Session 2012 - 13
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Other Bills before Parliament


 
 

21

 

House of Commons

 
 

Tuesday 16 April 2013

 

Public Bill Committee Proceedings

 

Financial Services (Banking Reform) Bill


 

[Seventh and Eighth Sittings]


 

New Clauses

 

FSCS review of company savings schemes

 

Chris Leslie

 

Cathy Jamieson

 

Withdrawn  NC2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.’.

 


 

Professional standards

 

Chris Leslie

 

Cathy Jamieson

 

Negatived on division  NC3

 

To move the following Clause:—

 

‘After section 65 of FSMA 2000 insert—


 
 

Public Bill Committee Proceedings: 16 April 2013          

22

 

Financial Services (Banking Reform) Bill, continued

 
 

“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

 

Not called  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


 
 

Public Bill Committee Proceedings: 16 April 2013          

23

 

Financial Services (Banking Reform) Bill, continued

 
 

(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

 

Withdrawn  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

 

Withdrawn  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

 

Not called  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.’.

 



 
 

Public Bill Committee Proceedings: 16 April 2013          

24

 

Financial Services (Banking Reform) Bill, continued

 
 

Financial Crime Unit

 

Chris Leslie

 

Cathy Jamieson

 

Withdrawn  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

 

Withdrawn  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

 

Not called  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


 
 

Public Bill Committee Proceedings: 16 April 2013          

25

 

Financial Services (Banking Reform) Bill, continued

 
 

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

 

Withdrawn  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

 

Not called  (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.’.

 


 

Bank account portability

 

Chris Leslie

 

Cathy Jamieson

 

Withdrawn  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,


 
 

Public Bill Committee Proceedings: 16 April 2013          

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Financial Services (Banking Reform) Bill, continued

 
 

(b)    

legislative options for mandating the provision of a current account

 

redirection service by UK ring-fenced bodies.’.

 


 

Financial inclusion

 

Chris Leslie

 

Cathy Jamieson

 

Not called  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

 

Withdrawn  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

 

Not called  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,


 
 

Public Bill Committee Proceedings: 16 April 2013          

27

 

Financial Services (Banking Reform) Bill, continued

 
 

(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

 

Not called  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

 

Not selected  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


 
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Revised 17 April 2013