House of Commons Amendments

Session 2012 - 13
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Other Bills before Parliament

Notices of Amendments: 14 March 2013
12

Financial Services (Banking Reform) Bill, continued

Bank account portability

Chris Leslie

Cathy Jamieson

NC12

To move the following Clause:—

‘(1)
Within six months of Royal Assent of this Act the Chancellor of the Exchequer

shall lay before Parliament a report considering—

(a)
the adequacy of the current account redirection service,

(b)
legislative options for mandating the provision of a current account

redirection service by UK ring-fenced bodies.’.

Financial inclusion

Chris Leslie

Cathy Jamieson

NC13

To move the following Clause:—

‘(1)
In the Financial Services Act 2012 section 6 which inserts section 1B into FSMA

2000 after subsection (5)(b)(ii) insert—

“(c)
the ease with which consumers can have access to financial

services and products which are affordable and appropriate to

their needs.”.’.

Publication of trends in bank lending

Chris Leslie

Cathy Jamieson

NC14

To move the following Clause:—

‘(1)
After section 1E(2) of chapter 1 of Part 1A of FSMA 2000 insert—

“(3)
The FCA shall collate and publish anonymised consumer and business

lending data disaggregated by UK financial institution and presented on

a postcode-level basis.”.’.

Basic bank account guarantee

Chris Leslie

Cathy Jamieson

NC15

To move the following Clause:—

‘(1)
All UK institutions providing the regulated activity of accepting deposits must—

(a)
make a “basic bank account” available to all who request it, and

(b)
offer a “basic bank account” to people denied access to a current account

due to a poor credit score.

(2)
The requirements in subsection (1) do not apply to people with a record of fraud.

(3)
In this section “basic bank account” means a current account which—

Notices of Amendments: 14 March 2013
13

Financial Services (Banking Reform) Bill, continued

(a)
provides customers with a debit or ATM card,

(b)
does not have an overdraft function,

(c)
does not pay interest on deposits, and

(d)
does not incur periodic fees.’.

Review into extending the Financial Services Compensation Scheme to cover Small and

Medium enterprises

Chris Leslie

Cathy Jamieson

NC16

To move the following Clause:—

‘(1)
The Treasury shall arrange for a review of the impact of extending the Financial

Services Compensation Scheme to cover deposits of private non-financial

corporations with an annual revenue of less than £20 million.

(2)
The review must consider in particular—

(a)
the impact on the Financial Services Compensation Scheme in the event

of a bank’s insolvency,

(b)
the impact on the British economy of extending the scheme,

(c)
the impact of protecting different percentages of private non-financial

corporations’ deposits.

(3)
The review must be completed during the period of six months beginning with

the date on which this Act comes into force.

(4)
The review must result in a report to the Treasury.

(5)
The Treasury shall lay a copy of the report before Parliament.

(6)
If the review recommends further reviews the Treasury may arrange for the

further reviews.’.

Bank of England scheme to boost lending

Chris Leslie

Cathy Jamieson

NC17

To move the following Clause:—

‘(1)
The Chancellor of the Exchequer shall bring forward proposals within one month

of Royal Assent of this Act to reform the Bank of England Funding for Lending

Scheme so that—

(a)
the period under which drawdown requests may be made by UK financial

institutions shall be extended until 31 January 2015,

(b)
the determination of fees for the facility shall be based not only on total

net lending during the reference period, but also determined according to

the level of net lending to private non-financial corporations over that

reference period.’.

Notices of Amendments: 14 March 2013
14

Financial Services (Banking Reform) Bill, continued

Mutual societies

Chris Leslie

Cathy Jamieson

NC18

To move the following Clause:—

‘After section 50(3)(f) of the Financial Services Act 2012, 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.”.’.

Chris Leslie

Cathy Jamieson

11

Clause  1,  page  1,  line  11,  after ‘that’, insert ‘reduces the risk of ring-fenced bodies

assuming disproportionate exposure, enhances their capacity to cope with other exposure

and otherwise’.

Chris Leslie

Cathy Jamieson

12

Clause  1,  page  1,  line  18,  after ‘services,’, insert ‘in particular by securing the

orderly handling of circumstances in which ring-fenced bodies have encountered or may

encounter financial difficulties,’.

Chris Leslie

Cathy Jamieson

13

Clause  2,  page  2,  line  42,  after ‘that’, insert ‘reduces the risk of ring-fenced bodies

assuming disproportionate exposure, enhances their capacity to cope with other exposure

and otherwise’.

Chris Leslie

Cathy Jamieson

14

Clause  2,  page  3,  line  6,  after ‘services,’, insert ‘in particular by securing the

orderly handling of circumstances in which ring-fenced bodies have encountered or may

encounter financial difficulties,’.

