Session 2012 - 13
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Other Bills before Parliament


 
 

109

 

House of Commons

 
 

Tuesday 16 April 2013

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Financial Services (Banking Reform) Bill


 

Note

 

The Amendments have been arranged in accordance with the Order of the

 

Committee [19 March].

 


 

New Clauses

 

FSCS review of company savings schemes

 

Chris Leslie

 

Cathy Jamieson

 

NC2

 

To move the following Clause:—

 

‘(1)    

The Chief Executive of the Financial Services Compensation Scheme shall,

 

within six months of Royal Assent of this Act, publish a review of the protections

 

necessary for customers who make payments to any bodies corporate on the

 

understanding that such payments are deposits in a saving scheme.

 

(2)    

The review in subsection (1) shall include consideration of any consequential

 

reform to creditor preference arrangements so that any payments made in advance

 

as part of a contract for the receipt of goods or services (such as gift vouchers,

 

certificates or other forms of pre-payment) in expectation that those sums would

 

be redeemable in a future exchange for such goods or services might be

 

considered as preferential debts in the event of insolvency.’.

 



 
 

Public Bill Committee: 16 April 2013                  

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Financial Services (Banking Reform) Bill, continued

 
 

Professional standards

 

Chris Leslie

 

Cathy Jamieson

 

NC3

 

To move the following Clause:—

 

‘After section 65 of FSMA 2000 insert—

 

“Section 65A

 

Professional Standards

 

(1)    

The regulator will raise standards of professionalism in financial services

 

by mandating a licensing regime based on training and competence. This

 

must—

 

(a)    

apply to all approved persons exercising controlled functions,

 

regardless of financial sector;

 

(b)    

specify minimum thresholds of competence including integrity,

 

professional qualifications, continuous professional

 

development and adherence to a recognised code of conduct;

 

(c)    

make provisions in connection with—

 

(i)    

the granting of a licence;

 

(ii)    

the refusal of a licence;

 

(iii)    

the withdrawal of a licence; and

 

(iv)    

the revalidation of a licensed person of a prescribed

 

description whenever the appropriate regulator sees fit,

 

either as a condition of the person’s continuing to hold a

 

licence or of the person’s licence being restored.

 

(d)    

be evidenced by individuals holding an annual validation of

 

competence.

 

(2)    

In the Financial Services and Markets Act 2000, section 59, remove

 

“authorised” and insert “licensed” throughout the section.’.

 


 

Code of conduct

 

Chris Leslie

 

Cathy Jamieson

 

NC4

 

To move the following Clause:—

 

‘After section 64(6) of FSMA 2000 insert—

 

“(6A)    

A code issued under subsection (2) shall—

 

(a)    

apply to all approved persons exercising controlled functions in

 

the financial sector;

 

(b)    

specify a framework of certain permitted and prohibited actions

 

with which approved persons must agree in writing to comply;

 

(c)    

mandate individual financial penalties, and the terms of

 

temporary and permanent suspension of persons’ licence to


 
 

Public Bill Committee: 16 April 2013                  

111

 

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

 

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

 

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.’.

 



 
 

Public Bill Committee: 16 April 2013                  

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Financial Services (Banking Reform) Bill, continued

 
 

Remuneration committee

 

Chris Leslie

 

Cathy Jamieson

 

NC7

 

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

 

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

 

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.”.’.

 



 
 

Public Bill Committee: 16 April 2013                  

113

 

Financial Services (Banking Reform) Bill, continued

 
 

Remuneration reform

 

Chris Leslie

 

Cathy Jamieson

 

NC10

 

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

 

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.

5

(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.

10

(4)    

The review must result in a report to the Treasury.

 

(5)    

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

 

As an Amendment to Chris Leslie’s proposed New Clause (Review into

 

competitiveness) (NC11):—

 

Mark Durkan

 

(a)

 

Line  9,  at end insert—

 

‘(c)    

any evidence of impaired access to competitive core services in

 

identifiable regions of the UK or for particular classes of consumers.’.

 



 
 

Public Bill Committee: 16 April 2013                  

114

 

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) 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.”.’.

 



 
 

Public Bill Committee: 16 April 2013                  

115

 

Financial Services (Banking Reform) Bill, continued

 
 

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—

 

(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.’.

 



 
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Revised 16 April 2013