Session 2012 - 13
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Other Bills before Parliament


 
 

Notices of Amendments: 15 March 2013                  

39

 

Financial Services (Banking Reform) Bill, continued

 
 

operate, which can be issued by the appropriate regulator if it

 

determines that an approved person has broken the code;

 

(d)    

specify the training, including both practical and ethical, which

 

approved persons must undergo before practising controlled

 

functions; and

 

(e)    

specify the additional training to be provided by institutions for

 

their staff and set out the system by which institutions will

 

monitor and enforce such a code.”.’.

 


 

Duty of care

 

Chris Leslie

 

Cathy Jamieson

 

NC5

 

Parliamentary Star - white    

To move the following Clause:—

 

‘At all times when carrying out core activities a ring-fenced body shall—

 

(a)    

be subject to a fiduciary duty towards its customers in the operation of

 

core services; and

 

(b)    

be subject to a duty of care towards its customers across the financial

 

services sector.’.

 


 

Remuneration consultants

 

Chris Leslie

 

Cathy Jamieson

 

NC6

 

Parliamentary Star - white    

To move the following Clause:—

 

‘The Secretary of State will by regulations provide for a requirement that the

 

remuneration consultants advising on remuneration policy shall be appointed by

 

the shareholders of a relevant financial institution.’.

 



 
 

Notices of Amendments: 15 March 2013                  

40

 

Financial Services (Banking Reform) Bill, continued

 
 

Remuneration committee

 

Chris Leslie

 

Cathy Jamieson

 

NC7

 

Parliamentary Star - white    

To move the following Clause:—

 

‘The Secretary of State will provide for a requirement that an employee

 

representative should be a member of the remuneration committee of a relevant

 

financial institution.’.

 


 

Financial Crime Unit

 

Chris Leslie

 

Cathy Jamieson

 

NC8

 

Parliamentary Star - white    

To move the following Clause:—

 

‘(1)    

The Secretary of State shall by order create a new Financial Crime Unit as part of

 

the Serious Fraud Office for the purpose of tackling financial crime, using

 

resources from the proceeds of penalties paid to the FCA.

 

(2)    

The Treasury shall conduct a review into the creation of the Financial Crime Unit

 

and consult on its proposals for the Financial Crime Unit’s powers and

 

responsibilities.

 

(3)    

The Treasury shall lay its proposals before both Houses of Parliament no later

 

than six months after this Act comes into force.

 

(4)    

The orders under subsection (1) may make such amendments to legislation as

 

appear to the Treasury to be necessary or expedient for the purpose of creating the

 

Financial Crime Unit.

 

(5)    

The orders under subsection (1) may only be made if they have been laid before

 

and approved by a resolution of each House of Parliament.’.

 


 

Protection for whistleblowers

 

Chris Leslie

 

Cathy Jamieson

 

NC9

 

Parliamentary Star - white    

To move the following Clause:—

 

‘After Part IVA (43B)(f) of the Employment Rights Act 1996 there is inserted—

 

“(g)    

that a breach of regulated activities under FSMA 2000 or the

 

Financial Services Act 2012 has been committed, is being

 

committed, or is likely to be committed.”.’.

 



 
 

Notices of Amendments: 15 March 2013                  

41

 

Financial Services (Banking Reform) Bill, continued

 
 

Remuneration reform

 

Chris Leslie

 

Cathy Jamieson

 

NC10

 

Parliamentary Star - white    

To move the following Clause:—

 

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

 

shall lay before Parliament proposals on reform of remuneration at UK financial

 

institutions which shall include incentives to take account of the performance and

 

stability of a UK financial institution over a five- to 10-year period.’.

 


 

Review into competitiveness

 

Chris Leslie

 

Cathy Jamieson

 

NC11

 

Parliamentary Star - white    

To move the following Clause:—

 

‘(1)    

The Treasury shall arrange for a review of the obstacles to increasing competition

 

for UK institutions involved in the provision of core services.

 

(2)    

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

 

the date on which this Act comes into force.

 

(3)    

The review must consider, in particular—

 

(a)    

the major obstacle to new UK institutions emerging as competitors in the

 

provision of core services, and

 

(b)    

possible actions that could be taken to facilitate new UK institutions

 

being competitive in the provision of core services.

 

(4)    

The review must result in a report to the Treasury.

 

(5)    

The Treasury shall lay a copy of the report before Parliament.’.

 


 

Bank account portability

 

Chris Leslie

 

Cathy Jamieson

 

NC12

 

Parliamentary Star - white    

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.’.

