Financial Services Bill

AMENDMENTS
TO BE MOVED
IN COMMITTEE
OF THE WHOLE HOUSE
[Supplementary to the Revised Marshalled List]

Clause 3

LORD SASSOON

 

Page 3, line 35, leave out from first “to” to end of line 36 and insert—

“(a) contributing to the achievement by the Bank of the Financial Stability Objective, and

(b) subject to that, supporting the economic policy of Her Majesty’s Government, including its objectives for growth and employment.”

 

Page 3, line 37, leave out “of that objective” and insert “by the Bank of the Financial Stability Objective”

 

Page 4, line 4, leave out “(1)” and insert “(1)(a)”

 

Page 4, line 21, at end insert—

“9CA Specification of matters relevant to economic policy

(1) The Treasury may by notice in writing to the Financial Policy Committee specify for the purposes of section 9C(1)(b) what the economic policy of Her Majesty’s Government is to be taken to be.

(2) The Treasury must specify under subsection (1) the matter mentioned there—

(a) before the end of the period of 30 days beginning with the day on which section 9C comes into force, and

(b) at least once in every calendar year following that in which the first notice under that subsection is given.

(3) Where the Treasury give notice under this section they must—

(a) publish the notice in such manner as they think fit, and

(b) lay a copy of it before Parliament.”

 

Page 4, line 29, at end insert—

“( ) the responsibility of the Committee in relation to support for the economic policy of Her Majesty’s Government, including its objectives for growth and employment;”

 

Page 5, line 13, leave out from “while” to “seek” in line 14 and insert “complying with section 9C(1),”

 

Page 10, line 18, at end insert—

“Explanation

9QA Duty to prepare explanation

(1) In connection with the exercise of any of the specified powers, the Financial Policy Committee must prepare an explanation of—

(a) the reasons for the Committee’s decision to exercise the power, in the way in which it is being exercised, and

(b) the Committee’s reasons for believing that the exercise of the power, in the way in which it is being exercised, is compatible with the duties of the Committee under the following provisions—

(i) section 9C(1) (as read with section 9C(4)), and

(ii) section 9E.

(2) The specified powers are—

(a) the power to give a direction under section 9G;

(b) the power to make recommendations under section 9N, so far as relating to the exercise of the Bank’s functions in relation to payment systems, settlement systems and clearing houses;

(c) the power to make recommendations under section 9O, so far as relating to the exercise by the Treasury of their power to make orders under any of the provisions mentioned in subsection (2) of that section;

(d) the power to make recommendations under section 9P.

(3) The explanation required by subsection (1) in relation to the duty in section 9E(3)(a) must include an estimate of the costs and an estimate of the benefits that would arise from compliance with the direction or recommendation in question, unless in the opinion of the Committee it is not reasonably practicable to include such an estimate.”

 

Page 10, line 18, at end insert—

“Review

9QB Duty to review directions and recommendations

(1) The Financial Policy Committee must—

(a) before the end of each review period, review each direction given by it under section 9G, other than a direction revoked before the end of the review period, and

(b) prepare a summary of its conclusions.

(2) A review period is—

(a) in relation to the first review, the period of 12 months beginning with the day on which the direction was given, and

(b) in relation to subsequent reviews, the period of 12 months beginning with the day on which the previous review was completed.

(3) The Financial Policy Committee must maintain arrangements for the review at regular intervals of any recommendations that it has made under any of sections 9N to 9Q and are of continuing relevance.”

 

Page 12, line 9, leave out “Committee’s objectives” and insert “objectives set out in section 9C(1)(a) and (b)”

 

Page 12, line 9, at end insert—

“(4B) If during the reporting period the Committee has completed the review of a direction or recommendation, the financial stability report must include a summary of the review.”

 

Page 12, line 9, at end insert—

“(4A) If during the reporting period the Committee has made any decision in relation to which section 9QA requires the preparation of an explanation, the financial stability report must include the required explanation.”

 

Page 12, line 14, leave out “subsection (3) or (4)” and insert “subsections (3) to (4B)”

Schedule 2

LORD SASSOON

 

Page 175, line 13, after “Bank’s” insert “functions under the Financial Services and Markets Act 2000, of its other”

Clause 5

LORD SASSOON

 

Page 15, line 25, leave out “or”

 

Page 15, line 26, 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 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 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 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.”

Schedule 3

LORD SASSOON

 

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

 

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

 

Page 186, line 25, at end insert—

“Budget

17A (4) The PRA must, for each of its financial years, adopt an annual budget which has been approved by the Bank.

(5) 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.

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

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

 

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”

Schedule 8

LORD SASSOON

 

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

Schedule 10

LORD SASSOON

 

Page 239, line 33, at end insert—

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

 

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 SASSOON

 

Page 243, line 17, at end insert—

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

 

Page 244, line 22, at end insert—

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

Schedule 12

LORD SASSOON

 

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”

Schedule 15

LORD SASSOON

 

Page 272, line 2, at end insert—

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

Schedule 18

LORD SASSOON

 

Page 286, line 16, at end insert—

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

Prepared 27th June 2012