Authority”, in the first place, substitute “a regulator”, and


 
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