Financial Services (Banking Reform) Bill

Amendments
to be moved
On Third Reading

[Amendments marked * are new or have been altered]

Clause 8

LORD DEIGHTON

 

Page 24, line 23, leave out “4” and insert “2”

After Clause 8

LORD DEIGHTON

 

Insert the following new Clause—

“PRA review of proprietary trading

(1)   The PRA must carry out a review of proprietary trading engaged in
(whether or not as a regulated activity) by relevant authorised persons, for
the purpose of considering whether further restrictions on any kind of
proprietary trading ought to be imposed.

(2)   The review must begin before the end of the 12 months beginning with the
first day on which section 142G of FSMA 2000 is fully in force.

(3)   On completion of the review, the PRA must make a written report to the
Treasury on—

(a)   the extent to which relevant authorised persons engage in
proprietary trading;

(b)   whether proprietary trading engaged in by relevant authorised
persons gives rise to any risks to their safety and soundness;

(c)   whether any kinds of proprietary trading are particularly likely to
give rise to such risks;

(d)   anything done by the PRA to minimise risks to the safety and
soundness of relevant authorised persons arising from proprietary
trading engaged in by them;

(e)   any difficulties encountered by the PRA in seeking to minimise
such risks.

(4)   The report must include an assessment by the PRA of each of the
following—

(a)   whether the PRA’s powers under FSMA 2000 are, and might be
expected to continue to be, sufficient to enable it to advance its
objectives in relation to relevant authorised persons who engage in
proprietary trading;

(b)   the effectiveness of restrictions imposed in countries or territories
outside the United Kingdom on proprietary trading by banks (so
far as experience in those countries or territories appears to the PRA
to be of relevance to the United Kingdom).

(5)   The report must be made within 9 months of the beginning of the review.

(6)   The Treasury must lay a copy of the report before Parliament.

(7)   The PRA must publish the report in such manner as it thinks fit.

(8)   The functions of the PRA under this section are to be taken for the purposes
of FSMA 2000 to be functions under that Act.

(9)   This section is to be read with the interpretative provisions in section
(Reviews of proprietary trading: interpretation).”

 

Insert the following new Clause—

“Independent review of proprietary trading

(1)   The Treasury must, after receiving the report of the PRA under section
(PRA review of proprietary trading) but before the end of the initial period,
appoint one or more persons (“the review panel”) to carry out a review of
proprietary trading engaged in (whether or not as a regulated activity) by
relevant authorised persons.

(2)   The initial period is the period of 2 years beginning with the first day on
which section 142G of FSMA 2000 is fully in force.

(3)   The members of the review panel must be persons—

(a)   who appear to the Treasury to be independent of the PRA, the FCA,
the Bank of England and the Treasury, and

(b)   who do not appear to the Treasury to have any financial or other
interests that could reasonably be regarded as affecting their
suitability to serve as members of the review panel.

(4)   In appointing the members of the review panel, the Treasury must have
regard to the need to ensure that the review panel (considered as a whole)
has the necessary experience to undertake the review.

(5)   Before appointing the members of the review panel, the Treasury must
consult the chair of the Treasury Committee of the House of Commons.

(6)   The reference in subsection (5) to the Treasury Committee of the House of
Commons—

(a)   if the name of that Committee is changed, is a reference to that
Committee by its new name, and

(b)   if the functions of that Committee (or substantially corresponding
functions) become functions of a different Committee of the House
of Commons, is to be treated as a reference to the Committee by
which the functions are exercisable;

and any question arising under paragraph (a) or (b) is to be determined by
the Speaker of the House of Commons.

(7)   If the review panel consists of two or more members, the Treasury must
appoint one of them to be the chair of the panel.

(8)   The review panel must, within a reasonable time after the end of the initial
period, make a written report to the Treasury—

(a)   stating whether the panel agrees with the conclusions reached by
the PRA in its report under section (PRA review of proprietary
trading
),

(b)   stating whether the panel recommends any further restrictions on
any kind of proprietary trading in relation to relevant authorised
persons, and

(c)   making such other recommendations as the panel thinks fit.

(9)   The Treasury must—

(a)   lay a copy of the report before Parliament, and

(b)   publish the report in such manner as they think fit.

