Financial Services Bill

MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
ON THIRD READING

[Amendments marked * are new or have been altered]

Clause 3

LORD SASSOON

1

Page 2, line 40, after first “The” insert “court of directors of the”

2

Page 3, line 11, leave out “9B(1)(e)” and insert “9B(1)(d) or (e)”

3

Page 3, line 16, leave out “13(2)(c)” and insert “13(2)(b) or (c)”

4

Page 4, line 23, after first “the” insert “court of directors of the”

5

Page 4, line 24, leave out “Bank” and insert “court of directors”

6

Page 4, line 29, leave out “Bank” and insert “court of directors”

7

Page 4, line 30, leave out “it” and insert “the Bank”

Clause 4

LORD SASSOON

8

Page 6, line 26, leave out “2 members” and insert “one member”

9

Page 6, leave out lines 30 to 34 and insert—

“(2) The member appointed under subsection (1)(d) is to be a person who has executive responsibility within the Bank for the analysis of threats to financial stability.”

LORD BARNETT

LORD PESTON

10

Page 7, line 7, leave out “subject to that” and insert “with equal weight”

LORD SASSOON

11

Page 15, line 3, at end insert—

“( ) The purpose of a review is—

(a) in the case of a direction, to consider whether the direction ought to be revoked, and

(b) in the case of a recommendation, to consider whether the recommendation ought to be withdrawn.”

Clause 6

LORD SASSOON

12

Page 30, line 42, at end insert “court of directors of the”

13

Page 44, line 5, leave out “22(1A)” and insert “22(1A)(a)”

Clause 11

LORD SASSOON

14

Page 54, line 15, leave out “considers” and insert “appears to it”

15

Page 58, line 5, at end insert—

“(5A) The FCA may refuse an application under subsection (5) if it appears to it that it is desirable to do so in order to advance any of its operational objectives.”

16

Page 58, line 45, at end insert—

“(5A) The PRA may refuse an application under subsection (5) if it appears to it that it is desirable to do so in order to advance any of its objectives.”

Clause 24

LORD SASSOON

LORD MITCHELL

BARONESS HOWE OF IDLICOTE

17*

Page 88, line 38, at end insert—

“137BA FCA general rules: cost of credit and duration of credit agreements

(1) The power of the FCA to make general rules includes power to make rules prohibiting authorised persons from—

(a) entering into a regulated credit agreement that provides for—

(i) the payment by the borrower of charges of a specified description, or

(ii) the payment by the borrower over the duration of the agreement of charges that, taken with the charges paid under one or more other agreements which are treated by the rules as being connected with it, exceed, or are capable of exceeding, a specified amount;

(b) imposing charges of a specified description or exceeding a specified amount on a person who is the borrower under a regulated credit agreement;

(c) entering into a regulated credit agreement that—

(i) is capable of remaining in force after the end of a specified period,

(ii) when taken with one or more other regulated credit agreements which are treated by the rules as being connected with it, would be capable of remaining in force after the end of a specified period, or

(iii) is treated by the rules as being connected with a number of previous regulated credit agreements that exceeds a specified maximum;

(d) exercising the rights of the lender under a regulated credit agreement (as a person for the time being entitled to exercise them) in a way that enables the agreement to remain in force after the end of a specified period or enables the imposition on the borrower of charges within paragraph (a)(i) or (ii).

(2) “Charges” means charges payable, by way of interest or otherwise, in connection with the provision of credit under the regulated credit agreement, whether or not the agreement itself makes provision for them and whether or not the person to whom they are payable is a party to the regulated credit agreement or an authorised person.

(3) “The borrower” includes—

(a) any person providing a guarantee or indemnity under the regulated credit agreement, and

(b) a person to whom the rights and duties of the borrower under the regulated credit agreement or a person falling within paragraph (a) have passed by assignment or operation of law.

(4) In relation to an agreement entered into or obligation imposed in contravention of the rules, the rules may—

(a) provide for the agreement or obligation to be unenforceable against any person or specified person;

(b) provide for the recovery of any money or other property paid or transferred under the agreement or other obligation by any person or specified person;

(c) provide for the payment of compensation for any loss sustained by any person or specified person as a result of paying or transferring any money or other property under the agreement or obligation.

(5) The provision that may be made as a result of subsection (4) includes provision corresponding to that made by section 30 (enforceability of agreements resulting from unlawful communications).

