101.69-74

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Lords Amendments to the Financial Services Bill

69

“General duties of PRA

339A
General duties of PRA in relation to auditors

(1)
The arrangements maintained by the PRA under section 2J

(supervision of PRA-authorised persons) must include

arrangements for—

(a)
the sharing with auditors of PRA-authorised persons of

information that the PRA is not prevented from

disclosing, and

(b)
the exchange of opinions with auditors of PRA-

authorised persons.

(2)
The PRA must issue and maintain a code of practice describing

how it will comply with subsection (1).

(3)
The PRA may at any time alter or replace a code issued under this

section.

(4)
If a code is altered or replaced, the PRA must issue the altered or

replacement code.

(5)
When the PRA issues a code under this section the PRA must—

(a)
give a copy of the code to the Treasury, and

(b)
publish the code in such manner as the PRA thinks fit.

(6)
The Treasury must lay before Parliament a copy of the code.

(7)
“Auditor” means an auditor appointed under or as a result of a

statutory provision.””
261
Page 257, line 17, leave out sub-paragraph (4) and insert—

    “(4)
For subsection (3) substitute—

“(3A)
The PRA—

(a)
must make rules imposing on auditors of PRA-

authorised persons such duties as may be specified in

relation to co-operation with the PRA in connection with

the supervision by the PRA of PRA-authorised persons,

and

(b)
may make rules—

(i)
imposing such other duties on auditors of PRA-

authorised persons as may be specified, and

(ii)
imposing such duties on actuaries acting for PRA-

authorised persons as may be specified.

(3B)
The FCA may make rules imposing on auditors of, or actuaries

acting for, authorised persons such duties as may be specified.””
262
Page 257, line 20, at end insert—

    “( )
In subsection (5), for “(3)” substitute “(3A) or (3B)”.”
263
Page 257, leave out lines 25 to 28 and insert—

    “( )
In subsection (6), for “(3)” substitute “(3B)”.”

70

Schedule 14
264
Page 263, line 8, before “the appropriate” insert “or recognised investment

exchange,”
265
Page 264, line 6, at end insert—

  “(1A)
In subsections (1), (2) and (6), after “authorised person” insert “or

recognised investment exchange”.”
266
Page 264, line 24, at end insert “, and

(b)
in paragraph (a), after “authorised person” insert “or recognised

investment exchange”.”
267
Page 264, leave out line 34 and insert—

    “(2)
For subsection (2) substitute—

“(2)
If the administrator thinks that the company or partnership is

carrying on, or has carried on—

(a)
a regulated activity in contravention of the general

prohibition, or

(b)
a credit-related regulated activity in contravention of

section 20,


the administrator must report the matter to the appropriate

regulator without delay.””
268
Page 265, line 12, at end insert “, and

(b)
in paragraph (a), after “authorised person” insert “or recognised

investment exchange”.”
269
Page 266, line 17, at end insert—

  “(1A)
In subsection (1)(a), after “authorised person” insert “or recognised

investment exchange”.”
270
Page 266, line 31, at end insert—

“( )
in paragraph (b), after “prohibition” insert “or a credit-related

regulated activity in contravention of section 20””
271
Page 266, line 37, at end insert—

  “(1A)
In subsection (1)(b), after “authorised person” insert “or recognised

investment exchange”.”
272
Page 267, line 20, at end insert “, and

(b)
in paragraph (a), after “authorised person” insert “or recognised

investment exchange”.”
273
Page 269, leave out lines 2 to 10 and insert—

“18
For section 370 substitute—

“370
Liquidator’s duty to report to FCA and PRA

(1)
If—

(a)
a company is being wound up voluntarily or a body is

being wound up on a petition presented by any person,

and

(b)
it appears to the liquidator that the company or body is

carrying on, or has carried on—

71

(i)
a regulated activity in contravention of the

general prohibition, or

(ii)
a credit-related regulated activity in

contravention of section 20,


the liquidator must report the matter without delay to the FCA

and, if the regulated activity concerned is a PRA-regulated

activity, to the PRA.””
274
Page 269, leave out line 16
275
Page 269, line 19, at end insert “and

(b)
in paragraph (a), after “authorised person” insert “or recognised

investment exchange”.”
276
Page 270, line 15, at end insert—

“( )
in paragraph (b), for the words from “carried on” to the end

substitute “carried on—

(i)
a regulated activity in contravention of the

general prohibition, or

(ii)
a credit-related regulated activity in

contravention of section 20”,”
Schedule 15
277
Page 272, line 2, at end insert—

“
In paragraph 3 (status), in sub-paragraph (2), omit “board members,”.”
Schedule 17
278
Page 279, line 32, at end insert—

“Section 81B
(a)
Treat the reference to the PRA in

subsection (2) as a reference to the FCA.

(b)
Ignore subsection (7)(b).”