(10)   Any expenses reasonably incurred in the conduct of the review are to be
paid by the Treasury out of money provided by Parliament.

(11)   This section is to be read with the interpretative provisions in section
(Reviews of proprietary trading: interpretation).”

 

Insert the following new Clause—

“Reviews of proprietary trading: interpretation

(1)   This section has effect for the interpretation of sections (PRA review of
proprietary trading
) and (Independent review of proprietary trading).

(2)   A person engages in “proprietary trading” where the person trades in
commodities or financial instruments as principal.

(3)   In subsection (2)—

(a)   “commodity” includes any produce of agriculture, forestry or
fisheries, or any mineral, either in its natural state or having
undergone only such processes as are necessary or customary to
prepare the produce or mineral for the market;

(b)   “financial instrument” includes anything specified in Section C of
Annex I to Directive 2004/39/EC of the European Parliament and
of the Council of 21 April 2004 on markets in financial instruments.

(4)   “Relevant authorised person” means a PRA-authorised person which—

(a)   is a UK institution,

(b)   meets condition A or B, and

(c)   is not an insurer.

(5)   Condition A is that the UK institution has permission under Part 4A of
FSMA 2000 to carry on the regulated activity of accepting deposits.

(6)   Condition B is that—

(a)   the institution is for the purposes of FSMA 2000 an investment firm
(see section 424A of that Act),

(b)   it has permission under Part 4A to carry on the regulated activity of
dealing in investments as principal, and

(c)   when carried on by it, that activity is a PRA-regulated activity.

(7)   In subsections (4) to (6)—

(a)   “UK institution” means an institution which is incorporated in, or
formed under the law of any part of, the United Kingdom;

(b)   “insurer” means an institution which is authorised under FSMA
2000 to carry on the regulated activity of effecting or carrying out
contracts of insurance as principal;

(c)   “PRA-authorised person” and “PRA-regulated activity” have the
same meaning as in FSMA 2000.

(8)   Subsections (5), (6)(b) and (7)(b) are to be read in accordance with section
22 of FSMA 2000, taken with Schedule 2 to that Act and any order under
that section.”

Clause 9

LORD DEIGHTON

 

Page 25, line 18, at end insert “or (Independent review of proprietary trading)”

Clause 14

LORD DEIGHTON

 

Page 27, line 37, leave out from “particular” to “any” in line 38 and insert—

“(a)   enable the Bank of England, for the purpose of enabling it to
exercise in relation to the business of a building society any of the
powers exercisable as a result of the amendments made by this
Part—

(i)   to convert the building society into a company, or

(ii)   to transfer the business of the building society to a company
which immediately before the transfer is owned by the Bank
or by a person of a description specified in the order;

(b)   enable the Bank of England, in connection with the exercise of a
power conferred by virtue of paragraph (a), to cancel membership
rights or shares in the building society;

(c)   provide for any power exercisable as a result of the amendments
made by this Part to be exercisable in relation to the company—

(i)   into which the building society is converted, or

(ii)   to which the business of the building society is transferred;

(d)   enable the Bank of England, in a case where it has transferred the
business of a building society by virtue of paragraph (a)(ii), to
dissolve the building society at any time after the transfer;

(e)   confer functions on the Treasury, the Bank of England, the FCA, the
PRA or a bail-in administrator;

(f)   make further amendments of Part 1 of the Banking Act 2009;

(g)   amend or modify the effect of the Building Societies Act 1986 or”

 

Page 28, line 5, after first “section” insert—

““bail-in administrator” is to be read in accordance with section 12B of
the Banking Act 2009 (as inserted by paragraph 2 of Schedule 2);”

 

Page 28, line 6, at end insert—

““company” means a company as defined in section 1(1) of the
Companies Act 2006 which is a public company limited by shares.”

After Clause 18

LORD DEIGHTON

 

Insert the following new Clause—

“Vetting by relevant authorised persons of candidates for approval

After section 60 of FSMA 2000 insert—

“60A          Vetting of candidates by relevant authorised persons

(1)   Before a relevant authorised person may make an application for a
regulator’s approval under section 59, the authorised person must
be satisfied that the person in respect of whom the application is
made (“the candidate”) is a fit and proper person to perform the
function to which the application relates.

