Financial Services Bill

Page 17, line 35, at end insert “, and

(e) the ease with which consumers can identify and obtain services which are appropriate to their needs and represent good value for money”

Page 17, line 35, at end insert “, and

(e) the ease with which consumers can access regulated financial services that meet their needs”

Page 17, line 35, at end insert—

“( ) the role of regulation in enabling innovative business models to compete with established businesses, and

( ) the role of regulation in enabling other government departments to extend the considerations and facilities to innovative businesses that they extend to established businesses”

[Retabled as Amendment 118AA]

Page 17, line 35, at end insert—

“(3) In furtherance of the competition objective, the FCA shall publish, maintain and review a code “The access and choice code” setting out (amongst other things)—

(a) the approach that the FCA will take to ensure that the market provides different consumers with access to and choice about products and services that are suitable for their needs;

(b) the approach that the FCA will take to ensure that the business conduct of those providing regulated financial services continues to promote competition in the interests of different consumers over the life of any agreement;

(c) the additional steps that the FCA may take where competition does not deliver access and choice to suitable products and services for different consumers.

(4) The Treasury may by order specify—

(a) financial needs of different consumers that are to be considered essential;

(b) the outcomes that are necessary to demonstrate that essential financial needs of different consumers are met.

(5) Sections 138L(1)(b) and (2) to (5) and 138K do not apply in relation to rules made by the FCA if it considers that it is necessary or expedient not to comply with them for the purpose of achieving an outcome specified in an order under subsection (4) of this section.

(6) Where the FCA considers that it is unable to achieve an outcome specified in an order made under subsection (4), the Treasury may by order confer additional powers on the FCA or direct obligations on those providing regulated financial services to ensure that the essential needs of different consumers are met.”

Page 17, line 35, at end insert—

“(3) Section 21 of the Financial Services and Markets Act 2000 (restrictions on financial promotion) is amended as follows.

(4) At the end of subsection (2) insert “or

(c) the content of the communication is for the purposes of a social investment.””

Page 17, line 35, at end insert—

“1F The deprived communities objective

(1) The deprived communities objective is to promote an appropriate level of financial services provision in deprived communities.

(2) In order to facilitate this objective, the FCA must require each PRA-authorised person to publish relevant data on a quarterly basis by postcode, including the total amount of lending to small enterprises and medium enterprises.

(3) In considering what level of provision is appropriate, the FCA must have regard to the needs of small enterprises, third sector organisations and consumers in deprived communities for affordable loans, savings and insurance products.”

Page 17, leave out lines 37 to 44

Page 18, leave out lines 1 to 32

Page 19, line 3, at end insert—

“(j) by claims management companies who provide services to persons covering litigation, or claims under regulation schemes or voluntary arrangements”

Page 19, line 3, at end insert—

“( ) by debt management companies or debt adjustment services companies”

Page 19, line 8, at end insert—

“( ) money laundering and the financing of terrorism”

Page 19, line 14, at end insert—

“( ) “Direct finance platform” means an electronic system, operated by a direct finance platform operator, which brings together multiple participants, the majority of whom are consumers or micro-enterprises (or both), in the system and in accordance with non-discretionary rules that are binding on the direct finance platform operator and the participants.”

Page 19, line 47, at end insert—

““social investment” means investment into or by organisations which exist wholly or mainly to provide benefits for society or the environment;”

Page 19, line 47, at end insert—

““deprived communities” means those local areas identified by the Indices of Multiple Deprivation of England, Scotland and Wales, as being within the most deprived 10 per cent of all communities in the United Kingdom;

“third sector organisation” has the meaning given under section 18(2) of the Dormant Bank and Building Society Accounts Act 2008;

“small enterprises” has the meaning given under section 382 of the Companies Act 2006.”

Page 20, line 13, at end insert—

1JA Consumer protection: further objectives

The Treasury may by order—

(a) amend or supplement the factors set out in section 1C(2) to which the FCA must have regard when considering what degree of protection may be appropriate for consumers, where one of the principal aims of consumers engaging in investment activity is to benefit society or the environment; and

(b) specify circumstances in which the FCA may regard consumers to be engaging in investment activity with the aims set out in paragraph (a).”

Page 20, line 21, at end insert—

“1KA Coordination between the FCA and Financial Reporting Council

The FCA must coordinate with the Financial Reporting Council (FRC) with a view to promoting—

(a) understanding application of the principles of the UK Stewardship Code by relevant authorised persons,

(b) transparency regarding the approach to the Stewardship Code taken by relevant authorised persons, and

(c) high standards of responsible ownership, including in relation to the management of environmental, social and governance risks and opportunities.”

Page 20, line 21, at end insert—

“1KB Memorandum of understanding between FCA and Financial Reporting Council

(1) The FCA must prepare and maintain a memorandum of understanding with the Financial Reporting Council (FRC) describing in general terms how they intend to coordinate their activities.

(2) The FCA must—

(a) lay before Parliament a copy of the memorandum and any revised memorandum, and

(b) publish the memorandum as currently in force in such manner as it thinks fit.”

Page 21, line 16, leave out “and”

Page 21, line 17, at end insert “, and

(c) persons representing the constituent parts of the United Kingdom”

Page 21, line 34, leave out “and”

Page 21, line 35, at end insert “and

(c) persons representing the constituent parts of the United Kingdom”

Page 22, line 23, leave out “and”

Page 22, line 24, at end insert “, and

(f) persons representing the constituent parts of the United Kingdom.”

Page 22, line 26, at end insert—

“(7) The Bank must consult with the Markets Practitioner Panel on the regulation of clearing and settlement infrastructure when the FCA agrees that proposed changes will have an impact on the regulation of trading infrastructure.

(8) The Markets Practitioner Panel will be able to request information from the Bank via the FCA to enable them to provide appropriate advice to the FCA.”

Page 22, line 35, leave out “may” and insert “must”

Page 22, line 37, at end insert “taking into account the need to represent the constituent parts of the United Kingdom”

Page 22, line 37, at end insert “, and this representation must include households who use such financial services as the banks and simple savings methods”

Page 22, line 44, at end insert—

“1QA The Social Investment Panel

(1) Arrangements under section 1M must include the establishment and maintenance of a panel of persons (to be known as “the Social Investment Panel”) to represent the interests of organisations which specialise wholly or mainly in social finance or social investment.

(2) The FCA must appoint one of the members of the Social Investment Panel to be its chair.

(3) The Treasury’s approval is required for the appointment or dismissal of the chair.

(4) The FCA must appoint to the Social Investment Panel such individuals who represent—

(a) organisations carrying out social finance activity, and

(b) social sector organisations receiving social investment,

as it considers appropriate.

(5) The FCA may appoint to the Social Investment Panel such other persons as it considers appropriate.

(6) In making the appointments, the FCA must have regard to the desirability of ensuring the representation of a range of different forms of social sector organisations.”

Page 23, line 3, at end insert—

“(2) If the Authority disagrees with a view expressed, or proposal made, in the representation, it must give the Panel a statement in writing of its reasons for disagreeing.”

