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| given up to and including |
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| New Amendments handed in are marked thus  |
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| Financial Services (Banking Reform) Bill
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| Mr Chancellor of the Exchequer |
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| To move the following Clause:— |
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| | ‘Schedule [Minor amendments] (which contains amendments of, or connected |
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| | with, the Financial Services Act 2012 and amendments of provisions amended by |
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| | Burden of proof: persons performimg significant influence functions |
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| To move the following Clause:— |
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| | ‘(1) | The Financial Services and Markets Act 2000 is amended as follows. |
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| | (2) | In section 66 (disciplinary powers), at end insert— |
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| | “(10) | In determining whether a person performing a significant influence |
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| | function is guilty of misconduct under this section, where some evidence |
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| | of misconduct exists, it shall be for him to prove his standard of |
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| | behaviour was reasonable in all the circumstances.”.’. |
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| To move the following Clause:— |
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| | ‘After section 65 of FSMA 2000 insert— |
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| | “65A | Professional Standards |
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| | (1) | The regulator will raise standards of professionalism in financial services |
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| | by mandating a licensing regime based on training and competence. This |
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| | (a) | apply to all approved persons exercising controlled functions, |
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| | regardless of financial sector; |
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| | (b) | specify minimum thresholds of competence including integrity, |
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| | professional qualifications, continuous professional |
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| | development and adherence to a recognised code of conduct and |
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| | revised Banking Standards Rules; |
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| | (c) | make provisions in connection with— |
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| | (i) | the granting of a licence; |
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| | (ii) | the refusal of a licence; |
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| | (iii) | the withdrawal of a licence; and |
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| | (iv) | the revalidation of a licensed person of a prescribed |
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| | description whenever the appropriate regulator sees fit, |
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| | either as a condition of the person continuing to hold a |
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| | licence or of the person’s licence being restored; |
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| | (d) | be evidenced by individuals holding an annual validation of |
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| | (e) | include specific provision for a Senior Persons Regime in |
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| | relation to activities involving the exercise of a significant |
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| | influence over a controlled function under section 59 of the Act. |
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| | (2) | In section 59, remove “authorised” and insert “licensed” throughout the |
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| To move the following Clause:— |
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| | ‘At all times when carrying out core activities a ring-fenced body shall— |
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| | (a) | be subject to a fiduciary duty towards its customers in the operation of |
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| | (b) | be subject to a duty of care towards it customers across the financial |
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| To move the following Clause:— |
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| | ‘Within six months of Royal Assent of this Act the Chancellor of the Exchequer |
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| | shall, in consultation with the appropriate regulation, lay before Parliament |
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| | proposals on reform of remuneration at UK financial institutions which shall |
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| | include incentives to take account of the performance and stability of a UK |
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| | financial institution over a five- to 10-year period.’. |
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| | Protection for whistleblowers |
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| To move the following Clause:— |
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| | ‘(1) | After section 43B(f) of the Employment Rights Act 1996 there is inserted— |
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| | “(g) | that a breach of regulated activities under FSMA 2000 or the |
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| | Financial Services Act 2012 has been committed, is being |
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| | committed, or is likely to be committed.”. |
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| | (2) | After section 43B(5) of the Employment Rights Act 1996 there is inserted— |
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| | | “The chairman of the board of directors of any relevant UK financial |
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| | institution will be informed of any protected disclosure made by a worker |
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| | which qualifies under the terms of Part IVA of this Act.”.’. |
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| | Competition and Markets Authority review into competitiveness |
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| To move the following Clause:— |
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| | ‘(1) | The Chancellor of the Exchequer shall instruct the Competition and Markets |
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| | Authority to begin a full market study, according to its powers under the |
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| | Enterprise Act 2002, into UK financial services institutions involved in the |
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| | provision of core services. |
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| | (2) | The full market study will consider: |
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| | (a) | the level of competition among UK institutions involved in the provision |
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| | (b) | the obstacles to increasing competition for UK institutions involved in |
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| | the provision of core services. |
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| | (c) | possible actions that could be taken to facilitate new UK institutions |
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| | being competitive in the provision of core services. |
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| | (3) | The full market study will be published within a year of Royal Assent of this Act. |
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| | (4) | The review must result in a report to the Treasury. |
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| | (5) | The Treasury shall lay a copy of the report before both Houses of Parliament.’. |
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| To move the following Clause:— |
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| | ‘(1) | The Bank of England Act 1998 is amended as follows. |
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| | (2) | In Part 1A section 9D(1), for “may”, substitute “shall”. |
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| | (3) | In Part 1A after section 9D(1) insert— |
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| | “(1A) | The notice in subsection (1) shall include a target for the overall leverage |
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| | of the UK’s financial system, to encompass also the activities of foreign |