(2)   In deciding that question, the authorised person must have regard,
in particular, to whether the candidate, or any person who may
perform a function on the candidate’s behalf—

(a)   has obtained a qualification,

(b)   has undergone, or is undergoing, training,

(c)   possesses a level of competence, or

(d)   has the personal characteristics,

required by general rules made by the regulator in relation to
persons performing functions of the kind to which the application
relates.

(3)   For the meaning of “relevant authorised person”, see section 71A.””

 

Insert the following new Clause—

“Determination of applications for approval

In section 61 of FSMA 2000 (determination of applications), in subsection
(2)—

(a)   omit the “or” at the end of paragraph (b), and

(b)   after paragraph (c) insert “or

(d)   has the personal characteristics,”.”

After Clause 20

LORD DEIGHTON

 

Insert the following new Clause—

“Duty to notify regulator of grounds for withdrawal of approval

In section 63 of FSMA 2000 (withdrawal of approval), after subsection (2)
insert—

“(2A)    At least once a year each relevant authorised person must, in
relation to every person in relation to whom an approval has been
given on the application of the authorised person—

(a)   consider whether there are any grounds on which a
regulator could withdraw the approval under this section,
and

(b)   if the authorised person is of the opinion that there are such
grounds, notify the regulator of those grounds.

(For the meaning of “relevant authorised person”, see section
71A.)””

After Clause 23

LORD DEIGHTON

 

Insert the following new Clause—

“Certification of employees by relevant authorised persons

After section 63D of FSMA 2000 insert—

“Certification of employees

63E          Certification of employees by relevant authorised persons

(1)   A relevant authorised person (“A”) must take reasonable care to
ensure that no employee of A performs a specified function under
an arrangement entered into by A in relation to the carrying on by
A of a regulated activity, unless the employee has a valid certificate
issued by A under section 63F.

(2)   “Specified function”—

(a)   in relation to the carrying on of a regulated activity by a
PRA-authorised person, means a function of a description
specified in rules made by the FCA or the PRA, and

(b)   in relation to the carrying on of a regulated activity by any
other authorised person, means a function of a description
specified in rules made by the FCA.

(3)   The FCA may specify a description of function under subsection
(2)(a) or (b) only if, in relation to the carrying on of a regulated
activity by a relevant authorised person of a particular
description—

(a)   the function is not a controlled function in relation to the
carrying on of that activity by a relevant authorised person
of that description, but

(b)   the FCA is satisfied that the function is nevertheless a
significant-harm function.

(4)   The PRA may specify a description of function under subsection
(2)(a) only if, in relation to the carrying on of a regulated activity by
a relevant PRA-authorised person of a particular description—

(a)   the function is not a controlled function in relation to the
carrying on of that activity by a relevant PRA-authorised
person of that description, but

(b)   the PRA is satisfied that the function is nevertheless a
significant-harm function.

(5)   A function is a “significant-harm function”, in relation to the
carrying on of a regulated activity by an authorised person, if—

(a)   the function will require the person performing it to be
involved in one or more aspects of the authorised person’s
affairs, so far as relating to the activity, and

(b)   those aspects involve, or might involve, a risk of significant
harm to the authorised person or any of its customers.

(6)   Each regulator must—

(a)   keep under review the exercise of its power under
subsection (2) to specify any significant-harm function as a
specified function, and

(b)   exercise that power in a way that it considers will minimise
the risk of employees of relevant authorised persons
performing significant-harm functions which they are not
fit and proper persons to perform.

(7)   Subsection (1) does not apply to an arrangement which allows an
employee to perform a function if the question of whether the
employee is a fit and proper person to perform the function is
reserved under any of the single market directives or the emission
allowance auctioning regulation to an authority in a country or
territory outside the United Kingdom.

(8)   In this section—

“controlled function” has the meaning given by section 59(3);

“customer”, in relation to an authorised person, means a
person who is using, or who is or may be contemplating
using, any of the services provided by the authorised
person;

“relevant PRA-authorised person” means a PRA-authorised
person that is a relevant authorised person.

(9)   In this section any reference to an employee of a person (“A”)
includes a reference to a person who—

(a)   personally provides, or is under an obligation personally to
provide, services to A under an arrangement made between
A and the person providing the services or another person,
and

(b)   is subject to (or to the right of) supervision, direction or
control by A as to the manner in which those services are
provided.