Chris Leslie

Cathy Jamieson

15

Clause  4,  page  3,  line  33,  leave out from ‘order’ to end of line 35 and insert—

‘(a)
would significantly enhance the stability of the UK financial system or

provide other significant benefit to the economy of the United Kingdom,

and

(b)
would not pose a risk to the continuity of the provision in the United

Kingdom of core services.’.

Notices of Amendments: 14 March 2013
15

Financial Services (Banking Reform) Bill, continued

Chris Leslie

Cathy Jamieson

16

Clause  4,  page  5,  line  13,  leave out from ‘circumstances’ to end of line 15 and

insert—

‘(a)
would significantly enhance the stability of the UK financial system or

provide other significant benefit to the economy of the United Kingdom,

and

(b)
would not pose a risk to the continuity of the provision in the United

Kingdom of core services.’.

Chris Leslie

Cathy Jamieson

17

Clause  4,  page  8,  line  34,  at end insert—

‘(7A)
The Treasury must make regulations prescribing requirements with which ring-

fencing rules made for the group ring-fencing purposes must comply.’

Chris Leslie

Cathy Jamieson

18

Clause  4,  page  12,  line  31,  at end insert—

‘( )
section 142H(7A);’.

Chris Leslie

Cathy Jamieson

19

Clause  4,  page  13,  line  7,  at end insert—

‘142NA
Enhanced scrutiny procedure for certain affirmative procedure orders

(1)
This section applies if—

(a)
an order under section 142A(2)(b) exempts a class of UK institutions

from being ring-fenced bodies,

(b)
an order under sections 142B(2) or 142B(5) makes provision for a

regulated activity to be or cease to be a core activity or varies the

circumstances in which a regulated activity is a core activity,

(c)
an order under section 142D(2) varies the circumstances in which the

regulated activity of dealing in investments as principal is an excluded

activity,

(d)
an order under section 142D(4) provides for an activity to be or cease to

be an excluded activity or varies the circumstances in which an activity

is an excluded activity, or

(e)
an order under section 142E varies the scope of what ring-fenced bodies

are prohibited from doing by virtue of that section (including by varying

exemptions or conditions),

(f)
an order is made under section 142M,


and the order is not made in reliance on section 142N(4).

(2)
The Treasury must, before laying a draft of the order before either House of

Parliament for approval, consult such persons as the Treasury considers

appropriate in relation to the proposed draft.

(3)
If, after the consultation required by subsection (2), the Treasury considers that it

is appropriate to proceed with the making of an order, the Treasury must lay

Notices of Amendments: 14 March 2013
16

Financial Services (Banking Reform) Bill, continued

before each House of Parliament a draft of the order together with an explanatory

document—

(a)
explaining the provisions in the draft order, and

(b)
giving details of the consultation under subsection (2), any

representations received as a result of the consultation and any changes

made to the proposed draft as a result of the representations.

(4)
If a joint committee of both Houses of Parliament is charged with reporting on the

draft order—

(a)
the chairman of the Treasury Committee of the House of Commons is to

be the chairman of the joint committee, and

(b)
the Treasury must have regard to any recommendations of the joint

committee made during the 60-day period.

(5)
If, after the expiry of the 60-day period, the Treasury wish to make an order

including material changes from the draft order, they must lay before

Parliament—

(a)
a revised draft order, and

(b)
a statement giving details of the revisions

(6)
After the expiry of the 60-day period (and, if subsection (5) applies, after

complying with that subsection) the Treasury may make the order in the terms of

the draft, or revised draft, if it is approved by a resolution of each House of

Parliament (as required by section 142N(2)(a)).

(7)
In this section “the 60-day period” means the period of 60 days beginning with

the day on which the draft order is laid before Parliament under subsection (3).

(8)
In calculating the 60-day period no account is to be taken of any time during

which Parliament is dissolved or prorogued or during which either House is

adjourned for more than 4 days.

(9)
The references in this section to the Treasury Committee of the House of

Commons—

(a)
if the name of that Committee is changed, is to be treated as a reference

to that Committee by its new name, and

(b)
if the functions of that Committee (or substantially corresponding

functions) become functions of a different Committee of the House of

Commons, is to be treated as a reference to the Committee by which the

functions are exercisable;


and any question arising under paragraph (a) or (b) is to be determined by the

Speaker of the House of Commons.”.’.

Chris Leslie

Cathy Jamieson

20

Clause  4,  page  9,  line  21,  at end insert—

‘Power to order full separation

142JC
Power to order separation in case of particular groups

(1)
Where—

(a)
the members of a group include one or more ring-fenced bodies and one

or more other bodies, and

(b)
it appears to the appropriate regulator that the conduct of any one or more

of the members of the group is such that there is a significant risk that the

appropriate regulator will not be able to advance the objective in section

Notices of Amendments: 14 March 2013
17

Financial Services (Banking Reform) Bill, continued

2B(3)(c) (in the case of the PRA) or the continuity objective (in the case

of the FCA) otherwise than by acting under this section,


the appropriate regulator may give a notice to each of the members of the group.

