101.52-55

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Lords Amendments to the Financial Services Bill

52
161
Page 173, line 24, leave out “director” and insert “non-executive director”
162
Page 173, line 28, leave out “director” and insert “non-executive director”
163
Page 173, line 30, leave out “director” and insert “non-executive director”
164
Page 173, line 32, at end insert—

    “( )
In paragraph 7(2), for “director” substitute “non-executive director”.”
165
Page 173, line 34, after “(1),” insert—

“( )
in that provision, for “director” substitute “non-executive

director”,”
166
Page 174, line 1, leave out sub-paragraph (8) and insert—

    “( )
In paragraph 11—

(a)
the existing provision becomes sub-paragraph (1),

(b)
in sub-paragraph (1)(b), for “servant” substitute “employee”,

(c)
in sub-paragraph (1)(c)(ii), for “servants” substitute

“employees”, and

(d)
after sub-paragraph (1) insert—

  “(2)
The duties and powers that may be delegated under

this paragraph do not include duties and powers that

are by any enactment expressly imposed or conferred

on the court of directors.””
167
Page 174, line 3, at end insert—

  “(8A)
After paragraph 12 insert—

“Publication of record of meetings

12A(1)
The Bank must publish a record of each meeting of the court—

(a)
before the end of the period of 6 weeks beginning with

the day of the meeting, or

(b)
if no meeting of the court is subsequently held during

that period, before the end of the period of 2 weeks

beginning with the day of the next meeting.

      (2)
The record must specify any decisions taken at the meeting

(including decisions to take no action) and must set out, in

relation to each decision, a summary of the court’s

deliberations.

      (3)
Sub-paragraphs (1) and (2) do not require the publication of

information whose publication within the time required by

sub-paragraph (1) would in the opinion of the court be against

the public interest.

      (4)
Publication under this section is to be in such manner as the

Bank thinks fit.””
168
Page 174, line 3, at end insert—

    “( )
In paragraph 13, after sub-paragraph (3), insert—

53

“(3A)
But a member of the court who is the Governor or a Deputy

Governor of the Bank may not be designated under paragraph

(a) or (b) of sub-paragraph (3).””
169
Page 174, line 3, at end insert—

  “(8B)
In paragraph 14(1), for “it” substitute “the Oversight Committee”.”
170
Page 174, line 3, at end insert—

    “( )
In paragraph 15, for “director” substitute “non-executive director”.”
171
Page 174, line 4, leave out “No provision of this paragraph” and insert “Nothing in

sub-paragraphs (2) to (6)”
172
Page 174, line 34, leave out paragraphs (b) and (c) and insert—

“(b)
for sub-paragraph (2) substitute—

  “(2)
The terms and conditions on which a person holds

office as a member of the Committee appointed under

section 13(2)(c) are to be such as the Oversight

Committee may determine.”, and

(c)
omit sub-paragraph (3).”
173
Page 174, line 42, at end insert—

  “(7A)
In paragraph 9—

(a)
in sub-paragraph (1)—

(i)
for “Bank” substitute “Oversight Committee”, and

(ii)
in paragraph (a), for “the Committee’s meetings” and

“the Committee’s consent” substitute “meetings of the

Monetary Policy Committee” and “that Committee’s

consent”, and

(b)
omit sub-paragraph (2).”
174
Page 175, line 10, leave out from beginning to “in” and insert—

    “(1)
Section 244 of the Banking Act 2009 (immunity) is amended as follows.”
175
Page 175, line 13, after “Bank’s” insert “functions under the Financial Services and

Markets Act 2000, of its other”
176
Page 175, line 14, at end insert—

    “( )
After subsection (2) insert—

“(2A)
The Bank’s functions under the Financial Services and Markets

Act 2000 are to be taken to include any functions that it may

exercise as a result of an appointment under any of sections 97,

166 to 169 and 284 of that Act.””
177
Page 175, line 15, at end insert—

“
In section 4 of the Bank of England Act 1998 (Bank’s annual report), in

subsection (4)(a), for “directors” substitute “non-executive directors”.”
178
Page 175, line 17, at end insert—

“
In Part 3 of Schedule 1 to the House of Commons Disqualification Act

1975 (other disqualifying offices), in the entry relating to the Bank of

England, for “Director” substitute “non-executive director”.

