House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Public Bill Committee: 26 March 2013
100

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: 26 March 2013
101

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: 26 March 2013
102

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: 26 March 2013
103

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);

Public Bill Committee: 26 March 2013
104

Financial Services (Banking Reform) Bill, continued

“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.’.

Financial services compensation scheme extension

Chris Leslie

Cathy Jamieson

NC21

To move the following Clause:—

‘(1)
Section 213 of FSMA 2000 (The compensation scheme) is amended as follows.

(2)
In subsection (1A)—

(a)
omit the “and” following paragraph (a),

(b)
after paragraph (b) insert—


“and

(c)
that where a relevant person operates under more than

one brand, the compensation scheme applies to each

brand as if each was a separate authorised person.”.

(3)
In subsection 3—

(a)
omit the “and” following paragraph (a),

(b)
after that paragraph insert—

“(aa)
to extend the limit of any compensation payable to

persons making a claim in appropriate circumstances

where the loss exceeds the limit that would otherwise

apply as a result of a temporary high deposit, and”.’.

Chris Leslie

Cathy Jamieson

31

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

regime;’.

Chris Leslie

Cathy Jamieson

33

Title,  line  4,  after ‘insolvency;’, insert ‘to make provision for reports relating to

developments in respect of risk-weighting;’.

Public Bill Committee: 26 March 2013
105

Financial Services (Banking Reform) Bill, continued

Order of the House [11 MARCH 2013]

That the following provisions shall apply to the Financial Services (Banking Reform)

Bill:

Committal

1.
The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.
Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Thursday 18 April 2013.

3.
The Public Bill Committee shall have leave to sit twice on the first day on

which it meets.

Consideration and Third Reading

4.
Proceedings on Consideration shall (so far as not previously concluded) be

brought to a conclusion one hour before the moment of interruption on the

day on which those proceedings are commenced.

5.
Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion at the moment of interruption on that day.

6.
Standing Order No. 83B (Programming committees) shall not apply to

proceedings on Consideration and Third Reading.

Other proceedings

7.
Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

Order of the Committee [19 MARCH 2013]

That—

(1)
the Committee shall (in addition to its first meeting at 8.55 am on Tuesday 19

March) meet—

(a)
at 2.00 pm on Tuesday 19 March;

(b)
at 11.30 am and 2.00 pm on Thursday 21 March;

(c)
at 9.10 am and 2.00 pm on Tuesday 26 March;

(d)
at 9.10 am and 2.00 pm on Tuesday 16 April; and

(e)
at 11.30 am and 2.00 pm on Thursday 18 April;

(2)
the proceedings shall be taken in the following order: Clauses 1 to 7; the

Schedule; Clauses 8 to 20; new Clauses; new Schedules; remaining

proceedings on the Bill;

(3)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 5.00 pm on Thursday 18 April.



© Parliamentary copyright	Revised 26 March 2013