 



 
 

Notices of Amendments: 15 March 2013                  

42

 

Financial Services (Banking Reform) Bill, continued

 
 

Financial inclusion

 

Chris Leslie

 

Cathy Jamieson

 

NC13

 

Parliamentary Star - white    

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) 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

 

Parliamentary Star - white    

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

 

Parliamentary Star - white    

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—

 

(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.’.

 



 
 

Notices of Amendments: 15 March 2013                  

43

 

Financial Services (Banking Reform) Bill, continued

 
 

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

 

Medium enterprises

 

Chris Leslie

 

Cathy Jamieson

 

NC16

 

Parliamentary Star - white    

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

 

Parliamentary Star - white    

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: 15 March 2013                  

44

 

Financial Services (Banking Reform) Bill, continued

 
 

Mutual societies

 

Chris Leslie

 

Cathy Jamieson

 

NC18

 

Parliamentary Star - white    

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.”.’.

 


 

Bank bail-in regime

 

Chris Leslie

 

Cathy Jamieson

 

NC19

 

Parliamentary Star - white    

To move the following Clause:—

 

‘(1)    

The Bank of England must, at least once in every year, prepare an assessment of

 

any progress which has been made towards the introduction of a bank bail-in

 

regime in the United Kingdom or, once a bank bail-in regime has been

 

introduced, of its operation.

 

(2)    

If a bank bail-in regime is not in force in the United Kingdom by the end of 2015,

 

the Treasury must by regulations make provision for such a regime.

 

(3)    

an assessment under subsection (1) must include—

 

(a)    

an assessment of how much of the issued debt of banks would be covered

 

by any proposed bank bail-in regime or is covered by the provisions of

 

the bank bail-in regime in force;

 

(b)    

(if a bank bail-in regime is in force) an account of the sorts of companies

 

within groups which have creditors who are covered by the bank bail-in

 

regime and of the sorts of persons who are creditors who are so covered;

 

(c)    

a review of the descriptions of creditors who would be covered by any

 

proposed bail-in regime or are covered by the provisions of the bank bail-

 

in regime in force, and

 

(d)    

an account of progress towards international co-operation in relation to

 

bail-in regimes.

 

(4)    

The Bank of England must send the assessment to the Treasury.

 

(5)    

The Treasury must lay the assessment before Parliament.

 

(6)    

The Bank of England must publish the assessment in such manner as they think

 

fit.

 

(7)    

In this section “bank bail-in regime” means provisions under which losses

 

incurred by a bank are to be met by certain descriptions of creditors of the bank

 

should the bank encounter financial difficulties which might otherwise lead to the

 

taking of action which would be likely to have implications for public funds.

 

(8)    

For the purposes of subsection (7) “action having implications for public funds”

 

has the same meaning as in section 78(1) of the Banking Act 2009.


 
 

Notices of Amendments: 15 March 2013                  

45

 

Financial Services (Banking Reform) Bill, continued

 
 

(9)    

In this section “bank” means a UK institution which has permission under Part

 

4A of FSMA 2000 to carry on the regulated activity of accepting deposits, other

 

than a building society (within the meaning of the Building Societies Act 1986)

 

or any description of institution excluded by virtue of subsection (2)(b) of section

 

142A of that Act from being a ring-fenced body as defined in subsection (1) of

 

that section.’.

 


 

Annual assessment of developments in respect of risk-weighting

 

Chris Leslie

 

Cathy Jamieson

 

NC20

 

Parliamentary Star - white    

To move the following Clause:—

 

‘(1)    

The Bank of England must, at least once in every year, prepare an assessment of

 

developments in respect of risk-weighting in relation to banks and building

 

societies.

 

(2)    

The Bank must send the assessment to the Treasury.

 

(3)    

The Treasury must lay the assessment before Parliament.

 

(4)    

The Bank of England must publish the assessment in such manner as they think

 

fit.

 

(5)    

In this section “risk weighting” means the process by which the assets of a bank

 

or building society are accorded a risk weight.

 

(6)    

In this section—

 

“bank” means a UK institution which has permission under Part 4A of

 

FSMA 2000 to carry on the regulated activity of accepting deposits, other

 

than any description of institution excluded by virtue of subsection (2)(b)

 

of section 142A of that Act from being a ring-fenced body as defined in

 

subsection (1) of that section (or a building society);

 

“building society” has the same meaning as in the Building Societies Act

 

1986;

 

“risk weight” means a percentage that is derived from the risk to the value

 

of an asset.’.

 


 

Chris Leslie

 

Cathy Jamieson

 

31

 

Parliamentary Star - white    

Title,  line  4,  after ‘insolvency;’, insert ‘to make provision in relation to a bank bail-in

 

regime;’.


 
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Revised 18 March 2013