279
Page 28 1, line 6, at end insert—

    “( )
In subsection (6), after “filed” insert “(in Scotland, lodged)”.”
Schedule 18
280
Page 286, line 16, at end insert—

“
In section 177 (offences), in subsection (2), after “director or” insert

“other”.”
281
Page 289, line 13, at end insert—

“
In paragraph 8 of Schedule 6 (additional threshold conditions), in sub-

paragraph (2)(b), for “the Authority” substitute “such of the FCA or the

PRA as may be specified,”.”
282
Page 291, line 32, at end insert—

72

“Lloyd’s Act 1982 (c. xiv)


In section 7 of the Lloyd’s Act 1982 (the Disciplinary Committee and the

Appeal Tribunal), in subsection (1A)(c), for “Financial Services

Authority” substitute “Prudential Regulation Authority or the Financial

Conduct Authority”.”
283
Page 292, line 6, leave out from “for” to end of line 7 and insert “the words from

“competent authority” to the end substitute ““Financial Conduct Authority to

exercise its functions under Part 6 of the Financial Services and Markets Act 2000.””
284
Page 302, line 5, at end insert—

“Trustee Act 2000 (c. 29)

    (1)
Section 29 of the Trustee Act 2000 (remuneration of certain trustees) is

amended as follows.

      (2)
In subsection (3)—

(a)
for “an authorised institution under the Banking Act 1987”

substitute “a deposit taker”, and

(b)
for “institution’s” substitute “deposit taker’s”.

      (3)
After that subsection insert—

“(3A)
In subsection (3), “deposit taker” means—

(a)
a person who has permission under Part 4A of the

Financial Services and Markets Act 2000 to accept

deposits, or

(b)
an EEA firm of the kind mentioned in paragraph 5(b) of

Schedule 3 to that Act which has permission under

paragraph 15 of that Schedule (as a result of qualifying

for authorisation under paragraph 12(1) of that Schedule)

to accept deposits.

(3B)
A reference in subsection (3A) to a person or firm with

permission to accept deposits does not include a person or firm

with permission to do so only for the purposes of, or in the course

of, carrying on another regulated activity in accordance with that

permission.

(3C)
Subsections (3A) and (3B) must be read with—

(a)
section 22 of the Financial Services and Markets Act 2000,

(b)
any relevant order under that section, and

(c)
Schedule 2 to that Act.”.”
285
Page 310, line 32, at end insert—

“Finance Act 2011 (c. 11)

    (1)
Part 4 of Schedule 19 to the Finance Act 2011 (the bank levy) is amended

as follows.

      (2)
In paragraph 37(2), in both places, for “section 213(2)(b)” substitute

“section 213(3)(b)”.

      (3)
In paragraph 38(3)(a), for “section 139(1)” substitute “section 137B(1)”.

73

Terrorism Prevention and Investigation Measures Act 2011 (c. 23)


In Part 1 of Schedule 1 to the Terrorism Prevention and Investigation

Measures Act 2011 (measures), in paragraph 5(4), for “Part 4” substitute

“Part 4A”.”
286
Page 311, line 16, at end insert—

“Charities and Trustee Investment (Scotland) Act 2005 (asp 10)


In section 106 of the Charities and Trustee Investment (Scotland) Act

2005 (general interpretation), in the definition of “relevant financial

institution”, for “Part 4” substitute “Part 4A”.”
287
Page 311, line 37, at end insert—

“Part 5

Amendment of Measure of the National Assembly for Wales

Welsh Language (Wales) Measure 2011 (nawm 1)


In Schedule 6 to the Welsh Language (Wales) Measure 2011 (public

bodies etc: standards)—

(a)
in the Welsh text, omit the entry relating to “Awdurdod

Gwasanaethau Ariannol (“The Financial Services Authority”)” and

at the appropriate place among the entries headed “Cyffredinol”

insert—

“Awdurdod Ymddygiad
Safonau cyflenwi gwasanaethau

Ariannol (“Financial
Safonau llunio polisi

Conduct Authority”)
Safonau gweithredu

Safonau cadw cofnodion.”

(b)
in the English text, omit the entry relating to “The Financial

Services Authority (“Awdurdod Gwasanaethau Ariannol”)” and at

the appropriate place among the entries headed “General”

insert—

“Financial Conduct
Record keeping standards

Authority (“Awdurdod
Service delivery standards

Ymddygiad Ariannol”)
Policy making standards

Operational standards.”

(c)
in the Welsh text, at the appropriate place among the entries

headed “Cyffredinol”, insert—

74

“Awdurdod Rheoleiddio
Safonau cyflenwi gwasanaethau

Darbodus (“Prudential
Safonau llunio polisi

Regulation Authority”)
Safonau gweithredu

Safonau cadw cofnodion.”

(d)
in the English text, at the appropriate place among the entries

headed “General”, insert—

“Prudential Regulation
Record keeping standards

Authority (“Awdurdod
Service delivery standards

Rheoleiddio Darbodus”)
Policy making standards

Operational standards.”.”

Schedule 19
288
Page 312, line 3, at end insert—

“Bank of England Act 1998
Section 1(3).”

Schedule 20
289
Page 315, line 6, at end insert—

  “(1A)
The FSA may disclose to the Bank of England any information which the

FSA considers that it is necessary or expedient to disclose to the Bank in

preparation for the commencement of any provision of this Act

conferring functions on the Bank.”
290
Page 315, line 8, leave out “sub-paragraph (1)” and insert “sub-paragraphs (1) and

(1A)”