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| Financial Services (Banking Reform) Bill
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| | The Amendments have been arranged in accordance with the Order of the House |
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| New Clauses relating to competition |
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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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| | 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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| To move the following Clause:— |
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| | ‘(1) | Within three months of Royal Assent of this Act the Secretary of State shall |
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| | publish for consultation a report setting out proposals for the creation of networks |
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| | of local stakeholder banks. |
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| | (2) | This report shall contain an examination of stakeholder banking structures, |
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| | defined as credit institutions that are not owned by private shareholders, with the |
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| | with the aim of maximising shareholder returns. The examination should draw on |
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| | experience in the UK and elsewhere and include— |
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| | (c) | community development finance institutions (CDFIs); |
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| | (d) | public-interest savings banks. |
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| | (3) | The report shall examine potential impacts of the creation of networks of local |
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| | (a) | customer service and product range, |
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| | (b) | accessibility to banking services for customer underserved by |
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| | (d) | accountability to local stakeholders. |
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| | (4) | A copy of this report and the outcome of the full consultation shall be laid before |
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| | Parliament and sufficient time shall be given for consideration of its findings by |
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| | members of relevant committees of both Houses before any decisions are taken |
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| | on the sale of state-owned banking assets.’. |
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| New clauses relating to portability of bank accounts |
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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 be 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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| | 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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| Remaining proceedings on consideration |
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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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| Mr Chancellor of the Exchequer |
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| Clause 4, page 3, line 35, at end insert— |
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| | ‘(3A) | Subject to that, in deciding whether and, if so, how to exercise their powers under |
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| | subsection (2)(b), the Treasury must have regard to the desirability of minimising |
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| | any adverse effect that the ring-fencing provisions might be expected to have on |
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| | competition in the market for services provided in the course of carrying on core |
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| | activities, including any adverse effect on the ease with which new entrants can |
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| | (3B) | In subsection (3A) “the ring-fencing provisions” means ring-fencing rules and the |
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| | duty imposed as a result of section 142G.’. |
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| Mr Chancellor of the Exchequer |
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| To move the following Schedule:— |
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| | Companies Act 1985 (c. 6) |
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| | 1 | In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29. |
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| | Financial Services and Markets Act 2000 (c. 8) |
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| | 2 | In section 376 of FSMA 2000 (continuation of contracts of long-term |
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| | insurance where insurer in liquidation), in subsection (11B), for “PRA- |
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| | authorised” substitute “PRA-regulated”. |
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| | 3 | In Schedule 17A to FSMA 2000 (further provision in relation to exercise of |
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| | Part 18 functions by Bank of England), in paragraph 10(1)(j), for “subsections |
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| | (1) and (3)” substitute “subsection (1)”. |
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| | Income Tax Act 2007 (c. 3) |
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| | 4 | In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections |
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| | (2)(b) and (3), for “Part 4” substitute “Part 4A”. |
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| | 5 | In section 89B of the Banking Act 2009 (application to recognised central |
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| | counterparties), in the Table in subsection (6), in the entry relating to section |
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| | 81B, in the second column, after the modification of subsection (1) of that |
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| | “In subsection (2), for “PRA” substitute “Bank of |
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| | 6 | In section 191 of the Banking Act 2009 (directions), in subsection (1), after |
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| | “inter-bank” insert “payment”. |
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| | Financial Services Act 2012 (c. 21) |
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| | 7 | In section 73 of the Financial Services Act 2012 (duty of FCA to investigate |
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| | and report on possible regulatory failure), in subsection (1)(b)(i)— |
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| | (a) | for “their activities,” substitute “of the carrying on of regulated |
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| | (b) | for “or for the regulation of collective investment schemes” substitute |
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| | “, for the regulation of collective investment schemes or for the |
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| | regulation of recognised investment exchanges,”’. |
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| | 8 (1) | Section 85 of the Financial Services Act 2012 (relevant functions in relation to |
