Financial Services (Banking Reform) Bill

Amendments
to be moved
on report

Clause 4

LORD EATWELL

LORD TUNNICLIFFE

 

Page 17, line 15, at end insert—

“Full separation

142VA        General requirement of separation

(1)   Where the members of any group include one or more ring-fenced
bodies and one or more other bodies, the members of the group
must, before the end of the period of five years beginning with the
relevant commencement date, take steps to secure that there are no
members of the group that are ring-fenced bodies.

(2)   If in the case of any group steps to secure that there are no members
of the group that are ring-fenced bodies are not taken within the
period specified in subsection (1)—

(a)   at the end of that period the Part 4A permission of each
member of the group that is a ring-fenced body shall be
treated as having been cancelled to the extent that it relates
to a core activity, and

(b)   after the end of that period the appropriate regulator must
refuse to give any member of the group a Part 4A
permission to carry on a core activity.

(3)   At the end of the period specified in subsection (1)—

(a)   section 142H, subsections (1)(b) and (4) to (7), and, in
subsection (8), the definition of “specified”, and

(b)   sections 142K to 142V,

cease to have effect.

(4)   In subsection (1) “the relevant commencement date” means the day
appointed for the coming into force of section 4 of the Financial
Services (Banking Reform) Act 2013 so far as it inserts this section.”

Before Clause 14

LORD EATWELL

LORD TUNNICLIFFE

 

Insert the following new Clause—

“Professional standards

After section 65 of FSMA 2000 insert—

“65A          Professional standards

(1)   The regulator will raise standards of professionalism in financial
services by mandating a licensing regime based on training and
competence.

(2)   This licensing regime must—

(a)   apply to all approved persons exercising controlled
functions, regardless of financial sector;

(b)   specify minimum thresholds of competence including
integrity, professional qualifications, continuous
professional development and adherence to a recognised
code of conduct and revised Banking Standards Rules;

(c)   make provisions in connection with—

(i)   the granting of a licence;

(ii)   the refusal of a licence;

(iii)   the withdrawal of a licence; and

(iv)   the revalidation of a licensed person of a prescribed
description whenever the appropriate regulator sees
fit, either as a condition of the person continuing to
hold a licence or of the person’s licence being
restored;

(d)   be evidenced by individuals holding an annual validation
of competence;

(e)   include specific provision for a Senior Persons Regime in
relation to activities involving the exercise of a significant
influence over a controlled function under section 59 of the
Act.

(3)   In section 59, for “authorised” substitute “licensed” throughout the
section.””

Clause 15

LORD MACKAY OF DRUMADOON

 

Page 28, line 11, at end insert “but excludes the provision of legal advice in taking
decisions or participating in the taking of decisions”

Clause 22

LORD MACKAY OF DRUMADOON

 

Page 35, line 43, at end insert—

“(7)   The rules of conduct made by the FCA or the PRA shall not require
any person under section 64A who is a professional legal adviser to:

(a)   to answer any privileged question,

(b)   to provide any privileged information, or

(c)   to produce any privileged document.

(8)   A “privileged question” is a question which the person would be
entitled to refuse to answer on grounds of legal professional
privilege in proceedings in the High Court.

(9)   “Privileged information” is information which the person would be
entitled to refuse to provide on grounds of legal professional
privilege in such proceedings.

(10)   A “privileged document” is a document which the person would be
entitled to refuse to produce on grounds of legal professional
privilege in such proceedings.

(11)   A person may not be required under section 64A to produce any
excluded material (as defined by section 11 of the Police and
Criminal Evidence Act 1984 (c. 60)).

(12)   In the application of this section to Scotland—

(a)   subsections (7) to (11) do not have effect, but

(b)   a person under section 64A who is a professional legal
adviser, may not be required under the rules of conduct
made by the FCA or PRA to answer any question, provide
any information or produce any document which he would
be entitled, on grounds of legal privilege, to refuse to
answer or (as the case may be) provide or produce.

(13)   In this section, “legal professional privilege” means protection in
legal proceedings from disclosure, by virtue of any rule of law
relating to the confidentiality of communications; and “items
subject to legal professional privilege” are—

(a)   communications between a person who is a professional
legal adviser, or

(b)   communications made in connection with or in
contemplation of legal proceedings and for the purposes of
those proceedings.

(14)   In this section, “professional legal adviser” means a barrister,
advocate or solicitor.”

Before Clause 114

LORD EATWELL

LORD TUNNICLIFFE

 

Insert the following new Clause—

“Duty of care

At all times when carrying out core activities, a ring-fenced body shall—

(a)   be subject to a fiduciary duty towards its customers in the operation
of core services; and

(b)   be subject to a duty of care towards its customers across the
financial services sector.”

After Clause 116

LORD EATWELL

LORD TUNNICLIFFE

 

Insert the following new Clause—

“Arrangements for consulting practitioners and consumers

After section 2L of FSMA 2000 (the PRA’s general duty to consult) insert—

“2LA PRA duty to consider representations from the FCA Consumer
Panel

(1)   The PRA must consider and respond to representations made by
the Consumer Panel established by the FCA under section 1Q of the
Financial Services Act 2012.

(2)   The PRA must from time to time publish in such manner as it thinks
fit responses to the representations.””

Clause 124

LORD BRENNAN

 

Page 95, line 13, leave out paragraph (b)

Clause 127

LORD EATWELL

LORD TUNNICLIFFE

 

Page 95, line 36, at end insert—

“( )   No order may be made appointing a day for the coming into force of
section 4 so far as it inserts section 142VA or FSMA 2000 unless—

(a)   the day is later than that on which there is published the report of
the review under section 142J of that Act containing a
recommendation that section 4 of that Act should be brought into
force to that extent, and

(b)   a draft of the order has been laid before, and approved by a
resolution of, each House of Parliament.”

Prepared 22nd November 2013