House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 19 March 2013
61

Financial Services (Banking Reform) Bill, continued

(6)
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

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.’.

Public Bill Committee: 19 March 2013
62

Financial Services (Banking Reform) Bill, continued

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.’.

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.’.

Public Bill Committee: 19 March 2013
63

Financial Services (Banking Reform) Bill, continued

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.”.’.

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.

(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.’.

Public Bill Committee: 19 March 2013
64

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: 19 March 2013
65

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.’.

Public Bill Committee: 19 March 2013
66

Financial Services (Banking Reform) Bill, continued

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.’.

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.”.’.

Bank bail-in regime

Chris Leslie

Cathy Jamieson

NC19

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—

Public Bill Committee: 19 March 2013
67

Financial Services (Banking Reform) Bill, continued

(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.

(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

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);



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