Session 2015-16
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Other Bills before Parliament


 
 

1

 

House of Commons

 
 

Tuesday 19 April 2016

 

Consideration of Bill (Report Stage)

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Amendments tabled since the last publication: Amendments (a) and (b) to NC12

 

Bank of England and Financial Services Bill


 

[Lords], As Amended


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 


 

New Clauses

 

Mr Chancellor of the Exchequer

 

NC12

 

To move the following Clause—

 

         

“Appointment of Financial Conduct Authority chief executive

 

In Schedule 1ZA to the Financial Services and Markets Act 2000 (the Financial

 

Conduct Authority), after paragraph 2 insert—

 

“2A(1)  

The term of office of a person appointed as chief executive under

5

paragraph 2(2)(b) must not begin before—

 

(a)    

the person has, in connection with the appointment, appeared

 

before the Treasury Committee of the House of Commons, or

 

(b)    

(if earlier) the end of the period of 3 months beginning with

 

the day on which the appointment is made.

10

      (2)  

Sub-paragraph (1) does not apply if the person is appointed as chief

 

executive on an acting basis, pending a further appointment being

 

made.


 
 

Consideration of Bill (Report Stage): 19 April 2016        

2

 

Bank of England and Financial Services Bill-[Lords], continued

 
 

      (3)  

The reference to the Treasury Committee of the House of Commons—

 

(a)    

if the name of that Committee is changed, is a reference to that

15

Committee by its new name, and

 

(b)    

if the functions of that Committee (or substantially

 

corresponding functions) become functions of a different

 

Committee of the House of Commons, is to be treated as a

 

reference to the Committee by which the functions are

20

exercisable.

 

      (4)  

Any question arising under sub-paragraph (3) is to be determined by

 

the Speaker of the House of Commons.””

 

Member’s explanatory statement

 

This new clause provides that the term of office of a person appointed as chief executive of the

 

Financial Conduct Authority (otherwise than on a temporary basis) must not begin before that

 

person has appeared before the Treasury Committee of the House of Commons or, if earlier, three

 

months from the date of his or her appointment.

 

As Amendments to Mr Chancellor of the Exchequer’s proposed New Clause

 

(Appointment of Financial Conduct Authority chief executive) (NC12):—

 

Mr Andrew Tyrie

 

(a)

 

Parliamentary Star    

Line  9,  at end insert—

 

“(1A)    

If, before the term of office has begun, the Treasury Committee reports to the

 

House that the appointment should not be confirmed, the Treasury shall not

 

continue with the appointment unless the House of Commons resolves that the

 

appointment should be confirmed.”

 

Mr Andrew Tyrie

 

(b)

 

Parliamentary Star    

Line  22,  at end insert—

 

    

“In Schedule 1ZA to the Financial Services and Markets Act 2000, in paragraph

 

3(1), at the end insert “, except in the case of the chief executive of the FCA, who

 

shall be appointed for a reappointable term of five years”.”

 



 
 

Consideration of Bill (Report Stage): 19 April 2016        

3

 

Bank of England and Financial Services Bill-[Lords], continued

 
 

Mr Andrew Tyrie

 

Wes Streeting

 

George Kerevan

 

John Mann

 

Mr Jacob Rees-Mogg

 

Helen Goodman

 

Mr Steve Baker

 

Rachel Reeves

 

Rebecca Long Bailey

 

Seema Malhotra

 

John McDonnell

 

Rob Marris

 

Richard Burgon

 

Greg Mulholland

 

Mr Douglas Carswell

 

Mark Durkan

 

NC1

 

To move the following Clause—

 

         

“Chief Executive of the Financial Conduct Authority

 

(1)    

Schedule 1ZA of the Financial Services and Markets Act 2000 is amended as

 

follows.

 

(2)    

After paragraph 2(2) insert—

 

“(2A)    

The Treasury shall not appoint a chief executive without the consent of

 

the Treasury Committee of the House of Commons.”

 

(3)    

After paragraph 4(1) insert—

 

“(1A)    

But a chief executive appointed under paragraph 2(2)(b) is not to be

 

removed from office without the consent of the Treasury Committee of

 

the House of Commons.”