(6) A credit agreement is a contract of the kind mentioned in paragraph 23 of Schedule 2, other than one under which the obligation of the borrower to repay is secured on land: and a credit agreement is a “regulated credit agreement” if any of the following is a regulated activity—

(a) entering into or administering the agreement;

(b) exercising or being able to exercise the rights of the lender under the agreement.

(7) In this section—

(a) “specified amount” means an amount specified in or determined in accordance with the rules;

(b) “specified period” means a period of a duration specified in or determined in accordance with the rules;

(c) “specified person” means a person of a description specified in the rules;

(d) subject to that, “specified” means specified in the rules.”

18*

Page 102, line 6, after “to” insert—

“(a) rules made by the FCA under section 137BA, or”

Clause 31

LORD SASSOON

19

Page 125, line 26, leave out “desirable” and insert “necessary”

20

Page 125, line 40, at end insert—

“(2A) The direction may not require the clearing house—

(a) to take any steps for the purpose of securing its compliance with—

(i) the recognition requirements, or

(ii) any obligation of a kind mentioned in section 296(1)(b) or (1A), or

(b) to accept a transfer of property, rights or liabilities of another clearing house.

(2B) If the direction is given in reliance on section 298(7) the Bank must, within a reasonable time of giving the direction, give the clearing house a statement of its reasons—

(a) for giving the direction, and

(b) for relying on section 298(7).”

Clause 107

LORD SASSOON

21

Page 196, line 24, leave out “22(1A)” and insert “22(1A)(a)”

Schedule 1

LORD SASSOON

22

Page 210, line 27, leave out from “stability” to end of line 28

23

Page 211, line 10, leave out “7” and insert “6”

24

Page 211, line 11, leave out “7” and insert “6”

Schedule 2

LORD SASSOON

25

Page 214, line 11, leave out sub-paragraph (10) and insert—

“( ) In paragraph 11—

(a) the existing provision becomes sub-paragraph (1),

(b) in sub-paragraph (1)(b), for “servant” substitute “employee”,

(c) in sub-paragraph (1)(c)(ii), for “servants” substitute “employees”, and

(d) after sub-paragraph (1) insert—

“(2) The duties and powers that may be delegated under this paragraph do not include duties and powers that are by any enactment expressly imposed or conferred on the court of directors.””

Schedule 3

LORD SASSOON

26

Page 228, line 2, after “by” insert “the court of directors of”

27

Page 228, line 4, after “by” insert “the court of directors of”

28

Page 228, line 6, leave out “Bank” and insert “court of directors”

29

Page 228, line 13, leave out “Bank” and insert “court of directors”

30

Page 228, line 15, leave out “Bank” and insert “court of directors”

31

Page 228, line 37, after first “The” insert “court of directors of the”

Schedule 5

LORD SASSOON

32

Page 248, line 31, at end insert—

“(b) after subsection (5) insert—

“(5A) “The appropriate regulator”—

(a) in relation to a controlled function which is of a description specified in rules made by the FCA, means the FCA, and

(b) in relation to a controlled function which is of a description specified in rules made by the PRA, means the PRA.”, and

(c) in subsection (6), after “Any” insert “other”.”

Schedule 9

LORD SASSOON

33

Page 287, line 6, at end insert “, and

(d) a decision under section 391(1)(c) to publish information about the matter to which a warning notice relates.”

34

Page 287, line 8, leave out from “from” to end of line 10 and insert ““, that the decision” to the end and insert “that—

(a) a decision falling within any of paragraphs (a) to (c) of subsection (1) is taken—

(i) by a person not directly involved in establishing the evidence on which the decision is based, or

(ii) by 2 or more persons who include a person not directly involved in establishing that evidence,

(b) a decision falling within paragraph (d) of subsection (1) is taken—

(i) by a person other than the person by whom the decision was first proposed, or

(ii) by 2 or more persons not including the person by whom the decision was first proposed, and

(c) a decision falling within paragraph (d) of subsection (1) is taken in accordance with a procedure which is, as far as possible, the same as that applicable to a decision which gives rise to an obligation to give a warning notice and which falls within paragraph (b) or (c) of subsection (1).””

Schedule 12

LORD SASSOON

35

Page 302, line 21, leave out from “for” to end of line 22 and insert ““the Authority” substitute “a regulator”,”

Schedule 13

LORD SASSOON

36

Page 309, line 41, leave out “other than PRA-authorised persons”

Schedule 18

LORD SASSOON

37

Page 345, line 10, leave out from “for” to end of line 11 and insert “the words from “competent authority” to the end substitute ““Financial Conduct Authority to exercise its functions under Part 6 of the Financial Services and Markets Act 2000.””

Prepared 5th December 2012