Page 23, line 5, at end insert—

“( ) If the FCA disagrees with any representations made by the Panels it must give the Panel or Panels a statement in writing of its reasons for disagreeing.”

Page 23, line 8, leave out “may” and insert “must”

[Withdrawn]

Page 23, line 28, at end insert “and the Bank of England.”

Page 23, line 28, at end insert—

“1SA Report to Treasury Select Committee

(1) The FCA must conduct reviews of its own policy and performance if requested by the Treasury Committee of the House of Commons.

(2) On completion of a review, the FCA must make a written report to the Treasury Select Committee setting out the result of the review.”

Page 24, line 20, leave out “or”

Page 24, line 21, at end insert “or

(d) a qualifying EU provision that is specified, or of a description specified, for the purposes of this subsection by the Treasury by order.”

Page 24, line 26, after “promoting” insert “competition among and”

Page 24, line 31, leave out “UK financial system” and insert “financial markets in which UK financial institutions operate”

Page 24, line 34, leave out “UK financial system” and insert “financial markets in which UK financial institutions operate”

Page 24, line 34, at end insert—

“( ) seeking to minimise, as far as possible, the costs to the FSCS or the use of public funds to support or rescue parts of the UK financial services industry”

Page 24, line 34, at end insert—

“(4) The PRA must, so far as is compatible with its general and insurance objectives, discharge its general functions in a way that promotes effective competition in the interests of consumers.”

Page 25, line 14, leave out “those who are or may become”

Page 25, leave out lines 18 to 35

Page 25, line 35, at end insert—

“2DA Strategy

(1) The PRA must—

(a) determine its strategy in relation to its objectives, and

(b) from time to time review, and if necessary revise, the strategy.

(2) Before determining or revising its strategy, the PRA must consult the Bank of England about a draft of the strategy or of the revisions.

(3) The PRA must determine its strategy within 12 months of the coming into force of this section.

(4) The PRA must carry out and complete a review of its strategy before the end of each relevant period.

(5) The relevant period is 12 months beginning with the date on which the previous review was completed, except that in the case of the first review the relevant period is the period of 12 months beginning with the date on which the strategy was determined under subsection (3).

(6) The PRA must publish its strategy.

(7) If the strategy is revised the PRA must publish the revised strategy.

(8) Publication under subsection (6) or (7) is to be in such manner as the PRA thinks fit.”

Page 26, line 8, at end insert—

“2GA Duty to have regard to the competitive consequences of its actions

In discharging its general functions, the PRA shall have regard to—

(a) the desirability of promoting the competitive position of the United Kingdom financial services industry; and

(b) the potential effects on that competitive position of its taking, or failing to take, action.”

Page 26, line 8, at end insert—

“2GA Duty to have regard to competition

In discharging its functions, the PRA shall at all times have regard to the need to—

(a) minimise the adverse effects on competition which may arise from its activities;

(b) avoid unnecessary regulatory barriers to entry or to business expansion;

(c) avoid restriction to consumer choice;

(d) ensure that UK institutions and companies are not placed at a competitive disadvantage.”

Page 27, line 6, at end insert “and consumers”

Page 27, line 9, after “consulting” add “consumers and”

Page 27, line 12, at end insert—

“( ) When undertaking a consultation, the PRA must have regard to the desirability of ensuring a broad representation of practitioners and consumers in the UK financial services sector.”

Page 27, leave out lines 13 and 14 and insert—

“(2) Those arrangements must include the establishment and maintenance of one or more panels of persons representing the interests of practitioners.”

Page 27, leave out lines 13 and 14 and insert—

“(2) At a minimum such arrangements should include the establishment of such panels as the PRA thinks representative of PRA authorised persons, and where appropriate consumers falling within the scope of the insurance objective.”

Page 27, line 13, leave out “may” and insert “must”

Page 27, line 13, leave out from “arrangements” to end of line 14 and insert “should include the establishment of a Practitioner Panel to provide a regular forum for policy debate with a cross section of senior representatives of those firms regulated by the PRA and to consider the cumulative impact of regulation by the PRA and FCA on firms”

Page 27, line 14, at end insert “, or, where appropriate, persons with specialist knowledge of PRA regulated activities”

Page 27, line 16, at end insert “and must report annually on its consultation activities”

Page 27, line 19, leave out “section 2K” and insert “sections 2K and 2LA”

Page 27, line 19, at end insert “but the PRA will not be accountable to practitioners for its decisions having considered the representations”

Page 27, line 19, at end insert “and by the Consumer Panel”

Page 27, line 19, at end insert—

“( ) If the PRA disagrees with a view expressed, or proposal made, in the representation, it must give a statement in writing of its reasons for disagreeing.”

Page 27, line 21, at end insert—

“2LA Arrangements for consulting consumers

(1) The PRA must make and maintain appropriate arrangements for consulting consumers or, where appropriate, those appearing to the PRA to represent the interests of such persons.

(2) The PRA must consider any representations that are made to it by the FCA Practitioner and Consumer Panels.

(3) If the PRA disagrees with a view expressed, or proposal made, in the representation, it must give the Panel or Panels a statement in writing of its reasons for disagreeing.”

Page 27, line 24, leave out “may” and insert “must”

Page 27, line 26, at end insert “and shall inform the Treasury Select Committee of the House of Commons of the nature of and arrangements for the review”

Page 28, line 38, at end insert “, and so as to minimise the burden and cost of compliance borne by persons subject to their principles and rules”

Page 28, line 39, after “restriction” insert “or operational rules”

Page 28, line 39, leave out “is” and insert “are”

Page 28, line 40, after “person” insert “or firm”

Page 28, line 41, after “proportionate” insert “, reasonable and fair”

Page 29, line 1, at end insert “, operational requirement”

Page 29, line 4, at end insert “subject to taking into account the vulnerability of the consumer by virtue of disability, age or incapacity”

Page 29, line 4, at end insert “provided that the relevant authorised persons abide by the duty to act in the best interests of clients”

Page 29, line 7, after “consumers” insert “to act honestly, fairly and professionally”

Page 29, line 15, at end insert—

“(g) the desirability generally of having due regard to the particular requirements of social investment so far as is compatible with the advancement by each regulator of its objectives”

Page 29, line 15, at end insert—

“(h) the general principle that those regulated should reasonably assist consumers in taking responsibility”

Page 29, line 15, at end insert—

“(g) the principle that, where appropriate, authorised persons should act honestly, fairly and professionally in accordance with the best interests of consumers who are their clients;

(h) the principle that, where appropriate, authorised persons should manage conflicts of interest fairly, both between itself and its clients and between clients.”

Page 29, line 15, at end insert—

“( ) the principle that, where appropriate, authorized persons should have a fiduciary duty towards the consumers who are their clients.”

Page 29, line 15, at end insert—

“(g) the need to ensure that each regulator employs staff with the necessary knowledge, experience and expertise of the sectors that they regulate, and of policy making at the European level.”

Page 29, line 17, at end insert—

“( ) “Social investment” means investment into or by organisations which exist wholly or mainly to provide benefits for society or the environment.”