(2)
The notice must state that the appropriate regulator proposes to require the taking

of relevant steps in relation to the group before the date specified in the notice.

(3)
In this section “relevant steps” means steps to secure one of the following

results—

(a)
that there is no member of the group with a Part 4A permission to carry

on a regulated activity of a description specified in the notice;

(b)
that no member of the group is a ring-fenced body;

(c)
that there is no member of the group with a Part 4A permission to carry

on a regulated activity which is not a ring-fenced body.

(4)
The notice must—

(a)
specify a period, of not less than 3 months, during which any member of

the group may make representations to the appropriate regulator in

relation to its proposal, and

(b)
name an independent reviewer who is to report on the conduct of the

members of the group and the appropriateness of the proposal made by

the appropriate regulator.

(5)
A person may not be named as the independent reviewer without the consent of

the chairman of the Treasury Committee of the House of Commons; and the

reference in this subsection to the Treasury Committee of the House of

Commons—

(a)
if the name of that Committee is changed, is to be treated as a reference

to that Committee by its new name, and

(b)
if the functions of that Committee (or substantially corresponding

functions) become functions of a different Committee of the House of

Commons, is to be treated as a reference to the Committee by which the

functions are exercisable;


and any question arising under this paragraph (a) or (b) is to be determined by the

Speaker of the House of Commons.

(6)
After receiving any representations made in relation to the proposal by members

of the group and the report of the independent reviewer, the appropriate regulator

must decide whether it intends to implement the proposal.

(7)
If the appropriate regulator decides that it does intend to implement the proposal,

it must publish notice of the proposal, and of its decision to implement it, at least

60 days before it is implemented.

(8)
A person who is aggrieved by the decision of the appropriate regulator that it

intends to implement the proposal may refer the matter to the Tribunal.

(9)
The proposal may not be implemented without the consent of the Treasury; and

the Treasury must publish their decision on any application made by the

appropriate regulator for consent, together with their reasons for the decision, at

least 60 days before it is implemented.

(10)
Once the Treasury has consented to the implementation of the proposal and

either—

(a)
any reference to the Tribunal under subsection (8) has been dismissed, or

(b)
the period for making such a reference to the Tribunal has expired

without a reference having been made,


the appropriate regulator may implement the proposal by giving notice to the

members of the group requiring the taking of the relevant steps specified in the

proposal before the date so specified.

(11)
If the relevant steps have not been taken by the specified date, the appropriate

regulator may—

Notices of Amendments: 14 March 2013
18

Financial Services (Banking Reform) Bill, continued

(a)
in a case where the relevant steps are aimed at securing the result in

paragraph (a) of subsection (3), take the action specified in subsection

(12),

(b)
in a case where the relevant steps are aimed at securing the result in

paragraph (b) of subsection (3), take the action specified in subsection

(13), or

(c)
in a case where the relevant steps are aimed at securing the result in

paragraph (c) of subsection (3), take the action specified in subsection

(14).

(12)
The action referred to in paragraph (a) of subsection (11) is—

(a)
to cancel the Part 4A permission of any member of the group to carry on

the regulated activity specified in the notice, and

(b)
to refuse to give a Part 4A permission to any member of the group to

carry on that activity.

(13)
The action referred to in paragraph (b) of subsection (11) is—

(a)
to cancel the Part 4A permission of any member of the group that is a

ring-fenced body to the extent that it relates to a core activity, and

(b)
to refuse to give any member of the group a Part 4A permission to carry

on a core activity.

(14)
The action referred to in paragraph (c) of subsection (11) is—

(a)
to cancel the Part 4A permission of any member of the group that is not

a ring-fenced body, and

(b)
to refuse to give a Part 4A permission to any member of the group that is

not a ring-fenced body.’.

Chris Leslie

Cathy Jamieson

21

Clause  20,  page  21,  line  23,  at end insert—

‘( )
No order may be made appointing a day for the coming into force of section 4 so

far as it inserts section 142JC of FSMA 2000 unless the day is later than that on

which the report of the first review under section 142J of that Act is published.’.

Chris Leslie

Cathy Jamieson

22

Clause  4,  page  9,  line  21,  at end insert—

‘Full separation

142JD
General requirement of separation

(1)
Where the members of any group include one or more ring-fenced bodies and one

or more other bodies, the members of the group must, before the end of the period

of five years beginning with the relevant commencement date, take steps to

secure that there are no members of the group that are ring-fenced bodies.

(2)
If in the case of any group steps to secure that there are no members of the group

that are ring-fenced bodies are not taken within the period specified in subsection

(1)—

(a)
at the end of that period the Part 4A permission of each member of the

group that is a ring-fenced body shall be treated as having been cancelled

to the extent that it relates to a core activity, and



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