Financial Services Bill

Page 5, leave out line 38

Page 6, line 16, at end insert—

“( ) An order under subsection (2) may only exclude or modify procedural requirements under FSMA 2000 where the Committee believe that this is necessary due to the urgency of the situation, and where this occurs the order must include an explanation of the reasons for excluding or modifying the procedural requirements of FSMA 2000.”

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Page 15, leave out line 31

Page 15, leave out lines 33 and 34

Page 15, leave out lines 37 to 44

Page 17, line 8, at end insert—

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

Page 17, line 35, at end insert—

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

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 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 26, after “promoting” insert “competition among and”

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

Page 27, line 13, leave out subsection (2) 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 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 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 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 176, line 2, at end insert “following consideration by the Treasury Select Committee of the House of Commons”

Page 178, line 27, at end insert—

“(ia) an analysis of the costs and benefits arising from regulation for which the PRA 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 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 186, line 38, at end insert—

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

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 61, line 12, leave out from beginning to end of line 8 on page 62 and insert “for subsections (3) to (7) substitute—

“(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, leave out line 40

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 77, leave out lines 36 to 45

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; and

(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 from “appropriate” to end of line 24

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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 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.

( ) 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.”

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Page 234, leave out line 42

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 “not” 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 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 and/or provide any guidance to the ombudsman with respect to any applicable regulatory matters arising from or in relation to a complaint or group of complaints.”

Page 246, line 4, at end insert—

“(za) in sub-paragraph (1)—

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

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

(zb) in sub-paragraph (2)—

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

(ii) in sub-sub-paragraph (a) after “able” 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 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 139, line 24, at end insert—

“(7) 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.”