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Session 2012 - 13
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Other Bills before Parliament

Financial Services Bill

Financial Services Bill
The Bill is divided into two volumes. Volume I contains the Clauses. Volume II
contains the Schedules to the Bill.
EXPLANATORY NOTES
Explanatory notes to the Bill, prepared by the Treasury, are published separately as
HL Bill 25—EN.
EUROPEAN CONVENTION ON HUMAN RIGHTS
Lord Sassoon has made the following statement under section 19(1)(a) of the Human
Rights Act 1998:
In my view the provisions of the Financial Services Bill are compatible with the
Convention rights.
HL Bill 25                                                                                               55/2
Financial Services Bill
The Bill is divided into two Volumes. Volume I contains the Clauses. Volume II
contains the Schedules to the Bill.
Contents
Part 1
Bank of England
1    Deputy Governors
2    The Bank’s financial stability objective
3    Financial stability strategy and Financial Policy Committee
4    Further amendments relating to Bank of England
Part 2
Amendments of Financial Services and Markets Act 2000
Financial Conduct Authority and Prudential Regulation Authority
5    The new Regulators
Regulated activities
6    Extension of scope of regulation
7    Orders under section 22 of FSMA 2000
8    Designation of activities requiring prudential regulation by PRA
Permission to carry on regulated activities
9    Permission to carry on regulated activities
Passporting
10    Passporting: exercise of EEA rights and Treaty rights
Performance of regulated activities
11    Prohibition orders
12    Approval for particular arrangements
13    Further amendments relating to performance of regulated activities
HL Bill 25                                                                                               55/2
Financial Services Bill ii
Official listing
14    FCA to exercise functions under Part 6 of FSMA 2000
15    Discontinuance or suspension at the request of the issuer: procedure
16    Listing rules: disciplinary powers in relation to sponsors
17    Primary information providers
18    Penalties for breach of Part 6 rules
19    Repeal of competition scrutiny power
Control of business transfers
20    Control of business transfers
Hearings and appeals
21    Proceedings before Tribunal
Rules and guidance
22    Rules and guidance
23    Short selling rules
Control over authorised persons
24    Control over authorised persons
25    Powers of regulators in relation to parent undertakings
Recognised investment exchanges and clearing houses
26    Exemption for recognised investment exchanges and clearing houses
27    Powers in relation to recognised investment exchanges and clearing houses
28    Recognition requirements: power of FCA and Bank to make rules
29    Recognised bodies: procedure for giving directions under s.296 etc
30    Power to take disciplinary measures against recognised bodies
31    Repeal of special competition regime
32    Sections 26 to 31: minor and consequential amendments
Suspension and removal of financial instruments from trading
33    Suspension and removal of financial instruments from trading
Discipline and enforcement
34    Discipline and enforcement
Financial Services Compensation Scheme
35    The Financial Services Compensation Scheme
Financial ombudsman service
36    The financial ombudsman service
Financial Services Bill iii
Lloyd’s
37    Lloyd’s
Information
38    Information, investigations, disclosure etc.
Auditors and actuaries
39    Auditors and actuaries
Consumer protection and competition
40    Provisions about consumer protection and competition
Insolvency
41    Insolvency
Miscellaneous amendments of FSMA 2000
42    The consumer financial education body
43    Members of the professions
44    International obligations
45    Interpretation of FSMA 2000
46    Parliamentary control of statutory instruments
Part 3
Mutual societies
Transfer of functions
47    Mutual societies: power to transfer functions
48    Further provision that may be included in orders under section 47
49    Evidence
50    Repeals in Part 21 of FSMA 2000
Building societies: miscellaneous
51    Building societies: creation of floating charges
52    Power to direct transfer of building society’s business
Interpretation
53    Interpretation of Part 3
Part 4
Collaboration between Treasury and Bank of England, FCA or PRA
54    Duty of Bank to notify Treasury of possible need for public funds
55    Duty of Bank to notify Treasury of changes
56    Circumstances in which Treasury power of direction exercisable
Financial Services Bill iv
57    Treasury power of direction
58    Directions under section 57: supplementary provisions
59    Duty to lay direction etc before Parliament
60    Duty of Treasury, Bank and PRA to co-ordinate discharge of functions
61    Memorandum of understanding: crisis management
62    Memorandum of understanding: international organisations
63    Interpretation of Part 4
Part 5
Inquiries and investigations
Inquiries
64    Cases in which Treasury may arrange independent inquiries
65    Power to appoint person to hold an inquiry
66    Powers of appointed person and procedure
67    Conclusion of inquiry
68    Obstruction and contempt
Investigations
69    Duty of FCA to investigate and report on possible regulatory failure
70    Duty of PRA to investigate and report on possible regulatory failure
71    Interpretation of section 70
72    Modification of section 70 in relation to Lloyd’s
73    Power of Treasury to require FCA or PRA to undertake investigation
74    Conduct of investigation
75    Conclusion of investigation
76    Statements of policy
Publication of reports
77    Publication of reports of inquiries and investigations
Supplementary
78    Interpretation and supplementary provision
Part 6
Investigation of complaints against regulators
79    Arrangements for the investigation of complaints
80    Relevant functions in relation to complaints scheme
81    Consultation in relation to, and publication of, complaints scheme
82    Investigation of complaints
83    Exemption from liability in damages
Financial Services Bill v
Part 7
Amendments of Banking Act 2009
Special resolution regime and bank administration
84    Private sector purchasers
85    Property transfer instruments: property held on trust
86    Reports following exercise of a stabilisation power
87    State aid
Inter-bank payment systems
88    Inter-bank payment systems
89    International obligations
Further amendments
90    Amendments relating to new regulators
Part 8
Miscellaneous
Consumer credit
91    Power to make further provision about regulation of consumer credit
Amendments of Companies Act 1989
92    Amendments of Companies Act 1989
Settlement systems
93    Evidencing and transfer of title to securities without written instrument
Director of Savings
94    Provision of services by Director of Savings
Part 9
General
Further amendments and repeals
95    Further minor and consequential amendments and repeals
Orders
96    Orders: general
97    Orders: Parliamentary control

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