Financial Services Bill

SIXTH
MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
IN COMMITTEE
OF THE WHOLE HOUSE

The amendments have been marshalled in accordance with the Instruction of 20th June 2012, as follows—

Clauses 6 to 10
Schedule 4
Clauses 11 to 13
Schedule 5
Clauses 14 to 20
Schedule 6
Clauses 21 to 27
Schedule 7
Clauses 28 to 32
Schedule 8
Clauses 33 and 34
Schedule 9
Clause 35
Schedule 10
Clause 36
Schedule 11
Clauses 37 and 38
Schedule 12
Clause 39
Schedule 13
Clauses 40 and 41
Schedule 14
Clause 42
Schedule 15
Clause 43
Schedule 16
Clauses 44 to 90
Schedule 17
Clauses 91 to 95
Schedules 18 and 19
Clauses 96 to 100
Schedules 20 and 21
Clauses 101 to 104

[Amendments marked * are new or have been altered]

Clause 6

LORD FLIGHT

BARONESS HAYTER OF KENTISH TOWN

LORD STEVENSON OF BALMACARA

147K

Page 39, line 9, at end insert—

“Claims management companies

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.”

BARONESS HAYTER OF KENTISH TOWN

147L*

Page 39, line 9, at end insert—

“(4A) After paragraph 23B insert—

“Contracts for debt management services

23C (1) Rights under a contract for debt adjustment or debt management services.

(2) Debt-adjusting is, in relation to debts due under regulated credit agreements or contracts for the hire of goods, negotiating with the creditor or owner, on behalf of the debtor or hirer, terms for the discharge of a debt, or taking over, in return for payments by the debtor or hirer, his obligation to discharge a debt, or any similar activity concerned with the liquidation of a debt.

(3) Debt management is the giving of advice to debtors or hirers about the liquidation of debts including those due under regulated credit agreements or contracts for the hire of goods.””

147M*

Page 39, line 9, at end insert—

“(4A) After paragraph 23B insert—

“Claims management companies

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.””

Clause 7

LORD MCFALL OF ALCLUITH

148

Page 40, line 8, at end insert—

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

Clause 8

LORD MCFALL OF ALCLUITH

149

Page 41, line 20, at end insert—

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

Clause 9

LORD PESTON

LORD BARNETT

149A

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.”

LORD DAVIES OF OLDHAM

149AA*

Page 42, line 28, at end insert—

“( ) The regulators must co-ordinate their procedures for, and provide clear and detailed guidance on, the processes for applying for, varying and cancelling permission that are applicable to authorised persons regulated by both PRA and the FCA.”

149AB*

Page 43, line 10, at end insert—

“( ) An order under subsection (1) is not to be made unless a draft of the order has been laid before, and approved by, a resolution of both Houses of Parliament.”

149AC*

Page 43, line 32, leave out subsection (3) and insert—

“( ) In considering how much weight (if any) to attach to the opinion, the UK regulator must have regard to—

(a) the nature and scope of the supervision exercised in relation to the non-EEA firm by the overseas regulator; and

(b) decisions previously made by EU regulatory authorities regarding the overseas regulator.”

LORD FLIGHT

149B

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)”

149C

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)”

149D

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)”

149E

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)”

149F

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)”

149G

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)”

LORD SASSOON

149H

Page 48, line 8, at end insert—

“(6A) Without prejudice to the generality of subsections (1) and (2), the FCA may, in relation to an authorised person who has permission to carry on the regulated activity specified in article 24A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (which relates to bids in emission allowance auctions), exercise its power under this section to vary the Part 4A permission of the person concerned by removing that activity from those to which the permission relates if it appears to the FCA that the person has seriously and systematically infringed the provisions of paragraph 2 or 3 of Article 59 of the emission allowance auctioning regulation.”

LORD MCFALL OF ALCLUITH

150

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

LORD FLIGHT

150A

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)”

LORD MCFALL OF ALCLUITH

151

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

152

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

LORD FLIGHT

152A

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)”

LORD SASSOON

153

Page 58, line 40, at end insert—

“Notification

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).”

Clause 10

LORD DAVIES OF OLDHAM

153A*

Page 59, line 18, at end insert—

“( ) In seeking to ensure an appropriate degree of protection for consumers, the PRA and FCA shall—

(a) require banks to provide clear and prominent warnings to consumers where deposits are not covered by the Financial Services Compensation Scheme; and

(b) make and maintain effective arrangements to consult consumers on the prominence and method of such warnings.”