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| | financial institutions and non-bank originators of credit.” |
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| | (4) | After section 9D(3) insert— |
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| | “(4) | After each three month period, the Financial Policy Committee must |
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| | respond to the notice of the economic policy of Her Majesty’s |
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| | Government in subsection (1) by notifying the Treasury of— |
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| | (a) | any action that the Committee has taken to regulate leverage in |
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| | the financial system to the identified target in a manner |
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| | consistent with maintaining adequate credit availability and |
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| | growth in the economy, or |
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| | (b) | the Committee’s reasons for not intending to act to regulate |
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| | leverage in the financial system to the identified target. |
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| | (5) | Notificatiopn under subsection (4) must be given in writing. |
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| | (a) | publish in such a manner as they think fit any notification |
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| | received under subsection (4), and |
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| | (b) | lay a copy of such a notification before Parliament.”.’. |
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| | Sale of state-owned banking assets |
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| To move the following Clause:— |
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| | ‘(1) | Before the sale of banking assets in the ownership of HM Treasury, the Treasury |
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| | shall lay before Parliament a report setting out— |
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| | (a) | the manner in which the best interests of the taxpayer are to be protected |
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| | in connection with such sale, |
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| | (b) | the expected impact that any sale might have on competition for the |
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| | provision of core services, customer choice and the rate of economic |
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| | (c) | an appraisal of the options for potential structural changes in the bank |
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| | (i) | the separation of the provision of core services from the |
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| | provision of investment activities, |
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| | (ii) | the retention of a class of assets in the ownership of HM |
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| | (iii) | the impact of any sale on the creation of a regional banking |
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| | (2) | A copy of the report in subsection (1) shall be laid before Parliament and |
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| | sufficient time shall be given for the appropriate committees of both Houses of |
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| | Parliament to consider its findings before any sale decision.’. |
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| | Reckless misconduct in the management of a bank |
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| To move the following Clause:— |
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| | ‘(1) | Within the three months of Royal Assent of this Act the Government shall publish |
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| | proposals for the creation of a new criminal offence of reckless misconduct in the |
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| | (2) | The new offence in subsection (2) should cover those approved persons who are |
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| | licensed under a Senior Persons Regime. |
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| | (3) | The Government shall bring forward further proposals within three months of |
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| | Royal Assent of this Act for the civil recovery of monies obtained by individuals |
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| | who have been found guilty of reckless misconduct in the management of a |
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| To move the following Clause:— |
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| | ‘(1) | Within six months of Royal Assent of this Act, the Treasury shall lay before |
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| | Parliament a report considering— |
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| | (a) | the adequacy of voluntary arrangements made by UK ring-fenced bodies |
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| | to facilitate easier customer switching of bank account services; and |
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| | (b) | legislative options for the introduction of portable account numbers and |
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| | sort codes for retail bank accounts provided by UK ring-fenced bodies. |
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| | (2) | The Chancellor of the Exchequer may, by affirmative order to tbe approved by |
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| | both Houses of Parliament, confer powers upon the appropriate regulator to |
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| | require UK ring-fenced bodies to comply with any specified scheme to establish |
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| | the use of portable account numbers and sort codes.’. |
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| | Financial Services Crime Unit |
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| To move the following Clause:— |
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| | ‘(1) | The Treasury shall conduct a review into the creation of the Financial Services |
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| | Crime Unit and consult on its proposals for the Financial Services Crime Unit’s |
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| | powers and responsibilities. |
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| | (2) | The Treasury shall lay its proposals before both Houses of Parliament no later |
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| | than six months after this Act comes into force.’. |
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| | Portable account numbers (No. 2) |
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| To move the following Clause:— |
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| | ‘(1) | Within 12 months of Royal Assent of this Act, the Treasury shall lay before |
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| | Parliament a fully independent and comprehensive report detailing the options for |
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| | introducing portable account numbers for bank accounts within the UK, |
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| | including a full cost benefit analysis of the available options. |
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| | (2) | The appropriate regulator may require banks and building societies to comply |
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| | with any scheme to introduce and facilitate the use of portable account numbers, |
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| | which is introduced in regulations made by the Treasury. |
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| | (3) | No regulations may be made by the Treasury under this section unless a draft of |
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| | the regulations has been laid before Parliament and approved by a resolution of |
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| Mr Chancellor of the Exchequer |
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| Clause 1, page 1, line 20, after ‘body’ insert ‘or of a member of a ring-fenced |
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| Mr Chancellor of the Exchequer |
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| Clause 1, page 2, line 10, at end insert— |
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| | ‘(5) | In section 2J of FSMA 2000 (interpretation of Chapter 2 of Part 1)— |
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| | (a) | in subsection (3) for “a PRA-authorised” substitute “an authorised”, |
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| | (b) | after that subsection insert— |
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