Page 29, line 18, at end insert—

“( ) Subsection (1)(b) shall include consideration of the capacity of the financial sector to contribute to the growth of the United Kingdom economy in the medium or long term.”

Page 29, line 23, at end insert “, including but not limited to, the UK Corporate Governance Code”

Page 29, line 42, at end insert—

“(d) that the exercise of their functions in relation to persons regulated by both the PRA and the FCA is coordinated with a view to avoiding the making of duplicative requests and the imposition of inconsistent requirements on such persons.”

Page 29, line 42, at end insert—

“(d) that the PRA and FCA are considered equal in status.”

Page 29, line 42, at end insert—

“( ) that the regulators coordinate in such a manner as to minimise unnecessary additional expenses that might be incurred by virtue of the separate administration of the FCA and the PRA, and to maximise any common administrative savings achievable through close coordination”

Page 30, line 4, at end insert—

“(c) the FCA and PRA shall publish guidance explaining those circumstances covered by paragraphs (a) and (b) where the duty to co-ordinate shall not apply.”

Page 30, line 21, at end insert—

“( ) The memorandum must in particular contain provisions about how the regulators intend to comply with section 3D in relation to the promotion of high standards of stewardship by institutional investors.”

Page 31, line 11, at end insert “and consult publicly on any proposed changes”

Page 31, leave out lines 19 to 24 and insert—

“( ) The memorandum need not relate to any aspect of compliance with section 3D if the regulators consider that publication of information about that aspect would be against the public interest.”

Page 31, line 24, at end insert—

“( ) The memorandum shall contain an estimate of the additional annual costs involved in the administration of the FCA and PRA when compared with the estimated costs of the administration of the Financial Services Authority.”

Page 31, line 30, leave out from “responsibility” to end of line 32 and insert “for measures designed, in relation to with-profits policies, for the purpose in subsection (2) belongs to the PRA rather than the FCA.”

Page 31, line 45, at end insert—

“(4A) A with-profits fund is a fund into which premiums for with-profits policies are paid, and the PRA will regulate with-profits funds in line with the following principles—

(a) the purposes of the with-profits fund will be to provide guaranteed benefits and subject to this to generate profits for distribution to policyholders in the proportions specified in the with-profits policy;

(b) the with-profits fund will be managed for those and not for other purpose;

(c) any profits made by the fund will be distributed insofar as their retention is not justified for the purposes of the with-profits fund; and

(d) the insurer will exercise its discretions reasonably and fairly and it must not exercise its discretion in ways that unduly discriminate.”

Page 32, line 11, at end insert—

“( ) In exercising its functions under this section, the PRA must make and maintain effective arrangements for consulting the Consumer Panel, consumers, or where appropriate, persons appearing to represent the interests of consumers.”

Page 37, line 16, leave out from “with” to “that” in line 18 and insert—

“(a) a local weights and measures authority in England, Wales or Scotland, or

(b) the Department of Enterprise, Trade and Investment in Northern Ireland,

for the provision by the authority or department to the FCA of services which relate to activities to which this subsection applies.

(5A) Subsection (5) applies to activities”

Page 37, line 24, at end insert “and must be published in such manner as the Bank of England considers appropriate”

Page 38, line 7, at end insert “particularly to those members of the public on lower incomes”

Page 38, line 7, at end insert “and targeted, proactive and easily accessible advice to those encountering economic disadvantage, financial exclusion or financial exploitation”

Page 38, leave out line 8 and insert—

“(f) providing high quality information about, and promoting awareness of, registered charities which provide debt services;”

Page 38, line 9, leave out “other organisations” and insert “registered charities”

Page 38, line 14, at end insert—

“( ) through advertising and promotional activities, the visibility and recognition amongst the general public of the support provided by registered charities which provide debt services”

The above-named Lords give notice of their intention to oppose the Question that Clause 5 stand part of the Bill.

Page 175, line 30, after first “functions” insert “, in relation to the FCA,”

Page 176, line 2, at end insert “following consideration by the Treasury Select Committee of the House of Commons”

Page 177, leave out lines 16 to 21

Page 178, line 9, at end insert—

9A (1) The FCA must publish a record of each meeting of its governing body—

(a) before the end of the period of 6 weeks beginning with the day of the meeting, or

(b) if no meeting of the governing body is subsequently held during that period, before the end of the period of 2 weeks beginning with the day of the next meeting.

(2) The record must specify any decision taken at the meeting (including decisions to take no action) and must set out, in relation to each decision, a summary of the deliberations of the governing body.

(3) Sub-paragraphs (1) and (2) do not require the publication of information whose publication within the time required by sub-paragraph (1) would in the opinion of the governing body be against the public interest.

(4) Publication under this section is to be in such manner as the FCA thinks fit.”

Page 178, line 27, at end insert—

“(ia) an analysis of the costs and benefits arising from regulation for which the FCA is responsible,”

Page 178, line 30, at end insert—

“(k) any direction made under section 137C or 137P (or both), the outcome of any such direction and how it is complied with section 138N”

Page 178, line 41, at end insert—

“10A (1) In relation to each report made under paragraph 10, the FCA must publish at the same time as the report an invitation to members of the public to make representations to the FCA, within the 3 months beginning with the date of publication—

(a) about the report,

(b) about the way in which the FCA has discharged, or failed to discharge, its functions during the period to which the report relates, and

(c) about the extent to which, in their opinion, the FCA’s objectives have been advanced and the FCA has considered the regulatory principles in section 3B.

(2) The invitation must be published in the way appearing to it to be best calculated to bring the invitation to the attention of the public.”

Page 178, line 44, after “meeting”)” insert “as part of the consultation and”

Page 179, leave out lines 28 and 29 and insert—

“12 (1) The FCA must publish a report about its consultation and its annual meeting in accordance with paragraph 10A.

(2) The report must contain an account, in general terms, of any representations received in pursuance of the invitation published under that paragraph.

(3) The report must be published not later than 4 months after the date on which the report under paragraph 10 was published.”

Page 182, line 9, at end insert—

“( ) to ensure that all providers of consumer credit contribute to the work undertaken by registered charities in the provision of debt services within the UK”

Page 182, line 11, after “Act” insert “or any of the other Acts mentioned in section 1A(6)”

Page 182, line 27, at end insert—

“(3A) Neither section 1A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).”

Page 183, line 16, leave out from “as,” to end of line 18 and insert “a member, officer or member of staff of the FCA;”

Page 183, line 33, leave out “or a member of its governing body”

Page 184, leave out lines 33 to 37

Page 185, line 4, at end insert—

“The Bank must be satisfied that the non-executive members of the PRA Board have relevant experience and expertise across the sectors (including banking and insurance) that are subject to regulation by the PRA.”

Page 185, line 4, at end insert—

“The Bank must be satisfied that the non-executive members of the PRA Board include a number of members with relevant experience and expertise in the insurance sector.”