Schedule 4

LORD SASSOON

154

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”.”

155

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

156

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

157

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

158

Page 199, line 13, at end insert—

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

159

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”.”

160

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

161

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

162

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

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

163

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

164

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

Clause 11

LORD MCFALL OF ALCLUITH

165

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

LORD DAVIES OF OLDHAM

165ZA*

Page 61, line 7, at end insert—

“( ) In the event of a prohibition order being made, the FCA and PRA shall—

(a) publish an explanatory statement regarding the decision; and

(b) include the individual on an updated list of those subject to prohibition orders to be presented on HM Treasury’s website.”

Clause 12

LORD FLIGHT

165A

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.””

Clause 14

LORD FLIGHT

165B

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

“( ) In section 72—”

165C

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

165D

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

LORD STEVENSON OF BALMACARA

165DA*

Page 64, line 8, at end insert—

“(3A) In section 73(1), at the end insert—

“(g) to foster ethical corporate behaviour, including respect for internationally-recognised human rights”.”

LORD FLIGHT

165E

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

LORD SASSOON

166

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”.”

167

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

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

LORD FLIGHT

167A

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

167B

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

167C

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

167D

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

After Clause 14

LORD STEVENSON OF BALMACARA

167E*

Insert the following new Clause—

“Listing rules: energy companies to conduct human rights due diligence

(1) The FCA in its capacity as the UK Listing Authority shall require all energy, including oil, gas and mining, companies, listed on the stock exchange to conduct human rights due diligence in order to identify, prevent and mitigate adverse impacts of their operations.

(2) All companies covered by this regulation should submit annual human rights impact reports to the Exchange which should be publicly available.”

Clause 16

LORD MCFALL OF ALCLUITH

168

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

169

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

170

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

BARONESS HAYTER OF KENTISH TOWN

170ZA*

Page 68, line 40, at end insert—

“( ) The Treasury must lay before Parliament a copy of any statement published under this section.”

Clause 17

LORD PESTON

LORD BARNETT

170A

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

LORD MCFALL OF ALCLUITH

171

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

172

Page 72, line 14, at end insert—

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

173

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

Clause 21

LORD FLIGHT

173ZA

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

Clause 22

LORD PESTON

LORD BARNETT

173A

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

LORD SASSOON

173ZAA

Page 78, line 37, after “directives” insert “or the emission allowance auctioning regulation”

LORD FLIGHT

173AA

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.”

LORD SASSOON

173AAA

Page 81, line 44, after “directives” insert “or the emission allowance auctioning regulation”

LORD DAVIES OF OLDHAM

173AAB*

Page 82, line 10, at end insert—

“( ) provide for a requirement that an employee representative should be a member of the remuneration committee of a relevant body corporate; and

( ) provide for a requirement that the remuneration consultants advising on remuneration policy shall be appointed by the shareholders of a relevant body corporate.”

LORD FLIGHT

173AAC*

Page 85, line 44, at end insert—

“137M Limitation

Neither regulator may make rules that require any person to review, take action with regard to, pay compensation for or otherwise effect redress in relation to any transaction, sale, provision of advice, exercise of discretion or other act or omission where an action based on that event would fall outside the time limits prescribed under the Limitation Act 1980.”

173AB

Page 88, leave out lines 9 to 11

173AC

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

173AD

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

173AE

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

LORD DAVIES OF OLDHAM

173AEA*

Page 89, line 27, at end insert—

“137QA Advisory fees in respect of mergers and acquisitions

Either regulator may make rules (“fee structures in respect of mergers and acquisitions”) about the advisory or consultancy fee arrangements where an authorised person contracts a third party to give advice on the possibility of a merger or acquisition of control of any other body corporate.”

LORD FLIGHT

173AF

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

173AG

Page 98, line 11, leave out “temporary”

173AH

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.”

LORD PESTON

LORD BARNETT

173B

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

173C

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

LORD FLIGHT

173D

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.”

LORD DAVIES OF OLDHAM

173E*

Page 102, line 10, at end insert—

“( ) Before the end of 2013, a regulator may, in consultation with HM Treasury, ask the Competition Commission to provide a report giving section 140B advice with reference to the Independent Commission on Banking recommendations on competition.”

LORD MCFALL OF ALCLUITH

174

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

Clause 25

LORD SASSOON

174ZA

Page 107, line 27, leave out “any part of”

174ZB

Page 108, leave out line 25 and insert “which—

(a) is incorporated in the United Kingdom, or

(b) has a place of business in the United Kingdom.”

