Session 2013 - 14
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Other Bills before Parliament


 
 

Report Stage Proceedings: 8 July 2013                  

171

 

Financial Services (Banking Reform) Bill, continued

 
 

New Clauses relating to Bank of England Financial policy committee

 

Leverage ratio

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Negatived on division  NC9

 

To move the following Clause:—

 

‘(1)    

The Bank of England Act 1998 is amended as follows.

 

(2)    

In Part 1A section 9D(1), for “may”, substitute “shall”.

 

(3)    

In Part 1A after section 9D(1) insert—

 

“(1A)    

The notice in subsection (1) shall include a target for the overall leverage

 

of the UK’s financial system, to encompass also the activities of foreign

 

financial institutions and non-bank originators of credit.”

 

(4)    

After section 9D(3) insert—

 

“(4)    

After each three month period, the Financial Policy Committee must

 

respond to the notice of the economic policy of Her Majesty’s

 

Government in subsection (1) by notifying the Treasury of—

 

(a)    

any action that the Committee has taken to regulate leverage in

 

the financial system to the identified target in a manner

 

consistent with maintaining adequate credit availability and

 

growth in the economy, or

 

(b)    

the Committee’s reasons for not intending to act to regulate

 

leverage in the financial system to the identified target.

 

(5)    

Notificatiopn under subsection (4) must be given in writing.

 

(6)    

The Treasury shall—

 

(a)    

publish in such a manner as they think fit any notification

 

received under subsection (4), and

 

(b)    

lay a copy of such a notification before Parliament.”.’.

 


 

Remaining new clauses other than any standing in the name of a minister

 

of the crown or relating to competition or to portability of bank

 

accounts

 

Burden of proof: persons performimg significant influence functions

 

Stephen Barclay

 

Withdrawn  NC2

 

To move the following Clause:—

 

‘(1)    

The Financial Services and Markets Act 2000 is amended as follows.

 

(2)    

In section 66 (disciplinary powers), at end insert—


 
 

Report Stage Proceedings: 8 July 2013                  

172

 

Financial Services (Banking Reform) Bill, continued

 
 

“(10)    

In determining whether a person performing a significant influence

 

function is guilty of misconduct under this section, where some evidence

 

of misconduct exists, it shall be for him to prove his standard of

 

behaviour was reasonable in all the circumstances.”.’.

 


 

Professional standards

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Not called  NC3

 

To move the following Clause:—

 

‘After section 65 of FSMA 2000 insert—

 

“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 and

 

revised Banking Standards Rules;

 

(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 continuing to hold a

 

licence or of the person’s licence being restored;

 

(d)    

be evidenced by individuals holding an annual validation of

 

competence;

 

(e)    

include specific provision for a Senior Persons Regime in

 

relation to activities involving the exercise of a significant

 

influence over a controlled function under section 59 of the Act.

 

(2)    

In section 59, remove “authorised” and insert “licensed” throughout the

 

section.”.’.

 



 
 

Report Stage Proceedings: 8 July 2013                  

173

 

Financial Services (Banking Reform) Bill, continued

 
 

Duty of Care

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Negatived on division  NC4

 

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 it customers across the financial

 

services sector.’.

 


 

Remuneration reform

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Not called  NC5

 

To move the following Clause:—

 

‘Within six months of Royal Assent of this Act the Chancellor of the Exchequer

 

shall, in consultation with the appropriate regulation, lay before Parliament

 

proposals on reform of remuneration at UK financial 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.’.

 


 

Protection for whistleblowers

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Not called  NC7

 

To move the following Clause:—

 

‘(1)    

After section 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.”.

 

(2)    

After section 43B(5) of the Employment Rights Act 1996 there is inserted—


 
 

Report Stage Proceedings: 8 July 2013                  

174

 

Financial Services (Banking Reform) Bill, continued

 
 

    

“The chairman of the board of directors of any relevant UK financial

 

institution will be informed of any protected disclosure made by a worker

 

which qualifies under the terms of Part IVA of this Act.”.’.

 


 

Reckless misconduct in the management of a bank

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Not called  NC11

 

To move the following Clause:—

 

‘(1)    

Within the three months of Royal Assent of this Act the Government shall publish

 

proposals for the creation of a new criminal offence of reckless misconduct in the

 

management of a bank.

 

(2)    

The new offence in subsection (2) should cover those approved persons who are

 

licensed under a Senior Persons Regime.

 

(3)    

The Government shall bring forward further proposals within three months of

 

Royal Assent of this Act for the civil recovery of monies obtained by individuals

 

who have been found guilty of reckless misconduct in the management of a

 

bank.’.

 


 

Financial Services Crime Unit

 

Ed Balls

 

Chris Leslie

 

Cathy Jamieson

 

Catherine McKinnell

 

Not called  NC13

 

To move the following Clause:—

 

‘(1)    

The Treasury shall conduct a review into the creation of a Financial Services

 

Crime Unit and consult on its proposals for the Financial Services Crime Unit’s

 

powers and responsibilities.

 

(2)    

The Treasury shall lay its proposals before both Houses of Parliament no later

 

than six months after this Act comes into force.’.


 
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