Page 185, line 10, at end insert “merit, fairness, openness and”

Page 185, line 43, after “by” insert “the Oversight Committee of”

Page 185, line 45, leave out “the Bank” and insert “that Committee”

Page 185, line 45, at end insert “with the approval of the Treasury”

Page 186, leave out lines 1 to 4

Page 186, line 9, after “functions” insert “or its functions under section 2DA (strategy)”

Page 186, line 25, at end insert—

17A (1) The PRA must, for each of its financial years, adopt an annual budget which has been approved by the Bank.

(2) The budget must be adopted before the start of the financial year to which it relates, except that the first budget must be adopted as soon as reasonably practicable after the coming into force of this paragraph.

(3) The PRA may, with the approval of the Bank, vary the budget for a financial year at any time after its adoption.

(4) The PRA must publish each budget, and each variation of a budget, in such manner as the PRA thinks fit.”

Page 186, line 38, at end insert—

“(ga) an analysis of the costs and benefits arising from regulation for which the PRA is responsible,”

Page 187, line 22, at end insert—

“19A (1) Not later than 3 months after publishing the report under paragraph 19, the PRA must hold a public meeting (“the annual meeting”) as part of the consultation and for the purposes of enabling that report to be considered.

(2) The PRA must organise the annual meeting so as to allow—

(a) a general discussion of the contents of the report which is being considered, and

(b) a reasonable opportunity for those attending the meeting to put questions to the PRA about the way in which it discharged, or failed to discharge, its functions during the period to which the report relates.

(3) But otherwise the annual meeting is to be organised and conducted in such a way as the PRA considers appropriate.

(4) The PRA must give reasonable notice of its annual meeting.

(5) That notice must—

(a) give details of the time and place at which the meeting is to be held,

(b) set out the proposed agenda for the meeting,

(c) indicate the proposed duration of the meeting,

(d) give details of the PRA’s arrangements for enabling persons to attend, and

(e) be published by the PRA in the way appearing to it to be best calcuated to bring the notice to the attention of the public.

(6) If the PRA proposes to alter any of the arrangements which have been included in the notice given under sub-paragraph (5), it must—

(a) give reasonable notice of the alteration, and

(b) publish that notice in the way appearing to the PRA to be best calculated to bring it to the attention of the public.”

Page 187, line 24, after “consultation” insert “and its annual meeting”

Page 190, line 6, after “Act” insert “or any of the other Acts mentioned in section 2A(6)”

Page 190, line 22, at end insert—

“(3A) Neither section 2A(6)(d) nor the definition of “functions” in paragraph 1 applies for the purposes of sub-paragraph (2).”

Page 191, line 8, leave out from “as,” to end of line 10 and insert “a member, officer or member of staff of the PRA;”

Page 191, line 25, leave out “or a member of its governing body”

Page 39, line 9, at end insert—

23C Provision of services consisting of advice or services in respect of claims for compensation, restitution, repayment or any other remedy for loss or damage, or in respect of some other obligation.”

Page 40, line 8, at end insert—

“( ) a draft of the order has been consulted upon with such persons as the Treasury considers appropriate,”

Page 41, line 20, at end insert—

“( ) a draft of the order has been consulted upon with such persons as the Treasury considers appropriate,”

Page 42, line 5, at end insert—

“( ) An application for permission must include a statement as to whether the regulated activity is charged for, and in a case of an individual who provides the financial advice without charge, no permission is required.”

Page 44, line 17, after “FCA” insert “(which shall not be required where the applicant seeks permission to carry on the regulated activity of accepting deposits)”

Page 46, line 17, after “FCA” insert “(which shall not be required where the applicant holds permission to carry on the regulated activity of accepting deposits)”

Page 46, line 26, after “FCA” insert “(except in a case where the applicant holds permission to carry on the regulated activity of accepting deposits)”

Page 46, line 41, after “FCA” insert “(except in a case where immediately before the variation the applicant held permission to carry on the regulated activity of accepting deposits)”

Page 47, line 47, after “FCA” insert “(except in a case where the applicant holds permission to carry on the regulated activity of accepting deposits)”

Page 48, line 4, at end insert “(which shall not be required where the applicant holds permission to carry on the regulated activity of accepting deposits)”

Page 49, line 9, after “if” insert “after investigation”

Page 50, line 22, after “FCA” insert “(except in a case where the applicant holds permission to carry on the regulated activity of accepting deposits)”

Page 53, line 45, leave out “may” and insert “must”

Page 53, line 46, after “relationship” insert “(including family, business or other association)”

Page 55, line 31, after “FCA” insert “(except in a case where the applicant holds permission to carry on the regulated activity of accepting deposits)”

Page 58, line 40, at end insert—

55Z1 Notification of ESMA

A regulator must notify ESMA of—

(a) the giving by it of a Part 4A permission to an investment firm, where the regulated activities to which the permission relates are investment services and activities,

(b) the giving by it of a Part 4A permission to a management company (as defined in section 237(2)), where the regulated activities to which the permission relates fall within paragraph 8 of Schedule 2,

(c) the cancellation by it of a Part 4A permission of a description falling within paragraph (b), or

(d) the cancellation by it of a Part 4A permission under section 55J(6), in reliance on any one or more of the conditions in section 55K(1)(b) to (d).

55Z2 Notification of EBA

(1) A regulator must notify EBA of—

(a) the giving by it of a Part 4A permission to a credit institution, where the regulated activity to which the permission relates falls within paragraph 4 of Schedule 2,

(b) the cancellation by it of a Part 4A permission of a description falling within paragraph (a).

(2) “Credit institution” has the meaning given in section 1H(8).”

Page 198, line 39, leave out sub-paragraph (2) and insert—

“(2) For “the Authority” or “the Authority’s”, in each place, substitute “the appropriate regulator” or “the appropriate regulator’s”.”

Page 199, line 1, leave out “(7)” and insert “(8)”

Page 199, line 2, leave out “(8)” and insert “(9)”

Page 199, line 10, leave out “(9)” and insert “(10)”

Page 199, line 13, at end insert—

“( ) In the heading, for “Authority” substitute “appropriate regulator”.”

Page 199, line 32, leave out sub-paragraph (2) and insert—

“(2) For “the Authority” or “the Authority’s”, in each place, substitute “the appropriate regulator” or “the appropriate regulator’s”.”

Page 199, line 34, leave out “(11)” and insert “(11A)”

Page 199, line 35, leave out “(11A)” and insert “(11AB)”

Page 200, line 39, leave out sub-paragraph (4) and insert—

“(4) In subsections (3) to (11), for “the Authority” substitute “the regulator”.”

Page 201, line 1, leave out “(10)” and insert “(11)”

Page 201, line 2, leave out “(11)” and insert “(12)”

Page 59, line 24, after “if” insert “after investigation”

Page 61, line 13, leave out from beginning to end of line 8 on page 62 and insert—

“(3) The PRA and FCA must, in relation to dual-authorised persons—

(a) specify in rules those functions carried on by authorised persons which are significant-influence functions;

(b) set up and maintain joint arrangements to exercise their power under section 59(3)(a) to approve holders of any significant-influence function.

