House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

13

House of Commons

Notices of Amendments

given on

Tuesday 14 October 2014

For other Amendment(s) see the following page(s):

Small Business, Enterprise and Employment Bill Committee 11-12

Public Bill Committee

Small Business, Enterprise and Employment

Bill

Matthew Hancock

Jo Swinson

Clause  4,  page  5,  line  3,  leave out “(“credit information regulations”)”

Member’s explanatory statement

This amendment is a minor drafting change removing a definition which is no longer required.

Matthew Hancock

Jo Swinson

Clause  4,  page  5,  line  43,  leave out “before a bank or credit reference agency may”

and insert “for a bank or credit reference agency to”

Member’s explanatory statement

This amendment ensures that regulations made under clause 4 may provide for conditions relevant

to the continued designation of a bank or credit reference agency, as well as conditions relevant

to the initial designation of a bank or credit reference agency.

Matthew Hancock

Jo Swinson

Clause  4,  page  6,  line  7,  leave out subsections (8) to (12)

Member’s explanatory statement

The omitted provisions are being moved to the new clause inserted by amendment NC2 as they are

common to both clause 4 and the new clause inserted by amendment NC1.

Matthew Hancock

Jo Swinson

Clause  5,  page  6,  line  36,  leave out “Credit information regulations” and insert

Notices of Amendments:
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, continued

“Regulations under sections 4 and (Small and medium sized businesses: information to

finance platforms)”

Member’s explanatory statement

This amendment means that the Financial Conduct Authority can regulate the activities under the

new clause inserted by amendment NC1 in the same way as it will be able to regulate activities

under clause 4.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  8,  leave out “Credit information regulations” and insert

“Regulations under sections 4 and (Small and medium sized businesses: information to

finance platforms)”

Member’s explanatory statement

This amendment and amendment 6 mean that the Financial Ombudsman Service could have

oversight of activities under the new clause inserted by amendment NC1 in the same way as it can

have oversight of the activities under clause 4.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  9,  after “agencies” insert “or designated finance platforms”

Member’s explanatory statement

See explanatory statement to amendment 5.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  19,  leave out “Credit information regulations” and insert

“Regulations under section 4”

Member’s explanatory statement

This amendment, and amendments 10, 11 and 12 are consequential upon the drafting change made

by amendment 1.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  21,  after “allow” insert “or require”

Member’s explanatory statement

This amendment makes it clear that the regulations can require the Bank of England to share

information it receives from credit reference agencies with persons specified in the regulations

(such as the Treasury).

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  22,  leave out “prescribed persons or for prescribed purposes”

and insert “persons or for purposes specified or described in the regulations”

Member’s explanatory statement

This is a minor drafting amendment which clarifies that the extent of the Bank of England’s ability

to share information received pursuant to regulations made under clause 4 may be specified or

described in those regulations.

Notices of Amendments:
15

, continued

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  25,  leave out “Credit information regulations” and insert

“Regulations under section 4”

Member’s explanatory statement

See explanatory statement to amendment 7.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  29,  leave out “Credit information regulations” and insert

“Regulations under section 4”

Member’s explanatory statement

See explanatory statement to amendment 7.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  39,  leave out “Credit information regulations” and insert

“Regulations under section 4”

Member’s explanatory statement

See explanatory statement to amendment 7.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  41,  at end insert—

“( )
Regulations under section (Small and medium sized businesses: information to

finance platforms) may impose a duty on designated finance platforms to provide

statistical information to the Treasury.”

Member’s explanatory statement

This amendment enables regulations made under the new clause inserted by amendment NC1 to

require platforms designated under those regulations to provide the Treasury with statistical

information to do with the information shared under the regulations.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  42,  leave out “credit information regulations that are made”

and insert “regulations made under section 4 and the first regulations made under section

(Small and medium sized businesses: information to finance platforms)”

Member’s explanatory statement

This amendment means that the first regulations made under the new clause inserted by

amendment NC1 would, like the first regulations made under clause 4, be subject to the affirmative

procedure.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  44,  leave out “credit information regulations” and insert

“regulations made under section 4 or (Small and medium sized businesses: information to

finance platforms)”

Member’s explanatory statement

This amendment means that any subsequent regulations made under the new clause inserted by

Notices of Amendments:
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, continued

amendment NC1 would, like subsequent regulations made under clause 4, be subject to the

negative procedure.