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| | complaints scheme) is amended as follows. |
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| | (2) | For subsection (2) substitute— |
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| | “(2) | The relevant functions of the FCA or the PRA are— |
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| | (a) | its functions conferred by or under FSMA 2000, other than its |
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| | legislative functions, and |
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| | (b) | such other functions as the Treasury may by order provide.” |
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| | (3) | For subsection (3) substitute— |
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| | “(3) | The relevant functions of the Bank of England are— |
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| | (a) | its functions under Part 18 of FSMA 2000 (recognised |
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| | clearing houses) or under Part 5 of the Banking Act 2009 |
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| | (inter-bank payment systems), other than its legislative |
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| | (b) | such other functions as the Treasury may by order provide.” |
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| | (4) | In subsections (4) and (5), for “subsection (2)” substitute “subsection (2)(a)”. |
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| | (5) | In subsections (6) and (7), for “subsection (3)” substitute “subsection (3)(a)”. |
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| | (6) | After subsection (7) insert— |
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| | “(8) | For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA |
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| Mr Chancellor of the Exchequer |
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| Schedule, page 22, line 22, leave out ‘subsidiary’ and insert ‘body’. |
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| Mr Chancellor of the Exchequer |
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| Schedule, page 22, line 28, leave out ‘subsidiary’ and insert ‘body’. |
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| Mr Chancellor of the Exchequer |
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| Schedule, page 22, line 30, leave out ‘subsidiary undertaking’ and insert ‘member of |
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| Mr Chancellor of the Exchequer |
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| Schedule, page 23, line 3, at end insert— |
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| | ‘(d) | making provision in connection with the implementation of proposals |
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| | that would involve a body corporate whose group includes the transferee |
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| | becoming a ring-fenced body while one or more other members of the |
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| | transferee’s group are not ring-fenced bodies.’. |
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| Mr Chancellor of the Exchequer |
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| Schedule, page 23, line 24, at end insert— |
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| | ‘(2B) | In deciding whether to give consent, the PRA must have regard to the |
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| | scheme report prepared under section 109A in relation to the ring- |
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| | fencing transfer scheme.’. |
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| Mr Chancellor of the Exchequer |
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| Schedule, page 23, line 24, at end insert— |
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| | ‘6A | For the heading to section 109 substitute “Scheme reports: insurance business |
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| | 6B | After section 109 insert— |
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| | “109A | Scheme reports: ring-fencing transfer schemes |
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| | (1) | An application under section 106B in respect of a ring-fencing transfer |
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| | scheme must be accompanied by a report on the terms of the scheme |
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| | (2) | A scheme report may be made only by a person— |
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| | (a) | appearing to the PRA to have the skills necessary to enable the |
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| | person to make a proper report, and |
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| | (b) | nominated or approved for the purpose by the PRA. |
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| | (3) | A scheme report must be made in a form approved by the PRA. |
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| | (4) | A scheme report must state— |
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| | (a) | whether persons other than the transferor concerned are likely |
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| | to be adversely affected by the scheme, and |
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| | (b) | if so, whether the adverse effect is likely to be greater than is |
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| | reasonably necessary in order to achieve whichever of the |
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| | purposes mentioned in section 106B(3) is relevant. |
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| | (5) | The PRA must consult the FCA before— |
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| | (a) | nominating or approving a person under subsection (2)(b), or |
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| | (b) | approving a form under subsection (3).”’. |
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| | Order of the House [11 MARCH 2013] |
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| | That the following provisions shall apply to the Financial Services (Banking Reform) |
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| | 1. | The Bill shall be committed to a Public Bill Committee. |
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| | Proceedings in Public Bill Committee |
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| | 2. | Proceedings in the Public Bill Committee shall (so far as not previously |
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| | concluded) be brought to a conclusion on Thursday 18 April 2013. |
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| | 3. | The Public Bill Committee shall have leave to sit twice on the first day on |
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| | Consideration and Third Reading |
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| | 4. | Proceedings on Consideration shall (so far as not previously concluded) be |
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| | brought to a conclusion one hour before the moment of interruption on the |
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| | day on which those proceedings are commenced. |
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| | 5. | Proceedings on Third Reading shall (so far as not previously concluded) be |
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| | brought to a conclusion at the moment of interruption on that day. |
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