(4) The FCA must, in relation to FCA-authorised persons—

(a) specify in rules those functions carried on by authorised persons which are significant-influence functions;

(b) set up and maintain arrangements to exercise its power under section 59(4)(a) to approve holders of any significant-influence function.””

Page 63, leave out lines 34 and 35 and insert—

“( ) In section 72—”

Page 63, line 36, leave out paragraph (a)

Page 63, line 40, leave out subsection (3)

Page 64, line 12, leave out subsections (6) to (10)

Page 64, line 25, leave out from “State)” to end of line 26 and insert—

“(a) in subsection (1), for “competent authority”, in the second and third places, substitute “FCA”, and

(b) in subsection (3A), for “competent authority” substitute “FCA”.”

Page 64, line 32, after ““other”” insert—

“( ) in subsection (1A), for “competent authority”, in the first place, substitute “FCA”.”

Page 64, line 40, leave out paragraph (a)

Page 65, line 1, leave out subsection (12)

Page 65, line 4, leave out paragraphs (a) to (k)

Page 65, line 19, leave out paragraph (l)

Page 66, line 39, after “may” insert “after investigation”

Page 67, line 42, after “state” insert “the reasons for imposing a penalty and”

Page 68, line 5, at end insert “and the reasons for suspension or restriction”

Page 71, line 5, leave out “may” and insert “must”

Page 72, line 11, after “may” insert “after investigation”

Page 72, line 14, at end insert—

“( ) The FCA must provide reasons for the actions which it has taken under section 89Q.”

Page 74, line 37, after “may” insert “after investigation”

Page 77, line 36, leave out paragraphs (a) to (c)

Page 78, line 14, leave out “may” and insert “must”

Page 80, line 44, at end insert—

“(11) The FCA shall only take a decision under subsections (1) and (2) if all of the following conditions are fulfilled—

(a) a financial instrument or activity or practice gives rise to significant investor protection concerns or poses a serious threat to the orderly functioning and integrity of financial markets or the stability of whole or part of the financial system;

(b) existing regulatory requirements applicable to the financial instrument or activity or practice do not sufficiently address the risks referred to in subsections (1) and (2) and the issue would not be better addressed by improved supervision or enforcement of existing requirements;

(c) the action is proportionate taking into account the nature of the risks identified, the level of sophistication of investors or market participants concerned and the likely effect of the action on investors and market participants who may hold, use or benefit from the financial instrument or activity.

(12) When taking action under subsection (1) or (2), the FCA shall take into account the extent to which the action does not have a detrimental effect on the efficiency of financial markets or on investors that is disproportionate to the benefits of the action.

(13) The FCA shall revoke a prohibition or restriction if the conditions of subsection (11) are no longer met.”

Page 88, leave out lines 9 to 11

Page 88, line 9, leave out “, or is likely to be,”

Page 89, line 22, leave out “must” and insert “may”

Page 89, line 23, leave out “(even if the direction is revoked)”

Page 97, line 30, leave out from beginning to end of line 8 on page 98

Page 98, line 11, leave out “temporary”

Page 98, line 22, at end insert—

“(7) The statement of policy prepared under subsection (1) must—

(a) specify how, in exercising the functions mentioned in that subsection, the FCA will comply with the requirements of section 3D (regulatory principles),

(b) set out the process by which decisions on the use of temporary product intervention rules are made, including, but not limited to, who is accountable for the decision, how the conditions in section 137C(11) have been fulfilled and the type of evidence relied upon,

(c) in circumstances where powers have been used, set out the process for reviewing the decision.

(8) The FCA’s statement of policy must include having regard to whether—

(a) the proposed action addresses a threat to section 137C (1)(a) or (1)(b), or both;

(b) regulatory requirements that are applicable to the relevant financial instrument or activity do not address the threat.”

Page 99, line 4, leave out “may” and insert “must”

Page 99, line 27, leave out “may” and insert “must”

Page 101, line 4, at end insert—

“(5) The FCA and the Office of Fair Trading (OFT) must co-ordinate in the exercise of their functions to promote competition in financial services, and the FCA and the OFT must prepare and maintain a memorandum of understanding which describes the role of each regulator in relation to promoting competition in financial services markets.

(6) The memorandum of understanding should make clear the OFT will only conduct a market study into a financial services market within the regulatory remit of the FCA in exceptional circumstances.”

Page 103, line 25, after “may” insert “after consultation with such persons as they consider appropriate”

Page 108, leave out lines 29 and 30

Page 108, leave out lines 34 to 39 and insert—

“(6) A group, whether it is a qualifying parent undertaking or not, that contains a subsidiary that is a financial institution regulated by the PRA or the FCA shall keep any item-level purchase data or other personal data that it collects from customers, strictly separate from its financial institution.”

Page 110, line 3, after “notice” insert “containing the reasons for the direction”

Page 114, line 5, after “must” insert “consult with such persons as it considers appropriate”

Page 116, line 14, after “if” insert “after investigation”

Page 117, line 2, after “if” insert “after investigation”

Page 117, line 12, at end insert “the reason for its decision to issue a statement and”

Page 117, line 23, after “out” insert “the reasons for its decision to issue a statement and”

Page 118, line 6, at end insert “, and

(c) the proportion of that business in relation to the firm or person being investigated”

Page 223, line 25, leave out “subsection (5)” and “subsections (5) and (6)”

Page 223, line 40, leave out from “provision)” to “substitute” in line 41 and insert “for “Authority” (in each place)”

Page 225, line 12, leave out “and (12) (in both places)” and insert “(12) (in both places) and (13) (in the first place),”

Page 232, line 23, leave out paragraph (b)

Page 233, line 18, leave out “and”

Page 233, line 19, at end insert “, and

(c) for “a final notice” substitute “the notice required by subsection (2A)”.

( ) After that subsection insert—

“(2A) The notice required by this subsection is—

(a) in a case where the regulator is acting in accordance with a direction given by the Tribunal under section 133(6)(b), or by the court on an appeal from a decision by the Tribunal under section 133(6), a further decision notice, and

(b) in any other case, a final notice.”.”

Page 233, line 23, leave out from beginning to end of line 29 on page 234

Page 233, leave out line 39

Page 234, line 30, at end insert—

“( ) In subsection (7A), for “the Authority” substitute “a regulator”.”

Page 234, line 42, leave out paragraph (a)

Page 239, line 33, at end insert—

“( ) In subsection (7), omit “board members,”.”

Page 240, line 12, at end insert—

“(5A) In making any provision of the scheme under subsection (3), the relevant regulator must so far as practicable establish classes of authorised person on which levies may be imposed such that the claims that are likely to be made in respect of that class of person share a close affinity.

(5B) For these purposes, a claim shares a close affinity with another claim if both the nature of the services or activities and the type of financial instruments in relation to which the claims arise exhibit a high degree of similarity.”

Page 242, line 11, at end insert—

“In section 221 (powers of court), in subsection (2), after “director or” insert “other”.

In section 222 (statutory immunity), in subsection (1), omit “board member,”.”

