14067.1-4

House of Lords

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Financial Services (Banking Reform) Bill
Commons Disagreement And Reason

Financial Services (Banking Reform) Bill
COMMONS DISAGREEMENT AND REASON
[The page and line references are to HL Bill 38, the bill as first printed for the Lords.]

After Clause 12

LORDS AMENDMENT NO. 41
41
Insert the following new Clause—
“Part 4
Conduct of persons working in financial services sector
Amendments of FSMA 2000
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;

HL Bill 67
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After Clause 12—continued

(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.””

COMMONS DISAGREEMENT AND REASON

The Commons disagree to Lords Amendment No. 41 for the following reason—
41A
Because Lords Amendments Nos. 42 to 57 make more appropriate provision about the

standards of those working in the financial services sector, and Lords Amendment No. 41

is incompatible with the provision made by those Lords Amendments.

COMMONS DISAGREEMENT AND REASON

11th December 2013

PUBLISHED BY AUTHORITY OF THE HOUSE OF LORDS
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HL Bill 67                                       (35561)
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