LORD WHITTY

LORD TUNNICLIFFE

174A

Page 108, leave out lines 29 and 30

LORD TUNNICLIFFE

174AA*

Page 108, leave out lines 34 to 39

LORD WHITTY

174B

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.”

LORD MCFALL OF ALCLUITH

175

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

176

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

Clause 30

LORD MCFALL OF ALCLUITH

177

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

178

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

179

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

180

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

LORD HODGSON OF ASTLEY ABBOTTS

181

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

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

Schedule 8

LORD SASSOON

182

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

182A

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

183

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

Schedule 9

LORD SASSOON

183ZA

Page 227, line 43, leave out ““UCITS directive”” and insert ““auctioning regulation””

183ZB

Page 229, line 14, leave out ““UCITS directive”” and insert ““auctioning regulation””

183ZC

Page 230, line 12, leave out ““UCITS directive”” and insert ““auctioning regulation””

183ZD

Page 231, line 16, leave out ““UCITS directive”” and insert ““auctioning regulation””

LORD FLIGHT

183A

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

LORD SASSOON

184

Page 233, line 18, leave out “and”

185

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.”.”

LORD FLIGHT

185A

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

186

Page 233, leave out line 39

LORD SASSOON

187

Page 234, line 30, at end insert—

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

LORD FLIGHT

187A

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

Schedule 10

LORD SASSOON

187B

Page 239, line 33, at end insert—

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

LORD TEVERSON

BARONESS KRAMER

187C

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.”

LORD SASSOON

187D

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,”.”

Schedule 11

LORD FLIGHT

187E

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.””

187F

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

187G

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

187H

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

187J

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.”

187K

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.”

187L

Page 243, line 17, at end insert—

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

LORD SASSOON

187M

Page 243, line 17, at end insert—

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

LORD FLIGHT

187N

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”

187P

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.”

187Q

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.”

LORD SASSOON

187R

Page 244, line 22, at end insert—

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

LORD FLIGHT

187RA*

Page 245, line 39, at end insert—

“After paragraph 11 insert—

“Limitation

11A Rules made by the FCA must provide that no complaint is to be entertained where an action based on that complaint would fall outside the time limits prescribed under the Limitation Act 1980.””

187S

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).”

187T

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.””

LORD KENNEDY OF SOUTHWARK

187TA

Page 246, line 28, at end insert—

“29 After paragraph 22 insert—

“Part 5 Complainant representatives Introduction

23 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.

24 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.

Complainant representative rules

25 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.

26 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.

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

Consultation

28 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.

29 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.

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

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

Clause 37

LORD SASSOON

187TB

Page 120, line 20, at end insert—

“(ii) in paragraph (b), for “section 315” substitute “provision made by or under this Act”, and”

187TC

Page 121, line 27, at end insert—

“(ii) in paragraph (c), for “section 315” substitute “provision made by or under this Act”.”

187TD

Page 121, line 38, at end insert—

“( ) In section 317 (the core provisions), in subsection (1), for “X” substitute “9A”.”

Schedule 12

LORD SASSOON

187U

Page 250, line 35, at end insert—

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

187V

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

187VA

Page 254, line 20, leave out sub-paragraph (4)

187W

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

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

187X

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

Clause 39

BARONESS WHEATCROFT

LORD LAWSON OF BLABY

BARONESS KRAMER

188

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.””

Clause 40

LORD MCFALL OF ALCLUITH

189

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

LORD FLIGHT

189A

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

189B

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

LORD WHITTY

189BA

Page 128, line 5, at end insert—

“Collective proceedings

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.”

189BB

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.”

Schedule 15

LORD SASSOON

189C

Page 272, line 2, at end insert—

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

BARONESS NOAKES

190

Page 272, line 4, at end insert—

“Omit paragraph 5.”

Clause 48

LORD SASSOON

190ZA

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

190ZB

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

190ZC

Page 132, line 12, leave out “or (3)”

After Clause 48

LORD SASSOON

190ZD

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.”

Clause 57

BARONESS NOAKES

LORD MCFALL OF ALCLUITH

190ZE

Page 136, line 4, leave out from “to” to “the” in line 5 and insert “any of the Bank’s powers or functions, including but not limited to”

Clause 62

LORD FLIGHT

190A

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.”