(10)   For the meaning of “relevant authorised person”, see section 71A.

63F          Issuing of certificates

(1)   A relevant authorised person may issue a certificate to a person
under this section only if the authorised person is satisfied that the
person is a fit and proper person to perform the function to which
the certificate relates.

(2)   In deciding whether the person is a fit and proper person to
perform the function, the relevant authorised person must have
regard, in particular, to whether the person—

(a)   has obtained a qualification,

(b)   has undergone, or is undergoing, training,

(c)   possesses a level of competence, or

(d)   has the personal characteristics,

required by general rules made by the appropriate regulator in
relation to employees performing functions of that kind.

(3)   In subsection (2) “the appropriate regulator” means—

(a)   in relation to employees of PRA-authorised persons, the
FCA or the PRA, and

(b)   in relation to employees of any other authorised person, the
FCA.

(4)   A certificate issued by a relevant authorised person to a person
under this section must—

(a)   state that the authorised person is satisfied that the person
is a fit and proper person to perform the function to which
the certificate relates, and

(b)   set out the aspects of the affairs of the authorised person in
which the person will be involved in performing the
function.

(5)   A certificate issued under this section is valid for a period of 12
months beginning with the day on which it is issued.

(6)   If, after having considered whether a person is a fit and proper
person to perform a specified function, a relevant authorised
person decides not to issue a certificate to the person under this
section, the authorised person must give the person a notice in
writing stating—

(a)   what steps (if any) the authorised person proposes to take in
relation to the person as a result of the decision, and

(b)   the reasons for proposing to take those steps.

(7)   A relevant authorised person must maintain a record of every
employee who has a valid certificate issued by it under this section.

(8)   Expressions used in this section and in section 63E have the same
meaning in this section as they have in that section.””

Clause 24

LORD DEIGHTON

 

Page 37, line 45, at end insert—

“64B          Rules of conduct: responsibilities of relevant authorised persons

(1)   This section applies where a regulator makes rules under section
64A (“conduct rules”).

(2)   Every relevant authorised person must—

(a)   notify all relevant persons of the conduct rules that apply in
relation to them, and

(b)   take all reasonable steps to secure that those persons
understand how those rules apply in relation to them.

(3)   The steps which a relevant authorised person must take to comply
with subsection (2)(b) include, in particular, the provision of
suitable training.

(4)   In this section “relevant person”, in relation to an authorised
person, means—

(a)   any person in relation to whom an approval is given under
section 59 on the application of the authorised person, and

(b)   any employee of the authorised person.

(5)   If a relevant authorised person knows or suspects that a relevant
person has failed to comply with any conduct rules, the authorised
person must notify the regulator of that fact.

(6)   In this section “employee”, in relation to an authorised person, has
the same meaning as in section 64A.

(7)   For the meaning of “relevant authorised person”, see section 71A.””

After Clause 24

LORD DEIGHTON

 

Insert the following new Clause—

“Requirement to notify regulator of disciplinary action

After section 64B of FSMA 2000 (inserted by section above) insert—

24

“64C          Requirement for relevant authorised persons to notify regulator of
disciplinary action

(1)   If—

(a)   a relevant authorised person takes disciplinary action in
relation to a relevant person, and

(b)   the reason, or one of the reasons, for taking that action is a
reason specified in rules made by the appropriate regulator
for the purposes of this section,

the relevant authorised person must notify that regulator of that
fact.

(2)   “Disciplinary action”, in relation to a person, means any of the
following—

(a)   the issuing of a formal written warning;

(b)   the suspension or dismissal of the person;

(c)   the reduction or recovery of any of the person’s
remuneration.

(3)   “The appropriate regulator” means—

(a)   in relation to relevant authorised persons that are PRA-
authorised persons, the FCA or the PRA;

(b)   in relation to any other relevant authorised persons, the
FCA.

(4)   “Relevant person” has the same meaning as in section 64B.

(5)   For the meaning of “relevant authorised person”, see section 71A.””

