Session 2017-19
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Other Bills before Parliament


 
 

1

 

House of Commons

 
 

Tuesday 26 February 2019

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

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

 

Financial Services (Implementation of


 

Legislation) Bill [Lords]


 

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withdrawn amendments at the end.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.

 


 

Resolution of the Programming Sub-Committee

 

The Programming Sub-Committee appointed by the Speaker in respect of the Bill

 

agreed the following Resolution at its meeting on Monday 25 February (Standing Order

 

83C):

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 26

 

February) meet—

 

(a)  

at 2.00 pm on Tuesday 26 February;

 

(b)  

at 11.30 am and 2.00 pm on Thursday 28 February;

 

(2)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 5.00 pm on Thursday 28 February.

 

John Glen has given notice of his intention to move a motion in the terms of the

 

Resolution of the Programming Sub-Committee [Standing Order No. 83C].

 



 
 

Public Bill Committee: 26 February 2019                  

2

 

Financial Services (Implementation of Legislation) Bill-[Lords], continued

 
 

John Glen

 

That, subject to the discretion of the Chair, any written evidence received by the

 

Committee shall be reported to the House for publication.

 


 

Alison Thewliss

 

Angela Crawley

 

2

 

Clause  1,  page  1,  line  2,  leave out “may” and insert “, in respect of a piece of

 

specified EU financial services legislation, within six months of that legislation being

 

implemented in the European Union, or immediately if more than six months has passed

 

before this section coming into force, must”

 

Member’s explanatory statement

 

This amendment would require regulations to be made to apply specified EU financial services

 

legislation in domestic law within six months of that legislation being implemented in the European

 

Union.

 

Alison Thewliss

 

Angela Crawley

 

3

 

Clause  1,  page  1,  line  3,  leave out “, or similar, ”

 

Member’s explanatory statement

 

This amendment would only allow for corresponding provision to EU financial services

 

legislation, not similar provision, to be made.

 

Alison Thewliss

 

Angela Crawley

 

4

 

Clause  1,  page  1,  line  9,  leave out “the Treasury consider appropriate” and insert

 

“the Treasury and the House of Commons consider appropriate as defined in sub-

 

paragraphs (i) and (ii)—

 

(i)    

any proposed adjustments must be approved by a motion of the

 

House of Commons prior to regulations being laid in draft in

 

accordance with subsection (8)(a), and

 

(ii)    

if the House of Commons agrees a motion that certain

 

adjustments be made, the Treasury shall consider that to be an

 

expression of agreement by the House that those adjustments are

 

appropriate.”

 

Member’s explanatory statement

 

This amendment would only permit adjustments to be made that have been pre-approved by the

 

House of Commons.

 

Jonathan Reynolds

 

Anneliese Dodds

 

11

 

Clause  1,  page  1,  line  14,  leave out from “(g)” to “does” in line 16.

 

Member’s explanatory statement

 

This amendment would amend the definition of “adjustments” to restore its natural meaning, while

 

retaining the prohibition on major changes.


 
 

Public Bill Committee: 26 February 2019                  

3

 

Financial Services (Implementation of Legislation) Bill-[Lords], continued

 
 

Jonathan Reynolds

 

Anneliese Dodds

 

12

 

Clause  1,  page  1,  line  17,  leave out “major” and insert “material”.

 

Member’s explanatory statement

 

This amendment would prevent material changes to EU financial services legislation being made

 

through adjustments under subsection (2).

 

Jonathan Reynolds

 

Anneliese Dodds

 

13

 

Clause  1,  page  1,  line  18,  at end insert—

 

“(2A)    

But “adjustments” may not include any changes that, in the Treasury’s view,

 

lighten or remove the regulatory burden in comparison to the legislation as it

 

would have operated had the United Kingdom not withdrawn from the EU.”

 

Member’s explanatory statement

 

This amendment would prevent adjustments to EU legislation under this Bill from lightening or

 

removing regulatory burdens on financial services.

 

Alison Thewliss

 

Angela Crawley

 

5

 

Clause  1,  page  2,  line  10,  leave out subsection (4)

 

Member’s explanatory statement

 

This amendment would disapply section 8(5) and 8(7) of then European Union (Withdrawal) Act,

 

which allow regulations to do anything, with some exceptions, that can be done by an Act of

 

Parliament.