Page 242, line 16, at end insert—

“After section 225 insert—

“225A General obligations

(1) In discharging its functions, the scheme operator must comply with the requirements of this section.

(2) The scheme operator must, so far as is reasonably practicable, act in a way which is compatible with the FCA’s strategic and operational objectives and regulatory principles.””

Page 243, line 5, leave out “must” and insert “may, if it considers appropriate to do so in any particular case,”

Page 243, line 7, leave out from first “the” to “to” in line 9 and insert “scheme operator decides it is appropriate”

Page 243, line 10, leave out from “must” to end of line 11 and insert “explain the rationale for publication”

Page 243, line 17, at end insert—

“( ) Unless the respondent agrees, a report of a determination published by the scheme operator may not include the name of subject of the respondent, or particulars which, in the opinion of the scheme operator, are likely to identify the respondent or reveal commercially sensitive information.”

Page 243, line 17, at end insert—

“( ) Where the scheme operator considers it appropriate to publish a report of its determination, the scheme operator must specify a reasonable period (which may not be less than 28 days) within which the respondent may make representations to the scheme operator.”

Page 243, line 17, at end insert—

“( ) The scheme operator must then decide, within a reasonable period, whether to publish the determination in question.”

Page 243, line 17, at end insert—

“In section 232 (powers of court), in subsection (2), after “director or” insert “other”.”

Page 243, line 20, at beginning insert “If the scheme operator considers that an issue with implications wider than an individual case has arisen or could arise it shall suspend determination of such complaints and refer the matter to the FCA and”

Page 244, line 7, at end insert—

“The FCA must take such steps as are necessary to ensure that the scheme operator exercises those functions in a manner which is consistent with its strategic and operational objectives and the regulatory principles, and at least once a year, the FCA will conduct a review of the scheme operators’ operations, policies and procedures.”

Page 244, line 18, at end insert—

“( ) This must include, but not be limited to, a regulatory clarification procedure pursuant to which the FCA shall be called upon to resolve any issue or provide any guidance to the ombudsman (or both) with respect to any applicable regulatory matters arising from or in relation to a complaint or group of complaints.”

Page 244, line 22, at end insert—

“In paragraph 6 (status), in sub-paragraph (2), omit “board members,”.”

Page 246, line 4, at end insert—

“(za) in sub-paragraph (1)—

(i) for “scheme operator” substitute “FCA”; and

(ii) after “for reference of complaints” substitute “to the scheme operator”,

(zb) in sub-paragraph (2)—

(i) in the first sentance, leave out “may” and insert “must”;

(ii) in sub-sub-paragraph (a) after “reasonable” insert “which matters must include, but not be limited to—

(i) the FCA’s strategic and operational objectives and regulatory principles;

(ii) any applicable laws and regulations in force at the relevant times;

(iii) any applicable regulatory rules, guidance and standards in place at the relevant times; and

(iv) the finding or outcome of any such other complaint determination body or process as referred to in sub-paragraph (2)(c) below;”;

(iii) leave out sub-paragraph (7).”

Page 246, line 26, at end insert—

“After paragraph 19, insert—

“The scheme operator must consult publicly on any information, advice or guidance produced prior to publication.””

Page 250, line 35, at end insert—

“( ) at the end of paragraph (i), omit “or”,”

Page 250, line 37, after “insert” insert ““or”

Page 255, leave out lines 29 and 30 and insert—

“(i) officers of, or members of the staff of, the regulator, or”

Page 255, line 43, leave out “or members of its governing body”

Page 124, line 20, at end insert—

“( ) In section 340 of FSMA 2000 (appointment of auditors and actuaries) after subsection (2) insert—

“(2A) Rules must require auditors of deposit taking institutions to provide a narrative report on the institution’s risk management policies and its exposure to risk as part of the audited accounts of the institution.””

Page 125, line 3, after “of” insert “the general public or”

Page 125, line 18, leave out from beginning to end of line 34 on page 126

Page 127, line 25, leave out from beginning to end of line 5 on page 128

Page 128, line 5, at end insert—

234J Collective proceedings and collective redress

(1) In respect of claims to the courts covering a significant number of consumers with equivalent or near equivalent interests or complaints, the following procedures will apply.

(2) The court may, on the application of a person (“the representative”), by order authorise the representative to bring collective proceedings before the court in respect of financial services claims of a kind specified in the order.

(3) “Collective proceedings” means proceedings brought by the representative on behalf of persons who are entitled to bring (or have brought) proceedings in respect of the specified kind of claim.

(4) “Collective proceedings order” means an order under subsection (2).

(5) A collective proceedings order may be made only if it appears to the court that the specified kind of claims raise the same, similar or related issues of fact or law.

(6) A person may be authorised under subsection (2) to bring proceedings even if the person would not otherwise be regarded as having any interest, or any sufficient interest, in the proceedings.

(7) Proceedings may be authorised under subsection (2) even if each represented person does not have a claim of the specified kind against all of the defendants to the proceedings.”

Page 128, line 5, at end insert—

“234K Collective proceedings: “opt-in” and “opt-out” bases

(1) This section applies where a collective proceedings order has been made.

(2) The court must direct that the collective proceedings are to be brought either on an “opt-in” basis or on an “opt-out” basis.

(3) If the court directs that the proceedings are to be brought on an “opt-out” basis, it may at any time direct that any issue in the proceedings is to be determined on an “opt-in” basis.

(4) Any direction may be varied or revoked by a further direction.

(5) Collective proceedings are brought on an “opt-in” basis if they are brought on behalf of each person who—

(a) has a claim of the specified kind, and

(b) notifies the representative, in a way and by a time specified by the court, that the claim should be included in the collective proceedings.

(6) Collective proceedings are brought on an “opt-out” basis if they are brought on behalf of each person who has a claim of the specified kind except—

(a) any person who notifies the representative, in a way and by a time specified by the court, that the claim should not be included in the collective proceedings, and

(b) any person who—

(i) is not domiciled in the United Kingdom at a time specified by the court, and

(ii) does not, in a way and by a time so specified, notify the representative that the claim should be included in the collective proceedings.

(7) Subsection (5) applies (with appropriate modifications) for the purposes of interpreting the reference in subsection (3) to the determination of an issue on an “opt-in” basis.

(8) Sections 41, 42, 45 and 46 of the Civil Jurisdiction and Judgments Act 1982 apply for the purpose of determining whether a person is regarded as domiciled in the United Kingdom” for the purposes of subsection (6)(b)(i) above.”

Page 272, line 2, at end insert—

“In paragraph 3 (status), in sub-paragraph (2), omit “board members,”.”

Page 272, line 4, at end insert—

“Omit paragraph 5.”

Page 131, line 47, leave out subsection (3)

Page 132, line 7, leave out “subsections (2) and (3)” and insert “subsection (2)”

Page 132, line 12, leave out “or (3)”

Insert the following new Clause—

“Power to apply or disapply provision made by or under FSMA 2000

(1) The Treasury may by order provide—

(a) for any relevant provision that would not otherwise apply in relation to transferred functions to apply in relation to those functions with such modifications as may be specified;

(b) for any relevant provision that would otherwise apply in relation to transferred functions not to apply in relation to them or to apply with such modifications as may be specified.