Matthew Hancock

Jo Swinson

Clause  5,  page  7,  line  46,  leave out subsection (11)

Member’s explanatory statement

This is a minor drafting amendment which omits definitions which are no longer needed in clause

5 either because all instances of the defined term are removed by other amendments, or because

the definition is included in the new clause inserted by amendment NC2.

Matthew Hancock

Jo Swinson

Clause  11,  page  11,  line  30,  after “delivered” insert “on or in connection with

presentment or payment (including after presentment or payment or in connection with

dishonour for non-payment)”

Member’s explanatory statement

This amendment clarifies that the provision disapplying requirements to exhibit, present or deliver

an original physical instrument which is presented electronically has effect in respect of such

requirements arising at any time, including any requirement to deliver an instrument after it is

paid.

Matthew Hancock

Jo Swinson

Clause  11,  page  13,  line  30,  at end insert—

“( )
in relation to an instrument which is not a bill of exchange or promissory

note, references to the holder are to the payee or indorsee of the

instrument who is in possession of it or, if it is payable to bearer, the

person in possession of it.”

Member’s explanatory statement

This amendment clarifies that the term ‘holder’ in section 89D of the Bills of Exchange Act 1882

(inserted by clause 11) is used in relation to all types of instrument, and not just those types of

instrument in relation to which ‘holder’ is currently defined in the 1882 Act.

Matthew Hancock

Jo Swinson

Clause  11,  page  14,  line  19,  at end insert—

“( )
The amendments made by this section have effect in relation to presentment of

instruments after it comes into force, including instruments created before that

time.”

Member’s explanatory statement

This amendment clarifies that the provisions about electronic presentment of instruments have

effect in relation to any presentment or purported presentment after commencement of the

provisions, including presentment or purported presentment of instruments or images which were

created before commencement.

Matthew Hancock

Jo Swinson

Clause  12,  page  14,  line  23,  at end insert—

Notices of Amendments:
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, continued

“(1A)
Section 58 (power to require disposal of interest in payment system) is amended

as provided in subsections (1B) and (1C).

(1B)
In subsection (1), for the words following “interest in” substitute “—

(a)
the operator of a regulated payment system, or

(b)
an infrastructure provider in relation to such a system,


to dispose of all or part of that interest.”

(1C)
After subsection (2) insert—

“(2A)
The reference in subsection (2) to a restriction or distortion of

competition includes, in particular, a restriction or distortion of

competition—

(a)
between different operators of payment systems,

(b)
between different payment services providers, or

(c)
between different infrastructure providers.””

Member’s explanatory statement

This amendment extends the Payment Systems Regulator’s power to require disposal of an interest

relating to a regulated payment system so that the Regulator may require disposal of an interest

in an infrastructure provider in relation to such a system.

Matthew Hancock

Jo Swinson

Clause  16,  page  17,  line  24,  leave out from beginning to “subject” and insert

“Regulations under this section are”.

Member’s explanatory statement

This amendment corrects a drafting error (it is the regulations themselves that are subject to

affirmative resolution procedure and not the power to make them).

Matthew Hancock

Jo Swinson

Clause  30,  page  26,  line  9,  leave out subsections (2) and (3) and insert—

“(2)
In the underlying provision “small business” means an undertaking other than a

micro business (see subsection (3)) which meets the following conditions (“the

small business size conditions”)—

(a)
it has a headcount of staff of less than 50, and

(b)
it has—

(i)
a turnover, or

(ii)
a balance sheet total,


of an amount less than or equal to the small business threshold.

(3)
In the underlying provision “micro business” means an undertaking which meets

the following conditions (“the micro business size conditions”)—

(a)
it has a headcount of staff of less than 10, and

(b)
it has—

(i)
a turnover, or

(ii)
a balance sheet total,


of an amount less than or equal to the micro business threshold.

( )
The Secretary of State may by regulations (referred to as “the small and micro

business regulations”) make further provision about the meanings of “small

business” and “micro business”.

