House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

573

House of Commons

Tuesday 9 July 2013

Consideration of Bill

Financial Services (Banking Reform) Bill

Note

The Amendments have been arranged in accordance with the Order of the House

[8 July 2013].

New Clauses relating to competition

Competition and Markets Authority review into competitiveness

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

NC8

To move the following Clause:—

‘(1)
The Chancellor of the Exchequer shall instruct the Competition and Markets

Authority to begin a full market study, according to its powers under the

Enterprise Act 2002, into UK financial services institutions involved in the

provision of core services.

(2)
The full market study will consider:

(a)
the level of competition among UK institutions involved in the provision

of core services.

(b)
the obstacles to increasing competition for UK institutions involved in

the provision of core services.

(c)
possible actions that could be taken to facilitate new UK institutions

being competitive in the provision of core services.

(3)
The full market study will be published within a year of Royal Assent of this Act.

(4)
The review must result in a report to the Treasury.

(5)
The Treasury shall lay a copy of the report before both Houses of Parliament.’.

Consideration of Bill: 9 July 2013
574

Financial Services (Banking Reform) Bill, continued

Sale of state-owned banking assets

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

NC10

To move the following Clause:—

‘(1)
Before the sale of banking assets in the ownership of HM Treasury, the Treasury

shall lay before Parliament a report setting out—

(a)
the manner in which the best interests of the taxpayer are to be protected

in connection with such sale,

(b)
the expected impact that any sale might have on competition for the

provision of core services, customer choice and the rate of economic

growth,

(c)
an appraisal of the options for potential structural changes in the bank

concerned including—

(i)
the separation of the provision of core services from the

provision of investment activities,

(ii)
the retention of a class of assets in the ownership of HM

Treasury,

(iii)
the impact of any sale on the creation of a regional banking

network.

(2)
A copy of the report in subsection (1) shall be laid before Parliament and

sufficient time shall be given for the appropriate committees of both Houses of

Parliament to consider its findings before any sale decision.’.

Local stakeholder banks

Caroline Lucas

NC15

To move the following Clause:—

‘(1)
Within three months of Royal Assent of this Act the Secretary of State shall

publish for consultation a report setting out proposals for the creation of networks

of local stakeholder banks.

(2)
This report shall contain an examination of stakeholder banking structures,

defined as credit institutions that are not owned by private shareholders, with the

with the aim of maximising shareholder returns. The examination should draw on

experience in the UK and elsewhere and include—

(a)
co-operative banks;

(b)
credit unions;

(c)
community development finance institutions (CDFIs);

(d)
public-interest savings banks.

(3)
The report shall examine potential impacts of the creation of networks of local

stakeholder banks on—

(a)
customer service and product range,

Consideration of Bill: 9 July 2013
575

Financial Services (Banking Reform) Bill, continued

(b)
accessibility to banking services for customer underserved by

commercial banks,

(c)
financial stability,

(d)
accountability to local stakeholders.

(4)
A copy of this report and the outcome of the full consultation shall be laid before

Parliament and sufficient time shall be given for consideration of its findings by

members of relevant committees of both Houses before any decisions are taken

on the sale of state-owned banking assets.’.

New clauses relating to portability of bank accounts

Portable account numbers

Ed Balls

Chris Leslie

Cathy Jamieson

Catherine McKinnell

NC12

To move the following Clause:—

‘(1)
Within six months of Royal Assent of this Act, the Treasury shall lay before

Parliament a report considering—

(a)
the adequacy of voluntary arrangements made by UK ring-fenced bodies

to facilitate easier customer switching of bank account services; and

(b)
legislative options for the introduction of portable account numbers and

sort codes for retail bank accounts provided by UK ring-fenced bodies.

(2)
The Chancellor of the Exchequer may, by affirmative order to be approved by

both Houses of Parliament, confer powers upon the appropriate regulator to

require UK ring-fenced bodies to comply with any specified scheme to establish

the use of portable account numbers and sort codes.’.

Portable account numbers (No. 2)

Andrea Leadsom

Mr Brooks Newmark

Mark Garnier

Mr David Ruffley

John Thurso

Teresa Pearce

John Mann

Mr Andrew Love

NC14

To move the following Clause:—

‘(1)
Within 12 months of Royal Assent of this Act, the Treasury shall lay before

Parliament a fully independent and comprehensive report detailing the options for

Consideration of Bill: 9 July 2013
576

Financial Services (Banking Reform) Bill, continued

introducing portable account numbers for bank accounts within the UK,

including a full cost benefit analysis of the available options.

(2)
The appropriate regulator may require banks and building societies to comply

with any scheme to introduce and facilitate the use of portable account numbers,

which is introduced in regulations made by the Treasury.

(3)
No regulations may be made by the Treasury under this section unless a draft of

the regulations has been laid before Parliament and approved by a resolution of

each House.’.

Remaining proceedings on consideration

Minor amendments

Mr Chancellor of the Exchequer

NC1

To move the following Clause:—

‘Schedule [Minor amendments] (which contains amendments of, or connected

with, the Financial Services Act 2012 and amendments of provisions amended by

that Act) has effect.’.

Mr Chancellor of the Exchequer

5

Clause  4,  page  3,  line  35,  at end insert—

‘(3A)
Subject to that, in deciding whether and, if so, how to exercise their powers under

subsection (2)(b), the Treasury must have regard to the desirability of minimising

any adverse effect that the ring-fencing provisions might be expected to have on

competition in the market for services provided in the course of carrying on core

activities, including any adverse effect on the ease with which new entrants can

enter the market.

