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House of Lords

Session 2013 - 14 Internet Publications Other Bills before Parliament

Financial Services (Banking Reform) Bill

Financial Services (Banking Reform) Bill
[AS AMENDED IN COMMITTEE]
Contents
Part 1
Ring-fencing
1    Objectives of Prudential Regulation Authority
2    Modification of objectives of Financial Conduct Authority
3    Amendment of PRA power of direction
4    Ring-fencing of certain activities
5    Directors of ring-fenced bodies to be approved persons
6    PRA annual report
7    Ring-fencing transfer schemes
8    Building societies: power to make provision about ring-fencing
Part 2
Depositor preference and the Financial Services Compensation Scheme
Depositor preference
9    Preferential debts: Great Britain
Financial Services Compensation Scheme
10    Discharge of functions by the scheme manager
11    Power to require information from scheme manager
12    Scheme manager: appointment of accounting officer
Part 3
Bail-in stabilisation option
13    Bail-in stabilisation option
HL Bill 54                                                                                               55/3
Financial Services (Banking Reform) Bill ii
Part 4
Conduct of persons working in financial services sector
Amendments of FSMA 2000
14    Functions for which approval is required
15    Senior management functions
16    Statements of responsibilities
17    Power to give approval subject to conditions or for limited period
18    Changes in responsibilities of senior managers
19    Variation of approval
20    Statement of policy
21    Extension of limitation periods for imposing sanctions
22    Rules of conduct
23    Definition of “misconduct”
24    Meaning of “bank”
25    Recording information about senior managers
26    Consequential amendments relating to Part 4
Offence
27    Offence relating to decision that results in bank failure
28    Section 27: interpretation
29    Institution of proceedings
Part 5
Regulation of payment systems
Overview
30    Overview
The Payment Systems Regulator
31    The Payment Systems Regulator
“Payment system” etc
32    Meaning of “payment system”
33    Participants in payment systems etc
Designation as a regulated payment system
34    Designation orders
35    Designation criteria
36    Procedure
37    Amendment of designation order
38    Revocation of designation orders
General duties of Regulator
39    Regulator’s general duties in relation to payment systems
Financial Services (Banking Reform) Bill iii
40    The competition objective
41    The innovation objective
42    The service-user objective
43    Regulatory principles
Regulatory and competition functions
44    Directions
45    System rules
46    Power to require granting of access to payment systems
47    Variation of agreements relating to payment systems
48    Power to require disposal of interest in payment system
49    The Regulator’s functions under Part 4 of the Enterprise Act 2002
50    Restrictions on exercise of functions under Part 4 of the Enterprise Act 2002
51    The Regulator’s functions under the Competition Act 1998
52    Duty to consider exercise of powers under Competition Act 1998
53    Provision of information and assistance to a CMA group
54    Function of keeping markets under review
55    Exclusion of general duties
56    Concurrent competition powers: supplementary provision
57    Amendments relating to Regulator’s competition powers
Complaints
58    Complaints by representative bodies
59    Response by Regulator
60    Complaints: guidance
Enforcement and appeals
61    Meaning of “compliance failure”
62    Publication of compliance failures etc
63    Penalties
64    Warning notices
65    Injunctions
66    Appeals: general
67    Appeals to Competition Appeal Tribunal
68    Appeals in relation to penalties
69    Appeals to Competition and Markets Authority
70    Enforcement of requirement to dispose of interest in payment system
Information and investigation powers
71    Power to obtain information or documents
72    Reports by skilled persons
73    Appointment of persons to conduct investigations
74    Investigations: general
75    Powers of persons appointed under section 73
76    Information and documents: supplemental provisions
77    Admissibility of statements made to investigators
78    Entry of premises under warrant
79    Retention of documents taken under section 78
80    Enforcement of information and investigation powers
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Guidance
81    Guidance
Reports
82    Reports
Relationship with other regulators
83    Duty of regulators to ensure co-ordinated exercise of functions
84    Memorandum of understanding
85    Power of Bank to require Regulator to refrain from specified action
86    Power of FCA to require Regulator to refrain from specified action
87    Power of PRA to require Regulator to refrain from specified action
Consultation, accountability and oversight
88    Regulator’s general duty to consult
89    Consultation in relation to generally applicable requirements
90    Independent inquiries
91    Investigations into regulatory failure
92    Competition scrutiny
Miscellaneous and supplemental
93    Relationship with Part 8 of the Payment Services Regulations 2009
94    Exemption from liability in damages for FCA and PRA
95    Interpretation of Part
Part 6
Special administration for operators of certain infrastructure systems
Introductory
96    Financial market infrastructure administration
97    Interpretation: infrastructure companies
98    Interpretation: other expressions
FMI administration orders
99    FMI administration orders
100    Objective of FMI administration
101    Application for FMI administration order
102    Powers of court
103    FMI administrators
104    Continuity of supply
105    Power to direct FMI administrator
106    Conduct of administration, transfer schemes etc.
Restrictions on other insolvency procedures
107    Restriction on winding-up orders and voluntary winding up
108    Restriction on making of ordinary administration orders
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109    Restriction on enforcement of security
Financial support for companies in FMI administration
110    Loans
111    Indemnities
Interpretation
112    Interpretation of Part
Application of Part to Northern Ireland
113    Northern Ireland
Part 7
Miscellaneous
Competition
114    Functions of FCA under competition legislation
115    Competition as a secondary objective of the PRA
Parent undertakings
116    Power of FCA and PRA to make rules applying to parent undertakings
Fees to meet Treasury expenditure
117    Fees to meet Treasury expenditure relating to international organisations
Parliamentary control of statutory instruments under FSMA 2000
118    Amendments of section 429 of FSMA 2000
Bank of England
119    Accounts of Bank of England and its wholly-owned subsidiaries
Building societies
120    Building societies
Minor amendments
121    Minor amendments
Part 8
Final provisions
122    Orders and regulations
123    Interpretation
Financial Services (Banking Reform) Bill vi
124    Power to make further consequential amendments
125    Transitional provisions and savings
126    Extent
127    Commencement and short title
Schedule 1   —    Ring-fencing transfer schemes
Schedule 2   —    Bail-in stabilisation option
Part 1   —
Amendments of Banking Act 2009
Part 2   —
Modification of Investment Bank Special Administration
Regulations 2011
Schedule 3   —    Consequential amendments relating to Part 4
Schedule 4   —    The Payment Systems Regulator
Schedule 5   —    Procedure for appeals to the CMA
Schedule 6   —    Conduct of FMI administration
Schedule 7   —    Financial market infrastructure transfer schemes
Schedule 8   —    Functions of FCA under competition legislation
Part 1   —
Amendments of Financial Services and Markets Act 2000
Part 2   —
Amendments of other legislation
Schedule 9   —    Building societies
Schedule 10   —    Minor amendments