( )
This section and the small and micro business regulations are to be read subject

to any modifications made by the underlying provision in any particular case.”

Notices of Amendments:
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Member’s explanatory statement

This amendment defines “small business” and “micro business” by reference to staff headcount

and other conditions set out in subsections (2) and (3), replacing the previous definition referring

to Commission Recommendation 2003/361/EC. It also gives the Secretary of State power to make

regulations further defining these terms.

Matthew Hancock

Jo Swinson

Clause  30,  page  26,  line  19,  at end insert—

““balance sheet total”, “headcount of staff”, “micro business threshold”,

“small business threshold” and “turnover” have such meanings as may be

prescribed by the small and micro business regulations;”

Member’s explanatory statement

This amendment stipulates that particular terms used in amendment 22 (such as “headcount of

staff” and “turnover“) are to be defined in regulations made by the Secretary of State.

Matthew Hancock

Jo Swinson

Clause  30,  page  26,  line  23,  at end insert—

““undertaking” means—

(a)
a person carrying on one or more businesses;

(b)
a voluntary or community body within the meaning given by

section 24;

(c)
a body which is formed or recognised under the law of a country

or territory outside the United Kingdom and which is equivalent

in nature to a body falling within the definition of voluntary or

community body.

( )
The small and micro business regulations are subject to negative resolution

procedure.”

Member’s explanatory statement

This amendment defines “undertaking” as used in the definitions of “small” and “micro”

business. Undertakings comprise individuals, companies, and other entities carrying on business

and voluntary or community bodies (defined in clause 24) and foreign equivalents. It also applies

the negative procedure to regulations under amendments 22 and 23.

Matthew Hancock

Jo Swinson

Clause  80,  page  52,  leave out line 13 and insert—

“(5)
For the purposes of this Part, each of the following is a review period—”

Member’s explanatory statement

This amendment is consequential on amendment 26.

Matthew Hancock

Jo Swinson

Clause  80,  page  52,  leave out lines 16 to 18 and insert—

“(b)
each period of 12 months beginning with the day after the end of the

previous review period.

(5A)
But where a company delivers a confirmation statement with a confirmation date

which is earlier than the last day of the review period concerned, the next review

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period is the period of 12 months beginning with the day after the confirmation

date.”

Member’s explanatory statement

This amendment provides for a default review period of 12 months from the end of the previous

review period. This default review period will apply where no confirmation statement has been

delivered by a company for the previous review period.

Matthew Hancock

Jo Swinson

Clause  81,  page  59,  line  10,  after “(5)” insert “and (5A)”

Member’s explanatory statement

This amendment is consequential on amendment 26.

Matthew Hancock

Jo Swinson

Clause  136,  page  119,  line  3,  leave out from “lies” to end of line 5 and insert “to an

employment tribunal.”

Member’s explanatory statement

This amendment changes the venue of appeal against a penalty for the non-payment of an

Employment Tribunal award or an ACAS conciliated settlement from the county court in England

and Wales, or the sheriff in Scotland, to an employment tribunal.

Matthew Hancock

Jo Swinson

Clause  136,  page  119,  line  14,  leave out “the county court or sheriff” and insert “an

employment tribunal”

Member’s explanatory statement

This amendment is consequential on amendment 28.

Matthew Hancock

Jo Swinson

Clause  139,  page  127,  line  11,  at end insert—

“( )
Subsection (3) is to be disregarded for the purposes of determining any question

whether a contract is a contract of employment or other worker’s contract.”

Member’s explanatory statement

This amendment means that when mutuality of obligation is considered for the purpose of

determining the employment status of an individual working under a zero hours contract, the

prohibition on exclusivity terms in zero hour contracts introduced by clause 139 should be

ignored.

Matthew Hancock

Jo Swinson

Clause  148,  page  132,  line  21,  leave out “and 5 (provision of credit information)”

and insert “to (Sections 4 to 5: interpretation) (regulations about financial information on

small and medium sized businesses)”

Member’s explanatory statement

This amendment commences the power to make regulations under the new clause inserted by

amendment NC1 on Royal Assent (so it is treated in the same way as the power to make regulations

under clause 4).



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