(3B)
In subsection (3A) “the ring-fencing provisions” means ring-fencing rules and the

duty imposed as a result of section 142G.’.

Consideration of Bill: 9 July 2013
577

Financial Services (Banking Reform) Bill, continued

NEW SCHEDULE

Mr Chancellor of the Exchequer

NS1

To move the following Schedule:—

‘Minor Amendments

Companies Act 1985 (c. 6)

1
In Schedule 15D to the Companies Act 1985 (disclosures), omit paragraph 29.

Financial Services and Markets Act 2000 (c. 8)

2
In section 376 of FSMA 2000 (continuation of contracts of long-term

insurance where insurer in liquidation), in subsection (11B), for “PRA-

authorised” substitute “PRA-regulated”.

3
In Schedule 17A to FSMA 2000 (further provision in relation to exercise of

Part 18 functions by Bank of England), in paragraph 10(1)(j), for “subsections

(1) and (3)” substitute “subsection (1)”.

Income Tax Act 2007 (c. 3)

4
In section 991 of the Income Tax Act 2007 (meaning of “bank”), in subsections

(2)(b) and (3), for “Part 4” substitute “Part 4A”.

Banking Act 2009 (c. 1)

5
In section 89B of the Banking Act 2009 (application to recognised central

counterparties), in the Table in subsection (6), in the entry relating to section

81B, in the second column, after the modification of subsection (1) of that

section insert—

“In subsection (2), for “PRA” substitute “Bank of

England”.”

6
In section 191 of the Banking Act 2009 (directions), in subsection (1), after

“inter-bank” insert “payment”.

Financial Services Act 2012 (c. 21)

7
In section 73 of the Financial Services Act 2012 (duty of FCA to investigate

and report on possible regulatory failure), in subsection (1)(b)(i)—

(a)
for “their activities,” substitute “of the carrying on of regulated

activities,”, and

(b)
for “or for the regulation of collective investment schemes” substitute

“, for the regulation of collective investment schemes or for the

regulation of recognised investment exchanges,”’.

8    (1)
Section 85 of the Financial Services Act 2012 (relevant functions in relation to

complaints scheme) is amended as follows.

      (2)
For subsection (2) substitute—

“(2)
The relevant functions of the FCA or the PRA are—

Consideration of Bill: 9 July 2013
578

Financial Services (Banking Reform) Bill, continued

(a)
its functions conferred by or under FSMA 2000, other than its

legislative functions, and

(b)
such other functions as the Treasury may by order provide.”

      (3)
For subsection (3) substitute—

“(3)
The relevant functions of the Bank of England are—

(a)
its functions under Part 18 of FSMA 2000 (recognised

clearing houses) or under Part 5 of the Banking Act 2009

(inter-bank payment systems), other than its legislative

functions, and

(b)
such other functions as the Treasury may by order provide.”

      (4)
In subsections (4) and (5), for “subsection (2)” substitute “subsection (2)(a)”.

      (5)
In subsections (6) and (7), for “subsection (3)” substitute “subsection (3)(a)”.

      (6)
After subsection (7) insert—

“(8)
For the purposes of subsection (2), sections 1A(6) and 2A(6) of FSMA

2000 do not apply.”’.

Mr Chancellor of the Exchequer

11

Schedule,  page  22,  line  22,  leave out ‘subsidiary’ and insert ‘body’.

Mr Chancellor of the Exchequer

12

Schedule,  page  22,  line  28,  leave out ‘subsidiary’ and insert ‘body’.

Mr Chancellor of the Exchequer

13

Schedule,  page  22,  line  30,  leave out ‘subsidiary undertaking’ and insert ‘member of

the group’.

Mr Chancellor of the Exchequer

14

Schedule,  page  23,  line  3,  at end insert—

‘(d)
making provision in connection with the implementation of proposals

that would involve a body corporate whose group includes the transferee

becoming a ring-fenced body while one or more other members of the

transferee’s group are not ring-fenced bodies.’.

Mr Chancellor of the Exchequer

15

Schedule,  page  23,  line  24,  at end insert—

‘(2B)
In deciding whether to give consent, the PRA must have regard to the

scheme report prepared under section 109A in relation to the ring-

fencing transfer scheme.’.

Consideration of Bill: 9 July 2013
579

Financial Services (Banking Reform) Bill, continued

Mr Chancellor of the Exchequer

16

Schedule,  page  23,  line  24,  at end insert—

‘6A
For the heading to section 109 substitute “Scheme reports: insurance business

transfer schemes”.

6B
After section 109 insert—

“109A
Scheme reports: ring-fencing transfer schemes

(1)
An application under section 106B in respect of a ring-fencing transfer

scheme must be accompanied by a report on the terms of the scheme

(a “scheme report”).

(2)
A scheme report may be made only by a person—

(a)
appearing to the PRA to have the skills necessary to enable the

person to make a proper report, and

(b)
nominated or approved for the purpose by the PRA.

(3)
A scheme report must be made in a form approved by the PRA.

(4)
A scheme report must state—

(a)
whether persons other than the transferor concerned are likely

to be adversely affected by the scheme, and

(b)
if so, whether the adverse effect is likely to be greater than is

reasonably necessary in order to achieve whichever of the

purposes mentioned in section 106B(3) is relevant.

(5)
The PRA must consult the FCA before—

(a)
nominating or approving a person under subsection (2)(b), or

(b)
approving a form under subsection (3).”’.

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.



© Parliamentary copyright	Revised 9 July 2013