 

(4)    

After paragraph 27 insert—

 

“References to Treasury Committee

 

28  (1)  

Any reference in this Schedule to the Treasury Committee of the

 

House of Commons—

 

(a)    

if the name of that Committee is changed, is to be treated as a

 

reference to that Committee by its new name, and

 

(b)    

if the functions of that Committee (or substantially

 

corresponding functions) become functions of a different

 

Committee of the House of Commons, is to be treated as a

 

reference to the Committee by which those functions are

 

exercisable.

 

      (2)  

Any question arising under sub-paragraph (1) is to be determined by

 

the Speaker of the House of Commons.””

 



 
 

Consideration of Bill (Report Stage): 19 April 2016        

4

 

Bank of England and Financial Services Bill-[Lords], continued

 
 

George Kerevan

 

Roger Mullin

 

Stewart Hosie

 

Kirsty Blackman

 

Alison Thewliss

 

Mark Durkan

 

NC2

 

To move the following Clause—

 

         

“Composition of the Court of Directors of the Bank of England

 

In making nominations to the Court of Directors of the Bank of England, the

 

Chancellor of the Exchequer must have regard to the importance of ensuring a

 

balanced representation from the nations and regions of the United Kingdom.”

 


 

George Kerevan

 

Roger Mullin

 

NC3

 

To move the following Clause—

 

         

“Change in title of the Bank of England

 

The Bank of England shall be known as the Bank of England, Scotland, Wales

 

and Northern Ireland; and any reference in any enactment to the Bank of England

 

shall be taken as a reference to the Bank of England, Scotland, Wales and

 

Northern Ireland.”

 


 

Jonathan Edwards

 

Mark Durkan

 

NC5

 

To move the following Clause—

 

         

“Sterling Central Bank

 

The Bank of England is renamed the Sterling Central Bank.”

 

Member’s explanatory statement

 

This new clause would change the name of the Bank of England to reflect its position as the UK

 

central bank and the UK’s shared currency.

 



 
 

Consideration of Bill (Report Stage): 19 April 2016        

5

 

Bank of England and Financial Services Bill-[Lords], continued

 
 

Jonathan Edwards

 

NC6

 

To move the following Clause—

 

         

“Membership of the Monetary Policy Committee of the Bank of England

 

(1)    

Section 13 of the Bank of England Act 1998 is amended as follows.

 

(2)    

At the end of subsection 2(c), add “of whom one each must be nominated by the

 

Scottish Government, the Welsh Assembly Government and the Northern Ireland

 

Executive.”

 

Member’s explanatory statement

 

This new clause seeks to ensure representation of the four nations of the United Kingdom on the

 

Monetary Policy Committee.

 


 

Jonathan Edwards

 

Mark Durkan

 

NC7

 

To move the following Clause—

 

         

“Objectives of the Monetary Policy Committee

 

After subsection 11(a) of the Bank of England Act 1998 there is inserted—

 

“(b)    

maximum employment, and.””

 

Member’s explanatory statement

 

This new clause would expand the mandated objectives of the Monetary Policy Committee to

 

include maximum employment.

 


 

Jonathan Edwards

 

Mark Durkan

 

NC8

 

To move the following Clause—

 

         

“Bank of England Accountability and Devolved Legislatures

 

Within three months of the passing of this Act, the Chancellor of the Exchequer

 

shall lay a report before both Houses of Parliament on the merits of ensuring that

 

the members of the policy committees of the Bank of England, including the

 

Governor, appear before the respective economy committees of the devolved

 

legislatures of the UK at least once a year.”