 

Jonathan Reynolds

 

Anneliese Dodds

 

14

 

Clause  1,  page  2,  line  12,  at end insert “as though section 8(5) of that Act read

 

“Regulations under subsection (1) may make any provision that could be made by an Act

 

of Parliament apart from amending any primary legislation.””

 

Member’s explanatory statement

 

This amendment would prevent regulations under this Act amending any primary legislation.

 

Jonathan Reynolds

 

Anneliese Dodds

 

15

 

Clause  1,  page  2,  line  35,  at end insert—

 

“(c)    

that draft was laid more than 1 month after the Treasury conducted a

 

public consultation that was promoted to trade unions, regulatory

 

institutions, service users, and any other stakeholders the Chancellor of

 

the Exchequer considers appropriate.”

 

Member’s explanatory statement

 

This amendment obliges HM Treasury to undertake wide-ranging consultation on their proposed

 

implementation of EU legislation, to ensure appropriate public scrutiny on any regulatory

 

divergence.


 
 

Public Bill Committee: 26 February 2019                  

4

 

Financial Services (Implementation of Legislation) Bill-[Lords], continued

 
 

Alison Thewliss

 

Angela Crawley

 

6

 

Clause  1,  page  2,  line  37,   leave out “4” and insert “8”

 

Alison Thewliss

 

Angela Crawley

 

7

 

Clause  1,  page  2,  line  38,   leave out “6” and insert “3”

 

Alison Thewliss

 

Angela Crawley

 

8

 

Clause  1,  page  2,  line  40,   leave out “6” and insert “3”

 

Alison Thewliss

 

Angela Crawley

 

9

 

Clause  1,  page  2,  line  42,   leave out “1 month” and insert “2 weeks”

 

Alison Thewliss

 

Angela Crawley

 

10

 

Clause  1,  page  3,  line  7,   at end insert—

 

“(d)    

making an assessment of the economic impact of any adjustments made

 

by the regulations in reliance on subsection (1)(b) to the specified EU

 

financial services legislation to which the regulations relate.”

 

Member’s explanatory statement

 

This amendment would require, in each reporting period, an assessment to be made of any

 

adjustments made in reliance on subsection (1)(b).

 


 

John Glen

 

1

 

Clause  2,  page  3,  line  42,  leave out subsection (4)

 

Member’s explanatory statement

 

This amendment removes the privilege amendment inserted by the Lords.

 


 

Jonathan Reynolds

 

Anneliese Dodds

 

NC1

 

To move the following Clause—

 

         

“Draft consolidated financial services legislation

 

(1)    

The Treasury may collate in a single document (the “draft consolidated financial

 

services legislation document”), with the guidance of the Chancellor of the

 

Exchequer and the support of the Treasury Committee of the House of Commons,


 
 

Public Bill Committee: 26 February 2019                  

5

 

Financial Services (Implementation of Legislation) Bill-[Lords], continued

 
 

measures proposed to be taken by the Treasury to make provision corresponding,

 

or similar, to—

 

(a)    

the provisions, or any of the provisions, of any specified EU financial

 

services legislation, or

 

(b)    

any provision that might be made by a member State for the purpose of

 

implementing any provision of specified EU financial services

 

legislation.

 

(2)    

The measures proposed in the draft consolidated financial services legislation

 

document may include any adjustments the Treasury considers appropriate, and

 

explanations of why those adjustments are necessary.

 

(3)    

The Treasury must, as part of the draft consolidated financial services legislation

 

document, identify what regulatory institution has responsibility for specified EU

 

financial services legislation, why that institution has been identified, and what

 

resourcing is being supplied to support that institution in discharging its

 

functions.

 

(4)    

In preparing the document, the Chancellor of the Exchequer must consult all

 

relevant parties on the draft consolidated financial services legislation, including

 

trade unions, appropriate regulatory institutions, and service users, and any other

 

stakeholders the Chancellor considers appropriate.

 

(5)    

The Chancellor of the Exchequer must lay the document before the House of

 

Commons.

 

(6)    

With 30 days of the document being laid before the House of Commons, the

 

Chancellor of the Exchequer must move a motion in the House of Commons that

 

the House approves the provisions of the draft consolidated financial services

 

document.

 

(7)    

Within 30 days of the motion in subsection (6) being moved, the Chancellor of

 

the Exchequer must make a statement to the House of Commons indicating how

 

Her Majesty’s Government intends to apply the opinion of the House as

 

expressed in the motion being agreed to, amended, or not agreed to.

