Enterprise and Regulatory Reform Bill

AMENDMENTS
TO BE MOVED
IN GRAND COMMITTEE

[Supplementary to the Sixth Marshalled List]

Clause 59

LORD MCKENZIE OF LUTON

LORD STEVENSON OF BALMACARA

 

Page 56, line 21, after “shared” insert “to a material extent”

 

Page 56, line 31, after “guidance” insert “after consulting with representatives of local government and such other persons as he considers appropriate”

Clause 60

LORD MCKENZIE OF LUTON

LORD STEVENSON OF BALMACARA

 

Page 57, line 11, at end insert—

“(3B) Where functions equivalent to relevant functions are carried out by other regulatory bodies, any inspection plans shall have regard to the way in which such other bodies exercise their functions.”

 

Page 57, line 26, at end insert—

“(7AA) Subsection (7A) does not apply where a local authority reasonably believes that exercising its function of inspection in relation to a regulated person in accordance with a plan that has been brought to its notice under subsection (6) is not appropriate in the circumstances.”

Clause 65

BARONESS WHITAKER

LORD JENKIN OF RODING

 

Page 61, line 8, at end insert—

“( ) in Schedule 1, paragraph 6;”

 

Page 61, line 9, at end insert—

“( ) This section shall not apply to acts done in relation to copies of artistic works—

(a) within four months after the entry into force of this section provided that—

(i) the copies of the work were manufactured in the EEA; or

(ii) the copies of the work were imported into the EEA before the commencement of this section;

(b) after four months but within eight months after the entry into force of this section provided that—

(i) the conditions set out in paragraph (4)(i) are fulfilled; and

(ii) there are extraordinary circumstances justifying the acts.

This provision is without prejudice to the other exceptions set out in Chapter III of Part I of the Copyright, Designs and Patents Act 1988.”

LORD CLEMENT-JONES

 

Page 61, line 9, at end insert—

“( ) This section applies where a design incorporating an artistic work or any part thereof has been made available to the public, in the United Kingdom or elsewhere.

( ) It is not an infringement of copyright in the artistic work to make and exploit articles the design of which produces on an informed user a different overall impression from the design of the article which has been made available to the public in accordance with this section.”

Clause 66

LORD JENKIN OF RODING

 

Page 61, line 31, at end insert—

“( ) A separate impact statement must be published with each such individual order.”

Clause 68

LORD CLEMENT-JONES

 

Page 63, line 7, leave out “may” and insert “must”

 

Page 63, leave out lines 8 to 11 and insert “provide that the power to provide licensing of orphan works extends so far as, but no further than, what is necessary in order to implement Directive 2012/28/EU on certain permitted uses of orphan works in the United Kingdom”

 

Page 63, leave out lines 12 to 25

 

Page 63, leave out lines 29 to 31 and insert “authorised to extend an existing copyright licence between a user and the licensing body so as to confer on the user the right of exploitation within the United Kingdom provided by the licence in respect of works in which copyright is not owned or controlled by the licensing body or a person on whose behalf the licensing body acts”

 

Lord Clement-Jones gives notice of his intention to oppose the Question that Clause 68 stand part of the Bill.

After Clause 73

LORD RAZZALL

BARONESS BRINTON

 

Insert the following new Clause—

“Fiduciaries: performance of investment functions

(1) In the performance of any investment functions a fiduciary must act in the way the fiduciary considers, in good faith, would be most likely to be for the benefit of the beneficiaries as a whole and to be fair as between the beneficiaries, including as between present and future beneficiaries and in doing so, the fiduciary may have regard (amongst other matters) to—

(a) the likely consequences of any investment activities in the long term,

(b) the impact of any investment activities on the financial system and the economy,

(c) social and environmental considerations, including—

(i) the implications of social and environmental factors for return on investments, and

(ii) the impact of any investment activities on communities and the environment,

(d) the implications of any investment activities for beneficiaries’ quality of life, and

(e) the views, including the ethical views, of beneficiaries.

(2) If a fiduciary considers that the general adoption by market participants of a particular standard of conduct has been or would be conducive to the benefit of the beneficaries, the fiduciary may observe and promote the standard notwithstanding any rule of common law or equity which might otherwise oblige the fiduciary to act contrary to the standard or to require or influence any other person to do so.

(3) In this section—

“beneficiaries” means persons for whose benefit investments are being, will be or may be applied, whatever the particular form of ownership under which investments are held for the time being.

“benefit” includes—

(a) financial benefit provided out of investments; and

(b) any benefit which the fiduciary considers can be conferred on beneficiaries without any material prejudice to long-term return on investments.

“fiduciary” means a person or institution to which this section applies.

“investment activities” means any actions taken in the performance of any investment functions.

“investment functions” includes (amongst other matters) such of the following as pertain to the particular description of fiduciary—

(a) the selection, retention and realisation of investments,

(b) the exercise of rights, including voting rights, attaching to investments,

(c) engagement with the managers of investee companies and other investee entities, including in relation to corporate governance and corporate actions,

(d) the selection, appointment and monitoring of investment managers and other agents to whom the fiduciary delegates any investment functions,

(e) the selection and ongoing review of any investment funds which are operated by institutions acting as principals and in which the fiduciary invests,

(f) the selection, appointment and monitoring of investment consultants and of other advisers in relation to the performance of any investment functions,

(g) advising or assisting another fiduciary in relation to the performance of any investment functions,

(h) taking such steps as the fiduciary considers reasonable to ascertain the views of beneficiaries in relation to the fiduciary’s investment activities; and

(i) collective action with other market participants to further any common interests.

“investments” means the investments in relation to which any investment functions are performed and, where the context admits, includes assets of any kind representing such investments.

“standard of conduct” includes (without limitation) a standard which a fiduciary considers to be in accordance with—

(a) widely accepted norms of behaviour relating to environmental, social or governance issues, including any such norms set out in international conventions, voluntary codes of practice or otherwise, or

(b) the views or values of beneficiaries.”

 

Insert the following new Clause—

“Persons or institutions to which section (Fiduciaries: performance of investment functions) applies

(1) The persons or institutions to which section 1 applies are—

(a) the trustees of a trust scheme as defined in section 124(1) of the Pensions Act 1995;

(b) any person or institution to whom the trustees of a trust scheme have delegated any of their investment functions as defined in section 1(3), in relation to the performance of such functions;

(c) any person or institution whom the trustees of any trust scheme have appointed to advise or assist them in the performance of their investment functions, in relation to the giving of such advice or assistance;

(d) undertakings authorised under the Financial Services and Markets Act 2000 to carry on long-term insurance business, that is, the activity of effecting or carrying out contracts of long-term insurance within the meaning of the Financial Services and Markets (Regulated Activities) Order 2001 (S.I. 2001/544), in relation to the effecting or carrying out of any contact falling within paragraph VII (Pension fund management) of Part II of Schedule 1 to that order; and

(e) any person managing the investments of a personal pension scheme as defined in section 1(1) of the Pensions Schemes Act 1993, in relation to such management.

(2) The Secretary of State may by regulation—

(a) provide that section 1 applies to further descriptions of person or institution either generally or in prescribed circumstances;

(b) provide that where, by virtue of subsection (1) of this section, section 1 applies to any description of person or institution in prescribed circumstances only, it shall apply in further prescribed circumstances or generally;

(c) provide that where, by virtue of regulations made under paragraph (a) or (b), section 1 applies to any description of person or institution either generally or in prescribed circumstances, it shall no longer so apply but no such provision shall restrict the scope of subsection (1).”

Prepared 10th January 2013