 



 
 

Consideration of Bill (Report Stage): 19 April 2016        

6

 

Bank of England and Financial Services Bill-[Lords], continued

 
 

Mr Charles Walker

 

Nadine Dorries

 

Mr Steve Baker

 

Craig Mackinlay

 

Sir William Cash

 

NC9

 

To move the following Clause—

 

         

“Money laundering

 

(1)    

In any regulations or orders transposing money laundering measures contained

 

within  Directive (EU) 2015/849 of the European Parliament and of the Council

 

of 20 May 2015 (or  in relation to any subsequent EU amending or successor

 

measure) the Secretary of State  shall have a duty to ensure, insofar as such

 

regulations relate to institutions regulated by the Financial Conduct Authority—

 

(a)    

reasonable regard and due prominence is given to—

 

(i)    

Preambular (33),

 

(ii)    

Article 13(2),

 

(iii)    

Article 15, and

 

(iv)    

Article 16 and Annex II;

 

(b)    

clarity is achieved with respect to the meaning and interpretation of

 

“prominent      public function” in the context of money laundering;

 

(c)    

reasonable regard and due prominence is given to Article 22 which

 

recognises that a      PEP may have no prominent public function; and

 

(d)    

any interpretation of “adequate” Article 20(b)(ii), and “enhanced” in

 

Article 20(b)(iii)      takes account of, and gives due prominence to, the

 

provisions in Article 13 on risk      sensitivity.

 

(2)    

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

 

(3)    

After Part 20A insert—

 

“Part 20C

 

Money Laundering

 

333U  

Anti-money laundering: guidance

 

(1)    

The FCA must, prior to relevant regulations coming into force, issue

 

guidance to       regulated entities on the definition of one or more categories

 

of “politically exposed      persons” (“PEPs”).

 

(2)    

Guidance under subsection (1) must include, but need not be limited to—

 

(a)    

a requirement to take a proportional, risk-based and

 

differentiated        approach to conducting transactions or business

 

relationships with each       category of PEP that may be defined;

 

and

 

(b)    

specified categories of persons to be—

 

(i)    

included and

 

(ii)    

excluded

 

    

from any definitions of PEPs.


 
 

Consideration of Bill (Report Stage): 19 April 2016        

7

 

Bank of England and Financial Services Bill-[Lords], continued

 
 

(3)    

The Secretary of State may, by regulation, make provision about—

 

(a)    

the guidance issued, amended and/or reissued under subsection

 

(1);

 

(b)    

arrangements for complaints about the treatment of individuals

 

by        regulated entities to be received, assessed and adjudicated by

 

the FCA,        where—

 

(i)    

a person was treated as though he or she was a PEP (and

 

he was        not),

 

(ii)    

a person who is a PEP was treated unreasonably in

 

disregard of         guidance under subsection (1), particularly

 

in regard to specific         elements required under subsection

 

(2)(a), or

 

(iii)    

a person was refused a business relationship solely on

 

the basis of        that he or she is a PEP,

 

(c)    

circumstances in which—

 

(i)    

compensation payments are to be required from, or

 

(ii)    

financial penalties are to be imposed on regulated

 

entities where        complaints under paragraph (b) are

 

upheld.

 

(4)    

For the purposes of subsection (1), “relevant regulations” means

 

regulations       transposing into UK law measures that EU Member States

 

are required to       implement to combat money-laundering (or subsequent

 

regulations amending those      regulations) that contain references to PEPs.

 

(5)    

The power to make regulations under subsection (3) is exercisable by

 

statutory       instrument which may only be made after a draft of any such

 

instrument has been      laid before, and approved by a resolution of, each

 

House of Parliament.””

 


 

Mr Gary Streeter

 

NC10

 

To move the following Clause—

 

         

“Debt management plan charges

 

(1)    

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

 

(2)    

After section 137FBB insert—

 

“137FBC 

 FCA general rules: debt management plan charges

 

(1)    

The FCA must make general rules in relation to debt management plans.

 

(2)    

The rules must specify that—

 

(a)    

if a majority of creditors agree to a creditor fee arrangement, then

 

all creditors shall be bound by the arrangement;

 

(b)    

a creditor fee arrangement may subsequently be varied by the

 

agreement of a majority of creditors; and

 

(c)    

a creditor fee arrangement and any variations must take the form

 

of a written contract executed by a majority of the creditors and

 

must be distributed to all creditors upon completion.


 
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Revised 19 April 2016