Clause 64

BARONESS NOAKES

190B

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

Clause 65

LORD MCFALL OF ALCLUITH

191

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.”

Clause 66

LORD MCFALL OF ALCLUITH

192

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.”

Clause 72

BARONESS NOAKES

192ZA

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

Clause 74

LORD HODGSON OF ASTLEY ABBOTTS

192A

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.”

192B

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

Clause 79

LORD MCFALL OF ALCLUITH

193

Page 148, line 15, at end insert—

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

193A

[Re-tabled as Amendment 187TA]

Clause 80

LORD SASSOON

193B

Page 149, line 13, leave out “, 318 or 328” and insert “or 318”

Clause 84

LORD SASSOON

193C

Page 154, line 24, at end insert—

“( ) In section 83 (supplemental), in subsection (2)(d)—

(a) at the end of sub-paragraph (iii) insert “and”, and

(b) for sub-paragraphs (iv) and (v) substitute—

“(iv) is not subject to the restriction in section 29(3) that the securities issued by the bank were transferred under the original order (as defined in section 29(1)).””

Clause 86

LORD SASSOON

193D

Page 156, line 1, at end insert—

“( ) In section 1(6) of that Act (table describing provisions of Part 1), in the entry relating to sections 76 to 81, for “81” substitute “81A”.”

Clause 91

LORD SASSOON

194

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;”

195

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

196

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.”

After Clause 91

LORD SASSOON

196A

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.”

After Clause 94

LORD FLIGHT

197

Insert the following new Clause—

“Retail account transfer

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.”

LORD BORRIE

197ZA

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.””

Schedule 18

LORD SASSOON

197A

Page 286, line 16, at end insert—

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

198

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,”.”

198A

Page 291, line 32, at end insert—

“Lloyd’s Act 1982 (c. xiv)

In section 7 of the Lloyd’s Act 1982 (the Disciplinary Committee and the Appeal Tribunal), in subsection (1A)(c), for “Financial Services Authority” substitute “Prudential Regulation Authority or the Financial Conduct Authority”.”

199

Page 302, line 5, at end insert—

“Trustee Act 2000 (c. 29)

(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.”.”

200

Page 310, line 32, at end insert—

“Finance Act 2011 (c. 11)

(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)”.

Terrorism Prevention and Investigation Measures Act 2011 (c. 23)

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”.”

200A

Page 311, line 16, at end insert—

“Charities and Trustee Investment (Scotland) Act 2005 (asp 10)

In section 106 of the Charities and Trustee Investment (Scotland) Act 2005 (general interpretation), in the definition of “relevant financial institution”, for “Part 4” substitute “Part 4A”.”

200B

Page 311, line 37, at end insert—

“Part 5 Amendment of Measure of the National Assembly for Wales Welsh Language (Wales) Measure 2011 (nawm 1)

In Schedule 6 to the Welsh Language (Wales) Measure 2011 (public bodies etc: standards)—

(a) in the Welsh text, omit the entry relating to “Awdurdod Gwasanaethau Ariannol (“The Financial Services Authority”)” and at the appropriate place among the entries headed “Cyffredinol” insert—

“Awdurdod Ymddygiad Ariannol (“Financial Conduct Authority”)
Safonau cyflenwi gwasanaethau Safonau llunio polisi Safonau gweithredu Safonau cadw cofnodion.”

(b) in the English text, omit the entry relating to “The Financial Services Authority (“Awdurdod Gwasanaethau Ariannol”)” and at the appropriate place among the entries headed “General” insert—

“Financial Conduct Authority (“Awdurdod Ymddygiad Ariannol”)
Record keeping standards Service delivery standards Policy making standards Operational standards.”

(c) in the Welsh text, at the appropriate place among the entries headed “Cyffredinol”, insert—

“Awdurdod Rheoleiddio Darbodus (“Prudential Regulation Authority”)
Safonau cyflenwi gwasanaethau Safonau llunio polisi Safonau gweithredu Safonau cadw cofnodion.”

(d) in the English text, at the appropriate place among the entries headed “General”, insert—

“Prudential Regulation Authority (“Awdurdod Rheoleiddio Darbodus”)
Record keeping standards Service delivery standards Policy making standards Operational standards.”.”

Clause 98

LORD EATWELL

BARONESS HAYTER OF KENTISH TOWN

201

Page 166, line 4, at end insert—

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

Clause 103

LORD SASSOON

202

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”

Prepared 5th October 2012