Clause 25

LORD DEIGHTON

 

Page 39, line 38, leave out “authorised” and insert “PRA-authorised”

 

Page 40, line 11, leave out “authorised” and insert “PRA-authorised”

Clause 26

LORD DEIGHTON

 

Page 41, line 9, at end insert—

“(3A)    The Treasury may by order provide that authorised persons falling
within any of the following descriptions are “relevant authorised
persons” for the purposes of this Part—

(a)   non-UK institutions (or non-UK institutions of a specified
description) that are credit institutions;

(b)   non-UK institutions that are investment firms of a specified
description.

“Specified” means specified in the order.

(3B)   If the Treasury propose to make an order under subsection (3A)
they must consult—

(a)   the FCA,

(b)   the PRA,

(c)   any organisations that appear to them to be representative
of interests substantially affected by the proposals, and

(d)   any other persons that they consider appropriate.”

 

Page 41, line 12, at end insert—

“( )   “non-UK institution” means an institution that is not a UK
institution;

( )   “credit institution” means any credit institution as defined
in Article 4.1(1) of Regulation (EU) No 575/2013 of the
European Parliament and of the Council;”

After Clause 123

LORD DEIGHTON

 

Insert the following new Clause—

“Duty of FCA to make rules restricting charges for high-cost short-term credit

(1)   In section 137C of FSMA 2000 (FCA general rules: cost of credit and
duration of credit agreements), after subsection (1) insert—

“(1A)    The FCA must make rules by virtue of subsection (1)(a)(ii) and (b)
in relation to one or more specified descriptions of regulated credit
agreement appearing to the FCA to involve the provision of high-
cost short-term credit, with a view to securing an appropriate
degree of protection for borrowers against excessive charges.

(1B)   Before the FCA publishes a draft of any rules to be made by virtue
of subsection (1)(a)(ii) or (b), it must consult the Treasury.”

(2)   In Schedule 1ZA to FSMA 2000, in paragraph 11 (FCA’s annual report), in
sub-paragraph (1), after paragraph (h) insert—

“(ha)   any rules that it has made as a result of section 137C during
the period to which the report relates and the kinds of
regulated credit agreement (within the meaning of that
section) to which the rules apply,”.

(3)   The FCA must ensure any rules that it is required to make as a result of the
amendment made by subsection (1) are made not later than 2 January 2015
and apply (at least) to agreements entered into on or after that date.”

 

Insert the following new Clause—

“Role of FCA Consumer Panel in relation to PRA

In section 1Q of FSMA 2000 (the Consumer Panel), after subsection (5)
insert—

“(5A)    If it appears to the Consumer Panel that any matter being
considered by it is relevant to the extent to which the general
policies and practices of the PRA are consistent with the PRA’s
general duties under sections 2B to 2H, it may communicate to the
PRA any views relating to that matter.

(5B)   The PRA may arrange to meet any of the FCA’s expenditure on the
Consumer Panel which is attributable to the Panel’s functions
under subsection (5A).””

After Clause 124

LORD DEIGHTON

 

Insert the following new Clause—

“Duty to meet auditors of certain institutions

(1)   Part 22 of FSMA 2000 (auditors and actuaries) is amended as follows.

(2)   After section 339A insert—

“339B           Duty to meet auditors of certain institutions

(1)   The FCA must make arrangements for meetings to take place at
least once a year between—

(a)   the FCA, and

(b)   the auditor of any PRA-authorised person to which section
339C applies.

(2)   The PRA must make arrangements for meetings to take place at
least once a year between—

(a)   the PRA, and

(b)   the auditor of any PRA-authorised person to which section
339C applies.

(3)   The annual report of each regulator must include the number of
meetings that have taken place during the period to which the
report relates between the regulator and auditors of PRA-
authorised persons to which section 339C applies.

(4)   In subsection (3) “the annual report” means—

(a)   in relation to the FCA, every report which it is required by
paragraph 11 of Schedule 1ZA to make to the Treasury, and

(b)   in relation to the PRA, every report which it is required by
paragraph 19 of Schedule 1ZB to make to the Treasury.

(5)   In this section “auditor” means an auditor appointed under or as a
result of a statutory provision.

339C          PRA-authorised persons to which this section applies

(1)   This section applies to a PRA-authorised person which—

(a)   is a UK institution,

(b)   meets condition A or B,

(c)   is not an insurer or a credit union, and

(d)   is, in the opinion of the PRA, important to the stability of the
UK financial system.