54


In Part 3 of Schedule 1 to the Northern Ireland Assembly

Disqualification Act 1975 (other disqualifying offices), in the entry

relating to the Bank of England, for “Director” substitute “non-executive

director”.”
Schedule 3
179
Page 175, line 30, after first “functions” insert “, in relation to the FCA,”
180
Page 178, line 9, at end insert—

“Publication of record of meetings of governing body

9A  (1)
The FCA must publish a record of each meeting of its

governing body—

(a)
before the end of the period of 6 weeks beginning with

the day of the meeting, or

(b)
if no meeting of the governing body is subsequently

held during that period, before the end of the period of

2 weeks beginning with the day of the next meeting.

      (2)
The record must specify any decision taken at the meeting

(including decisions to take no action) and must set out, in

relation to each decision, a summary of the deliberations of the

governing body.

      (3)
Sub-paragraphs (1) and (2) do not require the publication of

information whose publication within the time required by

sub-paragraph (1) would in the opinion of the governing body

be against the public interest.

      (4)
Publication under this section is to be in such manner as the

FCA thinks fit.”
181
Page 178, line 24, after “3I” insert “or 3IA”
182
Page 180, line 39, leave out from beginning to end of line 12 on page 181 and

insert—

“19A (1)
The FCA must in respect of each of its financial years pay to the Treasury

its penalty receipts after deducting its enforcement costs.

      (2)
The FCA’s “penalty receipts” in respect of a financial year are any

amounts received by it during the year by way of penalties imposed

under this Act.

      (3)
The FCA’s “enforcement costs” in respect of a financial year are the

expenses incurred by it during the year in connection with—

(a)
the exercise, or consideration of the possible exercise, of any of its

enforcement powers in particular cases, or

(b)
the recovery of penalties imposed under this Act.

      (4)
For this purpose the FCA’s enforcement powers are—

(a)
its powers under any of the provisions mentioned in section

133(7A),

(b)
its powers under section 56 (prohibition orders),

(c)
its powers under Part 25 of this Act (injunctions and restitution),

55

(d)
its powers under any other enactment specified by the Treasury

by order,

(e)
its powers in relation to the investigation of relevant offences,

and

(f)
its powers in England and Wales or Northern Ireland in relation

to the prosecution of relevant offences.

      (5)
“Relevant offences” are—

(a)
offences under FSMA 2000,

(b)
offences under subordinate legislation made under that Act,

(c)
offences falling within section 402(1) of that Act,

(d)
offences under Part 6A of the Financial Services Act 2012, and

(e)
any other offences specified by the Treasury by order.

      (6)
The Treasury may give directions to the FCA as to how the FCA is to

comply with its duty under sub-paragraph (1).

      (7)
The directions may in particular—

(a)
specify descriptions of expenditure that are, or are not, to be

regarded as incurred in connection with either of the matters

mentioned in sub-paragraph (3),

(b)
relate to the calculation and timing of the deduction in respect of

the FCA’s enforcement costs, and

(c)
specify the time when any payment is required to be made to the

Treasury.

      (8)
The directions may also require the FCA to provide the Treasury at

specified times with specified information relating to—

(a)
penalties that the FCA has imposed under this Act, or

(b)
the FCA’s enforcement costs.

      (9)
The Treasury must pay into the Consolidated Fund any sums received

by them under this paragraph.

19B(1)
The FCA must prepare and operate a scheme (“the financial penalty

scheme”) for ensuring that the amounts that, as a result of the deduction

for which paragraph 19A(1) provides, are retained by the FCA in respect

of amounts paid to it by way of penalties imposed under this Act are

applied for the benefit of regulated persons.

      (2)
“Regulated persons” means—

(a)
authorised persons,

(b)
recognised investment exchanges,

(c)
issuers of securities admitted to the official list, and

(d)
issuers who have requested or approved the admission of

financial instruments to trading on a regulated market.

      (3)
The financial penalty scheme may, in particular, make different

provision with respect to different classes of regulated person.

    (3A)
The financial penalty scheme must ensure that those who have become

liable to pay a penalty to the FCA in any financial year of the FCA do not

receive any benefit under the scheme in the following financial year.”
183
Page 182, line 11, after “Act” insert “or any of the other Acts mentioned in section

1A(6)”