(2) “Relevant provision” means a provision of, or made under, FSMA 2000.

(3) “Transferred function” means a function that has been or is being transferred by an order under section 47; and section 48(4) applies for the purpose of this subsection.”

Page 139, line 24, at end insert—

“( ) The memorandum must make provision for the UK authorities to consult with the financial services industry and, where appropriate, consumers on initiatives brought forward by the European Supervisory Authorities, the EU institutions and other international organisations.”

Page 140, line 38, leave out “may” and insert “must”

Page 141, line 3, at end insert—

“( ) The person appointed by the Treasury to hold the inquiry under this section must be suitably qualified and experienced to hold such an inquiry.”

Page 141, line 29, at end insert—

“( ) The power conferred by this section is not exercisable in relation to information or documents in respect of which a claim to legal professional privilege (in Scotland to confidentiality of communications) could be maintained in legal proceedings.”

Page 145, line 7, leave out “may” and insert “must”

Page 145, line 20, at end insert—

“( ) In carrying out an investigation, the regulator must have regard to its regulatory principles and act proportionately, reasonably and fairly.”

Page 145, line 30, at end insert “or becomes aware that the investigation does not meet the principles by which the regulator must abide”

Page 148, line 15, at end insert—

“( ) The investigator must be suitably qualified and experienced to conduct such investigations.”

Page 285, line 11, at end insert—

1 This Part of this Schedule applies to a complaint under the compulsory jurisdiction, the consumer credit jurisdiction or the voluntary jurisdiction in respect of which the complainant has entered into an agreement with a complainant representative.

2 A “complainant representative” is a person who has entered into an agreement with a complainant with respect to a complaint pursuant to which any fee has been, will be or may be paid by the complainant.

3 The scheme operator must make rules, to be known as “complainant representative rules”, which are to set out requirements applicable to complainant representatives and to complaints falling within paragraph 1.

4 Complainant representative rules may, among other things—

(a) require that a complainant representative disclose to the scheme operator the agreement referred to in paragraph 2 when a complaint within paragraph 1 is made;

(b) require a complainant representative to take reasonable steps to obtain from the complainant, and as appropriate to supply to the ombudsman, such information as an ombudsman might reasonably require to determine a complaint;

(c) provide for the consequences if a complainant representative does not comply with complainant representative rules or other applicable legal or regulatory requirements, including—

(i) requiring such complainant representative to pay to the scheme operator, in respect of complaints for which the complainant representative does not comply with such rules or requirements, such fees as may be specified in the complainant representative rules; and

(ii) requiring or enabling the ombudsman not to consider any complaint or to consider a complaint only if conditions specified by the ombudsman have been satisfied;

(d) enable the ombudsman to dismiss a complaint without consideration of its merits where the complainant representative has not cooperated with reasonable requests made by the respondent, including not providing adequate information as to the true nature of the complaint.

5 Complainant representative rules shall not require the disclosure to the ombudsman scheme of any material which is legally privileged.

6 If the scheme operator proposes to make any complainant representative rules it must publish a draft of the proposed rules in the way appearing to it to be best calculated to bring them to the attention of persons appearing as likely to be affected.

7 The draft must be accompanied by a statement that representations about the proposals may be made to the scheme operator within a time specified in the statement.

8 Before making the proposed complainant representative rules, the scheme operator must have regard to any representations made to it under paragraph 7.

9 The consent of the Authority is required before any complainant representative rules may be made.”

Page 162, line 20, at end insert—

“(ga) enable the Department of Enterprise, Trade and Investment in Northern Ireland to institute proceedings in Northern Ireland for a relevant offence;”

Page 162, line 24, after “(2)(g)” insert “and (ga)”

Page 162, line 30, at end insert—

“(3A) The Treasury may make provision by virtue of subsection (2)(ga) only with the consent of the Department of Enterprise, Trade and Investment in Northern Ireland.”

Insert the following new Clause—

“Suspension of licences under Part 3 of Consumer Credit Act 1974

(1) The Consumer Credit Act 1974 is amended as follows.

(2) In section 32 (suspension or revocation)—

(a) in subsection (1), omit “or suspended”,

(b) in subsection (2)—

(i) in paragraph (a), omit “, as the case may be,” and “, or suspend it until a specified date or indefinitely,”, and

(ii) in paragraph (b), omit “or suspension” and “or suspend”,

(c) in subsection (3)—

(i) in paragraph (a), omit “, as the case may be,” and “, or suspend it until a specified date or indefinitely,”, and

(ii) in paragraph (b), omit “or suspension”,

(d) in subsection (4)—

(i) in paragraph (a), omit “, as the case may be,” and “, or suspend it until a specified date or indefinitely,”, and

(ii) in paragraph (b), omit “or suspension”,

(e) in subsections (6) and (7), omit “or suspension”,

(f) omit subsection (8),

(g) in subsection (9), omit “or to suspend”, and

(h) for the title, omit “Suspension and”.

(3) After section 32 insert—

“32A Power to suspend licence

(1) If during the currency of a licence it appears to the OFT to be urgently necessary for the protection of consumers that the licence should cease to have effect immediately or on a specified date, the OFT is to proceed as follows.

(2) In the case of a standard licence the OFT must, by notice—

(a) inform the licensee that the OFT is suspending the licence from the date of the notice or from a later date specified in the notice,

(b) state the OFT’s reasons for the suspension,

(c) state either—

(i) that the suspension is to end on a specified date, which must be no later than the last day of the 12 months beginning with the day on which the suspension takes effect, or

(ii) that the duration of the suspension is to be as provided by section 32B,

(d) specify any provision to be made under section 34A, and

(e) invite the licensee to submit to the OFT in accordance with section 34ZA representations—

(i) as to the suspension, and

(ii) about the provision (if any) that is or should be made under section 34A.

(3) In the case of a group licence the OFT must—

(a) give general notice that the OFT is suspending the licence from the date of the notice or from a later date specified in the notice,

(b) state in the notice the OFT’s reasons for the suspension,

(c) state in the notice either—

(i) that the suspension is to end on a specified date, which must be no later than the last day of the 12 months beginning with the day on which the suspension takes effect, or

(ii) that the duration of the suspension is to be as provided by section 32B,

(d) specify in the notice any provision to be made under section 34A, and

(e) in the notice invite any licensee to submit to the OFT in accordance with section 34ZA representations as to the suspension.

(4) In the case of a group licence issued on application the OFT must also—

(a) inform the original applicant of the matters specified under subsection (3)(a) to (d) in the general notice, and

(b) invite the original applicant to submit to the OFT in accordance with section 34ZA representations as to the suspension.

(5) Except for the purposes of sections 29 to 32 and section 33A, a licensee under a suspended licence is to be treated, in respect of the period of suspension, as if the licence had not been issued.

(6) The suspension may, if the OFT thinks fit, be ended by notice given by it to the licensee or, in the case of a group licence, by general notice.