(2)   Condition A is that the person has permission under Part 4A to
carry on the regulated activity of accepting deposits.

(3)   Condition B is that—

(a)   the person is an investment firm that has permission under
Part 4A to carry on the regulated activity of dealing in
investments as principal, and

(b)   when carried on by the person, that activity is a PRA-
regulated activity.

(4)   In this section—

(a)   “UK institution” means an institution which is incorporated
in, or formed under the law of any part of, the United
Kingdom;

(b)   “insurer” means an institution which is authorised under
this Act to carry on the regulated activity of effecting or
carrying out contracts of insurance as principal;

(c)   “credit union” means a credit union as defined by section 31
of the Credit Unions Act 1979 or a credit union as defined by
Article 2(2) of the Credit Unions (Northern Ireland) Order
1985.

(5)   Subsections (2), (3) and (4)(b) are to be read in accordance with
Schedule 2, taken together with any order under section 22.”

(3)   The italic cross-heading before section 339A becomes “General duties of
regulator
”.”

Clause 126

LORD DEIGHTON

 

Page 99, line 5, after “procedure)” insert “—

(a)   after “55C,” insert “71A(3A),”, and

(b)   ”.

After Clause 129

LORD DEIGHTON

BARONESS HAYTER OF KENTISH TOWN

 

Insert the following new Clause—

“Recovery of expenditure incurred by Office for Legal Complaints

(1)   The Schedule to the Compensation Act 2006 (claims management
regulations) is amended as set out in subsections (2) and (3).

(2)   The provision in paragraph 7 becomes sub-paragraph (1) of that
paragraph.

(3)   In paragraph 7, after sub-paragraph (1) insert—

“(2)   The fees that may be charged by the Regulator by virtue of sub-
paragraph (1) include fees in respect of costs incurred by the
Regulator for the purposes of meeting any leviable OLC
expenditure.
“Leviable OLC expenditure” has the meaning given by section
173(7) of the Legal Services Act 2007.”

(4)   The Legal Services Act 2007 is amended as set out in subsections (5) and (6).

(5)   After section 174 insert—

“OLC expenditure relating to claims management services

174A          OLC expenditure relating to claims management services

(1)   This section has effect at any time when no person is designated
under section 5(1) of the Compensation Act 2006 (the Regulator in
relation to claims management services).

(2)   In determining the leviable OLC expenditure for the purposes of
section 173, any expenditure incurred, or income received, by the
OLC in connection with the exercise of its functions in relation to
claims management services is to be disregarded.

(3)   The Lord Chancellor may by regulations charge periodic fees for
authorised persons for the purposes of meeting any costs incurred
by the Lord Chancellor in respect of relevant OLC expenditure.

(4)   “Relevant OLC expenditure” means the difference between—

(a)   any expenditure of the OLC incurred in connection with the
exercise of its functions in relation to claims management
services, and

(b)   the aggregate of the amounts which the OLC pays into the
Consolidated Fund under section 175(1)(g), (h) or (n), so far
as relating to the exercise of its functions in relation to such
services.

(5)   Regulations made under subsection (3) may, in particular—

(a)   permit the charging of different fees for different cases or
circumstances (which may, in particular, be defined wholly
or partly by reference to turnover or other criteria relating to
an authorised person’s business);

(b)   enable the person exercising functions of the Regulator
under section 5(9) of the Compensation Act 2006 to collect
fees on behalf of the Lord Chancellor;

(c)   specify the consequences of failure to pay fees (which may
include anything which could be specified in regulations
under section 9 of that Act as a consequence of a failure to
pay fees charged under those regulations).

(6)   In this section “authorised person” and “claims management
services” have the same meaning as in Part 2 of the Compensation
Act 2006 (see section 4 of that Act).”

(6)   In section 206 (Parliamentary control of orders and regulations), in
subsection (4), after paragraph (o) insert—

“(oa)   section 174A(3) (power to charge fees on persons providing
claims management services);”.”

