Financial Services Bill
TO BE MOVED
OF THE WHOLE HOUSE
[Supplementary to the Sixth Marshalled List]
Page 38, line 32, at end insert—
“(2A) After paragraph 9A insert—“Part 1B The activity of establishing, operating or winding up a crowdfunding scheme
“Crowdfunding Scheme” has the meaning given in section 417.””
Page 53, line 33, at end insert—
“including the instrumentalities of the European Union such as the European Supervisory Authorities under Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 when exercising their powers as a regulator”
Page 79, leave out lines 1 to 29 and insert—
“137B FCA general rules: clients’ money, right to rescind etc.
(1) Rules relating to the handling of money received or held by an authorised person in specified circumstances (“clients’ money”) may—
(a) make provision which results in that clients’ money being held on trust in accordance with the rules;
(b) treat two or more accounts as a single account for specified purposes (which may include the distribution of money held in the accounts);
(c) authorise the retention by the authorised person of interest accruing on the clients’ money; and
(d) make provision as to the distribution of such interest which is not to be retained by the authorised person.
(2) An institution with which an account is kept in pursuance of rules relating to the handling of clients’ money does not incur any liability as constructive trustee if money is wrongfully paid from the account, unless the institution permits the payment—
(a) with knowledge that it is wrongful; or
(b) having deliberately failed to make enquiries in circumstances in which a reasonable and honest person would have done so.
(3) In the application of subsection (1) to Scotland, the reference to money being held on trust is to be read as a reference to its being held as agent for the person who is entitled to call for it to be paid over to him or to be paid on his direction or to have it otherwise credited to him.
(4) Rules may—
(a) confer rights on persons to rescind agreements with, or withdraw offers to, authorised persons within a specified period; and
(b) make provision, in respect of authorised persons and persons exercising those rights, for the restitution of property and the making or recovery of payments where those rights are exercised.
(5) “Rules” means general rules of the FCA.
(6) “Specified” means specified in the rules.”
Page 81, line 19, at end insert—
“137DA FCA general rules: social enterprise rules
(1) The power of the FCA to make general rules includes power to make such rules (“social enterprise rules”) allowing authorised persons to establish social enterprises deemed to be necessary or expedient for the purpose of advancing the consumer protection objective or the competition objective.
(2) Social enterprises means arrangements which include the carrying on of a regulated activity and which enhance or promote—
(a) investment in a community taking into account the economic, social and environmental well-being of a defined group or community;
(b) lending or the provision of credit to small and medium size enterprises in a defined group or community;
(c) peer to peer lending;
(d) any other activities which have as their objective investing in or creating enterprises of social value.”
[In substitution for Amendment 173AB]
Page 88, leave out lines 14 and 15