(7) In this section “consumers”, in relation to a licence, means individuals who have been or may be affected by the carrying on of the business to which the licence relates, other than individuals who are themselves licensees.

32B Duration of suspension

(1) This section applies where a notice under section 32A provides for the duration of a suspension under that section to be as provided by this section.

(2) The suspension ends at the end of the period of 12 months beginning with the day on which it takes effect, but this is subject to—

(a) subsections (3) and (4) (where those subsections give a later time), and

(b) the powers of the OFT under section 32A(6) and section 33.

(3) Subsection (4) applies where—

(a) the OFT gives notice under section 32 that it is minded to revoke the licence, and

(b) it gives that notice—

(i) on or before giving the notice under section 32A, or

(ii) after giving that notice but before the end of the period of 12 months mentioned in subsection (2).

(4) The period of suspension is to continue until—

(a) the time of any determination by the OFT not to revoke the licence in pursuance of the notice under section 32, or

(b) where the OFT determines to revoke the licence in pursuance of the notice, the end of the appeal period.”

(4) In section 33 (application to end suspension), for subsection (1) substitute—

“(1) On an application made by a licensee the OFT may, if it thinks fit, by notice to the licensee end the suspension of a licence under section 32A, whether the suspension was for a fixed period or for a period determined in accordance with section 32B.”

(5) In section 33A (power of OFT to impose requirements on licensees) after subsection (6) insert—

“(6A) A requirement imposed under this section during a period of suspension cannot take effect before the end of the suspension.”

(6) After section 34 insert—

“34ZA Representations to OFT: suspension under section 32A

(1) Where this section applies to an invitation by the OFT to any person (“P”) to submit representations, the OFT must invite P, within 21 days after the notice containing the invitation is given to P or published, or such longer period as the OFT may allow—

(a) to submit P’s representations in writing to the OFT, and

(b) to give notice to the OFT, if P thinks fit, that P wishes to make representations orally,

and where notice is given under paragraph (b) the OFT must arrange for the oral representations to be heard.

(2) The OFT must reconsider its determination under section 32A and determine whether to confirm it (with or without variation) or revoke it and in doing so must take into account any representations submitted or made under this section.

(3) The OFT must give notice of its determination under this section to the persons who were required to be invited to submit representations about the original determination under section 32A or, where the invitation to submit representations was required to be given by general notice, must give general notice of the confirmation or revocation.”

(7) In section 34A (winding-up of standard licensee’s business), in subsection (2)—

(a) in paragraph (c), omit “suspend or”, and

(b) after paragraph (c) insert—

“(d) a determination to suspend such a licence under section 32A (including a determination made under section 34ZA on reconsidering a previous determination under section 32A);”.

(8) In section 41 (appeals) after subsection (1) insert—

“(1ZA) References in the table to a determination as to the suspension of a standard licence or group licence are to be read as references to a determination under section 34ZA to confirm a determination to suspend a standard licence or group licence.”

(9) Nothing in this section affects the powers conferred by section 22 of FSMA 2000 or section 91 of this Act.”

Insert the following new Clause—

Transferability of retail banking current accounts

(1) If an individual customer gives notice in writing to a bank at which he holds a personal current account (Bank A) that he wishes to transfer the balance standing to the credit of that account (Account A) to a personal current account established or to be established at another bank (Bank B) and thereafter to close Account A—

(a) Bank A shall without charge within a period of 10 working days—

(i) transfer to Bank B the balance of Account A less any charges owing in respect of that account;

(ii) notify Bank B of all standing orders, direct debits and other orders for periodical payments that the customer has created in relation to Account A;

(iii) pass to Bank B a copy of all material that it holds in relation to the customer as a result of having performed checks on his identity, the source of his funds or otherwise with regard to its regulatory obligations to counter financial crime;

(b) Bank B shall without charge—

(i) accept the funds transferred under paragraph (a)(i) and credit them without deduction to the account that the customer has applied to open (Account B);

(ii) accept the details that Bank A provides under paragraph (a)(ii) and apply them to Account B so that they operate in accordance with the customer’s instructions from the date that Account B is credited under sub-paragraph (i);

(iii) save where it has grounds for suspicion, accept the material provided under paragraph (a)(iii) in lieu of performing fresh checks on the identity of the customer, the source of his funds or otherwise in relation to its regulatory obligations to counter financial crime.

(2) In this section a bank shall mean any person authorised under this Act and holding a permission for deposit taking granted by the PRA.”

Insert the following new Clause—

“Amendment of Tribunals, Courts and Enforcement Act 2007

In section 124 of the Tribunals, Courts and Enforcement Act 2007 (charges by operator of approved scheme), for subsections (1) and (2) substitute—

“(1) The operator of an approved scheme may recover its charges from debtors or affected creditors (or both).

(2) In this section—

“charges” means the costs which the operator incurs, taking one year with another, in connection with the approved scheme along with any charges made by the operator, so far as those costs and charges are reasonable;

“debtors” means—

(a) debtors who make requests for debt repayment plans to be arranged in accordance with the approved scheme, and

(b) debtors for whom debt repayment plans are arranged in accordance with the approved scheme.””

Page 286, line 16, at end insert—

“In section 177 (offences), in subsection (2), after “director or” insert “other”.”

Page 289, line 13, at end insert—

“In paragraph 8 of Schedule 6 (additional threshold conditions), in sub-paragraph (2)(b), for “the Authority” substitute “such of the FCA or the PRA as may be specified,”.”

Page 302, line 5, at end insert—

(1) Section 29 of the Trustee Act 2000 (remuneration of certain trustees) is amended as follows.

(2) In subsection (3)—

(a) for “an authorised institution under the Banking Act 1987” substitute “a deposit taker”, and

(b) for “institution’s” substitute “deposit taker’s”.

(3) After that subsection insert—

“(3A) In subsection (3), “deposit taker” means—

(a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits, or

(b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits.

(3B) A reference in subsection (3A) to a person or firm with permission to accept deposits does not include a person or firm with permission to do so only for the purposes of, or in the course of, carrying on another regulated activity in accordance with that permission.

(3C) Subsections (3A) and (3B) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000,

(b) any relevant order under that section, and

(c) Schedule 2 to that Act.”.”

Page 310, line 32, at end insert—

(1) Part 4 of Schedule 19 to the Finance Act 2011 (the bank levy) is amended as follows.

(2) In paragraph 37(2), in both places, for “section 213(2)(b)” substitute “section 213(3)(b)”.

(3) In paragraph 38(3)(a), for “section 139(1)” substitute “section 137B(1)”.

In Part 1 of Schedule 1 to the Terrorism Prevention and Investigation Measures Act 2011 (measures), in paragraph 5(4), for “Part 4” substitute “Part 4A”.”

Page 166, line 4, at end insert—

“where the phrase “court of directors” appears it is to be understood as “Supervisory Board”;”

Page 167, line 41, leave out “Section 94 comes” and insert “Sections 94 and (Suspension of licences under Part 3 of Consumer Credit Act 1974) come”