Clause 131

LORD DEIGHTON

 

Page 102, line 11, leave out “or the Secretary of State” and insert “, the Secretary of
State or the Lord Chancellor”

 

Page 102, line 15, leave out “or Secretary of State” and insert “, the Secretary of State
or the Lord Chancellor”

 

Page 102, line 18, leave out “Treasury or Secretary of State” and insert “person
making the order or regulations”

Clause 134

LORD DEIGHTON

 

Page 103, line 19, leave out “or Secretary of State” and insert “, the Secretary of State
or the Lord Chancellor”

 

Page 103, line 21, leave out “Treasury or Secretary of State” and insert “person
making the order”

Clause 135

LORD DEIGHTON

 

Page 103, line 31, leave out “or Secretary of State” and insert “, the Secretary of State
or the Lord Chancellor”

 

Page 103, line 32, leave out “Treasury or Secretary of State” and insert “person
making the order”

Clause 136

LORD DEIGHTON

 

Page 103, line 41, leave out from “Ireland” to end of line 2 on page 104 and insert—

“This is subject to subsection (2).

(2)   The amendments made by the following sections have the same extent as
the enactments amended—

(a)   section 10 (preferential debts: Great Britain),

(b)   section 129 (power to impose penalties on persons providing claims
management services), and

(c)   section (Recovery of expenditure incurred by Office for Legal Complaints)
(recovery of expenditure incurred by Office for Legal Complaints).”

Clause 137

LORD DEIGHTON

 

Page 104, line 5, at beginning insert “The following provisions—

section (Duty of FCA to make rules restricting charges for high-cost short-
term credit
), and”

 

Page 104, line 8, leave out “Section 129 comes” and insert “Sections 129 and
(Recovery of expenditure incurred by Office for Legal Complaints)(1) to (3) come”

 

Page 104, line 9, at end insert—

“( )   Section (Recovery of expenditure incurred by Office for Legal Complaints)(4) to
(6) comes into force on such day as the Lord Chancellor may by order
appoint.”

Schedule 2

LORD DEIGHTON

 

Page 121, line 25, leave out from first “instrument” to “may” in line 26

 

Page 125, line 39, after “41A(2)” insert “, or an associated supplemental property
transfer instrument,”

 

Page 125, line 41, at end insert—

“( )   The reference in subsection (1) to an “associated” supplemental property
transfer instrument is to a supplemental property transfer instrument in
relation to which the original instrument (as defined in section 42(1)) is
a property transfer instrument under section 12(2) or 41A(2).”

 

Page 125, line 42, after “12(2),” insert “or a supplemental property transfer
instrument in relation to which the original instrument is a property transfer
instrument under section 12(2),”

 

Page 126, line 42, at end insert—

“( )   In section 52 (transfer to bridge bank), in subsection (3)(b), for “specified
classes of creditor,” substitute “persons of a specified description,”.”

 

Page 127, line 4, at end insert “or”

 

Page 127, line 5, leave out from “41A(2)” to end of line 6

 

Page 127, line 14, at end insert—

“( )   before paragraph (za) insert—

“(zza)   the Bank of England makes a supplemental share
transfer instrument under section 26,”;

( )   after paragraph (za) insert—

“(zb)   the Treasury makes a supplemental share transfer
order under section 27,”;

( )   after paragraph (d) insert—

“(dza)   the Bank of England makes a supplemental
property transfer instrument under section 42,”;”

 

Page 127, leave out lines 18 and 19

 

Page 127, line 21, at end insert—

““( )   the Bank of England makes a supplemental resolution
instrument under section 48U,”

 

Page 127, line 23, at end insert “or”

 

Page 127, line 25, leave out from “(3)” to end of line 27

 

Page 127, line 27, at the end insert—

“( )   in the heading, after “transfers” insert “etc”.”

 

Page 128, line 4, after “require” insert “a resolution fund order,”

 

Page 128, line 13, at end insert—

“( )   to depend in part upon the amounts which are or may be payable
under a resolution fund order;”

 

Page 134, line 32, leave out “that provides for a transfer of securities”

 

Page 134, line 33, leave out from “instrument” to end of line 35 and insert “; and in
relation to a resolution instrument references in this section to a “transfer” are to a
transfer of securities (whether made by that or another resolution instrument) and
“transferor” and “transferee” are to be read accordingly.”

 

Page 134, line 36, leave out paragraph 16

In the Title

LORD DEIGHTON

 

Line 7, leave out “for penalties to be imposed on” and insert “in relation to”

Prepared 5th December 2013