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1

 

House of Commons

 
 

Tuesday 26 February 2019

 

Public Bill Committee Proceedings

 

Financial Services (Implementation of


 

Legislation) Bill [Lords]


 

[First Sitting]


 

Glossary

 

This document shows the fate of each clause, schedule, amendment and new clause.

 

The following terms are used:

 

Agreed to: agreed without a vote.

 

Agreed to on division: agreed following a vote.

 

Negatived: rejected without a vote.

 

Negatived on division: rejected following a vote.

 

Not called: debated in a group of amendments, but not put to a decision.

 

Not moved: not debated or put to a decision.

 

Question proposed: debate underway but not concluded.

 

Withdrawn after debate: moved and debated but then withdrawn, so not put to a decision.

 

Not selected: not chosen for debate by the Chair.

 

 

John Glen

 

Agreed to

 

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.

 



 
 

Public Bill Committee Proceedings: 26 February 2019        

2

 

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

 
 

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

 

Committee shall be reported to the House for publication.—(John Glen)

 

Agreed to

 


 

Alison Thewliss

 

Angela Crawley

 

Negatived on division  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”

 

Alison Thewliss

 

Angela Crawley

 

Not called  3

 

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

 

Alison Thewliss

 

Angela Crawley

 

Withdrawn after debate  4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.”

 

Jonathan Reynolds

 

Anneliese Dodds

 

Negatived on division  11

 

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

 

Jonathan Reynolds

 

Anneliese Dodds

 

Negatived on division  12

 

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

 

Jonathan Reynolds

 

Anneliese Dodds

 

Negatived on division  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.”


 
 

Public Bill Committee Proceedings: 26 February 2019        

3

 

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

 
 

Alison Thewliss

 

Angela Crawley

 

Negatived on division  5

 

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

 

Jonathan Reynolds

 

Anneliese Dodds

 

Negatived on division  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.””

 

Jonathan Reynolds

 

Anneliese Dodds

 

Withdrawn after debate  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.”

 

Alison Thewliss

 

Angela Crawley

 

Withdrawn after debate  6

 

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

 

Alison Thewliss

 

Angela Crawley

 

Not called  7

 

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

 

Alison Thewliss

 

Angela Crawley

 

Not called  8

 

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

 

Alison Thewliss

 

Angela Crawley

 

Not called  9

 

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

 

Alison Thewliss

 

Angela Crawley

 

Negatived on division  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.”

 

Clause Agreed to on division.

 



 
 

Public Bill Committee Proceedings: 26 February 2019        

4

 

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

 
 

John Glen

 

Agreed to  1

 

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

 

Clause, as amended, Agreed to.

 


 

Jonathan Reynolds

 

Anneliese Dodds

 

Not called  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,

 

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),


 
 

Public Bill Committee Proceedings: 26 February 2019        

5

 

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

 
 

(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;

 

“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.”

 


 

Jonathan Reynolds

 

Anneliese Dodds

 

Second reading negatived on division  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


 
 

Public Bill Committee Proceedings: 26 February 2019        

6

 

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

 
 

(d)    

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

 

Kingdom and different regions of England.”

 

Bill, as amended, to be reported.

 


 

 

Revised 26 February 2019