 

(8)    

“Specified EU financial services legislation” means—

 

(a)    

Articles 6 and 7 of the Central Securities Depositories Regulation,

 

(b)    

the Delegated Cash Penalties Regulation,

 

(c)    

Articles 37 and 38(2) of the Markets in Financial Instruments Regulation,

 

(d)    

the provisions of the Prospectus Regulation that apply from 21 July 2019

 

(see Article 49(2) of that regulation),

 

(e)    

any delegated acts under the Prospectus Regulation, other than technical

 

standards, that are adopted by the European Commission before 21 July

 

2019,

 

(f)    

Article 4(1) of the Securities Financing Transactions Regulation, or

 

(g)    

any EU Directive, or EU Regulation, adopted before, on or after exit day

 

as a result of any of the proposals listed in the Schedule to this Act,

 

    

as that legislation has effect in EU law.

 

(9)    

In this section—

 

“the Central Securities Depositories Regulation” means Regulation (EU)

 

No 909/2014 of the European Parliament and of the Council of 23 July

 

2014 on improving securities settlement in the European Union and on

 

central securities depositories and amending Directives 98/26/EC and

 

2014/65/EU and Regulation (EU) No 236/2012;

 

“the Delegated Cash Penalties Regulation” means Commission Delegated

 

Regulation (EU) 2017/389 of 11 November 2016 supplementing

 

Regulation (EU) No 909/2014 of the European Parliament and of the

 

Council as regards the parameters for the calculation of cash penalties for

 

settlement fails and the operations of CSDs in host Member States;


 
 

Public Bill Committee: 26 February 2019                  

6

 

Financial Services (Implementation of Legislation) Bill-[Lords], continued

 
 

“the Markets in Financial Instruments Regulation” means Regulation (EU)

 

No 600/2014 of the European Parliament and of the Council of 15 May

 

2014 on markets in financial instruments and amending Regulation (EU)

 

No 648/2012;

 

“the Prospectus Regulation” means Regulation (EU) 2017/1129 of the

 

European Parliament and of the Council of 14 June 2017 on the

 

prospectus to be published when securities are offered to the public or

 

admitted to trading on a regulated market, and repealing Directive 2003/

 

71/EC;

 

“the Securities Financing Transactions Regulation” means Regulation (EU)

 

2015/2365 of the European Parliament and of the Council of 25

 

November 2015 on transparency of securities financing transactions and

 

of reuse and amending Regulation (EU) No 648/2012.”

 

Member’s explanatory statement

 

This new Clause is an alternative to Clause 1. This creates a system by which the Treasury will

 

propose to the House what EU financial services legislation the Treasury intends to make

 

provision for in domestic law, and then to seek the House’s approval for those changes, and to

 

make a statement detailing how the Government will apply the opinion of the House.

 


 

Jonathan Reynolds

 

Anneliese Dodds

 

nc2

 

To move the following Clause—

 

         

“Report on the provisions of regulations under this Act

 

(1)    

Prior to making any regulations under this Act, the Treasury must publish a report

 

on the impact of the provisions of those regulations.

 

(2)    

A report under this section must consider, in respect of the regulations proposed

 

to be made—

 

(a)    

the impact of those provisions on households at different levels of

 

income,

 

(b)    

the impact of those provisions on people with protected characteristics

 

(within the meaning of the Equality Act 2010),

 

(c)    

the impact of those provisions on the Treasury’s compliance with the

 

public sector equality duty under section 149 of the Equality Act 2010,

 

and

 

(d)    

the impact of those provisions on equality in different parts of the United

 

Kingdom and different regions of England.”

 

Member’s explanatory statement

 

This new clause would require a report to be made on the impact of any regulations under this Bill

 

before any such regulations are made.

 

 

Order of the House [11 February 2019]

 

That the following provisions shall apply to the Financial Services (Implementation of

 

Legislation) Bill [Lords]:

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.


 
 

Public Bill Committee: 26 February 2019                  

7

 

Financial Services (Implementation of Legislation) Bill-[Lords], continued

 
 

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 28 February.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Proceedings on Consideration and up to and including Third Reading

 

4.    

Proceedings on Consideration and any proceedings in legislative grand

 

committee shall (so far as not previously concluded) be brought to a

 

conclusion one hour before the moment of interruption on the day on which

 

proceedings on Consideration 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.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on Consideration and up to and including Third Reading.

 

Other proceedings

 

7.    

Any other proceedings on the Bill may be programmed.

 


 

 

Revised 25 February 2019